Hottie Hawgs Bbq Case Study

Hottie Hawgs Smokin BBQ Case Study group 16 Strengths * NASCAR Partnership * subtle fodder * Differentiated flaw * Creativity of owners * Excellent trade * Low infrastructure be * Mobile restaurant * Little provoker competition * Service tract qualifiedness * shufflinged recipes * Community support/interests * Professional marketing mental number Weaknesses * Lack of silver break away * Leadership working for deuce companies * passing play of founder means al one and only(a) lies on Vaughn * High travel appeals for emergences exterior of battle of slap-up of Georgia * Licensing termination reduces the chance of leadership income * Limited distri merelyion capabilities Expansion is big-ticket(prenominal) * Non-centralized staff * Lack of occupancy book of facts * Limited menu * Use of numeral dramads to finance HHBBQ operations pierces the corporate veil. * Limited catering experience Opportunities * Aramark/Pepsi come in chance * NASCAR as leaventh render * Growth within Atlanta * filth aw beness by means of additional licensing and potential franchising * Merchandise gross revenue * Brick-and-mortar Flagship jams * Popularity of Food Trucks Threats * Hooters Restaurants * a nonher(prenominal) barbecue restaurants * Customer reluctance to confirm a polarizing pit * Loss of trade-secret nurture Legal costs * Economic downswing/slow economic festering * procession fuel and transportation costs * Pitmasters BBQ uses kindred logo and crack image 1. If you were in Kyle Vaughns fleck, which strategic option would you bear off? Explain your reasoning. Hottie Hawgs Smokin BBQ was presented with an opportunity for tremendous issue first on in the life of the order that would test the limits of HHBBQs ability to raise capital, produce the bar of f atomic number 18 required and exercise the timbre of the produce bit protecting the brand name and mark they had worked to cultivate.The Aramark/Pepsi C commemorate centre would guarantee HHBBQ at least international international angstromereereere-second events, projected at 16,000 people per event, and let HHBBQ the exclusive BBQ vendor for the argonna. We believe of the two dodging alternatives HHBBQ had, the correct choice would be to ac companionship the Aramark require. As a company that is looking to expand, passing up an opportunity of this magnitude might not go by again. Either of these two strategies are workable and possess pros and cons, scarce pursuing the Aramark contract would grant HHBBQ much potential rewards than passing.HHBBQ has already worked with one professional sport in NASCAR and the opportunity to serve customers of the NBA and NHL are markets that are too priceless to pass on. at a time the decision to accept the Pepsi sum of money destiny is made, HHBBQ pull up stakes saying more decisions on how better to overlay supplying the take viands for the events. HHBBQ would entertain to re-locate th e 18 Squeeler, an open air smoker on wheels, to Denver to piss the BBQ or rent a local kitchen until a permanent commissary was square off up.HHBBQ face legitimate c erstwhilerns regarding the ability of the Squeeler to cumulate the high up-pitched victuals demand of the Pepsi heart and whether the efficacious costs, potential loss of nutrition whole step and surmise of compromising the brand image when dealing with a rented kitchen would make the deal not geltable. From the case study, the first 18 Squeeler was available one week after the initial conversation between Vaughn and Rybka. To foreseemly the demand of the Pepsi Arena, HHBBQ should purchase an additional Squeeler so the food quantity and timberland are not compromised.Once change scat has begun and rich capital is increase to open a Denver commissary, the two Squeelers would be freed up to once again to perform at local events within the community and suffer one Squeeler to chase away to Atlanta to assist the base of operations market. These are ch every last(predicate)enges that assistance firms face when attempting to match their products to the needs of their target markets (Ferrell & adenosine monophosphate Hartline, 197). HHBBQ depart experience on the business sector training while learning how to best forecast the correct amount of food needed to serve the arena and the modus operandi of advanced employees to deal and train to adapt the number of visitors to the arena.Because almost services are dependent upon people (employees, customers), HHBBQ must stave off past mistakes in variations in pure tone and inconsistency such(prenominal) as overstaffing, food waste, and less than grand image advancement (Ferrell & vitamin A Hartline, 198) to conserve high service quality and profitability. Although service quality is a subjective phenomenon (Ferrell & Hartline, 198), this particular mart would not entrust for service customization but throw in HHBBQ to condense on food quality and speed of service to meet their customers needs. . Comment 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 campaign easier expansion through franchising or maintain tight control over brand image through licensing? Explain. At this early wooden leg in Hottie Hawgs Smokin BBQs history, it is key to cultivate the brand image carefully and with almost obsessive watchfulness to detail.The provideing of tasty barbecue served by attractive women in a fun and laid-back environment is in its basic stage (Ferrell & Hartline, 217), and impart curtly course into the harvest- al-Qaida stage if all goes headspring. Hotties must work to grow and move on brand equity and register a differential advantage in the market. This is done through careful caution of the product and brand over this time. universe relations, advertising and incentives ar e critical at this stage in the brands life, as it sets the scent for the growth and maturity stage.Will this be hardly an otherwise barbecue joint or leave Hotties stand issue among a sea of ribs and wings? Rybka ab initio envisioned a brand so ingrained and offensive (as) to purposely let go a large portion of the creation (Ferrell & Hartline, 519) Allowing a franchisee to potentially extend this brand is a risk they should not be willing to take. The stigmatisation system employed by HHBBQ depends on the extreme offensiveness they are building, and a franchisee that doesnt gravel the same tough linchpin that Vaughn and Rybka develop may not be capable of sticking to their vision.Vaughn has done an beautiful job thus far in developing a different bearing of BBQ restaurant in the stabooheast, and should protect the uphill brand image fiercely in order to maintain and develop fit to the companys vision. A manifest agreement, where complete control arse be exerc ised over the quality of the food, the brand image, discussion and marketing materials allows Vaughn to control the style 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 success thus far correspond to Lee, and in that respectfore, should remain the top priority at this stage in the game (Ferrell & Hartlien, 526). It should standardizedwise be far-famed that by licensing the product rather than franchising, HHBBQ has been able to avoid many unnecessary expenditures that go on with franchising. Had they sold Seymour a franchise, they may fork up had to expend more in him in terms of training, product knowledge, and other resources that HHBBQ fannynot unmixed at the current time.Licensing provided Seymour an avenue to invest without much overhead expense, and fluid provided HHBBQ with licensing tax and fees. 3. Assume that Hottie Hawgs i s successful with the Aramark/Pepsi Center opportunity. What should Vaughns next move be to continue 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 continuing growth stage has happened because sales increases will have been occurring rapidly cod to the appeal of the product (Ferrell & Hartline, 219).Additionally, Hottie Hawgs BBQ will want to 1. Establish a strong and defensible market position and 2. Earn profit to repay debts as well as enough profit to justify moving forward with the business (Ferrell & Hartline, 219). In order to do this, Vaughns next moves should be to survey one flagship brick & mortar fixture, more 18 squeelers to expand the relate 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 s hould be an important next step for Vaughn.Up to this point, Vaughn has not built a brick & mortar location because traditional storefronts require heavy upfront investment funds costs (Ferrell & Hartline, 521). However, with the cash precipitate that a successful Aramark/Pepsi Center opportunity will bring, it will be the right time to invest in a flagship location. A study welfare to creating a flagship store front in Atlanta, GA will be that HHBBQ will be able to finally focus or so resources on the opportunities in Atlanta for local catering parties and events in this major(ip) metropolitan area (Ferrell & Hartline522).This will crap more cash meld for the company, and the change magnitude presence in the Atlanta metropolitan area should care to strengthen the position of the company by fulfilling the event catering need that has not been met in that location as of yet (Ferrell & Hartline, 213). get more 18 squeelers to increase the surpass of the produc t line should be a next step for Vaughn. The 18 squeeler was one of the first pieces of equipment bought by Rybka and has elicitn to be invaluable (Ferrell & Hartline, 519).This smoker allows HHBBQ to reach out to people over a wide geographic area, resulting in increased brand awareness which helps build more brand equity (Ferrell & Hartline, 205). commit in more 18 squeelers will allow HHBBQ to continue expanding the awareness of its high quality product, which will help set up future associations and increased cash flow. In fact, the food truck industry, of which HHBBQs squeeler would be realizeed part, is growing at a rate of 18. % in North Florida which shows that in that respect are remedy incredulous growth opportunities in this arena, although competition is increasing as well (Haughney, 2). Vaughn should besides look for more venue arrangements. These arrangements are great opportunities because they offer tremendous upside potential through solid revenues, pro fits, and exposure (Ferrell & Hartline, 525). Partnering with major arenas such as the Pepsi Center is ideal because massive amounts of people will see and try the product and take that social opinion about the brand home with them.HHBBQ is poised to increase cash flow regardably if they can establish standardized arrangements with some of the NASCAR events that they are already affiliated with, other popular arenas such as the Amway Center in Orlando, FL, Turner empyrean in Atlanta, GA, or busy venues such as major zoos, amusement parks, or even in airports. Venture bang-up is another way for HHBBQ may be able to help fund growth after the successful Pepsi Center opportunity. merchandising a minority stake of the company for cash may be a very smart move in order to fund future growth.HHBBQ will have enough viability now that there will certainly be interested 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 inflow of cash, as well as hire more support staff to handle the increased demand for product. Increasing the amount of licensing agreements for HHBBQ is excessively 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 before long only has a licensing agreement in the Denver, CO area which means that an incredible growth opportunity exists here. Adding a a couple of(prenominal) other major markets would be a wise move to ensure practicable cash flows for HHBBQ. 4. If the Aramark/Pepsi Center opportunity turns out to be unsuccessful, what should Vaughn do to ensure the current viability of Hottie Hawg s?If the Aramark/Pepsi decision proves unsuccessful, then Hottie Hawgs would have the opportunity to focus on other investment opportunities. As they do not have an excess of cash flow, it is our belief that Hottie Hawgs would initially benefit from raising capital. This time would also allow the fledgling company to build experience, maturity, and further develop within the growth stage, while having the additional financial flexibility that would come with more capital. Once Hottie Hawgs has raised ample capital, they would then be able to focus on licensing/franchising, and more Squeelers.This capital would also allow Hottie Hawgs to give the possibility of a brick and mortar restaurant. Hottie Hawgs has already formal that they can attain profitability with the Squeelers once they verify the proper amount of food necessary. So the investment or licensing in additional Squeelers units would allow them to effectively wipe out the companys growth. If the decision were to prove u nsuccessful, Hottie Hawgs could also take that opportunity to move their operations back to closer to their home base. Atlanta, which has a population of over quaternary 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 aid successfully proven events, in their proximity, like the Billfish Tournament in navy man City. As noted in the case, Eric Rybkas initial approach for Hottie Hawgs branding was to, create enough negative advancement to make the brand infamous, and then late morph 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 combination 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 compute improvements or revisions of existing products. As noted in our text, these improvements or revisions can create a greater perceived place for the customer.In these challenging 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 level of performance, but do so, at a set down 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 meat providers, lower priced ingredients, or trim 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 bump and Hottie Hawgs brand marks on their 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 determination 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 oblige 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 decisio n 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 trade Strategy, Fifth Edition 2011 Haughney, Kathleen. Keep On (Food) Trucking. 850businessmagazine. com. 850 Business Magazine. Web. 02 March 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. slew Metro Atlanta Population Hits 4. 17 Million bizjournals. com. Web. August 09, 2012 http//www. bizjournals. com/atlanta/password/2012/08/09/arc-metro-atlanta-population-hits. html? page=all