Global Marketing Strategy for Burger Fuel in Thailand
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The report discusses the global marketing strategy that can be adopted by Burger Fuel from New Zealand to establish its business in Thailand. It includes an analysis of the external and competitive environment, consumer behavior, and the global marketing mix.
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Running head: MARKETING PRINCIPLE Marketing principle Name of student Name of University Author note
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1 MARKETING PRINCIPLE Executive summary The report as prepared to discuss about how Burger Fuel in New Zealand could adopt the global marketing strategy to enter the global marketplace of Thailand. The assignment also included how the company should conduct the external environment analysis to evaluate the external factors affecting the business while the competitive environment was assessed to determine the presence of competitors in the market. This helped in grabbing the right opportunities to influence consumer buying behaviours and at the same time, manage the global marketing mix components properly to address the international marketing aspects. The joint venture or partnership working could be beneficial while the company must also focus on social responsibility campaigns to deliver healthy food items by adopting to the local culture and even contribute to the health and wellbeing of the environment and community as a whole.
2 MARKETING PRINCIPLE Table of Contents Introduction................................................................................................................................3 Findings and analysis.................................................................................................................3 External environment.............................................................................................................4 Competitive environment.......................................................................................................6 Consumer behaviour...............................................................................................................7 Global marketing mix.............................................................................................................8 Social responsibility and ethics............................................................................................10 Conclusion................................................................................................................................11 Recommendations....................................................................................................................11
3 MARKETING PRINCIPLE Burger Fuel from NZto other country THAILAND Introduction The report is prepared to discuss about the global or international marketing strategy that can be adopted by the restaurant chain named Burger Fuel from New Zealand to establish its business in Thailand. Being a marketing manager of the restaurant chain of New Zealand, I have been handed over the responsibility of researching on and develop a suitable international marketing strategy for global business expansion with ease and efficiency. The report will examine the concepts of international marketing and even conduct the external environment analysis for evaluating the political, social economic, legal and cultural factors (Chernev, 2018). It will also help us to understand about whether the company shall adopt a sales or marketing oriented strategy for influence consumer buying behaviours. The global marketing mix components will also be assessed here, which can allow for developing a good marketing strategy that will help Burger Fuel in New Zealand to contribute benefits and values to the hospitality, food and culinary industries in Thailand too. The objectives of the report are to develop an effective global marketing strategy that can help in allowing the company to expand to Thailand on the global context (Burgerfuel.com, 2019). Findings and analysis Burger Fuel wants to grow its business and reach Thailand, which can help in global business expansion and also generate higher revenue for the business in the global business marketplace (Christopher, Payne & Ballantyne, 2013). The company should adopt a new global marketing strategy for sustaining in the global business environment and at the same time, facilitate the consumer buying behaviours to make more purchases from the company newly set up in Thailand.
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4 MARKETING PRINCIPLE External environment The external environment would assess the political, social, legal, environmental, technological and cultural factors associated to the management of business in Thailand on a global context. The political factors that can impact the restaurant chain include the rate of tax, taxation policies and reforms along with the health and safety rules and regulations. For example, the health grading system for each nation is different and so the restaurant chain must make sure to implement Codes of conduct and practices properly according to the food and health grading criteria of Thailand to ensure meeting the standards and fulfil the needs of clients easily (Baines, Fill & Page, 2013). The economic factors include the minimum wages and benefits along with the condition of economy that can impact the restaurant industry of Thailand. Though the external factors are not visible, still Burger Fuel must focus on making assessment of these needs properly, furthermore ensure that after introducing a new restaurant chain by Burger Fuel in Thailand, the new employees to be appointed ate paid well. It has been found that the country lacks proper and robust laws, legislations and rules, due to which it becomes difficult for new businesses to set up in the location (Bowie et al., 2016). To ensure entering the market segments of Thailand, Burger Fuel needs to adopt the local culture of Thailand and ensure food delivery options for catering the needs of people. There has been higher level of awareness among people regarding the locally raised organic food items and this has influenced the new businesses entering the marketplace to deliver healthy food items that can improve the health and wellbeing of the community too (Gillespie & Riddle, 2015). With the advancement of technology, the business functioning has improved and this can be a great opportunity for Burger Fuel to create a digital system for managing the
5 MARKETING PRINCIPLE business transactions and at the same time, market the products online too. The technological advancements could allow for implementing information systems that would ease down the business operations and also manage acceptance of payments with the use of smart phones too (De Mooij, 2018). The legal factors constitute the restaurant functioning and with the implementation of new laws, rules and regulations, the company must aim at maintaining the business standards. The labour market reforms and policies lacked in Thailand, which also could make Burger Fuel attain competitiveness within the industry quickly while expanding business in Thailand. The employees of the organisations in Thailand are not protected by legislations and laws and due to this many of the employers within the restaurant industry have used the Labour relations Act to terminate union leaders before the certification of Unions by the Government (Griffith & Hoppner, 2013). The company should be cautious about preventing any forms of discrimination, furthermore ensure legally binding with the laws and rules to impact the entire restaurant industry and ensure managementof equal rights, responsibilitiesand opportunities along with protection of the workers too within the newly established restaurant chain (Zeriti et al., 2014). The environmental protection is a major aspect focused by the business to manage business functioning effectively. The establishment of the restaurant chain in a new location should create scopes for better traffic flow though it must be kept in mind about not harming the environment. The environment of the restaurant should also contribute to the decision making process. Considering the rising number of environmental issues that is a major concern to the atmosphere and environment, it is important to comply with the Government laws, rules and regulations along with Environment protection acts to ensure that the food items delivered are
6 MARKETING PRINCIPLE healthy and nutritious and it does not get waste (Tiago & Veríssimo, 2014). Burger Fuel should grab this opportunity to maintain a low carbon lifestyle and create positive influences among the customers’ minds to ensure management of sustainability and efficiency of business operations with efficiency. Competitive environment Thailand not only consists of a great number of fast food restaurant chains but also there are large numbers of burger joints in Thailand, which can make it difficult for Burger Fuel from NZ to attain competitive advantage in business while operating globally. Few large competitors of Burger Fuel are McDonalds, Daniel Thaiger Food Truck, 25 Degrees, Burger King, etc. and these competitors are strong forces, according to the Porter’s five forces model, which could affect the international business expansion in Thailand (Steenkamp, 2017). The restaurant market in Thailand is saturated with different sized companies and due to this, Burger Fuel must consider market focus, different kinds of products and various other featureswhileenteringthemarketsegment.Therivalryinthecompetitivebusiness environment is high, which also has resulted from the low costs of switching, furthermore might make customers more inclined towards other popular restaurant chains in Thailand rather than from Burger Fuel (Burgerfuel.com, 2019). With the presence of other new entrants in the market as well as the substitute productsandhighbargainingpowerofthesuppliers,thecompanymightfacestiff competition within the industry. Burger Fuel must consider the demands and expectations of the consumer at first, then adopt the local culture and even work in partnership with a local restaurant chain to gain better accessibility to the marketplace in Thailand and ensure attracting the potential customers through extensive market and network structure knowledge management (Magnusson et al., 2013). To enter the foreign market, the most suitable mode
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7 MARKETING PRINCIPLE of entry for international marketing could be thejoint venturing or partnership working strategy. Consumer behaviour The consumers’ behaviours have been changing consistently and it has impacted largely on the selection of fast food items and decision making process too. The consumers in Thailand like to place orders at the counter and make payment before eating and they have become health conscious too considering the increased risks of obesity and health related illnesses from consumption of unhealthy fast food items. To make a positive mind set among them, Burger Fuel needs to adopt to the local culture and consider the needs of people at first, furthermore focus on delivering something unique that are differentiable from the similar kinds of burgers made available by other companies in the marketplace (Magnusson et al., 2013). Burger Fuel, with the help of joint venture, should be able to draw in existing customers of the business with whom partnership working is being done and at the same time, prioritize on the attraction of new clients to strengthen the client base. Burger Fuel must bring uniqueness to the products by adding extra ingredients and even introduce fried items such as chicken crispy, nuggets and even pizzas, which could suit the local tastes and preferences of people in Thailand (Lee & Johnson, 2013). The assessment of customers needs’ should be possible with the help of online marketing where the customers would provide their opinions and feedbacks regarding their first purchase from the newly opened store of Burger Fuel in Thailand, based on which, necessary changes could be done for influencing their buying behaviours too. Considering the fact that people in Thailand love to consume beer along with burger, it could be a good opportunity for Burger Fuel to partner with a beer brand and ensure supplying beer and food items to cater the needs of people easily, which can be an added advantage for gaining competitive advantage (Burgerfuel.com, 2019).
8 MARKETING PRINCIPLE Figure: Market share for fast food restaurant chain in Thailand(Lee & Johnson, 2013) Global marketing mix Figure: Consumer product component (Charter & Polonsky, 2017) The global marketing mix would allow Burger Fuel to assess the ways by which, global business expansion would be possible with the consideration of various components including the consumer product, price, place, promotions. The products holds the most importance with the company needs to manage diversification to meet the diverse needs of people, furthermore adapt with the emerging market conditions, high purchasing power, etc. The decisions made while purchasing a food item from Burger Fuel in Thailand would be
9 MARKETING PRINCIPLE based on the branding, risk choices, brand image and positioning along with product lines, differentiation, etc (Charter & Polonsky, 2017). The product lines include burgers, side dishes, beverage items, salads and vegetables, sweets, etc. While establishing in Thailand, Burger Fuel must implement the cost leadership and cost differentiation strategies to setting competitive prices for the products and services, furthermore ensure assessment of supply and demands in the market to assess the present condition, The introduction of new product line should boost the sales by making the customers purchase value meals at bundle prices, thereby handle the intensity of competitive with much ease and effectiveness too. To manage proper distribution, the company needs to target the populated market segments and even introduce the mobile app for making customers easily access the food items and get additional discounts and offers, freebies while making purchase, This would also facilitate easy order placement and getting the food delivered at doorsteps (Winit et al., 2014). This is something unique when compared to the physical presence of the restaurant chain, which can facilitate the global business management in Thailand (Burgerfuel.com, 2019). Thepromotionsshouldbe donebyBurger Fuelthroughextensiveadvertising representing the culture of the place and ensure creating influence on the buying behaviours of consumers, The engagement of social media platforms could also help in gaining better brand exposure and for that the restaurant chain needs to conduct approaches for meeting the decisions of allocating resources with the evaluation of market budget and resources needed for production (Firestone et al., 2017).
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10 MARKETING PRINCIPLE Figure: Consumer product component (Firestone et al., 2017) To ensure proper distribution of products in the foreign marketplace, Burger Fuel also should manage greater control by appointing the foreign country middlemen and ensure development of shorter channels and gain more enterprise and skills of managing the market conditions accurately. Social responsibility and ethics To manage the corporate social responsibilities, values and ethics, Burger Fuel must find out innovative and sustainable ways of packaging the food items, furthermore develop excellent recycled and recyclable composting packaging for keeping the burgers and other food items safe and healthy, The food items are produced with the use of natural vegetable oil that has to be sourced from renewable sources, furthermore keep the environment safe and healthy too (Burgerfuel.com, 2019). The Aioli Punnets were made from corn starch, which should also represent 100 percent of high compostable item usage and ensure devoid of any plastics. The workplace must be free from discrimination and the employees should be paid right amount of wages for management of good values and ethics all throughout the business functioning to (Zeriti et al., 2014). The company’sstakeholder-driven approach: “Food,
11 MARKETING PRINCIPLE People, Environment and Corporate Governance”also could help in serving the customers and even create employment opportunities for people all over to contribute to the social and economic wellbeing of the community too. Conclusion The report focused on the concepts of global business marketing and considered Burger Fuel’s entry into the foreign market of Thailand. The consideration of environmental factors was done for assessing the political factors, economic factors, social, environmental and legal factorsthat influenced the business functioning while operating globally in Thailand. The competitive environment was high with the presence of rivalries and with the assessment of market conditions, Burger Fuel would likely make a sustainable position in the competitive marketplace with ease and efficiency. Recommendations It is recommended for Burger Fuel to manage global business by merging or acquiring another small business within the restaurant industry such as another small burger joint or even fast food centres to combine the various assets, resources and liabilities. This would help in gaining benefits such as greater economies of scale, tax benefits, diversification and synergy. It is recommended to adopt the joint venture or partnership working modes of entry into the foreign market to ensure successful global business management in Thailand for Burger Fuel This would help in reducing market risks, share rewards and benefits along with focus on joint product development, furthermore strengthen the accessibility to channels of distribution and focus on improving relationships between business and its customers.
12 MARKETING PRINCIPLE The implementation of cost leadership and differentiation strategy is recommended for setting the right prices and remain competitive within the business environment too The use of social networks should boost the brand exposure and marketing activities for ensuring that more customers are reached upon to enhance the revenue generation capability. The social responsibility campaigns should help in contributing to the environmental health and wellbeing effectively too
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13 MARKETING PRINCIPLE References Baines, P., Fill, C., & Page, K. (2013). Essentials of marketing. Oxford University Press. Bowie,D.,Buttle,F.,Brookes,M.,&Mariussen,A.(2016).Hospitalitymarketing. Routledge. Charter, M., & Polonsky, M. J. (Eds.). (2017).Greener marketing: a global perspective on greening marketing practice. Routledge. Burgerfuel.com. (2019). [online] Available at: https://www.burgerfuel.com/nz [Accessed 12 Jun. 2019]. Chernev, A. (2018).Strategic marketing management. Cerebellum Press. Christopher, M., Payne, A., & Ballantyne, D. (2013).Relationship marketing. Routledge. De Mooij, M. (2018). Global marketing and advertising: Understanding cultural paradoxes. SAGE Publications Limited. Firestone, R., Rowe, C. J., Modi, S. N., & Sievers, D. (2017). The effectiveness of social marketing in global health: A systematic review.Health policy and planning,32(1), 110-124. Gillespie, K., & Riddle, L. (2015).Global marketing. Routledge. Griffith, D. A., & Hoppner, J. J. (2013). Global marketing managers: Improving global marketing strategy through soft skill development. International Marketing Review, 30(1), 21-41. Lee, M., & Johnson, C. (2013).Principles of advertising: a global perspective. Routledge.
14 MARKETING PRINCIPLE Magnusson, P., Westjohn, S. A., Semenov, A. V., Randrianasolo, A. A., & Zdravkovic, S. (2013).Theroleofculturalintelligenceinmarketingadaptationandexport performance.Journal of International Marketing,21(4), 44-61. Magnusson, P., Westjohn, S. A., Semenov, A. V., Randrianasolo, A. A., & Zdravkovic, S. (2013).Theroleofculturalintelligenceinmarketingadaptationandexport performance.Journal of International Marketing,21(4), 44-61. Steenkamp, J. B. (2017). Global brand strategy: World-wise marketing in the age of branding. Springer. Tiago, M. T. P. M. B., & Veríssimo, J. M. C. (2014). Digital marketing and social media: Why bother?. Business horizons, 57(6), 703-708. Winit, W., Gregory, G., Cleveland, M., & Verlegh, P. (2014). Global vs local brands: how home country bias and price differences impact brand evaluations.International Marketing Review,31(2), 102-128. Zeriti, A., Robson, M. J., Spyropoulou, S., & Leonidou, C. N. (2014). Sustainable export marketing strategy fit and performance. Journal of International Marketing, 22(4), 44- 66.