Five Guys is one of the largest fast food industries in the world that concentrates on French fries, soft foods, and breakfast. The company operates on the principles of modern fast food restaurants that are located in UK and other parts of Europe. In a market that is growing rapidly coupled with various challenges, it is highly advisable for an organization to develop proactive strategies in penetrating new markets especially, in new countries. Effective marketing strategies is achieved through adoption of a well laid down marketing plan that covers all the aspect of marketing relating to fast food services. The report constitutes a marketing plan for the FIVE GUYS that deals with fast food industries. The report contains application of the marketing mix including the 7 Ps, budget timelines, and control methods used to achieve the marketing strategies.
Keywords: 7ps, soft foods, French fries, budget timelines, market, marketing plan, FIVE GUYS, control
FIVE GUYS company exists in a highly competitive environment. Hence, for it to succeed, both the internal and external environment must be considered and addressed conclusively. The internal environment majorly deals with the employees and managerial factors. They are issues that the management can easily control. However, the external environment cannot be dictated by the management, but the management may only influence them. Company employees form the basis of the internal environment. Company employees’ are guided by a well elaborated culture of customer service and provision of quality products. The culture has promoted the growth of FIVE GUYS over the past years (McDonald, & Wilson, 2011).
FIVE GUYS main strength in the context of increasing competition and penetration in the market is geared towards offering healthy and quality meals to its customers. The foods offered are well checked by the clinical officers, and that makes the company a better choice to the customers. The foods contain fewer fats to reduce the rate of obesity that is associated with the fast food firms. The regular customers for the past few months have reported a loss in body weight, and that can be attributed to the healthy services at FIVE GUY restaurants. To comply with growing trend of internet and technology usage, FIVE GUY Company has introduced online ordering. Customers can place their order on the company’s website and have it delivered immediately as per the customer’s request. The company is highly aware of the corporate social responsibility. Therefore, FIVE GUYS takes an active role in the community development and activities. There are environmental conservation policies that are geared towards making it a healthier place to be. Currently, the company is performing well financially and remains one of the best food outlets in the world (Smith & Taylor, 2014).
The external environment that the company operates in is very competitive due to many firms offering similar services. FIVE GUY has to compete with other companies such as McDonalds, Quiznos, Greggs, Pizza Hut, and many more. Therefore, it calls for innovativeness in the industry and FIVE GUY conducts vigorous and continuous marketing and marketing research to retain and gain market share in the industry. The company complies with the legal system by timely submission of taxes to the authority, and operating within the state regulations ( Smith & Taylor, 2014). However, the company experienced declined in revenue returns in the 1990s due to economic fluctuations that threatened the purchasing power of buyers. These factors were attributed to global economic crisis that not only affected FIVE GUYS, but it was experienced in the entire industry. Political factors also threaten the growth of the company franchise especially during political elections and unrest in United Arabs Emirates in 1990’s.
The main focus of FIVE GUYS was to develop and enhance market development so as to stay ahead of the competitors. They can do this through attracting and retaining existing customers (Smith & Taylor, 2014). The company seeks to add over 2000 stores in different parts of the world especially, in Dubai. The sales should be improved by 20% in the next financial period, and this is achieved when the there is an increased customer’s awareness by 25% in the next 6 months. Online ordering should be improved through efficacy so that it rises by 45% in the next financial year.
It is imperative for FIVE GUYS to reconsider its existing markets and market potential before attracting and reaching out to new customers. A survey of the market potentials and weakness should be analyzed before embarking on a strategy to ascertain market potential and its competitiveness (McCabe, 2010). The seven strategies to be used are; pricing, promotion, product, place, people, process, and physical evidence. The company intends to customize products given to customers to ease delivery of such products. The company aims to improve its sales by 20% at the end of the year, and this will be achieved by offering standard prices for most of the sandwiches and reducing the prices of the food by 1.5% compared to the competitors’ prices. Massive advertising should be done to popularize the company’s products. The company aims at using the internet as a tool for advertising to meet the targeted customers. The above is informed by the fact that internet users have greatly increased over the past years.
The product could be sourced online and then be delivered to the customers’ place at a fee depending on the customers’ premises. Some customers can also get the products at the company outlets that are situated all over Dubai. The company staffs deliver the products. Thus, the staff are well trained and do handle their duties in a professional manner. The company intends to build a well design and decorated outlet that the customers can easily be identified with the company’s products. This will be achieved by erecting a modern resting places that are unique to facilitate customers comfort whenever they visit the company’s outlets (Masterson & Pickton, 2010).
The proposed marketing plan should be carried within the next one year. The company should rent more spacious housing facilities in Dubai to cater for the high number of customers. The company targets 1500 customers per day. That will require an average of 200 employees to handle them. The facilities should be fully furnished before it starts operating requiring an average of $4000 while obtaining the goodwill will cost $75,000. Therefore, the company should have an average of $1,200,000 to cover fully for the new market expenses
To ensure the success of the program, FIVE GUYS should embark on a massive market research to determine market potential of food industries in Dubai. The company has out-sourced professional from various fields who are well conversant with the Dubai market to help in giving professional expertise in matters relating to Dubai laws, customs, and cultures so that the business would be generally accepted in the market (McDonald & Wilson, 2011). The company must invest heavily on staff training so that staff members are up to their tasks. There should also be enough financial outlay to run the whole operation. Hence making sure that every plan runs smoothly.
- McDonald, M., & Wilson, H. (2011). Marketing Plans: How to Prepare Them, How to Use Them. London: John Wiley & Sons
- Masterson, R., & Pickton, D. (2010) Marketing: An introduction. London: SAGE
- McCabe, S. (2010). Marketing communications in tourism and hospitality. New York, NY: Routledge
- Smith, R. P., & Taylor, J. (2014). Marketing communications: An integrated approach. New York, NY: Kogan Page Publishers