Burger King And KFC In UK

Published Date: 23 Mar 2015

Fast food which is also known as Quick Meal Service restaurant (QMS) is a self explanatory phrase and clearly identifies the changing paradigms of the gastronomical preferences of the present generation. Any form of food that can prepared and served in short span of time comes under the category of fast food. The term "fast food" was recognized in the Merriam-Webster's dictionary way back in 1951 [1] . With rapid growth and transition of British Economy and a fast paced life, along with a burgeoning population in various areas, the traditional eating-houses have given way to glitzy enterprises that cater to the needs of the new age workforce, which could be culturally diverse but still subscribe to certain basic tenets of Cuisine. This new genre of food habits clearly is a deviation from more traditional methods, both by way of preparation and by the way of service.

According to a market research report on fast food & home-delivery outlets "Market Report Plus 2010" the British fast food takeaway and home delivery market reached a value of £10.13Bn in 2009 an increase of 4.3% compared with 2008, and if coffee shop are included the value of the market clime to £12.71bn in 2009 a growth of 4.7% since 2008.

In today's fast moving world when people have a dearth of time due to hectic work schedules and demanding professional time-frames, such Food Joints become an essential part and parcel of life. Being economical and conveniently situated they have a diverse clientele ranging across verticals like age, culture, regions, religions etc. The further popularity consolidation factor is the fact that they also serve as a meeting point for people, where information can be shared, families reunited and new relationships developed, all in the convenience of the fact the bill will be bearable. The value for money sans the frills also attracts budget oriented customers like Students/Tourists/Business Executives et al., all safe in the comfort of familiarity, regardless of origin and without any worries of the bills that might be tendered.

The Fast Food industry has evolved by making a Global Menu suited to the Local tastes, with compromising on certain essential attributes of the Model viz. Economical viability, ease of production, supply chain management, etc. Businesses have to continually enhance the business model to keep the customer interested in an otherwise limiting framework of options and ranges.

There are two main fundamental to get success in any business model according to the Peter F Drucker, includes the identification of the customers' needs and fulfill them at lowest price. The Customer's perception of a particular brand plays the most significant role in determining the buying behavior, which could determinatively forecast trends based on which future strategies could be evolved. This is especially true in the Fast Food industry because of the almost negligible price differential and the fact that there concentration in the urban landscape is already plateaued. By Understanding the process of the Consumer Perception there is a definitive predictability factor of what the future trends will be in the buying behavior and the inter-relationship between customers and business. But some time there is development of gap between Consumer-Perception and Customer-Satisfaction.

This report shall look into the different marketing strategies adopted by Burger King and KFC to bridge the gap and influence customers buying behavior.

KENTUCKY FRIED CHICKEN

KFC corporation (KFC) which is also known as Kentucky Fried Chicken is a chain of fast food restaurants. There are more then 14000 KFC outlets in more than 80 countries around the world which serve 12 millions customers each day. Its part of the Yum! Brands, Inc., which is based in Louisville, Kentucky and is the world largest restaurant company (NYSE:YUM). [2] KFC was established in mid of 1930s by the Colonel Harland Sanders who bought a motel and café in Corbin, Kentucky. Colonel Sanders was always having passion for cooking food and came up with a new innovative way for the preparation of Chicken in a speedy manner, using a special combination of herbs, spices and cooking methodology which till today is maintained as a Trade Secret by the Company. [3] KFC has created a niche in the mind and heart of their customers by providing a unique and distinctive taste. It's always known for its innovative menu.

Although there was nothing new about chicken Colonel founded the combination of 11 different herbs that make great coating of the chicken. Since the incorporation KFC has evolved through a large number of changes this is due to the fact that KFC ownership was changed time to time from one person to the another. Colonel after foundation of KFC and running it successfully for several years sold off the company to a small group of investors in 1964. Then in 1971 Heublein Inc. purchased KFC then it was acquired by R.J. Reynolds in year 1982. And now since 1986 it is successfully acquired and run by PepsiCo through its Yum! Brands subsidiary, which also runs Taco bell, Pizza hut. In Britain first KFC was opened at Preston in 1965. KFC was the first quick service restaurant in UK at that time much earlier then McDonalds and Burger king.

In United Kingdom total staff of KFC is 8000 and there are around 780 restaurants in UK and Ireland. The annual turn over at UK is over £ 300m.

BURGER KING

Burger King was started by James McLamore and David Edgerton in 1954 in Miami, Florida with a vision to serve people great food at affordable prices and in a hygienic-healthy format with an emphasis on 'instant delivery' [4] . The fast- food resturent chain was open with a simple concept to provide its customers a cheap costing food that can be prepared in quick time. The target audience of Burger King initially was poor war infected people. And now the Burger King owns a chain of more then 12000 restaurants around the globe. Its presented in around 73 countries and about 11,000 employees work for it now

The company began as a Jacksonville, florida-based restaurant chain in 1953 and it was known at that time as Insta-Burger King. The company burger king was established by McLamore and David Edgerton in year 1954. [5] The company started with a simple concept of providing cheap food to post war people which can be easily and quickly prepared. Then in the year 1957 the Whopper (sandwich) was launched. It was prepared by McLamore and is now one of the signature product of Burger King.

The McLamore and David Edgerton tried to provide a special edge to the company by providing dining room. They were the first to do so in fast food industry, they also kept their price low in comparison to the McDonalds, their chief competitor, which was growing with a vary rapid speed.

In 1959 company undergoes expansion through franchising. In year 1967 McLamore and David Edgerton sold Burger King to prepared food giant Pillsbury. Then in 1977 Donald Smith was hired to restructure the firms franchise system. In the year 1989 Grand Metropolitan and his successor Diageo acquires Burger king From Pillsbury for approx. $5.7 billions. But Diageo was not able to give proper attention to the company and due to this neglect the company had to face major losses and many major franchises were driven out of business and its total value was significantly decreased.

After several rounds of acquisitions the company was finally purchased by 3G Capital in 2010 for an estimated $3.3 Bn @ of $24.00 for an aggregate shareholding representing approximately 93.8% of the outstanding shares of the Company. [6] 

SIGNIFICANCE OF THE STUDY

The customer are the only king in the today's fast competitive business environment and if the customers are happy and are willing to purchase again and again from the company then only the company can grow and lead the market as after all what ever the company does for its for the sake of making its customer happy. And it's the customer buying behavior that at the end define how successful is the branding advertisement promotion and pricing strategy of the company.

A business' ability to create and maintain consumers is directly dependent upon its ability to innovate its service and products. In order to maintain and increase its market share company must outthink and out-product its competitors not only in terms of the selection of the product and services that it offers but also in terms of its process. In essence, all companies must continually strive to discover how they can better satisfy the needs and wants of consumers.

The purpose of the organization is centered on the consumer, discovering who your consumer is vital.( Peter F. Drucker). So it has become for most important for every company to study to buying behavior of the customer.

In today's fast moving world where there is a so huge competition its top most important to understand the needs and wants of customers. Businesses and top most executive have to understand the needs of the consumers. There are only two main fundamental to get success in the business according to the Peter F Drucker identify the customers needs and full fill them at a low price. So its vary important to understand and develop the concept of buying behavior so that one can get insight of the trends and the buying needs of theirs. Understanding the customers buying behavior one can prolong the inter relationship between customers and business. But some time exist a gap between customer's perception and customer expectations. So it would be interesting to know the ideal behavior of the customer and how does it changes with change in the company.

The research can be vary fruitful for both Burger king and KFC in order to increase their market share and to increase their customer bases moreover it will also help them to with stand the intense and ever increasing competition of the market.

AIM AND OBJECTIVE OF THE RESEARCH

The core aim of this research work is to analyse and understand the customer buying behavior in United Kingdom market with the reference to the Fast Food industry. What are the customer preference what they like and dislike and what are the factors and who are the persons which help them to go for the particular type of the buying.

The one aim of this research is also study the different strategy adopted by Burger King and KFC and their respective effect on the buying behavior of the customers.

KEY OBJECTIVE

The main objective of this study is to evaluate KFC and Burger king customers satisfaction strategy. And to evaluate the consumer behavior and their preference of fast food outlets based on their perceptions and how these companies satisfy its customer. To study the four P's [7] of marketing for these companies and how they use it for the fulfillment of the Companies' need to project themselves before the customers. The core aim of the research is to know what makes and motivate customer to buy certain item with reference of the fast food. Their different motives and factors that make them to go for that kind of research and to understand the trends of customer buying behavior.

The zest of this research is to know what make the customer buy a particular type of product over the other and what are the different factors that influence him in making such decisions. And how does companies use their marketing strategies to attract more and more customer towards them.

SUB OBJECTIVE

Identify the key factors that influence purchasing of fast food items: what are the different factors, conditions, people and motivation factors that make a customer to go for the certain kind of buying. Basically what makes them to give preference to one company over the others. More importantly how two different companies despite of the fact they have a same nitch market how they target and position there customer differently. With this research we will try to establish what are the different key influencer in the different age group that influence buying of fast food and their respective impacts on the decision making.

To find out different factors that influence in consumers fast food buying behavior: the second objective is to find out the different factors like sociological economical environmental that make a customer to make such kind of the research. There are many factors that are related to the response of the customers like the present trends its peer group etc., so our second objective is to know about them.

To identify the changes required to be made in order to full fill consumer needs: what the company should do in order to satisfied consumer better and fulfill there ever changing needs. This is our third objective as all companies are for making profit so how due to providing and fulfilling the needs according to buying behavior of the customer what company should do.

Study of marketing strategy of the KFC and Burger King: what are the different marketing strategies adopted by both this company in order to maintain there customer and to influence their buying behavior.

RESEARCH PROBLEM

On the bases of the previous literature review and the research objectives of the work following research questions has been developed in order to fulfill the research objective:

What are the marketing mix strategy adopted by KFC and Burger King?

What are the Different factors that affect consumer perception?

What are differences which have been found the both brand name position of the market?

What is factors influence for people preferring Burger king more?

How KFC can out perform its rivals in UK?

STRUCTURE OF THE DISSERTATION

This dissertation is dived into six chapters. A brief description of these chapters is given below:

CHAPTERIZATION

Chapter 1: INTRODUCTION.

This chapter includes the introduction of the UKs fast food industry, a brief introduction about the KFC and the Burger King, the main objective and Aim of the research.

This chapter also tries to explain the importance or the Significance of the research. Its also discuss the main research problem in this chapter.

Chapter 2: LITERATURE REVIEW.

This chapter talks about the previous work done in this field. Certain other terms and their definition like consumer perception, consumer decision making, consumer buying behavior and the factors affecting it are discuss in this chapter.

Chapter 3: RESEARCH METHODOLOGY.

This chapter entails and deals with the description of research methodology involved in this study. Research strategy, methods and context of study, sample design sample distribution and selection are some of the important features of this chapter.

Chapter 4: FINDING.

This chapter deals with the finding of the participant's responses. This chapter deals with the responses that we get from the chapter three. They are analysis using different technique of market research and are summarized in the forms of table and graphs.

Chapter 5: DISCUSSION.

This chapter shows the finding of the reports with the respect to the literature review. Previous studies presented in literature review are compared to that of chapter four. Then our two hypotheses are checked and conclusion is drawn that where they are true and relevance or not.

Chapter 6: CONCLUSION AND RECOMMENDATIONS.

In this chapter there is final conclusion of the research. In which different recommendation are given.