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CONTENTS
Executive Summary.....................................................................................................................................2
I.

Research Objectives..........................................................................................................................2

II. Concise Statement of Method...........................................................................................................2

III.

Summary of Key Findings.............................................................................................................3

A. INTRODUCTION................................................................................................................................3
I.

Market overview...............................................................................................................................3
1.

Why many famous fast food brand arrive Vietnam?....................................................................3

2.

How many the major brands in Vietnam?.....................................................................................4

3.

Market trends and Market growth.................................................................................................5

II. About Burger King...........................................................................................................................6

1.

The successful franchise...................................................................................................................6

2.

Enter the Vietnam market.................................................................................................................7

B. DATA ANALYSIS AND FINDINGS...................................................................................................9

I.

Literature review...............................................................................................................................9

II. Data analysis.....................................................................................................................................9

1.

Frequency and satisfaction............................................................................................................9

2.

Brand Awareness.........................................................................................................................12

3.

Sale promotions...........................................................................................................................13

C. CONCLUSION AND RECOMMENDATION..................................................................................13

I.

Conclusion......................................................................................................................................13
1.

High price....................................................................................................................................13

2.

Menu not diverse.........................................................................................................................14

II. Recommendation............................................................................................................................15
1.

In short-term................................................................................................................................15

2.

In long-term.................................................................................................................................15

D. LIMITATIONS...................................................................................................................................16
I.

Small sample size...........................................................................................................................16

II. Short time........................................................................................................................................16

References..................................................................................................................................................16

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Executive Summary
I.

Research Objectives

The purpose of this proposed research project is to collect attitudinal, behavioral, motivational, and
general demographic information to address several key questions set. Key questions are as follows:
1. Is Burger King being used frequently?
2. By what media that Burger King is most widely known?
3. Of those who have used Burger King, how are their evaluations on Burger Kings factors
including food and beverage as well as supplementary services?
4. What improvement should be made regarding to the feedback of customers to raise the
satisfaction?
5. Should Burger King redesign its menu or should it have a new integrated marketing strategy?
6. What is the demographic profile of people who have been Burger Kings customers?

II.

Concise Statement of Method

1. Type of Study: Exploratory and descriptive research with primary data requirement
2. Target Population and Sample Size:
The target population consists of teenagers and adults between the age of 16 and 60 who are

current customers of Burger King and living in Hochiminh City area.

The sample size would be 30-60. This is based on the likely response rate for the sampling
method and questionnaire design, a predetermined sampling error of 5% and confidence level
of 95%.

3. Specific Research Instrument:

Questionnaire is designed for face-to-face interview. All survey questions will be pretested using
a convenience sample to access clarity instructions, questions, and administrative time
dimensions. Response scale for the questions will conform to the questionnaire design
guidelines. Attached to the questionnaire will be a gift to encourage respondents participation.
4. Potential Managerial Benefits:
Better understand the types of people using Burger King
Determine customer satisfaction level

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Explore what factors influencing consumers choice and find out the problems needed to be

improved to meet the customers needs

Identify issues that suggest evaluating (and possibly modifying) current marketing strategies

for Burger King

Develop insights concerning the promotion to additional segments

III. Summary of Key Findings

1. Almost 50% used Burger King fewer than once/months
2. The average satisfaction level is 3.19/5
3. More than average, 60% customers know Burger King by their friends suggestion, not by Social
Media.
4. The satisfaction toward Sale promotion is 3.5/5

A.
I.

INTRODUCTION

Market overview

Why many famous fast food brand arrive Vietnam?

As many giant global fast food chains are expected
to become newcomers in the local fast food market,
those who have already established a considerable
presence in the country are ready to embrace the
future harsh competition.
While global fast food brand names such as KFC,
Lotteria, Jollibee, and Pizza Hut have become
increasingly familiar to Vietnamese consumers, the
local fast food market shares are expected to be rearranged as more players are jumping in the game.
In the fast-food brand in Vietnam, KFC brand is the most preferred frequency of use (79%). Next is
Lotteria (17%), Pizza Hut (2%) and Jollibee (2%).

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How many the major brands in Vietnam?

KFC, which arrived in Vietnam as early as 1997, now possesses a chain with 134 stores nationwide,
with a growth rate of 20 to 30 new restaurants per year.
The world's largest chain of fried chicken fast food restaurants has redecorated its Vietnam stores to be
more open and attractive to young consumers. Meanwhile, its rival in the field of fried chicken, South
Koreas Lotteria, has also been adjusting its chain to be more adaptive to local culture. We will open
new restaurants with wider areas and equip them with Internet connected computers. We want to provide
spacious and comfortable places for local youths to get together, or even study there, said marketing
director Truong Ham Liem.
Lotteria currently has 146 stores countrywide, and is trying to reach more by the end of this year.
The market also has other growing players such as Jollibee, which has so far opened 30 stores, and Pizza
Hut has 27 stores.

FAST FOOD STORES

160
140
120
100
80
60
40
20
0

134

KFC

146

LOTTERIA

27

30

PIZZA HUT

JOLLIBEE

Market trends and Market growth

Experts have pointed out that the size of the Vietnamese market has been increasingly big. The demand
and the taste of consumers have changed significantly. Vietnamese people from well off families now
tend to use foreign products, a tendency which is called the thirst for high-class brands.
In 2011, fast food continued to register rapid growth of 26% in current value terms due to various
reasons. Firstly, despite the steep increase in overall food prices, fast food was able to maintain stable
prices, thus making dishes more affordable to consumers. Secondly, Vietnamese people were leading

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busier lifestyles, which helped to increase the demand for fast food. The modern image of fast food
outlets also attracted many teenagers and young working adults.

II.

About Burger King

1.The successful franchise

The predecessor of Burger King was founded in 1954 in Jacksonville, Florida, as Insta-Burger King.
After visiting the McDonald brothers' original store location in San Bernardino, California, the founders
(Keith J. Kramer and his wife's uncle Matthew Burns) purchased the rights to two pieces of equipment
called "Insta" machines and opened their first restaurants, based around a cooking device called an InstaBroiler. The Insta-Broiler oven proved so successful at cooking burgers, they required all of their
franchises to use the device. After the company faltered in 1959, it was purchased by its Miami, Florida
franchisees, James McLamore and David R. Edgerton. They initiated a corporate restructuring of the
chain, first renaming the company Burger King. They ran the company as an independent entity for
eight years (eventually expanding to over 250 locations in the United States), before selling it to
the Pillsbury Company in 1967.
Pillsbury management tried several times to restructure Burger King in the late 1970s and early 1980s.
The most prominent change came in 1978, when Burger King hired McDonald's executive Donald N.

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Smith to help revamp the company. Smith left Burger King for PepsiCo in 1980, shortly before a
system-wide decline in sales. Pillsbury Executive Vice President of Restaurant Operations Norman E.
Brinker was tasked with turning the brand around and strengthening its position against its main rival,
McDonald's. One of his initiatives was a new advertising campaign featuring a series of attack
ads against its major competitors. This campaign started a competitive period between the top burger
chains, known as the Burger Wars. Brinker left Burger King in 1984, to take over Dallas-based gourmet
burger chain Chili's.
Pillsbury was acquired by the British entertainment conglomerate Grand Metropolitan in 1989.
The twenty-first century saw the company return to independence when it was purchased from Diageo
by a group of investment firms led by TPG Capital for $1.5 billion (USD) in 2002. The new owners
rapidly moved to revitalize and reorganize the company, culminating with the company being taken
public in 2006 with a highly successful initial public offering. The firms' strategy for turning the chain
around included a new advertising agency and new ad campaigns, a revamped menu strategy, a series of
programs designed to revamp individual stores, a new restaurant concept called the BK Whopper
Bar, and a new design format called 20/20. These changes successfully re-energized the company,
leading to a score of profitable quarters. Yet, despite the successes of the new owners, the effects of
the financial crisis of 20072010 weakened the company's financial outlooks while those of its
immediate competitor McDonald's grew the falling value of Burger King eventually lead to TPG and its
partners divesting their interest in the chain in a $3.26 billion (USD) sale to 3G Capital of
Brazil. Analysts from financial firms UBS and Stifel Nicolaus agreed that 3G would have to invest
heavily in the company to help reverse its fortunes. After the deal was completed, the company's stock
was removed from the New York Stock Exchange, ending a four-year period as a public company. The
delisting of its stock was designed to help the company repair its fundamental business structures and
continue working to close the gap with McDonald's without having to worry about pleasing
shareholders. In the United States domestic market, the chain has fallen to third place in terms of same
store sales behind Ohio-based Wendy's. The decline is the result of 11 consecutive quarters of same store
sales decline.

2.Enter the Vietnam market

Every day, more than 11 million guests visit Burger King restaurants around the world. In cooperation
and partnership with the IPP group/Blue Kite Vietnam (BKV) and will further develop Burger King in

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Vietnam. Burger King expects Vietnam to live up to its potential and Burger King will eventually
achieve rapid but strategic development throughout Vietnam. In 2011 Burger King teamed up with
IPP/Blue Kite Vietnam. In Burger King research, VN population is relatively young and quite highly
educated. Income as well as the middle income group is growing.
On October 21, Burger King will be officially opened its first store in inland at 26-28 Pham Hong Thai
Street, Ben Thanh Ward, District 1, Ho Chi Minh City and then the other in a series of stores throughout
the city this. Stylish design of Burger King stores will be based on three main factors - Archon brand
represents; railing around the red line represents the grill flame of Burger King products and simple
images with industrial elements brings unique Burger King.

More than 90% of Burger King's business through a combination with local partners, Burger King
believe that the unique nature of the differences shown in Burger King grilled beef flavored own 100%
of Burger King. "Whopper" is quite famous all over the world with variety of chicken sandwiches, beef,
pork, fish. "Taste is King" is the slogan of Burger King in the world. It makes Burger Kings message
becomes clear and simple for the customer.
The constitution price strategy of Burger King is to serve the best hamburger in the world for many
customers. In addition, Burger King will offer special incentives and a unique customer. Development
Strategy of Burger King is: always work closely with the franchisee to develop the market. For Ho Chi
Minh City, Hanoi and other provinces of Vietnam, will not make any difference. The strategy of Burger
King development also focus on branding at strategic locations.

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B.
I.

DATA ANALYSIS AND FINDINGS

Literature review

2013 Measuring Vietnams retail industry report by Research and Market. : this report provide
a strategic industry review and manual of the Vietnamese retail sector help to identify challenges
and strategies for entering the market, that points out areas for continuous improvement. Through that
people could forecasts development and market trends, and know where market opportunities exist.

Research on fast food market in big cities in Vietnam by Vina Research in 11/2012: the fast
food consumed behavior was researched thoroughly. The research supports an specific view into
citizens on how they consumed fast food. Also, through this research, readers would have idea
about the popularity of fast food brand existing in Viet Nam included KFC, Jolibee, Pizza Hut,
etc.

Fast food in Vietnam report by Euro monitor in 11/2012: the readers would gain competitive
intelligence about market leaders in this research. The knowledge give out track key industry
trends, opportunities and threats when business coming into fast food market. The authors inform
your marketing, brand, strategy and market development, sales and supply functions to consider
in this market

II.

Data analysis
1.Frequency and satisfaction

In which men and women use Burger King in nearly the same, but women use Burger King more often
5. How often do you use Burger King?

Once / months
Once / month

Count
%
Count

Female

Male

11
57.90%
4

10
41.70%
6

21
48.80%
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Once / week
Twice / week
Total

%
Count
%
Count
%
Count
%

21.10%
1
5.30%
3
15.80%
19
100.00%

25.00%
6
25.00%
2
8.30%
24
100.00%

23.30%
7
16.30%
5
11.60%
43
100.00%

All three age groups generally have a degree of Burger King uses very low, the number of people using
very little Burger King to 48.8% surveyed. The age over 35 was from very little experience to use
the boat regularly. However, levels of regular users aged over 35 than other groups. In our opinion, due
to financially stable, this group regulars eating aims to lead children to eat. No customer replied that
they very often use Burger King.

5. How
often
do
you
use
Burge
r
King?
Total

Age
16-25

26-35

>35

Count

13

21

56.50%

42.90%

33.30%

48.80%

Once / Count

10

month

21.70%
3
13.00%
2
8.70%
23
100.00%

21.40%
3
21.40%
2
14.30%
14
100.00%

33.30%
1
16.70%
1
16.70%
6
100.00%

23.30%
7
16.30%
5
11.60%
43
100.00%

Once /
month
s

%
Once / Count
%
week
Twice / Count
%
week
Count
%

Total

First, the highest rating are sections of the store clean, beef burgers and other snacks. This is one of the
important factors, but not the decisive factor affecting the success of Burger King. In details, many
customers talk about words: delicious, beautiful, and clean, but bad. why have the good and bad at the
same time? This is just delicious degree of customer evaluation of beef burger, and all the rest of the
menu from Burger King burger chicken, potatoes, snack types are rated as bad. And an extremely
important issue, "suffering". Surveys show that customers feel the price is below average Burger King,

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just 2.42 points below average. In our opinion, the peak factors need not be high, these factors are not
the most important factor is too high.
Design shops, service quality and hygiene in stores also contributed to the 3.19 level of customer
satisfaction. In addition to factors such as promotions, ordering method, convenient locations are above
average.
Through the survey of satisfaction levels, we can see that customers feel the quality of services, as well
as the convenience of the location of the store, process serving convenience and comfort is high .
However, the prices of products and high quality food rates are only moderate.
Descriptive Statistics
N

Minimu
m

Maximum

Mean

Std. Deviation

8. Price

43

2.42

0.663

10. Whooper family

41

3.66

0.883

11. Beef burger

42

3.71

0.742

12. Chicken burger

35

3.34

0.968

13. Fried chicken

37

3.03

1.013

14. Other snack

36

3.72

0.815

15. Drink

43

3.42

0.731

43

4.05

0.785

18. Inside furniture

43

3.65

0.72

20. Behavior of staff

43

3.4

0.979

21. Payment

43

3.42

0.698

22. Place

43

3.63

0.787

17.

Sanitized

conditions

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Descriptive Statistics
23. Sales promotion

43

3.51

0.827

25. Satisfaction

43

3.19

0.764

Valid N (listwise)

31

2.Brand Awareness
Social network

25

58%

Press

14%

Brochure, leaflet

12%

Television advertisement

2%

Friend suggestions

26

60%

60% of customer were asked, said that they knew to Burger King because their friend suggestion, while
58% answer that they know about Burger King through Social Media. This result present that the
promotion on other channels have not been effective: newspaper, flier and advertising on broadcast TV.
We have some recommend:

Social Media: Especially on Facebook, Burger King have about 60000 like. Its mean that
they have a big fanbase on the Internet. We recommend them to develop fan page will let
them bring promotion information to consumers easier. These promotions will reduce
uncomfortable feeling in price of customers. Moreover, it will attract people positively
because Vietnamese have discounts and promotion finding habit and they love sales

promotion.
Newspaper: everyday, Vietnamese newspaper have many readers, making promotions on

those page can be a good idea.

Brochures, posters and flier: as we know, Burger King has a lot of store locate in center
of the city, its have a lot of potential customers here. They should attract more by

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provide information to the public offices, schools nearby so customers can know and care

more about Burger King.

Advertising on Broadcast TV: TV still one of the most useful channels for Vietnamese.
Every family has at least one TV. Burger King can do advertise on Television in the Gold
Hour like 6 to 7pm, the time which all the family gather and have dinner.

3.Sale promotions
23. The attractive level of sale promotion

Min

Max

Mean

43

3.5

As we can see the result of the survey shows that the satisfied level of customer about sales promotion is
just 3.5 in average. This is so weird, because Burger King have a lot of sales promotion over times since
she enter the market. But it also makes sense. The quality of sales promotion is not good enough even
the quantity is high. A lot of people in the survey answer for the question what do you recommend for
Burger King is they want more quality sales promotion. Its is a stronger evidence for the failure of Sales
Promotion.

C.
I.

CONCLUSION AND RECOMMENDATION

Conclusion
1.High price

High price here doesnt mean people pay a lot of money here to have a burger. High Price here means
people not satisfied with the product which theyve paid. Burger King and KFC or LOTTERIA has the
same target customers. Their main products prices are between 50,000 to 120,000 VND, but people still
said that Burger King is expensive.
Vietnamese have our own traditional bakery. Its cheap and delicious, in top 10 of the most delicious
street food on the World also. People will make a comparison between burger King and street bakery.

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Maybe the product value of Burger King didnt satisfy their customers. Take an example: Starbuck.
Starbucks product doesnt like the traditional coffee in Viet Nam, very expensive also. But why still
there a long queue waiting to buy a cup of coffee. Its because the value of Starbuck bring back to them.
Burger King should change up and have a right strategy to increase their product value, at least deserve
with the money that their customers had paid.

2.Menu not diverse

Only 9 kinds of burger, its a humble number. Burger King should create more and more Burger for the
diverse menu. KFC or LOTTERIA have burger products also. If they want to build up a King of Burger
image in customers, they must special in their main product: Burger. Different tasty, many kinds of
burger, special sauce, or anything special were needed. Big combo for a group a friend or a family is a
good idea to make menu become more diverse.
Furthermore, Burger King has only burger with beef and fried chicken. They should have some kind of
other meat such as lamb in there burger to make the menu more diverse.
Burger King has some difficult in the first time launch their brand in Viet Nam. There are a lot of strong
competitors in Viet Nam (KFC, LOTTERIA, PIZZA HUT, etc.). There is a huge wall to pass for Burger
King.
Its very easy to see that Burger King is very young in Viet Nam. They dont have a right promotion
strategy to approach their customers. They need to change their promotion strategy. They need to invest
more in the traditional media (TV). If they could have the right way to develop they can success very
quick. At least Burger King is the only one who has the special product in Viet Nam: Burger.

II.

Recommendation
1.In short-term

Burger King should have some promotions to attract more customers. Beside, customers know Burger
King through two main media: the social network and word to mouth( friends to friends). So the mainly
customers are from 16-25 years old. Burger King should invest more in the traditional marketing media
such as: TV, radio and direct marketing. The most important media is TV because its aiming at
customers above 30 years old and under 10 years old. Child under 10 years old cant make their

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decision to have a Burger Kings product so this customers target will depend on their parent: customers
over 30 years old.

2.In long-term
The biggest problem of Burger King now is the price and promotions strategy. KFC had worked hard in
16 years to become successful as now. LOTTERIA had the famous menu with H&S Chicken Fried.
Pizza Hut got their cheap menu for a customer. Still there a very long distance between Burger King and
the rest Fast food Brand in Viet Nam.
Its very difficult for Burger King to be like them when Burger King just enters in Viet Nams fast food
market. The only strength Burger King has now is: Vietnamese get accustomed with fast food. In longterm, Burger King need to change and focus in their promotion strategy.
Stay out of teenager over 16 and colleague student, their customers dont have many time to find out
what is Burger King. Furthermore, Vietnamese are afraid to try something new. Burger King should
have some promotion events to promo their product. They should create a lifestyle in their product.
Burger King can learn from their competitor how to success in Viet Nam. They should learn how to
build and run an effective promotion program: How to attract customers and increase their product value
through promotion media.

D.
I.

LIMITATIONS

Small sample size

The sample size is quite small, therefore there are some limitation when analyzing data. Some trend is
unclear and unable to see due to small sample size. Its difficult to see the consumed trend of the age
over 35. We also get into trouble to grasp the trend because 43 respondents is not typical for citizens
in Ho Chi Minh City.

II.

Short time

The time of survey is from Friday to Monday. With only 4 days, we cannot interview as many
respondents as we expect. Moreover, the time occurred is weekend, thus to some extent its not really

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random. We cannot interview customers using fast food in weekday. Therefore, maybe we have lost
some consumed signal or trend.

References

Jr., Joseph Hair, Mary Wolfinbarger, Robert Bush and David Ortinau, 2011, McGraw-Hill/Irwin; 2
edition, 397 pages
http://www.euromonitor.com/vietnam
https://vinaresearch.net/public/
http://www.researchandmarkets.com/

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