Case Study

Life in the Fast Food Chains Race

to Be Number One

Presented By:
Varun Puri
Roll no. A-07
Market leaders in Fast Food Chains

1.Mc Donald’s
2.Burger King
3. Wendy’s
4. Taco Bell
 No. Of Stores Operated
35,000

30,000

25,000

20,000

15,000 30,000

10,000

5,000 11,200
6,335 6,500
0
Mc Donalds Burger King Wendy's Taco's Bell
Stores
 Revenues in 2005
Revenues in 2005 in $ Billion
25

20 20.46

15

10

5
3.78
1.94 1.7
0
Mc Donalds Burger King Wendy's Taco's Bell
 Previously
• Mc Donald’s started $500 billion “I AM LOVIN
IT” campaign.

• Burger King introduced many new dishes in its

menu & armed with an $80 billion budget for
marketing & research.
 Maritz Marketing Research
( Considerations of Americans for Selecting Fast Food chain)

• Convenience of Location
• Quality of Food
• Menu Selection
• Services

• Surprisingly Low Price was not a big

consideration
 International Markets
• Mc Donald’s realized $ 6.74 billion in revenues
from Europe & Asia.

• Burger King emphasized on Japan, Eastern

European market & also entered in China .

• Wendy’s also started operating in other countries

& now they are operating in 50 countries.
Hypothesis derived from the Case

Will Mc Donald’s be able to

sustain its position or not.
 SWOT Analysis of Mc Donald’s
- Strengths

• Brand Equity…world-wide
• 42% of US fast-food hamburger business
• Consistency of food
• Successful items: Fries, Happy Meal, Big Mac,
Egg Mc Muffin.
• Overseas market.
• Balance sheet position.
SWOT Analysis - Weaknesses

• Declining market share

• Weak product development
• Disgruntled franchisees
• Quality and taste of products
• Slowed revenue and income growth
SWOT Analysis - Opportunities

• International expansion
• Only serving 1% of the world’s
population
• Growing dining-out market
 SWOT Analysis - Threats

• Mature/overstored industry
• Strength of competition
• More health-conscious consumers
• Changing demographics
Whose food do Americans really like best?
45% 42%
40%
35% 32% 32%
30%
25%
21% 21%
20% 17%
15%
10%
5%
0%
Mc Donalds Burger King Wendy's

Best Tastng Foot Best Tasting Burgers

 Suggestions for Wendy’s & Burger King
• Emphasize on going overseas.
• Effective Marketing research.
• Consider demand of health conscious people.
• Continuous Product Development .
• Research for knowing customer needs.