Most Innovative Business Model in International Business

BurgerFuel Worldwide chief executive Josef Roberts says the company is positioned as a high-end fast food chain with a modern outlook. It has a celebrated grasp of social media and the potential to grow clientele through social networks.

“Each territory has an active social media presence to engage the target market and take advantage of the new age style of communications on platforms such as Facebook, Twitter and Foursquare. These communications amplify customer experiences, drive conversations through relevant communities online and keep on top of what international consumers demand.

“In many cases the information available overseas is even better than the data available in New Zealand, with higher population numbers and better smartphone penetration in these newer markets.”

BurgerFuel was established on 1995 and began exporting in 2007. It now has 34 stores including one in Australia, three in Saudi Arabia and three in Dubai.

Roberts and Dubai-based founder Chris Mason are focused on further expansion in The Middle East, with Master Licence agreements in place for Egypt, Iraq and Bahrain.  Sales in the Middle East have grown nearly five-fold in the first year of operation.

Even before landing in Saudi Arabia and Dubai, BurgerFuel spent large amounts of time on product development and reviewing brand communications. The market required full Halal certification across all food types, elimination of all posters featuring women, and the ‘budgee smugglers’ on the company’s Piha Surf-Lifesavers were deemed too risqué.

The Saudi Arabian store required completely separate dining areas, keeping the bachelors apart from the families, women and children.

The BurgerFuel system employs about 500 people in New Zealand and has 2,584 shareholders after its float on the New Zealand Stock Exchange in 2007.

Revenue in 2011 – the company’s first year of profit since going public – was $8.3 million, of which $2.1 million was earned overseas.

In an innovative marketing collaboration, Christchurch light bulb manufacturer Energy Mad announced its arrival with the South Canterbury "Ecobulb project" in late 2004. In six weeks, 66 percent of South Canterbury homes each bought five or more Ecobulb lamps and one of New Zealand’s fastest growing companies of recent years began its ascent.

Energy Mad manufactures energy-efficient Ecobulb and Ecospiral light bulbs that replace incandescent and halogen bulbs. It now sells these Ecobulbs in New Zealand, Australia, the United States, Germany, Ireland and Spain through an innovative market entry approach involving large-scale multi-year projects with electricity companies and Government energy efficiency agencies.

Managing Director Chris Mardon says each Energy Mad Ecobulb saves consumers up to $240 over its life and boasts a lifespan 15 times that of a traditional incandescent bulb. The company’s vision is to “make lives better by saving enough electricity to power Europe”.

Energy Mad’s international revenue has grown 8,622 percent over the past three years – from $92,000 and one customer in 2009, to $8.025 million and 27 customers in 2011.

Detailed market research has resulted in pivotal product innovations for overseas consumers, such as the smaller sized spiral Ecobulbs with an ultra-low mercury content, the 240V Ecobulb downlight to replace halogen downlight fittings, and the 12V Ecobulb to replace 12V halogen light bulbs.

Energy Mad also adapts its marketing methodologies for each international market. In Australia, Energy Mad focuses on being the energy saving bulb provider of choice for the various State Government regulated energy efficiency schemes.

However, in the United States and Europe, Energy Mad chooses to use a direct mail marketing approach in conjunction with electricity companies.

GMP Pharmaceuticals is a fast-growing force in the health-conscious Asian market, supplying supplements and functional foods with valued New Zealand origins.

Auckland-based GMP is the biggest contract manufacturer of supplements in New Zealand, employing 165 people and providing spin-off employment for smaller companies. It has specialised in supporting small New Zealand nutritionals suppliers to enter potentially lucrative overseas markets.

GMP general manager Minesh Patel says: “We decided to help the small people develop their ideas, manufacture them, and help them to become big brands in China and Korea”.

The company exports to 20 countries, including Australia, China and Korea.

Patel says the company’s success has grown through its determination to provide a “one stop shop” to people wanting to retail natural supplements.

GMP offers research and development, manufacture and distribution and through intimate involvement with clients’ businesses is also able to advise them on aspects such as initial concepts, packaging, and distribution. For customers wishing to access the Chinese market, it also provides product registration, bonded warehousing facilities, product showcase and launch within facilities set aside for Australasian products.

GMP contract manufactures a number of market ready and customised health supplements. When GMP started exporting in 2004, it had 2,000m² of factory space. It now has 8,000m², including an infant formula plant with a capacity of 12 million cans a year. It is anticipated the infant formula market could generate $80 million for GMP in the next three years.

Products are mostly sold to wholesalers and distributors overseas, who in turn supply supermarket chains, healthfood stores, and high-end pharmacies. Indirect sales are achieved in part by using New Zealand migrants with connections in Asia who can set up a profitable business exporting health products from New Zealand.

Revenue in 2011 was $29 million, of which $23 million was earned overseas.