Jun 20, 2015
About Burger King®
• Founded in 1954• Second largest fast food hamburger chain in the
world.• Every day, more than 11 million guests visit BURGER
KING® restaurants around the world.• Known for THE WHOPPER®.• In 2010, 3G Capital, a global multi-million dollar
investment firm focused on long term value creation, purchased Burger King Corporation, making it a privately-held company
Lahore
• Lahore is hailed as the industrial belt of Pakistan and is home to the largest IT park in Pakistan.
• It is the country's second largest economic hub and the commercial capital of Punjab
• Lahoris are known for their love of food and eating.• Burger King in Lahore would be opened on the MM Alam road which is a
home for some of the trendiest restaurants in Lahore.• MM Alam road is known for its fashion boutiques, shopping malls, beauty
saloons and décor stores thus attracting heavy traffic and night life proving to be a very profitable street.
• Although the market is very competitive, Lahore's economy and population is consistently improving and increasing due to introduction of several projects.
Segmentation and Targeting
Segmentation and TargetingProducts Target audience Income class
Big King™ Meet lovers, Big eaters A+, A
Whopper® Burger Enthusiasts A+, A, B+
Budget Bites Economical spenders A+, A, B+,B
Salad and veggies Health Conscious A+, A, B+,B
Kids meal Kids, Youngsters A+, A, B+,B
Key:A+ Upper classA Upper-Middle classB+ Middle classB Middle-Lower class Geographical location of BK Karachi,
Khayabn Nishat, is taken as a proxy
Differentiation and Positioning
Differentiation and positioning
•Fire-grilled beef patties•Premium service and quality•Renowned fast food hamburger chain in the world
Market Analysis
Porter’s 5 Forces
Competitive Rivalry
Threat of new entrants
Power of Supplier
Threat of substitute products
Power of Buyer
+ve
+ve
+ve
+ve +ve/-ve
Porter’s 5 Forces• Threat of new entrants: High There are may International FF chains that are yet to open
• Power of supplier: Low/High There are various suppliers of various inputs needed for the operation of BK thus it is
unknown
• Power of buyer: High There are many restaurants for foodies to choose from on the M.M Alam road
• Threat of substitute product: High M.M Alam road is a home for some of the trendiest restaurants and varying prices
and variety of cuisines thus making it a highly competitive environment for BK
• Competitive rivalry: High All the above factors contributes to competitive rivalry among restaurants on M.M
Alam road to be high
SWOT
Customer’s opinion on food of Burger King's other franchises in Pakistan
Customer’s opinion on food of BK’s other franchises in Pakistan
• “The buns were stale and crumbling! Near to its end couldn’t even hold the whole thing properly! Plus they were toasted more than they were supposed to just to cover up the staleness,” (A customer on Facebook)
• “Large glass of coke was half filled. I had to ask for proper refill and it didn’t happen to one glass by mistake all the coke glasses of 6 meals I ordered were half filled… Fries were best no doubt but burger was a total disappointment.”(Another customer on social media)
Recommendation and strategy to be followed
Strategy to be followed
Current StrategyMarket
Penetration
Future Strategy Market
Development
Future Strategy Product
DevelopmentDiversification
Markets
Verti
cal
Over
next 5 years
Over next 12 months
Recommendation
• Offer a Breakfast menu• Add nutritional values of food in the menu• Develop a website dedicated to Pakistan’s BK customers• Offer Home delivery• Introduce free refills• Quality assurance• Offer lunch, midnight and complimentary deals• Offer meals that compliment Pakistan’s cuisine.• Active advertisement for BK’s Lahore franchises