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Burger King Pricing Strategy

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Burger King (BK) is a worldwide fast-food restaurant chain, which is founded by Insta-Burger King in 1953. Burger King operates in about 71 countries worldwide and it is the second largest fast-food chain in the United States, behind McDonald’s. Burger King used franchising to expand its operations. In 2007, Burger King opened its first fast-food restaurant in Hong Kong, which is at Hilton Towers, Tsim Sha Tsui. However, all Hong Kong Burger King outlets closed in 2015. In this paper, the reasons why Burger King was not performing well in Hong Kong will be discussed.

Brand of Burger King
A good brand should both reflect the past (present state) and direct the future for the company. It also raises the awareness of customers and associate …show more content…

These two pricing strategies are commonly used by most of the fast-food restaurants, such as McDonald’s and Mos Burger. For the pricing strategies, Burger King even has not did well in Hong Kong. As the value perception of the customer, the price of a burger meal in the fast-food restaurant should be around $20-$35. However, the average price of a burger meal in Burger King is over $40. The value of a burger meal in Burger King is overestimated by the company. Besides, the prices of a burger meal in Burger King are higher than that in McDonald’s and in Mos Burger. At the higher price, the customer expected that they will enjoy better quality. However, the quality of the burger is not better than that from Mos Burger and similar to that in …show more content…

The marketing strategies in Hong King cannot build up their brand image, or even brand has down-graded. The value perception of the customer towards to the Burger King is not too high, but the price is over the customers’ expectation. Also, the brand association of Burger King is very weak, since the customers did not get many and correct information about Burger King. Besides, the favourability of brand association is not enough, because the locations are not convenient enough and the prices are too high (over $40 for a meal). And compare to McDonald’s (fast, convenient and cheap) and Mos Burger (high quality of product and more health food) in Hong Kong, Burger King is not unique enough, since it did not have the PODs products. As a result, Burger King was not performing well in Hong

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