MARKETING MANAGEMENT

Group Members
 Nikhil Karadge (23)
 Aditya Paharia (30)
 Shubham Sherekar (41)
 Shloka Shetty (43)
 Junaid Ahmed Siddiqui (48)
 Ashrit Taduri (55)
History
 Inspired by McDonalds, Keith Karner and Matthew Burns founded
Insta-Burger King in the year 1953
 Despite early success the company ran into losses in 1954 and they
were forced to sell the company to James McLamore and David
Edgerton.
 In the next 5 years several positive changes were made such as-
introduction of company mascot, releasing company’s first TV
commercial, creation of a signature sandwich (The Whooper) and
renaming it as ‘Burger King’.
 In 1967, Burger King was sold to Pillsbury which established 274
outlets of Burger King in USA and was valued at US$18 million.
 Pillsbury introduced uniform store design and also developed new
products such as the chicken and fish sandwich.
History Continued
 Most of these changes backfired and in January 1989 Pillsbury sold
Burger King to Grand Metropolitan for US$5.7 billion. Grand
Metropolitan opened the outlets in 11 new countries.
 In 1997 a merger worth US$22 billion took place between Grand
Metropolitan and Guinness which led to creation of new company called
Diageo.
 Diageo suffered with various problems which led to reduction in the
revenue of Burger King. Due to the slip it was now tied on 2nd place
with Wendy’s in the U.S. market.
 In 2002, TPG Capital purchased Burger King from Diageo for US$1.5
billion. They made Burger King a public company in 2006 and also made
other changes such as new ad campaigns, redesigned menu and creating
a Burger King Whopper Bar.
 These changes turned the company’s fortune but as things slowed down,
TPG Capital decided to divest itself of Burger King.
3g Capital and Daniel era
 3g capital purchased BK for $4 billion in 2010
 Daniel as CFO and laying off employees
 Jets were sold, annual parties were cancelled, lavish offices to
modest office, 12000 corporate owned outlets to 50, head
count fell from 38000 to 2500 in 3 years.
 34% net income rise
 In 2014,Daniel becomes CEO, BK acquires 14000
restaurants across 85 countries.
 BK acquired tim hortons and becomes restaurants brands
international becoming 3rd largest fast food company
 3g capital 51%, Bk 27%, Tim Hortons 22% shares
Product
 Whopper Sandwich created in the year 1957 still remains as the
signature sandwich of Burger King
 In 1970’s Burger King launched its speciality sandwich line which
featured fish and chicken sandwiches. While the majority of the
products from this line were discontinued, the original chicken
sandwich and other varieties of fish sandwiches are still offered.
 Also in late 1970’s Burger King started serving breakfast which is
still a popular practice today and includes items such as English
muffin sandwich, hash browns, French toast sticks, sausage etc.
 In 1986 the company introduced Burger King Chicken Tenders
and is still popular today.
 In 1990 they introduced broiled chicken sandwich and its
modified version the TenderGrill Sandwich is on sale today.
Product
Continued

 In 1998, Burger King debuted its value meal which included

hamburgers, French fries, onion rings, soft drinks and
milkshakes. The value meal is available even today with
certain additions such as salad and crispy chicken
 In 2003, Angus Steak Burger was introduced which is now
offered as Steakhouse XT Burger.
 The company is operating internationally and make several
adaptations. For example the Australia Burger King offers the
Aussie Burger, in Saudi Arabia pork was not served and in
Asian markets the company featured dark meat chicken.
Price
 No changes in the price overtime
 Prices were traditionally high
 Special prices for promotional activities
Place - Distribution

 Early ‘90s : BK moved to consolidate its Supply chain and

distribution through the creation of Restaurant Services Inc.(RSI)
 2015 : RSI managed BK’s distribution, identifying potential new
distributors and ensuring that everything adhered to performance
standards
 Reduce logistics and distribution costs
 ‘RSI is one of the few aces we have been able to hang onto’-BK
Design-Layout
of the Stores
 Initially, BK resembled a fast-food
chain outlet
 In October of 2009, BK introduced 20/20
plan to remodel the store’s interiors costing 300k to 600k $.
 In 2013, after criticism, Schwartz came up with a new cost-
effective plan.
 By Jan 2015, 19% of the stores were remodeled and a sales
increase of about 10 to 15 percent was reported at the
remodeled locations.
Store Locations
 In 2015 : BK opened restaurants in all 50 states in the US,
with locations in almost every town in America.
 Overall in 2015, approx. 50% of BK’s restaurants operated in
the US, while the remaining 50% operated in a total of 85
countries worldwide.
Promotion
 Burger King’s first promotional efforts were television ads in
1959.
 Successful efforts came in 1970’s with slogans “It takes two hands
to handle a whooper” and “Have it your way”.
 Company reintroduced mascot “The King”.

 Burger King’s advertising strategy under Schwartz revolved

around celebrities like David Beckham, Mary Blige and Jay Leno.
 Burger King shifted away from its traditional male market and
broadened its Demographic appeal.
Emerging Trends

Health
$6 billion
Began in issues
revenue in
1930 raised in
1970
2010

$160
Faced Many fast
billion
challenges food chains
revenue in
in 2015 in 2015
2014
Emergence Of Fast Casual Chains

ADVANTAGES
COMPETITORS
OFFERED

Five Guys Fast growth

Panera Bread Healthier Food Options
Chipotle Mexican Great Customization and
Grill Flexibility
Each chain was unique
Competitors
 Founded by Richard and Maurice McDonald in 1940
 Ray Kroc joined in 1955 and helped in expansion
 Largest food chain in the world with 36000 locations in 118
countries in 2015
 Core products were hamburgers, chicken and so on
 Provided alterations as per regions
 McCafe similar to Starbucks
 New interior in 2015
 Distribution and Supply Chain Network was outsourced
 Good reviews for supply chain by “Gartner’s Supply Chain Top
25 List”
 Ronald McDonald
 Founded by Dave Thomas in 1969 in Columbus, Ohio
 Third largest fast food chain (approximately 6650 restaurants) in
2015
 Never had a signature sandwich like BK and McDonald’s
 Frosty Dessert One of the first fast food chains to offer value menu
in 1989
 Plan to redesign restaurants by end of 2015.
 Quality Supply Chain Co-op (QSCC)
 Campaigns
 Founded by Troy N. Smith in 1953 in Shawnee, Oklahoma
 Originally, Customer parks in premises and walk up to Order
 Later Redesigned to Carhops that deliver order to customers cars
 In 2015 This was still used in Sonic’s 3560 US Restaurant
 Offered: hamburgers, French fries, onion rings, corn dogs, chilli
hot dogs, sundae and banana splits, etc.
 In 2011, company rolled Sonic Beach in Florida with special
menu
 Offered products at Competitive prices
 Founded by Robert O. Peterson in 1941 in San Diego,
California
 First to use Intercom system in drive through enabling
multiple customer being served simultaneously
 In 2015 it had 2200 restaurants in 21 states
 Offered : hamburgers, salads, sandwiches, chicken pieces, egg
rolls, tacos, etc.
 New product on 3-4 month rotations- Jack’s Philly
Cheesesteak, ciabatta burger and Deli-style Panini
 Promotion not much until 1995 “Jack’s back” campaign
 Founded by Louis Kane and Ron Shaich in 1981 by name of Au
Bon Pain Co.
 In 2015 owned 1800 restaurants in US & Canada
 Offered: sandwiches, paninis, pastas, soups, croissants, bagels
and brownies
 Due to high quality, prices were higher than other chains
 Still received “Best Salad” and “Best Facilities” for restaurant
having <5000 outlets
 Launched “Food as it should be” campaign for health-conscious
products
 Founded by Jerry Murrell in Virginia in 1986
 In 2013 more than 1000 restaurants
 In 2015 opened Oversea restaurant in UK, later opening 27
in total
 Offered: Hamburgers and French fries as only side product
 They gave customers option to choose their own toppings
 Received “Number 1 Burger” from Washington Magazine
 This gained attention of celebrities, such as Barack Obama ate
at Five guys in 2009
 KFC started in 1930 in Kentucky by colonel Harland sanders
 2015 KFC became second largest restaurant chain in the world
with 18000 restaurants in 115 countries.
 Main product was fried chicken, seasoned with colonel sanders
“Original Recipe” of 11 herbs and spices.
 Changes in menu according to the need of the customers
Grilled chicken in U.K , halal chicken in muslim countries
 Chipotle was founded by Steve Ells in Denver, Colorado on 13 July
1993.
 The company grew from 16 locations in 1998 to 500 locations in 2006,
majorly because Mc Donald’s became an investor, in same year,
Mcdonald’s divested of Chipotle
 Majority of stores in US, and few in Canada, UK, France, Germany
 It features only small focused menu with items like: Burritos, bowls,
tacos, salads
 For promotion used Farm Team Loyalty program and hosted its own
festival ‘The Cultivate Food’
 In addition Chipotle uses Youtube Commercial and has created a
complimentary Iphone app
 Taco Bell was founded in 1946 by Glenn Bell in California.
 As per 2015 data, Taco Bell has approximately 6500 restaurants
operating in 18 countries. Most restaurants are operated in USA
and Canada; however a small number of outlets exist in India,
Japan and Cyprus.
 They serve competitively priced Tex-Mex foods such as tacos,
burritos, quesadillas and nachos. In addition the company offers a
value meal consisting of 11 items priced at $1.
Thank You