Burger King,Philippines

Group 6 Aditya.BV(306) Giri Babu.R(316) Deepthi.K(326 Srinadh.P(338) Sanjana.L(348) Tripthilata Mandal(358)

Summary
The present case is about Burger Kings brand awareness in

Philippines.
Despite of having many strengths like superior quality,

greater ambience etc., the brand awareness was pretty low.

The vice president has to make a decision about the value

proposition and the communication strategy referring the market analysis report.

Fast Food Market in Metro Manila

Metro Manila is the region with most economic activity in

Philippines.
Food market in this area is highly saturated.
Fast food had become one of the fastest growing industry. In the family, food accounted for 43% of expenditure. Major players in pure fast food segment are: Jollibee,

McDonalds, Wendys, KFC.

Competition
Jollibee: Outlets 600 Target Market Filipino family Key Strength Hold on market, emotional attachment McDonalds:

Outlets 250
Target Market Filipino family with a taste for American fast

food. Key Strength Ability to market itself as global leader in hamburger chains.

Competition
Wendys: Outlets 31 Target Market Filipino family Key Strength Differentiation with salad bar KFC:

In market for over 2 decades

Key Strength Brand recall when it came to fried chicken

Reasons for low brand visibility

Lower visibility due to less stores. Jollibee is outstanding market leader by expanding their market

through inorganic growth and acquisition of other fast food restaurants such as Greenwich.
Burger king offerings did not include rice (it was is common to

offer rice along with food in Philippines).

It did not carter the Filipino taste, did not offer kids meal,

chicken, non burger items

Environmental Analysis
Political Factors: Government was proposing a policy that was business and

investor friendly by opening the Philippine economy and allowing almost 100% foreign ownership in all sectors of the economy.
Economic Factors: The overseas remittances had allowed families to spend on

non compulsory items Service out put had grown by 8.7% so demand for fast food increases. Increase in consumer spending pattern

Contd.
Social Factors:
Changing lifestyle and perception due to expats and

foreigners working and many native people working abroad Increase in the number of working women by 6.7%
Technological Factors:
Automated vertical grill (same cooking time) Reduced labor costs More interaction with customers

SWOT Analysis
Strengths Food Quality Brand name Authentic American Taste Weakness Limited number outlets Limited choice in menu Higher prices

Opportunities Increase in spending on fast food High foot falls for add on services

Threats Health concerns Competition

Core Competencies
Excellent supply chain Quality products Ambience Service standards Tech savvy

Point of Differentiation
The American flavor and the American factor in the Philippines

Recommendations.
The menu could be changed to suite the local

peoples taste but should not ignore the American flavor attachment. The quality and the unique service feature like the customer could order for anything should be effectively communicated. Varied types products could be offered including rice. The communication could be done in the local language to get emotionally attached. Kids meals and combo meals could be introduced.

Alternative Solutions
Giving more importance in communicating the

point of difference Providing the add on facilities like Wi-Fi to attract teenagers. By tie-ups or acquisitions with the local fast food restaurants to get the local taste better.

Bibliography
http://business.inquirer.net/22247/jollibee-buys-burger-

king-franchise-in-the-philippines

Thank you