Burger King Thailand implements expansion and menu-diversification strategy
In a strategic response to the expected decline of Chinese tourists to Thailand, Burger King (Thailand) Co., is revising its market approach. It plans to expand its food range to introduce more non-burger products. This strategy aims to invite a broader customer base and boost revenues.
As per the company’s general manager, Tanawat Damnernthong, Burger King has plans to establish new outlets in more rural locations around the country in the upcoming five months. Destinations such as Phuket and Pattaya have been targeted, with hopes to appeal to a consumer base previously not reached by the burger giant.
Burger King has already marked its presence in Bangkok and other tourist hotspots this year by opening up four new branches. It also plans to establish six more outlets in the latter half of the current year. However, the expansion in Bangkok is likely to be on hold next year, with the focus being shifted to upcountry locations.
Currently operational in 20 provinces, Burger King visualises an enormous growth potential. Especially in provinces like Ayutthaya, Phitsanulok and Nakhon Sawan where the Burger King brand is relatively unknown, reported Bangkok Post.
Tanawat said…
“We have to offer value-for-money products through promotional deals to entice these potential customers.”
In addition to expanding its geographical reach, the company plans to embrace diversity in its food offerings. The idea is to appeal to the varied taste preferences of customers, thereby, ensuring a wider reach. As part of this strategy, the “Hatyai Chicken King,” featuring Southern-style Thai fried chicken has been included as a regular menu item across all Burger King outlets. Exceptions are airport outlets and locations that are heavily visited by tourists.
Tanawat reckons Thailand’s fried chicken market is estimated to be worth 25 billion baht, 2-3 times larger than the burger market. His recent experience in Shanghai, China, enlightened him about the slow-paced property market of the country. He said he is hopeful that the introduction of new menu items could support the company’s growth, reducing its reliance on Chinese tourists.
The launch of two new products in the market earlier broke sales records in April and July. Tanawat seemed confident that the introduction of the Hatyai Chicken King will further boost Burger King’s sales in the fourth quarter of the year.
“We believe our Hatyai Chicken King will take Burger King’s sales to another new high in the fourth quarter of this year,”
Regular Burger King customers mostly comprise customers in the higher-income groups, between the ages of 30-39. However, with the launch of the Hatyai Chicken King, the hope is to attract those who fall in the moderate-income category.
Moreover, the introduction of these new items ties well with the Burger King initiative to enhance consumer loyalty and create an affinity towards the brand. Future planning includes a potential introduction of a Burger King Mala menu.
Tanawat concludes that the prime objective is to amplify the contribution of non-burger products to 10% of sales this year from the earlier 3%.
In related news, Burger King has implemented a marketing strategy to draw more attention. Read here to see how they have been doing it!
