Marketing Report: Five Guys Expansion and Product Development

This report analyzes Five Guys' marketing strategy, focusing on product development to expand its market. The report begins with an introduction to Five Guys, highlighting its business model and market position. It then applies the Ansoff Matrix to justify the selection of a new product strategy. The report delves into the inner capabilities of Five Guys, market conditions, and growth opportunities. A detailed Segmentation, Targeting, and Positioning (STP) analysis is conducted, focusing on the UK market. The report then develops a comprehensive marketing mix, including product, price, promotion, and place strategies for the new product. The report suggests the introduction of a Roasted Veggie Burger, analyzing its potential for success. The conclusion summarizes the findings, emphasizing the strategic recommendations for Five Guys' expansion. The report is Harvard referenced and provides a detailed overview of the marketing plan.

RUNNING HEAD: MARKETING 0
MARKETING
FIVE GUYS

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Table of Contents
Introduction......................................................................................................................................2
Ansoff Matrix: Product development..............................................................................................2
Inner capabilities..........................................................................................................................3
Market condition..........................................................................................................................4
Opportunity for growth................................................................................................................4
Segmentation, Targeting and Positioning (STP).............................................................................4
Segmentation................................................................................................................................5
Targeting......................................................................................................................................5
Positioning...................................................................................................................................5
Marketing Mix.................................................................................................................................6
Product.........................................................................................................................................7
Price.............................................................................................................................................7
Promotion.....................................................................................................................................7
Place.............................................................................................................................................8
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

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Introduction
Five Guys Enterprises is an American high quality restaurant chain; the focus of the company is
on French fries, hot dogs as well as hamburgers. The company was founded in the year 1983 in
Arlington, Virginia, United States. The headquarters of the company is situated in Lorton,
Virginia, it is in the food industry. In 2016, the company expanded its operations in 1,500
locations. The products offered by the company are milkshakes, hot dogs, hamburgers, French
fries as well as the soft drinks. The revenue earned by the company in the year 2016 was $831.95
million and the number of employees was 15,000 (Anon., 2019). It is considered as a luxury
brand because it is a high quality restaurant, which provides fresh food, and high-quality
ingredients, which are used by the company without chemical mixture, which makes it more
expensive as compared to other food chain restaurant. In this report, new product strategy is
selected to expand the business and Ansoff Matrix is used to know the reason of selecting the
new product. Further, in this report segmenting, targeting as well as positioning of new product
is analyzed and marketing mix is examined to provide the best strategy to increase the sale of
new product.
Ansoff Matrix: Product development
It is technique of strategic planning that provides the structure to assist as well as support senior
manager, administrator and to the marketer to plan the strategies for future development (Mason
et al., 2018). In this strategy company can only leads success, when it efficiently conduct the
research about the environment, needs of the customers and the market and the inner capabilities
of the company. In this, the company either makes modification in the existing product or
develops the new product to satisfy the customers (Anker, 2016).

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Source: (Anker, 2016)
Five Guys can develop the new product in the existing market due to-
Inner capabilities
The inner capabilities of the company, includes, values because it focuses on taste, relaxation,
hygiene, quality and friendship while making decisions. The objective of the company is to serve
the superior product with high quality by using fresh lean beef and potatoes (Schlagwein & Hu,
2017). In the company executive and team members perform job, in each shift all work is done
like grill, bun as well as controlling of the quality. These capabilities help the company to
develop new product efficiently. The vision of the company is to sell superior quality burgers as
well as provide better services to the consumers, to fulfill this company focus on better quality
and cleanliness. The online marketing strategy used by Five Guys can also support the company
in promoting the new product, the company use Hootsuite’s geo targeting functionally, this

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strategy results in getting the more followers that is 1 million in Facebook, Twitter as well as in
Instagram.
Market condition
In the European countries, the government mainly targets the industry of Fast food due to
increase in obesity. The initiatives taken by the government like in UK, by adopting the model of
sodium reduction, the food industry reduce the sodium up to 36% in the year 2016 (Lenhart,
2019). The estimated population of the UK was 6.6 billion in the 2017, the expenditure of the
consumer in food and beverages were 91,617 million in the year 2017 (Ziauddeen et al., 2019).
In UK consumer needs simple menu from the restaurants and snacking is a common trend as
well as specifically popular and accepted among the young people in country of UK. The
consumer needs more choices in the sugar free drinks, Vegetarian burger within reasonable
prices. In UK, more consumers are looking for meat free products; however in UK, the meat-
consuming customers was reduced to 13% in the year 2018 (Josephine, 2018). The market needs
new product due to the similarity in current product and intense competition arises in the food
industry due to the competitors of Five Guys as McDonald, Burger King. The population of the
young people increases in the year 2018 that is 11.9%, that is company can target young
generation by making innovative product. (Przybylski & Weinstein, 2019).
Opportunity for growth
From the above evaluation of the marketing environment, Five Guys can choose the option of
product development because of high competition arise in the food industry, which deliver the
similar products like cheeseburger, hamburger. The new product provides opportunity for the
company to make innovation in the burger like it can introduce Roasted veggie burger, which is
made up of soy as well as wheat patty in the country of UK and it can target youngsters in the
UK. Moreover, it is also considered an opportunity to choose new product because of reduction
of consumption in the Non-Vegetarian products.
Segmentation, Targeting and Positioning (STP)
It refers to the approach in the marketing ‘STP’ model considered helpful when companies are
making strategy regarding the marketing communications. However, it supports the marketers to

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segments the priority areas, then creates, and conveys appropriate information to the target
audience (Hua, 2019).
Segmentation
It refers to the segmented areas in the market, for the new product, the company can segmented
according to the geographical area. The new product can be segmented in in the country of UK,
Germany and Canada because of more of the expenditure spend by the German consumers in
buying the food from restaurant, that is 161.4 billion in the year 2016 and in Canada it is $2,608
in 2018 (Mayne, 2018). Mainly the product can be segment in UK because more young people is
attracted towards the fast food and they spent £28.26 in the coffee shop as well as in restaurants
(Cairns & Johnston, 2018). Five guys can also make segmentation based on the demographic, for
the New product, Five Guys roasted veggie burger can be segmented to the 15-25 age group,
gender include both men and the women, According to the work segmentation is done in
students as well as employees. However based on the segmentation of behavioral, the consumers
of Five Guys are highly loyal because of more consumer are extremely satisfied with the quality
products, due to this Five Guys was on the 1st rank in UK in the year 2017. This is therefore
considered an advantage of the company to develop new product (Williams et al., 2018).
Targeting
When the segmentation is done, targeting involves in deciding and selecting the most profitable
as well as the cost-effective division, it helps the company to take the competitive advantage
(Sharp, 2017). For developing the new product, that is Five Guys roasted Veggie burger, the
company can target mainly to the young generation, because young generation spent more
expenditure in the fast food. However, youngsters get more attracted with the offers and
discounts, Five Guys while targeting the young generation can provide the combo offer within
the reasonable rates. The company can also target the people of business class for the reason that
they like to spent time in the restaurants, in the relax atmosphere.
Positioning
It is used to place the product in the customers mind, for this the purpose of the organization to
make the clear, distinctive as well as better position in the eyes of the consumers as compared to
that of the competitors (Hooley et al., 2017). For the positioning company can use the social

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media and make separate page of the new product and provide offer like 40% weekly offer,
because 90% of the population use internet in UK in the year 2018, this also helps the company
to target other groups. Five Guys can also allow the customers to buy the Five Guys roasted
veggie burger with the code. For the positioning of the new product company can also use the
positioning map can keep the quality of the product high and prices lower as compared to that of
the competitors, which includes burger king, Shake Shack.
Positioning Map
High Quality
Five Guys roasted veggie burger McVeggie burger
BK Veggie burger
Low Quality
Marketing Mix
It refers to the technique, which is made up of four distinctive, interrelated as well as
interdependent dependent variables. The variables include product, price, promotion and place.
These four components support to develop a comprehensive and efficient strategy; this is done to
take the product into marketplace. Each part is considered significant and focus should be given
on its needs.
High priceLow
Price

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Product
It is an item, which satisfies the need or requirements; it includes any physical item as well as
service. The product is produced at a cost and after producing, product is offered to the target
customers at right price within right time. However, every product undergoes with the product
lifecycle stages (Paley, 2017). In this Five Guys can introduced new product to expand in the
market because of the highly skilled employees in company as well as the vision of the company
is to make the high quality products. Five Guys can develop new product, which can be Five
Guys roasted Vegetarian burger, which is made up of new soy as well as wheat patty.
Price
It refers to the sum of money, which consumers give in exchange for product as well as services.
The company put the correct price of the product, so that it satisfy the needs of customers,
strategy related to the rice reveal the position of the product in the marketplace and it must cover
the cost as well as profit (Hanna & Dodge, 2017). For the promotion Five Guys can use strategy
of Bundle pricing in this company can offer new product, which is Five Guys roasted Veggie
burger with cold drink, and French Fries in combo with discount, this will attract many
customers. The strategy of psychological pricing also will be benefited for the company.
Through this strategy Five Guys will not keep the price of new product in round off like the
company can keep this price in UK that is £ 3.99, this price strategy can increase the sale of the
company because it is also lower than that of the competitors like burger king.
Promotion
It is the strategy, which company use to communicate with the customer and inform about the
product and services that company is offering to the target customers (Palmatier & Sridhar,
2017). In this company, give all the information about product to persuade them for purchasing
the products. For the new product, Five Guys can use the sales promotion strategy and offer
discount voucher that is company can give 30% weekly discount as well as freebies, because for
the new product it is important for the company to use sales promotion strategy, so that more
customers gets attracted. The company can also use the strategy of public relations and direct
marketing by providing the program Green environment or can also organize events.

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Place
This strategy is considered the place or the location, in this company an offer the products to the
consumer (Moretti, 2018). Five Guys can offer the new product in the restaurant and company
can also use the Five Guys mobile application, through which customers can order and get the
information about the new product that is prices, new offers, through this Five Guys can provide
deal for the app user customers. This strategy company can target more youngsters, because now
through this customer will not have to visit restaurants.
Conclusion
From the above, it concludes that, Five Guys is an American restaurant, which provides the high
quality products. For the justification, Ansoff matrix is used and shows that company can
develop new product because of valuable inner capabilities and needs of the customers in UK.
From above it also conclude that company can offer Five Guys roasted Veggie burger to the
customer, target youngsters and mainly promote the new product through social media because
90% of internet users. The company can use the strategy of bundle pricing, sales promotion and
offer the product through the mobile application.

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References
Anker, T.B., 2016. Truth in Marketing: A theory of claim-evidence relations. Abingdon:
Routledge.
Anon., 2019. Five Guys. [Online] Available at: http://www.fiveguys.com/ [Accessed 5 Augustus
2019].
Cairns, K. & Johnston, J., 2018. On (not) knowing where your food comes from: meat,
mothering and ethical eating. Agriculture and human values, 35(3).
Hanna, N. & Dodge, H.R., 2017. Pricing: Policies and procedures. Equitable Building New
York City: Macmillan International Higher Education.
Hooley, G., Piercy, N.F., Rudd, J. & Nicoulaud, B., 2017. Marketing Strategy and Competitive
Positioning. London: Pearson.
Hua, H., 2019. Mobile Marketing Management: Case Studies from Successful Practices. Boca
Raton: CRC Press.
Josephine, M., 2018. Sustainable consumption in everyday life: a qualitative study of UK
consumer experiences of meat reduction. Sustainability, 10(7).
Lenhart, O., 2019. The effects of health shocks on labor market outcomes: evidence from UK
panel data. The European Journal of Health Economics , 20(1).
Mason, K., Kjellberg, H. & Hagberg, J., 2018. Marketing Performativity: Theories, practices
and devices. Abingdon: Routledge.
Mayne, J., 2018. Linking Evaluation to Expenditure Reviews: Not Realistic Nor a Good Idea.
Canadian Journal of Program Evaluation, 32(3).
Moretti, L., 2018. Distribution Strategy: The BESTX® Method for Sustainably Managing
Networks and Channels. Germany: Springer.
Paley, N., 2017. How to Develop a Strategic Marketing Plan: A Step-By-Step Guide. Abingdon:
Routledge.

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Palmatier, R.W. & Sridhar, S., 2017. Marketing Strategy: Based on First Principles and Data
Analytics. Equitable Building New York City: Macmillan International Higher Education.
Przybylski, A.K. & Weinstein, N., 2019. Digital Screen Time Limits and Young Children's
Psychological Well‐Being: Evidence From a Population‐Based Study. Child development, 90(1).
Schlagwein, D. & Hu, M., 2017. How and why organisations use social media: five use types
and their relation to absorptive capacity. Journal of Information Technology , 32(2).
Sharp, B., 2017. Marketing: Theory, Evidence, Practice. Oxford: Oxford University Press.
Williams, L.J., Lillge, A. & Gentry, R.J., 2018. To Franchise or Not to Franchise? Is Culver’s
ButterBurger a “Better Burger”? SAGE Publications.
Ziauddeen, N. et al., 2019. Is maternal weight gain between pregnancies associated with risk of
large-for-gestational age birth? Analysis of a UK population-based cohort. BMJ open, 9(7).