Case 1

HUMMUS BAR: DIPPING INTO INTERNATIONAL MARKETS

Submitted by:

Hari Padmakumar

Jijo Francis

Navtej Singh Sran

INTRODUCTION

Learning objectives:

To evaluate potential international markets using various business models.

To develop decision-making skills.

To use quantitative data to make decisions.

To consider and evaluate several modes of market entry.

HUMMUS BAR

• Hummus bar is a successful, customer friendly bar located in Budapest, Hungary.

• It has got 7 restaurants in that region.

• It is known for its cheap price and healthy fast food.

• They offer different kinds of salads, desserts, soups, meat and vegan dishes.

• It has been recognized and awarded for being the best exotic cheap eatery by the Time out magazine

• It has got take out and delivery services.

• It has got many loyal customers.

• They conducts several events in order to entertain the customers.

WHAT IS HUMMUS…??!!!!

• Hummus is Middle Eastern and Arabic food dip/spread made

from cooked, mashed chickpeas with tahini, olive oil, lemon

juice, salt and garlic.

• Both vegan and non- vegan customers consume hummus.

• Hummus is a really healthy dish due to its ingredients.

• Hummus can be used as a side dish for almost most of the

food items.

MARKET RESEARCH

Data Collection Method:

Face-to-Face Interviews:

This quantitative data collection method is used for gathering

information. In this method the customers are called upon to

conduct direct interviews.

Went to stores and restaurants and conducted face-to-face interviews with 50 customers.

65% female and 25% male participants.

Customers of age between 18 and 60yrs.

92% liked humus ;

among which 83% bought hummus products and dishes

on a regular basis.

Customers prefer the hummus bar because they get tasty, healthy and variety dishes for lower prices.

MARKET ANALYSIS

PEST Analysis:

Political/Regulatory factors:

Affect price and sales of the food items.

Price varies with different region (Taxes, Trade Restrictions

and other laws).

Economic factors:

Hummus bar sells products at cheaper price, because they

are made locally.

For international market, product price will increase due to

economic growth, exchange rates & inflation.

Socio-cultural factors:

Customers choose their food by price, promotions and

preferences.

Socio-cultural factors customer needs, size and nature of

market.

Hummus products will not be affected by this factors because of

the quality and price.

Technological factors:

This factors deals with the manufacturing, packaging and

distribution of products.

Hummus bar does not rely much on this factors.

SWOT ANALYSIS

Strength

• High quality food

• Variety food items

• Low cost

• Loyal customers

Weakness

• Low brand awareness

• High competition

• Less investments

Opportunities

• Rapid growth in

hummus market

• Fresh & healthy fast

food

• Increase brand

awareness

Threats

• Threat of over -

competition while

market expansion

• Possibility of failure in attracting trust and interest

Case

1

MARKETING PLAN:

Target market :

Age between 18 and 40yrs

Healthy and quick food

Vegans

Women customers

Marketing Mix:

Product: Cheap due to local preparation of hummus dishes. Hummus bar has got variety of dishes. The place attracts a lot of people due to its cost and freshness.

Price: Provides fresh and tasty fast food for a cheaper price. More loyal customers. It is a great threat for its competitors.

Place: Need to increase the number of wholesale grocery store clients, thus improving the business and brand awareness.

Promotion: Promotion is necessary for expanding the business. Proper promotions can lead to increase in brand awareness of the restaurant.

SUMMARY

It’s wise for hummus bar to stick with the domestic

expansion.

More loyal local customers.

Hummus market will keep on growing.

More business can be achieved by selling the products to the

local wholesales stores. This also increases the brand

awareness.

The business will promptly spread to nearby

regions.