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Burger king's digital busines

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School
Royal Melbourne Institute of Technology**We aren't endorsed by this school
Course
MKTG 1415
Subject
Marketing
Date
Dec 21, 2024
Pages
24
Uploaded by ChancellorApePerson1315
BURGER KING’SDIGITALBUSINESSHanoi CampusTran Huong Giang S4034566MKTG1420
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I, DIGITAL TRANSFORMATIONRATIONALE: 1, The influence of digital information, informationsystems and the networks on present-day businessesInformation has become a critical asset of all organizationsowing to their rapid adoption of IT (InformationTechnologies) in the entirety of their business activities,which has arisen from the need for the carefulmanagement of the company’s information (Daniel M2012). Digital transformation brings great change, disruptingentire industries, and at the same time, creatingdestructive creativity that helps some businesses grow anddevelop records (FSIVietnam 2023).Digital transformation has become an indispensablestrategy for companies seeking to stay competitive anddrive financial success (Lipi S 2023).(Nguyet M 2022)
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BURGER KING Burger King Corporation, restaurantcompany specializing in flame-broiledfast-food hamburgers. It is the second largest hamburgerchain in the United States, afterMcDonald’s, and one of the mostsuccessful brands in fast-food history.In the early 21st century, Burger Kingclaimed to have about 14,000 stores innearly 100 countries. Headquarters arein Miami, Florida (Robert L 2024). (BurgerKing n.d)
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Burger King - is transforming to a digital business.Digital businesses use technology to create new value in business models, customer experiences andthe internal capabilities that support its core operations (Liferay 2020).Burger King has applied technology to creating new value Business model:1.Shifting from traditional coupons to digital loyalty programs (Jonathan M 2021). Customer Experience: 2.Burger King has a mobile app (BurgerKing n.d) for the ordering and payment. This creates a moreconvenient experience for customers by:+ Streamlining the ordering process+ Personalized offers+ Flexible accessibility 3. Internal capabilities:Scalable digital platform: robust digital platform constructions enables Burger King to:+ Broaden mobile payment acceptance+ Data gathering and analysis3, Burger King decided to be a digital business because they want:Better guest experience (Jordan F 2023).Improves operational efficiency Competitive efficiency in the fast-food industry.
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II, THE DIGITAL BUSINESS AND MARKETING TOOLS:I, Business:1, Burger King’s business scope:Burger King operates as a global fast-food chain serving its signature products, especially burgersand providing a unique dining experience (Daniel P 2023). Expand scope: based on customers demand, to compete with its competitors, diversity its productsoffering. Digital technology: AI technology- analyze market trends, competitor strategies, and customerbehavior to identify opportunities, optimize pricing and develop innovative products and services. 2, The company's business model uses the create, deliver, capture, and defend value template.Create: Convenient and delicious fast-food options (Daniel P 2023)Deliver:+ Deliver value through their channels: mobile app, 24/7 online ordering platform (Daniel P 2023).Capture:+ Through mobile app purchases, delivery fees, physical stores purchases. Defend:+ Digital Defensibility: User-friendly mobile app, integration with popular delivery platforms,leveraging social media for brand advocacy. + Network effects: increase in usage leads to a direct increase in value for other users (Andrew A2019).
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3, The digital ecosystem, including the digital platform: Burger King’s digital ecosystem centers around facilitating transactions between Burger Kingand its customers. Burger King is a proprietary mobile application with functionalities like online ordering,delivery and loyalty programs. According to Burger King business model (Daniel P 2023), it creates mainly Business-to-Consumer (B2C) transactions. Users can browse menus, place orders, pay for food andpotentially schedule deliveries. Advantages for Burger King: Increased convenience: Simplifies ordering and payment, reduces wait times.1.Data collection: Gather valuable customer data on preferences and behavior, enablingtargeted marketing and menu optimization. 2.Streamlined operations: Online ordering reduces staff workload and improves orderaccuracy. 3.Members of the digital ecosystem and their roles:Burger King: Provides the core service (food) and manages the app (promotions, loyaltyprograms)Customers: Use the app to order and pay for food.Delivery service providers: Partners like Grab or Shoppe Food handle deliveries, expandingBurger King’s reach.
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2, Value chain:1, The company’s R&D activities and innovation model:Burger King follows up both closed innovation and user-centric innovationto varying degrees. + Closed innovation: Burger King’s R&D team focuses on developing menuitems, optimizing recipes, and improving food preparation methods. + User-centric innovation: Burger King could gather customer feedback tounderstand customer preferences. Benefits of its innovation:Closed innovation can be faster and more efficient for internaldevelopment or their products.User-centric innovation could help Burger King understand customerdemands to expand their market. Disadvantages of its innovation:Closed innovation can lead to a lack of development ideas.
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2, Emerging Technologies and Tools:Data analytics: Analyzing sales data and customer behavior to optimize menus,pricing and promotions.AI technology: Used for personalized recommendations on the mobile app or tostreamline operations in kitchens. => They focus on automation and efficiency + data-driven decision-making. 3, Burger King’s omnichannel strategy and omnichannel customer journey:Burger King developing their omnichannel strategy with elements like: Mobile app: Facilities online ordering, delivery, loyalty programs.Self-Service kiosks: In-store ordering option that complements the mobile app. Social media: Engaging customers on a platforms like Facebook or Instagram. Omnichannel customer journey:1. Customers see Burger King advertisements on social media. 2. They download the Burger King app and browse the menu.3. Orders food through the app for pick-up at the restaurant or delivery. 4. Earns loyalty points through the app and receives personalized promotions.
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3, Customers:1, The customer acquisition strategy:Burger King’s customer acquisition strategy focuses on attracting a broad audienceseeking value, convenience, and a flame-grilled fast-food experience.Target market segments:Value-conscious consumers: Appealing to those seeking affordable meals throughoffers, combo deals, and value menus.Convenience seekers: Targeting busy individuals and families with mobile ordering,delivery options, and self-service kiosks.Millennials seekers and young generation: Engaging these markets with a strongmobile presence, social media engagement. Reaching target segments: Marketing channels:Digital marketing: Utilizes social media advertising, influencer marketing, online ads.Mobile app promotions: Offers exclusive deals and rewards within the app toincentives downloads and usage.Traditional media: Utilize targeted commercials and potentially leverage billboardplacements.
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Differentiation Strategies:Value proposition: Competing on price through promotional offers and value meals.Product innovation: Introduce menu items like plant-based burgers or unique menusto stand out from competitors. Technological innovation: Mobile app, self-service kiosks and AI.Promotional tactics: Limited-time offers: Create excitement with limited-edition menu items or specialdiscounts (BurgerKing n.d).Social media contest: Run interactive contests on platforms like Instagram, Facebook togenerate buzz and engagement.Celebrity partnerships: Collaborate with celebrities or popular figures to attractattention. Eg: Past partnerships with rapper Nelly (Moyo A 2021).Partnerships and Collaborations: Delivery service providers: Partnering with Grab, Uber Eats,... expands Burger King’sreach to delivery-focused customers.Gaming tournaments: Collaborations with gaming platforms can attract youngerdemographics. Eg: Burger King with Call of Duty ( John G 2022).
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2. Customer engagement strategy:Personalized and Seamless experience:Mobile app: Provides a central hub for ordering, loyalty programs, andpersonalized recommendations based on purchase history.Omnichannel integration: Ensure a consistent brand experience acrossapp, website, social media and physical restaurants.Fostering customer loyalty:Loyalty programs: Reward repeat customers with points, discounts, andexclusive offers through the app (BurgerKing n.d).Targeted promotions: Leverage app data to send personalized deals andrecommendations based on preferences. Social media recognition: Engage with customers on social media,acknowledging positive feedback and addressing concerns (Burger King2023).
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Communication and Relationship building: Two-way communication: Respond to customer inquiries and feedback on socialmedia or through the app, fostering a sense of connection.Community building: Host online contests and giveaways to encourageinteraction and brand advocacy.Customer engagement initiatives: Loyalty programs, social media interactionswith contest and respons, targeted content through app recommendations andsocial media ads. Leveraging customer feedback: Feedback mechanisms: Conduct surveys through the app or social media togather customer feedback and suggestions. Data analysis: Analyze customer purchase behavior and app usage data toidentify trends and areas for improvement.Menu optimization: Use customer feedback to refine menu offerings andintroduce new items that cater to customer preferences.
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Opportunities for improvements: Personalization depth: While Burger King utilizes somes personalization, theycould delve deeper by tailoring recommendations and promotions to individualcustomer profiles.Omnichannel feedback integration: Streamlining feedback collection acrosschannels (app, social media, in-store) can provide a more holistic view ofcustomer needs. (BurgerKing n.d)
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3, Burger King measure the effectiveness of its customer acquisition andengagement:Customer acquisition KPIs:Mobile app downloads: Measures app adoption, a key acquisition channel.Website traffic and source analysis: Identifies effective acquisition channelsthrough website visitor data.Social media growth : Tracks follower growth and interaction on social mediaplatforms. CPA (Cost per acquisition): Tracks marketing spend efficiency in acquiring newcustomers. Tracking customer behavior and engagement:(CRM) Customer relationship management systems: Centralized customer datafrom app usage, loyalty programs and online interactions.Web analytics tools: Tracking website visitors behavior (clicks, pages viewed)to understand customer journeys.
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Customer satisfaction and Loyalty metrics:App user engagement: Monitor app usage frequency, features used, loyaltyprograms participation.Repeat purchase rates: Tracking how often customers return, indicatingloyalty.Customer data management tools:In-app surveys and messaging.Data warehouse: Store large volumes of customer data for analysis andreporting.Aligning KPIs with business goals:Define business goals like boost online sales, increase loyalty programsparticipation. Track and analyze KPIs to measure progress towards business objectives.
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III, Digital Strategy and Transformation Evaluation:Burger King's digital strategy have both strengths and weaknesses in its approach tocustomer acquisition and engagement and its also impact the overall performanceand potential of the business:Strengths:Omnichannel presence: Burger King offers a mobile app, online ordering, andsocial media engagement, catering to diverse customer preferences. Data collection and targeting: Leveraging customer data through the app allowsfor targeted marketing and potentially improved menu optimization. => Impact : Positive customer experience and drive sales. Data collection allows fortargeted marketing.(BurgerKing n.d)
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Weaknesses:Data privacy concerns: Balancing personalization and data privacy iscrucial to avoid customer discomfort.Uncertain open innovation: Limited evidence of Burger King activelyseeking external partnerships or crowdsourcing ideas. => Impact: Data privacy concerns if not addressed effectively coulderode customer trust and brand loyalty. Limited open innovation couldrestrict the flow of ideas and hinder long-term growth.
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IV, Strategic Insights andRecommendations1, Key finding and insight from Burger King’s digital business:Omnichannel strategy: Burger King offers a decent omni channelpresence (app, online ordering,...)Customer data: They leverage customer data for targeted marketing.Customer engagement: Loyalty programs and social media are positivesteps, but a more holistic approach is needed.Innovation: Burger King primarily relies on closed innovation,potentially limiting the flow of ideas.Data privacy: Balancing personalization with data privacy is critical.
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2, Opportunities:Open innovation partnerships: Collaborating with tech companies orstartups through crowdsourcing can unlock a wealth of creative ideas andaccelerate digital innovation.Data-driven decision makings: Advanced data analytics can unearthvaluable insights from customer behavior, leading to optimized operations,targeted marketing campaigns, and improved menu offerings.3, Challenges:Balancing personalization and privacy: Burger King needs to navigate dataprivacy regulations and customer concerns while still leveraging data forpersonalization.Competition: The fast-food industry is fiercely competitive. Manycompanies are transforming to digital business so Burger King needs tomaintain a competitive edge through strategic marketing and a strongdigital presence.
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4, Recommend for enhancing Burger King’s digital business:Integrate customer feedback channels: Create a unified systemfor capturing and analyzing customer feedback across alltouchpoints (app, social media,...)Address data privacy analytics: Be transparent about datacollection practices, implements robust security measures andoffer customers control of their private data. (BurgerKing n.d)
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THANKYOUFORLISTENING
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REFERENCES
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FSIVietNam (2024) Tầm Quan Trọng, Lợi ích Của Chuyển đổi SỐ Với Doanh Nghiệp, TỔ chức, Người Dân, Công ty FSI, Accessed: 21 March 2024.https://fsivietnam.com.vn/tam-quan-trong-va-loi-ich-cua-chuyen-doi-so/ Mellado, D. (2023) An overview of current information systems security challenges and Innovations J. UCS Special Issue, Academia.edu, Accessed:26 March 2024.https://www.academia.edu/102128117/An_overview_of_current_information_systems_security_challenges_and_innovations_J_UCS_Special_Issue?uc-sb-sw=53153179 (MBA), L.S. (2023) How digital transformation can and will boost your profits, LinkedIn, Accessed: 26 March 2024. https://www.linkedin.com/pulse/how-digital-transformation-can-boost-your-profits-lipi-sarkar-mba-/ Moyo A 2021Burger King introduces celebrity ‘keep it real meal’ | ad age. Available at: https://adage.com/article/marketing-news-strategy/burger-king-introduces-celebrity-keep-it-real-meal/2363626 (Accessed: 30 March 2024). (No date b) Burger King. Available at: https://www.bk.com/ (Accessed: 30 March 2024). Nguyet M 2022 6 Ngành Nghề ‘hot’, được Săn đón Trong Thời Gian tới: Ngành ‘khát’ Nhân Lực, Ngành nhận Lương đến 40 Triệu/Tháng dù Chỉ MớiRa Trường - Trung Tâm Dịch VỤ Việc Làm Tỉnh đắk lắk (no date) 6 ngành nghề ‘hot’, được săn đón trong thời gian tới: Ngành ‘khát’ nhân lực, ngànhnhận lương đến 40 triệu/tháng dù chỉ mới ra trường - TRUNG TÂM DỊCH VỤ VIỆC LÀM TỈNH ĐẮK LẮK. Available at: http://vieclamdaklak.net/bai-viet/10217/6-nganh-nghe-%E2%80%98hot-duoc-san-don-trong-thoi-gian-toi-Nganh-%E2%80%98khat-nhan-luc-nganh-nhan-luong-den-40-trieu-thang-du-chi-moi-ra-truong (Accessed: 30 March 2024). Burger King Marketing Strategy: Flame-Broiling Success (2024) Voy Media |. Available at: https://voymedia.com/burger-king-marketing-strategy/(Accessed: 30 March 2024). Pereira, D. (2023) Burger King Business Model - How Burger King Makes Money?, Business Model Analyst. Available at:https://businessmodelanalyst.com/burger-king-business-model/#Burger_King_Channels (Accessed: 30 March 2024). Bloomberg, B. (2023) Burger King plans on making all locations 100% Digital: RBI CEO - BNN Bloomberg, BNN. Available at:https://www.bnnbloomberg.ca/burger-king-plans-on-making-all-locations-100-digital-rbi-ceo-1.1993794 (Accessed: 30 March 2024). Glenday, J. (2022) Burger King takes aim at gamers with call of duty-themed whopper, The Drum. Available at:https://www.thedrum.com/news/2022/10/26/burger-king-takes-aim-gamers-with-call-duty-themed-whopper (Accessed: 30 March 2024). Burger King Corporation (2024) Encyclopædia Britannica. Available at: https://www.britannica.com/topic/Burger-King-Corporation (Accessed: 30 March2024).
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