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2. Florida based Burger King Holdings Ltd operated and franchised fast
food hamburger restaurants through its subsidiary , Burger King
Corporation. It ran 11300 restaurants in 69 countries and was
the second largest hamburger restaurant chain in the world.
In philippines , PERF restaurants Inc was the franchise holder of
Burger King and operated out of 23 locations wh were located
in the National Capital Region. In philippines , it was facing a
tough competition with the leading home-grown brands , Jollibee
and the world’s largest brand , Mc Donald’s. Although burgers,
chicken and fish, sides and desserts were offered, the
company’s unique selling proposition was its range of
Whoppers. Burger King’s brand awareness in the philippines
was pretty low. The company’s current communication efforts
had not been able to increase brand awareness. Mr. Kim Tan,
vice president, Marketing, had to take decision about the
value proposition, communication strategy of the company
amongst host of other marketing decisions, within next 3-4 2
3. Problems
Communicating Burger King’s
value proposition to its target
market was a major problem
for the company despite
having a list of strengths such
as superior products , higher
quality , great ambience etc.
The company’s current
communication efforts had not
been able to increase brand
awareness.
Reasons
The company had lower visibility
due to less no. of stores. It
also had low accessibility due
to the same reason, as pointed
out in the focus group
discussion.
The company’s offerings did not
include kid meals, chicken and
non-burger main items. Rice
was not served as aside option
to buy which was served at
Jollibee and McDonalds. In
philippines it was common to
offer rice along with the food.
There was also a negative
perception that Burger King
didn’t cater to the local Filipino
taste. As reported in the FGD,
many respondents didn’t
appreciate the absence 3
4. Fast food had become one of the fastest
growing industries in metro manila due to :
o Rapid urbanisation
o Increase in disposable income of the population
o Growing preference of Filipinos for quick-value
meals in a clean and cool environment
5. Major players in fast food market of metro
manila :
Jollibee
Mcdonalds
Burger king
Kfc
Wendy’s
Chow king
Greenwich
6. Some smaller niche players are also there,
such as –
Brother burger
Max’s
Goldilocks
Tokyo-Tokyo
Hotshots
8. Operating for 32+ years
600 domestic outlets ( key strength)
30 international outlets
Expanded market through acquisition of
other fast food restaurants and bakeries
Products :
American – burgers and fried chicken
Filipino – palabok and lumpia
Emotional attachment from filipinos –
“langhap sarap” meaning “savoring
happiness”
9. Target market- filipino family in home
country and abroad
Committed to community programs such as “
maAga ang Pasko”, a donation drive of used
clothes and toys that were annually
distributed to street children and
orphanages.
10. First opened in 1981
Multi-billion peso company with 250 outlets in
Philippines.
First one to Operates 24/7
Products:
Burgers
Cheeseburgers
Burger mcdo
Big mac
Quarter pounder w/cheese
Chicken
Chicken mcdo
McChicken sandwich
Fries
dessert
11. Target market- Filipino family with a taste
for American fast food.
Strong marketing campaign
Received multiple awards for “lolo”
campaign in 2003
Key strength – ability to market itself as the
recognised global leader in hamburger chains
Quite visible with a good choice of location
and appealing advertisements
Limitation – its non- Filipino taste
12. Has been in philippines for more than 2
decades.
Most popular product – KFC original recipe
fried chicken
Major strength – brand recall when it came
to fried chicken
Major weakness – absence of legitimate
hamburger in the burger segment
However, they were attempting to cater to a
new crowd of chicken burger lovers with
their line of zingers and chicken fillet
sandwiches .
13. Opened first outlet in Philippines in 1983
31 outlets in the country
Target market- similar to Jollibee and
McDonalds but also those who prefer
healthier fast food
Products-
American fast food (burgers and fries)
Unique salad bar ( key strength)
The baked potato ( unique item)
14. Key weaknesses – lack of visibilty in terms of
No. of outlets
Marketing promotion
15. Pizza - among the top fast food items
Pizza parlour industry second to the burger
industry
Notable franchises-
Shakey’s
Pizza hut
Greenwich
Only comparable to burger king in
terms of price as others commanded a higher
average purchase price
Acquired by to
enter into pizza segment
16. Major weakness –
always located near a jollibee or chow king
outlet
Did not cater to the burger segment ( absence of
hamburger on their menu)
17. New fast food restaurants that had burger as
their main food such as and
Too few outlets at the moment , even if they
are popular
These players are in premium burger
segment, serving high end quality burgers at
premium pricing .
Major weakness –
Lack of number in outlets
Weak visibility
18. Opened in the philippines in
1999
13 outlets in total today
19. 15 outlets in philippines
8 in indonesia
1 in singapore
20. BURGER
KING
JOLLIBEE MCDONALD’S WENDY’S
AGE IN
THE
PHILIPPINES
11 years 33 years 27 years 25 years
# OF
OUTLETS
(PHILIPPINES) 23 600 250 40
MAJOR
PRODUCT/S
Burgers,
fries,
dessert
Burgers, local
offerings,
chicken, fries
, and dessert
Burgers,
chicken,
fries, and
dessert
Burgers,
salads,
desserts,
and baked
potato
21. POLITICAL FACTORS
Govt proposed policy- Allowing almost 100% foreign
ownership in all sectors
Increased competitiion
More investment like increase in franchises
ECONOMIC FACTORS
Increased Remittance
In 2007 overseas remittances was 13.2% over the 2006
remittances
Services boom and the resulting increase in net disposable
income
Service output increased by 8.7% from last year
Increase in demand and consumption of fast food
22. SOCIAL FACTORS
Changing lifestyle and perception
Increased foreigners and expats due to rise in service economy-
imbibing latest fashion, technologies, and world class taste and
preferences
Increased educated and health conscious people
Increase in no. of working women
Average increase of 6.7% from 2006 to 2007
It has increased from 13,394,000 to 14,286,000 in 2007
TECHNOLOGICAL FACTORS
Use of automated vertical grills, self service kiosks
,automated french fries system
Increased interactions with customers &reduced labour cost
POSSIBLE SUCCESS FACTORS
Product, pricing, advertising, efficient service, breakfast
menus, value preposition, add on services, etc
23. Market Research Findings
A UAI Survey along with a focus group discussion was
conducted by a team of Asian Institute of Management and
following was a summary of the findings of the survey and
group discussions.
• Pizzas and Burgers were the most preferred fast food
items:-
The survey showed that an equal percentage (of
28.9%) of people preferred pizzas and burgers to other fast food items.
Following figure depicts the percentage split among the respondents on
the most preferred food items. Pizzas
Burgers
Pastas
Sandwiches
Salads
Others
24. Jollibee had the highest brand recall amongst the fast food
brands:-
Advertising forms an important component of fast food operations.
The items were generally bought on impulse and a well-advertised brand
easily gained recognition. Almost half of the respondents recalled Jollibee
when asked about fast food and only 2.2% recalled Burger King.
Brand Recall
Mcdonald's
Jollibee
Burger King
Others
25. REASONS FOR THE LESSER BRAND RECALL AND BURGER KING BEING A
FOLLOWER.
Lesser visibility and accessibility of Burger King.
Although higher-end (costly) burgers were good, the lower-end burgers
were considered below-par compared to competitors such as Jollibee and
McDonalds.
Burger King did not have much variety in the kids’ food.
Food quality, price and service were the primary factors taken
into consideration before choosing a restaurant:-
There were various factors that people looked for, while choosing a fast
food restaurant. The most important factor in decision making was the food quality,
service and price. Below graph shows things people look for in a restaurant (on scale
of 5)
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
Food Quality Price Location
Convenience
Promotions
Offered
Ambience Service
26. Jollibee led in all the main factors like quality, value for money,
menu and the service provided:-
In the average ranking of brands on the basis of
quality, value for money, menu and service it was concluded that Jollibee
lead in all factors. Following cluster graph shows the average ranking of
brands on the aforementioned factors.
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
Quality Value for
Money
Menu Service
McDonald's
Jollibee
KFC
Burger King
Wendy's
27. Jollibee and McDonald’s were neck-to-neck in convenience,
ambience and cleanliness:-
In the average ranking of brands on the basis of
convenience, ambience and cleanliness, it was found that Jollibee and
McDonalds were neck-to-neck.
Soft drinks and Fries were the two main supplementary food
items that people liked to have with their fast food meals:-
Out of a list of sides, people preferred soft
drinks and fries along with their fast food meals. The figure below showed
the percentage of people who like to have other things with their meal at a
fast food restaurant.
0
10
20
30
40
50
60
70
80
90
Soft Drinks Ice Cream Fries Desserts Soup/Salad Ice Tea
28. 44
64
70
3 3 2 2
0
10
20
30
40
50
60
70
80
0ther Add On Services That People Desire At A Fast
Food Restaurant
Add On…
30. 18
65 62
4 3
0
10
20
30
40
50
60
70
What are the services/changes people like to be
offered at burger king
Services/Changes
Large variety and cheaper prices were what people
want from Burger king.
31. SWOT ANALYSIS
STRENGTHS
◦ Food quality – rated 3.99 on a scale of 5
, better than almost all other fast food
joints
◦ Brand name- “burger king” is a brand
name associated with burger
◦ Authentic American taste- value
differentiator that could be leveraged in
attracting the trendy and westernised
Filipino youth
32. WEAKNESSES
◦ Limited number of outlets- regular
customers of burger king had to switch to
other fast food joints, if they did not find
an outlet in vicinity
◦ Limited choice in menu- should offer
varied type of products like its competitors
◦ Not suited to Filipino taste – had a bit
more American flavour to its products
◦ Higher prices- jollibee and mcdonalds
had cheaper products
33. OPPORTUNITIES
Spending on fast food is increasing
Urbanization
Increase in no. of working women
Increase in the no. of people who came to fast food joints for different
services like phone charging and mobile phones
THREATS
Increase In concern about health
Increase in no. of outlets of other fast food chains
CORE COMPETENCIES
Excellent supply chain, good service standards, good quality products,
innovative side orders, excellent ambience, tech-savvy outlets
POINT OF DIFFERENTIATION
AMERICAN FLAVOR AND AMERICAN FACTOR IN PHILIPPINES
Burger kings strong association with American flavor and the authenticity
maintained was ,hence, a “POINT OF DIFFERENTIATION”
TARGET MARKET
Teenagers and young adults up to the age of 35, studying or working from
metro manilla.
36. Burger king also introduced breakfast menu
New offering – burger shots (many small
sized burgers in a single order )
Apart from burgers, the whopper sub brand
was a unique sub brand associated with
burger king
Burger king also offered various chicken
sandwiches which were highly sold
Most of the desserts were supplied from
other major brands .
37. PRICE
Expensive compared to all its competitors
Burger starting from 50 PHP
Price could go up to 250 PHP
Average price of a meal – 175 PHP
38. PLACE
Sold its products only through its 23 outlets in
metro manila.
No home delivery on phone
Options with consumers- eat here or take
away
Most outlets located in malls with high
footfall, premium malls which attracted A
and B income segment customers ( richest
customers)
39. PROMOTION
Constraints
• Spent lesser than McD and Jollibee
due to the sheer scales that they
currently command in Philippines.
• Outlet visibility was a natural form
of increasing brand awareness –
difficult with only 23 outlets
40. Keeping the constraints in mind, company
advertised through following modes :
Direct mailers sent to customers via mails and
network marketing used
Communication through facebook
Team sponsorship - Had its logo printed on jersey
of a famous local basketball team
Advertisements in newspaper and magazines
Small banners and kiosks an malls to show
direction to outlet
41. Discount coupons ( up to 100% discount coupons
used ) – coupons awarded to winners of events
sponsored by burger king
Communication messages used
Common message rode on theWHOOPER – “
Angry whooper , and it’s cool to be angry”
Other messages such as photographs of
basketball players wearing burger king jerseys
were used
Most messages showed a meal – a sumptuous
burger with coke, fries and dessert
42. ANNEXURE
KEY RESPONSES:
◦ Burgers will be the dominant fast food
preferred by people
◦ People thought of big king size burger when
thinking of burger king
◦ Fried chicken is an important offering
◦ Visibility and accessibility of burger king are
low.
◦ Low-end burgers were considered as “not
worth it”
43. ◦ High-end burgers were considered “worth it”
◦ Burger king has maintained the American
taste, not adapted to Filipino tastes.
◦ Jollibee offers better toys for kids
◦ Kid’s meals offered weren’t good enough
◦ Credit card payment available at burger king
was appreciated
◦ Cell phone charging facility – major
attraction
◦ Burgers preferred to be served with chips
44. ◦ Home delivery service which is not available is
very important
◦ Filipinos like Filipino breakfast – should
introduce breakfast with Filipino flavour
◦ Free internet – major attraction
◦ Burger king’s old policy ( not existing now) of
unlimited drinks was highly appreciated and
still remembered – offering be started again
◦ Burger king should increase its visibility –
currently low
45. ◦ Suggestions given were for the introduction of
drinks other than aerated drinks.
46. QUESTIONS
1. Despite having strengths such as superior
products, higher quality, great ambience,
etc., burger king’s brand awareness in the
Philippines was pretty low. Analyze the
situation that may help Mr. KimTan,Vice
president , Marketing of burger kings,
Philippines. What is the role of local culture
in this context ?
47. 2. ShouldTan retain the main point of
differentiation, its American flavour as its
core equity? SuggestTan on continuation of
current positioning and communication of
its value proposition.
Editor's Notes
The ones marked in blue are major competitors of burger king (marked in red) in burger fast food segment