Analysing Communication Policy- McDonald & Burger King

TASK 1

1.1 Overview of selected organization

The two selected organization for this report is McDonald and Burger King.

Overview of McDonald:

It is an American fast food company, founded in the year 1940 as a restaurant operated by Maurice and Richard McDonald. It's headquarter is located in San Bernardino, United States but in 2018 it moved to Chicago. McDonald brothers name their business as a hamburger stand. As of 2017, it is the world's largest restaurant chain by revenue as the firm serve more than 69 millions of customers on daily basis in over 100 countries. The business gained popularity for selling hamburger but later on they also started offering chicken products, breakfast items, french fries, soft drink, milk shakes, desserts, wraps and cheese burgers. With changing needs and taste of customer, McDonald has added some healthier products in its menu such as fish, smoothies, salads and fruits. It's revenue mainly comes from the royalties, fees paid by franchisees, rent. According to the report published by BBC, it has been figure out that the company is the second largest private employer of the world from which 1.5 million people work for franchises (Cerrato, 2011). It is operating in more than 1200 countries all across the globe and serving near about 68 million customers on daily basis. Presently, there are 36,899 restaurants of McDonald running worldwide by employing over 375,000 people. In total there are 31,230 franchised location and 5,669 company owned location. It offer both drive through and counter services with mostly indoor and sometimes outdoor seating. From decades they are maintaining an extensive advertising campaign for seizing the attention of large number of customers. In addition to that, it makes significant use of other promotional tool as well such as television, print media, digital media etc. Television play key role in its advertising strategy (Cho, 2011). The menu of McDonald vary from country to country such as in India they sell burgers, in Germany they sell Beer with its products, in New Zealand they sell meat pies etc.

Overview of Burger King:

Burger King (BK) is an American global chain of hamburger fast food company. It was founded in the year 1953 and headquarter in Florida. It was initially founded as Insta-Burger King but later company undergo major financial crisis and as result two Miami-based franchises purchased the firm and renamed it as “Burger King”. As of 31 December 2017, it is operating in more than 100 countries with over 15,738 outlets. Out of them 47.5% are in United States and among them 99.5% are privately operated and owned by new owners (Eisend and Küster, 2011). The company is having variation in its franchising and it varies from country to country depending upon the region. It deal in selling french fries, desserts, hamburger, milk shakes and soft drink. With the passage of time, the firm keep on adding more items on its menu card so as to attract customer on continuous basis. For example in 1957, it introduce Whooper sandwich, in 1978 they add its speciality sandwich line and later on they start offering mini-muffins and french toast. From the time of its foundation, the company has employed varied advertising program for attracting vast number of customers and raising its sales figures. In-fact they even make slogans according to the product that they are serving. For instance: For Whopper, their slogan is “It takes two hands to handle a Whooper”. The company become the first one to introduce first attack ad in the fast food sector staring Sarah Michelle Gellar. BK was a pioneer in performing its advertising practices (Grunig, 2013). Along with this, it also advertise its product through other effective promotional tools such as social networking sites, advertisement, newspapers, magazines etc. As of 2017, total revenue earned by Burger King is approx. US$4.05 billion. At global level, it mainly operates near about 40 subsidiaries that oversee acquisitions, franchisee operation and financial obligation such as pension.

TASK 2

2.1 Marketing Mix of both companies

Marketing Mix can be define as a combination of factors that is normally undertake by company for achieving its pre-defined marketing objectives within given time frame. Thus, it refers to four broad level of marketing decision namely product, promotion, price and place (Hallin and Mancini, 2011). It is often consider as foundation model in the field of marketing. Discussed below are the marketing mix of McDonald and Burger King.

Marketing Mix of McDonald:

Promotion Element: The elements of marketing mix help McDonald in promoting its product among target customer on vast level. In today's world it is important for every organization to promote its among customer so that they can buy their products and satisfy their needs in an appropriate manner. The main objective of any company is to make maximum profits and this can only be possible if they are able to provide goods and services to final customers. Thus, promotion consider as one of the main function of a company and its needs to properly look out as the entire profitability and revenue of the firm depend upon the manner in which association promote its product in the market place. McDonald's undertake following tactics in it promotional mix such as advertising, direct selling, public relation and sales promotion. It's advertisements are most effective as compared to other promotional tactics. It also uses sales promotion so as to seize the atten

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