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BK SCM

BURGER KING(r) hamburger c o s t 1 8 c / and an Original WHOPPER(r) Sandwich cost 37c /. By 1967, when the company was acquired by the Minneapolis-based Pillsbury Company, 8,000 employees were working in 274 different restaurant locations.

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Sabere Hosseini
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0% found this document useful (0 votes)
271 views

BK SCM

BURGER KING(r) hamburger c o s t 1 8 c / and an Original WHOPPER(r) Sandwich cost 37c /. By 1967, when the company was acquired by the Minneapolis-based Pillsbury Company, 8,000 employees were working in 274 different restaurant locations.

Uploaded by

Sabere Hosseini
Copyright
© Attribution Non-Commercial (BY-NC)
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A leader in today's fast-food industry, with locations in all 50 states and 62 countriesaround the world, Burger King Corporation

was founded in 1954 in Miami, Florida, by James McLamore and David Edgerton. McLamore and Edgerton, both of whom had extensive experience in the restaurant b u s i n e s s b e f o r e starting their joint venture, believed in the simple concept of providing the c u s t o m e r w i t h r e a s o n a b l y p r i c e d q u a l i t y f o o d s e r v e d q u i c k l y i n attractive, clean surroundings. ESTABLISHMENT AND GROWTH Often abbreviated to BK , is a globalchainof hamburger fast foodrestaurants. And has since used several variations of franchisingto expand its operations. Burger K i n g H o l d i n g s i s t h e p a r e n t c o m p a n y o f B u r g e r K i n g . I n t h e U n i t e d S t a t e s i t operates under the Burger King Brands title while internationally it operates under Since its Florida beginnings 50 years ago in 1954BURGER KING hamburger c o s t 1 8 and an Original WHOPPER Sandwich cost 37, Burger K i n g Corporation has established restaurants around the world from Australia t o Venezuela. By 1967, when the Company was acquired by the Minneapolis -basedPillsbury Company, 8,000 employees were working in 274 different restaurant locations. Today, there are more than 340,000 BURGER KING employees in morethan 11,200 locations worldwide. In 1988, Grand Metropolitan, plc acquired ThePillsbury Company and its subsidiaries, including Burger King Corporation. In1997, Grand Metropolitan m erged with Guinness to create a new company calledDiageo, plc. In December 2002, Diageo sold Burger King Corporation to an equitysponsor group comprised of Texas Pacific Group, Bain Capital, and Goldman SachsCapital Partners. This marked the first time in more than 35 years that Burger KingCorporation was a privatelyheld company.T h e s u c c e s s a n d s i z e o f B u r g e r K i n g C o r p o r a t i o n i s t h e r e s u l t o f a tradition of leadership within the fast-food industry in such areas as product d e v e l o p m e n t , restaurant operation, decor, service, and advertising.J u s t a s t h e O r i g i n a l WHOPPER Sandwich was an immediate hit when it wasint roduced in 1957, each of the Company's products provides the quality andc o n v e n i e n c e s o u g h t b y t o d a y ' s c o n s u m e r s . S t i l l , t h e O r i g i n a l W H O P P E R Sandwich, one of the bestknown hamburger sandwiches in the world, remains a perennial favorite. The company's first-ever extension of the WHOPPER brand occurre d in April 2002, with the launch of the Chicken WHOPPER and ChickenWHOPPER, JR..One factor that has helped to increase the Company's expansion and growth has b e e n t h e f r a n c h i s i n g o f r e s t a u r a n t s t o i n d i v i d u a l s . B y 1 9 6 1 , M c L a m o r e a n d Edgerton had acquired national franchise rights to the Company, which was thenoperating 45 restaurants throughout Florida and the Southeast. Burger King Corporation was the first fast-food chain to introduce dining rooms,allowing customers a chance to eat inside. Drive -thru service, designed to satisfycustomers "on the-go," was introduced in 1975, and now accounts for more than58.8% of BURGER KING business. "Take-out" represents another 19.6% of off- premise dining. Burger King Corporation's advertising campaigns have also contributed to t h e Company's success. The Company's first television ad featuring the HOME OFTHE WHOPPER, ran on Miami's only VHF station in 1958. One year after ThePillsbury Company acquired Burger King Corporation, the Company's first major promotion, "The Bigger the Burger the Better the Burger," debuted. In 1974, thememorable "HAVE IT YOUR WAY" campaign was created. Other advertisingcampaigns have included

"America Loves Burgers and We're America's Burger King;" "Best Darn Burger;" "MAKE IT SPECIAL, MAKE IT BURGER KING;""AREN'T YOU HUNGRY?;" "Battle of the Burgers;" "Burger King Town;" "BestFood for Fast Times;" "We Do It Like You'd Do It;" "Sometimes You've GottaBreak The Rules;" "Your Way, Right Away;" "Get Your Burger's Worth;" "@BK,You Got It!;" and most recently, "THE FIRE IS READY SM " which features theBrand's "Fire-Grilled Advantage" over its competitors.Independent franchisees, many of them family-owned operations that have been in business for decades.B u r g e r K i n g H o l d i n g s , I n c . , t h e p a r e n t c o m p a n y , i s p r i v a t e a n d i n d e p e n d e n t l y owned by an equity sponsor group comprised of Texas Pacific Group, Bain Capital,and Goldman Sachs Capital Partners. In fiscal year ending June 30, 2004, Burger King Corporation had system-wide sales of $11.1 billion . PRESENT STATUS At the end of its fiscal year 2007, Burger King reported that there are more than11,300 outlets in 69 countries; 66% are in the United States and 90% are privately o w n e d a n d o p e r a t e d . T h e c o m p a n y h a s m o r e t h a n 3 7 , 0 0 0 e m p l o y e e s s e r v i n g approximately 11.4 million customers daily. The company's two largest franchiseesare Carrols Corporation with over 325 restaurants in United States, and Hungry Jack's, which exclusively owns, operates or sublicenses over 300 restaurants inAustralia.A s w i t h o t h e r multi-national corporations, B u r g e r K i n g h a s h a d i t s s h a r e o f controversies and legal issues over the course of its existence. Issues have includedtrademark disputes, controversies with animal rights groups, health issues and labor relations. Several of its legal cases have been precedent setting in their scope, bothin the United States and abroad. Depending upon its ownership and executive staff at the time, its responses to controversial situations has varied from acceding to demands to refusal to concede its position regardless of the outcome INTERNATIONAL EXPANSION While BK began its foray in to locations outside of thecontinental United Statesin1 9 6 3 w i t h a s t o r e i n San Juan, Puerto Rico, i t d i d n o t h a v e a l a r g e i n t e r n a t i o n a l presence. This situation changed shortly after the acquisition when Pillsbury openedits first international restaurant inCanadain 1969. Other international locationsfollowed soon after: Oceaniain 1971 with Hungry Jack's and inEuropein 1975 w i t h a r e s t a u r a n t i n Madrid, Spain. B e g i n n i n g i n 1 9 8 2 , B K a n d i t s f r a n c h i s e e s began operating stores in several East Asiancountries, includingJapan,Taiwan, SingaporeandKorea. Due to high competition, all of the Japanese locations closed by the end of 2001. BK reentered the Japanese market in mid -2007. BK'sCentral andSouth Americanoperations began inMexicoin the late 1970s. While Burger King lags behind McDonald's in international locations by over 12,000 stores, it hasmanaged to become the largest chain in several countries including Mexico and Spain. To assist in its international expansion, Burger King has established severals u b s i d i a r i e s t o d e v e l o p s t r a t e g i c p a r t n e r s h i p s a n d alliances to expand into newterritories; in Europe, Burger King's subsidiary B u r g e r K i n g E u r o p e G m b H i s responsible for the licensing and development of BK franchises in the that market,Africa and Western Asia. In Asia, the BK AsiaPac, PTE. Ltd. business unit handlesf r a n c h i s i n g f o r E a s t A s i a , t h e A s i a n s u b c o n t i n e n t a n d a l l t e r r i t o r i e s O c e a n i c territories except Australia.Over the ten year period starting in 2008, Burger King sees 80% of its market sharet o b e d r i v e n b y f o r e i g n e x p a n s i o n , p a r t i c u l a r l y i n t h e AsiaPacificandIndian subcontinentr e g i o n a l m a r k e t s . W h i l e t h e T P G - l e a d g r o u p h a s c o n t i n u e d B K ' s international expansion by announcing plans to open new franchise locations inEastern Europe,Africaand theMiddle East, andBrazil, the company plans to focus on the three largest markets, India, China and Japan. The company plans to add over 250 stores in these Asian territories, as well as other countries such asMacao, b y t h e e n d o f 2 0 1 2 . I t s

expansion into the Indian market has the company at acompetitive disadvantage w i t h o t h e r Q S R v e n d o r s s u c h a s KFC b e c a u s e t h e country's largeHindumajority's aversion to beef. BK hopes to use it recent non - beef products, such as it's TenderCrisp and TenderGrill sandwiches, as well as other products to help it overcome this hurdle to expand in that country.Today, Burger King is the second largestchainof hamburger fast foodrestaurants in the world behind industry bellwether McDonald's (31,000 locations) and the fourthlargest fast food restaurant chain overall after Yum! Brands (34,000 locations), McDonald's and Subway (28,400 locations). L O G O The first logo that Burger King used is identified simply as the Sitting King logo;the first version of the Burger King character is shown sitting atop the of the sign holding a beverage. The sign has several versions, with the King either sitting atop ahamburger or on an inverted trapezoid with the company name along the top and itsmotto Home of the Whopper below it; some signs did not include the King and onlyhad the inverted trapezoid. This logo was used in one form or another until 1969 when the famous Burger King "bun halves" logo made its debut, and has continuedin one form or another until the current day. As implied by its name, the logo ism e a n t t o r e s e m b l e a h a m b u r g e r ; t h e l o g o h a d t w o o r a n g e s e m i - c i r c u l a r " b u n s " surrounding the name, which was the "meat" of the logo. In 1994 BK updated thelogo with a graphical tightening, replacing the aging "bulging" font with a smoother f o n t w i t h r o u n d e d e d g e s . I n a d d i t i o n , a l l s e c o n d a r y s i g n i n g , s u c h a s r o o f a n d directional signs, was also updated with new rounded font.In 1999, BK again revised its logo. The new Burger King logo is a stylized versionof the original "bun halves" logo. BK changed the color of the restaurant's namefrom orange to red lettering, while leaving them sandwiched between two yellow bun halves. The new logo also tilts the bun halves and the f ont on an axis, has asmaller "bun" motif and wraps the burger with a blue crescent whipping around the buns giving it a more circular appearance. Most restaurants did not acquire newer signs with the new logo, menus, and drivethru ordering speakers until 2001. Againall secondary signage was updated with the new logo and type face, and all sign p o s t s w e r e r e p a i n t e d t o m a t c h t h e b l u e c o l o r i n g o f t h e n e w c r e s c e n t f r o m t h e i r original black. NATURE OF THE PRODUCT Tangible Elements: The tangible elements are those elements, which you can see and feel. These include: The chairs and tables on which the customer eats. In Burger King the tablesand chairs are made up of plastic. The menu of Burger King is also a tangible element. It is specially designedwith pictures alongside the food listings so that it attracts the customers. The food is also one of the tangible elements, which the customers can feel by tasting The room dcor is another tangible element. The service counters are also one of the tangible elements. In Burger Kingthe service counters are made out of wood and behind them on the walls t h e r e a r e p i c t u r e s o f t h e f o o d l i k e b u r g e r s , c h i p s , e t c . T h i s a t t r a c t s t h e customers to the counters. Lighting is yet another type of tangible element which the customer can seeand experience

Intangible Elements: Intangible elements are classified as thoseelements, which we cannot feel or w h i c h c a n n o t b e t o u c h e d . T h e s e include : The ambience, which cannot be sensed or imagined by the customer, is an intangible element. The customer also cannot judge the service of the restaurant. So this is an intangible element. The service in Burger King is single point service. Room heaters or ACs are also intangible elemen ts because they cannot beseen or touched. Perishable Products: . The perishable products of Burger King include R a w m a t e r i a l s , w h i c h i f k e p t f o r t o o l o n g c a n g e t s p o i l t a n d e v e n t u a l l y perish. Cooked food is also a perishable product because if it is not consumed witha limited time span then it has to be thrown away. The cutlery of burger king is a perishable product, because the cutlery whichthey use, is use and throw. The plates, which they serve on, are also perishable because they are also use and throw. G. SERVICE STYLE IN BURGER KING Burger King is a fast-food outlet. So the type of service provided to the customers o v e r there is Single -Point service. Single -point service means service to t h e customers from a single point. The customers stand i n a queue till their chancecomes. When their chance comes they order what they want on the service counters,t h e y p a y a n d t h e n t h e y c o l l e c t t h e i r f o o d . T h e f o o d i s c o n s u m e d o n t h e o n t h e premises or taken away.Here basically the service is at a counter where customers receive a complete mealor dish in exchange of cash or ticket. Here the menu is of limited range, the serviceis fast and with take away facility OTHER SERVICES PROVIDED BY BURGER KING Drive-Thru: It was introduced in Burger King in 1975. It is a form of take-away where the customer drives vehicle past order, payment and collection points. This type of service accounts around 58.8% of the companys total business. Take-Away: It is a type of service where the customer orders and is served from a single point, at counter, hatch or snack stand, customer consumes off the premises. It represents about 19.6% of the total business. I. PRODUCTION STYLE The production style of Burger King is cook -serve. The service is related to the production in the outlet. No sooner the food is produced than it is served to thecustomers. If the time-span between production and service is more than 10 -15 minutes then the food is thrown away for the safety of the customers. When the customer orders, the food is being cooked and then immediately served to him TARGET MARKET Burger King basically targets customers like

Young children: Young children often like to visit Burger King because theyg e t a t t r a c t e d t o t h e c o m p l i m e n t a r y t o y s w h i c h B u r g e r K i n g p r o v i d e s o n certain meals. So young children with their parents visit Burger King. Students: Students from colleges and schools want to satisfy their immediateneeds of eating so they prefer to go to Burger King. Also they prefer fast food more than heavy food, so they prefer Burger King. Families: Families like to eat-out many times without wasting a lot of timeand as well as lot of money, so they prefer to go to Burger King. Old people: Old people like to have light food so they like to visit Burger King. Businessmen and Working People: Businessmen who do not like to waste alot of time and just want to satisfy their basic needs of eating and drinking. Also customers who are in a hurry come to burger king just to satisfy their basic needs of eating and drinking. They mostly prefer drive-thru or take-away GUEST EXPECTATIONS FROM BURGER KING The guest expectations from Burger King are: Fast food

Friendly and informal service Quality food with respect to money Variety in dishes Complimentary gifts Entertainment like music L. MERCHANDISING OBJECTIVES The basic merchandising objectives are: To persuade the customers to patronise the hotel or restaurant more often. Create a desire for a product/service in the minds of the potential customers. Emphasize benefits and advantages of the product/service. Create an awareness of the product/service. Increase the market share.

Improve the revenue. Influence the attitude of the public towards the product/service. Improve the brand royalty. C o n f i r m i n t h e m i n d s o f t h e c u s t o m e r s t h a t t h e y h a v e m a d e t h e c o r r e c t choice. Enhance the desired image of the hotel or restaurant Burger King uses many merchandising techniques for the sale of their f o o d products. They make advertisements on TV, in newspapers. They also display the pictures of food in the menu and on the walls of the outlets so as to attract the customers. They launch new meals at very affordable prices to attract customers. One of the merchandising techniques used by Burger king is; they give toyson certain meals. This is very attractive to the young children for which theymight want to visit Burger King. I f o n e o f t h e i r p r o d u c t s f a i l s i n t h e m a r k e t t h e y c o m b i n e i t w i t h a n o t h e r product and launch it again giving it a different name. They also launch festival offers They provide discounts at special occasions to attract customers. They also provide some complimentary gifts to promote their sales. They also suggest the names of their other outlets to promote their sales.B u r g e r K i n g h a s e m p l o y e d v a r i e d a d v e r t i s i n g p r o g r a m s , b o t h s u c c e s s f u l a n d unsuccessful, since its foundation in 1954. During the 1970s, output included a memorable jingle, the inspiration for its current mascotthe Burger Kingand severalwell known and parodiedsloganssuch as Have it your way and It takes two handst o h o l d a W h o p p e r . Burger King introduced the firstattack adi n t h e f a s t f o o d i n d u s t r y w i t h t h e h e l p o f t h e n u n k n o w n Sarah Michelle Gellar i n 1 9 8 1 . T h e television spot, which claimed BK burgers were larger than competitor McDonald's,s o e n r a g e d e x e c u t i v e s a t M c D o n a l d ' s p a r e n t c o m p a n y , t h e y s u e d a l l p a r t i e s involved. Starting in the early 1980s and running through approximately 2001, BK e n g a g e d a s e r i e s o f ad agenciesthat produced many unsuccessful slogans and programs, including its biggest advertising flop Where's Herb? Burger King was a pioneer in the advertising practice known as the product tie-in with a successful partnering withGeorge Lucas'Lucas film, Ltd.to promote the 1977 movieStar Warsfilm

Star Wars (later renamed Star Wars Episode IV: A New Hope ) in which BK sold a set of glasses featuring the main characters from the film.This promotion was one of the first in thefast foodindustry and set the pattern thatcontinues to the present. BK's early success in the field was overshadowed by a 1982 deal between McDonald's and theWalt Disney Companyto promote Disney'sanimated films beginning in the mid 1980s and running through the early 1990s. In1994 Burger King reversed the situation with its own ten film promotional contractwith Disney; the venture led to great success for both companies as this period in Disney animated film production is considered to be film company's second Golden

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