Marketing Mix Strategies for Global Expansion

The provided document focuses on the crucial role of marketing mix strategies in facilitating successful international expansion for businesses. It examines various factors influencing this process, including risk deterrents to foreign direct investment, consumer attitude metrics, brand awareness, and the impact of political preferences on service expansion. The analysis draws upon case studies like McDonald's global marketing, academic research papers, and real-world examples of both successes and failures in international market entry.

Running head: INTERNATIONAL MARKETING FOR FIVE GUYS BURGERS
INTERNATIONAL MARKETING FOR FIVE GUYS BURGERS
Name of the Student
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Author Note

1INTERNATIONAL MARKETING FOR FIVE GUYS BURGERS
Executive Summary
The analysis in the report is based on the internal analysis of Five Guys Burgers restaurant
chain and the expansion plan of the restaurant. Five Guys Burgers is a restaurant chain that
was founded in the year 1986 in the United States of America. The founders of the company
were Jerry and Janie Murrell and their five sons. The restaurant chain specialises in burgers
and fries and the ingredients used are freshly baked and handmade. The restaurant has its
operations in other countries including Saudi Arabia. The internal analysis of the company is
done with the help of SWOT framework and the Porter’s Value Chain analysis. The 12 Cs
framework is used to analyse the target market for the restaurant. The report is concluded by
stating that the chosen target market for the restaurant is India. The diverse culture of the
country will facilitate the business of the restaurant.

2INTERNATIONAL MARKETING FOR FIVE GUYS BURGERS
Table of Contents
Introduction....................................................................................................................3
Analysis of the macro and the micro environment of the business................................3
Analysis of the macro environment of the food industry...........................................3
Analysis of the micro environment of the food industry...........................................4
Analysis of the internal business of Five Guys Burgers by Porter’s Value Chain........5
SWOT Analysis of the company....................................................................................8
Strengths.....................................................................................................................8
Weaknesses................................................................................................................8
Opportunities..............................................................................................................9
Threats........................................................................................................................9
Analysis of the potential markets using 12 Cs Framework............................................9
Recommended approach of marketing in the target area.............................................11
Marketing mix of the company................................................................................12
Conclusion....................................................................................................................12
References....................................................................................................................14

3INTERNATIONAL MARKETING FOR FIVE GUYS BURGERS
Introduction
The analysis in the report is based on the study of the business environment of Five
Guys Burgers International and the expansion plan of the organization. Five Guys Burgers
was established in the year 1986 in Arlington County, Virginia and the restaurant had
extended its operations to five other locations in the Washington, D.C area. The company
was founded by Jerry Murrell along with his wife and five sons. The restaurant chain started
franchising its business operations from the year 2003 and this led to huge expansion of the
chain. The restaurant had its operations in more than 300 locations within the year 2012 in
United States of America (Fiveguys.co.uk 2017). The company operates in the locations both
as company owned stores as well as franchisees. The company has been facing issues in the
recent times regarding the expansion plans and adding items to the menu as well. The study
in this report is based on the macro and micro environmental analysis of the company. The
internal analysis of the company is done based on the Porter’s value chain model. The
potential market analysis for the expansion of the company is done with the help of the 12 Cs
framework. Further the potential market for the expansion of the company will be selected
based on this analysis (Forbes.com 2017).
Analysis of the macro and the micro environment of the business
Analysis of the macro environment of the food industry
As discussed by Joslin, Priebsch and Singleton (2014), the macro-environment
analysis involves six forces including demographic forces, political forces, economic forces,
socio-cultural forces, ecological forces and technological forces. The demographic force of
the macro-environmental analysis is related to the people of USA. The food habits of the
people of USA is firmly related to burgers. The study of the people staying in the country
where the company operates is important to decide the growth of the market. The growth in

4INTERNATIONAL MARKETING FOR FIVE GUYS BURGERS
the population of the world is another factor that affects all the industries whether it is related
to garments, food or any other industry. The global economic crisis is a factor that has
affected the food industry as well. The population has been growing in the recent years in the
developing countries like Japan, China, India (Argyres and Bercovitz 2015). This has opened
many opportunities for growth for the companies and expanding their international
operations. The opportunities of business have raised also due to the changing society and the
needs of the society is also changing constantly. The invention of new technologies in the
market is changing the business environment constantly. This has provided opportunities for
the development of the business as well (Paul and Roy 2014). However, the rules and
regulations regarding the foreign direct investment in many countries have become strict and
this can act as a negative factor for the expansion plans of the company (Dima, Grabara and
Modrak 2014). The political factors related to the business environment is another way by
which the business operations of the country are affected. The political environment of the
business needs to be stable so that the organization can control its operations easily and also
make plans for expansion. The growth of the developing countries with reference to the
stable economy of the United States of America helps to balance the economy and the prices
of the goods and services can also be controlled (Segal, Shaliastovich and Yaron 2015).
Analysis of the micro environment of the food industry
According to Eze, Odigbo and Ufot (2015), the micro-environment of the economy is
affected by six factors including customers of the company, the employees working in the
organization, the competitors of the company, the suppliers of the company and the channels
of distribution of the company, the investors of the company and the media link of the
company. The food industry is an ever-changing industry and the demands and needs of the
people also change continuously. The food habits of the people of USA where the restaurant
is based is perfectly suitable for the offerings and the products of the restaurant. The

5INTERNATIONAL MARKETING FOR FIVE GUYS BURGERS
expansion of the business of the restaurant based on franchisees is an inexpensive and fruitful
idea for the business of the restaurant (Dutta et al. 2014). The restaurant however has to face
stiff competition from the other restaurants offering the same cuisine. The competition of this
restaurant in the United States can be, McDonald’s, Starbucks, Subway, Burger King,
Wendy’s, Taco Bell, Dunkin Donuts and many more. The restaurant has to face competition
from these companies as the product range of these restaurants is more as compared to that of
Five Guys Burgers. The introduction of technology in the food market has changed the
scenario in the recent years. The reach of the restaurants has also increased resulting in the
increase of sales and profitability. The promotional costs of the company have also decreased
in the recent years with the help of social media marketing. This has led to the expansion
opportunities of the company in the international markets as well (Eberlein et al. 2014).
The suppliers of the company act as an important in the production process of the
food products. The restaurant therefore should aim at outsourcing the supplier activities and
using the franchisee process to expand their operations. The online growth of the food market
has facilitated the interaction with the customers and thereby trying to understand their needs
and desires from the organization (Wren and Rehm 2013).
Analysis of the internal business of Five Guys Burgers by Porter’s Value Chain
As discussed by Kaplinsky (2013), the Porter’s Value Chain analysis is used for the
internal analysis of the business. The activities related to the business are identified and the
advantage of the business over the competition in the market is analysed with the help of this
model. The business analysis of Five Guys Burgers is done by the Porter’s Value Chain
Model. The analysis based on the Porter’s Value Chain model is explained as follows,

6INTERNATIONAL MARKETING FOR FIVE GUYS BURGERS
Primary activities:
Inbound logistics – The inbound logistics of Five Guys Burgers mainly refers to the
selection of the best quality ingredients required for the burgers. The best quality American
cheese is used in the restaurant. The buns that are used by the restaurant are much sweeter as
compared to the normal buns available in the market. Roasted peanuts are offered in the
restaurants at most of the locations of the restaurant.
Operations – Five Guys Burgers operates in the United States and Canada. The
company operates both the self-owned and franchisees in these areas. The franchised
restaurants of Five Guys Burgers are owned by independent owners. The company operates
around 300 franchised branches in Canada and United States.
Outbound logistics – The products of the Five Guys Burgers are sold directly from
the self-owned restaurants or the franchised restaurants. The restaurant does not have any
intermediaries in the process (Eze, Odigbo and Ufot 2015).
Sales and marketing – The Five Guys Burgers are famous for their concept of
making the “better burger”. The restaurant had flourished with the help of positive responses
of the customers about the food. The promotional activities are performed in the recent times
with the help of digital marketing techniques. The restaurant also provides delivery services
through online ordering.
Service – The restaurant mainly aims at building passionate and loyal customers. The
menu of the restaurant has been similar since its inception, with some minor changes. The
founders of the restaurant have the vision of keeping the menu only about fries and burgers.
Secondary activities:

7INTERNATIONAL MARKETING FOR FIVE GUYS BURGERS
Infrastructure – The restaurants of the Five Guys Burgers are mainly decorated red
and white check boxes and there is a single counter present for the purchase as well as the
pick-up of the food as well. The restaurants consist of cork boards mounted on the walls for
the differently abled customers. The positions of the employees are depicted with the help of
uniforms. The employees who wear red t-shirts and the managers wear white or grey polo or
t-shirts (Yoder, Visich and Rustambekov 2016).
Human Resource Management – The employees of the restaurant are committed
towards providing the best service to the customers according to the vision of the founders.
They strive to provide the best handmade fries and burgers to the customers. The restaurant is
known to build a strong customer base with a huge number of loyal customers.
Technology development – The restaurant has upgraded its technologies with the
technological advancement in the business environment. The burgers and the fries are hand-
made, however, the restaurant has opened its online platform and they take online orders as
well (Gërguri Rashiti et al. 2017).
Procurement – The raw materials used for the burgers and the French fries are
procured fresh from the market. The burger buns are freshly baked and are not refrigerated.
These features of the restaurant help in building the immense customer loyalty.
SWOT Analysis of the company
Strengths Weaknesses
 The restaurant has strong focus
towards the products that they
serve to the customers.
 The restaurant is operated by the
family of Murrells and the menu
has remained same since the
opening of the restaurant.
 The restaurant has been profitable
just after few years of opening and
 The menu of the restaurant is
limited to only burgers and fries
and the founders of the restaurant
aim at making their burgers better
than that of the restaurants
serving the same cuisine.
 The restaurant faced major
problems in the beginning due to
the unfair means that were

8INTERNATIONAL MARKETING FOR FIVE GUYS BURGERS
has been going strong.
 The restaurant has a strong base of
loyal customers, who are
passionate about their food choice.
 The restaurant has been visited by
famous personalities like Barrack
Obama and this has given the push
to the sales and profitability of the
restaurant.
 The freshly baked buns and the
hand- made French fries are the
speciality of the restaurant.
undertaken by the employees.
 The founders have been pushed
time and again by the franchise
owners at the different locations
to increase the items in the menu.
 The restaurant faced a failure in
the coffee area and had to pull
back the product shortly after the
launch.
 The burgers of the restaurant were
labelled as unhealthy by the
Men’s Health magazine (Gobinda
Goswami and Haider 2014).
Opportunities Threats
 The restaurant has been growing
fast since its inception and had
established around 1039 stores in
United States of America and
Canada as well. The restaurant
has the plans to open around 1500
more stores.
 The decision of the company to
give franchisee of their
restaurants proved to be the best
decision of the company.
 The restaurant has been
successful in their overseas
operations as well.
 The restaurant can plan for the
expansion with the help of the
franchise in the other countries.
This will need less investment
from the part of the restaurant
chain and thereby the profits will
also increase.
 The menu of the restaurant
chain is a problem for the sales
and profit of the restaurants.
 The restaurant chain is facing a
lot of competition from the
other chains of restaurant in
the area. The competition of
Five Guys Burgers in United
States comprises of fast food
chains like McDonalds,
Starbucks, and many more.
 The increase in the
competition in the market has
also increased the pressure of
the franchise over the founders
to increase their menu items.
 The restaurant chain may have
to face the same problems in
their overseas operations as
well (Hanssens et al. 2014).
Analysis of the potential markets using 12 Cs Framework
Country – India is a country with diverse cultures and many types of people. India
shares its border with Pakistan, Bangladesh and other countries. India holds the second
largest rank in the world after China in terms of population, which holds the first rank. Japan
on the other hand is a country which is well organized and is the hub of technology.

9INTERNATIONAL MARKETING FOR FIVE GUYS BURGERS
Singapore is a small country of Asia; however, the country is strong in terms of economic
conditions.
Currency – China’s currency is Renminbi, or Chinese Yuan. The currency of India is
Rupees, currency of Japan is Japanese yen and the currency of Singapore is Dollar. The
exchange rate of the Indian Rupees is 64.78 rupees to 1 dollar. On the other hand, 112.08
Japanese Yen is equal to 1 dollar, 6.62 Chinese Yuan is equal to 1 dollar and the exchange
rate of 1.35 Singapore dollar is equal to 1 US Dollar. This shows that the Singapore dollar is
a strong currency as compared to the others (Kiszko et al. 2014).
Culture – The culture of India is diverse as there many different states with different
types of people. The Chinese and the Japanese culture is similar and the religious beliefs in
these countries is not quite strong. Singapore is a society which is cosmopolitan in nature and
the people belonging to different races live together. The cultures of the people of this
country are diverse in nature.
Control – China is country where the rule is under one party. The rule in India is
under more than two parties. In case of Japan and Singapore the control of the political
situation is under multiple parties (Huang and Sarigöllü 2014).
Concentration – The concentration of the people in China is mainly in the urban
areas, whereas the population of India is scattered in the urban and the rural areas as well.
The population of Japan and Singapore is also concentrated in the urban and the semi urban
parts of the countries.
Commitment – The investment related policies of India and China are suitable for
foreign investors. Japan is also a country which attracts the foreign investors and Singapore
has a strong economy having the ability to attract investors (Liu et al. 2017).

10INTERNATIONAL MARKETING FOR FIVE GUYS BURGERS
Communication – The mode of communication in India and China is through the
internet. Japan and Singapore are also technologically advanced and the mode of
communication in these countries is fast and convenient.
Choices – The food habits of the people of India are diverse as the cultures are also
different. Singapore is also a country with diverse cultures and the taste of the people are also
different. On the other hand, in the countries like China and Japan people follow similar
culture and the food habits are also similar. There are many local and international restaurant
chains already successfully operating in these countries (Ihtiyar and Ahmad 2015).
Channels – The distribution and the facilities related to the logistics in Japan, China
and Singapore are world-class. On the other hand, the geographical position of India helps in
the import and export facilities in this country. The climatic condition of India also helps in
keeping the country accessible throughout the year.
Contractual – The corporate system in India is much fairer as compared to that of
China. The Japanese corporate is also known to facilitate trade and foreign investment as
well. The laws of the Singapore government help in the establishment of any new business in
the country (Noland, Robinson and Moran 2016).
Paying capacity – The paying capacity of the people of China has increased in the
recent years. Japan being the technological hub of Asia also shows huge payment capacity.
The strong economy of Singapore facilitates the paying capability of the country. The paying
capacity of the people of India is high as the food market mainly consists of the youth of the
country.
Caveats – The competition in the Chinese market is high due to the presence of local
restaurants and same is the case for Japan as well. The market in India and Singapore is

11INTERNATIONAL MARKETING FOR FIVE GUYS BURGERS
however much more diverse and the growth opportunities for the restaurant chain is also high
as compared to the other countries (Joslin, Priebsch and Singleton 2014).
Recommended approach of marketing in the target area
The country that is chosen as the target market for Five Guys Restaurant chain is
India. The diverse culture of India and the different choices of the food will facilitate the
sales and the profit of the restaurant. The population of this country is the second highest as
compared to China and this is another factor that is profitable for the restaurant. The laws
related to the corporate competition is fair in this country and this will help Five Guys
Burgers to establish and explore the opportunities. The restaurant chain needs to enter the
market with the help of the franchisee process, thereby facilitating the profitability of the
company and expansion at the same time (Kaplinsky 2013). The founders should think of
sending some of the experienced employees from the restaurants that are already operating in
the United States and Canada, so that they can analyse the situation in the new market
segment.
Marketing mix of the company
The marketing mix of the Five Guys Burgers restaurant chain will consist of the 4 Ps
of marketing which includes, Product, Price, Place and Promotion (Bahadir, Bharadwaj and
Srivastava 2015).
The Products of the restaurant will include the Burgers which will be freshly baked,
sandwiches, fries, the breakfast menu, milkshakes and the drinks. The Price of the burgers
will be fixed at INR 250, the French fries will cost around INR 150, the milkshakes will
range from INR 150 to INR 300. The Price of the drinks will range from INR 150 to INR
300. The reasonable pricing of the products will help the restaurant chain to counter the
competition in the market, which are already present (Bizjournals.com 2017). The restaurant

12INTERNATIONAL MARKETING FOR FIVE GUYS BURGERS
chains which can give stiff competition to the Five Guys Burgers are McDonalds, Starbucks,
Subway, Burger King and many more. The Place where the restaurant chain can plan to open
the first franchisee is Mumbai, which is considered to be the financial capital of India. The
restaurant chain can then further increase its operations in the other metro cities of the
country. The Promotions of the restaurant can be performed with the help of digital
marketing techniques and the social media as well (Khan 2014).
Conclusion
The report depicts the analysis of the market of Five Guys Burgers with the help of
Porter’s Value chain analysis. The internal analysis of the company is done based on the
SWOT model. Further, the suitable target market for the restaurant is analysed based on the
analysis of the countries with the help of the 12 Cs framework. The target market that is
decided with the help of this analysis is India, as the culture of the country is diverse and the
choices of the people of this country is also variable. The report can be concluded by stating
that the Five Guys Burger restaurant chain has many opportunities of growth in the market.
India is a fruitful target market for the restaurant and can provide huge levels of profitability.

13INTERNATIONAL MARKETING FOR FIVE GUYS BURGERS
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