Five Guys International Marketing Strategy

This assignment delves into the international marketing strategy of Five Guys, a successful fast-food chain. It explores the company's potential for expansion into the Indian market, considering factors like cultural adaptability, competition, and operational efficiency. The analysis utilizes Porter's Five Forces framework to evaluate the industry landscape and suggests franchising as a suitable market entry mode for India.

INTERNATIONAL
MARKETING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
QUESTION 1...................................................................................................................................1
Analysing macro as well as competitive elements which affect global fast-food sector.......1
QUESTION 2...................................................................................................................................3
Analysing internal business environment of Five Guys Burgers International......................3
QUESTION 3...................................................................................................................................5
Evaluating potential target markets considering 12 Cs framework........................................5
QUESTION 4...................................................................................................................................7
Recommending the firm about suitable mode of entry in selected country...........................7
QUESTION 5...................................................................................................................................7
Analysing socio-cultural elements of targeted country..........................................................7
Developing marketing mix for selected company to become successful in potential market8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
A strategy which is used by an entity for advertising its products and services across the
world is known as international marketing. On the basis of this, management able to enhance
market presence in new market and raise market share as well. In order to carry out the present
research, Five Guys Burgers International company is considered which is subsidiary of Five
Guys Holdings. It operates in food and beverage industry and as of now it is going to enter in one
country among four i.e. Singapore, India, China and Japan. With the help of macro and
competitive aspects of this industry are analysed in the present study. Apart from this, internal
business environment of Five Guys Burgers assessed using Porter's value chain and SWOT
analysis. Further, one country is recommended to chosen firm on the basis of 12 Cs frameworks
along with mode of entry at the end of project.
QUESTION 1
Analysing macro as well as competitive elements which affect global fast-food sector
When an organisation operates at the international level then there are wide range of
elements available which create positive and negative impact on the workplace. Once such
factors are analysed then firm can make better decisions fir entering in global market. The
present section provides those aspects which are related to macro environment and competition
level with reference to fast-food industry (Peris-Ortiz, Benito-Osorio and Rueda-Armengot,
2014). Moreover, macro and competitive factors which create influence on global fast-food
segment are stated below:
Macro environment factors
On the selected industry there are wide range of aspects have negative and positive both
kinds of influence. In order to analyse this, PESTLE model is one of the highly suitable which
shows every aspects in clear direction. The selected model refers to basically six factors which
are like political, socio-cultural, economic, legal, environmental and technological. Political
factors include terms and conditions, tariffs, employment, anti-trust etc. laws.
 Political factors: In accordance to this, when Five Guys Burgers will enter in potential
market then it has to follow these all the rules and regulations. Due to this, some costs
and financial burden have to bear which is adverse affect (Clarke, 2012). On the other
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side, if all the terms and conditions are in favour of the entity then it will be able to
generate more profit which is positive impact.
 Socio-cultural aspects: Tastes and preferences of people at the global level changes
within very short period of time. Further, if income level, living of standard, wants and
needs etc. fluctuate then demand of fast-food items change which affect adversely or
positively.
 Economic factors: Apart from this, some economic aspects also have great impact on the
fast food industry. In accordance to economic concept, when inflation rate enhance at the
global level then price of burgers and other fast-food products will be enhanced. Due to
this, local community of potential market will not able to purchase more goods and
services which is adverse impact on Five Guys. Along with this, recession, interest,
growth rate of economy also affect to this sector (Morgan, Katsikeas and Vorhies, 2012).
 Legal factors: Under the legal aspects, wide range of laws and legislations are
mandatory to follow by the selected company like HSC, discrimination, consumer,
equality, export/import etc. To implement such acts, some expenses are required to make
which directly influence on firm's profitability.
 Environmental factors: In addition to this, if climate and whether changes then
management cannot take decisions for store and sale food items properly. In addition to
this, burgers are mostly preferred in winter season and in the summer times Five Guys
will not able to sale products in more quantity.
 Technological factors: Nowadays, technology growing rapidly due to which the selected
enterprise will be able to implement advanced techniques and equipments. Therefore,
quality of Burgers will improve which is positive impact (Taghian, 2010).
Competitive factors
Apart from macro elements, for analysing competitive aspects of the fast-food sector,
Porter's Five Forces Model is one of the appropriate. On the basis of this, management of cited
entity will able to determine level of competition in proper and effectual direction. The chosen
framework comprises with basic five aspects which are like threat of new entrants, threat of
substitute products, bargaining power of suppliers and buyers as well as competition among
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existing firms. When looking at the global level then there is threat of potential companies is
very high. The reason is that, it requires low amount or investment for establishing a fast-food
stall or company (E. Dobbs, 2014). Apart from this, low human resources needed along with
operating expenses which lead to enhance threat of new entrants. When new fast-food firms will
enter then competitive level will enhance which is negative impact at the global level.
In the global market, there are various substitutes available of the fast-food items where
due to lack of availability of one product people will eat another. When threat of substitutions is
of the higher level then management of Five Guys Burgers has to provide attractive and hygienic
foods. Apart from this, bargaining power of buyers and suppliers is high and low respectively at
the global level. The reason is that, purchasers have huge options to buy and consume fast-food
products from another firm. These both kinds of aspects of competition has direct impact on the
firms which operate at the global level (Vaňa and Černá, 2012). At the last, in the world level of
competition is of the cut-throat in the selected industry. When this factor is higher, then
management unable to generate desired profit as well as sales.
QUESTION 2
Analysing internal business environment of Five Guys Burgers International
In order to make analysis of an internal business environment there are several
frameworks and model included. For the current case of Five Guys Burgers International,
basically two models considered i.e. Porter's Value Chain and SWOT. Further, such models are
explained below:
Porter's Value Chain
Primary activities:
Five guys burger's operates owned and branches or franchises restaurants. Five guys
burgers has the license or affiliate. It allotted the franchise in worldwide basis and take royalties
on the percentage of sales with the payment of initial fees when start a new restaurant location
and the franchise pays for infra, chairs, furniture, equipment and decor. Development license
involves licensees providing capital for the entire business. Royalty is paid by the owner of
restaurant who running the franchise (Fletcher and Crawford, 2013). These franchises are
available in many counties with total of 5000 restaurants. Five guys burger's restaurant operate in
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the following formats like self service or counter service outlets in food court, sit dawn
restaurants a ski thru. Five guys is credited with the invention of drive through and sky thru
formats of food delivery. Five guys burger's uses print and media advertising for achieve the
targets. Good services and high speed of the provision of customers services is one of the main
advantages of Five guys burgers.
Supporting activities:
Five guys burger's have so many franchises in the different location so it is already
decided that how will be infrastructure of the restaurants. It has the best infrastructure as
compared to other restaurants in fast-food industry. If any company want to increase the
customers then infrastructure should be attractive. Five guys burger's has good human resource
team who select the good people for the restaurant and departments. Human resource team
handling the all employment work like conduct interviews, select good candidates, complete new
join process, salary provide on time and take care of all employees (Kaynak and Jansson, 2012).
It has one more team which named by Technology development team. They are managed the all
equipment and machines.
SWOT analysis
Strengths:
 The famous restaurant is in Washington, D.C. area which named by five guys burgers.
 It is very fast growing organisation of fast food chain in the united states with above 1000
locations.
 There are online order and home delivery services also available.
 Big branding and popularity by taste, quality, fresh and made to order meal that sells the
restaurant to its customers (Five Guys SWOT Analysis, USP & Competitors, 2017).
 Provides in low cost or affordable meals. It's a punctual restaurant compared to another restaurant.
Weaknesses:
 Due to low advertising, people can not attract to the restaurant ''five guys burgers''.
 The company have low market share and it's affected on the company.
 Less global presence compared to big companies.
 Not provides its products and services at night or 24 hours.
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 Due to low market share, other companies get an opportunities like big branding, selling
and increasing customers.
Opportunities:
 Company can start the healthy meal option like Burger's flavour, salad and soft drink.
 Can start the schemes or unique services for the regular customers.
 Increase advertising spend on social media or newspaper.
 Franchise system can be start and company can be worldwide in named of five guys
burgers. By online ordering it can stablish into the worldwide and be the big brand in restaurant
companies (Brady, 2014).
Threats:
 So may giant competitor in the market and their activities also increasing day by day and
it can affect company's market share.
 In franchise system some branches can not earn profit and some branches can not earn
even cost.
 Some health factors like bird flu epidemic could adversely affect business and company.
 In system of franchise many employees are doing their job and company have so many
liabilities like arrange the fund for salary and arrange employee's accommodation.
QUESTION 3
Evaluating potential target markets considering 12 Cs framework
In order to assess or evaluate one market for entering by Five Guys Burgers, 12 Cs model
considered which is stated below:
1. Country: China country comes at the first level in the world in terms of population
and comes in the developing economy. When looking at the Singapore and Japan then
these countries are developed where already branded fast-food firms operate. At the
end, India is suitable because its policies of export import, laws, infrastructure etc. are
better compared to others (Hunt, 2016).
2. Culture: It considers norms, arts, technology, values, behaviour etc. of the country.
In terms of technology only Japan is the best and it will be profitable for Five Guys
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Burgers. However, in terms of other things India is better because culture of China,
Japan and Singapore is less attractive.
3. Concentration: In this, age and distribution, density of population, geographic
aspects etc. involved. In accordance to this, India is strong where Five Guys will be
able to earn more sales in comparison to other stated countries.
4. Communication: Choice of media, communication channels, promotional media etc.
are highly available in India and Japan compared to Singapore and China.
5. Channels of distribution: In order to distributing food items wide range of channels
are available in India and it is developing country which help to provide such services
at low cost (Hird and Gilligan, 2013).
6. Capacity: It consists with capacity of people in order to purchase food items. As Five
Guys provides Burgers at low cost then Indian people will buy consistently.
7. Currency: Indian currency is also widely accepted stable in the world due to which
Five Guys not has to face any issue if it enters in this country.
8. Control and coordination: Controlling and coordination strategies as well as
agencies in Japan, Singapore and China are highly strict as compared to Indian
economy.
9. Commitment: Quality of raw materials in India is high because people of this
country always prefer hygienic food. Japan, Singapore and China also has this facility
but at low level as compared to India.
10. Choices: As per this, choice of marketing mix are widely available in all the
countries. However, being emerging country India will provide such aspects at the
low costs.
11. Contractual Obligations: There is not a strict contract has to made if Five Guys
enter in India. In addition to this, penalties on late deliveries of products and services
are also not there (INTERNATIONAL MARKETING STRATEGIES, 2009). However,
these all the factors in other stated countries will be highly unfavourable for the
company.
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12. Caveates: Here, legal terms and conditions, local risks, economic trends, political
stability etc. are in favourable situation in India as compared to others.
After considering the above 12 Cs framework, it can be said that India will be the best
country because it provides all the raw materials at low cost along with transportations. Further,
being an emerging economy it will provide employees at the lower wages as compared to
Singapore, Japan and China. Hence, it can be suggested that Five Guys Burgers International
needs to enter in India.
QUESTION 4
Recommending the firm about suitable mode of entry in selected country
There are various strategies and modes through which an enterprise easily able to enter in
international market. To the Five Guys, Franchising mode of entry is to be suggested in which
products, services, production process, organisational structure, raw materials and other business
procedures remain constant. As per this, only employees and plant change where the
management not has to select and implement new techniques and production procedure. Further,
this mode of entry imposes low costs as compared to others. Hence, franchise will be the most
suitable for Five Guys Burgers to enter in Indian market.
QUESTION 5
Analysing socio-cultural elements of targeted country
India is one of the emerging economy in the world where income level of people changes
gradually. Due to this, tastes and preferences of local community will not change within specific
period of time where Five Guys not has to make modifications in existing operation procedures.
In addition to this, in Indian market there is huge craze of fast-food products by which they will
purchase Burgers from potential company consistently. Further, if this fast-food firm will enter
in India then they will try to taste and consume its products and services. It can be said that,
Indian people directly attract towards new concept and willing to consume (Baweja, 2015).
When considering to the living standard of Indian people then it is of the low and moderate to
high. Therefore, they will consume products of Five Guys Burgers due to providing at the
affordable prices. Hence, Indian market will be beneficial for the chosen company.
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Developing marketing mix for selected company to become successful in potential market
Marketing mix comprises with basically four factors which are like product, price, place
and promotion. For entering in Indian market, marketing mix is developed below:
 Product: While entering in selected country existing products and services will be used
by the firm. Further, any modifications and additions will not be done by it.
 Price: Currently Five Guys Burgers International provides its items and services at the
lowest and affordable prices. Further, in the new market it will select low cost strategy
where price will be lower and affordable as well.
 Place: In order to distribute food items, online and offline both ways will be considered.
In the offline way, physical store will be opened where every people can easily reach
(Hollensen, 2015). Further, for the online its own website will be made where customers
can book their order easily.
 Promotion: For advertising food products and services, Five Guys Burgers International
will consider both traditional and modern approaches. In traditional, it will use
newspapers, radio and television which will help to attract young age of people. On the
other side, social media networks will be considered like Facebook, Twitter, Pinterest etc.
which are parts of modern promotional activities.
CONCLUSION
It can be concluded from the above analysis that, to the global fast-food segment several
factors affect up to the greater extent. Macro elements like political, socio-cultural,
technological, environment, economic, legal etc. create positive and negative impact. When
looking at the internal business environment of Five Guys Burgers International then is strong in
the market where its value chain is also highly better. As per the 12 Cs framework it can be
articulated that Indian market is the best and highly profitable for Five Guys. Moreover, with the
help of franchise the company should enter in Indian market because all the things and
procedures remain same.
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REFERENCES
Books and Journals
Baweja N., 2015. International Business-Management of Marketing An Ambitious work for the
Academic style know-how for the Courseware of International Marketing.
Brady, D. L., 2014. Essentials of International Marketing. Routledge.
Clarke, I. M., 2012. The Spatial Organisation of Multinational Corporations (RLE International
Business). Routledge.
E. Dobbs, M., 2014. Guidelines for applying Porter's five forces framework: a set of industry
analysis templates. Competitiveness Review. 24(1). pp. 32-45.
Fletcher, R. and Crawford, H., 2013. International Marketing : An Asia-Pacific Perspective.
Pearson Higher Education AU.
Hird, M. and Gilligan, C., 2013. International Marketing (RLE International Business): Strategy
and Management. Routledge.
Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education.
Hunt, B., 2016. International Marketing Management. Clanrye International.
Kaynak, E. and Jansson, H., 2012. Industrial Products : A Guide to the International Marketing
Economics Model. Routledge.
Morgan, N. A., Katsikeas, C. S. and Vorhies, D. W., 2012. Export marketing strategy
implementation, export marketing capabilities, and export venture performance. Journal of
the Academy of Marketing Science. 40(2). pp. 271-289.
Peris-Ortiz, M., Benito-Osorio, D. and Rueda-Armengot, C., 2014. Applying Concept Mapping:
A New Learning Strategy in Business Organisation Courses. In Innovation and Teaching
Technologies. pp. 41-49.
Taghian, M., 2010. Marketing planning: Operationalising the market orientation strategy.
Journal of marketing management. 26(9-10). pp. 825-841.
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Vaňa, K. and Černá, Ľ., 2012. The marketing audit as a method of the evaluation of the
marketing plan. Research Papers Faculty of Materials Science and Technology Slovak
University of Technology. 20(Special Number). pp. 131-136.
Online
Five Guys SWOT Analysis, USP & Competitors. 2017. [Online]. Available through:
<http://www.mbaskool.com/brandguide/food-and-beverages/10294-five-guys.html>.
INTERNATIONAL MARKETING STRATEGIES. 2009. [Online]. Available through:
<https://cashflow4real.wordpress.com/2009/07/14/28/>.
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