Sample On Global marketing strategy
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Global marketing strategyis a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage”. Main aim of forming this report is to clarify the term “Global Marketing Strategy” and the strategy that can be used to enter into new market with existing product. Global marketing strategy basically means to increase the sales of the company through market development, which can be achieved with the help of optimally using the available resources of the company (Bradley, 2005). It is basically putting different tools in action to promote the sales and demand of the product in the new market. Various tools that are being used to develop new market by looking after condition, they are market segmentation, target market and SWOT analysis, Pestle analysis and Porter analysis, this all are being used for marketing assignment help the product globally (Egan, 2008).
For conducting this research, researcher has undertaken Burger king (BK) a giant chain of fast food operating in many countries. This report will discuss a detailed overview of chosen company; their product line that they are serving to their potential customer, most importantly this report will discuss that how Burger king can enter into new market (Asia-pacific) with their existing product line by applying different strategy (Fire, 2013). Number of analysis will be conducted that will help Burger king to explore new market for their products. At last a conclusion will be drawn out which will provide an essence of this study.
Among all the giant fast food chain of the world, Burger king is one of the leading and dominating fast food chain. They are engaged in the fast food eating products. This fast food chain was founded in the year 1954 on s date of 4th Dec in Miami Florida, United states. Two persons are backed behind the development of this organization named as David Edgerton and James McLamore (Heinen, 2006). As said above that this is one of the biggest chain to witness this statement researcher have found that this chain stands as a second largest fast food hamburger chain in the world. it is having 12000 restaurants worldwide, this 12000 restaurant are being spreader through franchise (90%) and corporate (10%). Unique selling preposition of Burger king is lots of burger varieties and the slogan that they use to place their products in the customer mind all around the world is “Have it your way” (Hird and Gilligan, 2012). This slogan is so customized and shows that they are completely customer oriented. This slogan let Burger king to differentiate with their fast food competitor like BK, Pizza Hut, Dominoes, McDonald's, Subway, Smokin Joes, TacoBell and Papa John's Pizza. Burger king is not only serving people through their products and services but also providing mass employment to people and helping them to increase their standard of living. From the research, researcher has found that around 34, 248 employments have been rendered to people by Burger king during 2011 (Ison and Griffiths, 2001). Financial condition of this organization is not so strong and not weak as well. They have the potential to continue their operation on the ground of its strong customer base that they still posses. Financial condition is shared below:
From the above table it is being cleared that from the year 2009 to 2011 Burger king has change dramatically in the field of revenue, net income, assets, liabilities and shareholder equity. Revenue as compare to 2009 was not to low in 2011, they are still in race in this industry, income was fair enough, assets are being increased from last year along with that liability and shareholder equity increases at the same time. This was about the financial condition of Burger king now to talk about the vision and mission statement of this organization, from the research it is being found that Burger king stated their vision that they wants to serve proudly with their best burger in their business along with that the variety will be real and prepared with authentic food or can say that with freshly food that all customer expected to have. In case of their mission their aim is to prepare and render quick service food so as to full fill their customer needs accurately. Moreover they have also developed their mission to provide a clean environment as compare to their competitor so that custom feel hygienic into their outlets. To get an competitive edge over its customer they are hiring employees with sound knowledge from mid-south and they are on a continuous basis providing growth opportunity to them. This matter on vision and mission statement was words of CEO of Burger king Bernard hees. This is a complete over view of this organization.
The term environment comprises of macro and micro environment in which company analyze deeply in respect of international or other region environment when they plan to enter into new market. It is not as simple to identify the factors that can affects one’s organization product and services by just analyzing the macro environment because the environment keeps on changing is very dynamic (Lowe and Doole, 2008). To assess the possible criteria by using analysis it can be further assess the changes that can be made in future which is again not specific. This analysis provide an in-depth knowledge about the new market, competitor exist in that market, trends prevailing in that market, technology and many more factor can be analyzed. In case of BK, they wants develop new market with their existing product in the region of Asia-pacific, they have also conducted an detailed market research by using PEST analysis (Michaelson, 2004).
PEST analysis is one of the best ways to assess the new market condition. It is used to check the external environment of an organization. It defines organization that how a firm has to perform in new market and what contribution they have to done in that new markets economy and what roles they have to play in favor of society. This analysis includes political, economic, social and technological factor. These factors are described as:
Political: This factor comprises of rules and regulation that are being imposed by the government of the country in which BK wants to step into their foot in the form of new market development. Here the new market is defined as Asia-pacific (Moschandreas, 2000). Rules and regulation are further categorized into elections, employment law, and law related to environment, war, and terrorism and governing body. On this factor, the whole political factor relies and on the other side organization has to comply with such rules and regulation. In case of BK, they wants to enters into the market of Pakistan as well and there the political condition is not so good as attacks and suicide are happening in large number out there. But still they can open up their stores in cities like Karachi where high and tight security is there (Sivagnanam, 2010).
Under this factor rate like inflation and interest rate, taxation, subsidy, growth of country, GDP, unemployment and employment comes. This are considered as spending of government of the country of new region/market where organization wants to enter. In case of BK, they want to enter into the market of Pakistan. This country is again one of the developing countries and had shown a massive improvement from last decade (Swaim, 2011). But the interest rate and inflation rate in Pakistan is very high as compare to other country but people are not at all bothered about it and are indulged in opening restaurant. This can help BK to open up their restaurant and can capture the market over there. This can be proving as an economic growth for their country.
Social factor of PEST comprises of the standard of living that people adopt. It includes age, gender and race. Pakistan is known to be one of the educated countries in the world and the people over there was highly engaged in quality and latest trends in respect of fast food (Andrus and Norvell, 2000). Such priority towards the latest fashion and trend in respect of fast food will definitely prove to be successful for BK in Pakistan.
If BK will concentrate more on their technological factor in the new market i.e. Pakistan will definitely provide them a edge over their competitor like McDonald, BK and other competitor (Aspelund and et.al. 2007). Investment that they can made on is call center where customer can place the order online, thus will help BK to reduce their staff requirement and boost up the customer services. Technological factor basically are concerned with inventions, research & development and information system.
Now to assess the internal environment of an organization i.e. of BK, SWOT analysis is being used. SWOT analysis is being used to analyze the strength, weakness, opportunity and threat of a chosen organization (Crow, 2013). They are discussed under:
Strength: Burger king is one of the renowned brands in the industry of fast food. It is being known by each and every people all over the world. This provides them a strong customer base. Moreover, they are attracting a particular segment of people rather they are serving to all gender, race, and age and income class people (Genestre and et.al. 2000). This large segment makes them a largest chain in the world and provides them a position of second. They have marked their foot prints in around 76 countries. With this strong chain they are now planning to develop new market opportunity in Pakistan and can successfully able to implement this. So these are the strengths of BK (Greenley, 2000).
They are concentrating mostly in UK and USA, i.e. around 65% of their operations are performed in UK and USA. As said above that 90% operation of BK is done through franchise that shows that they are not taking care of their brand name. There brand name was using by other owner and if they encounter any mistake will directly hinders their goodwill in the market. Meal that they serve to their customer is not as healthy as McDonalds and other fast food chain is providing to customers. Last is that they are in rest in context of marketing their brand, they put less emphasis on marketing their product and services (Hunt and Arnett, 2004).
To capture more customers from the market they can further develop new product or new market. BK well known for House of Whooper so they should mainly focus on whooper virgins.
Competitor of BK is their main threat; they are BK, McDonald and other restaurant. Labor is another major of concern which can affect the BK profit margin. Cost of labor is rising day by day (International Marketing Review, 2011).
Burger king falls engaged themselves in large variety of products. This large variety only let them to stands on a second position in the world in fast food industry. Whooper is known to be the burger king signature products and other then that, they are engaged in following products: Hamburger, French fries, Soft drinks, Milkshakes, Fire grilled burger, chicken, salads, breakfast, BK sticks, Cheese burger, Lean and greens, baked potato, chicken, fish and veggie, BK big fish, Omelet sandwich, Double croisannwich, English muffins, hash browns, French toast sticks, treats, ice cream, Sundae, turnover, Ciniminis, Dutch apple pie, onion rings, Mozzarella sticks and so on. Earlier they were dealing in Big Mac burgers, King Sauce, lettuce, cheese pickles and onions on a three-part sesame seed bun (Products/Services, 2010). This Big Mac is comprised of two beef patties. Moreover the services that are being offered to the customer by Burger king are takeaway in which customer can even pack their food and can take away. Second is home delivery, where customer can order form home and the ordered food can be delivered to home by Burger king. Quick services, they hardly take 3 to 4 minutes in serving their customer order. Last but not the least, customer can place their order online as well and will get there order at home or at any place specified by customer (Marketing strategy, 2009).
AS in this case Burger king wants to develop their market in Pakistan they require information on the grounds of people, their income, country’s economy, political environment, location, convenience, behavior of people, liking and disliking, competitor prevailing in their market, their strategy, their price and so on. These all information if collected by Burger king can become costlier one and also consumes much time and concentration form other area will get blurred or switched (Lado, N. and et.al. 2010). So to collect and manage information about the market of Pakistan, Neilson Research Company will be hired by the organization. This firm is well known for their research and is widely famous organization in the world. They have the record to conduct research of all products of particular firm within one year. Basically marketing information system is a tool that are being used to organize, collect, analyze and communication marketing information. Marketing information system helps to increase transparency which let producers to organization to market their product accordingly. Moreover it also helps in planning out the effective strategy and increase the profit of their venture (Lages and et.al. 2012).
To facilitate the improvement in marketing information system BK has developed the mobile ordering system. BK can now place their information though their mobile phones when even they don’t get the BK location. BK has partnered them with GoMobo programme to target customers in Pakistan as well as in other countries of UK. This order are placed through code and on the next moment customer will get the confirmation text to the same cell that their order will be ready in this and this minute (Linus, 2001). This GoMobo also offers them interactive marketing services to clients, allowing them to distribute opt-in promotions and special of the user service.
Segmentation bifurcate the market in small strata. These strata are geographic, demographic, psychographic and behavioral. Different organization use different strategy for segmentation. Demographic strata define age, gender, life style, references, income etc for targeting customers in the market. Second is geographic where location matters like rural, urban, semi urban (Singh, 2007). In behavioral segmentation manager categorized customers in occasion, usage, loyalty and benefit sought and design their strategy accordingly. In psychographic, family, pre-family, late and dependent comes. In case of BK, they have segmented their market on the basis of demographic strata. It is because they have targeted all age, income, gender, and life style people. This vide range of segmentation makes them more effective in knowing the behavior of different people at the same time and further helps in improvement in their policy as well as in their products and services (Varadarajan, 2010).
Now to discuss about the targeting of BK, Targeting is defined as the process of selecting and matching the appropriate customer that to whom they wish to sell their products, it also helps in deciding the appropriate segment and what products that will be offered to them. Segment that have been described above i.e. demographic strata, out of it BK targeted the all age and gender. Keeping in mind their segment they have develop their product line suiting their market segment (Ansoff's matrix, 2013). In Pakistan, BK have understood their market in respect of age and gender and found that each and every age of people are like to have fast food from the fast food chain.
For entering into the new market there have to have some strategy that can help an organization that will help an organization to perform to make its step into new market. in the same sense burger king is also trying to foot in into Pakistan market and for that the strategy that can be applied are porter five force model (Tsirulnik, 2013). This will be explained in the sense of BK is shared below:
It is a framework for industry analysis and development of business strategies, this theory was developed by Michael E. Porter in 1979. It gives emphasis on evaluation on five major factors that determines the intensity of competition and attractiveness of market. In this regard an analysis of BK porters five force would provide detailed information about its marketing strategies and future strategic plans required to enter into new market.
Threat of Substitute
BK faces a strong competitive force of substitutes from the external market, as there are numerous substitutes available for fast food and many chains are operating in this area like Pizza Hut, McDonalds, and KFC etc. Other than this many kind of microwavable and frozen food are available in the market which can be conveniently prepared in home, this also acts as a major threat for the company.
Threat of New Entrants
It is moderately a strong force for company as several new comers are giving strong competition. There are other well known previously established brands that arealso diversifying its operations with strong brand reputation that poses a threat for BK (Lado, N. and et.al. 2010).
Bargaining Power of Buyers
The threat of buyer’s bargaining power is low due to the fact that fast food consumers are large in number. However, it is possible customers in a group do possess some bargaining power in the market.
Bargaining Power of Suppliers
This force is moderate in fast food industry as the major suppliers are raw material suppliers. They enforce less amount of threat because their position can be backwardly vertical integrated and only those suppliers possess additional power who provide any unique resource or having ability to offer superior quality product at low cost (Salkin, 2009).
Competition Among Existing Players
The environment for fast food market is highly competitive and there are many other local and international chains that offer similar products. There is intense amount of jockeying for market share and sales among existing chains as competitive moves are frequently taken by one or the other player to gain business at the expense of rivals.
Product and services strategies, According to Burger king, they said that they were very eager to enter into the market of Pakistan and also ensure to work with best of their effort to satisfy the needs and wants of customers of Pakistan, so as per their views they said that for them market of chosen region and their customer are very unique for them and they will serve them uniquely. That’s why they have planned to explore their market in Asia pacific region. They will introduce their product in Pakistan market at low price to grab as much attention as they from the side of customers.
Branding strategies, Barding differentiate competitors product with respective organization product. BK says that they go for innovation in their branding after every specific period of time. They are matching need and designs of customer in their products. That’s why they have made a tie up or partnership with GoMobo. In the same way they are also going to provide their new market customer with fresh and organic food products, which meets customer’s life style. That was their commitment to self o serve in the new market.
Pricing strategy: One of the crucial factors to maintain a position in the market of international is to decide a right price or can say affordable price. This can be done by reducing the cost of production, inventory, logistics etc. BK before entering into Asia pacific market, they have considered two pricing factor they are: Demand oriented and Competition Oriented.
Demand oriented: In demand oriented pricing factor, BK will set odd and even pricing strategy, which provide equilibrium between low price and high price. This strategy will attract customer and BK will also came to know that value-seeking customer.
Competition oriented: BK biggest competitor is McDonald. Their extensive presence is also there in the Pakistan market, so to compete them BK will set their price accordingly. To compete them, they will open their outlets in every part of the chosen market, if they go for low price to compete with their competitor, customer may feel that cheap price may means cheap products. So their price should be slightly differing with their competitor (Lages and et.al. 2012).
From the above report it is being concluded that BK wants to enter into Asia pacific region and in that they wants to enter into Pakistan. Out of this statement it is seen that before operating in this new market they have to first analyze in respect of SWOT in that market, strategy to enters into chosen market. Moreover there have to have some branding, pricing and product strategy that can help them to step into new market to perform their operation.
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