Shake Shack Marketing Report

MKTG 5007 OLB - Major Group Assignment Report

Marketing Plan for Laun!ing

"n Toronto# $ana%a

Report Prepared By: &arman%eep 'ing! ( Param)eer 'ing! ( *e)am &irpara ( +arn +arnika ika Ko!ar ( 'a)neet 'ing! ( $!an%ni Patel ,0.//1 ( ,0.1.7 ( ,025/17 ( ,073 ( ,0.2/22 ( ,01215

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Ta4le of $ontents Executive Summary................................................................................................3 Overview of the Company................................ Company.................................................... ....................................................... ................................... 4 ar!et Overview.................................... Overview........................................................ ........................................................... ....................................... ...... " Situation #na$y%i%................................. #na$y%i%..................................................... ........................................ ............................................. ......................... 11 Product O&erin'............................................ O&erin'................................................................ ............................................... ........................... ......... 13 Channe$ Strate'y................................ Strate'y.................................................... ........................................ ........................................ ........................... ....... 1( ar!etin' O)*ective.............................. O)*ective.................................................. ....................................................... ................................... ......... 1+ ar!etin' Strate'y............................... Strate'y.................................................. ....................................... .............................................. .......................... 1+ i%%ion Statement................................. Statement..................................................... ....................................... ............................................ ......................... ,1 ar!etin' ix.................................. ix..................................................... ....................................... ................................................... ............................... ,3 Communication% ix.................................... ix........................................................ ......................................................... ..................................... ,4 Sa$e% Promotion%........................ Promotion%............................................ ....................................... ....................................... ................................. ................ ... ,( -inancia$ #na$y%i%................................... #na$y%i%....................................................... .............................................................. .......................................... . ," Reference%................... Reference%....................................... ....................................... ....................................... ........................................ ............................. ......... ,+

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Ta4le of $ontents Executive Summary................................................................................................3 Overview of the Company................................ Company.................................................... ....................................................... ................................... 4 ar!et Overview.................................... Overview........................................................ ........................................................... ....................................... ...... " Situation #na$y%i%................................. #na$y%i%..................................................... ........................................ ............................................. ......................... 11 Product O&erin'............................................ O&erin'................................................................ ............................................... ........................... ......... 13 Channe$ Strate'y................................ Strate'y.................................................... ........................................ ........................................ ........................... ....... 1( ar!etin' O)*ective.............................. O)*ective.................................................. ....................................................... ................................... ......... 1+ ar!etin' Strate'y............................... Strate'y.................................................. ....................................... .............................................. .......................... 1+ i%%ion Statement................................. Statement..................................................... ....................................... ............................................ ......................... ,1 ar!etin' ix.................................. ix..................................................... ....................................... ................................................... ............................... ,3 Communication% ix.................................... ix........................................................ ......................................................... ..................................... ,4 Sa$e% Promotion%........................ Promotion%............................................ ....................................... ....................................... ................................. ................ ... ,( -inancia$ #na$y%i%................................... #na$y%i%....................................................... .............................................................. .......................................... . ," Reference%................... Reference%....................................... ....................................... ....................................... ........................................ ............................. ......... ,+

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6euti)e 'ummar  hi% report report hi'h$i'ht% hi'h$i'ht% how the o)*ective o)*ective of enterin' enterin' Canada Canada i% 'oin' 'oin' to )e a )ene/cia$ %tep for Sha!e Shac! 0nc. and how they can $evera'e upon their identity and o&erin'% to capture a %iea)$e part of the Canadian mar!et e%pecia$$y in the cate'ory of fat% ca%ua$.  he report report draw% attention attention toward% toward% the current current %cenario in the fa%t food food mar!et in Canada and how the ma*or competitor% for Sha!e Shac! are performin' in the %en%e of the mar!et %hare each of them ac2uire.  he report report a$%o throw% throw% $i'ht on on what %trate'ie% %trate'ie% Sha!e Sha!e Shac! can can adopt to emer'e a% a ma*or p$ayer in the mar!et and to pre%ent it%e$f to the tar'et mar!et a% we$$ a% the potentia$ tar'et%. 0n the $i'ht of a)ove mentioned the critica$ %ucce%% factor for Sha!e Shac! 0nc. in the Canadian mar!et wou$d )e to $evera'e on the product $ine it ha% to o&er a% it di&erentiate% them from the competitor% in a %i'ni/cant way. -urthermore the )u%ine%% conduct and the ethica$ procedure% fo$$owed )y the company 'ive% them a hu'e advanta'e vi%5vi% how they can immediate$y ma!e p$ace in the heart% of the Canadian con%umer%.  he propo%ed propo%ed imp$ementatio imp$ementation n i% to expand expand in the Canadian mar!e mar!ett )y openin' a %tore in the heart of downtown oronto a% it ha% hi'h popu$ation den%ity ma!in' it ea%ier for the )rand to penetrate the mar!et.

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O)er)ie8 of t!e $ompan A4out '!ake '!ak Sha!e Shac! i% a popu$ar #merican fa%t ca%ua$ re%taurant chain which i% )a%ed in 6ew 7or! City. 0t wa% founded )y 8anny eyer Chief Executive O9cer of the nion S2uare ;o%pita$ity .

&istor 0t a$$ )e'an in ,??? when 6ew 7or! City )e'an the proce%% of re)ui$din' of  adi%on S2uare Par!. 8anny eyer wa% invo$ved in the creation of the adi%on S2uare Par! Con%ervancy to redeve$op it. he /r%t pro*ect which the redeve$oped con%ervancy did wa% to ho%t an art exhi)it. o cater to the vi%itor% of the art exhi)it 8anny %et up a hot do' cart which wa% operated out of the !itchen of one of 8annyD% nion S2uare ;o%pita$ity in ,?1(. c8ona$dF% recoded the %econd hi'he%t %a$e% in term% of C#8 i$$ion in Canada in ,?1(. 0t% %a$e% were a$mo%t ha$f of the $eader im ;orton% with %a$e% of 3",M.1? =C#8 i$$ion>. hi% %how% u% the hu'e $ead im ;orton% en*oy% when it come% to %a$e% in Canada. Report% %u''e%t that Canadian% %pent a$mo%t K3+K.1 =C#8 i$$ion> in ,?1( on Bur'er fa%t food chain% in Canada. 1?"4.? =C#8 i$$ion> wa% a$%o %pent the %ame year on independent )ur'er fa%t food *oint% in Canada

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$urrent Market '!are of 9ast 9oo% $!ains in $ana%a '= ,o  /  3 5 2 7 1

Bran%

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Tim &ortons M*onal %>s 'u48a A?@ K9$ @en%>s Burger King &ar)e>s

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2=/0 =.0 =0 -

2=0 =10 /=10 /=50 -

2=30 =.0 /=10 /=50 -

2=20 3=00 /=70 /=30 -

2=10 3=0 /=20 /=30 =30

2=10 3=30 /=20 /=0 =30

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$ana%a $urrent Market '!are of 9ast 9oo% $!ains in $ana%a A"n PerentageB 3? ,( ,? 1( 1? ( ?

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A sample menu from t!e Ma%ison 'Euare Park ,e8

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Shac! Sa$e% increa%ed 3K.3I to T"4.4 i$$ion =S>

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-rom the report of the pa%t %a$e% we can o)%erve a dec$ine in the tota$ revenue the rea%on )ehind the dec$ine i% the $ar'e amount of Sha!e Shac! %hare% which were avai$a)$e in the mar!et a% a part of it% %econdary o&erin'. Sha!e Shac! founder and CEO 8anny eyer wa% expected to reduced hi% $ot of 1.3 i$$ion %hare% to 3???? %hare% a$%o No% #n'e$e% )a%ed Private E2uity -irm Neonard . 3hy Sha0e Shac0 3i22 4e1er 5e McDona2d6s . Retrieved from http:JJfortune.comJ: http:JJfortune.comJ,?1(J?(J14J%ha!e%hac!mcdona$d%J @ramer @. =,?1? octo)er 1(>. Sha0e Shac0 7ounder 89pands .is 8mpire . Retrieved from cn)c.com: http:JJwww.cn)c.comJidJ3+"M+,33 NG #. =,?1( *une ,,>. Sha0e Shac06s +iggest ad1antage has nothing to do /ith the food. Retrieved from )u%ine%%in%ider.com: http:JJwww.)u%ine%%in%ider.comJ%ha!e%hac!%cu%tomer%ervicepo$icy,?1(" i$)er'% . S. =,?1( #7 ,,>. Sha0e Shac06s supp2y chain guru on sourcing +etter +urgers. Retrieved from 'reen)i.com: http%:JJwww.'reen)i.comJartic$eJ%ha!e%hac!%%upp$ychain'uru%ourcin' )etter)ur'er% S.;8 S.C; . =,?1">. Retrieved from www.%ha!e%hac!.com: http%:JJwww.%ha!e%hac!.comJfoodanddrin!

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