1. Principle of marketing FB5601
Newborn Burger King
Principle of marketing
FB5601
by AMICA
Team Member:
Chan Ching Yuen, Candy ( )
Fong Hoi Yin, Fluorine ( )
Fung Kwok Leung, Bobby ( )
Li Man Ching, Alison ( )
Lok Ka Yan, Mary ( )
Tsang Wai Yue, Woodie ( ) 1

2. Table of Content Company Overview Situation Analysis SWOT Analysis
Competitors Analysis
Market Segmentation
Recommendations
Implementations
Q & A Section

3. Company Overview Product market History
Flame-broiled Burgers: beef, chicken, fish fillet, pork, mushroom, etc.
Common fast food beverages & hot sides
History
Founded in Miami since 1954
A franchise store of Insta-Burger King ( ) 3

4. Company Overview Business failures
Poor marketing management & operating performance
FOUR ownership transfers during
Many franchisees closed down before reaching new acquirers
Hong Kong franchisees closed in 1980s-1990s
McLamore & David R. Edgerton
Phillsbury Company
Grand Metropolitan (Diageo)
TPG Capital & partners
Since late G Capital of Brazil 4

5. Company Overview Current situations Global ranking (No. of outlets)
>12,300 outlets in 76 countries & territories
>50% are located in the U.S.
≈90% are run by independent franchisees
Global ranking (No. of outlets)
Fast Food Hamburger Restaurant (FFHR) Chain: 2nd
Quick Service Restaurant (QSR) Chain: 4th 5

6. Company Overview Mission Philosophy & Slogan
“We will prepare and sell quick service food to fulfill our guest‘s needs more accurately, quickly, courteously, and in a cleaner environment than our competitors.”
Philosophy & Slogan
“Have it Your Way®” 6

7. Company Overview BK Asia Pac Private Limited
Franchising operations in Asia
Hong Kong:
SPPHK
Perfect Combo Ltd
SPPHK:
3 outlets in the HK Airport & the Peak since 2003
Perfect Combo Ltd:
15 outlets in KLN, HK, New Territories, since 2007 7

8. Company Overview Perfect Combo Limited
Portfolio company of NAS Holdings Ltd (#8080)
Continuous deficit: ≈ HK$29 million
Goals:
Turnover : Increasing >20% in ticket number
Exploring new marketing locations
Introducing new products
Reducing supply chain cost
Skill and staff enhancement 8

9. Environmental Analysis Consumer Behavior Analysis
Situation Analysis
Environmental Analysis
Consumer Behavior Analysis

10. Environmental Analysis
Multi-cultural society
Historical background
95% Chinese ; 5% from other countries
Mixed Western and Chinese culture
Economy
GDP : + 7.8% (2009 vs 2010)
Forecast growth in 2011 : 4.5%
Inflation rises from 2% to 5% between 2009 to 2011

11. Environmental Analysis
Demographics
Population size : 7 millions in 2010
≈52% Labor Force
Aging
Age
2001
2010
15 or below
16.5%
12.1%
16 – 34
30.2%
28%
35 – 64
42.1%
47%
65 or above
11.1%
12.9%
2023: 19.4%

12. Consumer Behavior Analysis
Dining habit
Frequency of eating out increases
Dining atmosphere : More social and entertaining experience
Consumers’ requirements of Fast Food Restaurant
Taste : Delicious
Fresh : must be HOT when serving for hot food
Service : “Fast” meal delivery time
Tangibles facilities : Enjoyable atmosphere

13. Consumer Behavior Analysis
Price sensitive
Closely related to quality
Love special offer
Always attract by special offers
Less brand loyalty in fast food industries
Health consciousness
Eating habit affect the health
Recent food safety incidents
Trend on having health food

14. SWOT Analysis

15. SWOT Analysis - Strengths
Unique cooking method
Cooked by grilling over fire
Differ from other burger restaurants
Global recognized brand
Over 12,300 outlets in over 76 countries & territories
Foreign customers feel cultural bonding
Hong Kongers spending behaviors sticks to branding 15

16. SWOT Analysis - Strengths
American style catering
Strong image of American style fast food restaurant (FFR) which differs from the exiting competitors in Hong Kong
Customized recipes
Customers can choose their own burgers 16

17. SWOT Analysis - Weaknesses
Corporate Slogan: “Have it your way®”
Hardly tie with company image and known by others
Advertising vehicle not effective
Small-size MTR display board
Cannot draw customers’ attention
Located wrongly in some outlets
Outlet locations prevent reaching to our target groups
Improper dinning environment
Cold lighting and decorations 17

18. SWOT Analysis - Weaknesses
Location of Burger King outlets in Hong Kong 18

19. SWOT Analysis - Opportunities
More people meal out
Increasing population with a busy working life style
Emerging the niche market for giant burger
Triple Stacker (Burger King) V.S. Double Quarter Pounder w/ cheese (Mc Donald's)
More popular in using electronic social network (E.g. Facebook, 微博)
Effective and Low cost communication channels 19

20. SWOT Analysis - Threats
Changing eating habit in Hong Kong
Emphasize more on healthy diet meal
Aging Hong Kong population
Reduced demand on fast food hamburgers
New entrants to same market segment
E.g. Freshness Burger, MOS Burger
Increase operating cost
High inflation in Hong Kong
Minimum wage law 20

21. Competitors Analysis

22. Competitors Analysis McDonald’s Mos Burger Triple O’s Freshness Burger
Burger King
No. of Outlets
225 16 6 4 15
Countries of origin
America
Japan
Canada
Entry year in HK
1975
2006
2003
2007
Re-entry :2007
Positioning
Be customer’s favorite food and place to eat
“I’m lovin’ it”
Fresh & healthy ; Premium raw material
“Making people happy through food”
Canadian styles ; delicious burger
“Juicy – Make to Order”
Fresh
“Be Fresh”
Prepare and sell quick food in a cleaner environment
“Have it your way”
Price Range for Meal Set
HK$ 20 – 30
HK$ 33 – 40
HK$ 58 – 68
HK$ 50 – 82
HK$ 27 – 40
Target Customer
Families with kids which are not spending much money on dining
Working class and people (especially female) who would like to have healthy food
Families with kids who are willing to spend money on higher quality of food.
Young working class who is willing to spend money on higher quality of food.
Working class which is not spending much money on dining

23. Problems Identification
Unclear Positioning
Ineffective Promotion
Very few advertisements in multi-media
Fail to show its unique characteristics

24. Market Segmentation Socioeconomic Characteristics Behavioral Variables
Target Market Segments
Upcoming Trend
Forecast & Positioning

25. Socioeconomic Characteristics

26. Socioeconomic Characteristics

27. Socioeconomic Characteristics27

28. Behavioral Variables Per week Male Female Eating Out - Breakfast
At Least Once
59.70%
46.80%
Others
40.30%
53.20%
Eating - Out Lunch
80.20%
63.90%
19.80%
36.10%
Eating - Out Dinner
55.20%
50.10%
44.80%
49.90%

29. Behavioral Variables Males Female Place for Eating Out Breakfast
Chinese Restaurant
63.20%
60.50%
Fast Food
29.30%
31.60%
Others
7.50%
7.90%
Place for Eating Out Lunch
63.40%
63.60%
24.40%
23.10%
12.20%
13.30%
Place for Eating Out Dinner
68.40%
65.80%
10.20%
8.80%
21.40%
25.40%

30. Behavioral Variables

31. Target Market Segments
THREE Target Segments:
Students
Male Working Class
Female Working Class

32. Upcoming Trend Population Life Style Aging Expanding workforce
Life Style
Busy life style, consumers look for fast-casual meals
Eating-out becomes more and more popular
Health
Overweight and Heart Diseases
Healthier fast food
Calories and nutrition information

33. Forecast & Positioning
The demand will be increased.
OUR POSITIONING
1) MEDIUM POSITION
2) RESONABLE PRICE
3) GOOD QUALITY

34. Recommendations

35. Recommendations Marketing Mix (4Ps)
Price
Provide the best deserved value to customers
Product
Expand product differentiation and innovation
Improve product & service quality
Place
Improve the environment of all restaurants
Promotion
Improve public brand awareness and perception
Reinforce our positioning
Marketing Mix (4Ps)
To increase year-on-year sales and traffic ! 35

36. Recommendations Phase 1 -- Brand Awareness & Driving Sales
Product differentiation
Promotion enhancement
Phase 2 -- Operation Improvement
Product quality control
Shops renovation and Express expansion
Phase 3 - Expansion & Customers Loyalty Enhancement
Product innovation
Expansion of shops
Promotion diversification
1st layer: 27, second layer: 23 36

37. Recommendations Phase 1 Phase 2 Phase 3 Menu with existing price
King of Burger King
Health Lovers Sections
1=2 Mini-burger campaign
Festival combo & promotion
Premium coffee
Closing some of the “out-of-focus” outlets
Low cost promotion (e.g. Online Marketing)
Phase 2
Burger King Mascot
Renovation on existing outlets
Favorite Burger King outlets
Most Burger
Giant Burger
Burger King Express
Road shows
Phase 3
“New Shop, New Hop” campaign
Larger scale advertising
Membership scheme (Loyalty Promotion)
New shops open in business districts or sight-seeing spots
Mass media advertising (e.g. TVC)
Charitable events 37

38. Implementations

39. Implementation - Product
More emphasize on American style giant size burger for niche markets
Create ‘Health Lovers Selections’
Include several salad selections
Sweet corn cup
Mixed-fruit box
Enhance students’ meal set 39

40. Implementation - Product
Offer decent coffee with higher prices
Target on mid-class customers in commercial districts
Increase the amount of each bill  increase sales 40

41. Implementation - Price
Keep its existing price
Good quality at reasonable price:
Food, Services and Environment
Increase customer satisfaction  positive word-of-mouth 41

42. Implementation - Place
Relocate some of the exiting branches in order to fit the company image
Close outlets in out-of-focus districts (e.g. Wong Tai Sin)
Open new outlets in commercial districts and sight-seeing spots
Suggested locations: Central, Stanley Market, SOHO East, etc. 42

43. Implementation - Place
Renovate the shop with warmer style
Offer a better dinning environment
Open Burger Express
Takeaway service only
Target to capture potential sales during lunch hours
Located in commercial districts 43

44. Implementation - Promotion
Campaigns
Pilot trial
Seasonal
Long-term
Public Relations
Product / Feature release (on product)
Corporate release (on brand) 44

45. Implementation - Promotion
Advertising
Printed ads focusing on brand awareness and festival product promotions
Barter advertising, Joint promotion advertising
Online Marketing
Online media: Facebook, 微博, Youtube, etc.
Sales Promotion & Direct Marketing
Coupon distribution on seasonal promotions
Free tasting
Group sales
Seasonal / Festival special (+$5 get a premium coffee) 45

46. Implementation - Phase 1
Brand-building Campaign Series
“Every Day is Burger Day”
Q1 to Q4
Theme song
iBurger
“CHEF OF THE BURGER KING”
Printed ads and advertorial on
Viral video (youtube)
Facebook , 微博
Online games / Apps 46

47. Implementation - Phase 1
1=2 Mini-burgers Campaign
Q2-Q3
“1份變2份，1人食2人分，滋味爆FUN”
Advertising
Print ads & advertorials on free newspapers & food magazines
Online Marketing
Share your favorite combo on fb
PR – product features
Free line up with media
Sales Promotion
Free tasting
Coupon distribution
Group sales + =
Less is More
Choose your favorite combination
Mini Burger 47

48. Implementation - Phase 1-3
Seasonal / Festival Campaigns
Halloween “爆趣哈囉喂”
Q4 every year
Advertising
Printed, Online
Online Marketing
Contests in making funny and scary Halloween burgers
Public Relations
Sales Promotion 48

49. Implementation - Phase 2
Your Favorite Burger King Outlet Campaign Series
Mascot design contest
Renovating existing outlets
Most-LIKE burger set
Advertising
TVC ; Printed
Online Marketing
Mascot vote
Shop Decoration game
Most-like burger set vote
Public Relations
Roadshow with Burger King Buddy
Sales Promotion 49

50. Implementation - Phase 3
“New Shop, New Hop” Campaign Series
Membership Scheme
Customized EDM or personal video
Membership special
Free coupons for purchasing in new shops
Favorite Burger King outlet
Charitable Event
Donate $1 to Elderly Care Associations upon every purchase
PR & Advertising
TVC, Outdoor/Transportation
Celebrity tasting
Online Marketing
Apps (order, promotion, game)
FB / online voting 50

51. Implementation - Timeline51 51

52. Promotion Timeline 52 52

53. Budgeting Target revenue increment:
16% in 2012, 20% in 2014, 25% in 2016
Budgeting in 2012 (Phase 1): HK$ 3M
Online marketing – 15 %
Printed media – 50%
Sales promotion – 25%　　　　　　　　  Public Relations – 10%
Budgeting in (Phase 2): HK$ 10M
Express expansion & renovation – 40%　　  Sales promotion – 5%
TV commercial – 20%　　　　　　　　　　 Online marketing – 10%
Printed media – 15%　　　 　　　　　  Public Relations – 10%
Budgeting in (Phase 3) : HK$ 25M
Expansion on outlets – 50 %　　　　　　　 Sales promotion – 10%
Printed media – 10%　　　 　　　　　  Public Relations – 10%
Fiscal Year (approx.) (end as of June)
2011
2010
Sales volume
144M
124M
% increased
16.13%
Targeting profit
42M 53

54. Reference
Burger Consumer Trend Report: Attitude and Usage Study. Technomic, Inc. Accessed 26 November, 2011 <
“Burger King”. Wikipedia, the free encyclopedia in English. Accessed 22 November, <
“Burger King”. Wikipedia, the free encyclopedia in Chinese. Accessed 22 November, <
“Burger King Mission Statement”. Mission Statement and Vision Statements. Samples-help.org.uk. Accessed 22 November <
“Burger King® To Expand in Hong Kong and Enter Macau”. Business Wire. 23 March Available on AllBusiness.com. Accessed 20 November <
“Company Overview”. Burger King® Corporation. Accessed 20 November, <
"DATAMONITOR: Burger King Case Study." Burger King Case Study: Targeting The Superfan As A Means Of Retaining Growth In The Fast Food Market. 2009:p1-10. Available on Business Source Complete, EBSCOhost. Accessed 22 November 2011.
"DATAMONITOR: Burger King Corporation." Burger King Corporation SWOT Analysis. London: Datamonitor Public Limited Company. 3 Jun p1-10. Available on Business Source Complete, EBSCOhost. Accessed 22 November 2011.
Developed Asia Pacific: Economic Review September Thomas White International. Accessed 23 November, <
“Fast Food Survey”. Quibblo online quizzes platform. August Accessed 23 November, <

55. Reference
“Hong Kong Statistics”. Census and Statistics Department of the HKSAR Government. Accessed 26 November <
“HRI Food Service Sector in Hong Kong”. Global Agricultural Information Network Report. USDA Foreign Agricultural Service. 3 September Accessed 24 November <
Lee, Moonkyu & Ulgado, Francis M. (1997) “Consumer evaluations of fast-food services: a cross-national comparison”. The Journal of Services Marketing. 11.1: 39-52
“Management Discussion and Analysis”. Annual report 2010/11. North Asia Strategic Holdings Limited. 28 June 2011: Accessed 22 November <
“Marketing research of Burger King in Hong Kong market”. My3q online questionnaire platform. November Accessed 23 November, <
“Portfolio Companies”. North Asia Strategic Holdings Limited. Accessed 20 November <
“The minimum wage debate”. Time Out Hong Kong. Time Out Group Ltd. 12 April 2011: 2. Accessed 24 November <
Competitor’s websites
Mos Burger Hong Kong. Accessed 21 November, <
Freshness Burger Hong Kong. Accessed 21 November, <
McDonald Hong Kong. Accessed 20 November, <
Triple O’s Hong Kong. Accessed 22 November, <

56. Q & A Section