Rabu, September 16, 2009

Marketing Observation (an observation of Burger King)


Product

1. Features
When the company began, its menu consisted of hamburgers, French fries, soft drinks, and desserts. Beginning with the Whopper sandwich in 1957, which is BK’s signature item, BK has added its menu by adding various non-beef items like chicken, fish, vegetarian offerings such as salads and meatless sandwiches; a breakfast menu; and non-soft drink beverages such as Icees, juices and bottled waters. As the company expanded both inside and outside the US, it introduced localized versions of its products that appropriate with the regional tastes and cultural or religious beliefs. To increase additional sales, BK will occasionally introduce limited time offers (LTO) of special versions of its products or bring out completely new products intended for either long or short term sales.
2. Advantages
The great thing in Burger King that we can have it our way, as its slogan is Have It Your Way. It means that in Burger King, we can eat burgers according to our tastes. We just ask it to the cashier, whether we want it with extra vegetables, if we like vegetables, or extra cheese, if we love cheese.
Burger King also tries to follow the Indonesian’s tastes that generally love grilled, roasted and spicy food. Even though, rice as the main food in this country is not included in the menu.
According to our observation, the ingredients for the burgers are fresh and tasty. The meat tastes delicious and uniquely different from many other burgers, such “fresh from the oven” meat. It also happens with the flavors, sauce and mayonnaise it used. The vegetables are fresh, which rarely in other burgers and become a huge plus for it.



Price

1. Price of The Product
 Burger King price list
Menu Price**
Whopper 25.000
Whopper with cheese 29.000
Double Whopper 34.000
Whopper JR 39.000
Whopper JR with cheese 14.000
Black Pepper Whopper JR 16.000
BK Doubles Mushroom Swiss 33.000
BK Doubles Black Pepper 25.000
BK Doubles Teriyaki 25.000
BK Singles Mushroom Swiss 20.000
BK Singles Black Pepper 14.000
BK Singles Teriyaki 14.000
Cheeseburger 14.000
Double Cheeseburger 25.000
Beef Burger 11.000
Double Black Pepper Whopper 35.000
Black Pepper Whopper 25.000
Packets:
Whopper + Medium Fries + Medium Coke 35.000
Black Pepper Whopper + Med. Fries + Med. Coke 36.000
BK Fish + Medium Fries + Medium Coke 27.000
* Up-size to large +2.000 (extra large onion rings)
** All prices have been included tax (in Rupiah)
 Mc’Donalds Price List
Menu Price**
Pahe 1 (cheeseburger + med. Fries + med. Coke) 21.000
Pahe 2 (Mc chicken + med. Fries + med. Coke) 22.000
Pahe 3 (Fish burger + med. Fries + med. Coke) 22.000
Pahe 4 (Double Cheeseburger + med. Fries + med. Coke) 24.000
Pahe 5 (Beef Burger + med. Fries + med. Coke) 23.000
Pahe 6 (Nuggets + med. Fries + med. Coke) 22.000
Gourmet Wrap 15.000
Gourmet Wrap + med. Fries + med. Coke 24.000
* +1.000 to up-size coke and fries
** all prices not included tax (in Rupiah)

According to the price lists above, we can see clearly that the prices rate at Burger King and its competitor, McDonalds, are not too far. If we look at the prices at Burger King, obviously we can say that they are a little more expensive than at McDonalds, for just a Burger. But as we observed, the prices at Burger King are reasonable. Why do we say so? As a matter of fact, the contents in the hamburger are comparable with the price. The size of the hamburger is bigger. The meat and bread are thicker and more delicious. The vegetables are fresher. That’s why we call it a reasonable price. It also has included tax, which McDonalds has not.

2. Value Factor
The factors that affect the value of Burger King are status and price as value. As we know, Burger King is a global chain of hamburger fast food restaurant from USA. Burger King has become a big chain of fast food restaurant that makes it famous and well-known in around the world. In Indonesia, Burger King Franchise is PT Sari Burger Indonesia that owned by publicity listed PT Mitra Adiperkasa Tbk, that also had many other global brands like Starbucks, etc. That proved that Burger King is a big franchise restaurant that has a good reputation that makes it become high branded restaurant. Besides the status factors, there is price as value factors. With affordable and competitive price, makes customers feeling worth it to buy burger in Burger King.

3. Price Factor
The first factor that affect Burger King’s price is the cost plus. In every business, any cost will be totaled and added with the profit percentage. It also happens in Burger King, so every price in there had been calculated.
The other factor is the location factor. Burger King is located in Senayan City, Cakrawala Building at Thamrin, Grand Indonesia and soon in Kelapa Gading 5 Mall. Those places are strategic places that support Burger King to reach their target market.
The image of Burger King is also a factor that affects the price. Burger King is a brand from USA that has been established for long time and has a good quality. That’s why it has a good image.

4. Price Negotiation
Burger King has a special offer for their customers by up-size their drinks and French fries by pay extra Rp 2.000,00 and we will get a large onion for extra. Burger King also offers packets that include French fries and soft drink.



Place

1. Form of Distribution
Burger King chooses selective form of distribution. Burger King is located in Senayan City, Cakrawala Building at Thamrin, Grand Indonesia, and soon will be opened at Mall Kelapa Gading 5. We can say it as a selective form because Burger King placed their branch not too far and not to close each other.
Senayan City is a mall that is located in South Jakarta. It is a place with many entertainment facilities, such as department store (Debenhams), cinema, food court and many more. This place is a potential place for Burger King to reach the target market, because it is still new in Jakarta.
Cakrawala Building is located at Thamrin and close with Sarinah, Sabang food centre and Sari Pan Pacific Hotel. Thamrin is a business office area and a strategic place because there are several malls, entertainment places and hotels near it.
Grand Indonesia is a mall that near with Plaza Indonesia. It has a biggest cinema facility, Blitz Megaplex that become a new alternative of an entertainment place.
Mall Kelapa Gading is a big mall that have 4 sections of mall. MKG 1, 2 ,3, and soon MKG 5. Mall Kelapa Gading is a most complete mall in Jakarta especially North Jakarta. It has cinemas, food places, department store, supermarket, and also La Piazza as the outdoor entertainment area.

2. Payment Methods
Based on our observation, Burger King used a cash and carry payment method.



Promotion

1. Promotional Mix
BK has had history of hits and misses in its advertising: During the 1970s, BK introduced a memorable jingle, several well known and parodied slogans such as Have it your way and It takes two hands to hold a Whopper. Starting in the early 1980s and running through approximately 2002, BK hired a series of ad agencies that produced many less than memorable slogans and programs, including its biggest advertising flop Where's Herb? The 1990s saw a highly successful tie-in campaign with Disney's animated films, including the Academy Award nominated Beauty & the Beast and Academy Award winning Toy Story.
Beginning in 2003, BK began to aware that its advertising is almost died. Then it hires the Miami-based advertising agency of Crispin Porter + Bogusky (abbreviated as CP+B). As one of CP+B new advertising strategies, they built the Burger King character, using BK’s 1970s/1980s Burger King Kingdom advertising campaign as a caricatured variation now simply called "the King". Additionally, CP+B created a series of viral web-based advertisements to compliment the various televisions and print promotional campaigns on sites such as MySpace and various BK corporate pages. The funny character of the Burger King inspired an internet member where the King is photo shopped into unusual situations that are either comical or menacing, many times followed with the phrase Where is your God now?. These viral ad campaigns, coupled with other new campaigns and the new product introductions, drew positive and negative attention to BK and helped TPG (Texas Pacific Group) and its partners realize about $367 million in dividends.
As in Indonesia, there are no specific promotions. People get to know about the Burger King in Indonesia from mouth-to-mouth or when they pass the counter. But the press conference in the first counter opening in Senayan City, helps people aware at Burger King. The rest is just from mouth-to-mouth news.

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