A Comparative Study on

Submitted by
ANIKET KUMAR
URN- 2018-M-18101995
MBA-MAC SEM III
Batch 2018-20

For the subject: Advertising Planning & Implementation

October 2019
 HISTORY OF

We are the world’s largest chain of quick service

restaurants, making a difference to people’s lives across
the globe every day.
Hardcastle Restaurants Pvt. Ltd. (HRPL). has a Master Franchisee relationship with McDonald’s
Corporation USA and has rights to own & operate McDonald’s restaurants in India’s west and south
markets since its inception in 1996.HRPL is a direct subsidiary of Westlife Development Limited
(WDL), a company listed on the Bombay Stock Exchange (BSE: 505533) with a focus on putting up
and operating Quick Service Restaurants (QSR) in India and currently operates McDonald’s through
252 restaurants (as of 31 December 2016) across 34 cities and 10 states in west and south India.

WHAT WE STAND FOR

Good Food
McDonald’s food is made with quality, fresh ingredients, which are sourced, from our local suppliers
in India with whom we have collaborated over 2 decades now. McDonald’s has continuously been
enhancing menu and nutritional choices in response to customers’ needs and nutrition preferences.
We take the well-being of our customers very seriously and we have worked hard on our recipes and
menu choice to reduce fat, salt and sugar.

Good People
Driven by a rich culture that has anchored the company’s position as the world’s leading restaurant
chain, McDonald’s, continual commitment towards its employees and consumers has become a
trademark for its success.

Good Neighbours
Being cherished across the world, we focus our efforts on giving back to the community, as we return
our customer’s loyalty. We take our social responsibilities and our commitment to the society and
ethics seriously.
 COMPETITORS

About
Burger King (BK) is an American multinational chain of hamburger fast food restaurants.
Headquartered in the unincorporated area of Miami-Dade County, Florida, the company was founded
in 1953 as Insta-Burger King, a Jacksonville, Florida–based restaurant chain. After Insta-Burger King
ran into financial difficulties in 1954, its two Miami-based franchisees David Edgerton and James
McLamore purchased the company and renamed it "Burger King". Over the next half-century, the
company would change hands four times, with its third set of owners, a partnership of TPG Capital,
Bain Capital, and Goldman Sachs Capital Partners, taking it public in 2002. In late 2010, 3G Capital
of Brazil acquired a majority stake in the company, in a deal valued at US$3.26 billion. The new
owners promptly initiated a restructuring of the company to reverse its fortunes. 3G, along with
partner Berkshire Hathaway, eventually merged the company with the Canadian-based doughnut
chain Tim Hortons, under the auspices of a new Canadian-based parent company named Restaurant
Brands International.

About
KFC, also known as Kentucky Fried Chicken, is an American fast food restaurant chain
headquartered in Louisville, Kentucky, that specializes in fried chicken. It is the world's second-
largest restaurant chain (as measured by sales) after McDonald's, with 22,621 locations globally in
136 countries as of December 2018.The chain is a subsidiary of Yum! Brands, a restaurant company
that also owns the Pizza Hut, Taco Bell and WingStreet chains. KFC’s Entry in INDIA KFC was the
first fast food multinational to enter INDIA, after the economic liberalization policy of the Indian
Govt. in early 1990s. KFC received permission to open 30 new outlets across the country KFC
opened first fast food outlet in Bangalore in June 1995 by targeting upper middle class population.
PepsiCo planned to open 60 KFC and Pizza Hut outlets in next 7 yrs. in the country
 RETAIL/MARKETING STRATEGY

McDonalds
Re-Engineering the menu: In India, McDonalds thinks according to the customer’s tastes, value
systems, lifestyle, language and perception. Globally McDonalds was famous for its hamburgers,
which are prepared from beef and pork burgers, but most Indian religion does not allow them to
consume beef or pork. So in order to satisfy demand as per Indian preference, McDonalds came up
with chicken, lamb and fish burgers to suit the Indian diet.

The Vegetarian Customer: India has a huge population of vegetarians. To satisfy this customer
demand, the company came up with a completely new menu of vegetarian is items like McVeggie
burger and McAloo Tikki. This separation of vegetarian and non-vegetarian sections is maintained
throughout the various stages.

Burger king
Strong parent company: Restaurants Brand international being the parent company has helped the
Burger King in utilising their capabilities and the infrastructure support, which is helping the
company in achieving its goals and objectives.

Line of business: Burger King generates its revenue through three different businesses:

 Royalties in terms of fees paid by the franchisees as a percentage of total sales made.
 Properties leased out or subleased to franchisees.
 Revenue from the company-owned restaurant outlets.

Intellectual Property Rights: Burger King owns 4600+ Burger King Trademarks and 1000+ domain
name registration around the world.

KFC
Original recipe of fried chicken with secret blend of 11 herbs & spices have been the driving force for
KFC from last 75 years. KFC has a broad menu with many options for customers and now even
Vegetarian food items have been added by KFC, which has helped KFC in increasing its customer
base and sales volume.

Presence in developed & developing nations is helping the company in strategizing its future growth
plans as it is giving them exposure & experience which is essential element in and fast food industry’s
success.
 STORE LAYOUT

McDonalds

Facility layout design: kitchen area veg area non-veg area entrance for employees wash-room service counter 4 service
counter 3 service counter 2 service counter 1 service counter 5 rest – room for employees birth-day party zone que
service dining area lcd tv quick packaging counter Customer entrance & exists door Statute of Ronald OBSERVATION:
The USP of McDonald’s is Quality, Service, Cleanliness & Value.

Burger King

Burger King’s operations management emphasizes efficiency. For example, the company’s kitchen design is as
compact as possible to save space while enabling worker productivity. Thus, Burger King addresses this strategic
decision area through efficient layouts and workflows

KFC

Internal & External layout of KFC outlet is attractive and charming all over the world. Ideal colour schemes, pleasant
lighting outlets, comfortable sitting arrangement, fully trained employees and their proper work division, State of the art
interior beautification, speedy & appropriate cooking process, special club/block for kids, etc. are the chief
characteristic of the KFC layout.

SEGMENTATION - TARGETING – POSITIONING

 McDonalds
Segmentation is the dividing of populations into groups according to certain characteristics.
McDonalds uses these segmentations and segmentation criteria:

 Geographical; region, density.

 Demographical; age, gender, life-cycle stage, income, occupation.
 Behavioural; degrees of loyalty, benefits sought, personality, user status.
 Psychographic; social class, lifestyle.

Targeting implies choosing specific groups identified because of segmentation to sell products. How
does McDonalds select/target the right segments by iterating between understanding corporate fit and
having information about segment size and likely profitability. The company seeks specific segments
of its target population, and then customise or position their products to each segment.

For Positioning, McDonald’s uses adaptive type of product positioning and accordingly, the company
is engaged in periodical re-positioning of products and services according to changes in the segment.
The following is a direct quote from McDonald’s franchise strategy document: “McDonald’s has
made itself to be the family friendly low cost restaurant in the fast food business. We have a narrow
scope for a customer base and a low cost strategy” (McDonalds 2016).

Burger King
Burger King uses demographic and geographic segmentation variables in order to cater the changing
taste & preferences of the consumers globally.

It uses differentiated targeting strategy to address the needs of the customers accordingly.
Most of the fast food chains position themselves on the serviceability & convenience factors and
Burger King is not an exception to this.

KFC
KFC (Kentucky Fried chicken) uses demographic segmentation to serve the market as per the
customer needs & wants. The consumers of KFC are the young as well as young adults.

It used to serve the same menu all around the world, which means that it was using undifferentiated
targeting strategy. However, in recent times, following McDonald’s example, KFC has started
localising its menu, giving it better acceptability in the market. Moreover, it has transformed its
positioning strategy from product based to value based in recent times.

KFC is strongly positioned in the minds of consumers for its Chicken menu. There are very few
outlets, which serve anything in vegetarian. However, when it comes to non-vegetarian, KFC is just
superb. Its chicken wings and chicken bucket is a favourite with everyone. This excellent targeting
technique is the reason that most non-vegetarian lovers flock at KFC.
MARKETING MIX
(PRODUCT, PRICE, PLACE, PROMOTION)
 McDonalds

Product Mix:
As a food service business, McDonald’s has a product mix composed mainly of food and beverage
products. This element of the marketing mix covers the various organizational outputs (goods and
services) that the company provides to its target markets. McDonald’s product mix has the following
main product lines:
 Burgers and sandwiches
 Chicken and fish
 Salads
 Snacks and sides
 Beverages
 Desserts and shakes
 Breakfast/All-day breakfast
 McCafé

Among the 4Ps, products are a fundamental determinant of McDonald’s brand and corporate image.
The company is primarily known for its burgers.

Place/Distribution Marketing Mix:

The main places through which McDonald’s distributes its products are as follows:

 Restaurants
 Kiosks
 McDonald’s mobile apps
 Website and app, and others

McDonald’s restaurants are where the company generates most of its sales revenues. Some of these
restaurants also manage kiosks to sell a limited selection of products, such as sundae and other
desserts. Some kiosks are temporary, as in the cases of kiosks used in professional sports competitions
and other seasonal events. This element of McDonald’s marketing mix also involves the company’s
mobile apps. These virtual places are where customers can access information about the company’s
products and buy these products. The company’s mobile apps for iOS and Android let customers
claim special deals, find restaurant locations, place orders, and pay for such orders involving
participating McDonald’s restaurants. Furthermore, customers can place their orders through the
website and mobile app.

Promotional Mix:

McDonald’s uses the following tactics, arranged according to significance in the business:
  Advertising (most significant)
 Sales promotions
 Public relations
 Direct marketing
Advertisements are the most notable among McDonald’s promotion tactics. The corporation uses TV,
radio, print media and online media for its advertisements. On the other hand, sales promotions are
used to draw more customers to the company’s restaurants. For example, McDonald’s offers discount
coupons and freebies products and product bundles, as a way of attracting more consumers. In
addition, the company’s public relations activities help promote the business to the target market
through goodwill and brand strengthening. For instance, the Ronald McDonald House Charities and
the McDonald’s Global Best of Green environmental program support communities while boosting
the value of the corporate brand. Occasionally, the company uses direct marketing, such as for
corporate clientele, local governments, or community events and parties. In this element of its
marketing mix, McDonald’s Corporation emphasizes advertising as its main approach to promote its
products.

Price Mix:

McDonald’s uses a combination of the following pricing strategies:

 Bundle pricing strategy

 Psychological pricing strategy

In the bundle pricing strategy, McDonald’s offers meals and other product bundles for prices that are
discounted, compared to purchasing each item separately. For example, customers can purchase a
Happy Meal or an Extra Value Meal to optimize cost and product value. On the other hand, in
psychological pricing, the company uses prices that appear significantly more affordable, such as
Rs.149 or Rs.249 instead of rounding it off to the nearest Rupee. This pricing strategy helps
encourage consumers to purchase the company’s products based on perceived affordability. Thus, this
element of McDonald’s marketing mix highlights the importance of bundle pricing and psychological
pricing to encourage customers to buy more products.

Burger King
Product:

Burger King offers the different variety of menu from snacks to meal for different age groups. Burger
King’s menu has a wide offering of burgers, potato fries, beverages and milkshakes etc. Burger King
serves burgers in both veg and nonveg categories. Sides and beverages are value added to Burger
King for burgers consumers. Salad and veggies are introduced considering diet-conscious consumers.

Price:

Burger king follows pricing of Market-oriented pricing strategy and bundles pricing strategy as well.
Burger King has prices comparable to market behaviour and demands. With main competition with
McDonalds, the Burger King has focused more on its better quality and taste with affordable prices.
Operational cost is also one of the important challenges to maintain its cost pricing strategy for Burger
King’s outlets. As Burger King’s value-added meals and beverages are ways to generate more
revenues for Burger King. In revenues, Burger King stands 2nd globally. In India, Burger King is
concern about its prices and Indian consumers are price sensitive. Hence in India, the menu of this
food chain is diversified serving Indian flavours resulting in attracting more Indian customers.

Place:

As the suppliers of burgers, beverages and desserts are decided by the standards and quality of Burger
Kings quality control dept. Burger King has set up food outlets in most of the metros in India as
targeting demanding customers.

Promotion:

Burger king applies various way to markets their products. Advertisements in print media like
newspaper, magazines and hoardings. The food content is among its more focused advertising
strategy of Burger King. Burger King also organises or sponsors different events to reach to more
customers. Offering more value-added menu for the main course during the time of ordering is also
one of the strategies of Burger King. More discounts on application based ordering, distributing
discount coupons during the first visit for the second visit will help to generate the customer base.
Digital marking is now emerging promotional strategy of the brands. Customer analytics helps Burger
king to strategized its marketing to reach the targeted customer.

KFC
Product:

KFC is one of the worlds most popular fast food joint, having a great specialty in burgers. KFC is
synonymous with fried chicken and it challenged the established fast food market of hamburgers. The
original product is pressure fried chicken nuggets flavored with secret seasoning of 11 ingredients.
Other specialties of KFC are Extra Crispy Chicken, home style sides and buttermilk biscuits. In 1990,
KFC expanded its menu and offered other chicken preparations like Chicken Fillet Burgers and
wraps, salads, potato fries, desserts and beverages. KFC has optimized its product offerings as per the
geography and demand. KFC has over 300 different menus as a part of its marketing mix product
strategy across different locations worldwide. In India they have introduced Hot and Crispy Chicken,
Fiery Grilled bucket options, Chicken Zinger Burger, Rice Bowlz.

Price:

The target segment for KFC is families of young people in urban and semi urban location belonging
to upper middle class or middle class. When nit entered the market, the prices were higher which were
gradually reduced later on to target lower income group. The price is also comparable to the
competitors. KFC offers differential pricing. The products are available as individual as well as
bundles or combos. The pricing of bundles is less as compared to combined price of all the products.
It is especially lucrative in price sensitive markets like India.

Place:

Today KFC is present in 125 countries worldwide with over 20,500 outlets, which shows its strong
place strategy in its marketing mix. The locations chosen by KFC are state of the art and are selected
after lot of deliberation.

Promotion:

KFC has a website as well as presence in social networking websites like facebook, Twitter,
Instagram and YouTube. It also has depended on mass media for promotion. The KFC advertisements
appear in print as well as broadcast media. Print media include newspapers, magazines featuring
tempting display of KFC offerings, special offers and prices. It also uses billboards and hoardings on
internal city roads as well as highways for advertisements. It is famous for its taglines like 'Finger
Lickin Good', 'Nobody Does Chicken Like KFC' and 'So Good' and these are always included in the
promotional activities. It was found that KFC commercial is seen at least once a week by 185 million
viewers. In India recently they have introduced 5 in 1 meal box wherein more products are given as
compared to competitors. They launched this activity through Mumbai famous Dabbawallas. Also the
box given through this was capable of providing mobile charging.

WEBSITE SCREENSHOTS
PRINT ADS
McDonalds

Burger King
 KFC

ADVERTISEMENT LINKS
McDonalds:

 https://www.youtube.com/watch?v=fzH5giSK5hM
 https://www.youtube.com/watch?v=hxre9Ra0GTE
 https://www.youtube.com/watch?v=pMLrVP_E-jA (McDonalds ads in different countries)

Burger King:

 https://www.youtube.com/watch?v=_EkwRsx7lpA
 https://www.youtube.com/watch?v=hD1dyKOrI-E

KFC:
 https://www.youtube.com/watch?v=G2TCI5njE94
 https://www.youtube.com/watch?v=2RZBqs22Zzc
 https://www.youtube.com/watch?v=hRvswFS_8M4 (Kitchen Tour)