Cai Ruihong Liew Jia Yin Cordelia Han Xinxuan Giam Jer Min Nicole Neo Ji Kwang (Marcus)

Agenda for Today

Background Current Market Situation Promotion Mix SWOT Analysis Recommendations Analysis

Background
Fast Food Hamburger Restaurant in Quick Service Restaurant segment 2nd largest fast food hamburger restaurant chain 12,200 outlets in 73 countries Market Challenger (14.4% Market Share)

Competition
Primary (Burger QSRs) Mcdonalds Wendys Secondary Sandwich QSRs Pizza/pasta QSRs Chicken QSRs

Segment Rank

2010 QSR 50 Rank

Chain

U.S. Systemwide Sales 09 (millions)

U.S. Average Annual Sales Per Unit 09 (Thousands)

Franchised/ Licensed Units 09

CompanyOwned Units 09

Total Units 09

Burgers
1 1 McDonalds $31,000.0 $2,350.0 12,402 1,578 13,980

Burger King

$9,000.0

$1,240.0

6,333

917

7,250

Wendys*

$8,388.0

$1,422.0

4,622

1,255

5,877

10

Sonic

$3,837.4

$1,093.0

3,069

475

3,544

13

Jack In The Box

$3,072.1

$1,420.0

1,022

1,190

2,212

Current marketing situation

Market Segment 18 34 year old males Super Fans Communication objective

Current marketing strategy

Designing a message
Rational appeal - HAVE IT YOUR WAY. Emotional appeal Manliness & Humor

Current marketing strategy

Media
Personal Communication Channel
Subservientchicken.com word-of-mouth

Non-personal Communication Channel

Broadcast Media Commercials Online Media - Interactive Websites, Social Websites Xbox Games - Big Bumpin', Sneak King

Market Challenger Strategies

Full-frontal attack
Mcdonalds

Advertising Sales Promotion Public Relations

Advertising Sales Promotion Public Relations

Promotion Mix

 Wacky advertising and new-media initiatives - Mascot

Promotion Mix

Promotion Mix

Promotion Mix

Subservient chicken www.subservientchicken.com

Promotion Mix

Whopper Freakout

Promotion Mix

Promotion Mix

Promotion Mix

SWOT Analysis

Strengths

Weaknesses

Opportunities

Threats

Strengths
Value-add HAVE IT YOUR WAY
Differentiated products: value meals, kids meals, veggie burger

SWOT Analysis

Strengths
Value-add HAVE IT YOUR WAY
Size of the BKs burger is bigger (more for the same)

SWOT Analysis

Strengths
Value-add HAVE IT YOUR WAY
Customization of your burger

SWOT Analysis

Weaknesses
Too much focus on the Super Fans
Capture a smaller share of the market

Alienating other market segments

SWOT Analysis

Weaknesses
Most advertisements are only targeted at Super Fans
Gender-oriented Elements of sexual connotations

SWOT Analysis

SWOT Analysis

Opportunities
Smarter Target Segmentation
18-34 years old females Teenagers/children Countries where there are currently no BK outlets
SWOT Analysis

Opportunities
Consumers are increasingly conscious of the environment
BK can focus on marketing its environmentallyfriendly practices Eg. BK currently holds Green Sessions for employees & none of its beef comes from recently deforested tropical rainforests

SWOT Analysis

Threats
Competitive market (McDonalds & Wendy)
BK might lose its existing base of loyal customers

Runs the risk of a boycott

Advertisements can be offensive to different groups of consumer

Factors affecting their ingredients

Outbreak of food-borne diseases
SWOT Analysis

Recommendations

Recommendation #1

Positive Externality

Desirable Image
Dilution of Brand Equity? Expanding Target Market

Recommendation #2
Smaller Sized Burgers

Value Add: Tailored Product

BK Delivery

Distribution Channel (Place): Extend Reach

Sales Promotion
Promotes Healthier Alternatives

Free Salad

Free Drink Choice

Better Customer Relationship Management

2 Way Communication

Recommendation #3

1. Advertisements: Television

2. Public Relations: Buzz (viral) Marketing

Enhance Promotion Mix

1. Public Relations Celebrity Endorsement Campaigns 2. Sales Promotion

Event Marketing
a. Eliminates Media Noise b. Boost Internal Morale c. Lower Cost d. Credibility

a. Lower Cost b. Credibility

Analysis

18 to 34-year old males

#1 18 to 34-year old males & females

Ever-changing needs
Past Now Future

Market Research Viral Marketing

18 to 34-year old

Dilute manly image Risk losing original male superfans

13.5% males + 13% females

Similarities between males and females

Expand market share Leverage market competitiveness

18 to 34-year old

Receptivity of females towards new menu

Simulate market testing

18 to 34-year old

#2
Smaller-sized Burger Loyalty Card Delivery Service

Runs the risk of promoting unhealthy eating habits

Subtly encourage and create awareness on healthy eating Improve Burger Kings customer relationship management
Sales Promotion Loyalty Card

 Track record of its loyal customers Save cost on market research

Sales Promotion Loyalty Card

 Increase accessibility Test marketing

Sales Promotion Delivery Service

#3 Enhance Promotion Mix

Celebrity Endorsement Event Marketing

Brand becomes in sync with a particular figure

Benefits outweigh risks Lower cost for comparative coverage

Public Relations Celebrity endorsements

No standardized solutions Difficulty in evaluations Inflexibility in event planning Engage more in planning, execution and evaluation

Public Relations Event Marketing

Increase market share Increase market potential Better promotion mix

References
Burger King Markets Western Angus Steak Burger <http://www.creativemag.com/signg305.html> Burger King Takes a Product From TV to the Table <http://www.nytimes.com/2005/01/21/business/media/21adco.html?_r=1> Bruce Horovitz Burger King of Cool? USA Today. 27 July 2007 < http://www.usatoday.com/money/industries/food/2007-02-06-burger-king-usat_x.htm> Allison Fass A kingdom seeks magic Forbes.13 October 2006 < http://www.msnbc.msn.com/id/15209706/> Sandra OLoughlin Burger King Turns Up the Heat (March, 2009) < http://www.eventmarketer.com/article/burger-king-turns-heat> Darren Herman Media Consumption: 18-34 Year Olds. 17 November 2005 < http://adholes.com/postings/b23b7233ba5ca8704f5f761d256f9742> Newton, MA Wired Young Men Spend As Much Time Online As Watching Television, Avvording To A Landmark Study From Copernicus. Copernicus Marketing. 25 October 2000 < http://www.copernicusmarketing.com/about/espn.shtml> The Dangers of Celebrity Endorsements < http://www.sixwise.com/newsletters/05/04/12/the-dangers-of-celebrity-endorsements.htm> QSR magazine Burgers <http://www.qsrmagazine.com/reports/qsr50/2010/burgers.phtml> Jessica Eriksson, Anna Hjalmsson. "Event Marketing as a Promotional Tool; A case Study of four Companies" Lulea Tekniska Universitet 24 January 2000 pp. 20-23 <http://www.scribd.com/doc/25838443/Event-Marketing-as-a-Promotion-Tool>

Seth Stevenson. The return of the king. Burger King is ressurecting a dubious icon. Why?<http://www.slate.com/id/2107697/ (assessed on 04 November 2010)> Region, By. "Region Summary - U.S. Census Bureau." Census Bureau Home Page. Web. 20 Nov. 2010. <http://www.census.gov/ipc/www/idb/region.php>.