The British University in Egypt
Introduction to Marketing 2
Burger King which started of as a partnership organization between James Mclamore his partner David Edgerton in 1954 is now owned by a group of investors led by Texas Pacific Group, and this has been the case since 2002. Burger King does not only seek to maximize profits, but also customer satisfaction. Since it was just recently introduced in the Middle East and precisely in Egypt, one of its major objectives is to increase awareness to its new market. Burger King started of with just one store in Miami, Florida. Today it runs over 11,000 branches and yet still seeking for more. Here, will emphasize on what are the major factors that need to be to be put into consideration and become part of Burger King’s objective, as well as discussing the internal weaknesses and strength against its external opportunities and threats. We also mention ways and plans in which Burger King could expand on its market share in both new and existing markets. In addition on strategic methods both internally and externally to improve on customer loyalty and quality improvement that consequently will generate higher profits.
Currently Burger King is owned by a group of investors led by Texas Pacific Group, and this has been the case since 2002. Burger King has more than 11,300 branches worldwide. In the near future Burger King will enter the Egyptian Market, hoping to have a significant percentage of the market share, about 10 – 15 % for starters and we hope to increase this percentage over the coming years. Burger King will be franchised to Hana International Company (limited), which is part of The Olayan Group, based in Saudi Arabia. A) The Marketing Environment
* Competitive Forces: Burger King has both local & multinational competitors, but we will concentrate on the multinational competitors as they have a more significant percentage in the market share. The current dominant market share occupants are McDonalds & Hardees, with McDonalds being in the lead, since it has a higher percentage. * Economic Forces: high inflation & interest rates means that the current prices of our products will be high by nature of the situation. Companies overall promotion budget is high. * Political Forces: Stable environment.
* Technological Forces: Internet only used by 7% of the population and the majority of the 7% is teenagers and young adults, and since these are the people we should be targeting, it is wise to advertise online. * Socio-cultural Forces: food should be fast, cheap, of good quality & taste. B) Target Market(s)
* Customers: The general population, aiming at the middle and higher ends of the population and also focusing on customers between the ages of 16 & 34. Customer marketing will be focused on children & teenagers. * Potential Franchisees: Very Narrow Target Market when it comes to Franchisees, but this has already been chosen, The Hana International Company. C) Current Marketing Objectives & Performance
Our objectives consist of the following; we would like to open up 15 new branches over the next two years, and increase our market share to 10 % of the total pie. Performance
* High Sales.
* No Debt.
1. Burger King is going to be introduced in Egypt as a major threat to other competitors due to its popularity and positive feedback in other countries. 2. Burger King is the world's second largest operator of fast food hamburger restaurant (FFHR) chain. 3. Burger King is the first food restaurant to make a "drive thru" in Egypt 4. Burgers are flame broiled not fried, healthier.
5. Over 11,000 restaurants with Burger King name.
6. Market not saturated with Burger King Commercials; a new marketing campaign would have more effect on the consumers. 7. Compared...