Integrated Marketing in the Digital Age

Discussion 1: Marketing and Market Share 

Brief Description of the Company 

Burger King is a global fast food chain headquartered in Miami-Dade County, Florida. The first Burger King (BK) restaurant was opened in Jacksonville, Florida in 1953. The company has grown tremendously such that there were 16,717 Burger King Locations in various nations across the globe in 2017. The company went public in 2002, and in 2014 it merged with Tim Hortons which became Burger King’s parent company. 

BK is a quick service restaurant with the focus on burgers. BK also sells chicken, fish, sides, salads, veggies, beverages and sweets. BK has a well-planned product mix, and it also sells value meals and kids meal packages to attract families. Despite the many marketing strategies in place, BK is trailing behind McDonald’s, which is the leading burger-based fast food chain in the US and the global market (Shen & Xiao, 2014). BK has been consistently lagging behind McDonald’s regarding sales, profitability and market size. McDonald’s has over 35,000 locations locally and internationally. According to Trefis Team (2017), McDonald’s and BK compete closely with each other, but McDonald’s is the leader with a 19% market share in comparison to BK’s 5% market share from 2015 estimates. BK has to change its strategies to increase its market share locally and internationally. 

Marketing Strategies the Firm can use to grow domestically 

According to Daszkowski (2018), BK is on the runway for growth. The many changes in technology, demographics, and economy are opportunities for marketing BK products and services. Satell (n.d) wrote an article on marketing in the digital age. Satell defined four principles of marketing in the digital age, and the first principle is clarifying business objectives. The digital space offers many marketing opportunities, and the company should come up with marketing objectives to guide its marketing campaign. A marketing strategy borrows from the marketing mix of product, place, price, and promotion. BK has to modify its products, place (delivery), price and/ or promotion to attract more customers. BK is known for signature products such as the Whopper, but it keeps adjusting its product mix. BK also uses competitive pricing by evaluating the pricing of competitors such as McDonald's (Gayle & Luo, 2015). 

The first marketing strategy is improving its delivery system. Fast food companies continue to grow through technology. McDonald’s continues to maintain the lead by delivering food through UberEats while Wendy’s uses DoorDash. Many applications will enable BK to deliver food customers in the comfort of their homes. Food delivery is a growing trend, and BK has to streamline its operations, allow mobile ordering and fast delivery to attract more customers. 

The second strategy is leveraging digital technology. McDonald’s “Experience of the Future” is the new approach to fast food marketing. McDonald’s has redesigned its stores and table services, and by the end of 2017 (Treffis Team, 2017). The new stores enable customers to order their food using touch screens so that they do not have to interact with employees at the counter. The design has attracted the younger generation, and Burger King should also create a similar experience to attract new customers locally. McDonald’s market share has slightly grown since the adoption of technology in the drive through and restaurants. Technology improves service delivery, and it is a hit among young people. Comstock et al. (2010) suggest that marketers should use unique marketplace insights to come up with products or solutions to meet customer needs. BK should not rely on traditional marketing techniques in the age of advanced technology as it will lose its customers to fierce competitors such as McDonald’s that are not afraid to experiment with new technology to improve service delivery. 

Explain whether the company should use this same marketing strategy to grow internationally or into other markets or regions or whether it needs to employ a different one. 

The US fast food market is entirely different from the international market, but this has not stopped American companies from expanding globally. Burger King is located in over 100 countries, and it is in the process of growing further in the global market. According to Zhang et al. (2014), fast food companies such as Burger King succeed in the international market by embracing and engaging with customers in each culture they enter. Burger King cannot afford to use the same marketing strategies applied in the US as the global market will not respond to them (Chen et al., 2018). 

However, Burger King can apply one of the two strategies meant for the local market. There is a need to improve the delivery system as customers across the world are beginning to appreciate the convenience of getting their food from the comfort of their homes. Daszkowski (2018) asserts that fast food delivery services are picking across the globe, for example, customers in India can order a curry pizza while customers in Australia can order a pizza with prawns and expect it to be delivered at the comfort of their home. 

The most important marketing strategy in the international market is customization. Burger King should create menus as per the preferences of the local customers if it wants to attract a loyal customer base in the global market (Miller, 2016). McDonald’s is considered an industry leader locally and globally because it has perfected the art of marketing locally and internationally (Dant et al., 2016). Burger King should be committed to understanding the local culture and local foods and modifying its marketing strategies and processes to meet local needs. 

Applications of Marketing Strategy/ Strategies in a domestic and International Context 

As competitors such as Wendy’s and McDonald’s adopt the futuristic marketing approach of self-serve kiosks in the local market, Burger King has to consider adopting self-serve kiosks if it wants to remain competitive. Self-ordering kiosks enable the customers to be in charge of the entire process of ordering a product without relying on servers. Self-serve kiosks are not only efficient and cost-effective, but they are popular among the young demographic in the US, and Burger King cannot afford to ignore the needs of young customers. The strategy can be marketed in the digital and traditional media to attract new customers. Digital media is a useful marketing tool to fast food chains as seen in the adoption of social media. Burger King should improve its social media strategy to inform, entertain and keep loyal customers. Satell (2013) states that awareness leads to increase in sales. 

In the international market, Burger King should apply the strategy of localization more often. According to Chen et al. (2018) burgers are the main products of Burger King, but it should not be afraid to introduce new and local products to attract customers. For example, in Asia, Burger King can make simple rice dishes to attract customers who do not want to order burgers. Burger King should not limit its menu to the normal products, but it should offer quick and easy dishes outside the normal menu enjoyed by the locals. 

A post by my colleague suggested the use of promotional innovation to improve market share through social media marketing. Social media and the internet, in general, is a crucial marketing tool. American consumers spend approximately four hours a day on social networks; thus, social media marketing will conveniently reach most consumers. In the same post, the colleague suggested social responsiveness to improve market share in a global market. Companies that attempt to address social issues affecting the community are trusted. Social responsiveness may be a smart PR campaign, but it has positive implications for the company’s reputation and profitability. 

Discussion 2 

Consumers consider many factors before deciding to buy a product. Price, referrals, experience, and convenience affect one’s purchasing decision. For example, when making a big purchase such as a house or even a car, the price plays an important role. A buyer with a small budget might choose a Hyundai or Mazda model, in comparison to GMC and Chevrolet which are a bit pricey. Customer experience also affects the purchasing decision. For example, since the vehicle served the user well for ten years, and the user might refer it to individuals looking for a new car. Restaurants, financial services, and IT businesses tend to rely on referrals a lot. Convenience also affects customer decision. Convenience also affects the purchasing decision. In the digital age, companies have leveraged technology to attract customers. For example, Amazon.com is a retailer that provides consumers with access to unlimited brands, comprehensive selection, low prices and delivery. Additionally, a customer might want to buy a more expensive automobile model because it is convenient. One can visit a nearby restaurant for breakfast, not because he/she enjoys the food, but due to convenience. Lastly, the brand affects the purchasing decision (Kaufmann et al., 2016). When buying shoes, consumers consider brands such as Nike, Gucci or Christian Louboutin because they have cemented their status as the best in their respective industries. 

Product brand affects buyer decision significantly. According to Ullah et al. (2011), a brand is an identity attached to a company, product, or service over time. The brand name affected the purchase of shoes in comparison to other brands. Brands such as Nike and Gucci are expensive, customers can get cheaper shoes elsewhere, but they buy them because of the brand. 

A colleague posted a discussion on factors influencing brand selection. In the discussion, he suggested that consumers often choose a brand they recognize. Aside from factors such as price, quality and brand credibility, consumers tend to buy brands they have experience with or they have seen in advertising. When buying brands that they have not used before; consumers rely on physical characteristics of the product, adverts or the opinion of others that have used the product. From the colleague’s post, I learned the importance of brand awareness and the role of advertising in reaching new customers. When buying a new vehicle, I will go for reliable models I have seen my friends use or in an advertisement. I will not buy a brand that I have never seen in use because I have no idea what the brand is about. 

References 

Chen, W., Ping, L., & Liu, P. (2013). Product localization in the fast food industry. Innovative Marketing, 9 (1), 1-13. 

Comstock, B., Gulati, R., & Liguori, S. (2010). Unleashing the power of marketing.  Harvard Business Review ,  88 (10), 90-98. 

Dant, R. P., Jin (Jean) Jeon, H., Mumdziev, N., & Windsperger, J. (2016). A cross-national comparison of brand perceptions of global franchise chains in the BRICS.  Journal of Marketing Channels ,  23 (4), 196-216. 

Daszkowski, D. (2018, May 15). The Expansion of American Fast Food Franchises. The Balance. Retrieved from: https://www.thebalancesmb.com/how-american-fast-food- franchises-expanded-abroad-1350955 

Gayle, P. G., & Luo, Z. (2015). Choosing between Order ‐ of ‐ Entry Assumptions in Empirical Entry Models: Evidence from Competition between Burger King and McDonald's Restaurant Outlets.  The Journal of Industrial Economics ,  63 (1), 129-151. 

Kaufmann, H. R., Petrovici, D. A., Gonçalves Filho, C., & Ayres, A. (2016). Identifying moderators of brand attachment for driving customer purchase intention of original vs counterfeits of luxury brands.  Journal of Business Research ,  69 (12), 5735-5747. 

Miller, C. (2016). An Analysis of the International Expansion of Burger King. Murray State University. 

Satell, G. (2013, Apr. 16). 4 Principles of Marketing Strategy in the Digital Age. Forbes. Retrieved from: https://www.forbes.com/sites/gregsatell/2013/04/16/4-principles-of- marketing-strategy-in-the-digital-age/#62f4715b6267 

Shen, Q., & Xiao, P. (2014). McDonald's and KFC in China: Competitors or Companions?  Marketing Science ,  33 (2), 287-307. 

Treffis Team. (2017, Sept. 20). McDonald’s Vs. Burger King: A Closer Look At Two Burger Giants. Nasdaq . Retrieved from: https://www.nasdaq.com/article/mcdonalds-vs-burger- king-a-closer-look-at-two-burger-giants-cm848492 

Ullah, M. M., Jan, M. F., & Jan, M. F. (2011). Elements Of Brand Salience And Its Impacts On Buying Behavior And Sales.  Abasyn University Journal of Social Sciences ,  4 (2). 

Zhang, M., Wu, W., Yao, L., Bai, Y., & Xiong, G. (2014). Transnational practices in urban China: Spatiality and localization of western fast food chains.  Habitat International ,  43 , 22-31.