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What’s on the menu today? Product differentiation analysis

19 Dec

Let’s talk about product differentiation for McDonald’s, Quick and KFC to show how theses brands make themselves more attractive to existing and new customers.

Competing and defending market share within the fast food market has always been a challenging task and operating within the current environment is even more demanding.

It is difficult to come up with new products, new tastes, and new kind of burgers, which are truly distinctive in the eye of the customer and deliver worthwhile benefits. Moreover, in the fast food industry, the competition is aggressive and McDonald’s, KFC and Quick very often “copy” each other.

We can notice a high level of product differentiation for the three brands.

The Fast Food industry is a monopolistic competition, composed of a relatively large number of sellers and an easy entry and exit in the industry. In fact, the consumer perceives that there are non-price differences among competitor’s products. That is why ideas and innovation are one of the main priorities of these companies.

Brands innovate everywhere they can possibly do: menus sizes, tastes, Bio, Menus for children and so on … Brands also adaptate their product strategy to the cultural and consumption habits of the country.

Interbrand Last classment of Best global brands 2011

6 Dec

Brand Value Interbrand’s definition is « the marginal revenue which results from « the brand attachment » of the consumer, which would accept to pay little bit more for this brand regarding to a comparative offer. It is also a financial value that we can attribute to a brand, which explain its role into the intangibles assets of a company».

The Brand Value is calculated by Interbrand according to the actualization rate of the brand of several financial exercises. This calculation helps Interbrand to measure marketing strategies efficiency, communication expenditures, investments and other important decisions.

Top ten brands :

McDonalds is ranked at the 6th position in the global classment with more than $m35,5

Evolution of the top brands in the restauration chain industry since 2001:

Within the restauration chain brands, the first one is McDonalds which have known a great growth than 2001 (+10k $m), then there is KFC (quite the same amount than 2001). In the last position, there is Burger King which never exceed 5k $m.

Source : http://www.interbrand.com/en/best-global-brands/Best-Global-Brands-2011.aspx

The fast food brands’ little war

6 Dec

The little “war” between fast-food brands worldwide and especially in Europe is now familiar for most countries, between the biggest ones: McDonald’s and Burger King.

In Germany, Mcdonald’s created recently with the help of one of the biggest advertising agency, DDB°, a new TV spot showing a little boy who finally found the solution to eat their McDonald’s fries peacefully:

In USA, Burger King launched in 2008 an advertising campaign against the leader McDonald’s on billboards:

The ad clearly said “Silly Whopper, that’s a Big Mac box,” in order to tell us with the humor way that Burger King’s standard burger (the Whopper) is bigger than McDonald’s biggest burger (the Big Mac).

A real little war is now started… To be continued 😉

Burger King’s coming back in France ?

6 Dec

In October 2010, Burger King created the buzz with an advertising campaign showing the Whopper – the most famous BK’s burger – and saying « A deux pas d’ici » (« 2 minutes from here »). People were thinking about the coming back of BK in France.

Actually it was just a buzz created in relationship with Eurostar, in order to promote train tickets from Paris to London in 2h15.

Few days after, a TV spot related to this print ad, presented the burger as a real TV ad and ending with the journey « Gare du Nord – Saint Pancras, London- Burger King » and the logo of Eurostar company.

Eurostar has succeed to spread the rumor about BK’s coming back in France, and finally create the buzz about themselves and their train tickets offer.

Recently, an information that Buger Kings is willing to be back in France in 2012 appeared on the net. Apparently, we would find again the famous Whopper, onions rings and Pizza burgers only on the motorway rest areas for the moment…

Burger King – Have it your way

6 Dec

Name : Burger King (BK)

    Founder : James McLamore & David Edgerton, 2 students of the School of Hotel Administration,

openned the first restaurant called « Insta Burger King » in Miami, 1954.

    Headquarters : Miami-Dade, Florida

    Best-sellers : Whopper (hamburger)

Key figures :

–       At the end of 2010 : BK has more than 12,200 outlets in 73 countries (66%in USA). N°3 fast-food chain behind McDonald’s and Wendy’s.

–       Net income (Financial year 2010) : US$ 186.8 million

–       About 40 000 employees

 Comments:

Burger king openned its first restaurant in France in 1980 in Paris, Champs-Elysées. BK growth slugged whereas Quick and McDonald’s launched at quite the same time in France grown up and openned new restaurants. BK openned only few restaurants, and no one out of Paris. That is the main reason why they failed on the French market, and closed their 16 restaurants in 1997.

McDonald’s awareness among American Children – Supersize Me (2004)

9 Nov

Amazing experience among American children extract from the movie Supersize Me:

Children can’t recognize Jesus Christ… but Ronald McDonald is a real star !!!

Frightening ?

McDonald’s – I’m loving it!

9 Nov

Hey FF followers,

Now let us give you some details about THE giant of the fast food industry…

Name: McDonald’s

Founder: the two brothers Richard and Maurice McDonald (who created the first burger restaurants) & Ray Kroc (who bought the McDonald’s company)

Founding date: 1955 in the United States; the first McDonald’s opened in France in 1972

Headquarter:  Oak Brook, Illinois, USA

Key figures about McDonald’s restaurants :

  • Present in 119 countries
  • Serving 58 million customers each day
  • Operating 32 737 restaurants worldwide (of which 1 134 are in France)
  • Employing more than 1.5 million people worldwide

Turnover of McDonald’s in 2010 in France: € 3,9 billion (+8% vs 2009)

Comments:

France is the 2nd biggest market for McDonald’s (after the USA).

Growth about +50% for 5 years in France.

Salads represent around 10% of sales, and the best seller is the Big Mac.

And you, are you lovin’ it ?? 🙂