SWOT Analysis Targeting

Question: Write an essay on Segmentation, Targeting and Positioning. Answer: 1. Marketing Analysis SWOT analysis: Strength Strong brand name with huge brand loyalty Burger King markets a number of burgers that is in general not obtainable in all other snack food restaurant ("BURGER KING" 2016) Product differentiation strategy is followed to large extent Growth model followed by the company is not capital intensive Strong brand equity in different fast food eatery house Weakness Burger King provides high fat as well as high calorie food products that is not considered to be good especially for the health conscious people Burger King follows the franchise administration Burger King does not publicize and advertise the food products the way its rivals do Burger King has lower competition appeal Opportunity Introduction of the system of home delivery Expansion of business through the opening of new branches as well as outlets in different growing economies that include Indi, China, Malaysia as well as Singapore Business expansion in the Asian market Product upgrading, tailoring the products according to the tastes as well as preference of the consumers across the world ("BURGER KING", 2016) Threat Threat of other eateries Health consciousness among people Rise in the costs of the food costs higher than the normal inflation Scattered nature of the marketing campaign that essentially concentrates on the KING nature of the products Decline in the total market share ("BURGER KING", 2016) Greater concentration in the market of US as well as Canada 2. Description of the segments and groups of customers targeted and positioning Segmentation Variables: Geographic the process of geographic segmentation refers to the division or categorization of the market of the market according to the nations, regions as well as cities (Paliwoda et al., 2012). The geographic segmentation of the Burger King can be carried out using the Tapestry segmentation. Burger King with more than 12,500 stores all over the globe, it is regarded as the most accepted hamburger franchises throughout the world (Allison, 2012). However, more than 27% of the USA populace has accessed the Burger King in the preceding 6 months. Again, not a single area of the nation appears to control the visits, although consumers residing in the mid-west as well as east have a propensity to frequently visit the eatery all together more than individuals staying in the west frequently do ("BURGER KING", 2016). As McDonalds and KFC dominate the entire fast food market of Singapore, Burger King is just after them with a total share of 9.40% of the overall market (Chernev, 2012). However, the market share of McDonalds is 20.60% whereas the market share of KFC in Singapore is 27% (BURGER KING, 2016). Therefore, the geographic segmentation can help in understanding the placement strategy of the product that can help in gaining greater share of the market eventually (Clow Baack 2012). For example, the fast food chain of Burger King divides the market into different segments and perform micromarketing by introducing products like rendang burgers in Singapore as well as Malaysia as the local palates primarily prefers spicy food (BURGER KING. 2016). Demographic The demographic segmentation refers to the division of the market of the company based on the age, size of the household and the lifecycle (Kotler Keller, 2012). Burger King counts the children as well as the youth belonging to the middle as well as the upper class market segments. Psychographics Psychographics segmentation refers to the process of division of the market founded on the social class, changing lifestyles as well as personality of the target consumers (Clow Baack, 2012). The target segments of the Burger King refer to the individual who are willing to avail the hygienic as well as delicious non-customary meal at the eateries. The target group of the consumers of the Burger King counts the children as well as the youth belonging to the middle as well as the upper class market segments. However, the positioning strategy is that the company provides best burgers ("BURGER KING" 2016). Recommendations As for the geographic segmentation, the management of the Burger might take into consideration the regional differences in the different locations in which it operates and modify its products in order to meet up the tastes and preferences of the customers of diverse geographic segments. For example, the Burger Kings have different spicy offerings in the areas of SW. Elaborate market research can also help in understanding the important attributes that the customers belonging to different geographic segments might prefer. For the purpose of demographic segmentation, the company Burger king can also consider elaborate market research on the areas of age, gender, income, ethnicity, life cycle, religion as well as occupation of the population in the segments of the targeted market of Singapore. In addition to this, the management can also consider development of a market product grid and examine the size of the market. The household sizes can also help in modifying many of its offerings. The meal offerings in bulk can be offered in cases where the family sizes are large and distinct family offerings can be designed. The company primarily focuses on the youth and the teenagers and the young adults of Singapore. Therefore, it can proceed further to attract the health conscious consumers who try to avoid the fast food by means of introducing healthy foods such as salads, desserts among many others. The wellness category of food products are growing at a great speed throughout the world and the management ca n design products to tap that market. In particular, the Singapore Government is also active in motivating healthy living and correspondingly the Singaporeans are also becoming increasingly health conscious. The psychographic segmentation of the target market refers to the process of segregating the activities, interests, opinions, values, attitudes as well as lifestyle of the consumers. The aged people are considerably more health conscious and tend to spend less on the fast food. However, the people in the generation Y are adept to using technologies and have grown up with credit cards and are used to the fast pace of life. The company can try to broaden the base of the customers by developing products that appeal to different generations. Apps for the online orders can appeal to the internet savvy youngsters while the availability of the local retail company outlets might help the seniors. In addition to this, the lifestyle of the people also depends on the economy of Singaporean market in which the company operates. The nation faces high rate of inflation that is around 6.5% that in turn affects the purchasing power of the individuals. Therefore, analysis of the lifestyle and attitud e of the consumers can help in framing appropriate marketing strategies. The management of Burger King can explore the idea of segmentation based on the profitability, similarity of needs of different prospective purchasers; assess the difference in needs in different segments. The segmentation process might also include the process of segregating the marketing actions that are required for targeting different segments and broadening the market bases. Therefore, an appropriate segmentation might help the management to gain competitive advantage in the market. A perceptual mapping can also help the management to analyze the competitive position of the company in the market and redesign its strategy for segmentation targeting and positioning. Marketing Mix Description of the current marketing mix activities (4Ps) used by () and chosen product line Food Strategy Burger King operates as a quick service restaurant business focusing on burgers as its main product. The Apart from this, the food strategy of the company sets different organizational outputs to the target segment of the market that comprises of the product lines that includes theBurgers Fish as well as Chicken Salads as well as veggies Different beverages, sweets as well as desserts ("BURGER KING Burgers, Chicken, Salads, Breakfast and Sides", 2016) However, the management of Burger King also has quietly a released a new offering that is a single item, namely, the Burger King Classic grilled dog. Aside from different product, lines of Burger King can offer the alternative of grilled hot dog. Even in the era of great health awareness, the management of the company conceived the idea of launching the hot dog that is essentially a junk item. Therefore, this product serves the need of the classic junk market. The rationale behind launching this hot dog is that the management of the company consider hot dog to be the most traditional fast food that can attract more of the core fast food customers. Pricing Strategy The pricing strategy of Burger King is primarily founded on the companys generic policy of cost leadership that helps in both minimizations of costs as well as prices. However, the primary pricing stratagem of Burger king is to use the market oriented pricing strategy based on the prevailing conditions of the market (Chernev, 2012). However, the secondary policy of pricing of the company is to use the bundle-pricing stratagem whereby customers can purchase value meals as well as kids food at bundle prices and that can be more reasonable than purchasing food items singly. For example, the management of Burger King has also framed the policy of market oriented pricing structure for grilled hot dog in the market of Singapore. Proper procurement of the raw materials and in-housing process of sourcing can help in reducing the overall cost of production. Therefore, the management of Burger King thus by means of cost effective ways of process of production can charge lesser price for the ne wly introduced product that is the grilled hot dog. Promotion Strategy The management of Burger king deploys different tactics for promoting its products through advertisement, sales promotions, personal selling as well as enhanced public relations. Burger King advertises its products online, on television as well as print media (Chernev, 2012). Furthermore, the company Burger King employs sales promotions by way of distribution of different types of coupons as well as supplementary offers all the way through its official website along with mobile applications. The restaurant personnel of the company Burger King also classically uses personal selling to persuade customers to purchase more products. in addition tothis, the company also applies public relation strategy where Burger King McLamore Foundation provides scholarship along with financial support for different educational agenda, thus in effect promotes as well as strengthens the brand name of Burger King. However, for promoting the newly introduced product grilled hot dog that lies primarily in the classic junk segment can be promoted effectively by the innovative promotional strategies keeping in mind the targeted core fast food consumers. Placement Strategy The management of Burger King makes its products available at different restaurants across the world. It has set the strategy of transacting with the customers by distributing its products through restaurants, mobile applications as well as websites for deliveries (Clow Baack, 2012). Recommendations The company Burger king concentrates more on the market of US and Canada although it operates in 65 nations and this concentration of operations has increased the exposure of the company to different adverse local facets that includes unfavorable economic conditions, alterations in regulations among many others. Therefore, the company can decrease the concentrated operation in the markets of US and Canada and explore the Asian markets for potential expansion. Again, the company can development its products that primarily features six different items and cater to the needs of the health conscious people as well. Furthermore, the company can also decrease the number of underperforming retail outlets. Therefore, the analysis of the placement strategy (Place) management of the company can help to reconsider the placement strategy and explore more emerging market for expansion of the market base. In addition to his, the existing outlets of Burger King in Singapore can be revamped with mor e concentration on outlets located in definite areas having higher concentration of kids. The proposed areas of placement can be Yishun Central, Tampines Central, West Coast Park and many others. Again, the management can enhance the promotion strategy by introducing premium toys, push strategy as well as distribution of coupons. The promotional program can use banners, road shows among many others. The banners outside the outlets can generate awareness among the consumers. A road show around Singapore especially in the shopping mall zone or else the MRT stations at a stretch for two or three months can also develop the promotional programs of the company. The analysis of the food product strategy (product) also reflects the fact that the management of the company can also consider improving the breakfast menu by introducing healthier food options for the health conscious people who try to avoid unhealthy junk food options. . However, the company can maintain the policy of cost lead ership and offer products at affordable prices and apply the secondary pricing policy of bundle pricing for retaining existing market share and for gaining new ones. Based on the above analysis, it can be ascertained that for the future the management of the Burger King can focus more on international operations, expand the process of product differentiation and ensure that the effects of the promotional programs last for a longer period. A study on the branding strategy of Burger King reveals the fact that the management of the company focusing on the international expansions can consider framing a global brand positioning strategy by introducing new designs for packaging that comprises of retooled cups, wrappers, bags as well as containers while keeping the logo intact. Therefore the company might consider revamping the packaging for positioning brand worldwide. References BURGER KING Burgers, Chicken, Salads, Breakfast and Sides. (2016).BURGER KING. Retrieved 4 June 2016, from https://www.bk.com/menu BURGER KING. (2016).BURGER KING. Retrieved 4 June 2016, from https://www.bk.com Chernev, A. (2012).Strategic marketing management. [Chicago, Ill.]: Cerebellum Press. Clow, K. Baack, D. (2012).Cases in marketing management. Thousand Oaks, Calif.: SAGE. Kotler, P. Keller, K. (2012).Marketing management. Upper Saddle River, N.J.: Prentice Hall. Paliwoda, S., Andrews, T., Chen, J. (2012).Marketing management in Asia. New York: Routledge.