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:
1

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
2

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.
3

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)
4

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.
6

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.
8

Currency: This affect the total investment of the nation. Cited company get profit when the
margin of the dollar and nation currency is high (Andersson and Servais, 2010). On the other
hand, they invest more money when margin is very low.
Caveats: This framework define various condition which is related to the all four markets.
Which also affect the organization working in negative way.
Question4 Mode of entering Singapore
Five Guys Burger International Restaurant uses various modes in order to venture in Singapore.
This method aid in increasing the brand image and also develop in various countries in effective
way. In this Strategic Alliance is one of the best strategy that is used by the cited company in
Singapore at the time of bearing high risk in the marketplace. It is an important responsibility of
the Five Guys to evaluating their advantage and disadvantage to entering the functional market
which already exist. There are some advantages of the company are as follows:
 It helps the company in understanding the requirements and market trends in effective
way.
 It also aids in gathering the proper knowledge of the partners.
 It also helps in minimising the invested cost.
 By using strategic alliance, they improve their marketing process.
All these advantage of this method helps in entering into Singapore (Dinnie and et.al.,
2010). So that they have to be more aware about its contract which aid in improving the overall
growth.
Question5 Socio-cultural factors and marketing mix of Singapore
Socio cultural factors affect the overall buying behaviour of the customers. It is more important
for the company to analyse these factors appropriately. It is related to the four factors like:
Hierarchy: People of Singapore have simple life style and they prefer simplicity. In this all the
decision are taken by the elder of the house.
Belief and practices: All the people believe in their religion and also highly influenced in
effective way. Their purchasing behaviours are based on their culture.
Collectivism: All the people of Singapore believes in collectivism so that they work as a team
and achieve positive results.
9

Singapore Characteristic: All the people having simple culture and they give money for their
satisfaction toward the products. If income of people is high, then they always want to purchase
branded products.
This culture highly affects the marketing mix of the cited company so that it is an important
responsibility of the company to make effective marketing mix according to the customers’
requirements. Place, the company set their outlets near to the posh location so that customers are
easily reach that point. (Chung, 2010). With the help of these elements cited company invite
large number of local people towards its products and service.
With the help of marketing mix company can easily expand their business in Singapore
market. All these are related to the business strength and weakness which lead in influencing the
customers’ demands toward its products and services.
CONCLUSION
From the above-mentioned report, it can be concluded that Five Guys Burger
International Restaurant is one of the big fast food industry which operate their business at
various location. For this Singapore is a best location in which company can easily expand their
business.
There are various recommendations for Five Guys Burger International Restaurant which
aid in becoming biggest fast food company and get desirable objectives in appropriate manner.
For attain higher success they need to provide better services to its customers in order to attain
higher satisfaction by them.
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REFERENCES
Books and journals
Andersson, S. and Servais, P., 2010. Combining industrial buyer and seller strategies for
international supply and marketing management. European Business Review. 22(1).
pp.64-81.
Chung, H. F., 2010. International marketing decision governance, standardisation, and
performance: A framework in the cross-market scenario. European Journal of
Marketing. 44(11/12). pp.1642-1666.
Colton, D.A., Roth, M.S. and Bearden, W.O., 2010. Drivers of international e-tail performance:
the complexities of orientations and resources. Journal of International Marketing.
18(1). pp.1-22.
Diamantopoulos, A., Schlegelmilch, B. and Palihawadana, D., 2011. The relationship between
country-of-origin image and brand image as drivers of purchase intentions: a test of
alternative perspectives. International Marketing Review. 28(5). pp.508-524.
Dinnie, K. and et.al., 2010. Nation branding and integrated marketing communications: an
ASEAN perspective. International Marketing Review. 27(4). pp.388-403.
Fastoso, F. and Whitelock, J., 2011. Why is so little marketing research on Latin America
published in high quality journals and what can we do about it? Lessons from a Delphi
study of authors who have succeeded. International Marketing Review. 28(4). pp.435-
449.
Glowik, M. and Smyczek, S., 2011. International Marketing Management: strategies, concepts
and cases in Europe. Walter de Gruyter.
Magnusson, P., Westjohn, S. A. and Zdravkovic, S., 2011. “What? I thought Samsung was
Japanese”: accurate or not, perceived country of origin matters. International Marketing
Review. 28(5). pp.454-472.
Shukla, P., 2010. Status consumption in cross-national context: Socio-psychological, brand and
situational antecedents. International Marketing Review. 27(1). pp.108-129.
Thomé, K. M., Vieira, L. M. and dos Santos, A. C., 2012. International marketing channels for
Brazilian beef: comparison between Russia and the United Kingdom. Journal of East-
West Business. 18(4). pp.301-320.
Turnbull, P. W. and Valla, J.P. Eds., 2013. Strategies for international industrial marketing.
Routledge.
Weerawardena, J. and Mavondo, F. T., 2011. Capabilities, innovation and competitive
advantage. Industrial Marketing Management. 40(8). pp.1220-1223.
Online
Porter’s Five Forces of Competitive Position Analysis. 2013. [Online]. Available
through.<https://www.cgma.org/resources/tools/essential-tools/porters-five-
forces.html>. [Accessed on 17th October 2017].
Scanning the Environment: PESTEL Analysis. 2016. [Online]. Available
through.<http://www.business-to-you.com/scanning-the-environment-pestel-analysis/>.
[Accessed on 17th October 2017].
SWOT ANALYSIS. 2017. [Online]. Available through.<https://www.projectsmart.co.uk/swot-
analysis.php>. [Accessed on 17th October 2017].
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Factors Description
Political Stability of politics in the country.
Economic Both political and economic factors are interrelated because if political
factors are not stable then it directly effect on the financial condition of
the people which leads to decrease the flow of money.
Social This is also effective because it include the life style of the people,
culture, region and ethical values which helps in increasing the overall
success of the company
Technological Advancement of technologies is positive affect the business because it
aid in capture the larger market share and attain higher satisfaction by the
customers.
Legal Legal changes also affect the overall performance of the company so that
it is main responsibility of the firm to updated all the legal factors on
timely basis. All the legal changes affect the overall business activities.
Environmental This factors are based on the global environment which affect the
business activities because of high pollution.
Appendix 2
Bargaining power of Buyer It define the moderate power of buyer in the market.
Bargaining power of
suppliers
This is very low because suppliers supply their products ate very
low cost.
Threat of new entrants This is very high because the fast food industry is continuously
growing in the market.
Rivalry This factors is very high because in market competitors are
everywhere.
Threats of substitute Substitute are very high in market place.
12

Appendix 3
Swot analysis
Strengths Weaknesses
 Strong brand image.
 Quality services and products.
 Effective workforce.
 Slow adoption of new technologies.
 Competitors.
 Lower supply chain.
Opportunities Threats
 Expand market in another country.
 Products diversifying.
 Health conscious customers.
 Unnecessary rules and regulations.
Appendix 4
The 12c Framework in relation to a prospective new market entry:
Country China India Japan Singapore
Currency Renminbi Rupee Japan currency is
Japanese Yen.
Dollar
Culture It is based on the
religious beliefs.
India mainly
related to the
Hindu and
Muslim religions.
Japan include
contemporary
modern culture.
Singapore also
related to the
mixture of all the
religions.
Control It defines the one
party rule which
is control by the
government.
It is a biggest
democracy nation
in various parties
are lives.
All the process
are controllable
by the political
parties.
Singapore has
their effective
political aspect
which help in
maintain the
better activity.
Concentration The main focus of
company on
urban and semi
In India the main
concentrate on
Delhi, Mumbai,
Main concentrate
on the urban area.
It is also based on
urban areas
because all the
13

urban areas. Bangalore and
Calcutta.
peoples are live
surroundings a
city.
Commitment In this all the
trade
commitments are
highly regulated.
Various degree of
corporate
regulations are
defined.
All the
commitments are
define with the
other countries.
International trade
define the
guidelines.
Communication In this the internet
is largely
developed which
aid in delivering
all the services.
Less knowledge
of media and
internet.
In this cyber-
attacks are
continuously
increased.
In this all the
online as well as
internet aspects
are used by the
company to
improve their
communication
with their
customers.
Choices Huge choices are
available in this
industry.
In this the limited
number of store
are mentioned so
that less number
of distribution are
available.
Various type of
brand and quality
products are
available in their
industry.
Huge choices are
available.
Channels They define
logistic getaways
which is specific
and unique so that
they deliver
quality products.
India don't have
effective channels
so that they fails
in attracting the
large number of
customers.
They use various
distributional
channels in which
they promote
quality products.
It also use
effective
promotional tools
in which they
promote their
services in front
of large number
14

of audience.
Contractual Various laws and
contacts are
regulate in the
china
The financial
position is also
regulated by the
government and
make laws for
unfair
competition.
Technological
products are
available in the
market which is
also regulate by
the laws for
maintain their
sustainability.
In Singapore
more project of
food industry is
unprocessed
which is
effectively
regulated by the
government.
Capacity to pay China have
effective capacity
to pay for the
food products.
In India middle
class peoples are
not aware about
the international
brands.
In japan educated
peoples are live
which are able to
pay money of the
food products.
All the people are
rich and capable
to pay for the
food products.
Caveats China is a high
number of
competitors.
Requirement of
better
infrastructure and
reduce the
presence of fake
products.
Effective
condition of
political factors
which improve
the income of the
people.
Culture is very
well of the people
which make a
better standard.
15