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These companies have developed mechanism for promotion, pricing, product development and distribution that have ensured their success or failure in business practices. For the case of promotion each have had strategic campaigns to market their products. Burger King have successful campaigns since their inception of the chain supply as regional fast food industry. In the 1970s it run a very popular promotion using the Mascot Burger King name that revolutionized its market share successfully expanded in profits and regional presence.

Slogans such as ‘have it your way’ and ‘It takes two hands to hold a whopper’ proved to be successful in their promotional campaigns. This failed when owner transfers occurred in late 1970s and 1980s. The growth of the company slowed down to near collapse. However, other promotional campaigns such as tie-ins that involved celebrities, film industry and other big personalties were successful and increased their sales significantly. Burger King is also credited in organizing successful campaigns with animated company owners Walt Disney in the 1980s through to 1990s. It later released its own films that had different story.

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One of their major unsuccessful campaign used by Burger King was ‘where is the herb’ did not make an impact on the audience (Burger King 2008). In the case of McDonald it had extensive media advertisement ran in all major media outlets. It also had billboards and signage in roads, buildings and premises. Television advertisement was the major media outlet it used to promote its products and used more than twenty three slogans within US and internationally. One of the major unique promotional identity of McDonald stores was the presence of playgrounds in almost all stores.

They were either indoor or out door where different types of age group of customers could relax as they enjoy McDonald hamburger’s. Most of the playgrounds was designed to meet the needs of the young children and they had ads placed strategically on them. They also rebranded their premises with a new look of yellow and red color intertwined with tetra cotta. Prices of the product varied depending on the type of the restaurant. For instance Burger King developed each product to suit a given demographic level. In 1979 a non-hamburger sandwich from chicken was designed for customers aged 18 to 34 that desired high quality food.

In 1993 Burger King developed a multi-tier value menu that competed favorably with Wendy’s single value menu. This was later transformed into standardized menu and led to the formation of value menu. McDonald pricing of the products have been identical to the agreement in which it has entered. The prices are regional specific and determined by the conditions of the host country. This has made McDonald to be considered as in indicator of the purchasing parity of countries. Most of the McDonald restaurants are owned by franchisees who determine the price and solicit materials from approved third party suppliers.

The products of these two major corporations are similar in type but identical depending on the way they are prepared. Burger King has a list of items such as hamburgers, French fries, soft drinks and desserts. In 1979 Burger King introduced chicken fries for high quality consumer market. It also introduced breakfast line such as croissanwich in 1983 and BK Am express. Due to several controversies in international market Burger King modernized their product by considering cultural, regional and religious influence hence products like teriyaki, beetroot, fried egg and whopper in Europe and halal in Israel were developed.

There were other short term products to cater for certain times and sales such as the Texas double whopper. Multi-tier value menus were added while others failed to make impact such as the meatloaf specialty. Burger King has introduced the value menu that contained several product items which were later revitalized, deleted, added or modified. Adult client caused Burger King to introduce the BK Joe brand coffee. Unsuccessful product items were enormous omelet sandwich, BK stacker and BK Baguette (Burger King 2008).

McDonald has substantial wide range of products that were localized to suit certain customer based on their locality, culture and religious beliefs. The products included hamburger, cheese burger, chicken products, French fries, breakfast line, soft drinks, milk shakes, desserts, salads, wraps among others. In Indonesia and Asia subcontinent it introduced diet that contained no beef such as the McRice. Others include McOz(Australia), Croque McDo (Belgium) and Cheddar (Brazil). The distribution of these two major companies is global but McDonald is the leading fast food chain restaurant.

It has presence on over than 120 countries employing thousands of people. It operates brands like Piles Cafe and Pret a Manger, it owns large portion of shares in the Chipotle Mexican grill and Donalus Pizza up to 2003. McDonald’s stores are found almost in all gas stations, shopping malls, walmart streets. It has McCafes located at strategic places in cities and suburban areas they operate. It has McStop in truck shops that serve traveling customers. Other established restaurants have large outdoor playing fields or indoors playgrounds at the heart of urban centers.

Burger King is the second largest fast food chain of restaurant with over 11,300 outlets in world wide. It has presence in 69 countries with more than a third located in United States of America. At least 90 percent is owned privately with over 37,000 workforce. The store operates franchise in different regions who manage and sub-licence according to laid down agreements. WEB SITES SYNOPSIS The websites of the three companies are excellent and provide needed information though not comprehensive enough. The are both user friendly, interactive. Coupons are available for McDonald and Burger King. Locations and directions are well articulated

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Cost based – It is when a business works out the total cost of producing a product by adding together all the fixed variables costs. Then it adds an amount for a profit, often called mark up, to give the selling price. The mark up is usually expressed in the form of a percentage.

For example, if the kosher food shop works out that the total cost for producing a kosher chicken is �10. They decide they want to add a 10% mark up to create profit for them. This would give the following calculations:

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Total cost �10

Percentage mark up per chicken 10% of the total cost

�10 x 10 divided 100 = �1.00

Total price = �11.00

Market based – It is when a business looks at how much other business are selling a product for and selling the same product for around the same price or maybe a bit lower to gain the advantage amongst its competitors. For example if a kosher chicken at La Boucherie cost �11.00, my shop will sell it at �10.60. This generally happens in an environment where there is a lot of competition and opposition.

Promotional pricing – Pricing to promote a product is a very common application. There are many examples of promotional pricing including offers such as Buy One Get One Free and 2 for the price of 1.

Skimming pricing – Charge a high price because you have a large competitive advantage. The high price attracts new customers; however the price falls as the demands increase. A good example of skimming pricing was a mobile phone. When they first came out, they were really expensive and few people owned them. As time grew on more were produced and sold at a lower price and many people bought them.

Penetration pricing – The price charged for products and services is set artificially low in order to gain market share. Once this is achieved, the price is increased.

Destroyer pricing – You sell your product at very low price. Consequently people buy your product not your competitor’s product as yours is cheaper, meaning you destroy existing competitors business. An example of this is Primark. Primark sell their clothes at a very low price, meaning many people buy from there and it destroys other competition such as top shop, Base etc,

I think that that my shop should use promotional pricing. This is because the other pricing policies are not suitable at all for my shop. Skimming prices would not suit the shop because the products I am selling are not new or up to date they are just simple general food, Also, people wont buy my goods if I use it, I know this because my results of my survey tell me most people want the shop in Barkingside and if I put my shop there my customers will go to another shop, like Sharon’s to buy the more expensive goods such as chicken. There are other competitors customers can go to if they want cheaper food and I know they want cheaper food because half of the people I survey are more interested in quality than price. This is similar to why I haven’t chosen penetration pricing. It is because once the price has been raised my customers would buy from my competitors as it may be cheaper. Finally although destroyer pricing doesn’t raise the price of my food, I don’t think it would work in the food industry, in particular my shop, because there is only so much the price can be lowered and it wouldn’t be enough for me to eliminate my competitors and still be able to make a profit. In conclusion promotional pricing, would suit mine better because it doesn’t have any disadvantages. Also I think that it is most reliable choice.

Promotion

There are 2 types of promotion, which are above the line and below the line.

Above the line – Most advertising would be said to be as above-the-line promotion. The main media choices include: television, radio, cinema, national newspaper, posters, magazines, internet, etc.

Below the line – Any promotion not using traditional media is classified as below-the-line. The main types of below the line are: sales promotions, direct mail and door to door, personal selling, sponsorship, etc. An example for below-the-line is Arsenal are sponsored by Fly Emirates, this is a form of below the line promotion. This form is very expensive.

Advantages and Disadvantages of above the line marketing

Advantages of above the line

* Advertising to a wider range of people and the shop could get more customers

* Increases the companies sales which cold boosts the shops profit

Disadvantages of above the line

* Is very expensive

* Can be very time consuming

* Continuous monitoring of product

Advantages and Disadvantages of below the line marketing

Advantages of below the line

* Can be cheaper

* Advertising to a wider variety of people

* Increases number of sales

Disadvantages of below the line

* Can be very expensive

* Easy to lose money. This could happen in the event, for example, Manchester united are doing bad and it’s sales production decreases

Product

The main factors which will affect the products I provide in my shop are:

* Price – If the product that the shop is buying is very expensive, they may not be making much profit out of it and may not want to sell it. On the other hand, if the product they are buying to sell in their shop is cheap, they may be making a lot of money on it, so they would stock more of it to keep making lots of money.

* Quality – If customers come back to the shop and takes a product back for one reason or another, the shop may not want to sell this product. This is important because if a customer isn’t happy with a product they will tell other people and sales will decrease

* Demand – If there is a high demand for a product the shop will stock more of it. On the other hand, if there is a low demand for a product a shop will sell less of it.

* Religious festivals – When a religious festival is near the shop will sell products in association with less. For example if Pesach is coming up, the shop will sell matzoth.

* Reliability – This is to do with suppliers. A shop needs to know a supplier is reliable. For example, meets deadlines for when they are going to arrive with stock.

Place

My survey results told me 12 out of 25 people wanted the shop to be in Barkingside, which was the majority. In addition tot his in Barkingside there is a kosher bakery and a kosher butcher however no kosher food shop.

How will each of the marketing mix help Abraham to achieve his objective?

Price

There are many different pricing schemes e.g. Promotional, Skimming, Penetration and Destroyer. I have shown Abraham what each of these pricing schemes mean and which one I feel is the best to use. So by giving Abraham these different pricing policies it will help him to decide what one he thinks is the best for his shop and which one will help him make the most money.

Promotion

There are 2 types of promotion schemes; these are above the line and below the line. Above the line promotion which is using media, below the line however doesn’t use the media. The descriptions I have given can easily show which one is suitable to make maximum profit for a small shop in Barkingside. I’m sure Abraham can see that a shop like this doesn’t need media, however offers such as buy one get one free are more than suitable.

Place

When you are opening a business the main feature that you need to think about is where you are going to locate the business. If you are going to put a shop in a sparsely populated area, where there is little of your target market, in this case Jewish people, thou are not going to make much, if any, profit. Whereas, if you place your business in a dense area e.g. Barkingside, where there is much of your target market you are going to make money and a lot of people will come to your shop. From my survey I know that most people live in Barkingside and that Barkingside is the place that most people will want a kosher shop to be located. By telling Abraham the results from my survey about locating in Barkingside, this should help Abraham to achieve his objectives.

Product

The products that you sell in a shop are very important; you need to make sure that the prices are reasonable and in a kosher shop the food must abide by the Jewish laws. If you have stock with products that are unknown, then you will have problems selling them as people will not want to buy products they don’t know. I’m sure my 5 main suggestions will help Abraham make the right decisions in what to stock

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