Hummus Bar: Dipping into International Markets

Submitted By: Group #8
Hari Padmakumar Jijo Francis Navtej Singh Sran

Submitted on 29th October 2013

... Conclusion………………………………………………………………… 13 VI. Bibliography………………………………………………………………. 15 1 ..………………………………… 6 IV. Marketing Plan…………………………………………………………. 2 II.…. 3 III. Market Research………………………………………………………. Introduction…………………………………………………………. Market Analysis……………………….INDEX: I. 10 V.

They offer different kinds of salads. which is planning to enter the international market. brand management and developing decision making skills. It has been recognized and awarded for being the best 2 . this place is completely dedicated to Hummus which can be enjoyed with several types of dishes. The restaurant focuses on the creating simple and good quality food. It has already got seven restaurants and it’s turning out into a successful chain in Hungary.I. The founder of the restaurant is thus seeking investors in order to lower the risks. As the name suggests. The case study will include all the different methods used to determine the right market. soups and vegan and meat dishes.  About the Company: Hummus bar is a really successful Middle Eastern Restaurant in Hungary which was setup 7 years ago by Gotlibovitch. Introduction This case study is based on a successful Hummus bar located in Hungary. select the right marketing strategies and to enhance the brand. determining the right market entry.

exotic cheap eatery by the Time out magazine. Rowe farms and Kalendar) in order to obtain the buying habits and other data’s of the customers. from which about 65% percent were females and the rest (35%) were male customers. we went to several restaurants and grocery stores (Ghazale Restaurant. Our participants were mostly people of age between 18 and 45. From our research we found out that 3 . Hummus bar have also got take out and delivery service. Market Research In order to find the people’s growing interest in hummus. Sababa. We had face-to-face interview with 50 customers. Fiesta farms. Jerusalem Restaurant. The restaurant is a huge success due to its prompt and friendly service and they always provide first class. cheap and fresh food to the customers. They have loyal customers due to all this factors. About 92 percent of the participants liked hummus and from which about 83% bought packed hummus and hummus related products. The restaurant has got huge reputation among the locals and is really active on social media websites in order to promote their services. (hummusbar) II. The restaurant is really clean and the price for a meal is just 8-10 euros for a customer.

healthy and available in different flavors. Gender male.there is a market for Hummus and hummus related dishes. 65 female Customers Doesn't like Hummus 8% Like Hummus Doesn't like Hummus Like Hummus 92% 4 . 35 male female. Most of the customers like hummus because it’s tasty.

customers who regularly buy hummus products 90 80 70 60 50 40 30 20 10 0 yes no 17% customers 83% reasons for usage of hummus low cost. 32 low cost tasty healthy tasty. 56 5 . 12 healthy.

both locally and internationally. Nowadays there is a tremendous increase in the number of hummus dedicated restaurants and hummus products. In America the hummus accounts for average weekly sales of $600 for each store and the market for dips are increasing at 14%. (Go part-time vegan and get healthy) 6 . sesame. it is growing rapidly by each day in North America and in many other countries. This is proven by the results of latest surveys done by Google and other marketing research teams. The competition is getting bigger as more people have started using it. The major ingredients of hummus are chickpeas. Some of the examples of packaged hummus that are available in stores are Fontaine Santé Hummus. Market Analysis Hummus was an Arabian dish introduced among the Jewish people in the early 1950s. Even though the market for hummus and hummus related food items are in its beginning stage. Sunflower Kitchen Classic Hummus and PC Hummus and Vegetable dips. Most of the people are nowadays turning into vegans or part time vegans due to their concern for health. lemon and garlic. (Sareen) . (For the love of Hummus)More companies have started creating their own hummus and selling it.III. Sabra Classic Hummus. Summer Fresh Hummus. Majority of the best hummus restaurants are owned by the Arabs.

as well as the size and nature of the market. natural environment and demographics factors. inflation. product price. Both vegans and non-vegans love hummus products. The price of food products will increase when it enters the international market due to changes in economic growth. The price of product varies in different regions depending upon taxes. technological. Hummus bar is famous for its cheap price which is due to local production. PEST Analysis: The different factors that affect the industry include competitive. The socio-cultural factor doesn’t affect the usage of hummus food products because of its quality. socio-cultural. A product chosen also depends up on age. transportation. 7 . Hummus is already popular among people from all over the world because it is healthy and cheap. Economic factors: Hummus bar is a local establishment hence its competition will increase when it enters the international market. exchange rates. etc. price of ingredients. Political/Regulatory factors: The political/regulatory factors can affect the price and the sales of the food products. education and ethnicity. trade restrictions and other laws. The social and cultural factors affect the consumers need. race. regulatory. promotions and preferences. Socio-cultural factors: Consumers choose their food by several factors like income. The marketing strategy of the company changes along with these environmental factors. economic.

improving the scale of production. • fresh & healthy fast food • Increase in brand awareness 8 . • Loyal Customers • Less Investments Opportunities • rapid growth in hummus market Threats • Threat of over competition while market expansion • Possibility of failure in attracting trust & interest in new regions. Company relies less on the technology for the sales of its product.Technological factors: Technological factors can affect the manufacturing. The use of technology includes designing of dip covers and boxes. SWOT Analysis: Strengths • High Quality Food • Variety Food Items Weakness • Low brand awareness • High competition • Low cost because it is made locally . packaging and distribution of products. transportation of ingredients and products.

Weighted Score Model 9 .

Hummus bar can attract more customers by behavioral factors and psycho-graphic factors. we can see that Hummus bar will be more successful if it operates in the local/national market. Sometimes product’s packaging also attracts customers. The business will 10 . The low price and high quality of freshness make the hummus bar a strong competitor among its rivals. Due to the busy lifestyle people are not getting proper time for preparation of good food. Media advertising can influence the target market. Hummus food items are loved by both vegan and non-vegan customers. especially female customers. With respect to target market. Hummus bar should use the target market that was obtained through the data collection and market analysis for presenting it to the investors and other retailers.IV. Marketing Plan  Target Marketing & Positioning: The target market of Hummus bar is the customers of age between 18 and 40 and who are looking for healthy quick food and customers who are vegan.

demand. 11 . For entering the international market. cost of product.then promptly spread to nearby regions. availability of channels. low political/trade risks. trade laws. cost of market entry and competitive density. For the international market that would be different and it wise to introduce both vegan and non-vegetarian dishes. In Budapest the meat dishes were both more popular and more profitable than the vegetarian dishes. By doing so hummus bar will be able to target both vegan and non-vegan customers. The entry mode will vary with the market as it depends on the market size. (Prioritizing Target Markets) The best mode of entry to international market for hummus bar would be via franchising. market growth rate. allows simultaneous growth in different regions of the globe and more monetary investment and managerial skills to the firm’s operation. as it has low fee. costs and other factors. Gotlibovitch should prioritize the list of foreign markets according to the market size.

Its hummus is prepared from the ingredients obtained locally. Then can easily sell the food items for a cheaper price because they prepare it locally. This attracts a lot of people. Promotion: Promotion is necessary for expanding the business. 12 . all in favor of the hummus eaters. Moreover the food prepared is really tasty and fresh. especially tourists. Price: Hummus Bar provides fresh and tasty fast food for a cheap price. Thus hummus bar is a great threat for its competitors. Place: The hummus bar is already successful in Budapest. by doing so they can successfully move their business to the local regions. Proper online and offline promotions can lead to increase in brand awareness of the restaurant. The main aim is to create good brand name throughout the whole region. Because of this reason it has got lots of loyal customers. It has got variety of dishes with variety of flavors. now it needs to distribute its food items to new retailers. They need to increase the number of wholesale grocery store clients. Marketing Mix: Product: Hummus bar prepares its food products locally.

Thus hummus bar is a great threat for its competitors. it’s wise for hummus bar to stick with the domestic expansion. Because of this reason it has got lots of loyal customers. In case of international market expansion. Conclusion: From this case study we have reached a conclusion regarding the market expansion and market entry modes for hummus bar.V. Hummus Bar provides fresh and tasty fast food for a cheap price. Then can easily sell the food items for a cheaper price because they prepare it locally. It is clear that the Hummus bar will be more successful. if it operates in the domestic market and will then promptly spread to nearby regions. market growth rate. trade 13 . Hummus bar should sell its products to the local wholesale stores in order to increase the brand awareness. Based on the data and market analysis we found that. Gotlibovitch should prioritize the list of foreign markets according to the market size.

cost of market entry and competitive density. 14 .laws. For international market it is wise for hummus bar to target both vegan and non vegan customers with a variety of foods. The best mode of entry to international market for hummus bar would be via franchising and the entry mode will change with the type of market. cost of product.

(n. (n. A.d.com/marketingsrategies/prioritizing-target-markets/  Sareen.). Retrieved from http://www.com/2013/04/02/interest-invegan-diets-on-the-rise_n_3003221.VI.hummusbar.).paticheri. (n. References  For the love of Hummus. (n.com/2013/08/24/for-thelove-of-hummus/#.hu/ Prioritizing Target Markets. Retrieved from http://www. Retrieved from http://kamraan.au/lifestyle/health/go-part-time-vegan-and-get-healthy/story-fneuzkvr1226683165672   hummusbar. Interest In Vegan Diets On The Rise: Google Trends Notes Public's Increased Curiosity In Veganism .html 15 .news.).Um85llPjV_U  Go part-time vegan and get healthy. Retrieved from http://www.d.d.d.).).d. (n.huffingtonpost.com. Retrieved from http://www.

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