MC DONALDS VS. BURGER KINGLike Pepsi Co. versus Coca Cola, company of Ford Motors versus General Motors company, the battle between McDonalds and Burger King represents the most iconic business rivalries in American history. Which company’s burger is cheaper? Better tasting? More convenient? During 50’s and 60’s the golden age of car culture and fast food, the burger chain’s menu told a story of moves and counter moves in their pursuit of customer’s loyalty. McDonalds has always been the larger company, however both the firms have unquestionably influenced the other over the course of six decades plus rivalry.
Each restuarant boasts iconic products like Burger King has a whopper sandwich and McDonalds counters with the Big Mac.MC DONALDS : THE REAL KING OF BURGERSMcDonald’s is the largest fast-food restaurant chain in the United States and represents the largest restaurant company in the world, both in terms of customers served and revenue generated. Its franchises span 36,000 individual units across nearly 120 countries, employ 1.
5 million people including franchisees, and serve more than 65 million meals each year. Even the figures were slumping in 2014, McDonalds continued to be at the first place. Under the franchising visionary of Ray Kroc, McDonalds became a world known food brand as selling the rights to operate the a MCD store keeps the overhead costs down and lets local owners deal with the individual units, while food costs remain low and service remains fast for a culture increasingly on the go. Big businesses do struggle to reach cretain size, but maintaining their position is also a task. The unique philosophy of Ray Kroc was based on the simple principle of a 3- legged stool: one leg was McDonalds franchisees; the second, McDonalds suppliers; and the third, McDonalds employees. It has always been comitted to do the right thing. Everyday, all around the globe, they put people, processes and practices into place to make quality food, more responsible sourcing choices, a stronger community and a better planet. These commitments builds brand loyalty for them. McDonalds does not have a selective audience rather targets people from all age groups. The company claims that their restaurant offers meals for children, a place to relax for the adults and a quick breakfast for those in a hurry in the morning. The company employs different marketing strategies during different seasons of the year. They are constantly investigating what their customers enjoy, how their lives are changing, and what they can offer them as a result, in order to better maintain their business. McDonalds offers value-priced meals and seen a tremendous amount of success from its Happy Meals. The Happy Meal represents one area where market demand changed the company’s product, as it began offering fruit and other healthier choices for kids due to a raised awareness of nutritional needs. Though MCD does not have a specific market but from the advertisements, interior designs and additions to menus one can draw that children do hold an important part of its target audience. They also told that the introduction of spicy range of McDonald’s offerings was specifically for the young adult target group. Their continuous efforts to keep food affordable and adding more filling fare is also to target the youth. The international McFlurry’s dessert range,expanding menu, breakfast on go, are all directed at being relevant to the current market place, where youth has a predominant presence in India.McDonalds has intentionally kept its product depth and width limited. McDonalds had studied the manners of the Indian clients and totally provided various menus as compare to its menu presented in world market. The company eliminates beef, mutton and pork burger from their menu. India is just country wherein McDonalds offer vegetarian menu. As well as the cheese and sauce use are pure vegetarian.The company constantly improves its product and service in accordance to the fast changing desires and tastes of its consumers. One of the good examples is the launching of Chicken Maharaja Mac and the Chicken McNuggets.McDonald’s restaurant also has specific value pricing as well as bundling strategy like combo meal, happy meal, family meal and happy price menu in order to improve total sales of the service and product. Also these steps led to the success to McDonalds and made him a world wide recognised food brand.BURGER KING : A FAST FOOD REVIVALIn 2010, 3G Capital, a global multi-million dollar investment firm focused on long term value creation, purchased Burger King Corporation, making it a privately-held company. Burger King has emerged out to be a competitor for leading food brand like McDonalds. It is the result of it’s marketing strategies that have made it this successful. Burger King operates as a quick service restaurant business focusing on burgers as its main product.In addition, the company bundles its products as value meals and kids meals. It focuses on large scale production of limited product lines. Another addition to it is that Burger King is extremely customer friendly. Aside from restaurants, customers can use Burger King’s mobile app to access coupons for special offers and freebies. Customers can also use the company’s website to place their orders for home deliveries.Burger King relies mainly on advertising to promote its products. The company advertises online and on TV and print media. In addition, Burger King uses sales promotions in the form of coupons and other offers through its website and mobile app. The firm’s restaurant personnel also typically use personal selling to encourage customers to buy more products from the menu, such as desserts in addition to what the customer already ordered. In applying public relations, the Burger King McLamore Foundation gives scholarships and financial assistance for educational programs, thereby also effectively promoting and strengthening the Burger King brand. Burger King uses market-oriented pricing strategy as its primary approach to pricing. This pricing strategy involves setting prices based on prevailing market conditions, including supply and demand conditions as well as the pricing of competing firms. Burger King’s secondary pricing approach is the bundle pricing strategy. For example, customers can buy value meals and kids meals at bundle prices that are more affordable than buying food items separately. This component of the marketing mix shows that Burger King mainly considers market conditions to determine its prices. Burger King are using concentrated targeting, that is concentrating on serving many needs of a particular customer group. Burger King’s advertising agency advise to use the HAVE IT YOUR WAY theme and begin to experiment with various web marketing campaigns. There target market is said to be young adult males who are willing to try new things. They let the campaign to became word of mouth and spread it all over world. They position their market as serving high quality, great tasting and affordable food. Burger King promise their customers can customize ingredients of all BK sandwiches,with similar pricing of food.Both McDonalds and Burger King have different target audience to serve to, that is, one focuses on kids and families while other focuses on young adult males. Both of them provide good quality of food to its customers and try to cater all their needs.