Sample Answer
Competitor Analysis – Direct and Indirect Competitors
Chosen Product: Big Mac (McDonald’s)
Direct Competitor (A): Whopper (Burger King)
Indirect Competitor (B): Veggie Burger (Greggs)
| Criteria | Big Mac (McDonald’s) | Whopper (Burger King) | Veggie Burger (Greggs) |
|---|
| Competitor strengths based on product mix |
The Big Mac is globally iconic, known for its “special sauce” and balanced flavour profile. McDonald’s maintains strict quality standards and delivers consistent taste across countries. |
The Whopper’s flame-grilled beef and larger size appeal to customers seeking a stronger, smoky flavour. Burger King promotes customisation as a key strength. |
The Veggie Burger focuses on plant-based ingredients, targeting health-conscious and ethical consumers. It’s light, affordable, and aligned with sustainability trends. |
| Pricing / pricing tactics |
Priced affordably to attract mass consumers. Uses bundle deals like “McValue Meals” and regular promotions on delivery apps. |
Priced slightly higher, emphasising a “premium burger” feel. Often uses limited-time offers and meal upgrades to drive sales. |
Very competitively priced for a healthier option. Uses meal deals and loyalty discounts to appeal to everyday commuters. |
| Promotion mix / competitive advantage showcase |
Heavy investment in TV, online, and influencer campaigns. Emphasises brand familiarity and the Big Mac’s global legacy. |
Humorous, competitive advertising and social media campaigns that highlight flame-grilling and freshness. |
Focuses on digital promotions, sustainability messaging, and social proof from customer reviews. |
| Distribution (Place) |
Global presence in over 100 countries. Available in urban, suburban, and delivery platforms 24/7. |
Strong international coverage but fewer locations. Also available via major delivery apps and drive-thrus. |
Primarily UK-based, strong high-street presence. Available through its app and food delivery partners. |
| 3 Remaining P’s (People, Process, Physical Evidence) |
People: Uniform training ensures consistency. Process: Efficient systems for speed and quality. Physical Evidence: Clean outlets, iconic packaging, and visible brand elements. |
People: Customer-oriented staff focusing on personalisation. Process: Highlighted flame-grilling process. Physical Evidence: Bold, indulgent branding. |
People: Friendly staff and quick service. Process: Simple and efficient ordering. Physical Evidence: Eco-friendly packaging and sustainability-focused branding. |
Short Analysis
The Big Mac holds a dominant market position due to its consistency, value pricing, and global brand strength. McDonald’s leverages scale and familiarity, appealing to both convenience and nostalgia. Its main direct competitor, Burger King’s Whopper, differentiates through taste and personalisation, positioning itself as a bolder and more indulgent option. While McDonald’s wins on accessibility and recognition, Burger King’s marketing often outperforms in creativity. On the other hand, Greggs’ Veggie Burger poses an indirect threat by targeting health-conscious consumers and aligning with sustainability trends. This shift toward plant-based and ethical eating could challenge McDonald’s traditional offerings in the long term. To stay competitive, McDonald’s should continue innovating with healthier menu extensions and transparent sourcing practices while maintaining its strong global branding and affordability.
