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Introduction
Nowadays, the fast-food industry is facing many challenges resulting from consumer preferences and government regulations. Big companies need to consider healthy diet trends, but, at the same time, keep in mind the costs of production. Therefore, the issue of gaining and maintaining competitive advantage becomes especially relevant. In order to achieve it, companies should be aware of how to use all elements of their marketing mix. This paper examines the operations of the prominent fast food market giant, Burger King, in Miami. Firstly, this paper identifies the target audience and the competitive advantage of the company. Then, each element of the marketing mix is reviewed separately.
The Target Audience and Competitive Advantage
It has always been a common fact that the largest part of fast-food consumers consists of young people, and Burger King is not an exception. According to the case study by Florenthal, Awad, Andreopoulos, and Malindretos (2018), Burger King also focuses on the low-income class. In Miami, 25.8% of the population lives in poverty, which is nearly twice as much as the average in the US ( Miami, FL, 2017). Due to this, it seems that Miami is a rather attractive market for Burger King.
In the fast-food industry, it is possible to gain a competitive advantage either by creating a unique product or by achieving the lowest costs. As Gregory (2017) points out, Burger King applies cost leadership through standardization of processes (para. 2). This means that the company tries to benefit from scale economies and defect prevention.
Product Strategy
It is apparent that the main product line of Burger King consists of burgers. The menu of the companys restaurants also includes such items as salads, beverages, and desserts. It is also possible to find ethnic-inspired food options like a taco (Florenthal et al., 2018, p. 157). However, it seems that in ethnically diversified Miami Burger King could try to offer more dishes from Mexican and Latin American cuisine.
Pricing Strategy
Burger King aims to set relatively low prices but at the same time takes into account market conditions. As it was discussed earlier, the primary target audience of Burger King has rather low income, while the company uses the strategy of cost leadership. Consequently, even people from the most inferior classes can buy the companys product. This strategy seems to be the best option for Burger King in Miami since a significant percentage of the citys population has a quite low income.
Place Strategy
Burger King restaurants can be found all over Miami and are easy to reach for people living in different city areas. Even though the company offers online purchases via mobile app or website, it still relies mainly on the physical presence of its restaurants (Greenspan, 2017, para. 3). This may be a minor disadvantage of Burger Kings service since food delivery is becoming more and more popular among consumers. In order to remain competitive, Burger King needs to expand its online facilities.
Promotion Strategy
Burger King uses traditional means of promotion, such as advertising in media and online, sales promotion, and personal selling. However, since Burger Kings electronic apps are not very technologically advanced, the company misses some opportunities for personalized advertising. The world has entered the era of mass customization when the company knows what to offer for each of its clients. Burger King needs to incorporate the latest technologies in its marketing campaigns, so as to meet the demand of the customers.
Conclusion
It was shown that Burger King has a typical target audience and method of competing for the fast-food industry. The overview of the companys marketing mix has revealed that Burger Kings should improve some aspects of its operations in order to keep a large market share in Miami. For this purpose, the company may slightly diversify its product portfolio and implement new technologies for better interaction with the customer.
References
Florenthal, B., Awad, M., Andreopoulos, G.C., & Malindretos, J. (2018). How a Burger King franchise can succeed in a competitive fast food industry. In S.K. Jones & J.S. Kelly (Eds.), The IMC sourcebook: Readings and cases in integrated marketing communications (pp. 149-169). Libertyville, IL: Midwest Marketing Education.
Greenspan, R. (2017). Burger Kings marketing mix (4Ps) analysis.
Gregory, L. (2017). Burger Kings generic & intensive growth strategies.
Miami, FL. (2017).
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