Marketing str for import American Hot dog into UK Essay

Marketing str for import American Hot dog into UK - Essay Example The business has been recommended to follow cost leadership strategy in order to implement the growth strategy of market extension. Finally a proper marketing mix has been suggested to the company in order to achieve competitive advantage in UK fast food industry. Introduction The project deals with the introduction of the American Hot Dog Cart in the United Kingdom. It will also reflect the plans for implementing the strategies, promoting the products in the new market and driving the sales. The American hot dog carts provide quality hot dogs in the most reasonable prices. The carts are good quality gastronomic equipments designed in the best way to attract and serve the customers with best hot dogs. These light weight carts are easy to be moved from one place to another and facilitate serving multiple locations in a short period of time. These carts supply food to a large number of people every day. The high demand of hot dog in America drives this business due to the attractive pr ice offerings. Porter’s Five Forces Analysis United Kingdom is the country having the highest consumption of fast food in the world. The country possesses different cultures which has a huge impact on the success of the fast food industry there. Porter’s five forces analysis will help to analyse the structure of this industry. (Source: Larsen, 2009) Bargaining power of buyers There is a popularity of hot dog among maximum consumers in the country. There are many companies offering hot dog in the fast food industry. These companies make huge investments for the promotion of their brands. The availability of this product by a large number of companies has strengthened the bargaining power of the buyers. The buying power is also strengthened because of the insignificant switching costs. Thus the bargaining power of the buyers is high. Bargaining power of suppliers The supplier of a business is an important element of its ability (Ahlstorm and Bruton, 2009). An important i nput required in the fast food industry is the supply of food. The food supply market in UK is concentrated. The suppliers of raw meat, farmers etc. are the main suppliers in this industry. These suppliers have reduced their dependency on the fast food companies because of the availability of other kinds of profit seeking food service customers. It is very significant for the fast food companies offering hot dogs to maintain their existing suppliers as they offer good quality marketable food at low cost. This increases the supplier power in UK market. Thus the bargaining power of suppliers is very high. Threat of new entrants The legal framework in the UK provides barrier to the new entry to some extent. However, this kind of barrier to the new entrants is limited to a particular extent. It becomes very difficult for a new entrant to make profit in the fast food industry and perform well initially because of low consumer loyalty and the barriers to the entry in the industry. The cos t related to the setting up of a new chain the market is low and in the recent years there have been many new entrants. This is a serious threat to the existing players in the industry. Thus the threat of new entrant is high. Threat of substitutes The substitutes of fast food products like hot