PESTEL Analysis Of Singapore: Understanding Factors Affecting Burger Hut.

For understanding the various factor of the country, following is the PESTEL analysis of Singapore.

Political Factors

There are several changes in the laws and the regulations of the nation which impacts the food industry and the companies. There can be regulations on various aspects such bas labour, food administration, taxation and health. From the political perspective, Singapore is considered as a bureaucratic nation. The political power is in the hands of the Government of Singapore. There are no suggestions invited from the masses rather the decisions are just communicated to them (Chong, 2012). In Singapore, there exists both democracy as well as bureaucracy. As the Burger Hut is a domestic restaurant and fast food chain thus it can sustain the various changes in the regulations which take place in the nation. The organisation can manage its operations and can also have smooth functioning in Singapore by following all the rules and regulations.

Economic Factors

The economy of Singapore is considered as one of the most open and stable economy. There are no issues like foreign debt and the revenue of the Government is also very high. The economy of Singapore is rapidly growing and developing. The food and beverages industry of Singapore is highly lucrative which offers several opportunities to entrepreneurs to develop and grow their business chains. Being a tourist place, there is high demand of food chains that can offer variety of foods which are delicious as well as healkthy (Vrontis and Pavlou, 2008).  The GDP of the people is also high that offers high purchasing power to the consumers. 

Social Factors

There is superior quality of life in Singapore. It offers several business opportunities to the people. The socio-cultural factors fetch the attention of the MNCs as well as the foreign investments. Because of high demand for food and beverages, it is easy for any business to develop and expand in Singapore (Ghuman, 2010).

Technological Factors

Singapore is recognized as one of the most technologically developed countries. The technological factor will assist faster production and distribution of the products. These factors will also help in successful marketing of the products. Advantages of technology can also be incorporated in inventory management, supply chain and vendor management (Armstrong and Cunningham, 2012).

Economic Factors

Legal Factors

Singapore is recognized for its various governing laws as well as numerous legal formalities which are required to be followed by the businesses performing in Singapore. There are various laws in regards with property, wages, labour, business operations, etc. Burger Hut is required to undertake the business operations following all these regulations (Ching, 2012).

Environmental Factors

The environmental ministry as well as the anti-pollution authorities are extremely strict in regards with maintaining the environment sustainability. The businesses are required to have operations with minimum about of emissions of harmful gasses as well as they are required to have utmost environmental sustainability in their business operations (Ibrahim, n.d.).

Strengths

• Recognized domestic fast food chain
• High customer base
• Number of varieties of food and beverages
• Newly introduced healthy and nutritious food products

Weaknesses

• Strong market competition
• People are moving towards a healthier lifestyle and the rate of consumers is decreasing consuming fast food products.

Opportunities

• To expand the menu by introducing more number of healthy and nutritious products
• To expand globally in various overseas nations

Threats

• Intense market competition from direct as well as indirect competitors
• High laws and regulations related to food security and licensing
• Environmental hazards (Solomon, 2014)

The primary objective of the marketing communication plan is to introduce the newly launched products of Burger Hut by the means of a marketing plan. The new products comprises of ‘Frozen Yogurt Parfait’, ‘Fruit Smoothie’ and the ‘Oat n Legumes’ Burger that will be introduced in the food and beverages market of Singapore. The organisation wants to upsurge its customer base and the revenues by having these nutritious products in the menu of Burger Hut. The key aim of the marketing communication plan is to upsurge the sales by the means of several communication channels that can help the company in attaining increase level of publicity and attraction for the new products (Daoud, 2016). The newly introduced items are primarily nutritious and healthy in nature so that there can be developed a new customer base for the company.

Specific

The goals and the objectives of Burger Hut are specific as the new products are specifically for targeting the health conscious people. The company has it emphasis on targeting such individuals only.

Measurable

The objectives are measurable in nature as there will be increased market reach, customer base and the revenues. More number of people have started consuming more healthy and nutritious food products and restrained them from consuming more of junk food.

Achievable

The objectives of Burger Hut are achievable in nature as in the present scenario there is huge demand for products which contains les calories and are made up of healthy substances. Thus, there is an increased probability that the customers will be targeted easily.

Social Factors

Realistic

The objectives of Burger Hut are realistic in nature as there are individuals who have a high demand of change flavours and nutritious elements in the fast food products. Thus, it is assumed that the company will be successful in attracting the customers and realising the objectives of increased sales of the newly introduced products (Grier, et al., 2007).

Timely

The objectives of Burger Hut will be attained in specific time being. There will be taken few months to promote the newly introduced products in an effective manner. Once there will be god promotion of the products, then more number of customers will be connected and the objective will be achieved.

For promoting and advertising the fresh and innovative products launched by Burger Hut, following are the strategies which will be used. With the help of these marketing communication strategies, there will be high promotion of the products among the various customer segments (Gilligan and Hird, 2012).

Direct Sales

It is a recognized marketing communication strategy by which there can be effective promotion of the newly launched products. The organisation has only domestic and regional presence. Therefore, direct sales are helpful in promoting the products regionally (Epstein and Yuthas, 2007). There are several aspects by which the direct sales can be performed for example personal selling, etc. The already existing customers will be provided with the discount coupons by the means of emails or when they visit restaurant or at the purchase of buying the newly introduced products (Dingman, et al., 2014).

Public Relations

Another key marketing communication strategy is public relations which can be effective in promoting the newly launched products of Burger Hut. The existing customers have a consistent association with the restaurant and the promotion by the means of these already customers is called public relations. The reliable customers are easier to convince for the newly introduced products as they already have a trust over the brad and its products (Verain, Dagevos and Antonides, 2015).

Promotion

Another strategy to promote the new products is to have promotions on the social platforms such as Twitter, Facebook, Instagram, etc. Usually people spend a lot of their on these platforms, primarily the children and the youngsters (Godsmark, Garvey and Dismore, 2011). So it will be beneficial to have promotions by the means of these platforms. Another ways of promotion is through hoardings, brochures and posters. All these will be less expensive as well as will be more effective as the burger Hut is a domestic organisation. Thus all these promotional strategies will be effective in case of Burger Hut. There can be used promotional mails and the endorsements as the marketing channels. All such strategies will help gathering more number of potential customers for the newly introduced healthy and nutritious products (Wong, 2010).

Technological Factors

Advertising

Advertising is another key marketing communication strategy that fetches the attention of increased number of potential customers (Malhotra, 2008). Burger Hut will use various advertising channels such as local television channels, magazines and newspapers. These published advertisements and the visuals and audios help in fetching the attention of the potential consumers and will help in up surging the sales of the newly launched products (Untaru and Ispas, 2013).

Healthy and Nutritious Meal Package

The newly introduced products are primarily launched from the perspectives of offering nutritious and healthy melds to the consumers so that the children, youngsters, parents as well as health conscious people can be attracted. The key idea behind the introduction of these products is to offer a healthy and nutritious meal to the people (Eden, 2011). The food products ‘Frozen Yogurt Parfait’, ‘Fruit Smoothie’ and the ‘Oat n Legumes’ Burger will be offered at very nominal process. There will be offered burgers made up of legumes and oat in nutritional flour as well as free of costs salads will also be served to them.  Because of nominal prices, customers will try these products and once a taste will be developed, there will be reliable customers for these products (Dobbs, 2014).

Free event and sport Coupons

The organisation will have a partnership with various companies sponsoring events and sports. And the coupons will be offered to the customers purchasing these newly launched products at free of cost so that the potential customers can be target (Frash, DiPietro and Smith, 2014).

Two meals at a price of one

Next implementation tactic is offering two meals at a price of one. The new products ‘Frozen Yogurt Parfait’, ‘Fruit Smoothie’ and the ‘Oat n Legumes’ Burger will be provided to the individual in a  combo offer where they can purchase any two meals by giving price only for one. But it will be necessary for the individual to finish it at the restaurant only. It will help in encouraging the sales of the new products (Luttrell, 2016).

Efficiency Control

There must be performed analysis of the sales promotion efficiency, sales force efficiency, distribution efficiency, marketing efficiency and the operational efficiency. By analysing these factors, there will be attained the results of the overall efficiency of the various departments of the company and the marketing plan (Martínez, 2012).

Legal Factors

Analysis of the Target Market Sales

After the launch of the products, it is necessary to analyse the sales of the products on quarterly or monthly basis. The decreased sales show that product is not liked by the consumers where the upsurge sales depicts that customers have liked the products. It will indicate the functioning of the marketing plan of the products (Pavlou and Stewart, 2015).

Budgeting

Budgeting is total revenue minus total expenses (Vakratsas, Demetrios and Ma, 2005). There will be calculation of all the costs and expense and that will be deducted from the overall earnings earned from the newly introduced products. Increased revenue shows successful implementation whereas increased expenses shows inefficiency of the plan and strategies (Peñaloza, Toulouse and Visconti, 2013).

Analysis of the Market Share

The company must compare the market share of Burger Hut before and after launching of the new products. Increased market share depicts successful implementation whereas decreased market share shows inefficiency of the plan and strategies (Kerr & Patti, 2002).

Consumer Feedback

The evaluation can be done by taking customer feedbacks. Positive customer feedback reflects the success of the products and the marketing plan. Company can gather feedbacks by offering feedback forms to customer at their visit. The results of the evaluation of the customer feedback will depict the failure or success of the products and the marketing plan (Lake, 2016).

References

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Environmental Factors

https://www.cimaglobal.com/Documents/ImportedDocuments/Tech_MAG_Evaluating_Internet_Marketing_April06.pdf
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