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Transcript

Best Opportunity

Ecological product line

  • It’s difficult to copy, it gives the customer better value and also extend the current customer base.

Thank You

Introduction

Group 1

  • Hesburger = the most famous brand of the Salmela group
  • Core business: fast-food
  • Group has over 5000 employees in total
  • Restaurants: ~300 in Finland, >100 abroad (mostly in Baltic countries, fewer in Russia and Germany)
  • Turnover EUR 200 million in Finland (2011)

Main pros & cons

  • Pros: “We’re domestic and we’re very strong in our core business. I would also add innovationess, especially the founder, Heikki Salmela.”
  • Cons: “Cost structure. Raw materials, energy, construction and personnel costs have risen for a while already. Also, the fast food concept itself has been developed in the ‘production era’ (high volume + low costs + same product for everyone) but nowadays, people’s needs & wants are more individual. So, they are losing the advantages of mass production. In addition, it’s highly competed market and I would also mention risks – you can’t always succeed in trying new things”.

Why we chose Hesburger

  • The company ”next door” (especially in Turku ), but it’s interesting what’s in the background
  • Fast-food business is already well established and competed

-> how about (entrepreneurial) opportunities?

  • Still, it’s a growth company, in 2011-2012 it opened over 50 restaurants in Finland and over 20 to Baltic countries.
  • Good contacts, we interviewed the Vice CEO of Hesburger, Jari Vuoti

Overview of the companies in the group

  • Franchising: Burger-in Oy
  • Logistics: Hes-pro Oy
  • Real estates & property: KOY Burger-talot
  • Accounting & finance: Megavest Oy
  • Supporting businesses such as BurgerClean Oy (cleaning in group’s offices & restaurants)
  • Other activities non-related to the core, for example: Clewer Oy (water cleaning for industries & individ. households) and Gastronautti Oy (small-scale logistics), car wash business, hotel business…

Hesburger

Presented by

Ideation

  • Brainstorming (after a discussion about the interview answers)
  • Self-sufficiency in energy for all the restaurants
  • Restaurants where you can make your own burgers
  • Healthy options
  • Spa/sauna burger restaurant
  • Theme park
  • Party service
  • Selling licenses for other restaurants to sell Hesburger products
  • Reindeer burgers
  • Bike renting
  • Ecological fast food (organic)
  • Non-processed chicken burgers
  • Delivery service combined with online service where you can create your own burgers

New product lines chosen for further evaluation

Ended the idea generation with coming up with crazy ideas --->bad ideas into good ideas

  • Liquid foods
  • Burger soup
  • Fast food in space
  • Horror themed restaurants
  • Suspended restaurants
  • Partnerships with airline

1) Healthy

2) Luxury

3) Ecological

4) Transportation

5) Mobile

Other services added to restaurants:

6) The "Finnish experience" concept for markets outside of Finland combining sauna and spa facilities with Hesburger food

7) Party service in restaurants and delivery

8) Mobile application and an interactive website (for ordering/creating new products)

Niko Karinen ( 75033)

Elisa Suhonen (503655)

Akram Mimouni (506370)

Md Razowan Sajib (506638)

Jesus Pizarro Bravo

Evaluation

Opportunity evaluation method described by

  • Ryan Allis (Zero to One Million: How I Built My Company to 1 Million $ Sales...and How You Can, Too)
  • Prof. Sharon Alvarez

Ecological Fastfood

Evaluation of the different ideas

by using Prof. Alvarez method

In our opinion, is a very good idea at first can be quite costly. The fact that the other companies that are in the group can cooperate Salmela development makes us more positive with this idea. Moreover, if we have a future perspective, these changes are necessary and a good chance to be the first to do this.

Can your competitors easily start offering the same product/service you are about to introduce to the market?

Evaluation of the different ideas by using Ryan Allis method

Party service in restaurants and delivery

Can u expand the customer base by giving them something that the current competitors are not offering?

Luxury Fastfood

It is not a new idea, but also not very expensive. If we promote it may give us extra revenue

  • For the new healthy & luxury product line: Yes it is fairly easy to start making healthy options or put bear or moose on your burgers.
  • For the new ecological product line: Not that easily, it will be very expensive and therefore not so easy to copy.
  • For the new transportation product line: If you are the first mover to do this, it will be difficult to get partnerships with transportation companies after you.
  • For the new mobile Hesburger service: Yes, fairly easy
  • For the new Sauna/Spa Hesburger: Fairly easy since restaurants can just partner up with other spas.
  • For the new Party Service: Yes easy to copy.
  • For the new Mobile application and an interactive website: The system will require quite extensive investments at first so at least the small competitors won’t copy this.

Who are your customers?

In our opinion, that’s a good idea! It is not very developed yet in the market and we would not have many competitors.

  • For the new healthy product line: yes, now people who didn’t used to eat fast food because it’s unhealthy can also eat at Hesburger.
  • For the new luxury product line: yes, no one as far as I know is serving game burgers and therefore the customer base expands further and will include also those who consider themselves more gourmet people
  • For the new ecological product line: yes, no totally ecologic fast food restaurants exist (as far as I know), the customer base expands with people who prefer organic food and value ecological thinking
  • For the new transportation product line: Yes, travelling is very common these days and often the food served on trains and airplanes is of a very low quality. Therefore, Hesburger can extend its presence on such transportation vehicles and reach more customers.
  • For the new mobile Hesburger service/ Sauna/Spa Hesburger: Yes, this is a new way to reach customers.
  • For the new Party Service: Similar services exist so not really.
  • For the new Mobile application and an interactive website: Yes this is a new thing no one is offering yet.
  • For the new healthy product line: everyone who eats
  • For the new luxury product line: everyone who eats
  • For the new ecological product line: everyone who eats
  • For the new transportation product line: everyone who eats and travels
  • For the new mobile Hesburger service: everyone who eats
  • For the new Sauna/Spa Hesburger: everyone who enjoys going to sauna/spa and likes to eat
  • For the new Party Service: Families, organisations, other individuals
  • For the new Mobile application and an interactive website: all of Hesburger’s current and new customers

The "finnish experience" concept for abroad combining sauna and spa facilities with Hesburger food

Healthy Fast Food

In our opinion, we think it would be a good idea, but realize it is very risky. Would have to develop it step by step and make previously many studies to try to clarify their possible success.

This is a good idea but is already well developed by others and in which we would find several competitors. Even in this way, thanks to our strength as a fast food chain in Finland, it could be successful.

Does your new product/service create better value for the customer than the current offering on the market?

Mobile application and an interactive website (for ordering/creating new products)

Transportation Fastfood

  • the new healthy product line: yes
  • the new luxury product line: yes
  • the new ecological product line: yes
  • the new transportation product line: yes
  • the new mobile Hesburger service: maybe not
  • the new Sauna/Spa Hesburger: yes
  • the new Party Service: no
  • the new Mobile application and an interactive website: yes

In our opinion, today have an application as well as an interactive website is a must. We can not sit back, and as with other ideas is a good opportunity to distance ourselves from our competitors even more.We also think that this idea could be related to the previous idea, and that together would have more possibilities

In our opinion it is a very good idea that would allow expansion of the brand Hesburger more easily. The problem is that it would be necessary agreements with other large companies. If we are able to negotiate good deals, we think we should go ahead with this idea.

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