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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 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.
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
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
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
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
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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
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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.
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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.
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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
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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.
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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).
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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.
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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.
Launching Burger King in Sarawak 11
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
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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HBM110N Fundamentals of Marketing, Semester One, 2011
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.
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HBM110N Fundamentals of Marketing, Semester One, 2011
5 References
Barham, D, Malley, R & Sansom, D 1995, BK: creating a whopping presence, Canadian
Congress of Advertising, viewed 15 April 2011.
BK Corporation n.d., BK® History, BK Corporation, viewed 22 April 2011,
<http://www.burgerking.com.my/about_us.php>.
BK Corporation 2009, BK Positive Step, BK Corporation, viewed 27 April 2011,
<http://www.BK.com/cms/en/us/cms_out/digital_assets/files/pages/BK_CR_Report.pdf>.
BK Corporation n.d., Find A BK, BK Corporation, viewed 22 April 2011, <
http://www.burgerking.com.my/find_a_BK/default.php>.
BK Corporation n.d., Menu: Whopper®Jr , BK Corporation, viewed 26 April 2011,
<http://www.burgerking.com.my/menu/burgers/whooperJr.php>.
Golden Arches Restaurants Sdn. Bhd n.d., Highlights, Golden Arches Restaurants Sdn. Bhd,
viewed 20 April 2011, <http://www.mcdonalds.com.my/ourfood/menu_items.asp>.
Golden Arches Restaurants Sdn. Bhd n.d., Locator, Golden Arches Restaurants Sdn. Bhd,
viewed 20 April 2011, < http://www.mcdonalds.com.my/locator/restaurant.asp >.
Golden Arches Restaurants Sdn. Bhd n.d., Menu Items, Golden Arches Restaurants Sdn. Bhd,
viewed 20 April 2011, <http://www.mcdonalds.com.my/ourfood/menu_items.asp>.
KFC Holdings (Malaysia) Bhd n.d., Colonel’s Menu, KFC Holdings (Malaysia) Bhd., viewed
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