Marketing Report: Five Guys Burger International Expansion Strategy

This report provides a detailed analysis of the global fast-food industry, focusing on the marketing strategies of Five Guys Burger International for international expansion. The report begins with an introduction to marketing and its significance in promoting value and building customer relationships. It then delves into the macro and competitive factors impacting the fast-food industry, utilizing PESTEL and Porter's Five Forces analyses to assess the external environment. The internal business environment of Five Guys is evaluated through a SWOT analysis and Porter's value chain. The report further explores potential target markets, including Japan, India, Singapore, and China, considering socio-cultural factors and appropriate marketing mix strategies. The analysis aims to identify competitive advantages in the international marketplace, offering insights into market entry modes and strategies for success. The report concludes with a summary of key findings and recommendations for Five Guys' international expansion efforts.

Marketing

Executive Summary
This report summarised various factors which impact on global fast food industry. Marketing is
an activity for increasing customers awareness about the company as well as its products in
appropriate manner. In this report, Five Guys Burger International is a fast food company that
wants to expand their operations in other countries. PESTEL and Porter’ Five Force was defined
to understand macro-economic factors that can impact industry. In this project SWOT analysis
also mentioned for identifying strength, weakness, opportunities and any threat of the company
that may impact the expansion programme of the organisation The main purpose of this reports
is to analysis competitive advantage in the international market place.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
Question1: Macro and competitive factors that impact global Fast food industry.....................1
The impact of competitive factors on global Fast food industry................................................3
Question2 The internal business environment of Five Guys Burger International.....................3
SWOT analysis of Five Guys Burger International....................................................................5
Question3 Evaluation of the potential target markets of Japan, India, Singapore and China.....6
Question4 Mode of entering Singapore......................................................................................7
Question5 Socio-cultural factors and marketing mix of Singapore............................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
APPENDIX....................................................................................................................................10

INTRODUCTION
Marketing is an essential function for every organization for promoting and delivering value
products in front of customers so that they fulfil their needs in appropriate manner. Basically, it
is a social process in which every individual and business acquire their needs and wants. By
using marketing concept, company create values for its customers and also maintain strong
relationship in order to gain higher profitability. Along with this, marketing is also a
management because it helps in identifying as well as satisfying customers’ needs in appropriate
manner. Every organization use marketing process in their activities in which they invite large
number of customers by providing quality product and also increase their awareness towards it
brand and services (Weerawardena and Mavondo, 2011). The main benefit of marketing is to
expand this business in international market because it contributes in promoting their products at
foreign and national market so that they easily established their market in effective manner.
International marketing is an application of marketing which aid in satisfying customers’
requirements across national boundaries. Present report is based on Five Guys Burgers
International; it is fastest growing restaurant chain in America. They offer and deliver food
services in various stores at U.S This report defines all the macro factors which affect the
company performance. Along with this, competitive factors also mentioned in this report
TASK
Question1: Macro and competitive factors that impact global Fast food industry
Restaurant and any food chain industry is well settled and it play an important role in Fast
food industry. All the restaurant having good and strong brand image in the market and
customers mind. In Five Guys Burger International is also having strong brand image at market
and large number of customers use its services for satisfying their needs and requirement is
effective manner. There are various factors which impact on fast food industry image and its
working process in the market. All these factors are known as macro factors which directly affect
the business performance because all are non-controllable by the company. (Turnbull and Valla,
2013). For this PESTLE analysis is a tool to evaluate its impact on business organization at
marketplace which are as follows:
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Source: PESTLE Analysis, 2016
PESTLE analysis is more important for the business organization to gather all relevant
information about all external factors because it directly affect organization’s performance and
productivity (PESTEL analysis, 2016).
Political factor: This is one of the most important factor which directly impact on business
organization. Stability of politics in the country where company operate their business is more
important because it aid in attracting large number of investor in the firm. This factor is
responsible of money and people (Thomé, Vieira and dos Santos, 2012).For example, japan is
permanent member of security council and also member of United Nations. They have good
economic power so that they maintain good relation with other countries like ASEAN. They also
have dispute with China and Taiwan due to marine and natural resource. So that the government
set various legislation to make their political process effectively. With the help of this they
provide better services to their customers.
Economic factor: This is also more important for the company to maintain their profitability in
effective manner. Both political and economic factors are interrelated because if political factors
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are not stable then it directly effects on the financial condition of the people which leads to
decrease the flow of money. For example, India has initial rapid economic growth which aid in
improving the living standard by providing the opportunities to eliminate the poverty and
unemployment. In India economic factors are continuously improved like the GDP rate was 6%
in 2009 that is third highest rate of purchasing power. In recent time the India reserve US dollar
in effective condition. On the other hand, the Japan has 0.4% GDP rate in 2009. Population of
Japan is below the poverty because the people are suffering from unemployment. In this country
the standard of the products is very high they use advance technology to and also get technical
education which contribute in development of the country. On the other hand, Singapore is a
corruption free environment which is more effective for them to motivate their staff members to
produce quality services to their employees.
Social factor: This is also effective because it includes life style of people, culture, region and
ethical values which helps in increasing the overall success of the company. It is more important
for the restaurant to understand all the needs of the customers to maintain their process and
satisfy customers’ needs in appropriate manner. For example, India is most populous nation with
approx. 1.1 billion populations over there. Id divided in various age structure such as: 0-14-
Approx. 31.8%, in 15-64 year- Approx. 63.1% and above 65 years approx. 5.1% populous has in
India. All are having their taste and preference so that cited company provide them accordingly.
Singapore follow traditional family values so that it is fact that younger generation use western
values in which the company should aware about their taste and preferences in order to get their
satisfaction in effective manner.
Technology factor: New and advance technologies is also more important to produce innovative
and quality products which offered by the company to its customers in order to fulfil their needs.
Japan have best technologies which aid in increase the performance and also contribute in
economy growth. They focus on higher education of technologies so that they introduce
advanced services in front of customers.
Legal factor: Legal changes also affect the overall performance of the company so that it
is main responsibility of the firm to update all the legal factors on timely basis (Shukla, 2010).
All the changes have to manage by the Five Guys Burger International so that they easily provide
their quality services to its customers and get their higher satisfaction in effective manner.
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Environmental factor: This concept is based on globally which also directly affect the
company performance so that it is important responsibility to take care of its environment and
also reduce the pollution in effective way (Magnusson, Westjohn and Zdravkovic, 2011). For
this government set various rules and regulation which have to be follow by the cited company to
protect the external environment in effective manner.
The impact of competitive factors on global Fast food industry
To analysis of micro factors, the Porter's five model is one of the best tool which aid in
evaluating competitive advantage of the market and also define the market competitiveness.
There are some effective points which define the competitive factor of the market which are as
follows:
(Source: Porter’s Five Forces of Competitive Position Analysis, 2013)
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Bargaining power of Buyer: Customers bargaining power is fast and slow because their
taste and preferences are continuously changed. In which they have low power so that the overall
result is moderate.
Bargaining power of Suppliers: In this supplier having higher power of bargaining so
that they supply their quality products at very low price in market place which lead in attracting
more and more customers.
Threat of new entrants: In this the market define various entries are there who operate
their business and provide dynamic services at cheapest rate (Glowik and Smyczek, 2011). In the
market place, fast food industry is established their business to attract large number of customers.
Rivalry: In this, competitors are there in market because at market fast food industry are
well established so that they try to sell their product at wide range as compare to the rivalry. This
type of industry invests more money to capture the large market share in effective manner.
Threat of substitute: This factor defines the low substitution of the fast food industry
because in this industry the customers taste and preferences are continuously change time to time
so that threat of substitute are very low.
Question2 The internal business environment of Five Guys Burger International
After evaluating as well as analysis the internal factors, Five Guys Burger International
Restaurant measure its internal components which is controllable by the company in effective
manner (Fastoso and Whitelock, 2011). This factor of business helps to the manager to
understanding about its strength and weakness which aid in reducing the chances of uncertainty
in effective way. For measuring the internal business environment Five Guys Burger
International use porter value chain analysis.
A value chain is an effective activity which are used by the company to define the better values
for its customers in order to satisfy their needs (Dinnie and et.al., 2010).
Primary Activities: This type of activities is related to maintenance and sale of the company
which aid in offering quality services to its customers. Inbound logistics: It include storing, receiving and allocating of resources in internal
process of the company. In this the suppliers play an important role by offering the
quality services to its customers.
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 Operations: These activities are related to the output and input of the company which
known as operations. Cited firm having effective and best operation system which lead in
offering quality products and services to their customers. Outbound logistics: This activity is related to the distribution of the company. In this the
services are intangible, and the product of the company is tangible which aid in satisfying
customers’ needs in appropriate manner. In this the company maintain their actual time in
which they communicate with the logistics so that they easily remove all the problems
with the help providing better guidelines as well as regulations. Marketing and sales: This activity if more important for the company which define firm
services in front of customers (Diamantopoulos, Schlegelmilch and Palihawadana, 2011).
Five Guys Burger International Restaurant provide quality services to its customers
which aid in enhancing the overall performance of the company.
 Service: This is also an important activity which helps in increasing the customer’s
acquirement towards the products of company.
Secondary Activities: These types of activities are related to the primary function of the Five
Guys Burger International Restaurant.
 Procurement: It is also an effective process in which cited company find the vendor who
easily fulfil organizational requirements in effective price. So that firm easily offer their
services in appropriate manner.
 Human resource management: It is more important for the organization to include
skilled and experience workforce (Colton, Roth and Bearden, 2010). Five Guys Burger
International Restaurant having more effective employees who perform their work and
also provide quality services to its customers.
 Technological development: For attain higher success at market place Five Guys Burger
International have to update their technology and methods which it uses in offering
quality products to its customers and attain higher satisfaction level
 Infrastructure: Overall structure as well as system is effectively established by the Five
Guys Burger International Restaurant. All these systems include the legal, accounting and
managerial which aid in evaluating the overall performance of the company.
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SWOT analysis of Five Guys Burger International
This analysis is more important for cited company because it define overall performance
and also mentioned the both weak and strong elements in appropriate manner.
(Source: Duncan Haughey, 2017)
Strength: These strength of the cited firm is evaluated by internal analysis of primary activities
which are as follows:
 Brand image of the company is biggest strength in the market.
 One of the fastest growing industry in U.S.
 Offer quality products at affordable price.
Weaknesses: All these weaknesses of the company are measured by the primary activities:
 Low advertisement.
 Low market share is also a weakness of the company.
Opportunities: Various opportunities of the Five Guys Burger International Restaurant is also
mentioned in below:
 They can focus on healthy food services to its customers.
 They can bring innovation in their products and services.
 Expand their business in various countries.
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Threats: In the market place threats are always there which are as follows:
 Health concerns customers.
 Competitors activities.
 Unnecessary legal rules and regulations.
Question3 Evaluation of the potential target markets of Japan, India, Singapore and China
Opportunities is more important for the company to attain the growth. Before making expansion,
it is more important for the company to evaluate various markets.
Country: There are four countries which are India, Japan, Singapore and China. All are having
various activities and elements of the economy (Chung, 2010).
Concentration: It define the geographic location and market structure in which company target
the customers.
Culture/ consumer behaviour: These various are very different in four countries that affect
their services and products which is used by the customers.
Choices: Customers choice is completely different which impact on their culture. In this, the
Singapore having positive and effective choice which increase the company sale.
Consumption: Singapore people are well personality so that they easily spend more money on
their satisfaction which increase the overall performance of the Five Guys.
Contractual Obligations: Every country having their own laws and regulation that direct impact
of business performance. Japan having stricter rule which increase the overall cost of the
company but the Singapore legislation is very lenient which improve the overall profitability of
the company.
Commitment: These factors is related to the commitment of the nation because every country
having their own system of working. But in this Singapore government having effective system
which is also an affordable cost.
Channels: Singapore having best channels in their infrastructure. Japan India and China have
better structure of offering goods and products to their customers.
Communications: Singapore having effective communication network as compare to other
countries.
Capacity to pay: It is related to the customer’s capacity because some time customers cannot
buy the products which is not useful for them. This country is better than other countries.
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