PROBLEM STATEMENT
LIST OF PROBLEMS
1. Poor management by its previous predecessor
Burger King has gone through different management style and companies since it was founded in 1953 by Keith Kramer and Matthew Burns. Even though Burger King has established itself as a well known brand over the years, its history of poor management has put a toll on its brand name. Even suffering declining in revenues along the way.
2. Weak marketing strategies and wrong target market
Certainly the changes of its strategies do led to a profitable quarters and re-energized Burger King after the take-over of TPG Capital in 2002, but when the advertisements and campaigns stopped, the sales of its items also declines. Furthermore, Burger King led by TPG Capital invested too much on acquiring male consumers as their target market. During the 2008-2010 recession in the U.S., Burger King showed the lack of flexibility in changes of its market strategies. Male consumers was not a really suitable target market at thattime as they were the ones having difficulties and was hit hard on employment and such during the fiscal year.
3. Lack of product Innovations
The “barbell” menu strategies that was introduced at both the premium and low-priced ends of the product continuum did not really help much in the growth of Burger King. Since fast food often associated with low price. Furthermore, the premium items need to be constantly advertised. Moreover, its menu development was deemed as horrible and too much emphasis was given on value meals which causes dissatisfaction among the franchisees.
The growing concern of health and fitness in the U.S. as well as the passing of the health reformed bill in 2010 by the U.S. Congress is one of the most important issues to be taken into consideration for the quick service restaurant (QSR) including Burger King. Burger King should be flexible in its approach of product offerings but failed to do so by promoting and creating high calorie and unhealthy food items on the menu.