Hottie Hawgs Bbq Case Study
Hottie Hawg’s Smokin’ BBQ
Case Study
Team 16
Strengths: * NASCAR Partnership * Excellent food * Differentiated brand * Creativity of owners * Excellent marketing * Low infrastructure costs * Mobile restaurant * Little brand competition * Service flexibility * Proprietary recipes * Community support/interests * Professional marketing image
Weaknesses:
* Lack of cash flow * Leadership working for two companies * Loss of founder means all lies on Vaughn * High travel costs for events outside of Atlanta * Licensing decision reduces the opportunity of franchise income * Limited distribution capabilities * Expansion is expensive * Non-centralized staff * Lack of business credit * Limited menu * Use of ACT funds to finance HHBBQ operations pierces the corporate veil. * Limited catering experience
Opportunities: * Aramark/Pepsi Center opportunity * NASCAR as growth partner * Growth within Atlanta * Brand awareness through additional licensing and potential franchising * Merchandise sales * Brick-and-mortar Flagship locations * Popularity of Food Trucks
Threats:
* Hooters Restaurants * Other barbecue restaurants * Customer reluctance to patronize a polarizing brand * Loss of trade-secret information * Legal costs * Economic downturn/slow economic growth * Rising fuel and transportation costs * Pitmasters BBQ uses similar logo and brand image:
1. If you were in Kyle Vaughn’s position, which strategic option would you take? Explain your reasoning.
Hottie Hawg’s Smokin BBQ was presented with an opportunity for tremendous growth early on in the life of the company that would test the limits of HHBBQ’s ability to raise capital, produce the quantity of food required and maintain the quality of the product while protecting the brand name and mark they had worked to cultivate. The Aramark/Pepsi Center
Case Study
Team 16
Strengths: * NASCAR Partnership * Excellent food * Differentiated brand * Creativity of owners * Excellent marketing * Low infrastructure costs * Mobile restaurant * Little brand competition * Service flexibility * Proprietary recipes * Community support/interests * Professional marketing image
Weaknesses:
* Lack of cash flow * Leadership working for two companies * Loss of founder means all lies on Vaughn * High travel costs for events outside of Atlanta * Licensing decision reduces the opportunity of franchise income * Limited distribution capabilities * Expansion is expensive * Non-centralized staff * Lack of business credit * Limited menu * Use of ACT funds to finance HHBBQ operations pierces the corporate veil. * Limited catering experience
Opportunities: * Aramark/Pepsi Center opportunity * NASCAR as growth partner * Growth within Atlanta * Brand awareness through additional licensing and potential franchising * Merchandise sales * Brick-and-mortar Flagship locations * Popularity of Food Trucks
Threats:
* Hooters Restaurants * Other barbecue restaurants * Customer reluctance to patronize a polarizing brand * Loss of trade-secret information * Legal costs * Economic downturn/slow economic growth * Rising fuel and transportation costs * Pitmasters BBQ uses similar logo and brand image:
1. If you were in Kyle Vaughn’s position, which strategic option would you take? Explain your reasoning.
Hottie Hawg’s Smokin BBQ was presented with an opportunity for tremendous growth early on in the life of the company that would test the limits of HHBBQ’s ability to raise capital, produce the quantity of food required and maintain the quality of the product while protecting the brand name and mark they had worked to cultivate. The Aramark/Pepsi Center