Burger King in South-Africa

Résumé du document

Burger King was established in 1954 in Miami, Florida, by James McLamore and David Edgerton. They were among the pioneers of fast food. The Whopper , launched in 1957, was an instant success, and is today the emblem of the brand. Burger King quickly distinguished itself by its unique taste and formula, which allows the buyer to order the burger according to his own preferences. Soon, the founders saw beyond their borders, and thought about installing restaurants abroad, including in Canada, which would become one of the main opportunities for the company. The first Hamburger with soy was launched in this new country. Furthermore BK, tested new concepts in this country, and launched a new design, that of the playground.
In 1963 the first franchised restaurant opened its doors in Puerto Rico and in 1969 in Windsor, Ontario. The Whopper then made its appearance in Canada. The brand was sold in 1989, to the British group Grand Metropolitan. The chain owned up to thirty-nine restaurants in France, mostly Paris and the surrounding region (sixteen institutions), but is also present in the Southwest. Of these sixteen restaurants were owned by the company and twenty-three were part of a network of franchisees. The French restaurants were deemed too unprofitable, and thus closed. The management indicated that the gap between Burger King and its competitors was too large to expect a quick recovery. The group decided to refocus on its European business in England, Germany and Spain. In 2002 Texas Pacific, Bain Capital LLC and Goldman Sachs Capital bought three quarters of the shares for $ 1.5 billion.
The mascot of Burger King is called the King. It is represented as a bearded king wearing royal robes, and a crown. It appears mostly in TV commercials in the United States. The slogan of the brand is "Have it your way". Since 2003, the role has been played by an actor wearing a plastic mask with a joyful expression. It gained notoriety in the popular American culture because many viewers found the appearance grotesque and frightening. In 2005, the brand decided to tackle the Chinese market by launching a restaurant in Shanghai.
The group's current strategy is to address the emerging cities. According to this strategy, we will now focus on entering a new emerging city, Johannesburg, in South Africa. This city can be considered as an emerging one, because of the football World Cup that is scheduled to take place in South Africa. It involves the entire country, and contributes to its development through the massive investments that had been made. We will present an outline of a marketing strategy on the assumption that I will be the entrepreneur who will be the franchise of Burger King in South Africa.

Extraits

[...] This new design has boosted the turnover and customers felt more intimate. This concept will continue all over the world, for the new restaurants as well, that will be the case for our restaurant. According to the BK website, the modernization increases the sales and the frequentation of the restaurant from 12% to 15%. From now, more than 60 restaurants have this design in cities such as Miami or Shanghai. Apart from the design, the promotion is part of the renovation with advertising hoardings “HOME OF WHOPPER” and “HAVE IT YOUR which means that you have different solutions to eat (bar, table, take away For the originality, BK has created also with the sentence “Have it your a new meal that allows the customers to make their own meal just based on the traditional burger: the Whopper. [...]

[...] Burger King is also making important advertisement campaign with reductions. Each country has its own campaign, with for example in Mexico “Come Como which means eat as a king with a promotion on a meal each day. IV- The target market and the positioning In the fast food industry, the goal is to get as much as possible clients, from the baby to the older people of a country, but it is true that we have to focus one segment to be sure to reach and attract them. [...]

[...] The 10% richest represent 47% of the expenses all over the country but we can imagine that most of rich people are living in or near the huge cities such as Pretoria and Johannesburg. Today in South Africa, there is a democratic regime. This has changed the composition of the population because the middle class black community has evolved to 30% from the last year (between 2006 and 2007). Their life level and their ability to expense have grown very fast. [...]

[...] Burger King is a global company with more than 12000 restaurants all over the world. Most of them are owned by independent franchisees, whose are mostly family companies. The goal of this company is too develop itself as possible. It means that their aim is to be present in most big cities as possible and to take market share to Mac Donald, the international leader of the sector. Burger King has also predicted to open over 350 new restaurants in 2010, according to Les Echos. [...]

[...] Conclusion Burger King, said "Have it your way" the slogan. The introduction of Burger King in South Africa will allow the consumer to have an alternative to make "as he feels" and will push aside Mac Donald's in its monopoly with Wimpy and Nando. The franchising, a means which we chose to develop this business, will allow us to have a security and to benefit from a network already recognized by all. Our experimental restaurant will be a reliable indicator for our future objectives. [...]