MARKETING MANAGEMENT 1

Semester 1
Course Faculty: Dr. Gaurav Bhatt
Group Project: Marketing Mix Comparative Analysis of Select Brands
(FOOD INDUSTRY)

Student Name (Enrollment Number)

Aakash Belani (20BSPHH01C0006)

Smriti Garje (20BSPHH01C1256)

Vibhu Garg (20BSPHH01C1425)

Simran Kapoor (20BSPHH01C1244)

Summi Singh(20BSPHH1C1313)

Brands selected

McDonald’s

Burger king

Wendy’s

Learning Outcomes from this Group Project Task: We can clearly observe that even though all
the three companies are operating in the same industry how varied and different their offerings
are and how they have targeted certain parts of the market with their offerings and products be it
the kids market or the office going segment, each brand has established their own place in the
mind of the consumer while selling the same product with a few changes and modifications to
the core product.

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DECLARATION
We declare that this assignment is our work and we have not copied it from any other student’s work or
from any other source except where due acknowledgement is made.

For Course Instructor’s use only:

Marks Obtained: Max. Marks:​ …………………………

Comments(For Instructor’s use only)

General Observations Suggestions for Improvement

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INDEX
Content table

Sno. Particulars Page Number

1. Why Food industry 4

2. Introduction 5

3. Product Mix 8

4. Price Mix 14

5. Promotion Mix 16

6. Place Mix 19

7. Value Proposition and Positioning Statement 22

8. Segmentation Strategy 24

9. Targeting Strategy 27

10. Points-of-Parity 29

11. Points-of-Differentiation 30

11. Brand USP 34

12. Summary and learning 37

13. conclusion 40

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WHY FOOD INDUSTRY?
Food is an important part of our life, and that’s why it has grown and improved drastically. The
food industry is not just about fast food but also about restaurants at various levels, ethnicity,
food carts and trucks, cafeterias, clubs and even home cooked food. Any time you don’t have
cooked food at home, you are a customer to the food industry. We chose this topic because,
during this pandemic the most missed industry is the food industry.

So here we are talking about the most popular ones among them i.e.

1. McDonald’s

2. Burger king

3. Wendy’s

These 3 labels have one thing common in them, which is : BURGER.

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INTRODUCTION

McDonald's Corporation

McDonald's Corporation is an American fast-food company founded in 1940 was operated by

Richard and Maurice McDonald​, in ​San Bernardino, California​, United States. Initially started as
a restaurant and later turned the company into a franchise by ​Ray Kroc​. He joined the chain in
1954. ​In terms of revenue, it’s the world’s largest chain serving over 69 million customers daily
in over 100 countries. Initially, its headquarters was in ​Oak Brook, Illinois​, but shifted its global
headquarters to ​Chicago​ in June 2018.

Logo used from 1960 Logo used from Nov 18, logo used from 2003

until Nov 18, 1968 1968 until 2003 to 2006

In order to diversify itself while focusing on the core brand, it has started acquiring other chains
since the 1990s. ​The company owned a majority stake in ​Chipotle Mexican Gril​l until October
2006. It owned Donatos ​pizza and also a small share of aroma cafe from 1999 to 2001. On
August 27, 2007, McDonald's sold ​Boston Market to ​Sun Capital Partners​. In 2​012 its monthly
sales showed a sharp decline for the first time in 9 years and again in 2014 its sales dropped it
was even less than the sales in 1997.

To meet the current demands of on-demand delivery it had a tie up with uber eats in 2017 and
doorDash in 2019.

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Burger king

It's an american multinational chain of hamburger ​specializing in flame-broiling. It was founded

in 1953 as ​Insta-Burger King​, a ​Jacksonville, Florida​–based restaurant chain​. In 1954
Insta-burger king ran into financial difficulties then it was purchased by ​David Edgerton and
James McLamore​ and named it as burger king.

Used as watermark used as logo from 1May used as logo from ​May 1

from 1954 to 1957 1969 until April 30, 1994 ​1994​ ​until June 30, 1999

logo used since July 1, 1999

Its headquarters are located in ​5505 Blue Lagoon Drive, ​Miami-Dade County, Florida​, United
States​. It began franchising in 1959 by using regional modal. By the 21st century it has almost
14000 stores in 100 countries. Its signature dish was ​a large hamburger introduced in 1957 when
its competitor Mc donalds was selling small burgers, was called the Whopper.

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The Wendy's Company

It's an american restaurant fast food chain founded in 1969 by Dave thomas by 31st Dec it
became the 3rd largest hamburger fast food chain in the world. Initially its headquarters was
situated ​in ​Columbus, Ohio then moved to ​Dublin, Ohio​, on January 29, 2006. The chain is also
known as square hamburger because of the unique square shape patties.

It changed it logo for the first time in 1983

On 24th april 2018 the company announced a merger with ​Triarc Companies Inc. ​Triarc became
known as Wendy's/Arby's Group, and later as ​The Wendy's Company​.

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PRODUCT MIX

McDonald’s Product Mix

In the 1940s, when McDonald brothers set up their first fast-food business, they had only nine
items. These nine items were hamburgers, cheeseburgers, milkshakes, coffee, and fries. This
short menu was called ‘The Amazing Menu’. They used unique and extraordinary names for
their food items like ‘Tempting Cheeseburger’, ‘Triple Thick Shake’, etc. At first McDonald’s
was a Barbecue themed restaurant and they offered a barbecue styled menu in 1940. Later in
1948, when they revamped their restaurant into a walk-up hamburger stand, they sold four items
on their menu. These were Hamburgers, Cheeseburgers, Potato Chips, and Pie. After one year, in
1949, they started their signature French fries and Triple Thick Milkshakes.

The above image is one of the first menus of McDonald’s which had very few selected items.

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When Ray Kroc purchased all the rights to McDonald’s, he introduced another item in the menu
called the Filet-O-Fish sandwich. He wanted to extend his reach towards the catholic
community. McDonald’s tried to customize their products according to the demographic and
geographic differences in each franchise they opened. From introducing Big Mac in
Pennsylvania to Chicken Maharaja Mac in India, we see how they transition from a simple fast
food restaurant to a multinational food chain around the globe. Along the way, McDonald’s also
faced àmany failures while introducing new products. Some of the disasters include McLobster,
Hula Burger (which was a meatless cheeseburger, instead had pineapple), McDLT, McAfrika,
McLean Deluxe, Onion nuggets, McSpaghetti, McGratin Croquette, and McHotDog. There were
many reasons why all these items failed to gain popularity but one thing is clear, McDonald’s
keeps experimenting and learns from it. Today McDonald’s serves a variety of items like
Chicken burgers which have McChicken, McNuggets, and Hamburgers which include Double
cheeseburger, Triple cheeseburger, Big Mac, Quarter Double. They also sell fish and pork. To
reach a wider range of customers who depend on buying breakfast outside, they started selling
breakfast food items such as McMuffins, Bagels, Breakfast wraps which had Sausage Burrito
and McSkillet. As we saw before McDonald’s focuses on the geographic and demographic
differences of its consumers, they started a concept called All Day Breakfast in Australia,
Canada, Mexico, New Zealand, and the U.S. Another brilliant concept which was introduced to
grab children’s interest in their product was The Happy Meal. This Happy Meal has small fries,
nuggets and a single patty burger or a wrap and a very attractive toy, which was perfect as kids
cannot consume more food and they loved playing with the toy while having their meal. Along
with burgers and wraps, McDonald’s serves siders like French fries, beverages which include
soft drinks, coffee and tea, shakes, and they also have desserts.

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Burger King’s Product Mix

In 1953, the first Burger King was opened and they served Hamburgers, French fries, soft drinks,
and desserts. Later in 1954 after changing its name Burger King introduced the Whopper into its
product line. They have not secured a permanent place for hamburgers on their menus yet. Only
after the competition raised in the market with the invention of the Big Mac sandwich by
McDonald’s, Burger King introduced its Big King sandwich. And they experimented with
hamburgers in 1978 which resulted in the release of the Specialty Sandwich product line. This
helped them serve a sophisticated product that can reach the adults. They also served their core
product with siders but they were not consistently serving them. Burger King’s first chicken
grilled sandwich was introduced after the new product line was launched and they changed the
name of this sandwich several times before settling on the current Grilled sandwich.

When Burger King’s famous whopper was introduced in the market, they wanted to increase the
consumer’s interest in the product, and to do that they tied-up with Microsoft to name their
Whopper as Windows 7 Whopper in Japan. In Europe, Burger King offered a larger version of
the Big King sandwich called Big King XII keeping in mind the demographics of the continent.
Burger King also targeted the upper class of society by offering premium food products. Keeping
in mind the requirement of high quality which comes with the premium good, they introduced
Steakhouse XT, BK Crown Jewels, Angus XT, A.1. Ultimate Cheeseburger. All these premium
burgers required many changes along the way and many had to be discontinued due to less
popularity and other problems.

Burger King also started serving Vegetarian products to target the health-conscious consumer
segment. This helped Burger King to expand its menu to a wider range with the introduction of
BK Veggie, Spicy Bean Burger, and two other products which were very unique. One of them
was The Impossible Burger which aimed at being 100% vegetarian and was served only for a
temporary period. The other product was Mac n’ Cheetos which was introduced as a result of the
Co-Branding of Burger King and Frito Lay snack. It was a combination of Mac n’ Cheese and
Cheetos. Today Burger King has a huge variety of options on its menu. These include burgers,
chicken and fish sandwiches, siders, salads, and veggies. They also offer beverages like sodas,
smoothies, iced tea, juices, milk, water, coffee, and frappes. To target the sweet-toothed
customers, they serve Dutch Apple Pie, Oreo Shake, and Caramel Sundae as deserts.

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Wendy’s Product Mix

Wendy’s first fast-food chain’s menu was offering Hamburgers with Frosty, French fries, soft
drinks, and chili in 1969. They always kept their original products around and made many additions
throughout their journey. They originally made the patties round but later on, decided to make
square patties that resembled that Wendy’s does not cut corners. Wendy’s had a very unique item
on their menu which was Chili. It was rich and meaty and heart-warming and their customers loved
it. Later in 1983, they started serving Chili on top of a baked potato. They served their baked
potatoes with a memorable tagline ‘hot-stuffed’. They also offered a variety of soda flavors as a part
of their beverages. To date, Wendy’s biggest innovation is their squared burgers which helped them
stand out in the fast-food market. Wendy’s took pride in their fresh beef patties and their iconic
chocolate frosty. They also reached health-conscious consumers by introducing the Salad Bar in
1979 which was a great success. This salad was served with Taco Caesar, Deluxe Garden, and
Chicken. They also released Grilled Chicken Sandwich which was lighter and had low calories, for
customers who didn’t want fried chicken. To keep a close relationship with their customers,
Wendy’s introduced a Super Value Menu which was sold every day according to their customer’s
desires. Wendy’s did not sell baked goods until much later in 1995. They offered donuts and coffee
and other freshly baked goods as siders with burgers. Another innovation that made Wendy’s
standout was their Spicy Chicken Sandwich. In 2006, they switched their cooking methods by using
non-hydrogenated cooking oil and they claimed that their French fries and breaded chicken had no
trans-fat. One of the products launched by Wendy’s much later was the vanilla flavor for their

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frosty, entrée salads, cheeseburgers, breakfast menu, and naturally cut fries keeping in mind the
customers who liked textured and tasty fries more than the soggy potato stick

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Comparison

When we look at the timelines of all the three brands, we will notice huge differences when each
brand produced their specific products. McDonald’s focused more on the customization of their
products when they opened franchises in new places. They also included healthy products, food
meals for children, breakfast food items in their menu very early in their journey. But Wendy’s
did not include customization and inclusion of breakfast meals or different flavors for its frosty
until the 2000s. Burger King on the other hand focused more on the quality of their burgers and
targeted higher-class market segments. They also weren’t far behind McDonald’s. Burger King
introduced their health segment with vegetarian food products which gave them a huge
advantage over McDonald’s at that time because McDonald’s still didn’t start their vegetarian
segment. This shows it’s very important to introduce a product at the right time.

McDonald’s has been very successful in opening its franchises world-wide. They made sure to
customize their products according to the demographics of that particular country they opened
their restaurant in. For example, McDonald’s introduced burgers like McMaharaja, McAloo
Tikki Burger according to the desires of Indian customers. They spend a lot of time and money
on research and development. Burger King does not focus much on customization but focused
more on its quality as mentioned before. When they opened franchises in different countries,
they improved their distribution strategies. In Thailand, Burger King offered its customers home
delivery services. They also added a few different siders along-side their main burger. In
Morocco, customers could buy alcoholic drinks with their burgers. In Vietnam, Chicken, Fish,
Beef was served with rice. Burger King always kept its signature burger intact and made changes
in additional items like siders and other meals. Wendy’s changed the quantity served for a given
price in different countries. They also made a few customizations in their products but always
kept their iconic square patties in their burgers.

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PRICE MIX
Taking all the three brands and their prices in one country, we will make a comparative analysis.
The USA is the best country for this analysis as all the three brands have originated from this
country.

McDonald’s offers its cheapest burger at $1.69 which is the hamburger and its most expensive
burger at $8 which is a double quarter pounder with bacon and cheese. The cheapest burger has
250 calories and the expensive burger has 820 calories. McDonald’s still uses frozen patties for
its burgers.

Wendy’s offers its cheapest burger at $1.49 which is the junior hamburger and its most
expensive burger at $8.59 which is the triple bacon jalapeno cheeseburger. The cheapest burger
has 240 calories and the expensive burger contains 1280 calories. Wendy’s never used frozen
beef for their burgers.

Burger King serves its cheapest burgers at $1.89 which is the hamburger and its most expensive
burger at $11.19 which is the Barbeque Bacon Triple Whopper. The cheapest burger here
contains 240 calories and the expensive burger has 1270 calories. Burger King also uses frozen
beef but the only difference is it’s flame-grilled.

Burgers which were expensive had huge differences to those which were cheap. Among all the
three chains, only McDonald’s provided that extra quality for the extra money. Burger King
offered the same hamburger in a bigger size for a larger price amount. Whereas, Wendy’s did
offer a few variations but it lagged in quality. When it comes to cheap burgers, Burger King
offers very good quality and taste at a cheap price of just $1.89. Wendy’s and McDonald’s
lagged in the quality in this section.

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 Let’s look at what all the brands offer at a given amount of price:

BRANDS CHEAPEST EXPENSIVE

PRICE INGREDIENTS QUALITY QUANTITY PRICE INGREDIENTS QUALITY QUANTITY

Toasted regular Dull and Satisfying Fresh Beef ​Juicy, ​Very satisfying
MCDONALD’S $1.69 bun DryThin Need at least $8 2 patties greasy and
​Frozen beef Tasted 2 to fill 2 slices cheese flavourful
patty​ ​Ketchup, beefy and Onion, Pickle,
Pickles, Onions, savory Mustard, Bacon
Mustard

​Sesame seed bun ​Bun and Very 3 patties ​Bun and ​Satisfying
BURGER $1.89 ​Frozen beef Beef had satisfying $11.19 Bacon, Lettuce, Beef was
KING patty good Mayo, Tomatoes, good
flame-grilled quality Ketchup, Onions, ​Good Taste
Ketchup, Pickles, Very good Pickles, BBQ
and Mustard taste sauce, Cheese

Toasted Bun Fluffy Bun Far from Fresh Beef Dry ​Satisfying
WENDYS $1.49 ​Fresh Beef Did not satisfying $8.59 3 patties ​Onions and
​Pickles, Onion, taste fresh Pickles, Bacon, pickles
Ketchup, and no Cheese, Fried added
Mustard flavor Onions, Cheese crunch and
sauce, Jalapeno tart kick
sauce

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PROMOTIONAL MIX

McDonald’s-

McDonalds is one of the leading fast food chains across the globe. Its slogan is “I’ m loving
it”.​They have employed an effective promotional mix strategy for the marketing of its products
and services. The promotional mix strategy used by McDonald’s is advertising and sales
promotion.Advertisements are the most notable among McDonald’s promotion tactics. They use
TV, radio, print media and online media for its advertisements. On the other hand, sales
promotions are used by them to draw more customers to the company’s restaurants.

Occasionally, ​McDonalds uses direct marketing, such as for corporate clientele, local
governments, or community events and parties. In this element of its promotional mix,
McDonald’s Corporation emphasizes advertising as its main approach to promote its
products.​The advertising objective of the company, simply put is to make the consumers aware
of an item, like it and remember it.

McDonald’s core consumer base is built upon children, business personnel and fast-food
lovers.But McDonalds the prime focus is on ​targeting children. In happy meals too which are
targeted at children small toys are given along with the meal. Apart from this, various schemes
for winning prices by way of lucky draws and scratch cards are given when an order is placed on
the various meal combos.

Burger King

Burger King also simply known as BK, is the worldwide chain of restaurants which is located
globally and deals with fast food and hamburgers.Burger King is famous for its creative and

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unique advertising campaigns.Burger king applies various way to markets their products .But
they mainly relies on advertising to promote its products.

Advertisements in print media like newspapers , magazines and hoardings and on TV and
online, In addition, Burger King uses sales promotions in the form of coupons and other offers
through its website and mobile app. The food content is one of its more focused advertising
strategies. Burger King also organises or sponsors different events to reach to more
customers.More discounts application based ordering, distributing discount coupons during the
first visit for the second visit helps to generate the customer base.

The firm’s restaurants typically use personal selling to encourage customers to buy more
products from the menu, such as desserts in addition to what the customer already ordered.

Digital marketing is the latest emerging promotional strategy of Burger King. Customer analytics
helps Burger king to strategize its marketing to reach the targeted customer. Burger King is also
publicizing their products digitally using SME and other techniques to reach mass.

Wendy’s

Wendy’s is one of the leading international hamburger fast food restaurant chains in the world.
Hamburgers are its main product line, Wendy’s offers other product lines to complete customer
experience​.​Wendy’s believes in digital marketing and impactful ​advertising to create a positive
brand image in the ​consumer market. It engages in multiple media platforms at both national and
local levels throughout the year to maintain a balanced promotional ​strategy​.

Wendy’s also believes in online and ​offline marketing .​They actively uses social media tools like
Twitter​, ​YouTube​, ​Facebook and its own website to ​target its potential and loyal customers
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through love song, various videos, and memes.They attracts many young consumers such as
college students, young IT crowd, etc​.​As part of its promotional ​strategy the company has
adopted ​Midnight push plan​ and under it offers food services to crowds after midnight.

Wendy’s has also maintained descriptive taglines like ​"​Quality is our recipe”,​” Now that’s
better” a​ nd its mascot is a phenomenal hit. It actively participates in community activities and in
its various foundations.

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PLACE MIX

McDonald-

Place refers to distribution. Distribution strategies are the ways in which a company gets its
products to its customers. McDonald’s have different distributions strategies in different
countries.This element of the place mix enumerates the venues or locations where products are
offered and where customers can access them easily. Restaurants are the most prominent places
where they distribute products.

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, like 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’ also involves the company’s mobile apps. These virtual places are
where customers can access information about the company’s products and buy the
products​.​Many of the McDonald’s restaurants are open 24 hour a day​. This helps the restaurant
increase its sales and eventually the total revenues.​Furthermore, customers can place their orders
through the website and mobile app. This element supports ​McDonald’s corporate vision and
mission statements​, especially in serving more customers around the world.

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Burger King

Burger King operates in around 100 countries and US territories. As of March 2019, it has
25,809 locations. It has a plan to have more than 40,000 restaurants in the next 8 to 10 years.
This expansion strategy will certainly be met by counter strategies taken by its competitors.

Burger King has a strong supply chain network globally. As headquarters situated in Florida US,
Their all operations are distributed region wise. As the suppliers of burgers, beverages and
desserts are decided by the standards and quality of Burger King.

Burger King’s products are available at its restaurants worldwide.Burger King has set up food
outlets in most of the metros in India as targeting demanding customers. Customers usually walk
into Burger King restaurants to enjoy their meals.

Burger King has the highest number of restaurants in the US. Geographically their higher
presence is in western countries.This component of the Burger King refers to the venue that
firms use to transact with target customers.

Aside from restaurants, Their customers can use Burger King’s mobile app to access coupons for
special offers and freebies. Their Customers can also use the company’s website to place their
orders for home deliveries. In this component Burger King relies mainly on the physical
presence of their restaurants.Burger King has developed physical stores, website ordering and
mobile application for increasing their customers reach for getting orders and increase in its
revenues.

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Wendy’s

The headquarters of Wendy’s are in Dublin, Ohio. They are located in more than 6500 locations
with 330 of the stores are company owned, and rest of them are franchised.Wendy’s completes
most of their transactions in its restaurants.This component identifies the places or venues
through which the firm transacts with its customers.

They have a delivery system also, but in-store customers are the major source of income.The
in-store experience of Wendy’s is premium, They have a well decorated visual merchandise
which displays the products, the ambiance of the restaurants is also quite nice. However they
also occasionally use kiosks, such as those located in malls and venues of special events.

Customers can also place their orders through their website. In addition, Wendy’s allows
consumers to access the menu and special deals through the Wendy’s mobile app.It has an
excellent user-friendly website. So, foods can be ordered online through the site as well as
through mobile apps. This component shows that Wendy’s relies on opening more restaurants to
maximize its growth​.

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VALUE PROPOSITION
A ​Value Proposition refers to the value a company promises to deliver it’s customers. Why
should they choose to buy their product. A value proposition can be presented as a marketing
statement that a company uses to summarize why a consumer should buy their product/services.

​McDonald:

● McDonald's is famous for its value proposition: It serves food of a constant quality,
quickly and consistently across the globe.
● The main customer segments of McDonald’s are families, youngsters, the elderly and the
business people.
● McDonald’s value proposition would include:
➢ convenient locations
➢ comfortable seating and in-store facilities
➢ fast and efficient service
➢ consistent quality menu items
➢ distinct products, such as the Big Mac
➢ good value offering and pricing
➢ a broad range of food choices – suitable for a variety of ages

NOTE: This overall value proposition for McDonald’s would appeal to a

number of different target markets.

For example, a broad range of food choices would appeal to a family. Comfortable
seating and in-store facilities would appeal to somebody who is looking to maybe have a bite to
eat, relax or perhaps socialize.

➔ McDonald’s, in their overall value proposition, have a number of distinctive

benefits over their key competitors – such as, locations, facilities, speed of service
and distinctive products.

Burger king: ​Focus on the price and surprising offers similar to McDonalds only.

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Burger King mission statement is “Offering reasonably priced quality food, served quickly, in
attractive, clean surroundings.” The statement lays a lot of emphasis on the pricing of its foods
and the overall efficiency that the customer enjoys while interacting with the business.

Wendy’s : ​Wendy's core values, including “Quality is our Recipe,” “Do the Right Thing” and
“Give Something Back,” were created by our founder Dave Thomas more than 40 years ago.
They are timeless guideposts for our employees and franchisees. Wendy's mission statement is
“to deliver superior quality products and services for our customers and communities through
leadership, innovation and partnerships.” This mission statement shows the means that the
company uses to achieve high quality aims.

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SEGMENTATION STRATEGY

It is one of the crucial components of marketing strategy. Segmentation involves dividing the
population into various segments according to their characteristics.

Mc Donald’s

Types of segmentation Segmentation criteria

1. Geographic Region

Density

2. Demographic Age

Gender

Life cycle stage

Income

Occupation

3. Behavioral loyalty

Benefits

Personality

User status

4. Psychographic Social class

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 Life style

Mc donald’s has always been a great place for children after hectic school especially on
weekends and holidays. To attract more children they have introduced exciting features like
“Happy meals” that are served with favorite toys of children and along with that they have built a
small playground for them in the restaurant itself along with that it provides a room for kids
birthday party celebration.

Mc donalds respect cultural differences in the US menu consist of more beef burgers but in
India more chicken items in there menu. According to the taste of the people in a particular
region it modifies its menu. It gives the customers a feeling that their culture is respected and a
feeling of blonginess.

Burger King

Burger king uses demographic and geographic segmentation variables in order to cater the
changing taste and preference of the customers globally.

Geographic Segmentation: As geographic factors, Burger King are dividing the customer by
region, they have been located in the USA since 1954. On June 30, 2004, Burger King had 7,976
stores all around in the USA, the local people could just come by their neighborhood to enjoy
their meal.

Demographic Segmentation: As demographic factors, they divide the customer by young male,
kids and family. Burger King Started to use a logo which is a man sitting on a hamburger and
holding a soft drink to represent their company in 1955. In 1960, Burger King transformed their
logo from a man into an animated cartoon character as a kid wearing a crown in their television
advertisements, introducing children to BURGER KING with the famous slogan, “BURGER
KING®, Where Kids Are King!”In order to take the kids as potential customer, Burger King had
to including the parents which pay for the children‘s meal at the same time. Burger King started
the “HAVE IT YOUR WAY®” marketing campaign that revolutionized the fast food industry
by encouraging customers to customize the ingredients of all BK® sandwiches to fit the whole
family member's needs.

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 Psychographic Segmentation: As psychographic factors, Burger King divides the customer by
lower social class and working class, which they will buy their meal in fast food restaurants
quickly and take away their food then they are able to go back to work.

BehavioralSegmentation: As behavioral factors, Burger King divides the customer by benefits by

speed and economy, regular occasion and regular user, a fast food restaurant which offers
affordable food products that can be prepared and served within a short specified amount of time.

WENDY’S

​Wendy’s has developed food choices to target three main market segments:
● Non-Restriction Diet: Customers who do not have any restriction in their diet
● Special Dietary Needs: Customers who “want to look and feel fit” or who “have dietary
restrictions for medical reasons” or who are controlling their weight
● Kids choice: Customer group derived from Non-Restriction Diet customers and Special
Dietary Needs customers.

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TARGETING STRATEGY

Mc Donald’s

However, according to Carol Sagers (McDonald’s Director of US Marketing) the company seeks
specific segments of its target population,and then customises their products to each segment.

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Burger king

The firm now has to evaluate various segments and decide how many and which once to target
burger kings are using concentrated targeting in the case it means concentrated on serving many
needs of a particular customer group. Its advertising agency advised to use the “HAVE IT
YOUR WAY” as the theme and began to experiment with humorous web marketing campaigns
also designed a website which allowed visitors to type in commands that a man dressed like a
chicken executed.

This is targeting the demographic group with young adult market notably among young males
which they do not watch television commercial and suffering on internet all the time they are
willing to try new things the most important thing is they will share the fun news with their
friends and family it can let the campaign became word of mouth and spread it all over the
world. It shows that burger king just targets the segment within the total market.

Wendy’s

It has divided the market in various sections

● Baby Boomers
● Generation X (Ages 25 to 40)
● Generation M (Ages 11 to 24)
● Generation Z (Under Age 10)
1. Baby Boomers: ​they ​are more interested in customizing their orders. The other means
may be in the name, Wendy’s Old Fashion Hamburgers, which suggests that their style is
more like how things used to be done, in terms of freshness and quality.
2. Generation X: it includes young families. For them they have increased in healthy-menu
options for both the young adults and their children even extending location hours to
serve the needs of adults working late.
3. ​Generation M: Mostly between the ages of 10 and 24, mostly includes College Students
and Late Nighters. People in college and in their 20s are the most frequent consumers of
fast food.
a. To better leverage her media dollars amid the media consolidation, Wendy’s in
2002 aggressively pursued cross-platform deals, including the massively
successful Garden Sensations entree salad launch with AOL Time Warner, and
the innovative "Road to Bristol" sports promotion with ESPN
Has also opened locations in colleges and universities. Wendy's has arrived at the University of
Denver.mWendy's launched its new eatery on South University Boulevard and Harvard Avenue
on, Dec. 31, 2004.The location is also only two blocks from fraternity and sorority row. The
pick-up window will remain open until 2 a.m, according to Goins.

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POINTS OF PARITY
Point of parity refers to the similarities or certain standards that every industry has set in their
concerned field. These are industry specific similarities that are shared among businesses. Now
these are the bare minimums that every business in that industry has to abide by to compete in
the market.

All the three competitors that we have considered in this report are in the fast food industry and
the points-of-parity are easily identifiable like fast service is a point of parity that we can see,
you can go to any company’s outlet and you will be served you food within 5 minutes and that is
the most important part of the industry that if you are involved in fast food industry you need to
be fast.

The next point of parity we can observe is the quality of food. The quality of food includes the
buns, patties, veggies and beverages that are available and they have pretty high quality
standards and there were certain issues raised for these fast food chains related to unhealthy and
junk food which forced them to add salads, fruit smoothies and grilled burgers into their menu
and as a result all of them added this to their menus to avoid facing any disadvantage.

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POINTS OF DIFFERENCES
Points of difference are the points that are very unique and different that others and are related to
your products and give you a competitive advantage. These are the points that help your
company to stand out from your competitors.

McDonalds

The most important point of difference for McDonalds is its service time, there is no other fast
food company in the market that can defeat McDonalds in their service time they have adapted a
procedure which is highly efficient and helps them to complete the orders in a very minimal way.

The next point that helps McDonalds to stand out from other fast food chains is the pricing
strategy that they have adopted, if you compare the prices of a burger from McDonalds and
Wendys or Burger King you will observe one thing that the price of McDonalds will always be
less.

​McDonalds

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 ​Burger King

The next most important point of difference is McDonalds Happy meals that are specially
targeted towards the kids segment; this happy meal includes an aerated beverage or a fruit
smoothie, a burger, small French fries or nuggets and a toy. They constantly keep changing and
introducing new toys according to the new movies or character or cartoons to engage the kids.

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Burger King

The point of difference that burger king has over McDonalds and Wendys is that they provide
flame grilled burgers and sandwiches which are really liked by the customers. The flame grilled
method gives a distinct smoky taste to the burger and there are people who prefer that taste.

If we consider other fast food outlets McDonalds or Wendys they don’t sell flame grilled burgers
or sandwiches they provide greasy grilled burgers, Burger King is the only one catering that
segment.

The next point of difference is that every other food outlet provides you an option of either
French fries or nuggets along with your burger, but Burger King introduced onion rings options
along with providing French fries and nuggets. They identified the opportunity that no one else
was offering a product which was required by the people.

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Wendys

The point of difference that we can identify for Wendys is the square shaped burgers, all the
competitors provide circle shaped burgers but Wendys is selling its square shaped burger from
starting.

Wendys is also considered to be a lunch and dinner diner, whereas the other competitors
emphasize on providing a budget friendly meal at any time of day Wendy focuses more on the
lunch and dinner segment of the market.

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USP (Unique Selling Proposition)
We can define USP as the marketing strategy of informing customers how one's own brand or
product is superior to its competitors. It helps the business to stand out in the industry and lets
the customer know that what it is the business offers is different.

McDonalds

McDonalds unique selling proposition was fast food, low prices, consistency and cleanliness.
This is something that has remained constant since the start of McDonalds and till today. The
company was able to identify incredibly well what its customers wanted. Mcdonalds targeted
families, children and business men and women. When McDonalds was started it was not at all
successful and was on the verge of shutting down when a businessman who was passing by the
town waited to have a burger and he was shocked by the speed at which his food was ready and
this led him to explore and understand that what did they do to process an order so fast and after
that it was time for McDonalds to shine. The company started to receive hundreds of customers
in a day everyone who was working and had a lunch break of 20-30 minutes started coming to
McDonalds as they would receive their order within minutes without any compromise in quality
and that was the company's unique selling proposition that they offered fast food at a low price
than any other competitor in the market, less time and no compromises on the quality or taste of
the food. We can see ‘Speedee Service System’ displayed on their fist outlet.

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Burger King

Have it your way and Flame Grilled, this is the unique selling proposition of Burger King, they
are the only fast food company that provides burgers and sandwiches which are directly grilled
on flame and it helps to provide a smoky and distinct flavor than its competitors. They

There was an incident that happened in a Burger King outlet in 1954 which was caused due to
flame grilling. The whole outlet was torched due to it, no one was badly hurt. They took that
incident as an opportunity and started promoting their flame grilled burgers as the home to flame
grilled burgers. They also emphasize the point of having it your way which suggested that you
can have your meal at Burger King the way you want.

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Wendys

The unique selling proposition of Wendys is, The most popular and leader in American fast food
restaurant chain and believes in quality inside and out. Wendys was the first ever fast food chain
in America and they believe that even today the people who wish to eat the original fast food will
come to Wendys. They have a well established image in the minds of consumers that Wendys
was the first ever fast food company. The company believes Quality is their recipe and they are
committed to this till today. The company is also known for its famous chili and their own ice
cream called frosty which is also a great reason for customer attraction.

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TABLE: SUMMARY AND LEARNINGS FROM GROUP PROJECT 1

Concept McDonalds Burger King Wendys

Product Mix Offers a wide variety Focused on the quality Consistency in various
of products and of their products. products and customized
customized them their products later on.
accordingly.

Price Mix Products are priced to Price range targets the Price range targeted a
target the middle and middle and higher higher consumer market
higher class class consumer market. segment.
consumer market. Serves best quality at a
Serves best quality at lower price.
high pricing.

Promotion Mix Strategize advertising Focuses on advertising They believe in impactful

and sales in advertising​ and online and
promotion.Its core newspapers,hoardings, offline marketing​.​ They
consumer base is TV and online.The use social media tools like
built upon children, food content is one of Twitter​,​YouTube​,
business personnel its most focused Facebook​ ​to​ target​ their
and fast-food lovers. advertising strategies. customers.

Place Mix Focus on venues or BK has developed Its in-store experience is

locations.They have physical stores, premium.They complete
different distribution website ordering and most of their transactions
strategies in different mobile applications for in their restaurants.They
countries.Most of its getting orders and have created virtual places
sales revenues are increasing its revenues. as mobile apps
generated by their
restaurants.

Value Proposition Constant quality food Focus on the price and “Quality is our Recipe,”
served the customer surprising offers “Do the Right Thing” and
segment of all age similar to McDonalds “Give Something Back,”
groups and segments. only. showing they are quality
conscious and customer
satisfaction maintains
their customer
satisfaction.

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Segmentation Segmentation criteria Segmentation is
Wendy’s provides
Strategy 1. Geographical dividing the market
innovative and quality
2. Demographic into smaller groups
upscale
al according to a
3. Behavioural criterion like their food in a quick-service
4. Psychological needs, wealth, or setting at close-to fast
locations. Main aim food
while segmenting
consumers is prices for the adult
matching each consumer.
group’s needs and
wants with exact
products.

Targeting Strategy Target market: Target market: Target market:

targeting the Baby Boomers

Kids ( happy meal)
Teanangers demographic group Generation X Generation
Family with young adult M
market Generation Z

Points-of-Parity Provide fast food Provide fast food with Provide fast food with
with good quality, good quality, instant good quality, instant
instant service and service and justified service and justified
justified prices. prices. prices.

Points-of-Differentiat Provide very fast Number of options are Serves square shaped
ion customer service available for the burgers and provides a
along with the lowest customers to choose meal that is more fullfiling
rates and best quality from and also provide than the competitors
in the industry and a different taste from
also has specialized the other competitors.
meals for kids

Positioning Statement Family friendly, low Delivering superior Offering reasonably

cost restaurants with quality products and priced quality food,
a narrow scope for a services for customers quickly served, in
customer base, through leadership attractive and clean
following similar ,innovation and surroundings emphasising
strategies throughout partnerships to achieve pricing and overall
the business high quality aims. efficiency of the business.
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 operations.

Brand USP Fast food, low prices, Have it your way, The oldest fast food chain
consistency and allows the customers to that believes quality is
cleanliness. have the burger the their recipe.
way they like it.

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CONCLUSION

The food industry is one of the fastest-growing industries in the market, and the fast-food chain
has been a major sector of this industry. When an organization starts in the market, it needs to
focus on many different things. Satisfying the consumer is the main goal. While producing the
right product is very important, customizing it is also a key factor in the success of the launch.
Companies need to choose their target market wisely and promote their products accordingly. In
this report, we see how the world’s largest three fast-food chains compete in the market. They
spend a lot on research and development to introduce innovative products. Another important
aspect we notice is that they not only produce premium products but also target the middle class
of society to reach a larger consumer segment. This small step will make a huge impact on the
company. While a company needs that one thing to stand out in the market, it also needs to
provide the basic products necessary to sustain in the market. All three companies have
prospered across the world and have hundreds of franchises.

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