American Gourmet Burger Franchise - Research Proposal Example

ntrерrеnеurshiр, Сrеаtivity and Innоvаtiоn Proposal Name Institution of Affiliation “Establish an American Gourmet Burger Franchise chain located Australia wide to compete with "Grilled" burger franchise chain”. 1.0. Problem The market supplies of the real burgers is influenced by multiple factors including the product quality and health concerns elements that are often raised in most cases to trim the prevalence of lifestyle diseases. Some of the components of the products produced in these chains include chips, burgers, salads as well as sides which are believed to be highly nutritious and characterized with lots of flavour. New Burger Trim Shakers will be established with critical roots in American burger brand displaying characteristic premium burgers as well as shakes. Some of the common distinctions include the premium burgers, superb price levels and excellent profits arising from the Franchise. However, due to the product market competition in the American-based locality, the business enterprise is tasked with maintaining a winning market share. Consequently, it will seek to diversify and further reach out new prospective markets and particularly establishing its performance extension in Australia. 1.1. Business Name The name of this Business unit will be New Burger Trim Shakers. It will be located in Australia to face out some of the compelling burger chains particularly the Grilled Burger. 1.2. Business Solution In order to counter the impacts of larger chains in US, New Burger Trim Shakers Franchise which has created an intensified competition, will establish a burger chain in Australia where the market is already established, with relatively large market size having been set out by its predecessors like the ‘Grilled’ Burger Franchise Chain. The establishment in Australia is a bold move towards enhancing the business performance at relatively less intensive competitive environment. This establishment will form an ideal position upon which the business can reap a significant competitive advantage. In establishing the burger chain in Australia, the network understands the lucrative environment where The Australians have already developed tastes for the American Burger Chain with the Macdonald having already established its network across in the Australian Destination. The burger market target is mainly for the male population aged between 18 and 34 years who are considered as ‘young and hungry’ for the product. 1.3. Business service or product The main product for the New Burger Trim Shakers Franchise Chain will be burgers, chips and salads which will flock the Australian Restaurant or hotel industry that remains young by virtue of exploitation. The move to make a sound venture through the acquisition of 50 unique stores for the supply will form the initial capacitating of the business prior to its extension towards a larger scope in Australia. These products will be stocked and distributed from each of the stores across the entire Australian Chain. 1.4. Team Capabilities The team of stakeholders that will be responsible for the establishment of the Franchise Chain has the requisite production and marketing potential. In essence, the team has had been engaged in production and marketing of the products in the American market segments as well as exploring potential markets with special insights anchored on popular researches. For instance, attractiveness of the New Zealand destination has been one of the sound elements that have been primarily dictated by the essence of economic favourability. In particular, both the Australia and New Zealand have similar positioning by virtue of their economic offering with particularly strong economic variables. However, unlike New Zealand where other players such as the Carl Jr Franchise Burger and other large players have already established, Australia forms equally prospective destination for the Burger with premium products for market performances. In essence, the team has a wide range of experience in marketing and promotion of the Burger products across multiple cultural contexts an aspect that will bolster the performance of New Burger Trim Shakers in this supremely new market destination. In this regard, the market will form a unique placement upon which surpluses will be produced to fill the current market deficit by virtue of quality and quantity. The team is also endowed with two individuals with considerable economic backing Australia and experiences in industry an aspect that increases the prospects of good economic growth across the entire stretch of the Australian Burger market. Also, there may additionally be conceivable legitimate limitations that may abridge planned foundation, for example, the instance of Burger King that fizzled through the lawful procedure to build up its image in Australia. 1.5. Target customers As stated earlier, this Franchise chain target a group of young people particularly the male population aged between 18 and 35 years. According to research in the market segment of Australia, this group of players has a strong taste for the Burger which makes them succinctly obsessed with the product. In Australia, this group will form the vast majority of the target consumers with the capacity to generate extensive performance capabilities. The country’s target population has already developed strong liking for the American Burger Franchise Chain, an aspect that is anticipated to spur high performance capacity compelled by availability and potential of the chain to reach retail outlets too. Basically, there are potential impediments to entry. For instance, the high capital requirement to establish stores and subsequently generate products that would effectively compete with other brands like McDonald’s, Sub-way, Domino and the ‘Grilled" Burger Franchise Chain will form an essential component of the retail chain. Besides, the Franchise chain will also need to establish a marketing projection to counter its predecessor’s prevalence by virtue of market share. This is also likely to pose a significant entry threat. 1.6. Competitors Some of the main competitors includes the, ‘Grilled’ Franchise Chain, McDonald’s and Domino among others. Majority of the International Burger Franchise Chains networks in Australia falls under private ownership. This fraction of owners is formidable chains that exercise the lucrative huge market of burgers chains but fails to exploit the market fully. For instance, the McDonald’s, which is a huge Burger Franchise chain had been reported to have taken a total of 40 years to have established 840 outlets across the entire stretch of Australian market. This rate has been described as considerably retrogressive. The establishment of Steak n Shake will be based on fast growth anchored on extensive marketing campaigns that would see the whole network rejuvenated. 1.7. Market Research and Piloting Essentially, the Australia market for the Burger is robust with high growth potential that has seen potential players making onslaught mechanistic growth amidst prevailing competition. Many international operators have been perceived to have a significantly large number of stores and retail networks operating under their particular licensure or as distribution centres. For instance, the Hungry Jack's Pty owns and also licenses subsidiary operators which carry out their activities across the entire stretch of Australia. The company is also considered as the master Franchise of the whole continent responsible for several aspects such as managing its own stores, licensing of new operators in the Australia and undertaking critical oversight functions on the franchised locations across the entire stretch of Australia. In order to bolster the functional capacity of the business, the burger Franchise will make considerable inputs such as hiring of professionals in the business management segment that will be responsible for steering the progress of the company towards a successful end. In particular, critical research into the existing population with a high value attachment to burger consumption will form the primary progressive undertaking that will see the company make progressive development in the supply of Burgers across the new market. This will also reduce the prospects of resistance that could be generated from the market segment constriction and the stepped-up exploitation of the market by multiple international players. Nevertheless, the New Burger Trim Shakers Burger Franchise chain has an advantage to manipulate the market performance due to the already established good taste for the American Burger. To evaluate the market reception of the New Burger Trim Shakers’ product in Australia, the team will undertake exclusive surveys through disguised exploration of the brand resilience in the country while at the same time making sound adjustment recommendation into the their new product. 1.8. Capital flow required and Sources The establishment of Franchise chains will be based mainly on the capacity of New Burger Trim Shakers. Essentially, the Franchise chain will commence a network of 50 units of stores as pilot entry units that will define the progressive capacity of the business to establish in the environment. This will also mean factoring in the production costs of Burgers and other products such as Salads although burgers will make the biggest market product for the Franchise chain. Likewise, the following cost stimulation will apply: Establishment of Physical Store Facilities …………………... $40 million Stock & Production …………………………………………....$19 million Local marketing ………………………………………………..$1.2 million Diversions of Funds……………………………………………..$6 million Burger Support & Filtration Units ………………………………$4 million 1.9. Production and Financial timeline The establishment of this Franchise chain will involve three main phases spread out in 3 years as shown below. Time (Months) Activity Cost Simulation (Appr.) ($millions) 1-6 Establishment of physical facility (enterprise $ product) 59 7-24 Local marketing and further Situation analysis and research 5 25-36 Establishment of Burger support Units 6.2 Reference Selladurai, R. (January 01, 2011). Network Marketing and Supply Chain Management for Effective Operations Management. Read More