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Burger King, Philippines
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Case Study
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Group 3 - Section B

Overview
Burger King Holdings Ltd. is based in Florida. It operates and franchises ffast food
hamburger restaurants through its subsidiary, Burger King Corporation. In
Philippines, it operates through PERF restaurants and has 23 locations. It has been
in Philippines since last 11 years and its major offerings are Burgers, Fries and
Dessert. Its unique selling propositions are its range of Whoppers. Its main
differentiation point is its American flavor.

Problems in the case

The major problem identified for Burger King is communicating Burger King's value
proposition to its target market. The company's current communication efforts have
not been able to increase its brand awareness. It is also facing tough competition
from the leading player Jollibee and McDonald's. In fact, in light of this competition,
the management is contemplating the retention of its main differentiation point i.e.
its American flavor.
Burger King lacks a clear brand image and has fallen short in giving consumers a
valid brand experience. Consumers aren't loyal to Burger King and they fail to see
positive differentiation between Burger King and other competitors.

Potential Solutions
For potential solutions, we went back to marketing basics. We looked at the 4 P's of
Burger King and analyzed potential upsides of them. Some of our recommendations
are as follows 1. Introduce new low price menu items.
This is because Burger King is perceived as being more expensive than its
competitors. An average price of a meal at Burger King was 175 PHP. In a
price sensitive place like Philippines, only a particular section of society would
be able to splurge on Burger King. Even the market research finding has
indicated that Price is one of the primary factors taken into consideration
before choosing a restaurant.
2. Highlight the American flavor.
Burger King has over the years maintained a truly original American flavor.
America and its culture is seen as a role model in Philippines. Hence, there is
a friendly and associative linkage to the American culture and corollary to the
American food. Burger King needs to build on this through Promotion. The
current promotions are less than the competitors due to the lesser number of
outlets and due to its smaller market share.
There is a recommendation to increase advertising based on children. There
is a perception that the kid's food offered by Burger King wasnt good
enough. This perception needs to be investigated and tackled.
Children are an effective way to increase foot falls in Burger King. One way of
doing it can be to move the current communication messages from 'Anger' to
'Fun'. Anger as an emotion is unusual communication for Philippines. The
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Filipino culture is a pacifist culture and anger may not go down well with the
majority.
3. Introduce Burger King breakfast.
Burger King can introduce a limited breakfast menu. This will target office
goers and college kids. The management is also of the opinion that
introduction of breakfast menus will be a helpful item in projecting the brand.

4. Product Highlighting.
The whopper sub brand is a unique sub brand associated with Burger King
and is its most sold product. The whopper sells in multiple sizes and different
fillings. There are drinks, desserts, fries and sandwiches.
Our recommendation is to project the Burger King product as a great taste
that the consumer can afford rather than a quick getaway food. Burger King
does not make you sacrifice taste for value and satisfaction. Whenever
consumers think of Burger King, they think of big, satisfying and juicy
burgers.
To put it in one sentence - 'Consumers should associate Burger King with food
that ignites the senses.'
5. Place
Burger King is suffering from a constraint of having just 23 locations which
are positioned in malls with high footfalls. This makes sense as these malls
attract the richest consumers. However, if the financials and operations allow
it, Burger King can look at expanding its current place from malls to strategic
places near colleges or offices. This mandates that these demographic
section of society may be willing to experience Burger King but is unable to
do so because of location and time constraints.
If the operating model is robust enough, Burger King should look at

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The basic premise of the suggested solution is to increase Burger King's brand value
and the proposition it offers to the consumers. These suggested recommendations
are targeted with a premise to increase the brand recall of Burger King.

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Pro's and Con's of the solution suggestedPro's:

1. Burger King has an authentic American taste which can be leveraged in
attracting the trendy and westernized Filipino segment.
2. As per the Market research findings, consumers are clamoring for larger
variety and cheaper prices from Burger King.
3. Consumers are very satisfied with Burger King's quality, ambience and
additional service. Hence, this positive feature can be extended to more
locations and more segments of the society like large families.
4. More number of outlets help in brand building, creating loyalty and improved
the access.
Con's:
1. Reducing the price or introduction of low priced items may lower the brand
equity of Burger King.
2. The low end burgers may be considered as 'Not worth it' by consumers.
3. Burger King may be perceived as a niche brand as it is not catering to the
local Filipino taste.
4. The suggested recommendations place less focus on competitors. It focuses
more on internal up gradations.
5. More locations would mean more human and financial resources. Human
resources would need to be trained. Location acquiring may take time as in
the South East Asia region. Hence, the recommendation of adding more
locations might take time and extended effort.

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