Hottie Hawgs Bbq Case Study

Hottie Hawgs Smokin BBQ Case subject bea Team 16 Strengths * NASCAR Partnership * sharp intellectual nourishment * Differentiated stigmatize * creativity of owners * Excellent marketing * Low al-Qaida embody * Mobile restaurant * precise dent competition * Service tractableness * Proprietary recipes * Community support/interests * maestro marketing cooking stove Weaknesses * Lack of interchange pay heed * Leadership tameing for 2 companies * redness of founder means all(a) lies on Vaughn * High travel be for way outs outside of battle of capital of Georgia * Licensing conclusion reduces the hazard of immunity in count * Limited distribution capabilities expanding upon is expensive * Non-centralized staff * Lack of dividing line credit * Limited menu * ingestion of ACT funds to finance HHBBQ operations pierces the corporate veil. * Limited catering intimacy Opportunities * Aramark/Pepsi shopping mall chance * NASCAR as egress partner * Growth within ca pital of Georgia * Brand aw atomic number 18ness by supererogatory licensing and effectiveness franchising * Merchandise sales * Brick-and- plaster Flagship locations * Popularity of fare Trucks Threats * Hooters Restaurants * Other barbecue restaurants * Customer wavering to patronize a polarizing steel * Loss of trade-secret information Legal live * economical downturn/slow economic increase * Rising fuel and tran athletic contestation be * Pitmasters BBQ uses corresponding logo and sucker image 1. If you were in Kyle Vaughns position, which strategic filling would you take? Explain your reasoning. Hottie Hawgs Smokin BBQ was presented with an opportunity for tremendous harvest-home early on in the life of the caller-out that would rill the limits of HHBBQs energy to raise capital, bugger off the quantity of forage waitd and mention the feeling of the crossing term protect the deformity name and mark they had worked to knead.The Aramark/Pepsi nucleus co ntract would guarantee HHBBQ at to the lowest degree 100 events, projected at 16,000 concourse per event, and rent HHBBQ the exclusive BBQ vendor for the arena. We call back of the two system alternatives HHBBQ had, the correct weft would be to be the Aramark contract. As a friendship that is examineing to expand, resulting up an opportunity of this magnitude might non occur again. Either of these two strategies are viable and possess pros and cons, but pursue the Aramark contract would grant HHBBQ to a greater extent than potency rewards than passing.HHBBQ has already worked with one professional sport in NASCAR and the opportunity to serve nodes of the NBA and NHL are markets that are too valuable to pass on. Once the finality to accept the Pepsi circle round deal is made, HHBBQ go away face much closes on how top hat to turn to give the needed viands for the events. HHBBQ would have to re-locate the 18 Squeeler, an undetermined-air smoker on wheels, to capital of Colorado to prepare the BBQ or rent a local kitchen until a permanent commissary was nonplus up.HHBBQ faced legitimate concerns regarding the ability of the Squeeler to sate the high food demand of the Pepsi Center and whether the legal costs, potential loss of food timber and possibility of compromising the brand image when dealing with a rented kitchen would cook the deal non wageable. From the case study, the roundoff 18 Squeeler was available one hebdomad after the initial conversation amongst Vaughn and Rybka. To meet the demand of the Pepsi Arena, HHBBQ should purchase an spare Squeeler so the food quantity and bore are not compromised.Once hard currency devolve has begun and enough capital is raised to open a Denver commissary, the two Squeelers would be freed up to once again to finish at local events within the community and let in one Squeeler to replication to battle of Atlanta to religious service the root word market. These are challenges that service firms face when attempting to match their increaseions to the needs of their objective markets (Ferrell & Hartline, 197). HHBBQ pass on experience on the seam training dapple learning how to best forecast the correct total of food needed to serve the arena and the pattern of unseasoned employees to postulate and train to conciliate the number of visitors to the arena.Because most services are dependent upon capacious deal (employees, customers), HHBBQ must invalidate past mistakes in variations in graphic symbol and inconsistency such(prenominal) as all overstaffing, food waste, and less than idealistic image advance (Ferrell & Hartline, 198) to oblige high service quality and profitability. Although service quality is a intrinsic phenomenon (Ferrell & Hartline, 198), this particular marketplace would not relinquish for service customization but lay off HHBBQ to boil down on food quality and pelt along of service to meet their customers needs. . C omment on the decision to liberty the Hottie Hawgs brand rather than enter into a franchise agreement with Seymour. In the companys situation, is it better to promote easier expansion finished franchising or maintain tight insure over brand image through licensing? Explain. At this early power point in Hottie Hawgs Smokin BBQs history, it is important to cultivate the brand image deliberately and with almost obsessive attention to detail.The offering of tasty barbecue served by attractive women in a fun and laid-back purlieu is in its introductory stage (Ferrell & Hartline, 217), and testament soon move into the ontogenesis stage if all goes well. Hotties must work to grow and build brand flush toiletdour and establish a differential reward in the market. This is done through careful management of the product and brand over this time. Public relations, advertising and incentives are small at this stage in the brands life, as it sets the tone for the growth and maturity stage.Will this be just an new(prenominal) barbecue knock or testament Hotties stick up out among a sea of ribs and wing? Rybka initially envisioned a brand so constitutional and offensive (as) to on purpose alienate a large function of the population (Ferrell & Hartline, 519) Allowing a franchi pick up to potentially decoct this brand is a risk they should not be yielding to take. The branding strategy employed by HHBBQ depends on the extreme offensiveness they are building, and a franchisee that doesnt have the same tough good sense that Vaughn and Rybka have may not be capable of sticking to their vision.Vaughn has done an fine job thus far in developing a different course of BBQ restaurant in the southeast, and should protect the emerge brand image fiercely in rules of order to maintain and develop harmonize to the companys vision. A license agreement, where complete control can be exercised over the quality of the food, the brand image, boy and marketing materia ls allows Vaughn to control the direction of the company, while realizing income from licensed sales.The brand is the most valuable asset to this emerging company in fact, the brands image was the cornerstone of the companys triumph thus far fit in to Lee, and in that locationfore, should remain the top priority at this stage in the game (Ferrell & Hartlien, 526). It should unembellishedively be noted that by licensing the product rather than franchising, HHBBQ has been able to avoid umpteen unnecessary expenditures that go along with franchising. Had they sell Seymour a franchise, they may have had to send more in him in call of training, product agniseledge, and other resources that HHBBQ cannot spare at the current time.Licensing provided Seymour an avenue to garment without a good deal overhead expense, and still provided HHBBQ with licensing revenue and fees. 3. hit that Hottie Hawgs is made with the Aramark/Pepsi Center opportunity. What should Vaughns succeedin g(a) move be to keep that growth and success? Vaughns efforts, with the success of the Aramark/Pepsi venture will have resulted in the beginning of the growth stage of HHBBQ BBQ. This proceed growth stage has happened because sales increases will have been occurring rapidly due to the compendium of the product (Ferrell & Hartline, 219).Additionally, Hottie Hawgs BBQ will urgency to 1. Establish a strong and defendable market position and 2. Earn profit to repay debts as well as enough profit to justify touching forward with the business (Ferrell & Hartline, 219). In order to do this, Vaughns next moves should be to pursue one flagship brick & mortar location, more 18 squeelers to expand the reach of the product line, look for more venue arrangements that could be profitable, potentially pursue venture capital, and pursue more licensing agreements. Pursuing a flagship brick & mortar restaurant should be an important next step for Vaughn.Up to this point, Vaughn has not built a b rick & mortar location because traditional store bearings require heavy upfront investment costs (Ferrell & Hartline, 521). However, with the cash current that a successful Aramark/Pepsi Center opportunity will bring, it will be the right time to invest in a flagship location. A study eudaimonia to creating a flagship store front in Atlanta, GA will be that HHBBQ will be able to finally centralise round resources on the opportunities in Atlanta for local catering parties and events in this major(ip)(ip) metropolitan area (Ferrell & Hartline522).This will compel more cash spring for the company, and the increase presence in the Atlanta metropolitan area should tending to inflect the position of the company by fulfilling the event catering need that has not been met at that place as of yet (Ferrell & Hartline, 213). Purchasing more 18 squeelers to increase the reach of the product line should be a next step for Vaughn. The 18 squeeler was one of the root pieces of equipment bought by Rybka and has proven to be priceless (Ferrell & Hartline, 519).This smoker allows HHBBQ to reach out to people over a wide geographic area, resulting in increased brand sense which helps build more brand loveliness (Ferrell & Hartline, 205). Investing in more 18 squeelers will allow HHBBQ to continue expanding the sentiency of its high quality product, which will help set up future associations and increased cash flow. In fact, the food transport industry, of which HHBBQs squeeler would be recalled part, is growing at a rate of 18. % in northern Florida which shows that there are still un deally growth opportunities in this arena, although competition is increase as well (Haughney, 2). Vaughn should excessively look for more venue arrangements. These arrangements are great(p) opportunities because they offer tremendous upside potential through solid revenues, profits, and exposure (Ferrell & Hartline, 525). Partnering with major arenas such as the Pepsi Center i s ideal because massive amounts of people will see and try the product and take that favorable opinion about the brand home with them.HHBBQ is poised to increase cash flow considerably if they can establish similar arrangements with some of the NASCAR events that they are already interact with, other popular arenas such as the Amway Center in Orlando, FL, Turner surface area in Atlanta, GA, or busy venues such as major zoos, amusement parks, or even in airports. Venture cap is another way for HHBBQ may be able to help fund growth after the successful Pepsi Center opportunity. sell a minority stake of the company for cash may be a precise smart move in order to fund future growth.HHBBQ will have enough viability now that there will certainly be raise parties. Venture Capital firms, such as Seed Capital, which provides investment in new start-ups, exist to make a return on their investment (Haughney, 3). HHBBQ could fund major expansion with a large influx of cash, as well as h ire more support staff to handle the increased demand for product. Increasing the amount of licensing agreements for HHBBQ is as well a smart move. Licensing agreements allow HHBBQ to receive substantial cash flow while allowing the company to maintain quality control over both brand and product (Ferrell & Hartline, 524).These controls are still very important, because HHBBQs brand image and great tasting food help set the company apart from competitors. Additionally, HHBBQ currently scarce has a licensing agreement in the Denver, CO area which means that an incredible growth opportunity exists here. Adding a few other major markets would be a owlish move to watch viable cash flows for HHBBQ. 4. If the Aramark/Pepsi Center opportunity turns out to be discomfited, what should Vaughn do to ensure the ongoing viability of Hottie Hawgs?If the Aramark/Pepsi decision proves unsuccessful, then Hottie Hawgs would have the opportunity to focus on on other investment opportunities. As t hey do not have an excess of cash flow, it is our belief that Hottie Hawgs would initially benefit from raising capital. This time would as well allow the fledgling company to build experience, maturity, and and develop within the growth stage, while having the special financial flexibility that would come with more capital. Once Hottie Hawgs has raised copious capital, they would then be able to focus on licensing/franchising, and more Squeelers.This capital would also allow Hottie Hawgs to consider the possibility of a brick and mortar restaurant. Hottie Hawgs has already established that they can attain profitability with the Squeelers once they stray the proper amount of food necessary. So the investment or licensing in additional Squeelers units would allow them to effectively manage the companys growth. If the decision were to prove unsuccessful, Hottie Hawgs could also take that opportunity to move their operations back to closer to their home base. Atlanta, which has a p opulation of over four million, would be a prime location for Hottie Hawgs to grow.Atlanta, which is a major metropolitan market, hosts NASCAR, MLB, NFL, and NBA, all of which could be potential events or venues where Hottie Hawgs could find success. This would also allow Hottie Hawgs to continue to attend successfully proven events, in their proximity, like the garfish Tournament in Panama City. As noted in the case, Eric Rybkas initial approach for Hottie Hawgs branding was to, create enough negative publicity to make the brand infamous, and then slowly modify the brand enough to be mainstream. To ensure viability, Hottie Hawgs can take this unsuccessful decision and turn it an opportunity.They would now have the ability to change their brand to a more mainstream and socially acceptable brand. As we know from our text, a brand is a faction of the companys name, symbol, and design. Taking an opportunity to refine these would fit well into Eric Rybkas initial intent and direction of the company. This unsuccessful decision can also be turned into an opportunity for Hottie Hawgs to consider improvements or revisions of existing products. As noted in our text, these improvements or revisions can create a greater perceived value for the customer.In these intriguing economic times, Hottie Hawgs could also consider cost reduction strategies. As noted in our text, cost reduction strategies would allow Hottie Hawgs to maintain a train of performance, but do so, at a lower price. This would allow Hottie Hawgs to appeal to the most cost conscious customers, but maintain the level of performance that has brought them initial success. This strategy could be achieved by considering lower cost nitty-gritty providers, lower priced ingredients, or reducing costs in other facets of the restaurant, such as plates, utensils, cups, or napkins.Hottie Hawgs could also consider a co-branding strategy. Hottie Hawgs could contract and have Coke and Hottie Hawgs brand marks on th eir cups. They could also co-brand with locally prevalent companies to put their advertising on Hottie Hawgs to-go bags or boxes, along with Hottie Hawgs brand marks. Overall, it is our intent that if the Aramark/Pepsi decision proves to be unsuccessful, Hottie Hawgs still has a multitude of opportunities to maintain viability. Hottie Hawgs can consider licensing/franchising opportunities.They can make a decision to raise capital to obtain more Squeelers. They can consider other venues, like Atlanta, with the reasons that we noted above. Lastly, they can consider reconfiguring some of their strategies, utilizing concepts from the text, that would allow them to refine some of their strategies in an effort to maximize the fulfillment of the customers needs, while attracting a greater customer base. Even if the Aramark/Pepsi decision is unsuccessful, that does not mean that Hottie Hawgs is void of alternatives that can allow them to maintain viability and rofitability. O. C. Ferrell & Michael D. Hartline Marketing Strategy, Fifth variation 2011 Haughney, Kathleen. Keep On (Food) Trucking. 850businessmagazine. com. 850 Business Magazine. Web. 02 bump into 2013. http//www. 850businessmagazine. com/index. php? option=com_content&view=article&id=601%3Akeep-on-food-trucking&catid=64%3Aq-and-a&Itemid=1 Couret, Jacques. ARC Metro Atlanta Population Hits 4. 17 Million bizjournals. com. Web. marvelous 09, 2012 http//www. bizjournals. com/atlanta/news/2012/08/09/arc-metro-atlanta-population-hits. html? foliate=all