Context: In Finland is a burger fast food duopoly between McDonalds (American) and Hesburger (Finnish). In May Burger King announced it would re-enter the market (their first attempt years ago failed) through a local chain called Restel.
Big news when Restel announced to bring Burger King back to the Finnish fast food market! Of course, McDonald’s quickly pointed out that the fast-food market in Finland is tight. Indeed, after Hesburger bought Carrols in 2012 the common believe might have been that the Finnish market is to small to go beyond a duopoly. Nothing could be further from the truth: with the arrival of Burger King the burger brand battle is about to start!
So, what might happen?
For the current players in the market, McDonalds and Hesburger I can only see trouble at the horizon. In general brands are strongest when they mean one thing and one thing only, like Heinz = Ketchup. This is the power of focus. Both Hesburger and McDonalds are currently not very focussed brands. Let me ask you, how would you describe McDonalds or Hesburger to your friends in a couple of words without using any marketing talk? It is quite difficult, isn’t ? I have heard some: McDonalds is the original or American, Hesburger is Finnish, there is a difference in mayonnaise etc. These are all right, but they do not help McDonalds or Hesburger to position itself clearly in the market.
Burger King on the other hand can capitalise on a very strong position: Burger King = Fire-grilled beef. So, if you want a fire-grilled beef burger you go to Burger King. When it comes to brand clarity Burger King is currently the winner!
What could McDonalds do?
McDonalds could focus on being the really FAST, fast, food restaurant. After all, a fire-grilled beef burger does imply slowness to it. Another alternative is to (re)focus around family: McDonalds, the family fast food restaurant.
What McDonalds should not do is to further increase the number of products. For example, the current MyBurger campaign does not help to increase clarity of what McDonalds is. It is merely a nice marketing activity but it is not helping to build the brand.
What could Hesburger do?
Hesburger will be in an interesting position. Being a Finnish chain in the middle of the two American giants they should play the Finnish card. This could be done through ensuring everything they sell is produced in Finland. If this means reducing items on the menu, then go for it! For example, a Fish burger made of fish from Finland. Of course, on the box you can read which Finnish fish is used in the burger. Another alternative is to play on the Finnish taste buts. Hesburger will be perceived to know the Finns best!
Now, is the Finnish burger market really so tight that there is only space for three chains?
I don’t think so! Could you imagine a chain that only and only focuses on organic burgers? I can! Or what about a chain like the In-n-Out burger in the USA that has only three top notch quality burgers on the menu? Could that work? Of course it can!
I claim that in Finland there is space for at least five burger chains… let the burger brand battle begin!
This post appeared in Markkinointi & Mainonta