International Marketing Plan: Betty Burger's Indian Venture

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This report presents a comprehensive marketing plan for Betty Burger's expansion into the Indian market. It begins with an introduction outlining the opportunity and the approach to the analysis. The report then delves into market analysis, examining market size, growth rates, population, market barriers, and drivers. An organizational analysis follows, assessing Betty Burger's customer audit, buyer behavior, marketing mix (4Ps), competitor analysis, product positioning, and market analysis. The macro-environmental analysis includes PESTLE, Porter's Five Forces, value chain, BCG matrix, and SWOT analyses to provide a holistic view of the market landscape. The report concludes with a summary of the findings and strategic recommendations for Betty Burger's successful entry and growth in India, considering the competitive fast-food market and changing consumer preferences. The report also highlights the cultural nuances, legal aspects, and challenges associated with market entry, providing valuable insights for strategic decision-making.
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Running head: MARKETING AND MANAGEMENT
Marketing and management
Name of the University:
Author’s Note:
Course ID:
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Table of Contents
1. Introduction:.............................................................................................................................3
2. Market analysis:.......................................................................................................................3
2.1 Size of the market and growth rates:.....................................................................................3
2.2 Population:.............................................................................................................................3
2.3 Market barriers and market drivers:......................................................................................3
3. Organizational analysis:...........................................................................................................3
3.1 Customer audit and buyer behavior:......................................................................................3
3.2 Marketing mix analysis:........................................................................................................3
3.3 Competitor’s analysis:...........................................................................................................3
3.4 Market analysis of the product:.............................................................................................3
3.5 Positioning map of the competitors:......................................................................................3
4. Macro environmental analysis:................................................................................................3
4.1 PESTLE analysis:..................................................................................................................3
4.2 Porter’s five forces model:.....................................................................................................3
4.3 Value chain analysis:.............................................................................................................3
4.4 BCG matrix:...........................................................................................................................3
4.4 SWOT analysis:.....................................................................................................................3
5. SWOT analysis:........................................................................................................................3
6. Conclusion:...............................................................................................................................4
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MARKETING AND MANAGEMENT
1. Introduction:
The current paper intends to develop the product opportunity for its export or expansion
in one of the Asian countries that is India and such analysis is done by highlighting the various
challenges and opportunities using different strategic market analysis tools. The comprehensive
international marketing plan has been developed by conducting situational analysis,
organizational analysis, competitor’s analysis and market analysis. The marketing plan would be
developed for the expansion of the product opportunity of Betty burgers, which is an inspired
burger shack of Australia in the Indian market.
2. Market analysis:
2.1 Size of the market and growth rates:
The market of burger in India has been stalling lately as the target market of the fast food
chain has already been saturated. From the perspective of demand, there is enough room for the
new players. However, challenge is faced when saturation may reached due to the new brands
reaching the same clusters. The overall market of burger continued to face some challenges due
to reduced discretionary spending of the customers and impact of demonetization (Weinstein &
Pohlman, 2015).
2.2 Population:
It is not easy to woo the customers of India in particular and it is required by Betty
Burger and Concrete Company to battle it out with the leader in the fast food market. Every day,
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MARKETING AND MANAGEMENT
millions of Indian eat ethnic fast food and the new players are entering the market in and
organized way in order to leverage the growth of the fast food market.
2.3 Market barriers and market drivers:
The market barrier of burger in India is overly restricted and the new entrants might face
some cultural issues when expanding. Betty burgers while expanding their business into India
might face some barriers. Demand and supply factors of the country are considered the market
drivers for the expansion of the business of Betty India. Some other factors include changing
demographic profile and income of the consumers, technological innovation, and robust
economic growth, increasing focus on wellness and health and increasing internet penetration.
The propensity to spend is increasing in Tier I and Tier II cities and they are being turned into a
new demand centers (Homburg et al., 2017).
3. Organizational analysis:
The stores of Betty burger owned by Retail zoo accounts for about $ 400 million sales
and this comprise of 30% of the total network sales. In Australia, there is a scope of opening of
100 more Betty burgers stores and it can be seen that the stores of Betty is potentially expanding
which opens the scope of its international expansion (Betty's Burgers 2019).
3.1 Customer audit and buyer behavior:
Since the consumer makes buying decision, their behavior plays a very important role in
the marketing industry. Buyer behavior of customers in India is changing with change in the
demography and 45% of the customers constitute the vegetarian fast food market (Ficci.in,
2019). The market share of the burger has increased tremendously because of the fast casual and
non-casual dining restaurants. In addition to this, the consumer behavior has shifted tectonically
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in rising of internet usage that has changed the outlook of the customers. Consumers are
becoming more conscious of what they are eating due to increasing focus on wellness and health
(hospitalitymagazine.com.au 2017). Some of the recent studies have shown that the prevalence
of diabetes in India in urban population has increased. This is inducing customers to become
more conscious and checking the ingredients written on the package.
3.2 Marketing mix analysis:
In response to the saturated and dynamic condition of the global quick service industry,
Betty Burger uses the marketing mix for the effective implementation of the marketing plan.
Betty make use of product, price, place and promotion for achieving the marketing objectives.
Product- Considerable emphasis is placed by Betty Burger on the development of menu
sought by the customers and the secret to the business of Betty is that they treat their customers
as guests and say they do not serve customers. It is committed to deliver the quality product and
serve the juiciest, freshest and mouthwatering burgers. Menu of Betty burger is sweet and short
with the choice of just six burgers including a veg option and kid burger.
Price- Classic Burgers are available at reasonable price of $ 10 and the kid’s burger
available at $ 7. These also include crispy chicken burger having lettuce, south fried chicken and
tomato along with special sauce of Betty. The add on such as bacon is available at extra price of
$ 3. At an extra of $ 2, customers were provided with some delicious and crispy onion rings and
the vanilla thick shake at $ 8.
Place- Burgers of Betty burgers are served to people in the restaurant of Betty Burger and
concrete company. Currently, there are nineteen stores across New South Wales, Queensland,
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Victoria and South Australia. Over the next twelve months, the organization has a strong
expansion plans.
Promotion- While the expansion of the stores across different places, Betty Burgers are
required to make adjustments in their opening time, staffing, approach to market and advertising.
However, the caliber of service is one of the strategies that is used by the restaurant across all the
stores.
3.3 Competitor’s analysis:
The business of Betty Burger is growing rapidly with opening of more than eight stores
in the time span of two years. However, their business face competition from some other seller of
burgers such as Nosh Express, Burger bar, Burger Lounge of Coolangatta in Queensland Off the
track in Port Douglas, the bottle of milk in Victoria, Nordburger and Georger hamburger shop
(Betty's Burgers 2019).
3.4 Market analysis of the product:
There are different types of burgers sold by Betty burgers, which comprise of Crispy
Chicken 11, Betty’s classic 10, Pork belly 13, Bare Betty 10, Shroom burger, Spicy chicken,
Betty’s Deluxe chicken, Betty’s double 16, crispy chicken supreme 15, Betty’s classic track 16
and Kid’s 7. The specialty of the burgers served by the Betty Burger and Concrete Company is
the add on and customization. Some of the add on include extra beef patty 5, bacon 3, gluten free
bun 2 and extra crispy chicken (Betty's Burgers 2019). One of the families order came with
request to hold on the tomato on the crispy chicken burger, which was, met with a friendly no
worries and it arrived as ordered.
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MARKETING AND MANAGEMENT
3.5 Positioning map of the competitors:
It can be observed from the positioning map that Betty Burger would be placed in the
quadrant of reasonable price and good quality food. Segregation of the consumer market is
attracting the brands from different regions. Consumers in India are becoming more conscious of
eating food at high quality outlets and the service industry is India is blessed with dynamic,
young and diversified food loving having high disposable income (Di Benedetto & Lindgreen,
2018). Therefore, it offers opportunity of expansion of the Betty Burger in the country.
4. Macro environmental analysis:
4.1 PESTLE analysis:
Political factors
Presence of large
number of
Economic factors
Rising income of
households
Social factors
Increase in the health
conscious consumers
High quality
Low quality
High priceLow price
KFC Macdonald
Burger King
Betty Burger
Pizza hut
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international and
domestic brand.
Compliance and
package regulations
Attitude of
government (Sridhar
et al., 2016)
Increasing economic
growth
Higher discretionary
income
Increase in the export
price
Higher cost of labor
Tectonic shift in the
behavior of
consumers
Lifestyle and health
trend
Rising health
awareness
(Srivastava, 2015)
Technological factors
Demanding
innovation in the
business models and
change in
technological trends
Engaging and
attracting the
customers
Changing the way of
customer service
provision
Use of media and
digital displays
Legal factors
Nutrition and food
quality standards
influenced by the laws
and food regulations.
New demands created
by waste management
and packaging laws
(Balaji & Arshinder,
2016).
Compliance with the
marketing and sales
regulation.
Sustainability,
hygiene and
compliance issues
Environmental factors
Increasing public
consciousness has
resulted in increasing
initiatives of green
strategies and
environmental
movements.
Increasing pressure on
the fast food chain
stores toward the
children food and
waste management.
Implementation of
sustainable supply
chain.
4.2 Porter’s five forces model:
Suppliers power Buyers power New entrant
threats
Competition
amongst
rivalry
Threat of
substitutes
Lower bargaining
power
Contributi
on of
suppliers
toward the
industry
Differenti
ation of
product of
suppliers.
Higher
bargaining
power
Profitab
ility
Threat
of
backwar
d and
forward
integrati
on
Threats of new
entrants is
medium.
Brand
identifica
tion
Economi
es of
scale
Access
to
technolo
High level of
competition
amongst
rivalry.
Corpo
rate
strateg
ies
Switc
hing
cost
Growt
High level of
threat for
substitutes
Price
value of
substitu
tes
Cost of
switchi
ng for
users
Availab
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MARKETING AND MANAGEMENT
gy
Learning
and
experien
ce effects
h of
indust
ry
ility of
close
substitu
tes
4.3 Value chain analysis:
It is a strategy that is used for analyzing the internal activities of the firm, which is
divided into primary and secondary activities. Primary activities of Betty Burger comprised of
inbound logistics, operation, marketing and sales and outbound logistics. Supporting activities on
other hand include human resource management, procurement, technological development and
human resource management (Kotler 2018).
Inbound logistics
Developmental
licensee
Independent
franchisee
Operation
Machine
Direct
supervision
Sales
Promotional
strategy
Adverting and
posting
Outbound logistics
Counter
service
outlets
Stores
Restaurants
Marketing
Custom
blended and
natural
products
Technological
development
Make the
most of
technological
advancement
Using digital
media
Human
resource
management
Engaging
online
community
Successfully
launching
presence of
social media
Procurement
Grooming of
employees
Creating
employee
friendly staffs
4.4 BCG matrix:
BCG matrix is a growth share analysis, which can classify the business in accordance
with the growth rate. There are four segments such as stars, cows, dogs and question mark. Stars
have higher market share and it carries out operation in high sales growth industry. Question
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MARKETING AND MANAGEMENT
mark are low market share and high growth industry and cash cow has high market share and
low sales growth. Dogs on other hand are the categories having low market share and low sales
growth (Zimmerman & Blythe, 2017). It can be inferred from the analysis that the Betty Burger
falls into the category of question mark as the market share is quite low and it operates in the
high growth industry.
5. SWOT analysis:
Strength-
Burger sold by Betty Burger is 1950’s inspired burger shack and they are based around
on four proteins such as fried chicken, classic beef patty, crispy pork belly and
mushroom. It can be ordered in the bare form or it can be swapped in a gluten free bun
along with add on such as onion rings, thick shakes, fries, wines and bottled beers by the
glass (Järvinen & Taiminen,2016).
Betty burger offers the quality product and at reasonable price with wide degree of
customization and offering quick service.
Betty Burger is capable of pulling the crowd and some of its recent expansion had come
up with thronged of people queued outside its store and this serves as the testament to
the overall experience and quality of food (Johnsen, 2018).
The product line also include some desserts such as chocolate chip cookies dough,
signature concrete in frozen custard, glazed donuts and new York cheese cake.
Popularity and friendly staff members are other strengths of Betty burger.
Weakness-
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Compared to bigger food chain, there is a limited number of stores of Betty Burger
The market share revenue is lower as it is a small chain.
The expansion of this restaurant is in limited countries and hence lesser people have
knowledge about its existence.
Opportunities-
The menu of Betty burger can be expanded to include and diversify their product lines to
meet the increasing demand and mainly in the scenario, when it is seeking expansion in
the Asian countries (sunshinecoastdaily.com.au 2019).
The brand can gain popularity in the country of expansion by building brand of loyal
local base of customer.
The delivery service and waiter service is offered at par with the standard of global
industry.
Threat-
Threats can be faced from the health conscious customers who are always looking for the
ingredients on the package before consuming the food.
They can face extreme competition from large multinational burger chains.
Other threats also include increasing price of raw materials and changing economic
scenarios of the country such as India.
6. Conclusion:
The report prepared elucidates the overall analysis of the expansion of the product of Betty
Burger and Concrete Company in the Asian country India. The market analysis of fast food chain
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in India seems to be quite promising because of the growth of industry due to different factors
supporting the growth. In addition to this, from the organizational and competitor analysis of
Betty Burger, it is inferred that the export of product has the capacity of gaining foothold in the
Indian market because of the quality and the pricing of product. The expansion of the product is
also supported the macro environment of the country where the product would be launched.
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References list:
Balaji, M., & Arshinder, K. (2016). Modeling the causes of food wastage in Indian perishable
food supply chain. Resources, Conservation and Recycling, 114, 153-167.
Betty's Burgers. (2019). Bettysburgers.com.au. Retrieved 16 August 2019, from
https://www.bettysburgers.com.au/#Menu
Betty's Burgers: the key to successful expansion - hospitality | Magazine. (2017). hospitality |
Magazine. Retrieved 16 August 2019, from
https://www.hospitalitymagazine.com.au/bettys-burgers-key-successful-expansion/
Di Benedetto, C. A., & Lindgreen, A. (2018). The emergence of Industrial Marketing
Management as the leading academic journal in business-to-business
marketing. Industrial Marketing Management, 69, 5-12.
Ficci.in. (2019). Retrieved 16 August 2019, from http://ficci.in/spdocument/23056/foodzania-
release2018.pdf
Homburg, C., Jozić, D., & Kuehnl, C. (2017). Customer experience management: toward
implementing an evolving marketing concept. Journal of the Academy of Marketing
Science, 45(3), 377-401.
Janssen, H. G., Davies, I. G., Richardson, L. D., & Stevenson, L. (2018). Determinants of
takeaway and fast food consumption: a narrative review. Nutrition research
reviews, 31(1), 16-34.
Järvinen, J., & Taiminen, H. (2016). Harnessing marketing automation for B2B content
marketing. Industrial Marketing Management, 54, 164-175.
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Johnsen, T. E. (2018). Purchasing and supply management in an industrial marketing
perspective. Industrial Marketing Management, 69, 91-97.
Kotler, P., Keller, K. L., Ang, S. H., Tan, C. T., & Leong, S. M. (2018). Marketing management:
an Asian perspective. Pearson.
Singh, R. (2017). The resurgence of India's fast food industry. The Economic Times. Retrieved
16 August 2019, from https://economictimes.indiatimes.com/industry/services/hotels-/-
restaurants/the-resurgence-of-indias-fast-food-industry/articleshow/62098915.cms?
from=mdr
Sridhar, R., Sachithanandam, V., Mageswaran, T., Purvaja, R., Ramesh, R., Senthil Vel, A., &
Thirunavukkarasu, E. (2016). A Political, Economic, Social, Technological, Legal and
Environmental (PESTLE) approach for assessment of coastal zone management practice
in India. International Review of Public Administration, 21(3), 216-232.
Srivastava, R. K. (2015). How differing demographic factors impact consumers’ loyalty towards
national or international fast food chains: A comparative study in emerging
markets. British Food Journal, 117(4), 1354-1376.
The right bite! Top 10 best burgers in Australia . (2019). Sunshine Coast Daily. Retrieved 16
August 2019, from https://www.sunshinecoastdaily.com.au/news/right-bite-top-10-best-
burgers-australia/2694758/
Weinstein, A., & Pohlman, R. A. (2015). Customer value: a new paradigm for marketing
management. In Proceedings of the 1997 Academy of Marketing Science (AMS) Annual
Conference (pp. 132-133). Springer, Cham.
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Zimmerman, A., & Blythe, J. (2017). Business to business marketing management: A global
perspective. Routledge.
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