Burger King Market Analysis

Keywords: burger ruler target market evaluation, burger king segmentation

Burger King known as Insta-Burg Ruler was set up in 1953 but then company ran into financial problems and was bought out by David Edgerton & James Mclamore. Today it is headquartered in Florida (Miami). Burger Ruler will serve Global with 12, 200 outlet stores in 73 countries.

Part 1: The merchandise and market

According to Merriam-Webster online dictionary junk food is designed for ready availableness, use, or use and with little concern given to quality or significance".

Basically fast-food is increasing momentum due to the occupied lifestyle prerelavant nowadays.

This type of food is dished up to customers in a nutshell span of their time on order made.

The product: Food like Burgers, French fries, Veggi etc.

Product type: Fast food

Type of Involvement: Regarding to worldwatch. org, India's fast-food industry is growing by 40 percent. Post liberalization 1991 Junk food industry is rolling out in India as much multinational providers have create their business. McDonald's, Domino's, Pizza Hut and Nirula's are well-liked junk food joints in India.

According to the results of the recent online survey from AC Nielson [7, 8] India being

At the seventh place, is probably the top ten marketplaces for weekly junk food consumption among the countries of Asia-Pacific region. Over 70% of Urban Households take in outside food fast food from take-away restaurant at least one time in a month or more. As per the review conducted Pizza Hut is the most accepted junk food brand in India. India is one of the most notable ten countries one of the 28 surveyed consuming fast food.


Types of Segmentation.

Geographic segmentation-Urban Locations in India.

Two main locations of India Delhi & Bangalore.

The reason to choose to Delhi is basically because this can be a cosmopolitan city & people are available to accept new ideas & lifestyle. Additionally it is becoming a major IT vacation spot of India. Here many major multi nationals like IBM, Microsoft, Yahoo, Sony etc. Many Business process outsourcing sectors is there. Delhi is the icon of old and new growing India.

Bangalore city is the nerve of commercial city. It gets the IT Park which has gained the recognition of being the "Silicon" valley. It is ranked one of the ten fastest growing city. Today Bangalore is the fifth greatest most effective growing city in Asia.

Demographic segmentation- Urban Middle class

Urban Upper Middle class

The Urban % of Middle class income group is 21. 7% from 2009-10

The Urban %Upper Middle class income group is 16. 3% from 2009-10(Predicated on data from the marketplace Information Survey of Households survey of the National Council of Applied Economic Research


Targeting-First Focus on

Initial give attention to Delhi & Bangalore customers.

Higher income teams.

Exposure to traditional western culture and open minded to variety

Middle school & Upper middle class customers.


On introduction of Burger Ruler it might be initially unveiled in the capital city of India, Delhi &Banglore. It might be a place for upscale strata consumers mainly to go to & relax. It might be positioned in different ways unlike from its competition Mc Donald's for family to come along with their children and also have fun. An individual earning Rs. 30K to 40K a month is likely to enjoy having food from Burger ruler. This group mainly targeted on 25-35 time old individuals.

Competitor Analysis-

Direct competition- Mc Donald's could be the competition for Burger King.

Indirect competitor-Fresh homemade prepared food localized restaurants

Mc Donald's business is income making in the junk food industry compared to its competition Burger King by gross margin 38% of its competitor by 33%. Mc Donald's is having a strong presence in United States and it is gaining international presence in the junk food industry. Mc Donald's has been a strong performer in 2009 2009 in conditions of market talk about. Compared to other food chains like KFC and Pizza Hut the entire performance and a liking towards Mc Donald's has been very positive and commendable. Mc Donald marketing combine: "think global, act local". However, Taylor (1991) facilitates the view that companies should use both internationalization and globalization elements to make a competitive edge: it's important to heed the maxim: "think global, act local". The organization must be sure that its framework fits in using its international environment while at exactly the same time have the internal flexibility required to implement its strategic goal (Taylor 1991). McDonalds efficient supply string in India ensures delivery on time with decrease on cost increasing profitability &maintaining highest quality expectations of products. McDonalds has separate development lines and procedures for its vegetarian and non-vegetarian offerings.

Marketing mix followed by Mc Donald's- McCarthy (1975) created the idea of 4Ps- Product, Price, Campaign and Place. In addition in case of service marketing in recent years theorists have identified 3P's given by Fifield and Gilligan (1996) variables as an integral part of the marketing mixture process, physical and folks.

Product- Concept of "think global, act local has been clearly implemented by Mc Donald's. To aid this idea there are extensive good examples like in India as Hindus do not consume meat, Muslims do not eat pork and Jains (amongst others) do not eat beef of any type. To suit the majority food interest of the Indians Mc Donald's been progressive to provide customers with Veg McNuggets & a mutton foundation Maharaja Macintosh (Big Macintosh).

Pricing-Pricing decision is a vital factor taken care and attention by McDonalds. The formulation of different prices decisions has been made in different ways predicated on different geographic locations. The right price selection needed to be made for the right market. Various factors needed to be considered & researched for the same. Some elements considered by McDonalds to look for the price for a particular market. The process, as referred to by Vignali et al/(1999)is the following:

Selecting the purchase price objective;

Determining demand;

Estimating costs;

Analyzing competitor's costs, prices and offers;

Selecting a charges method;

Selecting your final price.

The process listed above is the essential framework that allows Mc Donald's localized costing. McDonalds has highlighted costing plan in the objective assertion where it expresses that the most important element of identifying price was:

McDonalds to stay in touch with pricing of the competitors allows those to price our products appropriately, controlling quality and value.

When Mc Donald's was seeking to permeate into New Delhi India, it decided the price and set it taking a look at Nirula's, an area food string as a guide. McDonalds was produced in India to possess toll free amount for customers to put the order.

Part 2: The consumer

Influence on the tendencies of consumers for purchase of Burger King.

Food consumed by the country's citizen is a essential part of these culture. In India post liberalization in the economy there are extensive changes in the country. India being truly a democratic country all religions & beliefs are considered equivalent without discrimination.

India known because of its rich cultural heritage & strong opinion has observed some new advancements. When compared with past more ratio of Indian women are employed today. A growth in the women's financial position in India has occurred making them self-employed and ensuring more of disposable income to spent on leisure and recreation, eating out and health. Recent extension of service industry call centers, travel companies airlines and hotels have led to more of employment opportunities. Therefore go up in employment is offering individuals to indulge in more than the basic need, allowing them to spend and save both. With frantic standards of living, timesaving products are progressively in demand. The basic Indian culture is of consuming homemade food. It isn't super easy to bring changes to their eating habits as there are many different religions & ethnicities. Reference point group are also influence to someone's behavior of eating food outside. Like a family indulging in Non-veg food beyond your home often, then it is passed to children also. Friendly school would also be a identifying factor depending on Income education & profession. Balancing all these three elements influence the purchase action of a person. Culture can be an important factor from the view point of the internet entrepreneur. This effect the consumption tendencies of people. In India meat is not used by Hindus credited to spiritual reasons. Hindus constitute the major inhabitants in India. Muslims do not take in pork meat. For Jains they do not consume meat. It is completely prohibited. Therefore hen is preferred. As the barriers to consume out entrenched in certain sectors of Indian population. The influence to get junk food are due to factors such as environment at home, availableness and accessibility to fast food providers, interpersonal environment and area. Various other additional some of individuals who you live alone have self-reliance in their diet plan, sometimes opting for a new variety of food than the original home grilled food. To put in time socializing in an atmosphere making them comfortable also affects the visit & liking of fast food outlet. Indian consumers are of the view that cleanliness conditions are to be provided within an around your kitchen.

This model can be an essence aiding consumers to respond in decision making process. It's known as dark-colored box as we still know how human mind works. Some other influences also will be talked about like motivations, perception, perceived dangers etc.

1) Problem Solving-

a) When a person is eager and search of instant fulfillment.

b) Target to consumers who are experiencing open way of thinking to try a new variety of food.

c) Concentrate on to Middle &Upper middle income consumers who wish to visit away and socialize.

d) Convenient to carry & looking out for a differ from the traditional Indian homemade food.

2) Information Search-The factors dependant on consumers to recall the Junk food Brand

Burger Ruler.

Internal Factors for Consumers to find.

Recall of adverts broadcasted on Country wide Television.


Worldwide Brand value of Burger Ruler once and for all quality and food.

Some Exterior factors which would influence-Colleagues, open public resources, friends &family. Some articles from product score organizations as Consumer Statement.

3) Alternative Evaluation- Mc Donald's, KFC, Nirula's, home made food and other local restaurants.

4) Purchase Decision-The purchase decision when made in Burger King would be guaranteed by many factors like

a) Sociable Surroundings-The kind of men and women around just as India it might be targeted on Middle class and Upper middle class segment. The folks present and included while making the purchase.

b) Physical Appearance-Such as dcor, ambience of the place, hygiene factors, fast service offered & some music.

c) Antecedent States-The goal being on individuals who earn Rs30, 000 to 40Kper month. Including consumer's mood and cash in hand.

5) Post-Purchase Behavior-In case of junk food joint it becomes bit difficult to known the customers opinion towards the food consumed by them as consumers are generally not very willing to provide. But sometimes it can be actively put into action to gather the feedback through some questionnaire which is not prolonged. Some point of contact for customers where a person is appointed in the store to learn what consumers feel about the Fast-food offered. Even through person to person if individuals are satisfied they would convey it to their near and dear ones too.

Some internal Effect on Consumer Action.

Motivation-Some people are food fans who enjoy having food & enjoy variety of cuisines. They are internally determined.

Perception-The conception of the brand worldwide. The style & quality of food offered is determined predicated on international criteria and records.

Perceived risks-These risks in case of junk food would be related to health hazards which it may bring over time. The cleanliness factor can be considered a cause of matter.

Personal factors-These factors also impact the consumer patterns like economic situation, age, job, personality & lifestyle.

a) Economic situation-The economical situation in India is on a growth stage. With more people becoming a member of the labour power daily and middle income and upper middle income population able to invest their leisure, food and entertainment nowdays. Folks are having more of methods to save for their future too additional to the throw-away income to invest. As individuals with a regular income of bare minimum Rs. 30, 000 it could targeted for.

b) Lifestyle-The change in the lifestyle of people have also under gone a change. Most of the individuals are working and occupied with their hectic schedule so rarely find period to cook and also have do-it-yourself food. So junk food offers them convenience, tastes and easily available at good price suiting the wallets of the individuals. People are nowadays governed by education, income, intelligence & vitality. Mindset of individuals are undergoing a fast change prepared to try different kind of food and a way in which one can go and enjoy good yummy food outside.

Part 3: Intend to Launch the Product

Brand Name-Burger King

Product Type-Fast food Burgers

Campaign-Urban Regions

Campaign-"One King, Burger King"

Global companies like Burger king face the condition of initiating a worldwide product introduction, as the characteristics of varied culture, values and multicultural situation of countries today. Cost increases and pr support across multiple markets makes it more difficult. Food can be an essential aspect of society's culture and ethnicity. Even during globalization and developing a cosmopolitan prospect some basic cultural taste, local personal preferences and market features in food industry of a particular country cannot afford to be ignored. A proper researching the market need to be undertaken or it could negatively harm the merchandise launch of the brand hurting the values of the prospective market. Understanding the nerve and benefits and drawbacks of the local food market of an country would avoid making expensive flaws. Burger King is known worldwide for its burgers which mainly acts meat & pork as the component in Burgers. But in a country like India which includes people of different religious beliefs and civilizations were Hindus and Muslims are prohibited from ingestion of meat and pork. Burger Ruler needs to add products personalized for the Indian Market keeping in mind the Indian tastes & choice. Around 40% populations of Indians are vegetarians. This constitutes a fairly good number of populations. Moreover during some religious events, as India is land of festivals people do not consume non-veg products during that period too. And in many cases during some fast period when seen by the people in India non-vegetarian food product ingestion is low. Therefore Burger King needs to show up supplying a proper mixture of western basic food taste with some Indian spices & some healthy options in Burger itself. As now many Indians are available to try the new variants of food but are also health mindful too.

Brand Name-Burger King

Product Type-Fast food Burgers

Campaign-Urban Regions

Campaign-"One Ruler, Burger King"

Pre-Launch Scenario

Renowned worldwide because of its "Have it your way"

The challenge

Competition with Mc Donald, KFC, Pizza Hut

To establish a monopoly of Burgers is difficult

Mc Donald's is wide spread in majority of locations

To penetrate in to the market with more yummy options to the mark market

Low degree of customer determination because of large number of options available in junk food outlets

Continuous improvement to be produced in value added technology services

Health related issues to be sorted

Target Audience

Middle category and Top Middleclass Individuals

Target Locations

Capital city of India, Delhi and "Silicon valley" of India, Bang lore.

Four P's of Marketing

Place- The location to focus on would be cities like the Airports, Offices & some shopping, malls.

Price-The price would be affordable to Upper middle class and middle income customer's individuals generating an annual income of Rs. 3, 60, 000 per annum.

Promotion-Like in Delhi collecting details for seasonal travelers of metros would allow them with a promotion to treat them with Burger Ruler.

Product-Burger King to introduce the product suiting to the Indian tastes offering variant options to the vegetarians, healthy options in form of refreshments along with tasty non-vegetarian food. During some major festive months burger ruler can release some new products to attract the mark customers.

People-The Burger ruler staff needs to be well trained and their uniform while wedding caterers to the clients can be a combination of indo-western apparel which would be attractive. The staff needs to be reliable in undertaking duties and right visitors to be recruited for the several nature of jobs. The personnel should greet customers not by expressing hello or Howdy instead with 'NAMASTE' as this might showcase the traditional culture of greeting the visitor.

Process-The process of delivering the food and service should be communicated well to the customers. As a huge populace is vegetarian fans so food should be grilled remember the religious values and norms of Indians. The meals served should be quick and tasty suiting to the Indian consumers style. Customers need to be informed in case there is some wait period of the product been provided. Proper communication need to be made. Facilities such as cleanliness and proper ambience have to be created for customers to take pleasure from. Burger ruler should make an effort to build relationships customers to receive the feedback on the service shipped by them. This can be filling some short questionnaire or by introducing something similar just like a huge bell put in Indian 'Pizza Hut' to wedding ring so that customers can display their satisfaction towards the product.

Physical Service-Service can not be experienced before it's provided. So choice made to use the service is dangerous as its intangible in aspect. The doubt can be reduced in your brain of customers prior of use of the merchandise if the features are well communicated to the target consumers.

Promotion of Burger Ruler done by marketing communication mix


Sales promotion

Direct marketing

Public Relations

Phase-1 Kick off the Product

The product start of Burger King must be associated in a way the notion which is associated of having burgers from other competition of its. The merchandise being targeted at Middle class and Upper middle income should be positioned in an upscale manner where Burgers are on offer of King's taste and cured like Ruler making them feel calm and enjoy the experience of eating the burger in a great ambience. Also the communication of Quality, speedy service and sanitation must be communicated well. Burger Ruler should bring in options for vegetarian buffs as this might help them to permeate, in to the market easier. The religious sentiments of Indians need to be taken care in case of non-vegetarian burgers. The business needs to establish a trust on consumers about the method in which product is been ready without harming any religious sentiments.

Phase-2 Brand advertising

The advertising of Burger ruler can be effectively done through Printing Media, Television advertising and hoardings. This should include making customers aware of the product, aiding them for easy recall and relating it to them personally. The television adverts to be broadcasted on news and business channels like CNN IBN, TIMES NOW plus some other channels like MTV. The advertisements needs to effectively communicate to the clients the place is made for relaxing also to benefit from the Burger in King's style. During this phase it requires to focus on building the brand and product relevance. It would be launched not for mass audience but segmented as market with on top of quality, service and price. The brand should leverage the central theme of "Have it the right path". The DAGMAR idea model 1961(Defining advertising goals for assessed advertising results).

1. From unawareness to awareness-To make the mark potential customers aware about the product.

2. Comprehension-Customer in a position to recognize the merchandise and having knowledge about the product.

3. Conviction-Customers keeping a firm frame of mind of the product brand in comparison to others and can be based on emotional or rational basis.

4. Action-Move made to buy reflects the advertisements has been effective to talk to the prospective audience.

The Unique advertising proposition of Burger Ruler must be highlighted. 'HAVE IT YOUR WAY'

Other Communication Channels-

On benefits of Burger Ruler in Metro like Delhi some coupons can be offered to the commuters venturing on monthly goes by.

In the 'silicon valley' bang lore food coupons to the MNC office buildings like Google, Sony can be provided to market Burger king.

To advertise through public media campaign. To promote through electronic mass media.

To promote in a few Business seminars like 'Retail Connection of India' through offering vouchers and hoardings exhibiting Burger King finally in India.

To advertise in occasions like, Common prosperity games.

Internet connection can be utilized as a powerful medium of route.

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