Introduction
The aim of this paper is to understand the role of 4Ps in developing the marketing strategy of any product or brand. The 4Ps of marketing is known as the marketing mix which is defined as, “the set of actions, or tactics, that a company uses to promote its brand or product in the market” . In this paper the marketing mix of McDonalds and Burger King will be reviewed and compare. Both the companies are close competitors.
McDonalds is one of the well-known fast food brand world -wide. McDonald’s face competition from various businesses in all the markets, and various environmental changes also impacts the success of the brand in different markets. The company believes in creating loyal customers by understanding the needs and demands and meeting those needs in a better way than its competitors in the market .
Burger King, also known as BK is a US based brand, head-quartered in Miami. The brand was founded by Insta – Burger King in 1953. The brand has global presence and is well known for its hamburgers. The prime competitors of Burger King are McDonalds, KFC, Pizza Hut, Wendy’s etc. .
The marketing mix of McDonalds and Burger King is discussed further in this report.
4Ps of McDonalds
The marketing mix of McDonalds comprises of four elements that is product, price, place and promotion of marketing mix, which helps the brand to fulfil its marketing objectives. The 4Ps of the brand are discussed below.
PRODUCT
The prime emphasis of McDonalds is on developing its menu on the basis of its customer’s needs, which is quiet dynamic in nature as the requirements of the customer’s changes over a period of time. And to deal with these changes McDonalds keep introducing new products and rule out the old ones . McDonalds also take care that they offer huge choice in their menu to their potential customers. The market research of McDonalds continuously monitors their customer’s preferences. The company is aware that the sale of its products in the menu will depend on the product life cycle (figure 1). The marketing strategies of the brand and the resources invested on the product will also depend on the stage of the product . The list of products that the brand offers is French fries, hamburgers, cheese burgers, snack wraps, salads, shakes, Big Mac, desserts, soft drinks, beverages etc. The product portfolio of the company is in different stage of cycle, but growing in popularity but Big Mac is at maturity stage.
Figure 1: Product life cycle
Source:
PRICE
Pricing is a crucial element of marketing where customer’s perception of value plays a vital role in determining the price of the product. Customers have a tendency to develop their own mental picture about the worth of the product . McDonalds pricing strategy is divided in two categories, branded affordability (BA), where the products are low priced and branded core value products (BCV), which are slightly higher than the BA. This strategy is adopted by the brand to deal with customer’s price perceptions .
PROMOTION
Promotion covers every aspect of the market communications with the potential customer. Advertising is one of the promotional strategies employed by any company through television, radio, online, cinema, posters or print media. The promotional strategy of the company is developed to create awareness in public, to make them feel positive and remember it . McDonalds uses mostly television, print media, and online campaigns to reach its target customers. The prime target of McDonald’s is on Children. They mostly advertise on happy meals on which the brand offers one free toy .
Figure 2: Effective Promotion
Source: .
PLACE
Place is the location of the physical distribution of the products. McDonalds is very aggressively and widely spread in whichever city or country it is located, which are very accessible for its target customers .
4Ps of Burger King (BK)
The marketing mix of Burger King is the response of the brand for dealing with the dynamic and saturate condition of the restaurant industry. The marketing mix of Burger King, aims to increase competitiveness against its competitors . The marketing mix of the company is as follows.
PRODUCT
The prime focus of the brand is on burgers as their main product. The product line of the brand includes burgers, chicken and fish, salads, sides, beverages and desserts. Apart from the diverse product line, it offers its customers with the option of Value meals and kids meals. The product mix of Burger King aims to achieve economies of scale through large scale production of their limited product line . The prime strategy of Burger King is “have it your way”, which enables their customer to individualise their orders.
PRICE
The pricing strategy of Burger King is primarily based on their strategy of minimisation of costs and prices. The brand follows market-oriented pricing strategy and also bundle pricing strategy. The company provides option to their customers to choose from value meals or kids meals which are more affordable than individual orders . The brand uses a combination of competitive pricing and psychological pricing .
PROMOTION
Burger King employs various strategies to promote their products. The brand applies advertising, sales promotions, public relation and personal selling for marketing communications strategies to promote its product line. But primarily BK relies on advertising for promotions. The company uses print media, TV and online marketing for advertising. The brand also gives coupons for sales promotions and various other offers through website and mobile app. The sales employees also encourage customers to more products by using personal selling techniques. And the Burger King McLamore foundation provides scholarships and financial helps for educational programs, as part of it public relation strategy. Thus the company applies a successful combination of promotion mix for marketing its products .
PLACE
Burger King has worldwide presence and its products are available at its restaurants. Apart from restaurants, it is also available on websites and mobile apps. The customers of BK could also access coupons from the mobile app of BK for freebies and special offers. The company website could also be used by their customers for placing orders. But the brand prime focus is on their restaurant as the place of distribution of their products . The brand is present in 79 countries with almost 13000 outlets .
A comparison 4Ps – McDonalds Vs Burger King
McDonalds and Burger King are close competitors, and so their marketing mix components are also quiet similar. Both the American brands are business rivals for more than sixty years . The products offered by both brands are almost similar at a similar price band, and the place of distribution is also same that is outlets, and online distribution. The prime difference observed is in their promotion strategies. As McDonald applies more advertising than Burger King, and applies more celebrity endorsements . Though the products line offered is same, but both brands apply innovation on their products to compete with each other. McDonalds believe more on advertising for their promotional strategy whereas, Burger King combines advertising, personal selling, sales promotions and public relations for promoting their products.
References
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