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HBM110N Fundamentals of Marketing, Semester One, 2011 Executive Summary Burger King (BK) is an internationally renowned hamburger fast food restaurant headquartered in Miami-Dade Country, Florida, United States. It currently has 20 outlets in Malaysia. Commissioned by BK, this report focuses on an initial analysis of the current industry and market situation in Malaysia for assessing the feasibility of expanding BK to Sarawak. Therefore, the Marketing Management Process; market analysis, planning, implementation and control, stated by Kotler et al. (2009, p. 54), is carried out through provision of industry definition, analyzing of current market opportunities and target market selection. The industry definition categorized BK as one of the fast food outlet under food services in the hospitality industry. To evaluate current marketing opportunities, the main competitors are being identified. On the other hand, macro environmental analysis and SWOT analysis are being conducted to obtain a better understanding of the internal and external factors. Besides, consumer behavior is being analyzed and it includes decision making process and buying decision behavior. Further marketing research is also done through 4 steps of marketing research process for better understanding of the problems faced by BK in the current market. For selection of target market, choice of segmentation base is justified demographically (age and income). Then, a table representing the profile of segments is generated. The

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Page 1: 110957060 Launching BK in Sarawak

HBM110N Fundamentals of Marketing, Semester One, 2011

Executive Summary

Burger King (BK) is an internationally renowned hamburger fast food restaurant

headquartered in Miami-Dade Country, Florida, United States. It currently has 20 outlets in

Malaysia. Commissioned by BK, this report focuses on an initial analysis of the current

industry and market situation in Malaysia for assessing the feasibility of expanding BK to

Sarawak. Therefore, the Marketing Management Process; market analysis, planning,

implementation and control, stated by Kotler et al. (2009, p. 54), is carried out through

provision of industry definition, analyzing of current market opportunities and target market

selection.

The industry definition categorized BK as one of the fast food outlet under food services in

the hospitality industry. To evaluate current marketing opportunities, the main competitors

are being identified. On the other hand, macro environmental analysis and SWOT analysis

are being conducted to obtain a better understanding of the internal and external factors.

Besides, consumer behavior is being analyzed and it includes decision making process and

buying decision behavior. Further marketing research is also done through 4 steps of

marketing research process for better understanding of the problems faced by BK in the

current market.

For selection of target market, choice of segmentation base is justified demographically (age

and income). Then, a table representing the profile of segments is generated. The selected

market segments are being evaluated and a market coverage strategy is being proposed.

Positioning strategies are suggested as a basis to build relationship between BK and its

customers. There are also strategic recommendations based on 4 marketing mix which

suggest marketing strategies to attract customers.

The short and long term projection of BK is also estimated to predict the feasibility of the

expansion, assuming that all the suggested marketing strategies are implemented

appropriately.

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HBM110N Fundamentals of Marketing, Semester One, 2011

Table of Contents

1 Introduction and Overview..................................................................................................1

1.1 Introduction to the Report...........................................................................................1

1.2 Industry Definition......................................................................................................1

2 Analysing Marketing Opportunities...................................................................................2

2.1 Competitor Overview..................................................................................................2

2.1.1 McDonald’s.....................................................................................................2

2.1.2 Kentucky Fried Chicken (KFC)......................................................................2

2.1.3 SugarBun.........................................................................................................2

2.1.4 Pizza Hut.........................................................................................................2

2.2 Macro Environmental Analysis...................................................................................4

2.3 SWOT Environmental Analysis..................................................................................5

2.3.1 Opportunities...................................................................................................5

2.3.2 Threat..............................................................................................................5

2.3.3 Weaknesses.....................................................................................................6

2.3.4 Strength...........................................................................................................6

2.4 Consumer Behavioral Analysis...................................................................................6

2.4.1 Decision Making Process................................................................................6

2.4.2 Buying Decision Behavior..............................................................................7

2.5 Further Marketing Research........................................................................................7

3 Selecting Target Market.......................................................................................................8

3.1 Justification for Choice of Market Segmentation Base...............................................8

3.1.1 Age..................................................................................................................8

3.1.2 Income.............................................................................................................8

3.2 Profile of Market Segmentation..................................................................................9

3.2.1 Age..................................................................................................................9

3.2.2 Income...........................................................................................................10

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HBM110N Fundamentals of Marketing, Semester One, 2011

3.3 Target Market Choice and Justification....................................................................10

3.3.1 Evaluation of Market Segments....................................................................10

3.3.2 Market Coverage Strategies..........................................................................12

3.4 Proposed Positioning Strategy..................................................................................12

3.4.1 Positional Direction.......................................................................................12

3.4.2 Competitive Advantages...............................................................................13

3.5 Strategic Recommendations......................................................................................14

3.5.1 Product..........................................................................................................14

3.5.2 Price...............................................................................................................14

3.5.3 Distribution (Place).......................................................................................14

3.5.4 Promotion......................................................................................................14

3.6 Short and Long-Term Projection..............................................................................15

4 Conclusion............................................................................................................................16

5 References............................................................................................................................17

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HBM110N Fundamentals of Marketing, Semester One, 2011

1 Introduction and Overview

1.1 Introduction to the Report

Burger King (BK) Malaysia is considering whether to expand to Sarawak and we have been

commissioned to conduct an initial analysis in the Malaysian market. Therefore, this

preliminary marketing report is developed to give recommendations to BK Malaysia

regarding the feasibility and profitability of their expansion. The business targets at kids,

teens and adults. The business may be operated by Cosmo Restaurant Sdn Bhd since they

own the most franchises of BK in Malaysia.

1.2 Industry Definition

Figure 1 Industry Definition for BK (Stanley St Labs n.d.)

Figure 1 above shows industry definition for BK. It is started with hospitality industry that is

divided into four categories; leisure, accommodations, food services and tourism. The food

services are then divided into cafes, restaurants, fast food outlets, public houses and night

clubs. Based on Figure 1, BK is under the fast food outlets category.

Launching Burger King in Sarawak 1

Hospitality Industry

Leisure

Accommodations

Food Services

Cafes

Restaurants

Fast Food Outlets

McDonald's

KFC

Sugarbun

Pizza Hut

Burger King

Public Houses

Night Clubs

Tourism

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HBM110N Fundamentals of Marketing, Semester One, 2011

2 Analysing Marketing Opportunities

2.1 Competitor Overview

Based on industry definition shown in Figure 1, some of the most popular fast food outlets in

Malaysian market are McDonald’s, Kentucky Fried Chicken (KFC), SugarBun and Pizza

Hut. These fast food outlets will be the main competitor for BK in the market.

2.1.1 McDonald’s.

McDonald’s is famous for their hamburger and they are the world’s largest chain of

hamburger fast food outlets. Some of the marketing strategies conducted by them are such as

giving out free Coca-Cola Can Glass to the customers if any large McValue meal is

purchased with a sundae. If customers come to the outlets between 12pm to 3pm, the

McValue lunch set will be cheaper. Also, they have a weekday breakfast special promotion

set whereby the price starts from RM4 and there are free refills for dining in customers

(Golden Arches Restaurants Sdn. Bhd n.d.).

2.1.2 Kentucky Fried Chicken (KFC).

KFC is well-known for their fried chicken that is cooked with 11 types of herbs and spices.

Besides chicken they also sell rice, porridge, burger, desserts, soup and some beverages. The

only thing that KFC lacks in the menu is noodle or pasta. To compete with McDonald’s, KFC

offers breakfast set that starts with similar price which is RM4. Other marketing strategies

used by KFC are such as coming out with chicken chop sets which cost RM9.90 and lunch

treats that cost less than RM6 (KFC Holdings (Malaysia) Bhd n.d.).

2.1.3 SugarBun.

SugarBun is known for selling variety of foods such as pizza, spaghetti, pasta, chicken,

burger, rice, dessert, beverage in Sarawak. So far, SugarBun has not used any significant

marketing strategies other than regenerating new menu which offers variety of foods

(SugarBun Corporation Bhd n.d.).

2.1.4 Pizza Hut

According to the menu of Pizza Hut Restaurants Sdn. Bhd. (n.d.), they sell pasta, chicken,

soup, rice dessert and beverages but not burger. The most recent marketing strategy used by

Pizza Hut is the 50% discount on selected foods and it is being offered from Monday to

Launching Burger King in Sarawak 2

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HBM110N Fundamentals of Marketing, Semester One, 2011

Friday. Another promotion is the Sensasi Delight set whereby extra 25% of cheese is added

without extra cost.

Table 1 below shows approximate market shares of the major competitors in Malaysia and in

Sarawak with regard to the number of outlets. It can be seen that KFC is the largest

competitor at both national and state level. SugarBun is focused mainly in Sarawak and it has

the second biggest market share. Pizza Hut and McDonald’s have about the same market

share in whole Malaysia but there is more Pizza Hut than McDonald’s in Sarawak.

Table 1. Main competitors and their approximate market shares in whole Malaysia and in

Sarawak (KFC Holdings (Malaysia) Bhd n.d., SugarBun Corporation Bhd n.d., Pizza Hut

Restaurants Sdn. Bhd. n.d. & Golden Arches Restaurants Sdn. Bhd n.d.)

Main

competitors

Total number

of outlets in

Malaysia

Approximate market

share in Malaysia in

terms of number of

outlets (%)

Total number

of outlets in

Sarawak

Approximate market

share in Sarawak in

terms of number of

outlets (%)

KFC 500 54 36 45

SugarBun 27 3 26 32.5

Pizza Hut 204 22 12 15

McDonald’s 200 21 6 7.5

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HBM110N Fundamentals of Marketing, Semester One, 2011

2.2 Macro Environmental Analysis

Kotler et al. (2009, p. 89) stated that macro environment analysis consists of six forces which

are demographic, economic, natural, technological, political and cultural forces. Analysis

implications for the macro environmental forces are shown in Table 2 below.

Table 2. Types of Macro Environmental Analysis

Main forces of Macro

environment Analysis and Implications

Demographic

Environment

Lee (1996) stated that the expanding population of Malaysia will

influence the demographic environment.

Based on a survey done by MYB (n.d.), BK has taken up to

12.73% votes from citizens of Malaysia as their second favorite

fast food restaurant. Thus, launching of BK in Sarawak is

favored in terms of the demographic environment.

Economic

Environment

Primary targets of BK can be upper and average class which

have more disposable income.

Currently, unemployment rate in Malaysia is about 5%

(Wikipedia n.d.). To minimize future economic depression, BK

should take initiative to monitor interest and unemployment rate.

BK should consider fuel price fluctuation and fuel crisis since

the fuel price is unstable in Malaysia (Scribd 2009).

Natural Environment

Due to agricultural and industrial development in Malaysia,

natural environment has been placed in danger (ThinkQuest

n.d.).

BK can use recycled paper to wrap hamburgers and therefore

reduce the usage of raw materials such as timber.

BK can also use paper instead of polystyrene boxes due to

increased pollution (Kotler et al. 2009, p. 89).

Technological

Environment

Along with increase in application of technology in Malaysia’s

food industry, BK should use computer ordering system to speed

up their customer service.

To improve product quality and services, BK should invest in

technological innovations (Scribd 2009).

Political Environment Malaysia is a Muslim country and therefore the issue of Halal

Launching Burger King in Sarawak 4

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HBM110N Fundamentals of Marketing, Semester One, 2011

and Haram should not be taken lightly by BK. Thus, they should

make sure that no pork is served if they want to attract Muslim

customers (Scribd 2009).

Also, BK has to follow health and safety procedures that have

been set by the Malaysian government (Kotler et al. 2009, p.

89).

Cultural Environment

Mirandah (2008) revealed that one in every five adults in

Malaysia is either overweight or obese due to their own cultural

environment. Thus, BK’s grilled patty with lower fat content

compared to fried patty is less fattening and is healthier.

The market is more likely to buy fast food if they are concerned

with convenience and fast services. In contrary, they are less

likely to buy fast food if they are concerned with fitness and

health (Kotler et al. 2009, p. 89).

2.3 SWOT Environmental Analysis

SWOT stands for strengths, weaknesses, opportunities, and threats. To meet the needs of the key

market it is important to analyse the internal marketing strengths of the organisation. Strengths

and weaknesses must be identified, so that a marketing strategy which is right for the business

can be decided upon. Once the strengths and weaknesses are determined, they are combined with

the opportunities and threats in the market place. This is known as SWOT analysis. SWOT

analysis is a tool for auditing an organization and its environment. It is the first stage of planning

and helps businesses to focus on key issues. Once key issues have been identified, they feed into

marketing objective.

According to Kotler et al. (2009, p. 58), SWOT is used to classify the opportunities, threats,

strength and weaknesses that a product faces, which in our case refers to products of BK.

2.3.1 Opportunities

Marketing Teacher Ltd (n.d.) claims that BK has taken initiative in developing new breakfast

food since they do not have one. They are also planning to provide a new healthier menu

items for consumers to increase their opportunities in the market.

Launching Burger King in Sarawak 5

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HBM110N Fundamentals of Marketing, Semester One, 2011

2.3.2 Threat

According to the Malaysian Industrial Development Authority (2009), there is an increase of

demand for organic food due to increasing number of consumer awareness in health and

nutrition value. So, consumer habits may change towards healthier food choices. Also, it will

be difficult for BK to penetrate through the market during its initial stages since there are

intense competitions from the competitors.

2.3.3 Weaknesses

Marketing Teacher Ltd (n.d.) suggested that the major weakness for BK is that they rely

heavily on franchise to execute their brand promises.

2.3.4 Strength

The biggest strength for BK is they have 58 years of experience in running a fast food

restaurant that dates back to 1954. Also, BK is the world’s second largest hamburger fast

food outlets and has strong brand equity. Other than that, Marketing Teacher Ltd (n.d.) stated

that approximately 90% of the BK’s outlets are owned through franchising. Thus, BK can

expand their company with minimum cost and at the same time collect extra money from the

franchises.

2.4 Consumer Behavioral Analysis

According to Kotler et al. (2009, p. 163), factors influencing consumer behavior include

Psychological, Personal, Cultural, Social, Buyer’s responses, Environmental influences and

Marketing programs.

In terms of psychological influences, people feels motivated to visit fast food restaurants they

have perception that fast foods are tasty, clean, convenient, fast and fresh. With regard to

personal influences, people are getting busier nowadays and they tend to have their meals

faster. Thus, a lot of people have adapted fast food as part of their lifestyle. In terms of

cultural and social influences, Malaysia comprises a multiracial and multicultural society.

Since all fast foods are halal in Malaysia, majority of the kids, teens and adults from different

races have been to fast food restaurants regardless of their cultural and social backgrounds.

Launching Burger King in Sarawak 6

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HBM110N Fundamentals of Marketing, Semester One, 2011

2.4.1 Decision Making Process

According to Kotler et al. (2009, p. 177), the 5 buyer decision processes in sequence are Need

recognition, Information search, Evaluation of alternatives, Purchase decision and Post

purchase evaluation. First, consumer may feel hungry and develop desire for fast foods.

Consumer will then search for information such as the location of available fast food outlets,

their operating hours, the menus, special offers and deals. Then, consumers will evaluate

between different fast food alternatives such as Pizza Hut, SugarBun, Kentucky Fried

Chicken (KFC) or McDonald’s. After an alternative is chosen, consumer will proceed to the

chosen fast food outlet to fulfill his purchase decision. After the purchase, consumers will

either be satisfied or dissatisfied according to their expectations of the foods.

2.4.2 Buying Decision Behavior

Having meals at BK is considered a low involvement purchase because it is inexpensive and

it requires less thought and effort. The associated buying decision behavior could be habitual

or variety-seeking buying behavior. Whilst some consumers tend to order the same food each

time they visit BK, some may want to switch between different burgers, side dishes or drinks.

2.5 Further Marketing Research

Marketing research is defined as “The function that links the consumer, customer and public

to the marketer through information that is used to identify and define marketing

opportunities and problems; to generate, refine and evaluate marketing actions; to monitor

marketing performance; and to improve understanding of the marketing process.” (Kotler et

al. 2009, p. 127). Market research is crucial for analyzing marketing opportunities,

identifying actual problems and needs of the marketplace. According to Kotler et al. (2009, p.

130), the 4 steps of marketing research process are defining the problem and the research

objectives, developing the research plan, implementing the research plan, interpreting and

reporting the findings.

Major competitors are defined as a problem. Thus, the associated research objective is to

identify the major competitors and their current market share, as demonstrated in Table 1.

Secondary data regarding number of outlets were collected from their official websites.

According to our observation, the menu prices for BK are generally more expensive

compared to its competitors. This can be the biggest problem encountered by BK if the

Launching Burger King in Sarawak 7

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HBM110N Fundamentals of Marketing, Semester One, 2011

expansion is established. The second problem is the taste and wants, likes and dislikes of our

target group (kids, teens and adults). Thus, our objective is to conduct detailed survey on

these aspects of our target group. Primary data can be gathered through observation, survey

or experiment as part of the research plan (Kotler et al. 2009, p. 136-140). Secondary data

may also be useful. After relevant data has been collected, they shall be interpreted and

corresponding measures have to be carried out to improve customer value and to fulfill their

taste and wants as much as possible.

3 Selecting Target Market

3.1 Justification for Choice of Market Segmentation Base

Kotler et al. (2009, p. 230) stated that they are four main bases that can be used to analyze

market segmentation, which are geographic, demographic, psychographic and behavioural

segmentation. Age and income are two variables of demographic that will be used to segment

BK market.

3.1.1 Age

Needs and desires of consumers vary with age; in this case we will divide age into three

segments which are kids, teens and adults (Kotler et al. 2009, p. 232). In general, kids can

easily be reached because they will influence their parents’ buying decision especially when

they go out for lunch or dinner. The market is large for this segment since kids are easily

attracted to new products. Teens consist of age group that is between 10 to 20 years old. It is

common for them to have their lunch at a fast food outlet because the place is comfortable

and safe to hang out (MunFitnessBlog 2008). Adults have the highest purchasing power since

their incomes are fixed. This segment of group can also be reached and served easily.

3.1.2 Income

Kotler et al. (2009, p. 232) also proposed that market segmentation can be done by dividing

the market into different income groups such as low, medium and high income earners.

Group with lower income has lower purchasing power and therefore BK can propose to sell

some products at a lower price. Group with medium income is larger and they are easily

reachable. Group with high income has higher purchasing power compared to low and

medium groups, thus they can afford more expensive products and will tend to spend more.

Launching Burger King in Sarawak 8

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HBM110N Fundamentals of Marketing, Semester One, 2011

3.2 Profile of Market Segmentation

Table 3 and Table 4 below show profiles of market segmentation in terms of demographic

segmentation. Market can be segmented in many ways but not all segmentations are

effective. According to Kotler et al. (2009, p. 240), market segments must be measurable,

accessible, substantial and actionable in order to be effective.

Table 3. Age Profile

Age Description Lifestyle

Kids Below 10 years old Highly active

Seeking fun

Youngters Between 10 and 20 years old Highly sociable

Seeking confidence

Adults Above 20 years old

Heavy users

Active at work and socializing, seeking

assurance

Table 4. Income Profile

Income Description Lifestyle

Low Earn below RM1000 Light users

Medium Earn between RM1000 and RM3000 Medium users

Average spending

High Earn above RM3000 Heavy users

3.2.1 Age

Adults and teens are more accessible compared to kids who do not have purchasing power.

BK has taken some action such as providing set meal for kids, lunch set meal for teens and

adults. In addition, adults and teens have the highest substantiality because they are the ones

who would usually spend money. However, it is difficult to measure the expenditures of kids,

teens and adults since there are no relevant or specific records (Kotler et al. 2009, p. 240).

Launching Burger King in Sarawak 9

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HBM110N Fundamentals of Marketing, Semester One, 2011

3.2.2 Income

Low, medium or high income profile can easily be identified and measured because there are

data on the demographic income in database of a company. The income profile is also

substantial since this segment of market is large and profitable as it targets almost every

individual. Also, it will be easy for BK to obtain the income profile if relevant advertisement

is carried out (Kotler et al. 2009, p. 241).

3.3 Target Market Choice and Justification

3.3.1 Evaluation of Market Segments

Since market segmentation has been analyzed, age and income segment should be evaluated

to decide on the segment that is most servable. Kotler et al. (2009, p. 241) stated three factors

that are crucial in evaluating market segmentation; segment size and growth, segment

structural attractiveness, company objectives and resources. Factors affecting structural

attractiveness are competitors, substitute products, power of buyers and power of suppliers

(Kotler et al. 2009, p. 242). Table 5 in the next page shows market segments evaluation.

Launching Burger King in Sarawak 10

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HBM110N Fundamentals of Marketing, Semester One, 2011

Table 5. Market Segments Evaluation (Kotler et al. 2009)

Market

Segment

Segment

Size and

growth

Structural AttractivenessCompany Objectives &

Resources

Kids Small

Competitors: McDonald’s, KFC, Pizza Hut,

SugarBun and other food outlets.

Substitute Products: Kids set meal of

McDonald’s and KFC may be the substitute

as they give free toy. As for teens and adults,

foods from other fast food or non fast food

outlets (competitors) will comprise the

substitute.

Power of Buyers: Customer is fragmented

with little bargaining power, BK faces weak

buying power.

Power of Suppliers: Strong supply power

since BK has supplier for all franchise in the

world.

Structurally attractive.

Matches BK’s long run

objectives. BK has the skills

and resources to succeed over

its competitors in these

segments.

Teens

Large

Adults

Low

IncomeSmall

Competitors: Cafe, Coffee shop and public

house or other fast food outlets.

Substitute Products: Other fast food or non

fast food outlets that sell cheaper food

compared to BK.

Power of Buyers: Since customers are

fragmented and has little influence on the

price or product, BK faces weak buying

power.

Power of Suppliers: Strong supply power

since BK has supplier for all franchise in the

world.

Structurally attractive.

Matches BK’s long run

objectives. BK has the skills

and resources to succeed over

its competitors in these

segments.

Medium

Income

LargeHigh

Income

3.3.2 Market Coverage Strategies

With respect to Kotler et al. (2009, p. 242), BK should decide on the number of segments that

they intend to serve after evaluating different types of market segments. There are three types

of market coverage strategies, namely undifferentiated, differentiated, and concentrated

marketing. However, only differentiated strategy will be adopted whereby each market

segments is provided with unique offers and promotions. By targeting different market

segments, BK can achieve higher sales and a stronger stand in each market segment.

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Extensive personalized serviceLimited serviceLess personal

High perceived quality and status

Low perceived quality and status

Sugarbun

McDonald’s

Pizza Hut

Kentucky Fried Chicken (KFC)

BK

HBM110N Fundamentals of Marketing, Semester One, 2011

3.4 Proposed Positioning Strategy

Based on market segmentation, age and income will be adopted as BK’s market segments.

Kotler et. al. (2009) stated that “a positioning strategy attempts to differentiate the offer from

its competitors on attributes or benefits considered important by a target market”.

3.4.1 Positional Direction

The factors that will be used to differentiate BK from its competitors will be based on

service, quality and status. Figure 2 shows BK position among its competitors. Figure 3

shows repositioning moves necessary for BK to appeal more closely to its specific segments.

Launching Burger King in Sarawak 12

Figure 2 Fast food outlets positioning

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HBM110N Fundamentals of Marketing, Semester One, 2011

Extensive personalized service

Limited service

Less personal

Low perceived quality and status

Sugarbun

McDonald’s

Kentucky Fried Chicken (KFC)

BK

Pizza Hut

Figure 3 BK’s position after repositioning

3.4.2 Competitive Advantages

Competitive advantages can be differentiated based on product, personnel, image or services

(Kotler et al. 2009, p. 250). Based on the market segments, product differentiation will be

chosen as a means of competitive advantage. Therefore, BK should have more advantages on

its products compared to its competitors.

Below are some advantages of BK products:

BK take precautions to make sure that their food is safe and the procedures for the

food preparations are constantly followed (BK Corporation 2009).

BK offers more than 350 unique meal combinations which contains little or more than

650 calories (BK Corporation 2009).

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3.5 Strategic Recommendations

Strategic recommendations for BK will be made based on the marketing mix which consists

of product, price, distribution (place) and promotion (Kotler et al. 2009, p. 407).

3.5.1 Product

BK should offer “Have It Your Way” brand promise to its consumers in Malaysia. Based on

BK Corporation (2009), “Have It Your Way” brand promise allowed teens and adults to

customize the size of their own meal portion, which also allowed changes in calorie content

of their meals. For example, they can customize their meals by ordering a Whopper sandwich

without mayonnaise. Based on BK Corporation (2009), “Have It Your Way” brand promise

allowed kids and their parents to choose a beverage, side dish and an entrée, such as fat free

milk and BK Fresh Apple Fries.

3.5.2 Price

Price for meal customizations will be low during its promotional stage and discounts will be

given for every meal customizations despite the costly advertising and promotional activities.

During this stage, BK will make high profit. Prices of products that are used in meal

customizations are going to be stabilized to remain competitive.

3.5.3 Distribution (Place)

The distribution channels for BK’s product are BK’s outlets in Malaysia. Transportation

modes such as motorcycles and vans can be used to deliver foods to customers who do not

dine inside the restaurants.

3.5.4 Promotion

Growth of BK relies heavily on effective promotion and advertising. A lot of money will be

invested during the promotional stage of BK’s “Have It Your Way” brand promise.

Promotion of the product will be conducted in the form of advertisements such as television

commercials, billboards, leaflets, banners and newspapers such as The Star, The Borneo Post,

Harian Metro and The Times. BK can also to promote themselves as having ‘bigger portion’

or having distinctive ‘flame-broiled burgers’ to distinguish themselves from their

competitors. Projected outcomes of the promotional programs are going to be favorable if

the promotional and advertising activities run smoothly.

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3.6 Short and Long-Term Projection

Based on BK’s sales in Canada, there is a significant increase in sales in three years. The

cumulative increase of 37.7% is based on weekly sales reports for three years from all BK’s

restaurant in Canada (Barham, Malley & Sansom 1995). This resulted from BK’s campaigns

which include advertising and promotional works. Therefore, based on Canadian BK’s

achievements, BK in Sarawak can expect similar achievements after initial opening and also

in the long run.

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HBM110N Fundamentals of Marketing, Semester One, 2011

4 Conclusion

Based on initial analysis conducted on the Malaysian market, it has been discovered that BK

will encounter problems competing with strong competitors in Sarawak. The main

competitors, from biggest to smallest, are KFC, SugarBun, Pizza Hut and McDonald’s. To

survive in Sarawak’s market, BK has to make sure that they carry out the recommended

positioning strategy and the strategic recommendations for maximal market penetration.

With regard to viability of the expansion, macro environmental and SWOT analysis assisted

in a clearer picture of the internal and external factors. With consumer behavior analysis, the

factors influencing consumer behavior, the way they make decisions and their buying

decision behavior are better understood. Marketing research gave more thorough information

regarding the problems that might be faced in terms of the expansion.

Selecting target market based on the marketing principles is an important step for a huge

organization like BK. With demographic factor chosen as the segmentation base (age and

income), market segment opportunities are revealed. Through proposed positioning strategy

and strategic recommendations, BK’s products can be distinguished from its competitors.

With marketing opportunities analyzed and all criteria of target market selection assessed, we

are convinced to say that BK can be expanded to Sarawak provided that all our

recommendations and proposals are taken into full consideration.

Launching Burger King in Sarawak 16

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HBM110N Fundamentals of Marketing, Semester One, 2011

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