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Hummus Bar: Dipping into International Markets
Submitted By: Group #8
Hari Padmakumar
Jijo Francis
Navtej Singh Sran
Submitted on 29th October 2013
INDEX:
I. Introduction…………………………………………………………...…. 2
II. Market Research……………………………………………………….. 3
III. Market Analysis……………………….………………………………… 6
IV. Marketing Plan………………………………………………………….. 10
V. Conclusion………………………………………………………………… 13
VI. Bibliography………………………………………………………………. 15
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I. Introduction
This case study is based on a successful Hummus bar located in Hungary, which is
planning to enter the international market. The founder of the restaurant is thus
seeking investors in order to lower the risks, select the right marketing strategies
and to enhance the brand. The case study will include all the different methods
used to determine the right market, determining the right market entry, brand
management and developing decision making skills.
About the Company:
Hummus bar is a really successful Middle Eastern
Restaurant in Hungary which was setup 7 years
ago by Gotlibovitch. It has already got seven
restaurants and it’s turning out into a successful
chain in Hungary. As the name suggests, this
place is completely dedicated to Hummus which
can be enjoyed with several types of dishes. They offer different kinds of salads,
soups and vegan and meat dishes. The restaurant focuses on the creating simple
and good quality food. It has been recognized and awarded for being the best
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exotic cheap eatery by the Time out magazine. Hummus bar have also got take
out and delivery service. The restaurant has got huge reputation among the locals
and is really active on social media websites in order to promote their services.
The restaurant is a huge success due to its prompt and friendly service and they
always provide first class, cheap and fresh food to the customers. The restaurant
is really clean and the price for a meal is just 8-10 euros for a customer. They have
loyal customers due to all this factors. (hummusbar)
II. Market Research
In order to find the people’s growing interest in
hummus, we went to several restaurants and grocery
stores (Ghazale Restaurant, Jerusalem Restaurant, Sababa, Fiesta farms, Rowe
farms and Kalendar) in order to obtain the buying habits and other data’s of the
customers. We had face-to-face interview with 50 customers, from which about
65% percent were females and the rest (35%) were male customers. Our
participants were mostly people of age between 18 and 45. About 92 percent of
the participants liked hummus and from which about 83% bought packed
hummus and hummus related products. From our research we found out that
there is a market for Hummus and hummus related dishes. Most of the customers
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like
hummus because it’s tasty, healthy and available in different flavors.
III. Market Analysis
4
yes no0
10
20
30
40
50
60
70
80
90 83%
17%
customers who regularly buy hummus products
customers
Like Hummus
92%
Doesn't like Hummus8%
Customers
Like HummusDoesn't like Hummus
male, 35
female; 65
Gender
malefemale
Hummus was an Arabian dish introduced among the Jewish people in the early
1950s. The major ingredients of hummus are chickpeas, sesame, lemon and garlic.
Majority of the best hummus restaurants are owned by the Arabs. Even though
the market for hummus and hummus related food items are in its beginning
stage, it is growing rapidly by each day in North America and in many other
countries. Nowadays there is a tremendous increase in the number of hummus
dedicated restaurants and hummus products. The competition is getting bigger as
more people have started using it. In America the hummus accounts for average
weekly sales of $600 for each store and the market for dips are increasing at 14%.
(For the love of Hummus)More companies have started creating their own
hummus and selling it, both locally and internationally. Some of the examples of
packaged hummus that are available in stores are Fontaine Santé Hummus,
Summer Fresh Hummus, Sabra Classic Hummus, Sunflower Kitchen Classic
Hummus and PC Hummus and Vegetable dips. Most of the people are nowadays
turning into vegans or part time vegans due to their concern for health. This is
proven by the results of latest surveys done by Google and other marketing
research teams. (Sareen) , (Go part-time vegan and get healthy)
PEST Analysis:
The different factors that affect the industry include competitive, regulatory,
economic, socio-cultural, technological, natural environment and demographics
factors. The marketing strategy of the company changes along with these
environmental factors.
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Political/Regulatory factors: The political/regulatory factors can affect the price
and the sales of the food products. The price of product varies in different regions
depending upon taxes, trade restrictions and other laws.
Economic factors: Hummus bar is a local establishment hence its competition will
increase when it enters the international market. Hummus bar is famous for its
cheap price which is due to local production. The price of food products will
increase when it enters the international market due to changes in economic
growth, exchange rates, price of ingredients, transportation, inflation, etc.
Socio-cultural factors: Consumers choose their food by several factors like
income, product price, promotions and preferences. A product chosen also
depends up on age, race, education and ethnicity. The social and cultural factors
affect the consumers need, as well as the size and nature of the market. The
socio-cultural factor doesn’t affect the usage of hummus food products because
of its quality. Hummus is already popular among people from all over the world
because it is healthy and cheap. Both vegans and non-vegans love hummus
products.
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Technological factors: Technological factors can affect the manufacturing,
packaging and distribution of products. Company relies less on the technology for
the sales of its product. The use of technology includes designing of dip covers
and boxes, improving the scale of production, transportation of ingredients and
products.
SWOT Analysis:
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Strengths
High Quality Food
Variety Food Items
Low cost because it is made locally .
Loyal Customers
Weakness
Low brand awareness
High competition
Less Investments
Opportunities
rapid growth in hummus market
fresh & healthy fast food
Increase in brand awareness
Threats
Threat of over competition while market expansion
Possibility of failure in attracting trust & interest in new regions.
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IV. Marketing Plan
Target Marketing & Positioning:
The target market of Hummus bar is the customers of age between 18 and 40 and
who are looking for healthy quick food and customers who are vegan. Due to the
busy lifestyle people are not getting proper time for preparation of good food.
Hummus food items are loved by both vegan and non-vegan customers. The low
price and high quality of freshness make the hummus bar a strong competitor
among its rivals. Media advertising can influence the target market. Hummus bar
can attract more customers by behavioral factors and psycho-graphic factors.
Sometimes product’s packaging also attracts customers, especially female
customers. Hummus bar should use the target market that was obtained through
the data collection and market analysis for presenting it to the investors and
other retailers. With respect to target market, we can see that Hummus bar will
be more successful if it operates in the local/national market. The business will
then promptly spread to nearby regions. For entering the international market,
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Gotlibovitch should prioritize the list of foreign markets according to the market
size, market growth rate, trade laws, cost of product, availability of channels, cost
of market entry and competitive density. (Prioritizing Target Markets) The best
mode of entry to international market for hummus bar would be via franchising;
as it has low fee, low political/trade risks, allows simultaneous growth in different
regions of the globe and more monetary investment and managerial skills to the
firm’s operation. The entry mode will vary with the market as it depends on the
market size, demand, costs and other factors. In Budapest the meat dishes were
both more popular and more profitable than the vegetarian dishes. For the
international market that would be different and it wise to introduce both vegan
and non-vegetarian dishes. By doing so hummus bar will be able to target both
vegan and non-vegan customers.
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Marketing Mix:
Product: Hummus bar prepares its food
products locally. Its hummus is prepared from
the ingredients obtained locally. It has got
variety of dishes with variety of flavors, all in
favor of the hummus eaters. Moreover the food prepared is really tasty and fresh.
This attracts a lot of people, especially tourists.
Price: Hummus Bar provides fresh and tasty fast food for a cheap price. Because
of this reason it has got lots of loyal customers. Then can easily sell the food items
for a cheaper price because they prepare it locally. Thus hummus bar is a great
threat for its competitors.
Place: The hummus bar is already successful in Budapest, now it needs to
distribute its food items to new retailers. They need to increase the number of
wholesale grocery store clients; by doing so they can successfully move their
business to the local regions.
Promotion: Promotion is necessary for expanding the business. The main aim is to
create good brand name throughout the whole region. Proper online and offline
promotions can lead to increase in brand awareness of the restaurant.
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V. Conclusion:
From this case study we have reached a conclusion regarding the market
expansion and market entry modes for hummus bar. Based on the data and
market analysis we found that, it’s wise for hummus bar to stick with the
domestic expansion. Hummus Bar provides fresh and tasty fast food for a cheap
price. Because of this reason it has got lots of loyal customers. Then can easily sell
the food items for a cheaper price because they prepare it locally. Thus hummus
bar is a great threat for its competitors. Hummus bar should sell its products to
the local wholesale stores in order to increase the brand
awareness. It is clear that the Hummus bar will be more
successful, if it operates in the domestic market and will
then promptly spread to nearby regions. In case of
international market expansion, Gotlibovitch should
prioritize the list of foreign markets according to the market size, market growth
rate, trade laws, cost of product, cost of market entry and competitive density.
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The best mode of entry to international market for hummus bar would be via
franchising and the entry mode will change with the type of market. For
international market it is wise for hummus bar to target both vegan and non
vegan customers with a variety of foods.
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VI. References
For the love of Hummus. (n.d.). Retrieved from http://www.paticheri.com/2013/08/24/for-the-
love-of-hummus/#.Um85llPjV_U
Go part-time vegan and get healthy. (n.d.). Retrieved from
http://www.news.com.au/lifestyle/health/go-part-time-vegan-and-get-healthy/story-fneuzkvr-
1226683165672
hummusbar. (n.d.). Retrieved from http://www.hummusbar.hu/
Prioritizing Target Markets. (n.d.). Retrieved from
http://kamraan.com/marketing-srategies/prioritizing-target-markets/
Sareen, A. (n.d.). Interest In Vegan Diets On The Rise: Google Trends Notes Public's Increased
Curiosity In Veganism . Retrieved from http://www.huffingtonpost.com/2013/04/02/interest-in-
vegan-diets-on-the-rise_n_3003221.html
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