Hummus Bar: Dipping into International Markets

Submitted By: Group #8

Hari Padmakumar

Jijo Francis

Navtej Singh Sran

Submitted on 29th October 2013

INDEX:

I. Introduction…………………………………………………………...…. 2

II. Market Research……………………………………………………….. 3

III. Market Analysis……………………….………………………………… 6

IV. Marketing Plan………………………………………………………….. 10

V. Conclusion………………………………………………………………… 13

VI. Bibliography………………………………………………………………. 15

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I. Introduction

This case study is based on a successful Hummus bar located in Hungary, which is

planning to enter the international market. The founder of the restaurant is thus

seeking investors in order to lower the risks, select the right marketing strategies

and to enhance the brand. The case study will include all the different methods

used to determine the right market, determining the right market entry, brand

management and developing decision making skills.

About the Company:

Hummus bar is a really successful Middle Eastern

Restaurant in Hungary which was setup 7 years

ago by Gotlibovitch. It has already got seven

restaurants and it’s turning out into a successful

chain in Hungary. As the name suggests, this

place is completely dedicated to Hummus which

can be enjoyed with several types of dishes. They offer different kinds of salads,

soups and vegan and meat dishes. The restaurant focuses on the creating simple

and good quality food. It has been recognized and awarded for being the best

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exotic cheap eatery by the Time out magazine. Hummus bar have also got take

out and delivery service. The restaurant has got huge reputation among the locals

and is really active on social media websites in order to promote their services.

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. The restaurant

is really clean and the price for a meal is just 8-10 euros for a customer. They have

loyal customers due to all this factors. (hummusbar)

II. Market Research

In order to find the people’s growing interest in

hummus, we went to several restaurants and grocery

stores (Ghazale Restaurant, Jerusalem Restaurant, Sababa, Fiesta farms, Rowe

farms and Kalendar) in order to obtain the buying habits and other data’s of the

customers. We had face-to-face interview with 50 customers, from which about

65% percent were females and the rest (35%) were male customers. Our

participants were mostly people of age between 18 and 45. About 92 percent of

the participants liked hummus and from which about 83% bought packed

hummus and hummus related products. From our research we found out that

there is a market for Hummus and hummus related dishes. Most of the customers

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like

hummus because it’s tasty, healthy and available in different flavors.

III. Market Analysis

4

yes no0

10

20

30

40

50

60

70

80

90 83%

17%

customers who regularly buy hummus products

customers

Like Hummus

92%

Doesn't like Hummus8%

Customers

Like HummusDoesn't like Hummus

male, 35

female; 65

Gender

malefemale

Hummus was an Arabian dish introduced among the Jewish people in the early

1950s. The major ingredients of hummus are chickpeas, sesame, lemon and garlic.

Majority of the best hummus restaurants are owned by the Arabs. Even though

the market for hummus and hummus related food items are in its beginning

stage, it is growing rapidly by each day in North America and in many other

countries. Nowadays there is a tremendous increase in the number of hummus

dedicated restaurants and hummus products. The competition is getting bigger as

more people have started using it. In America the hummus accounts for average

weekly sales of $600 for each store and the market for dips are increasing at 14%.

(For the love of Hummus)More companies have started creating their own

hummus and selling it, both locally and internationally. Some of the examples of

packaged hummus that are available in stores are Fontaine Santé Hummus,

Summer Fresh Hummus, Sabra Classic Hummus, 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. This is

proven by the results of latest surveys done by Google and other marketing

research teams. (Sareen) , (Go part-time vegan and get healthy)

PEST Analysis:

The different factors that affect the industry include competitive, regulatory,

economic, socio-cultural, technological, natural environment and demographics

factors. The marketing strategy of the company changes along with these

environmental factors.

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Political/Regulatory factors: The political/regulatory factors can affect the price

and the sales of the food products. The price of product varies in different regions

depending upon taxes, trade restrictions and other laws.

Economic factors: Hummus bar is a local establishment hence its competition will

increase when it enters the international market. Hummus bar is famous for its

cheap price which is due to local production. The price of food products will

increase when it enters the international market due to changes in economic

growth, exchange rates, price of ingredients, transportation, inflation, etc.

Socio-cultural factors: Consumers choose their food by several factors like

income, product price, promotions and preferences. A product chosen also

depends up on age, race, education and ethnicity. The social and cultural factors

affect the consumers need, as well as the size and nature of the market. The

socio-cultural factor doesn’t affect the usage of hummus food products because

of its quality. Hummus is already popular among people from all over the world

because it is healthy and cheap. Both vegans and non-vegans love hummus

products.

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Technological factors: Technological factors can affect the manufacturing,

packaging and distribution of products. Company relies less on the technology for

the sales of its product. The use of technology includes designing of dip covers

and boxes, improving the scale of production, transportation of ingredients and

products.

SWOT Analysis:

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Strengths

High Quality Food

Variety Food Items

Low cost because it is made locally .

Loyal Customers

Weakness

Low brand awareness

High competition

Less Investments

Opportunities

rapid growth in hummus market

fresh & healthy fast food

Increase in brand awareness

Threats

Threat of over competition while market expansion

Possibility of failure in attracting trust & interest in new regions.

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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. Due to the

busy lifestyle people are not getting proper time for preparation of good food.

Hummus food items are loved by both vegan and non-vegan customers. The low

price and high quality of freshness make the hummus bar a strong competitor

among its rivals. Media advertising can influence the target market. Hummus bar

can attract more customers by behavioral factors and psycho-graphic factors.

Sometimes product’s packaging also attracts customers, especially female

customers. 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. With respect to target market, we can see that Hummus bar will

be more successful if it operates in the local/national market. The business will

then promptly spread to nearby regions. For entering the international market,

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Gotlibovitch should prioritize the list of foreign markets according to the market

size, market growth rate, trade laws, cost of product, availability of channels, cost

of market entry and competitive density. (Prioritizing Target Markets) The best

mode of entry to international market for hummus bar would be via franchising;

as it has low fee, low political/trade risks, allows simultaneous growth in different

regions of the globe and more monetary investment and managerial skills to the

firm’s operation. The entry mode will vary with the market as it depends on the

market size, demand, costs and other factors. In Budapest the meat dishes were

both more popular and more profitable than the vegetarian dishes. For the

international market that would be different and it wise to introduce both vegan

and non-vegetarian dishes. By doing so hummus bar will be able to target both

vegan and non-vegan customers.

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Marketing Mix:

Product: Hummus bar prepares its food

products locally. Its hummus is prepared from

the ingredients obtained locally. It has got

variety of dishes with variety of flavors, all in

favor of the hummus eaters. Moreover the food prepared is really tasty and fresh.

This attracts a lot of people, especially tourists.

Price: Hummus Bar provides fresh and tasty fast food for a cheap price. Because

of this reason it has got lots of loyal customers. Then can easily sell the food items

for a cheaper price because they prepare it locally. Thus hummus bar is a great

threat for its competitors.

Place: The hummus bar is already successful in Budapest, now it needs to

distribute its food items to new retailers. They need to increase the number of

wholesale grocery store clients; by doing so they can successfully move their

business to the local regions.

Promotion: Promotion is necessary for expanding the business. The main aim is to

create good brand name throughout the whole region. Proper online and offline

promotions can lead to increase in brand awareness of the restaurant.

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V. Conclusion:

From this case study we have reached a conclusion regarding the market

expansion and market entry modes for hummus bar. Based on the data and

market analysis we found that, it’s wise for hummus bar to stick with the

domestic expansion. Hummus Bar provides fresh and tasty fast food for a cheap

price. Because of this reason it has got lots of loyal customers. Then can easily sell

the food items for a cheaper price because they prepare it locally. Thus hummus

bar is a great threat for its competitors. Hummus bar should sell its products to

the local wholesale stores in order to increase the brand

awareness. 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. In case of

international market expansion, Gotlibovitch should

prioritize the list of foreign markets according to the market size, market growth

rate, trade laws, cost of product, cost of market entry and competitive density.

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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. For

international market it is wise for hummus bar to target both vegan and non

vegan customers with a variety of foods.

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VI. References

For the love of Hummus. (n.d.). Retrieved from http://www.paticheri.com/2013/08/24/for-the-

love-of-hummus/#.Um85llPjV_U

Go part-time vegan and get healthy. (n.d.). Retrieved from

http://www.news.com.au/lifestyle/health/go-part-time-vegan-and-get-healthy/story-fneuzkvr-

1226683165672

hummusbar. (n.d.). Retrieved from http://www.hummusbar.hu/

Prioritizing Target Markets. (n.d.). Retrieved from

http://kamraan.com/marketing-srategies/prioritizing-target-markets/

Sareen, A. (n.d.). Interest In Vegan Diets On The Rise: Google Trends Notes Public's Increased

Curiosity In Veganism . Retrieved from http://www.huffingtonpost.com/2013/04/02/interest-in-

vegan-diets-on-the-rise_n_3003221.html

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