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Case study: Burger Vegan (BV)
BV is a public limited company that owns over 100 restaurants in the US, selling vegan burgers and wraps, plus 50 franchised BV restaurants in the US. The directors of BV want to enter the international market and have chosen to open the first restaurants in country X. Rohit (founder and now a 5% shareholder) has provided the board with strategic management information.
Appendix 3: Comparison of the US and country X in 2023
- Population: US 336m; Country X 225m
- Population who regularly eat vegan food: US 12%; Country X 8%
- Population by age – Under 18: US 25%, Country X 30%; 18–50: US 40%, Country X 50%; Over 50: US 35%, Country X 20%
- Brand awareness of BV: US 60%; Country X 5%
- Average income: US $32 000; Country X $24 000
- Forecast economic growth in 2024: US 1.5%; Country X 5%
Appendix 4: Strategic management information in 2023
Core competencies of BV: clear corporate identity as an ethical business; consistent high-quality across the product portfolio; excellent customer service.
Force field analysis for BV entering the restaurant market in country X – Driving forces: vegan food market is expected to double in the next three years; government policy is expected to support vegan food; there is little competition in the vegan food market. Restraining forces: limited awareness of BV brand; customers may not like BV's product range.
Possible strategies include: develop a pan-global marketing strategy based on the US market; develop a marketing strategy to maintain local differences in country X.
Advise the Board of Directors on a marketing strategy to use when BV enters the market in country X.
9609/42/M/J/23Cambridge International AS & A Level Business 9609 · May/June 2023 · Paper 4 variant 2 · Question 2
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Suggested time: 30 min