Burger KING - Launching NEW Product Whopper Veggie IN Vietnam PDF

Preview

Summary

Burger King has not launched Whopper Veggie in Vietnam yet, and they are still in the process of researching and developing. In our hypothesis, we will do it for them in this COVID 19 situation....

Description

WHOPPER VEGGIE

03. 07. 2021 COMING SOON IN HANOI, VIETNAM

TABLE OF CONTENTS 03

P ROJEC T OV ERV IEW

04

MA RKET A N A L YSIS

14

AB OUT B URGE R KING

L A UN C HIN G C A MP A IGN

22 MA RKET IN G C A MP A IGN 24

BIG ID EA , KEY MESSA GE & T A GL IN E

33

CONCL USION

PROJECT OVERVIEW This project is about Whopper Veggie - a product that has captured the fast-food vegetarian market in Europe and increased Burger King’s brand value all over the world.

In order to re-brand Burger King, we decided to bring Whopper Veggie to Vietnam, with the same taste, the same style, and the same uniqueness. Burger King will launch & relaunch Whopper Vegan in other 70 countries on the same day as Vietnam. The ambassadors will join in every marketing campaign.

MARKET ANALYSIS I. Market Size 1.1 In Fast-food Industry - The fast food industry thrives in most of the world. In 2020, fast food market size was calculated to be USD 647.7 billion. - Fast-food Market size in Vietnam: The revenues of five leading fast-food chains in Vietnam including KFC, Lotteria, Jollibee, Pizza Hut and The Pizza Company totaled VND 5 trillion (US $214 million) in 2018, up 13% compared to the previous year, but significantly lower than 24% of the 2016-2017 period. - However, in Vietnam, owing to the high concern in nutrition of the Vietnamese, the high price above local food and the inferior speed of services, the fast food industry didn't achieve the high results as expected. - However, in Vietnam, owing to the high concern in nutrition of the Vietnamese, the high price above local food and the inferior speed of services, the fast food industry didn't achieve the high results as expected. - 20.5% of Vietnamese household's monthly expenditure budget is for food. With that large share, the market for food and non-alcoholic beverages is forecasted to grow by 11.6% (in the period 2018-2021) to reach 40 billion USD in 2021. - With the fast-food market worldwide with a growth rate of only 5%-7%, 15%-20% in Vietnam is a very attractive number for investors, calling for a series of brands participating and contributing to the competitiveness is pushed higher than ever.

MARKET ANALYSIS I. Market Size 1.1 In Vegan Industry - The global vegan food market reached a value of about USD 15.4 billion in 2020. The market for vegan food is being driven by the rising awareness of the health benefits of these products, such as reducing the risk of heart diseases, cancer, and other diseases. The market is further expected to grow at a CAGR of 9% in the forecast period of 2021-2026 to reach a value of approximately USD 26.1 billion by 2026. - Changes in taste and preferences influence the demand for vegan fast food. Surge in awareness about the health issues and animal health and changes in lifestyle are the factors that drive the growth of the global vegan market. With the changing perspective of people toward animals and the environment, people are shifting toward vegan food products.

- When looking at conversations around the keyword “vegan” on Twitter, it has been found that there was a 136% increase in volume between 2014 and 2019. With more than 11 million Twitter mentions of the word “vegan” in 2019 alone, the fast-food industry seems to have found its next frontier and is ready to deliver on fast-food favorites that anyone can eat. - The global plant-based meat market size accounted for USD 3.3 billion in 2019 and it is estimated to reach USD 13.8 billion by 2027 at 19.4% CAGR. - Despite bringing high profits, the vegetarian food business market still does not have fierce competition like the normal restaurant business. Currently, there is no leading vegetarian restaurant in the market. Therefore, to seize the opportunity and rise to the top is possible if the restaurant owner has the right business plan.

MARKET ANALYSIS II. Market Share 2.1 In Fast-food Industry

From this, It is clearly seen that the Burger King's brand awareness in Vietnam is still low, and the company has no unique selling point (USP) like the top three brands.

The only factor that makes Burger King stand out from other brands is its “Premium Food”. Unlike KFC or Lotteria, instead of using Vietnam’s ingredients, Burger King decides to import all raw materials from its main factory.

MARKET ANALYSIS II. Market Share 2.1 In Vegan Fast-food Industry Vegan Fast Food: Vegan fast food is a type of food that excludes meat items and can be prepared and served in a very little time. Vegan fast food contains vegetable and vegan products, which include pastas, pizzas, pastries, Chinese food, and other snacks. The global food industry has seen competition open up for alternative proteins to draw in growing numbers of consumers who have adopted a vegan diet for dietary, ethical or environmental reasons. The plant-based "meat" market could be worth $100 billion in the next 15 years because of the climate emergency, as beef production is a major global polluter. Therefore, by launching meatless burgers, Burger King hopes to capture a substantial slice of a growing market.

ABOUT BURGER KING I. S.W.O.T Analysis

Strengths:

Weaknesses:

Opportunities:

Threats (T):

Strong financialbased mother companies and international cooperation

Scarce number of easily accessible locations

The boom of online delivery apps like Gofood, Grab, Baemin,... in Vietnamese market due to COVID 19

Exceptionally strong competition among the quick-service restaurant industry

High demand of meat-replacement offerings

Increasing labor costs

Long-term relationships with Asian suppliers Multiple successful marketing campaigns on international scale

Low variability of products in VietNam: the two main are fried chickens and burgers High prices compared with local vendors Undiversified menu with little innovation"

Increasing prices of Burger King’s inputs due to COVID-19 Negative publicity

ABOUT BURGER KING Founded in 1954, Burger King is the second largest fast food hamburger chain in the world. However, the recognition of Burger King is only 37% with Vietnamese (according to Q&Me Vietnam Market Research). Burger King invested 40 million dollars in Vietnam in 2012 with the goal of opening 60 restaurants by 2016 according to Vietnam Business Review. And now there are only 9 stores in Vietnam.

Opportunities

Strengths

Weakness

SO

WO

Produce a variety of healthier food with low prices

Become the first producer of “vegetarian fast-food” with low to medium prices

Reconstruct the “premium food” but “unsuitable taste” with marketing campaigns

Importing qualified ingredients from the suppliers in less affected by COVID-19 countries Maintain the meat-flavor of vegetarian products to retain young customers

Threats

Internal Factors

External Factors

ST

WT

Strengthen mobile presence

Focus on the quality of the new lines to gain the positive publicity

Produce another line of products with lower prices

ABOUT BURGER KING II. Brand Valuation Logo Color: brown, orange, red. Especially, the logo does not contain the color blue, which means that the product does not contain preservatives and Burger King put more focus on the product quality and the customers health Design: Burger King changed the logo to the logo previously used before 1999 to demonstrate the brand’s long standing

Packaging: Material: paper Font: Flame Sans shows the breakthrough but elegance - implies the ORGANIC of food Color: warm colors display fresh ingredients and the exclusive method Burger King uses for its burgers: flame-grilling

ABOUT BURGER KING Position: Compared to other quick-serve restaurants, Burger King only ranks 7th (Q&Me, 2020) Recognition: 15% of Vietnamese customers recognize Burger King as “Premium food” and only 9% regards it as “good for youth” => Suggestion: Burger King will reimage as a “pocket-friendly” and “focused quality” brand in VietNam too

III. Unique Selling Point Unique Slogan “Have it your way” - This particular USP by Burger King allows their customers to feel that they are in control of what they want and allows them to feel that Burger King is satisfying their specific needs of food - you could have your hamburger any way you liked it, no pickle, no lettuce, it's okay with us. => The Slogan creates the comfort of customers to choose the way they eat.

Varieties of Burger By serving a variety of burgers, Burger King provides customers diversified, complete experience. Customers would never feel bored and would always be eager to come back and try new dishes in Burger King’s menu, which is of great help in boosting revenue.

Q&Me, 2020

ABOUT BURGER KING III. Value Proposition Canvas Customer Profile PAINS Lack of time to cook Difficulties in switching from normal to organic food Lack of vegetarian stores suiting their taste Fear of unqualified organic ingredients Unwillingness of abolishing “meat-taste” flavor Lack of recognized healthy food stores to hang out with friends

JOB-TO-BE DONE Healthy lifestyle Showing off a healthy lifestyle on social media Regular change in menus Guarantee of eating something healthy and quickly but nutritious enough to continue to work

GAINS Brand recognition Quality: no preservatives contained burgers Unique flavor: unreal meat but tastes like meat A place to go for a change of air Self-customized product Support from friends to totally switch to a healthy lifestyle

Value Proposition PAIN RELIEVERS Qualified ingredients sources Personalized experience: customers decide the exact number of each ingredient Popular brand Quick service Easy-to-find places

PRODUCT & SERVICES Self-made vegetarian burgers Already-made vegetarian burgers A list of variable ingredients from inorganic to organic ones Well-trained employees

GAIN CREATORS Focus on the quality Professionally trained employees Expose the full information of ingredients and calories

LAUNCHING CAMPAIGN I. Whopper Veggie’s Figures around the world The market for plant-based foods – direct substitutes for animal products – reached $3.3 billion in 2018, a 20% increase in annual sales, and the meat substitute industry grew. 24% faster to over 670 million. In that situation, Burger King launched Impossible Whopper in November 2019, which its taste is said not to be distinguished with real meat, that meets the growing vegetarian demand of dinersince. Burger King after that, has captured 70% of the vegetarian market of fast food restaurants (data according to the revenue report of big brands, January 2021 according to the New York Times) Vegetarian whopper has been sold in more than 35 countries. This whopper has made a big difference in the vegan F&B market and has become one of the biggest launches in the brand's history. With the plan to expand market share across China from Q2/2021, vegetarian whoppers have been launched in 325 burger king stores located in Beijing, Shanghai, Shen Zen, Shang Zhou,...

II. Product Analysis Appearance: A hamburger, use vegetarian food for topping, the filling tastes like meat

Selling point: vegan ingredients, special recipe, and organic materials from Unilever, no preservatives Unique selling point: It tastes like meat but is 100% made of vegan ingredients. 100% imported fresh ingredients.

LAUNCHING CAMPAIGN 1.1. Price Price: 50.000 - 70.000 VND - the same as the price of a normal burger In the UK, the price of Whopper is 4,49 dollars but Burger King is on the way to collaborate with Unilever.PLC. Moreover, Burger King owns 2 factories in Asia - In China and India, so that the transport fee is as low as possible 1.2. Place Allocation: Burger King Store in Giang Vo - Dong Da, Xuan Dieu - Ba Dinh, Trung Hoa - Cau Giay; Ha Noi. Also available with delivery apps. 1.3. Competitor Analysis 4An Price

82,500 VNĐ

Chops 90,000-200,000 VNĐ

Trial price: 66,000VND Free ship 5km The first plan-based meat created by Vietnamese startup.

The first plan-based burger in Hanoi.

Pre-order through hotline, fanpage, website and delivery apps Direct order at branches

Pre-order through hotline and fanpage Direct order at branches (only in Hanoi)

USP

The toppings are made from 3 types of mushrooms and 5 types of beans, cereals, plus a rich source of vitamins from many vegetables

The patty: looks like meat, smells like meat, tastes and bleeds like meat but is 100% plant-based.

Place

Ho Chi Minh City

Ho Chi Minh City and Hanoi

Grab food, Now, Baemin, Gojek

Grab food, Now (only in Ho Chi Minh City)

Promotion

Readiness

Partners

LAUNCHING CAMPAIGN 1.4. Positioning Positioning Statement: For Vietnamese in need of a quick-service restaurant with meticulous attention to healthcare, Burger King provides consumers with top-notch “meat-flavor” vegetarian burgers. Burger King respects customers’ own flavor and emphasizes the realest feeling.

Pocket Friendly

4An Burger King Low Quality

High Quality

Chop High-priced

=> Suggestion: positioning Whopper Veggie as The best in ALL KINDS OF VEGAN BURGERS

LAUNCHING CAMPAIGN III. Data Analysis We conducted this survey on 123 people, 104 people (84.6%) of which are those who are interested in fast foods, among which, 83 people (82.8%) range from 24-30 and 70 out of 83 are concerned about their health. On the other hand, among 36 surveyees, there are 30 people who often order fast foods, 8 out of those 30 people lean towards a meat-free diet.

In our online survey, 36.6% of people answered that they eat a vegetarian meal more than once a week. This shows that young people are more likely to be vegetarian. The two things most people care about are gatherings of friends, colleagues and health will be the two things we focus on. Burger King has a spacious, airy space, suitable for gatherings. Our burger does not use animal-based ingredients, which is good for customers' health.

LAUNCHING CAMPAIGN III. Targeted Customer Millennials

Demographic

Psychology

Behavior

Influencers

Needs

Insight

Gen Z

Age: 18 - 24 Age: 24 - 30 Income: 8 millions - 20 millions VND Income: 1 millions - 5 millions VND Live or study in Hanoi. Live in Hanoi, Single. Busy at work and do not have time to cook meals Have an unbalanced diet. Want to take good care of their appearance and health, and are interested in eating trends Be ready to pay for healthy meals regardless of the price.

Have a lot of friends and easily affected by trends Have high concerns about the environment and their health and have a limited budget Eat out with friends and family, eager and willing to try out new dishes

Offline: Eat with pals, counterparts

Offline: Eat at home, self-cooked meals, eat out with friends

Online: Order food from apps, eat out, buy take-aways healthy food. Use Facebook, Instagram, Linkedin, Zalo,... Most pay attention to Facebook and Instagram

Online: Approach posts, catch trends fast. Order food from apps. Use Facebook, Instagram, Tiktok,... Most use Facebook, Instagram and Tik Tok correspondingly

KOLs, partners

trends, KOLs, friends

Want to eat healthier to have better health Want to eat trendy food to fulfill curiosity of new food Want to eat non-canned food to have a-less-grease-meal.

Want to follow trend Concern about their own health and the environment due to early exposure to social media A place to gather and hang out with friends

To have fast food that healthier than usual, lower calories and healthier recipe Still want to eat meat or want veggie food to “taste like meat” To have meals healthy, time-saving and easy to find

To have a meal that can express their concern for health and environment To have a place that is able to provide both veggie and un-veggie food.

LAUNCHING CAMPAIGN IV. Vietnamese Market 1.1 Customers care about vegetarianism Nowadays, people care more about vegetarianism due to health, environment and religion aspects. According to Google trends, the frequency that Internet users look for the term: “vegetarian” has risen steadily from 2004 to now, which means that more and more people care about their diet.

From the graph, we can see the trend clearly. Though there are fluctuations, the overall trend is that the line is going up. What is more, according to the data, people tend to look for vegetarian restaurants instead of recipes to cook themselves at home. However, after many cases of food poisoning, people care more about the quality and the hygiene of the products. For Burger King, a highly regarded hamburger chain, the consumers tend to place unconditional trust on the brand. Therefore, the product is likely to be well received by the consumers.

LAUNCHING CAMPAIGN IV. Vietnamese Market

Also, a survey conducted by Vietnam Report in 2020 pointed out that due to COVID 19 effects, 50 % customers are ready to spend more on foods which boost their immune system as well as healthy organic products. Also, a survey by VietnamCredit found that consumers' top priorities when buying foods and drinks are Nutritious (60.3%) and Organic (51.5%) 1.2. Customers care about fast food Looking at the whole picture, the fast food chain which entered Vietnam only get customers’ attention when they first entered the market due to their curiosity with new foods. However, their interest died down when those fast foods did not live up to their expectations yet cost quite a lot of money.

LAUNCHING CAMPAIGN IV. Vietnamese Market Recently, due to the impact of COVID-19, street vendors where many Vietnamese have their meals have shut down, leading to the bloom in take-away foods, this somehow could be considered an advantage for fast food stalls since many choose to order food online.

From the statistics of our survey, 54 out of 123 people choose to have fast foods because it is quick and convenient to purchase. Burger King has high brand recognition in Vietnam and it is available on most food ordering online platforms, many people can order a burger within several seconds. In our current social condition, the only substitution for self-cooked meals are ordered foods. Therefore, the pandemics could bring us both challenges and opportunities. 1.3 Customers have willingness to pay What’s more, Vietnamese people tend to spend more money on food. According to our research, 94 out of 123 people (75,8%) answered that they expect the product to be 50.000VND up to 200.000 VND. This means that our product has a reasonable price range for customers to be willing to pay.

LAUNCHING CAMPAIGN IV. Vietnamese Market 1.4. Readiness of the market The Vietnam market is a potential market which should be taken advantage of. Firstly, there are no noticeable rivals in the recent market. Burger King’s rivals such as: Mc Donal, KFC, Lotteria,... have never launched a similar product in this market. There are some vegetarian restaurants in Vietnam which serve similar products but they are not as widely recognised as Burger King. Burger King would be the first to provide such healthy yet fast meals like this vegetarian burger. So we can consider the Vietnam market as a promising land. Secondly, customers express interest in plant-ba...