a) Has the New Zealand fast food market been recession proof?
It has up to a point as it is largely self sufficient. The New Zealand economy is one which is centred on services and high tech industry so it was barely affected by the international recession. The food market is thus very well protected and was intrinsically unaffected by world event.
b) What are the keys to success for Five Guys? Does this apply to other industries?
Five Guys rely on word of mouth tactics in their advertising which is quite minimal to say the least. They use celebrity visits to boost their image as well as simplistic food menus and decor which burden them with minimal cost and thus give them an advantage over competition.
c) How would you react to Five Guys if you were McDonald’s?
I would continue to make an emphasis on the product and that McDonalds ahs a far better reputation in the fast food market than other competitors. Agressive marketing campaigns can also help and a direct drive to the heart of Five Guys territory is also important to assess the future of the brand’s competitive edge.
d) How do the figures in this case assist you as a marketing manager?
The figures are obviously important as they demonstrate the customer’s propensity to eat out less due to the recession. This enables the marketing manager to assess the strong points of the product and how these can be demosntrated as attarctive for those who are on a tight budget but still want to eat out.
e) What do you think of the proposition of “no marketing”?
As demonstrated in the Five Guys case, no marketing can work quite well if you rely on word of mouth and come up with innovative strategies on how to attract customers. The long term success of this strategy is debatable however as even if something goes wrong, reaction in the press is important as the media is hugely powerful and can wreck a product or brand name overnight.