Executive Summary
This report reviews the features of Burger King’s innovative marketing approach, which was introduced in 2018. As the decision to use the mobile app and the geolocation of customers to offer them the Whooper for 1 cent is being implemented to compete with McDonald’s, the report discusses various aspects of this approach. The case facts and symptoms of the problem, which are in the ineffective current marketing tools, are analyzed.
In addition, using SWOT analysis, the report explores the peculiarities of Burger King’s business position in the US and potential growth opportunities. Considering all these factors, the paper aims to offer alternative solutions to a particular problem. The author believes the most effective of the three approaches was chosen. In particular, the report states that diversity in the choice of the company for customers is an essential factor in increasing the level of competitiveness in the market, particularly against McDonald’s.
Case Facts, Symptoms, and Underlying Problem
As a case in point, it is essential to highlight Burger King’s desire to increase the flow of customers to its restaurants. One of the critical facts of the situation is the use of modern technologies as an advantage in the context of business strategies. The development of a mobile application and the use of geolocation to get a burger for 1 cent also highlights the trend toward high technology in marketing (Quest, 2018).
The case’s symptoms are the need for the company to adopt innovative and creative strategies. The main symptom may be the awareness of inefficient existing marketing methods. In addition, applying geolocation technology to McDonald’s restaurants indicates a symptom of identifying this company as a significant competitor and a threat to Burger King.
As the underlying problem presented in the case, one should highlight preliminary results and profit from existing marketing tools. This is why Burger King seeks more efficient and innovative solutions (Quest, 2018). In addition, as the cause underlying those symptoms, it is crucial to consider the insufficient motivation for customers to change their desire to visit Burger King instead of McDonald’s, just because they can buy a Whopper for 1 cent.
Case SWOT Analysis
Internal Strengths and Weaknesses
As one of the main internal strengths of the Burger King company highlighted in the case, it is essential to consider the vast presence of this fast-food restaurant chain in the US market. It is vital in terms of the new marketing approach to attract customers using geolocation. Therefore, as internal strength, it can be Burger King’s production capability.
In addition, the company’s strengths may be the vast number of positions on the menu. It gives customers elasticity while choosing what they want to consume regarding food (Yakob, 2021). However, considering the internal weaknesses of Burger King compared to McDonald’s, it is necessary to state that it has not had as robust a branding ability as the company with the big letter “M” has (Yakob, 2021). In addition, another internal area for improvement is the increasing choice of healthy food in restaurant menus, which is becoming more popular nowadays.
External Opportunities and Threats
Considering Burger King’s external opportunities, paying attention to the abovementioned weaknesses will be helpful. In particular, the limited choice of healthy food on the menu can be an opportunity. The company can adapt its menu to the customers’ demands and profit more from that. However, external opportunities will be more specified in collaboration with other companies.
Notably, using the app on Apple devices and geolocation tracking assumes the implementation and development of various technologies (Yakob, 2021). Therefore, a significant external opportunity for Burger King would be the close collaboration with technological companies to improve the efficiency of its mobile app in terms of marketing.
External threats assume McDonald’s ability to construct another marketing and technological approach that could overcome Burger King’s method. As a result, the app will act against Burger King, and the result will be the opposite (Yakob, 2021). In addition, it is necessary to consider the external economic situation, which can directly influence the customers’ ability to buy food from Burger King.
Three Alternative Solutions
The first alternative to the challenge of increasing Burger King’s competitiveness in the market will be a change in the burger recipe, accompanied by an effective marketing campaign. The cost of this solution should be, at most, an absolute minimum, for example, $10,000. It is important to stress that the burger recipe can be changed only in the context of the relative position of the ingredients without additional costs (Ang, 2021).
The second alternative is to change the company’s branding, in particular, to improve the logo and color palette. This inexpensive solution will change the company’s image without high costs. At the same time, it will refresh the image of Burger King, which can be a benefit compared to the old letter “M“ and the fun clown of McDonald’s.
A third solution is a different approach to the context of an existing application and geolocation regarding Whooper for 1 cent. As found in the case problem, customers may not be sufficiently motivated to change their preference for Burger King simply because of this offer. Therefore, the alternative is to give people a choice of different burgers for 1 cent (Ang, 2021).
For example, a veggie burger has a small number of calories. The company will not have to invest extra money because these burgers are assumed to be on the menu. The advantage of this solution is that it will be an excellent motivation for customers to choose Burger King over other fast-food restaurants, particularly McDonald’s.
Proposed Action Plan
The third option was to increase the selection of 1-cent burgers. To prevent a similar occurrence in the future, customers should be allowed to choose according to their needs. In collaboration with cookers, marketers should provide offers regarding burgers, which can also be sold for 1 cent.
An advertising campaign should indicate expanding the burger list for this promotion (Yuan et al., 2022). It should be done first to encourage customers to visit Burger King through the possibility of choosing, and secondly, to popularize the food company. This solution was chosen because it can solve the identified problem by attracting customers via a mobile app, thanks to better, more diverse food choices.
As a contingency plan, if the approach is ineffective, Burger King’s managers can minimize the consequences by adding an element of interactivity to the mobile application. For example, the path from McDonald’s to Burger King can be implemented in a game or educational format.
As proof of the effectiveness of the application, for a more comprehensive selection of 1-cent burgers, it is vital to give an example of how different restaurants use technology to customize their food. For example, Burger King’s competitor, McDonald’s, implemented the “MyMcDonald’s Rewards“ app, which allows customers to enjoy bonuses and discounts and choose food (Yuan et al., 2022).
In my personal experience, I should highlight that I have met a variety of apps in the App Store regarding food that aim to provide customers with as wide a choice of food as possible and customize it. It is suitable for me because I am allergic to some products, and using these apps, I can remove these ingredients from the dish.
References
Ang. L. (2021). Principles of integrated marketing communications: An evidence-based approach. Cambridge University Press.
Quest Means Business. (2018). Burger King wants you to go to McDonald’s [Video]. YouTube. Web.
Yakob, F. (2021). Paid attention: Innovative advertising for a digital world. Kogan Page.
Yuan, C., Ganchev, I., & Li, X. (2022). Proceedings of the 2022 international conference on business and policy studies. Springer Nature Singapore.