Fast food industry across the globe has witnessed extraordinary growth over the past few decades. This is largely attributed to the lifestyle changes and increasing popularity of the over the counter fast food service mushrooming across all corners of the globe. Burger King is recognised the world over as a leading fast food service provider specializing in burgers and fries. The company has its presence in nearly 72 countries across the world and operates more than 11,500 restaurants.
The past few years have seen rapid changes in the fast food industry and there is a growing consciousness among consumers on what they eat and how it can impact their health. For years the fast food industry has capitalized on a diet rich in fat and this has resulted in increasing obesity and related health problems in the society. The consumers hence are shifting to healthier alternatives and keeping in line with changing consumer tastes and preference Burger King proposes to launch a Healthy Snacks Joint that will provide its consumers with healthy snacks.
The report below presents a situational analysis of the proposed product diversification strategy and highlights the challenges and issues that need to be focused on while formulating the marketing strategy. Competitor Analysis The fast food industry is an increasingly competitive market owing to increased demand and growing urge of consumers to try new flavours that can satisfy their taste buds. Over the past few decades a number of brands have emerged to tap this extensive revenue generating business.
Well known brands such as Wendy’s, McDonalds, Pizza Hut and KFC have established a strong global market presence. Burger King faces stiff competition from these major brands. The global recognition of brands like McDonalds is one of the biggest challenges faced by Burger king. Wendy’s and Pizza Hut have also adopted aggressive marketing strategy that involves extensive market penetration and increasing brand recognition strategies targeted at children and adolescents who form a sizeable chunk of the consumer base.
Besides the major brands Burger King also faces stiff competition from super marts and convenience stores that offer consumers with take away meals that are healthier substitutes to burgers and fries. “Standalone sites from the global fast food brands are also facing growing competition from sales in supermarkets, high street stores, convenience stores and petrol forecourts” (RedOrbit, 2005). The fast food outlets have adapted their menus to suit the changing palettes of the consumers and are serving low calorie food items that include salads, fruit juice, and sandwiches.
Market analysis The fast food industry has witnessed an enormous growth in the past few decades. This is largely due to the impact of changing lifestyles that has increased the demand for over the counter fast food service. Home cooked food has rapidly given way to fast food alternatives with increasing number of women joining the work force leaving them with lesser time to spend in the kitchen and cook for their families.
The market is flooded with different outlets and food chains selling burgers, pizzas, sandwiches and other snack items with accompaniments like French Fries, soups, beverages, and desserts. The prime drivers of popularity among masses in this industry are fast and efficient customer service, effective management, and aggressive marketing strategy. The industry has propelled chains of restaurant outlets across the globe leveraged by universal brand positioning strategies.
A significant trend of the industry is the franchisee concept that has promoted the appearance of food outlets in every nook and corner. One of the prime requirements of this business is voluminous processing of ready to eat food items, packaging, and delivery at fast pace. Hence, fast and efficient customer service is of prime importance in this business. The growth pattern of the industry in the last few years has been driven by the increasing number of drive-in outlets in easy to access public places such as the petrol pumps, supermarkets, railway stations, airports, and other high traffic areas.