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Shake Shack: Market Entry Plan

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Katy Magoon

on 1 July 2014

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Transcript of Shake Shack: Market Entry Plan

Intro to Company Products
Country Screening
Singapore - Orchard Road
Implementation Issues
Entry Mode Strategies
Market Attractiveness & Potential
Modern day “roadside burger stand”
Expanding in both domestic and international locations
Quality ingredients/ products
Reason to expand into Singapore

Distribution Channels
Establishing a loyal customer base
Alternative distribution channels
Advertising of all natural ingredients
Company Sales Potential(5yr)= N x MS x P xQ
N=Potential Consumers: 2,397,245
MS= Shake Shack is looking to acquire 8% of Singapore Fast Food market
P= Single Shack Burger cost S$6
Q= On average Customers frequent Shake Shack 10times/year
MP= 2,397,245 x 8% x S$6 x 10=
Presented by:
Daniel Li
Luke Trompeter
Kathryn Magoon
Krystal Truong
Jasmyn He
Market Entry Plan

One of the largest shopping districts
High population density
Tourist destination
Large percentage of teenagers and young adults
Easy access location
Most expensive location

A Wholly-owned Subsidiary would provide Shake Shack with the most control and possibly the most revenue out of all the options.
Industry Market Potential (%) = Shake Shack Sales / Total Market Sales
Unit Sales= Estimated Shake Shack Sales of S$11,506,776
Total Market Sales= Singapore Fast Food Industry sales total S$937 mill
IMP= 11,506,776 / 937,000,000 =

Population of 5.4 million
GDP of 274.7 Billion USD
Lower avg rent than Hong Kong
Highest food consumption in S.E.A.
Imports 90% of food
Eats out often
international destination
business hub
cultural epicenter
Wholly owned subsidiary:
full control of day-to-day operations
avoids risks involving partners & contract disputes
smooth transition from the West to South East Asia
Full transcript