International Marketing Group Project January 2013

Diploma in International Business

International Marketing Group Project

October 2012 Semester
Proposal Submitted On: 16 January 2013

VeganBurg
Prepared for Mrs Patricia Zoey Tan

International Marketing Group Project January 2013

Table of Contents
1. Executive Summary.........................................................................1
2. Company Information....................................................................... 2
2.1
2.2

About VeganBurg................................................................................................... 2
VeganBurgs Products.............................................................................................. 2

3. Market Research............................................................................3
3.1 America............................................................................................................... 3
3.1.1 Market Size...................................................................................................... 3
3.1.2 Market Growth................................................................................................. 3
3.1.3 Socio-Cultural.................................................................................................. 3
3.1.4 Reasons for Selection......................................................................................... 4
3.2 Australia.............................................................................................................. 4
2.3.1 Market Size...................................................................................................... 4
3.2.2 Market Growth................................................................................................. 5
3.2.3 Socio-Cultural.................................................................................................. 5
3.2.4 Reasons for Selection......................................................................................... 5

4. Competitive Analysis........................................................................6
4.1
4.2
4.3

Global Competition................................................................................................. 6
America............................................................................................................... 6
Australia............................................................................................................... 6

5. Target Segments.............................................................................7
5.1 San Francisco, California, United States of America.........................................................7
5.1.1 Vegetarian/Vegan Diet........................................................................................ 7
5.1.2 Health-Conscious Customers................................................................................ 7
5.1.3 Students.......................................................................................................... 8
5.2 Melbourne, Victoria, Austrlia..................................................................................... 8
5.2.1 Vegetarian/Vegan Diet........................................................................................ 8
5.1.2 Health-Conscious Customers................................................................................ 9
5.1.3 Students.......................................................................................................... 9

6. Target Marketing..........................................................................10
6.1
6.2
6.3
6.4
6.5
6.6

Product Variability................................................................................................. 10
Product Life-Cycle............................................................................................... 10
Market Variability................................................................................................. 10
Competitors Marketing Strategies............................................................................ 11
Companys Resources............................................................................................ 11
Timing of Entry................................................................................................... 11

7. Market Positioning........................................................................12
7.1
7.2

Competitive Advantage: Image Differentiation.............................................................12

Unique Selling Proposition: Communicable.................................................................12

8. Marketing Mix............................................................................. 12
8.1 Global Identity..................................................................................................... 12
8.1.1 Product......................................................................................................... 12
8.1.2 Place (Distribution)......................................................................................... 13
8.1.3 Promotion..................................................................................................... 13
8.2 America............................................................................................................. 14
8.2.1 Pricing......................................................................................................... 14
8.2.2 Product......................................................................................................... 15
8.2.3 Place (Distribution)......................................................................................... 16
8.2.4 Promotion..................................................................................................... 17
8.3 Australia............................................................................................................ 17

International Marketing Group Project January 2013

8.3.1
8.3.2
8.3.3
8.3.4

Pricing......................................................................................................... 17
Product......................................................................................................... 18
Place (Distribution)......................................................................................... 18
Promotion..................................................................................................... 19

9. Guerilla Marketing........................................................................20
10. Brief Projection of Future Expansion Plans.............................................20
11. Conclusion................................................................................20
12. Citations..................................................................................21
13. Appendices................................................................................ 25
Appendix 1: Ranking of Most Preferred Fast-Food Chains.......................................................25
Appendix 2: Consumption patterns of Australians.................................................................25
Appendix 3: Graph on Ageing Population by Aged Care Connect..............................................26
Appendix 4: Age Distribution Forecast in Melbourne (2011-2031).............................................27
Appendix 5: 2009 Per Capita Meat Consumption in Australia, USA and Europe............................28
Appendix 6: Advertising revenue in billion U.S. dollars..........................................................28

1. Executive Summary
VeganBurg is a Singapore-based company founded in 2010 that aims to encourage consumers to
consume meat-free products. Operating in the fast-food industry, VeganBurg offers products that are
completely plant-based. Its products contain no gluten, dairy, eggs, preservatives, trans-fat and
genetically modified organisms (GMOs). Including its founding restaurant in Jalan Eunos, the
company currently has a total of 5 outlets around the island.
This report consists of an analysis of the market attractiveness of two markets San Francisco,
America and Melbourne, Australia for VeganBurg. The markets are evaluated mainly based on
market size, market growth and socio-cultural factors. In both markets, there is an increasing
growth in demand for healthier options, making the markets attractive for VeganBurg to enter.
Supported by secondary research, the strategies that VeganBurg would adopt when entering these
markets are also included in the report.
A competitive analysis in both markets is also included. As there are many big players in the fastfood industry, VeganBurg faces strong competitions from several global fast-food chains such as
McDonalds. However, in America, there is no vegan fast-food chain despite the presence of several
vegetarian restaurants. In Australia, VeganBurg faces direct competition from two vegetarian fastfood restaurants Lord of The Fries and Vege2go.
When entering the new markets, it is recommended that VeganBurg targets the vegan and
vegetarian, health conscious and student segments of the respective countries. This is due their
increasing acceptance of vegetarian food as well as the increasingly vast market size these segments
provide for VeganBurg.
VeganBurg would adopt a differentiated marketing strategy when entering these two markets. After
evaluating the various factors that would affect the firms marketing strategy, it is most beneficial
and appropriate for the firm to design separate offers for the different segments targeted, while
retaining some similar offers for both markets. The factors analysed are product variability, product
life-cycle, market variability, competitors marketing strategies and companys resources.
VeganBurg differentiates itself through the brand image of an environmentally friendly, ethical and
healthy company. This positioning is targeted at the increasing concern for the environment,
animals and health issues around the world. With strong global publicity of vegetarianism together
with its slogans and brand name, VeganBurgs healthy meat-free products are highly communicable
to customers, making up its unique selling proposition.
The report also includes a set of marketing mix (price, product, place and promotion) for each
market. It is to note that the recommended global pricing strategy would be the polycentric pricing
where the difference in price sensitivity for both American and Australians can be accounted for as
well as the difference in economic strength. This would be feasible due to the minimal problem of
gray trade in the fast food industry. To retain the companys identity for future global expansion,
certain factors in the marketing mix are standardised. For example, in both countries, VeganBurgs
products will be clearly labelled with its nutritional value, dietary and allergenic restrictions. This
information will better educate consumers what they are consuming. However, there are also
several adaptations done to enable VeganBurg to better cater to the needs of the local market.
Chase your Monday Blues to Monday Greens! promotion, for example, rides on the benefits of
the Meatless Mondays declared in San Francisco. On the other hand, in Melbourne, VeganBurg

could make use of partnerships with organisation such as Animal Liberation organisation to attract
consumers who are animal-lovers.
The report then concludes with a brief projection of VeganBurgs future expansion plans.
2. Company Information
2.1

About VeganBurg

Using an innovative approach to serving delicious, plant-based meals, the fast-food chain
VeganBurg was founded in 2010 with a long-term vision to restore the planet through diet, balance
and conscience. On top of that, VeganBurg also has a mission to inspire and excite the world in
introducing vegan diet into their lifestyle, as a form of sustainable diet and means of restoration for
the global environment. It aims to cater to the needs of the green community through the companys
products. Currently, the company has 5 outlets around Singapore and offers delivery services to
many areas of the country, providing its customers with greater services.
VeganBurg is closely related to the vegan and vegetarian community in Singapore. The company
has also taken part in many events to contribute back to the society. For example, VeganBurg
participated enthusiastically in the April 2012 Earth Hour organised by the World Wide Fund for
Nature. The restaurant had their lights out for an hour and donated all income earned in the hour to
Tzu Chi and the Singapore Red Cross Society.
Ever since 2010, VeganBurg has been featured on top selling magazines and newspapers such as 8
Days and The Straits Times numerous times for its good reputation and delectable products.
2.2

VeganBurgs Products

VeganBurgs core product is a savoury and healthy fast-food meal consisting of three main
components fries, drink and burger. It is famous for its signature ciabatta, rye and wholemeal
burgers buns. These buns are made from organic wholemeal grains, raw sugar, distilled water and
natural sea salt. The soft and fluffy burger bun that is achieved through numerous rounds of
research and development is also infused with nutrients such as omega, B12 and zinc, essential for a
plant-based diet.
VeganBurgs menu currently consists of 5 different burgers Cracked Pepper Mayo, Hawaiian
Pineapple, Smoky BBQ, Char-Grilled Satay and Creamy Pepper Shrooms. These burgers are all
rich in different nutrients, providing customers with a healthy yet appealing meat-free diet. The
company also offers VeganKidz meal, consisting of an attractive sammich with organic buns,
enhanced with a fries and franks. On top of that, VeganBurg introduces a special burger every
month as its Monthly Special to provide customers with an additional choice.
The patties in VeganBurg are made fully from vegetable ingredients - mainly mushrooms and soya
beans. Its products contain no gluten, dairy, eggs, preservatives, trans-fat and genetically modified
organisms (GMOs). Thus, these products do not only cater to the vegans and vegetarians but also
cater the health-conscious.

3. Market Research
3.1

America

America is the worlds largest national economy, with an economy fuelled by an abundance of
natural resources, infrastructure and a culture of high productivity. The country is a high-potential
investment market due to the availability and accessibility to high quality resources.
3.1.1

Market Size

America has a population of 313 million people (Fed, 2012), of which San Francisco is home to
7.16 million. Within the population, there are 7.3 million vegetarians together with 22.8 million
people who follow a vegetarian inclined diet where there is little and declining consumption of
meats and fish. In the city of San Francisco reside about 812,826 vegetarians within 420,366
households. With San Francisco being the third most vegetarian friendly city in America, there is a
vast market for VeganBurg to penetrate and tap on for business growth. This increases the
likelihood of VeganBurg capturing a large market share in the vegetarian fast food industry.
The fast-food industry in America is the largest in the world, generating total revenue of 195 billion
dollars (US) in 2012. The large and diverse industry provides plenty of opportunities for foreign
investors to obtain a portion of the large market.
3.1.2

Market Growth

The market growth of the fast-food industry is set to be a rising trend in America for the next few
years, with a constant revenue growth to an expected market revenue of 210.3 billion dollars (US)
in 2016 (Statista, 2012). This market forecast indicates the potential for steady growth in revenue
upon entry into the market.
In addition, the purchasing power of Americans has increased at an annual pace of 4.8% since 2008,
growing at the fastest pace in the last 5 years. This improvement in purchasing power is a positive
sign for the income flow of VeganBurgs potential entry.
It is also to note that in the America, it is estimated that the total fertility rate in 2013 will be below
the replacement rate at 1.9 children per woman instead of 2.1. However, the rate is still considered
high by industrialized country standards and that the differences in fertility rates are accounted for
by rising immigration levels which rises at 0.8% per year. This gives rise to an increase in the
number of potential fast-food consumers in the long run.
Americans are also becoming increasingly health conscious. This is seen where a study by Hercules
USA shows that 57% of consumers feel that current fast-food and restaurant offerings are too large,
unhealthy and meaty for frequent eating. It is further analysed that there is a growing demand for
healthier vegetarian food compared to the regular meat meals. The sentiments from consumers
show an opportunity for VeganBurg to satisfy the demand for healthy vegetarian food.
3.1.3

Socio-Cultural

In recent years, the vegetarian lifestyle has picked up amongst Americans. Specifically for San
Francisco, California, a NEWSTART concept has been adopted where Californian prisoners can
choose to adopt a vegetarian diet during their period of stay. On average, 85% of inmates chose the
2

vegetarian diet and recorded positive behavioural changes. This shows the increase in acceptance
for vegetarian diets within the San Francisco and California eating culture. (Vegetarian times,
2011)
Furthermore, it is becoming a trend for senior citizens to buy fast-food due to its convenience and
affordable options. The national food association revealed that senior citizens eat fast-food 60% of
the time when they dine out. It is at this point where VeganBurgs healthy menu will come into play
to be a relevant and appropriate dining option to the senior population in the city. In 2012, a
Vegetarian Resource Group national telephone survey revealed that 40% of people often order a
dish without meat, fish or fowl when eating out. This shows that there is a substantial vegetarian
dining culture within the city.
A San Francisco Census Authority study has also revealed that citizens in San Francisco spend over
40% of their household income on food. The average per capita income and median household
income of San Francisco citizens hovers at $46,777 and $72,947 respectively. A National Restaurant
Association has also revealed that an average Californian dine out 5.8 times per week and that 45%
of citizens claim that the fast-food culture is an essential and distinct part of their lifestyle. The
culture of eating out at fast-food outlets will play in the strength of VeganBurgs fast-food concept.
Furthermore, the willingness of consumers to spend on food makes San Francisco a prime
investment location.
3.1.4

Reasons for Selection

The vast market size together with the fast-food eating culture in America would be an opportunity
that VeganBurg should tap on as soon as possible. The large vegetarian population in San Francisco
would form the strong customer base of VeganBurgs entry to America. Furthermore, the increasing
growth in demand for both fast-food and healthier dining options in America would make investing
in the country a profitable one.
3.2

Australia

Australia being one of the wealthiest in the world, is a highly developed country with a stable
democracy. In recent decades, Australia has transformed itself into an internationally competitive
and advanced market economy in the world. These factors make Australia a viable and high
potential market to invest in for VeganBurg.
2.3.1

Market Size

Australia is home to 22.68 million people as of June 2011, with 4.1 million residing in Melbourne,
Victoria. There are approximately 1.13 million vegetarians and 4.07 million people preferring
vegetarian meals in Australia. About 44% of Australians are reported to be consuming at least one
meat-free dinner (that does not contain meat, poultry and fish) while 18% of Australians consume at
least three or more meat-free meals.
The Australian dining habit has evolved over the years; eating out has become a way of life. ANZ
reports that Australians dine out approximately 4 times a week and spend an average of 10.1%
($9629) of their disposable income on food.
In the recent years, Melbourne has been noted to become more health conscious. Many are opting
for a healthier lifestyle, and vegetarian diets have become more prominent. Increasing number of
Melbournians has joined the trend of a vegetarian lifestyle.
The fast-food industry in Australia is relatively small compared to other fast-food giants like
3

America. The fast-food industry in Australia however, is strong and growing. It generated revenue
of $5.1 billion in 2011, with a compound annual growth of 4.2% (2007-2011).
3.2.2

Market Growth

The forecasted market value for the Australian fast-food industry is set to reach a value of 5.8
billion with a 13% increase (from 2011) by 2016. The sector in Melbourne itself has grown 50%
over the past decade and is expected to increase even further. To add, despite the recent economic
crunch, there was a reported growth in sales by 13.3% for restaurants, fast-food and caterers in
March 2012 as compared to previous year.
In terms of a growing customer base, Australias population grew by 1.6% by the end of 2012, with
the state Victoria experiencing the highest growth in population. The net overseas migration
accounted to 58% of this growth to the Australian population. The purchasing power of Australians
has experienced a growth of 4.6% in 2012, one of the highest in the recent years. The steady
increment of purchasing power is a favourable evidence for VeganBurgs potential entry.
3.2.3

Socio-Cultural

Australia also has a large fast-food culture, for example 1 in 3 Melbournians consume fast-food
when in the city. It is also reported that 25.5% of Australia's population consume fast-food at least
once a day. This has resulted in a very unhealthy population, with about 58% of its people being
overweight.
In the recent years, the promotion of healthy living is rampant, resulting in a growing trend towards
vegetarianism and veganism. The Australian Bureau of Statistics shows that 5% of Australians
follow a strict vegetarian diet. To add, the 2010 Newspoll survey results have also demonstrated the
increasing number of Australians choosing more plant-based meals from 40% in 2004 to 70% in
2010. The American Express Dining Insights Research reported that 25% of Australians are
ordering healthier meals than they were the year before. Particularly, Australians aged 50 and above
have doubled their consumption of healthy meals. The increased demand for healthy food is one
that VeganBurg would satisfy.
Australians also place high value on the environment and animals. Multiple vegan and vegetarians
societies have been set up to aid in the prevention of animal cruelty. Animal protection campaigns
are widespread in the country with many young people supporting the cause; many who oppose to
the ways livestock are bred have also taken measures to stop this cruelty by going vegetarian. This
is yet another advantage for VeganBurg as the company strongly promotes ethical eating.
3.2.4

Reasons for Selection

The limited choice of vegan and vegetarian cuisines and the increasing number of vegetarians in
Australia provides a high potential in VeganBurgs growth in Australia. Together with VeganBurgs
mission and vision, the entry to Australia is one that would meet Australias increasing demand of
healthy, ethical and environmentally friendly fast-food.

4. Competitive Analysis
4.1

Global Competition

VeganBurg has its fair share of direct competition as many global fast food chains such as Subway,
McDonalds and Wendys sell vegan items on their everyday menu to cater to this specific group of
consumers. These competitors are present in both America and Australia. VeganBurg will face
strong direct competition in this aspect, as many vegans would already have already identified their
favourite fast-food chain that serves vegan options before VeganBurgs introduction. Therefore, it is
vital for VeganBurg to capture the market share quickly by establishing its brand and reaffirming its
position as a purely vegan fast-food joint.
McDonalds is Americas first choice when it comes to fast-food for 5 years consecutively (20042008) (refer to Appendix 1), and holds a market share of 12.7% in the U.S. fast-food industry. In
Australia, McDonalds also holds the largest market share in its industry, with a current share value
of 26% in the total fast-food category, and 78% in the burger fast-food category. It is reported that
the brand is expected to open two completely vegetarian outlets in India in 2013 (Hsu, 2012).
McDonalds has taken advantage of the large vegetarian-consumer market in India to lay their
groundwork for capturing this niche market and is said to have plans to expand globally with their
vegetarian menus. In addition, KFC which holds a market share of 9.7%, has also begun increasing
the variety of vegan-friendly items on their menus worldwide.
These global competitors not just serve as a direct competition in terms of market share but also as
substitutes. Therefore, VeganBurg must also take into consideration future global entrants when
deciding to enter new markets.
4.2

America

Although the bay area is home to many vegan restaurants and cafes such as Golden Era Vegetarian
Restaurant and Loving Hut, it does not play host to any large vegan fast food chains. In this
scenario, VeganBurg would face little direct competition in San Francisco, America. This makes it
an optimal, unexplored market for VeganBurg to tap on. Many local vegetarian restaurants in the
city are also very often Vietnamese, Indian or Chinese cuisine, unlike VeganBurgs highly
westernised menu items. In line with the American culture and lifestyle, VeganBurg would enable
the locals to enjoy their favourite burger, in a vegan-manner.
4.3

Australia

Melbourne is home to many vegetarian and vegans. Direct competition comes in the form of the
only two vegetarian fast-food restaurants in Melbourne- Lord of the Fries and Vege2go, both which
have entirely vegetarian menus and burger patties made out of mock meat. These two competitors
both hold the largest market share in selling vegan and vegetarian fast-food.
There are approximately 44 other vegan and vegetarian restaurants within the Central Business
District (CBD) area itself. This is results in a high threat of substitution as consumers may skip the
fast-food diet and go for meals in these restaurants instead. These competitors must be analysed and
monitored before and even during the market entry to identify opportunities for VeganBurg to stay
competitive in the Australian market.
However, the increasing trend towards vegetarianism in Australia, along with the growing fast-food
culture will be a great advantage for VeganBurg as it ties in with their selling point to allow
5

people to enjoy fast food that is not junk food, and to enjoy food that is prepared healthily and
ethically.
5. Target Segments
When entering the new markets, it is recommended that VeganBurg targets the vegetarian, health
conscious and student segments of the respective countries. This is due their increasing acceptance
of vegetarian food as well as the vast market size these segments provide for VeganBurg.
5.1

San Francisco, California, United States of America

5.1.1

Vegetarian/Vegan Diet

In America, reside 7.3 million vegetarians and 1 million vegans. As the top 3 vegetarian city in
America (Vegetarian Research Group, 2012), San Francisco held the World Vegetarian Festival
2012. The city is the first in America to declare every Monday as Meatless Mondays. This motion
has evolved from animal rights and vegetarian activist interest groups to an increased focus on
health and environmental reasons. The campaign struck America, with 52% of American adults
aware of the campaign reporting that they are actively reducing their meat consumption (New York
Times, 2012). This campaign has also caught the attention of other cities such as Los Angeles which
has implemented it thereafter.
In 2012, 55% of the Americans have reported that they are moving towards reducing their meat
intake in their daily meals and a bump of 2.1% increase in vegetarians/vegans since 2010. The meat
consumption in America is declining. According to the U.S. Department of Agriculture, the average
meat intake of 184 pounds a person in 2004 has declined to 171 pounds a person in 2011 and is
projected to decrease to 166 pounds this year. The city also came in 4th place as self-describe FastFood Lovers (SF Weekly, 2011), making it natural for the locals to demand vegan fast food
options.
The strong global publicity of Meatless Mondays, together with the increasing number of
vegetarians and demand for fast food positions VeganBurg as a prime choice for consumers in this
segment. As a certified vegan restaurant, VeganBurg provides customers with trust and confidence
in the product handling.
5.1.2

Health-Conscious Customers

San Francisco is listed as the 10th least obese metro areas in America, with an obesity rate of 17.5%
(livescience, 2012). As a health conscious city, San Francisco is known as Americas number one
walking city and has an abundance of sports and vegetarian options. Despite that, obesity is still a
concern in the city. Obesity-related health costs and the number obese Californians could climb
more than 15.7% and 100% respectively by 2030 (SF Gate, 2012). The rising costs of healthcare
and risks related to health have resulted in an increased concern on the food people eat.
For instance, schools in San Francisco are offering healthier food instead of the usual French fries
and corn dogs, holding the children obesity rate steady from 2005 to 2010 at 32%. There has also
been a decrease in consumption of regular soda, with 59% of Americans replacing regular soda with
diet soda and an increased popularity of 100% juice. American households have also been replacing
their traditional deep fryer with a new technology of air fryer, reducing their oil intake.
The changes in consumers beverage preferences however, did not entirely diminish the love
Americans have for fast-food. Senior citizens are buying fast food 60% of the time when they dine
out. 39.8% of adults are also reported to consume fast food at least once a week (healthmattersinsf,
2009). This provides as a strong segment for VeganBurg to enter into due to the increased demand
of healthy fast-food.
6

The rising costs of healthcare and the increasing concern for health together with the strong demand
for fast-food makes VeganBurg an attractive alternative for the health conscious. The usage of all
natural products makes this segment one that VeganBurg would succeed in.
5.1.3

Students

San Francisco houses approximately 574 schools, with 35% of its population falling within the ages
15-34. The number of international students in America has also increased by 5.7% from 2011 to
2012 according to the Institute of International Education. The increase diversity has led to an
increased acceptance in Asian cuisines, with Chinese food listed above Mexican food as the most
popular ethnic cuisine in America. The increased number of students has also raised the demand for
fast food to fuel the busy study life of students. This is evident with 40% of high school students
consuming fast-food on any given day (Medline Plus, 2012).
In response to the strong student demand, fast-food chains like McDonalds have introduced free
Wi-Fi at more than 11,500 participating restaurants since January 2010. This has extended the
duration of consumers visits, increasing McDonalds sales figure by 2.6% (Usatoday, 2010). The
strong student demand has also seen a trend whereby the average number of text messages of an
American teen increased from 255 to 2,899 texts while the talk time decreased from 435 to 191
minutes a month from 2007 to 2009. This serves as an opportunity for VeganBurg to tap onto.
In San Francisco, lie strong and established competitors such as McDonalds and Subway. These
competitors offer fast-food and have been known as places for student hangouts. However, the large
target segment, together VeganBurgs healthy fusion fast-food menu that caters to both young and
old alike provides a strong growth potential for VeganBurg in this segment.
5.2

Melbourne, Victoria, Austrlia

5.2.1

Vegetarian/Vegan Diet

About 2% of the entire metropolitan area of Melbourne is strictly vegetarian or vegan. However,
about half the population consumes fully vegetarian meals at least once a week.
Frederic Patenaude, a famous author of nutrition diets, has ranked Melbourne as the Top 10
vegetarian city in the world. Over the past 50 years, Australians eating habits have undergone
many changes. The primary motivation to adopt a meat free lifestyle is their concern for the welfare
of animals. The next important reason was concerns for the negative environmental impact of eating
meat. This is seen as Melbourne headquarters many famous organisations such as Animal
Liberation and Vegetarian Victoria.
The country has also declared the first week of October every year as the Vegetarian Week,
encouraging more citizens to embrace vegetarianism. In another Newspoll survey of 2000, it was
recorded that 44% of Australians eat one or more meat-free dinner a week. Attached in Appendix 2
are graphs by adopted from Australian Bureau of Statistics, representing the drop in consumption of
meat and increase in consumption of fruits and vegetables within Australians over a period of 60
years.
This provides VeganBurg many opportunities in this segment as more and more citizens are turning
to plant-based products, making this segment extremely attractive.

5.1.2

Health-Conscious Customers

With increasing health problems and awareness, many Australians are becoming increasingly health
conscious. According to a 2011-12 health survey released by the Australian Bureau of Statistics,
63% of the Australians are overweight, with 28% of them being obese. On top of that, it was also
reported that a quarter of the children in the country are obese. This has raised concerns within
parents to provide their children with healthy diets. A report by the Organisation for Economic Cooperation and Development in 2010 found that Australia has the most rapidly growing obesity rate
among all advanced nations for the past 20 years. It was also predicted that the rates of obesity
would rise a further 15% in the next 10 years. The increased rates of obesity have also led to a
distinct increase number of heart diseases and cancers.
These issues have caused Australians to be health-conscious. Many Australians have replaced
animal oil with vegetable oil and have also cut down on their meat intake. The gluten-free option
can also be found in numerous restaurants. The government has also been encouraging the locals to
lead a healthy lifestyle by adopting a healthy diet.
Australia also face a critical risk of ageing population, where the number of persons aged 65 and
above are expected to rise dramatically from 2012 to 2050. Attached in Appendix 3 is graph
released from Aged Care Connect April 2012 report showing the expected rise in ageing population.
Thus, there is a great emphasis on healthcare today than there was before, and Australians are likely
to become more and more health conscious.
This provides a great market in this segment as many Australians are fast-food lovers who desire to
improve their diet at the same time. VeganBurgs products that are meat-free and filled with
essential nutrients would definitely cater to the needs of this segment.
5.1.3

Students

Melbourne is a bustling city with many teenagers. There are approximately 2500 schools in
Victoria, with 1375 schools in Melbourne alone. A forecast of Melbourne age distribution over the
next 20 years and the citys age distribution in 2011 can be found in Appendix 4. An estimation of
30% of the total population in Melbourne belongs to the age group 10-24, the age group where most
students belong. Among these, the highest percentage of 19.7% belongs to the age group 20-24, the
common age group for most university students.
Even though there are several strong competitors in this segment, with the presence of international
fast-food chains such as Burger King, Subway and KFC in Melbourne, this segment is still
attractive considering the vast opportunities that will be available for VeganBurg.
VeganBurg produces a wide range of healthy products burgers, fries, hotdog, soup and even icecream - that suit the taste buds of most students today, giving the company a competitive edge in
this segment. Having operated in Singapore where there are also strong competitions within this
segment, VeganBurg has the experience to target the same segment in Melbourne. Therefore,
considering the size of the segment and the companys resources, targeting the students in
Melbourne would certainly be a great opportunity for VeganBurg.

6. Target Marketing
VeganBurg would adopt a differentiated marketing strategy when entering these two markets. After
evaluating the various factors that would affect the firms marketing strategy, it is most beneficial
and appropriate for the firm to design separate offers for the different segments targeted, while
retaining some similar offers for both markets. The factors analysed is further elaborated in the
report.
6.1

Product Variability

The menu currently consists of 5 different burgers, as mentioned in the earlier part of the report.
These burgers consist of mock chicken, pork and beef meat. Knowing that BBQ and Satay flavour
is widely accepted by Singaporeans, this menu is specially catered to meet the preferences of the
Singapore market.
Unlike Singapore, adding spices to food is not a common practice in America. Having a small
percentage of Malays in America, the locals are not accustomed to dishes such as satay. The
Association for Dressings and Sauces has commissioned a survey by Synovate, a Chicago-based
research firm to understand the favourite condiments for Americans. The survey of 1000 Americans
revealed that salsa and ketchup were Americans favourite, followed by mayonnaise, salad dressing,
barbecue sauce and lastly, mustard. There is therefore a need for VeganBurg to modify its menu to
better cater to the needs of the Americans.
Australians also have a taste different from that of Singaporeans. For example, pork is not preferred
meat in Australia. A survey by Roy Morgan in 2009 shows that Australians eat more lamb than
countries like USA and Europe and similar amounts of beef to the Americans. A graph is attached in
Appendix 5 to illustrate the differences in meat consumptions between the two countries.
Australians tend to eat their lamb and beef fresh, trimmed of fat with at least 3 different vegetables.
Thus, VeganBurg can replace mock pork burgers and offer a more varieties of mock beef burgers.
The company could also release a new mock lamb burger to attract the lamb lovers in Australia.
To maintain a certain degree of standardisation, the company could retain several signature dishes
including the Signature Organic Ciabatta bread, which is well known for being tasty and healthy.
However, due to its product nature and the differences between cultures, it is necessary for
VeganBurg to adopt the differentiated strategy in order to meet the different tastes and preferences
of consumers.
6.2

Product Life-Cycle

It is evident that the fast-food industry has already reached maturity stage in both America and
Australia. With strong competition coming from large MNCs in the industry such as McDonalds,
Subway and KFC, it is important for VeganBurg to differentiate itself by meeting the individual
segment needs of consumers. This would ensure that VeganBurg is able to attract, retain and build
its customer base.
6.3

Market Variability

Due to the cultural differences in both countries, there is significant market variability between
America and Australia.
Also shown in Appendix 5, Americans consume more poultry than Australians, while Australians
consume more lamb than Americans. This shows the differences in tastes of the two groups of
consumers. This difference makes it necessary for VeganBurg to offer different products in the both
countries while retaining some.
As mentioned in the earlier part of the report, the main motivation for Australians to adopt a
9

vegetarian or vegan lifestyle is due to the concern for animals, followed by the concern for the
environment. On the other hand, the main motivation for Americans to adopt a meat-free lifestyle is
due to a healthy diet and the environment. Hence, there is a need for VeganBurg to send different
messages in these two countries by modifying its marketing efforts. For example, the marketing
message in Australia could focus on animal-cruelty while the marketing message in America could
focus on the negative impacts of an unhealthy diet.
6.4

Competitors Marketing Strategies

In terms of eating habits, Americans and Australians have preferences widely different from one
anothers and others elsewhere. Thus, VeganBurg operates in multi-domestic markets where the
similarity of preferences is widely different and the level of standardisation for products is low. This
applies to largely to the food industry and thus, most of VeganBurgs competitors have adopted a
differentiated strategy to cater to the different needs of consumers from different markets.
McDonalds, for example, have adopted a differentiated strategy. Knowing that there is a huge
population of vegetarians in India, McDonalds released a completely new line of vegetarian items
like McVeggie burger and McAlooTikki in India. This is unlike the vegetarian-free menu in
Singapore and several other countries.
Another example is Pizzahut, which has also modified its menu in different countries. Besides the
typical beef and chicken toppings found in its pizzas, Pizzahut has also introduced a series of pizzas
in China that are topped with shrimps of abalone mushrooms. These pizzas have successfully
gained popularity in the country, making them some of the top selling pizzas of the company.
Therefore, in order to match up with its competitors, it is crucial for VeganBurg to use a
differentiated marketing strategy and gain higher, stronger sales in its target segments.
6.5

Companys Resources

Ever since VeganBurg was opened in 2010, the company has been successful in its operations in
Singapore. In less than 2 years, the company has established another 4 outlets around Singapore.
The founder has planned to only open the outlets at The Grandstand and Orchard Gateway in 2013,
however these outlets were opened in 2012 due to popularity. This shows that the company is
financially stable to adopt a differentiated marketing strategy. On top of that, VeganBurg has also
tied up with various vegetarian organisations as part of the companys corporate social
responsibility, showing that it is resourceful and able to use a differentiated marketing strategy.
6.6

Timing of Entry

The timing of entry for the two markets has to be precise. Due to the fact that both countries
experience the four seasons, it is crucial that VeganBurg enters the countries in the summer season.
This refers to the months of July and November in America and Australia respectively. This is due
to the tendency for consumers to be outdoors and increase the possibility of VeganBurg attracting
consumers. This would allow the company to establish its customer base and branding in the city
state during the summer, spring and autumn months such that the company would be able to selfsustain during the winter months. This is due to the fact that consumers would be outdoors much
less as well as much less willing to explore new eateries due to the drop in desire to be outdoors
during winter periods.

7. Market Positioning
10

7.1

Competitive Advantage: Image Differentiation

VeganBurg portrays itself as an environmentally friendly, ethical and healthy company. This
positioning is targeted at the increasing concern for the environment, animals and health around the
world. As VeganBurgs target segments are the vegetarians and vegans, health conscious and
students, the image of ethically made, healthy and green fast food would serve an avenue to appeal
to its customers as well as offer them great value. This is due to the increased amount Americans
and Australians switching their diet due to their concern for health, animals and the environment.
Contrary to the traditional fast food that offers unhealthy deep fried preserved food, VeganBurg
offers customers with healthy plant based products that do not contain any preservatives. In addition
to the rich fibre and nutrients locked into VeganBurgs products, its patties are also free from transfat and GMO ingredients. Besides its patties, VeganBurgs buns are also made up of all natural
ingredients including organic wholemeal grains, raw sugar and natural sea salt. The usage of all
natural plant based ingredients is one that enhances VeganBurgs image as a healthy, ethical and
environmentally friendly fast food restaurant.
7.2

Unique Selling Proposition: Communicable

VeganBurgs slogans such as Think fast food is junk food? Think again! and Once bitten, twice
wise are the ones that emphasizes on its healthy yet ethically sourced products. This makes it
extremely relatable to customers especially because of the increased concern and awareness of
animals, health and the environment. This is especially so as strong and established organisations
and individuals such as the Animal Liberal Rights, Meatless Mondays, EarthSave and Michael
Pollen have all emphasized on the need for vegetarianism, be it for health, environment or animals.
With the global publicity, consumers are becoming increasingly educated on the positive impact of
adopting a plant-based meal. This result in an increased ability of VeganBurg to provide visible and
known impact the diet has on mother earth as a whole.

8. Marketing Mix
8.1

Global Identity

Whilst VeganBurg would be using a differentiated marketing strategy to adapt to the localized tastes
and preferences, it is important for the company to have an identity where customers find
familiarity with. This facilitates customer recognition of VeganBurg from all over the world,
assisting in the companys establishment of customer loyalty.
8.1.1 Product
8.1.1.1 Educating Consumers about Nutritional Benefits
In VeganBurgs entry to both Australia and America, a highly standardized menu with most of the
signature burgers will be retained in both America and Australia, with a certain degree of adaptation
in the respective markets. This would be further elaborated below, where Americas store is
recommended to have seasonal specials whereas VeganBurg is Australia would adopt a daily special
approach.
Facing an ageing population and an increase in health problems such as obesity, Australians and
Americans have become more health conscious. This can be seen through the socio-cultural
characteristics of each country mentioned above. They are more aware of what they are consuming
11

and becoming more involved in healthy eating. VeganBurg identifies this greater need and
importance of educating customers on healthy eating.
VeganBurgs products will be clearly labelled with its nutritional value, dietary and allergenic
restrictions. This information will better educate and inform consumers what they are consuming.
To add, information on how VeganBurgs ingredients are ethically sourced would also be provided.
By doing so, VeganBurg would also be able to clearly distinct itself by being an engaging,
participative and socially responsible fast-food provider that provides greater reliability and
assurance amongst customers.
8.1.2 Place (Distribution)
8.1.2.1 Physical Location
When entering both countries, VeganBurg is recommended to retain a permanent location to
facilitate customer recognition and loyalty. In San Francisco, California it can be located in the
CBD with surrounding schools such as San Mateo Union High School and corporate companies.
This would not only create strong brand awareness at the start but also ensure that VeganBurg is
able to extend its distribution to a large amount of its target group. Similarly in Melbourne,
Australia, it would be in the CBD due to its proximity to many local universities and the working
population.
8.1.2.2 SMS-to-Order Service
VeganBurg may introduce a sms-to-order service to cater to the fast paced lifestyles of both
Americans and Australians. Through this service, customers would only have to sms VeganBurg at
its hotline with the items to be ordered and the time of collection. According to the sms details,
VeganBurg would be able to prepare the food for the customers to be ready for collection by the
stated collection time.
Payment would be facilitated upon physical collection of the goods, in line with what many
competitors such as McDonalds in the respective countries are doing. This reduces the customer
waiting time, resulting in an increased customer satisfaction. In addition, VeganBurg would be able
to better organise its time for food preparation, resulting in lesser error during preparation. This
would lead to a reduction in wastage, lowering the costs incurrences due to wastage.

8.1.3 Promotion
8.1.3.1 Loyalty Card
With several competitors in both America and Australia, It is crucial that VeganBurg provides
incentives for loyal customers. Taking that into consideration, a loyalty program can be used to lock
in customers by implementing a points system and cashless payment. For example in America, an
additional 10% credit could be added into the pre-loaded card for top ups of more than USD$20.
This would leave an average balance of USD$4 (in assumption that each customers expenditure is
USD$8), promoting the return of the customer to the eatery to make use of the remaining stored
value.

8.1.3.2 Social Platform

As mature markets, citizens in both countries have a high accessibility to social media. In America,
an online survey conducted by Common Sense Media by Knowledge Networks found that 9 out of
10 teenagers in San Francisco has used some form of social media, with more than half of all teens
12

who check their social networking sites at least once a day. Similarly, Australia has the some of the
highest social media usage in the world. A survey found that 62% of Internet users in Australia have
a strong presence on social networking sites. Facebook dominates the Australian social media
space, capturing up to 97% of social media users (9 million). This percentage includes users from
both sexes and all age groups with average users spending more than six hours a week on the site.
With that, VeganBurg can promote cost efficiently and effectively by utilizing social platforms such
as Facebook, YouTube and Twitter.
One of the most popular ways to do so is to create a video that promotes VeganBurg in a humorous
manner and post them up on Youtube, Facebook and Twitter. Jenna Marbles
(http://www.youtube.com/user/JennaMarbles) is a famous YouTube star with 5.7 million subscribers
and nearly 1 billion total video views, spanning across her 125 uploads. As a pro-vegetarian
American who adopts a healthy lifestyle and has expressive love for animals, VeganBurg could
approach her for an endorsement deal to increase the chains publicity and exposure with the youth,
vegan or vegetarian, animal lovers and health-conscious community. This would allow us to reach
all our targeted audience through a single platform.

VeganBurg could also use traditional methods such as hosting a page on Facebook and offering
discounts for every repost, like or comment placed on our promotional uploads. In addition,
seasonal competitions such as Last to Comment would win a Free $100 Voucher could also aid in
increasing the brands e-presence. It is because every time a comment is placed on an upload, the
post is pushed up on all followers feeds - allowing Facebook users to have a view of the brand and
check out the site and page if interested. Users are also required to Like a page before
commenting, increasing the brands fans population. This would give VeganBurg a larger audience
to its page, spinning a multipliers effect, and have their promotions and updates seen by an
increasingly amount of people in time.
8.2

America

8.2.1 Pricing
8.2.1.1 Loss Leader Pricing
As VeganBurg enters the San Francisco market, the business will practice loss leader pricing to
draw attention and traffic to the new outlets. This will help build customer base and loyalty right
from the beginning as a buying habit is created. However, prices would not be set below cost price,
but rather having very low margins on the specific items. The primary reason for adopting this
strategy would be for VeganBurg to remain competitive in San Francisco where there are many
substitutes around.
Certain items in VerganBurgs menu such as their fries could be priced as a loss or less profitable.
For example, a pricing of USD$1 could be charged for a pack of small fries. This is 200% reduction
in its normal average retail pricing. This is done in hope that customers purchase other items such as
beverages and set meals to go along with this lower-price item. If successful, this method would
induce short term losses that yield long term benefits and help the company maintain a healthier
cash flow.
Other items on the menu such as set meals will be priced competitively against other industry
competitors. An average meal in a fast-food joint is priced at USD$6.70 whereas a regular vegandiet meal would cost an average of USD$10, inclusive of tipping. Therefore, VeganBurg would
price their set meals ranging from USD$7 to USD $9 which is reflective of the price between the
two categories of goods. In San Francisco, it would not be necessary to adopt low pricing strategies
13

for the set meals as the public are willing to spend on food, indicated by the reservation of 40% of
an individuals income on food.
This pricing strategy is often used in the America and has proven successful for many companies.
For example, Amazon - Americas largest online retailer prices Kindles at $79 when its costs
$84.25 to make. This is because its focus on profit is not tuned towards the hardware, but rather the
kindles content, including e-books, e-music and revenue from advertising sales (Ludwig, 2011).
Although the loss leader pricing strategy is frowned upon in some countries like the United
Kingdom, research has shown that the United States defends this practice and recognizes that it is
one of the measures used by establishment to increase in-store traffic and profit margins.
8.2.2 Product
8.2.2.1 Adaptation in Menu
The increased diversity of culture has opened up America to the Asian cuisines. With Chinese food
ranked as the most popular ethnic food in America, VeganBurg could make use of this to its own
advantage by offering burgers such as the Hawaiian Pineapple burger that is glazed with traditional
Chinese sweet plum sauce.
It is also essential for VeganBurg to modify part of its menu to better cater to the local tastes and
preferences. For example, since salsa and ketchup are the most popular sauces in America, the
Char-Grilled Satay Burger could be modified into Char-Grilled Salsa Burger.
In addition, due to the American culture of consuming soda drinks, VeganBurg may offer a healthy
alternative of Coke Zero. Furthermore, with an increasing demand of 100% fruits and vegetables
derived juices, VeganBurg could also offer freshly squeezed juices in replacement of the syrup
derived juices in Singapore.
Lastly, due to the unhealthy image painted by fast food restaurants of their deep fried French fries in
America, VeganBurg could offer air fried French fries as an alternative. This reduces 80% less fat
without compromising on the taste of fries. Although a heavy investment, the air fryer would serve
as a tool to target the Americans main motivation in adopting a vegetarian or vegan lifestyle, which
is for the health benefits.
8.2.2.2 Customised Burgers
Due to the Americans culture of flexibility, VeganBurg may also introduce a customised burger
concept together with their regular burgers to provide Americans the flexibility to select their
ingredients. In this concept, customers would be given the liberty to select a bun, patty and a
maximum of three sauces of their choice. They would however, be free to select the amount and
type of vegetables, as long as it fits into the bun. The ingredients selected would be prepared on the
spot by the staff and served to the customer at a fixed charge.
The concept of customised burgers is significant as the no customisation concept of Dominos
new Artisan pizzas led to a strong negative reaction by American customers who linked the idea to
frozen food and refusing the right of Americans. On the flipside, this method has been proven
successful with fast-food chains such as Subway in which customers describe as fresh and healthy.
Hence, by providing customers the flexibility to customise their burgers, VeganBurg can portray a
fresh and healthy image to its customers.
8.2.2.3 Seasonal Menu Changes
14

VeganBurg could provide seasonal menu specials in America in place of the monthly specials held
in Singapore. This is done according to the changing tastes and preferences as well as nutritional
needs of its consumers during different seasons. For example, during summer, VeganBurg could
offer chilled drinks and seasonal tropical burgers such as its Hawaiian Pineapple burger in addition
to the menu. The naturally moist tropical fruits would serve as a cooler to consumers during the hot
and dry season. During winter on the other hand, VeganBurg could offer warm drinks and beef
burgers in addition to the menu to warm up the systems and regulate the body temperature of
consumers. The seasonal menu according to different nutritional needs would strengthen
VeganBurgs position as a healthy restaurant. In addition, VeganBurg may also make use of the
seasonal menu to scot for the potential burgers to add on to the existing menu.
8.2.2.4 Augmented Services: Wi-Fi
With the fast paced life of Americans, it is important for VeganBurg to provide free Wi-Fi in order
to compete with the large fast food chains such as McDonalds. The free Wi-Fi would encourage
customers to extend their duration in VeganBurg, thereby increasing the chances of purchasing
more from the shop. With the increased use of technology, the free Wi-Fi service would serve as a
convenient factor to the fast-paced life of working adults and students, especially in the CBD where
time is money.
8.2.3 Place (Distribution)
8.2.3.1 Drive Thru
With 379,898 cars registered and only 320,000 street parking spaces, there is a need to provide
VeganBurgs service without consumers leaving the cars. As such a drive-thru area may be set up to
allow customers to collect and pay for their food without having to find a parking lot. This ensures
that the accessibility customers have to VeganBurg is not heavily affected by the number of parking
lots available. Delivery services however, would not be available in San Francisco due to its strong
dining out culture.
8.2.3.2 Mobile Location
Besides having a permanent location, VeganBurg may also expand its distribution channel by
participating worldwide or local events such as the World Vegetarian Festival or school forums
through a mobile food truck. This is especially due to the strong food truck culture in America,
making the concept familiar to the locals. This mobile truck can be used as a food preparation and
selling truck during events and serve as a supplies delivery truck during periods when it is not used.
The truck would ensure that VeganBurg would be able to extend its distribution channel out of its
permanent location. In addition, it would also serve as a location finder for VeganBurg to analyse
the locations in which demand is high for future expansion plans.

8.2.3.3 VeganBurg as a Supplier

Another feasible idea would also be to supply food to organisations, companies and schools. This is
especially so due to the positive impact vegetarian food has on the prisoners. In addition, with a
strong emphasis on whole grains and beans by the school, VeganBurg may serve as a healthy yet
tasty alternative to students to encourage them to adopt a healthier lifestyle. In such cases, due to
the bulk order, delivery services by the mobile truck may be requested to fulfil the order.

15

8.2.4 Promotion
8.2.4.1 Food Trade Shows and Fairs
There are many organizations that organize food fairs annually. VeganBurg would make special
appearances at vegetarian or vegan-centred food shows such as those organized by the Bay Area
Vegetarians and The San Francisco Vegetarian Society to better cater to our targeted audience.
Booths can be set up to give out samples of VeganBurgs specialty burgers along with pamphlets on
nutrition and how eating less meat benefits health and conserves the environment. This would help
educate potential customers and expose them to mock-meat patties which do not compromise on
taste.

8.2.4.2 Advertising through Internet Giants Google and Yahoo

As print media is increasingly dying out in San Francisco and the entire United States, companies
are turning to online marketing tactics to remain competitive. In this aspect, VeganBurg would
follow suit and place advertisements through Internet giants such as Google and Yahoo. Statistics
have shown that in merely the first half of 2012, Google rakes in $20.8 billion ad revenue, while the
entire print media industry in America generated only $19.2 from print advertising (Richter, 2012)
(Refer to Appendix 6). This reflects the need to keep up with times and have VeganBurg follow suit,
placing their advertisements through GoogleAds.

8.2.4.2 Chase your Monday Blues to Monday Greens! Promotion

The strong global publicity of celebrities, government and organisations encouraging Americans
going meatless on Mondays has led many Americans adopting a greener Monday diet. Together
with the concept of Monday Blues, VeganBurg could adopt an in-store promotional strategy to
encourage Americans to go green on Mondays. During Mondays, VeganBurg could offer customers
two set meals for the price of one or offer a free drink to individual customers. This would not only
encourage customers to adopt a greener diet on Mondays, but also increase their acceptance towards
veganism in the long run, building a stronger customer base for VeganBurg.
8.3

Australia

8.3.1 Pricing
8.3.1.1 Penetration Pricing
VeganBurg will enter Melbourne with low-price penetration pricing. With VeganBurg adopting a
polycentric pricing approach where the prices in America and Australia would be localized, the
pricing in Australia would similarly have a wide margin of discretion to the local management to set
appropriate prices that level the market. This is mainly because there is much price sensitivity in
Melbourne, with only 10.1% of household income being spent on food. While Melbourne is moving
towards living a healthier lifestyle, prices of food have stopped them from doing so and thus some
citizens turn to fast-food for a cheaper alternative.
Thus, to rival with the competition in Melbourne, with a direct competitors such as Lord of the
fries, VeganBurg will target on the price sensitivity of the Australians by using prices that are below
competitors, offering customers better value. This would be one advantage VeganBurg would
leverage on upon entering the market. This will also enhance the possibility of gaining a larger
market share. This pricing strategy is plays to VeganBurgs advantage as it provides an affordable
option for consumers across all three target segments.

8.3.2

Product
16

8.3.2.1 Adaptation in Menu

As many Asians have been migrating to Australia, Asian cuisine has an increased influence in the
Australian food culture. This plays to VeganBurg's strength as the company incorporates Asian
flavors along with Western flavors. Similar to entering America, there will be a certain level of
modification to be made to Veganburg's Australian menu. As the locals consume lesser pork and
more of beef and lamb, VeganBurg could replace its mock pork burgers by offering more varieties
of mock beef and lamb burgers.
Other taste preferences include Australians love for tomato sauce and potatoes. The favourite
Australian sauce is that of a tomato based; rival company, Lord of the Fries most popular sauce in
its Melbourne outlet is the Aussie sauce (with rich tomato and vinegar base). VeganBurg can replace
some less popular sauces with that of a tomato-based one to cater to the Australian taste preference.
It is acknowledged that almost all of Australians love potatoes; it is a must to have it at least once a
week. Chips, the Australian name for fries are also one of the most favourable dishes in Australia.
Unlike normal fries, chips are slightly thicker and are usually fried with the potato skin still on.
VeganBurg can offer chips as well as cater to the locals love for potato by coming up with other
potato dishes such as baked potato or even potato salad.

8.3.2.2 Monthly Fusion Specials

Australia has one of the most diversified cuisines in the world due to Asian and European migrating
influences. This has resulted in an Australian dining public that is open to trying new and innovative
dishes with a diversified background.
In Melbourne alone, vegetarian fairs are noted to be mainly either Chinese or Indian cuisine. With
Asian cuisine playing a huge role in Australian food fare, VeganBurg can come up with fusion
burgers of Thai, Japanese, and Malay cuisine. Other derivatives include cuisines of Italian or
Mediterranean, which is also popular in Australia. VeganBurg can release these special fusion
burgers monthly to offer more diversified choices to cater to the lack of vegetarian cuisine choices.

8.3.2.3 Augmented Services: Television

According to OzTAM, Australians are spending more time watching television despite having a
fast-paced working lifestyle; this is especially so amongst Australians in metropolitan states. By
placing a television within the VeganBurg store, customers would be able to catch up on their local
news or even sports events when time permits. Television programs aired can extend a customers
duration in VeganBurg thereby allowing more opportunities to purchase from the store.

8.3.3 Place (Distribution)

8.3.3.1 Deliveries
One way of distribution for Australia is through delivery services. Australia has spent $37 billion on
takeaway and delivery food in the year 2012, making them the 11st biggest spending fast food
nation on earth. This increase in demand for takeout and delivery services is a good opportunity for
VeganBurg to extend its customer service in Australia as well. This will largely increase
VeganBurgs distribution as it is not only limited to the store.

17

8.3.4 Promotion
8.3.4.1 Online Presence
VeganBurg can expand its online presence by making use of vegan and vegetarian forums and
organizations such as Animal Liberation to reach the customers. By doing so, VeganBurg can
specifically cater to its vegetarian audiences and also disseminate information about VeganBurg.
Information such as special events or promotions can be shared through such platforms.
8.3.4.2 Print Media
Advertisement endorsing VeganBurg together with promotional coupons can be placed in popular
newspapers and magazines. Despite the decline of print media, newspaper and magazine readership
is still going strong with 69% of the Australians still reading newspapers and magazines.
In addition, to address the shrinking print-reading market and continuous increase in online
marketing, print media is forced to adapt to new media such as implementing online subscription.
One such news outlets is the Melbourne Herald Sun. Other prominent newspaper print media in
Melbourne includes The Australian and The Age. Magazines include Australia Womens Weekly,
Womans day and Living Vegan.
Australia Womens Weekly is ranked as the top circulated magazine in Australia as of February
2012. The magazine readership is over 500,000 a month. The lifestyle magazine will allow
VeganBurg to reach out to females demographic who are health conscious. Living Vegan is the first
Australian lifestyle magazine for vegans that provide informative and innovative articles. The
magazine has a cult following amongst vegetarians and vegans since it was released. Backed by
several vegetarian organizations such as Animal Liberation Victoria, Animal Right Advocates,
Uproar or Vegan Society NSW, Living Vegan would be VeganBurgs direct marketing channel to
the vegetarians and vegan customers.
8.2.4.3 Partnership
In addition to joining online vegetarian forums, VeganBurg can partner with vegetarian or vegan
organizations or organizations that are involved in animal cruelty prevention. VeganBurg as a
partner of these organizations can participate or sponsor events that the organizations organize. An
example would be events that are against animal cruelty, organized by the Animal Liberation
organization, or the Australian Teens Against Animal Cruelty (ATAAC).
By partnering with such organizations, VeganBurg can be more proactive in giving back to the
Australian animal society, thereby increasing the number of supporters. This would help VeganBurg
gain more publicity, gathering a larger customer base. VeganBurg would offer 10% discounts to
members of these organizations, or even volunteers who volunteer at these events.
8.2.4.4 In-store promotions
Another promotional tactic is to have in-store burger-of-the-day promotions. For every day of the
week, there will be a different burger that is cheaper than the usual price. This is in relation to the
increasingly price sensitivity of Australians, including students and adults. Information on this
promotion will be made known on VeganBurgs website and social media. However, the promotion
for the burgers would only be limited to dine-in customers and not applicable for delivery or take
away. This would attract more in-house customers and also different customer crowds on various
days. Spending more time within the store would also entice the customers to buy a drink or a pack
of French fries to go along with the burger.

18

9. Guerilla Marketing
Upon entry of the two markets, it is crucial that VeganBurg establishes its brand image of being
healthy as well as an environmentally friendly company. This would be done through organizing an
event called Appreciate, before it is too late in both America and Australia. Taking into
consideration the difference in culture of the two countries, where the primary reason for eating
vegan in America is to be healthy and in Australia is for the conservation of animals, the event in
the two countries would be adapted accordingly. In both countries, the event would be used to
promote VeganBurgs products through testing sessions. These events are to be held at prominent
districts such as the CBD of Melbourne as well as downtown in San Francisco. This would attract
the attention of the media, resulting in free publicity for VeganBurg as it enters the two markets. In
addition, both events can include giving out pen-posters where VeganBurg products are promoted to
the public.
America
The event in America will include informational resources about healthy eating as well as live
musicians. VeganBurg can take this opportunity to launch its very own Eat-Healthy, Eat Vegan
diet where a 30 day vegan diet is promoted to the public. The highlight of this event will be where
people are invited to write messages about their goals of healthy eating on post-its before pasting it
on a tree model. This tree model would then be placed outside VeganBurgs store. This would
establish VeganBurg as a house-hold name for healthy eating within America.
Australia
Australias event will showcase booths from Animal Liberation Organization and Australian Teens
Against Animal Cruelty to create an awareness about animal cruelty. It is here where VeganBurg
can promote vegan eating as a solution to animal cruelty and extinction. Similarly to the festival in
America, the festivals highlight involves the public writing notes about their thoughts of animal
cruelty and possibly a commitment to adopt vegan eating as a solution to animal protection. The
notes would be posted on a tree model and places outside VeganBurgs store.
These events aim at projecting an appealing, healthy and animal friendly image to the public.
10. Brief Projection of Future Expansion Plans
After 5 years of operation, it is recommended that VeganBurg begins location expansion within the
respective countries to build on its brand image within the country if the first store has been
successful. The recommended form of expansion would be franchising due to its low capital
investment by VeganBurg. By using the capital from the franchisee, VeganBurg would be able to
achieve rapid expansion without incurring overheads and costs associated with opening companyowned outlets. This allows the company to build consumer recognition and quickly establish the
brand name. At this point, it is crucial that VeganBurg is able to train the franchisees in how to
bring out the B brand in the right manner. A maximum of 2 franchisees within the next 5 years are
to be established to ensure that VeganBurg has control over its expansion.
11. Conclusion
Both America and Australia are prime locations for VeganBurgs potential market entry due to their
similarities in consumers preferences, developed national infrastructures and growing demand for
vegan eating. With the predicted market growth rates in the next 5 years combined with the growing
demand for vegan eating, it is crucial that VeganBurg enters the market to capitalize on the future
growth situation. Through expansion, VeganBurgs strategy would be to remain a certain degree of
brand identity through a global image as well as having a level of adaptation to the countrys norms
and requirements.
19

12. Citations
Ludwig, S. (2011, November 10). Loss leader alert: $79 amazon kindle costs $84 to build read
more at http://venturebeat.com/2011/11/10/amazon-79-kindle-costs-84-to-build/
Richter, F. (2012, November 12). Google rakes in more ad dollars than u.s. print media. Retrieved
from http://www.statista.com/topics/1001/google/chart/709/google-s-ad-revenue-since-2004/
Aged Care Connect. Did you know Ageing Population. Retrieved from
http://www.agedcareconnect.com.au/did_you_know.php
Allday, E. (2011, November 09). Fewer ca kids overweight, but bay area struggles. Retrieved from
http://www.sfgate.com/news/article/Fewer-CA-kids-overweight-but-Bay-Area-struggles2323437.php
American vegan. (2011). Retrieved from http://americanvegan.org/meetingsandconventions.htm
Armstrong, L. (2012, January 6). San francisco fact sheet. Retrieved from
http://media.sanfrancisco.travel/documents/San Francisco Fact Sheet 2012.pdf
Asiaone. (2012, November 14). China, middle east fuel student growth in us.
Retrieved from http://www.asiaone.com/News/Latest+News/Edvantage/Story/A1Story20121114383253.html
Bryner, J. (2012, March 07). The skinniest and fatest us cities revealed.
Retrieved from http://www.livescience.com/18889-cities-obesity-rates.html
Chain restaurants. (2012). Retrieved from http://www.peta.org/living/vegetarian-living/chainrestaurants.aspx
City of Melbourne. (2011, January 19). Age Structure. Retrieved from
http://forecast2.id.com.au/default.aspx?id=128&pg=5210
City of Melbourne. (2011). Melbourne in numbers. Retrieved from
http://www.melbourne.vic.gov.au/AboutMelbourne/Statistics/Pages/MelbourneSnapshot.aspx Colliver, V. (2012, September 18). Heavy toll seen on health habits: Obesity.
Retrieved from http://www.sfgate.com/health/article/Heavy-toll-seen-in-health-habits-Obesity3875892.php
Despite more 'health'y options, little change in fast-food calorie counts. (2012, November 29).
Retrieved from http://www.nlm.nih.gov/medlineplus/news/fullstory_131781.html
Diet soda. (n.d.).
Retrieved from http://www.healthyhorns.utexas.edu/n_dietsoda.html
Discussion: Dominos says no when it comes to artisan pizza customization. (2012, April 09).
Retrieved from http://grubgrade.com/2012/04/09/discussion-dominos-says-no-when-it-comes-toartisan-pizza-customization/

20

Free wi-fi @ mcdonalds. (n.d.). Retrieved from

http://www.mcdonalds.com/us/en/services/free_wifi.html
Gibson, T. (2013, January 15). What your favorite condiment reveals about you. Retrieved from
http://www.dressings-sauces.org/pressroom_revealsaboutyou.html
Hagan, K. (2012, October 9). Nations number of obese growing. Retrieved from
http://www.smh.com.au/national/nations-number-of-obese-growing-20121029-28f6t.html
Hartlaub, P. (n.d.). Sweet! america's top 10 brands of soda. Retrieved from
http://www.msnbc.msn.com/id/42255151/ns/business-us_business/t/sweet-americas-topbrands-soda/
Hicks, S. (2008). Authentic chinese food. Retrieved from
http://stephhicks68.hubpages.com/hub/Authentic-Chinese-Food
Hsu, T. (2012, September 04). Vegetarian mcdonald's: Its first non-meat restaurant to open in india.
Retrieved from http://articles.latimes.com/2012/sep/04/business/la-fi-mo-mcdonaldsvegetarian-india-20120904
Holland, C. (2008, May 7). San francisco-based vegnews magazine wins national award for best
lifestyle magazine. Retrieved from
http://vegnews.com/web/pdf/press/VegNewsMaggieAward2008.pdf
Kaye, L. (2012, March 14). Is america beyond peak meat?. Retrieved from
http://www.triplepundit.com/2012/03/meat-consumption-united-states/
LaBua, D. (2011, February 04). Parking quiz answer: Sf cars vs. parking spaces. who wins?.
Retrieved from http://www.7x7.com/travel-active/parking-quiz-answer-sf-cars-vs-parkingspaces-who-wins
Loving hut menton, france won the vegan of the year 2012 awards . (2012). Retrieved from
http://www.lovinghut.com/portal/bbs/board.php?bo_table=events&wr_id=10
Mcdonald's sales figure rises 2.6% in jan.. (2010, February 09). Retrieved from
http://usatoday30.usatoday.com/money/companies/earnings/2010-02-09mcdonaldsprofits_N.htm
Meatless , M. (n.d.). Retrieved from http://www.meatlessmonday.com
Nmims University. Mcdonalds: Behind the Golden Arches. Retrieved from
http://www.scribd.com/doc/11520753/Marketing-Strategies-of-McDonalds
Queensland University Survey. (2009). Australian Vegan Business. Retrieved from
http://australian-vegan-business.com/wp-content/uploads/2009/03/uq-vegsurvey-20090209.pdf
Rao , K. (2012, September 6). Would you eat in a mcdonald's vegetarian restaurant?. Retrieved
from http://www.guardian.co.uk/commentisfree/2012/sep/06/mcdonalds-vegetarian-restaurant
Rice, K. (2012, June 04). Eating seasonally for optimal health. Retrieved from
http://www.examiner.com/article/eating-seasonally-for-optimal-health

21

Richard, F. (2011, September 21). America's 20 most economically vibrant college towns. Retrieved
from http://www.theatlanticcities.com/neighborhoods/2011/09/americas-20-mosteconomically-vibrant-college-towns/155/
San francisco demographics. (n.d.). Retrieved from http://www.zillow.com/local-info/CA-SanFrancisco-people/r_20330/
San francisco schools. (n.d.). Retrieved from http://www.greatschools.org/california/san-francisco/
Simmons, E. (2009). Ranking of most preferred fast food chains. Retrieved from
http://www.marketingcharts.com/topics/behavioral-marketing/top-10-favorite-fast-foodchains-mcdonalds-still-1-8667/experian-simmons-qsr-rankings-most-preferred-fast-foodchains-april-2009jpg/
Smith, A. (n.d.). The 10 healthiest cities in america. Retrieved from
http://www.thesurvivorsclub.org/health/general/americas-healthiest-cities
Statistics and facts on fast food. (n.d.). Retrieved from http://www.statista.com/topics/863/fast-food/
Sumanik, C. (2012, June 26). Teens on social media: Many benefits to digital life, but downsides,
too. Retrieved from http://www.commonsensemedia.org/about-us/news/press-releases/teenson-social-media-many-benefits-to-digital-life-but-downsides-too
The Main Meal. (2011). Role of read meat in Australian Diet. Retrieved from
http://www.themainmeal.com.au/Red+meat+and+nutrition/Role-of-red-meat-in-the-Australiandiet/Role+of+red+meat+in+the+Australian+diet.htm
The New York Times. (2012, January 10). Were eating less meat. why?. Retrieved from
http://opinionator.blogs.nytimes.com/2012/01/10/were-eating-less-meat-why/
The san francisco vegetarian society. (2012). Retrieved from http://www.sfvs.org/
Universities in california by university town. (2012). Retrieved from
http://www.4icu.org/us/universities-california.htm
USDA: Food Environment Atlas. (2012). San francisco county, california obesity rates and fast food
consumption. Retrieved from http://county-food.findthedata.org/l/222/San-Francisco
Vegetarianvictoria. (2011). Going vegetarian. Retrieved from
http://www.vegetarianvictoria.org.au/going-vegetarian/statistics-on-vegetarianism.html
Vegetarian statistics. (2012, October 16). Retrieved from http://www.statisticbrain.com/vegetarianstatistics/
Yacoubou, J. (2012). Veggie Options at Quick-Service Restaurants Chains. Retrieved from
http://www.vrg.org/journal/vj2008issue2/veggieRestaurantChains.htm
Zillow. (2012). San francisco demographics. Retrieved from http://www.zillow.com/local-info/CASan-Francisco-people/r_20330/

22

IBISWorld. (2012). Revenue of the fast food restaurant industry in the u.s. from 2002
to 2016 (in billion
u.s. dollars). Retrieved from http://www.statista.com/statistics/196614/revenue-ofthe-us-fast-food-restaurant-industry-since-2002/
U.s. immigration statistics. (n.d.). Retrieved from
http://www.gcir.org/immigration/facts/statistics
Shobhana, C. (2012, 09 11). Growing paychecks boost americans purchasing power:
Economy.
Retrieved from http://www.bloomberg.com/news/2012-08-10/growingpaychecks-boost-americans-purchasing-power-economy.html

23

13. Appendices

Appendix 1: Ranking of Most Preferred Fast-Food Chains

Appendix 2: Consumption patterns of Australians

24

Appendix 3: Graph on Ageing Population by Aged Care Connect

25

Appendix 4: Age Distribution Forecast in Melbourne (2011-2031)

26

Appendix 5: 2009 Per Capita Meat Consumption in Australia, USA and Europe

Appendix 6: Advertising revenue in billion U.S. dollars

27