Marketing: Horse Meat Scandal in Burger King - Research Proposal Example

Marketing Research: Horse Meat Scandal in Burger King Table of Contents Executive Summary 3 Introduction 4Background 4 Competition 4 Burger King Overview 5 Problem Statement 5 Research Aims and Objectives 5 Methodology 6 Research Design 6 Measurement Variables 6 Results 6 Scandal Effects on the Attitude of the consumers 7 Effects to Market Expansion 8 Recommendations 8 Conclusion 9 References 10 Executive Summary Ethics in business is an important aspect not only in compliance with the regulations, but also due to the basic fact that it contributes to the reputation of the company and hence affects the direct relation with the company’s customers through its impact on marketing (Massey 2004). This research paper explored the effects of the horse meat scandal on the marketing strategy of Burger King, a food production company that was linked, together with others like Tesco in the scandal. The paper took the form of qualitative research. It involved collection of data from fifteen respondents randomly selected to present their views on the issue and in relation to Burger King and their attitudes towards the company and its products and services before and after the scandal. The respondents were selected randomly from the general population, and all were aged above 18 years. The research was conducted through qualitative collection of data using questionnaires. The results of this study showed that the Horse meat Scandal had a significant impact on the marketing strategy of Burger King as a company. Many of its previously loyal customers lost trust, and some indicated an onset of worry. Of all the 15 respondents from whom the data was collected, only 4 (27%) indicated having not changed their attitude towards the company. The rest 73% of the respondents were angry with the revelation of the scandal and would not recommend the company to anyone in the future. This attitude was present even among 2 respondents who had not eaten at Burger King before. These results indicate that must companies to observe business ethics and ensure that they do not lose customers out of such scandals. It, therefore, recommends that Burger King should be open and admit the flaws in the suppliers’ scrutiny and accreditation and assure the consumer of vigilance and seek apology. Introduction Background In early 2013, a wave of consumer uproar was experienced in the food industry in Western Europe. The outrage was in regards to companies unethical practice claims. I had been reported through several media that horse meat was being added to beef products from several main producers of burgers and other foods in the industry. Among the companies who were indicated to be involved in this scandal were Burger King and Tesco, the two giants in the industry. This issue of meat adulteration came to be referred by many the “Horse Meat Scandal” (HMS). The scandal did not only have immediate effect on the meat business, but also the idea of shopper trust in items offered by the companies was put out of offset as an issue of its secondary impacts. Loss of customer trust is in this manner nearly identified with a large number of moral, lawful, wellbeing and sometimes religious issues that HMS achieved (Stewart & Saren 2014).  Competition This, however affected many of the companies that are major competitors in the industry. They included Tesco, Burger King and Findus. The implication of this was that the consumers opted to lean back to companies such as McDonalds, which were not involved in the scandal. The scandal, therefore, favoured some competitors while it was a market disaster for others like Burger King. In addition, how well a company responded to the scandal determined its recovery of the consumer trust. For instance, Tesco faced the issue with confidence and admitted having been lax in the control of supply chain (Stewart & Saren 2014). The apologetic move served the company well, and its return to the market was rapid. Burger King Overview Burger King is an American company which has a global chain of hamburger and other fast foods. The company, which was founded in 1953 has been successful in the food industries becoming among the main market figures in the industry. The company operates independently in each country where it is present in the supply of beef and other products obtained through independent arrangement by the local branch. In the United Kingdom, Burger King is among the largest companies in the fast food industry and claims a market share that is third largest behind McDonalds and Tesco in most of the areas (Stewart & Saren 2014). Problem Statement The Horse Meat Scandal was one of the biggest hurdles that Burger King, as well as other companies involved, have had to get over. Retaining the consumer trust and loyalty has not been an easy task for the companies. In addition, the media involvement ensured that the scandal was widely discussed leading to negative attitudes among the consumers and the prospective users of all ages. Different perceptions of the scandals were however observed, and the change of trust has been affected by these attitudes. Research Aims and Objectives The aim of this research is to evaluate the consumers’ perceptions and attitudes towards the products and services offered at Burger King after the Horse Meat Scandal. The main objectives of the research are; 1. To find out how the scandal affected the attitude of the BK customers towards the company’s products and services. 2. To find out how the scandal affected the market expansion for Burger King. 3. To assess the best way forward to regain the customer loyalty and trust for Burger King. Methodology Research Design This is a qualitative research. It involved collection of primary data from a section of consumers randomly selected from the general population. Fifteen interviews were conducted for this study. The interviewees were selected randomly on the street, and none of them had prior information about the study. They comprised adults of various ages, diverse socioeconomic background, nationality and profession. All the interviewee had the study verbally explained, and they consented to participation in the study. However, employees from Burger King and any other fast foods companies were excluded from the list of interviewee. Measurement Variables The independent variables in this study were age of the respondent, profession, income, fast foods consumption with respect to Burger King and awareness of the Horse Meat Scandal. The dependent variable being measured in the study is the perception towards Burger King after the scandal and the possibility of recommendation of BK to others. Results Demographic characteristics of respondents Of the 15 respondents who participated in the study, only 2 were aged below 20 years. However, all the respondents were frequent customers of fast foods outlets. Spending at least £15 on fast foods per week. Table 1. Demographic characteristics of respondents Characteristic Frequency Percentage (%) Sex Male 10 67 Female 5 33 Age (years) 18-20 2 13 21-25 4 27 26-30 2 13 31-55 6 40 Over 55 1 7 Scandal Effects on the Attitude of the consumers The scandal had adverse effects on the attitudes of most of the interviewees. All the 15 respondents indicated having heard about the Horse Meat Scandal. The visual media, television was mentioned as the primary source of this information with all the respondents identifying ‘Television” as the only or one of the sources of the information. Of the 15 respondents, 8 respondents, (54%) indicated that the news caused then to have a change of attitude towards the company, Burger King. Of these, three were angry with the company and the rest 5 respondents felt betrayed by a company they had previously trusted. These were among the 10 respondents who were customers at Burger king before the scandal. The two remaining respondents who were customers of BK however related the scandal to animosity in business and its magnitude as having been fueled by the competitors and the media. Compared to the trust before the scandal, the consumers rated their confidence in the company at 2.8 out of five down from the average rating of 3.4 before the scandals. This indicates that the consumers were affected by the scandal to the extent of having a changed attitude. For those respondents who had not been customers at Burger King, their responses and feelings about the scandals were varied. To some, the scandal was indicative of the many faults that the food industries have. To another section of respondents, this was just another business animosity scandal that was to benefit the competitors. Effects to Market Expansion The market expansion of Burger King would focus on the consumers who have not used its products. To reach  these consumers, the company will have to make promotions and use its current consumers’ trust, return and recommendation. However, the scandal affected all these concepts. First, the customer trust after the scandal reduced to a rating 2.8 out of 5 (56%). In addition, less than half of the customers, 2.2 out of 5 (44%) were ready to return to Burger King. Further, only 46% of the respondents indicated that they would not mind recommending the company to others. These results indicate that to expand the market share effectively, the company must first seek to regain the lost trust and loyalty from its customers. Compared to its four main competitors, Burger King has a current consumer rating of 3.0 out of 5. This is the least among the others since McDonalds, a company that was spared by the scandal ranks highest at 4.4 out of 5. Burger King, in this survey, was ranked at the same level with Local Fast Food outlet whose presence in the market is less than 20 years. The possibility of having Burger King expand is dependent on these ratings, and as it stands, there is not much the company can do for the expansion. Recommendations To regain customer confidence and trust, the company needs to take several important steps. First, the company will have to accept responsibility for the presence of traces of horse meat in their products. However trace, the company need to show its customers that they also care and have been angered by the scandal as much as the consumers have. This effectively contributes to the duty of care that the laws and regulations places on companies and industries over the consumers. This is the return strategy that was used by Tesco in the same scandal. By accepting, the consumers are made to believe that this has not been happening and that all is being done to get their quality back. Denial and blaming the suppliers for the flaws will not be enough for the consumers. Secondly, the company might be forced to audit the systems internally to ensure that the flawed supplies are identified, now and in the future. This will ensure that the retention of quality promised to the consumer is upheld and that no similar incidence happens. It is important to note that after the scandal, the regulatory authorities will be extra vigilant and ensure that even other attributes of quality and standards are maintained. The company will therefore have to consider taking significant steps such as layoffs of incompetent and fraudulent employees to ensure that the reputation is adequately recovered. Admitting responsibility does not however mean that the company will have to appear guilty to the extent of having to consider promotions and rewards to the customers. In as much as this will help improve the reputation, it should not happen immediately. Customer loyalty should be regularly rewarded and not just after the scandal. Rewards program for loyal customers should be enhanced to ensure that those who are loyal are retained and ensuring that the company has a basis for growth and expansion (Massey 2004). Conclusion Marketing is an art. Having a stable market presence and maintaining a competitive position is a major challenge for many companies. The challenge becomes even more pronounced when there are quality issues, and scandals raised against the company. In such cases, the company loses its already loyal consumers, and the news prevent further expansion. Regaining the loyalty and reputation is one of the requirements in such instances. Based on the duty of care placed on companies to its consumers, the company must admit responsibility and demonstrate professional concern for the issue without appearing desperate. In the meantime, all the energy should be focused on ensuring that the company does not experience a similar incidence or anything related. The recommendations included in this research will help not only Burger King, but also other companies recovering from crisis and scandals. References Massey, J.(2004). “Managing Organizational Images: Crisis Response and Legitimacy Restoration.” In Responding to Crisis, ed. by Millar, D & Heath. London: Lawreance Erlbaum Associates, Publishers. Stewart, D., & Saren, M. (2014). The marketing pathfinder: key concepts and cases for marketing strategy and decision making. http://catalogimages.wiley.com/images/db/jimages/9781119961765.jpg. Read More