International Marketing Plan for Hardee's to Enter Australian Fast Food Market - Essay Example

? Project Table of Contents Table of Contents 2 Executive Summary 4 Introduction 5 ment of Marketing Objectives 6 Market Research 7 Market Entry9 Target Market 10 Marketing Strategy 11 Product 13 Place 13 Promotion 13 Price 14 Process 14 People 14 Physical Evidence 15 Market Positioning 15 Strategic fit & business portfolio evaluation 16 Implementation and Action Plan 17 Conclusion 17 Reference 18 Executive Summary The business environment of today has become highly challenging in nature. The opening up of new economies in the marketplace along with the fast process of globalization has brought a massive change in the nature of consumer behavior of the masses. As information becomes freely available in the virtual medium, the consumers are enjoying a rapid increase in power of negotiation. This is naturally impacting the traditional and long existing buyer seller relationship. Apart from that, with the emergence of virtually connected global markets, the factor of competition is also increasing pretty rapidly. Many firms, having attained significant business growths in their homelands are concentrating on the issues of venturing into newer markets. It can be said that this is automatically resulting in the arrival of various homogeneous products in the same market of a particular region or location. It needs to be highlighted that the process of arrival of new homogenous products is resulting in the process of increase in substitute products. With the rise in availability of more and more substitute products in the markets, the negotiation power of the consumers is getting further elevated. This particular project discusses about designing a complete marketing plan that will help the American fast food chain, Hardee to enter in the markets of Australia Introduction The world of 21st century is advancing at rapid rate. The modern day world is powered by fast change and tremendous development. It is of considerable importance to highlight that the emergence of the technology powered connectivity in the recent times, has brought a tremendous amount of permanent changes in markets around the world. With the fast diffusion of the internet based connectivity as well as the emergence of high end Smartphones in both the developed as well as the developing economies, there has been a tremendous increase in the power associated with the connectivity of the masses. Because of this enhanced connectivity, consumers all over the world have gained access to a lot of information and this has resulted in the evolution of more demanding consumers. Also, it needs to be highlighted that because of this surge in global connectivity, there has been a tremendous change in the nature of conducting business operations in the various global markets. Spotting the demand coming from the consumers of various diverse geographies, organizations that are located in separate regions and time zones are increasingly considering on the process of significant business expansion. Needless to say, that this new flow of demand from the different geographies have the potential to transform into significant business opportunities for the expanding business organizations in the immediate future. It needs to be mentioned that in this particular case, the popular and growing fast food chain of the American region, the Hardee’s is looking forward to entering the market of Australia for attaining significant business growth while catering to the demand existing for American products in the region. Statement of Marketing Objectives While talking about marketing objectives, it needs to be highlighted that it is a part of the strategic planning process whose main aim and focus is to help the organization to attain a significant growth as well as strong foothold in the targeted market (Fifield, 2007, p. 5.1). The marketing objectives helps in the process of drawing specific marketing oriented goals and targets that needs to be achieved by the organization in the upcoming times. It also helps the organization’s value communication exercises to stay in line with regards to the customer expectations as well as the changing market scenarios and variables (Ferrell and Hartline, 2010, p. 92). It is of considerable importance to highlight that while focusing on the process of planning the marketing objectives of a particular organization, attention has to be given on the process of designing the marketing objectives on the line of SMART objectives (Cheng and et.al, 2011, p. 20). The SMART objectives represent factors like specific, measureable, achievable, realistic and time bound criteria (Cheverton, 2004, p. 101) While designing the marketing objectives for the fast food chain Hardee, the focus should be to attain entry in the market of Australia. Hence, the specific SMART based marketing objectives are given as follows: Gain entry in the market of Australia and develop a strong consumer base. Provide promotional pricing for products for the first 6 months to gain edge in the Australian market. Achieve a 2% market share in the fast food market of Australia in the upcoming 24 months. Market Research While discussing in regards to market research, it can be said that it is the process of creating a linkage between the market, the customers as well as the marketers through the exchange of value based information. It is relevant to describe that the information that is being collected through the form of market research often plays a crucial role in regards to identification of new trends and opportunities, as well as pinpointing the problems that exists in a particular market (Beri, 2000, p. 4). It needs to be highlighted that the nature of market research can be either primary or secondary in nature. Talking a little about secondary research, it has to be taken into consideration that it is the process of usage of extraction and interpretation of data that has been already collected and used by someone else before the current researcher (McQuarrie, 2006, p. 53). In regards to primary market research, it can be said that this kind of research is being conducted by collecting real time data directly from the markets and the consumers (Nargundkar, 2003, p. 14). It is important to note that the most common and widely used form of collecting data from the target respondents is through the process of usage of survey instrument like that of a questionnaire, which might be either open ended or close ended in nature (Stevens and et.al, 2006, p. 133 - 134). In this particular case, it is important to highlight that only secondary research can be conducted. While analyzing the amount of research by the firm, it needs to be mentioned that the research lacks a holistic as well as a more in-depth view. The Australian fast food market is currently evaluated at around $13 billion. The entire fast food sector has attained a growth rate of around 2% in the five year period of 2008-2013 (IBISWorld, 2013). Talking about the latest trends that exist in the Australian fast food market, it can be said that the market has attained a slow and steady shift to health conscious eating. While in the previous decade, the sale of fast food in the Australian region mainly represented hamburgers and fries, as of now, the growth and turnover of fast food in the region is achieved from salads, juices and sushi. It needs to be mentioned that because of the rise of the obesity related epidemic in Australia, the region has witnessed the rise of health conscious eating (Evans, 2011). While discussing the issue of obesity, it needs to be mentioned that currently over 60 % of Australian adult as well as a quarter of the children are either overweight or obese (Cancer Council NSW, 2013) Discussing on the lines of consumer behavior of the Australian masses associated with consumption of fast food, it has to be said that the Australian has a huge liking and preference for fast food. Their frequency of visiting a fast food outlet has attained an increase over the years. While discussing consumer spending in terms of fast food purchase by the Australian masses, it can be said that the average spending stands at more than $38 (Evans, 2011). Also, talking more specifically in regards to fast food spending by Australian households, it can be highlighted that the fast food spending takes about 28% of the food budget of the households (, p.1). On the lines of competition, it needs to be focused that McDonalds dominates the fast food market of the region with a market share of around 26% (Euromonitor.com, 2012). However, the entire fast food market is filled with mostly the big players comprising of McDonalds, KFC, Subway, Pizza Hut, Subway etc. It is of significant interest to mention that the major players in the Australian fast food market has adopted to the changing consumers trends in regards to healthy eating and has a significant growth in their product sales. Market Entry It is of considerable importance to highlight that the American food chain Hardee has attained significant growth in the home markets. As per the current scenario, it is trying to embark on an expansion mode. As a result, the chain has focused on the process of entering the market of Australia. Hence, it is of considerable importance to evaluate the strategy that can be used by the fast food chain to enter the market of Australia. Talking in regards to the market news and probable upcoming trends, the 2008 Victorian Government Report needs to be discussed. As per the report, it has been predicted that by the year 2025, around 83% of men as well as 75% of women falling in the age group of 20 years and above will be overweight or obese (Markey and Watson, 2011). Also, it has been predicted that Australian masses will be spending close to around 37 billion USD on fast food takeaways. Now evaluating the strategy designed by Hardee for market expansion in Australia, it can be highlighted that the fast food chain is trying its best to capitalize on the market opportunity by depending on its strengths. Hardee’s three top strengths are differentiated product offerings, strong marketing strategy as well as availability of highly skilled human resources, which has the potential to provide strong leadership at various levels of the fast food chain based organization. Now matching the strengths with regards to the opportunities existing in the market, it needs to be highlighted that though the company has differentiated product offerings, yet the offerings are largely based on the hamburger lineups. It needs to be considered that the market in Australia has shifted to a healthier focus. The trend in fast foods in the Australian market currently focuses more on salads and juices. Hence, it can be recommended that as a possible alternative, the company needs to focus on introducing salad and juice based product offerings in its food menu so as to lure and attract more of the Australian masses in the long run. This will also help the fast food chain of America to compete with the top fast food players in the Australian market, who has achieved significant growth in sales by capitalizing on the healthy issue. Also, while discussing the scope of market entry, it is important to highlight that the American fast food chain focuses on communicating the food values of its products, which results in promotion of a healthy life style. With the rise of issues like obesity and overweight among the Australian consumers, the focus of consumption has shifted to healthy eating in the recent times. Hence, it can be said that the company’ focus on healthy eating in its value communication exercises is in perfect alignment with regards to the demand existing in the Australian fast food market. Target Market From the theoretical point of view, the target market can be stated as the selected group of consumers or customers who has been identified and targeted by the marketers for the purpose of value communication for a specific set of products and services (Gitman and McDaniel, 2008, p. 293). It has to be said that the target market, which is also termed as the target audience is often analyzed by the marketers on the basis of their consumer behavior as well as other relevant trends. By focusing on a specific target market, it can be said that the effective of a value communicating exercise is greatly improved. It is of significant importance to highlight that while discussing on the target market, multiple variables like the demographic factors, consumer behavior factors, socio- cultural as well as the political and economical factors are being taken into consideration. In this case, discussing on the lines of economic factors, it needs to be said that an average Australian household spends around 28% of its food budget on eating out and fast food. Also, the rapid paced lives of the masses have resulted in faster absorption of fast food. Hence, it can be said that while targeting the consumers, the fast food chain needs to focus on the audience who live a fast paced life. While considering the socio cultural factors, it needs to be factored that there is a tremendous and favorable demand for American products in the Australian markets. Also, the various health based predictions and forecasts has to be taken in to account, since they fall in the social factors concerning the Australian masses. It is of considerable importance to highlight that in the upcoming years, as per various health based report predictions, a majority of the young Australian population will be suffering from issues related to overweight and obesity. Since, the American fast food chain is highly focused on promoting a healthy line of products in all of its servicing markets, so it can be said that the most appropriate target audience in this case is the young male and female population of the Australian region who run the high risk to health related issues in the upcoming years. Marketing Strategy It needs to be highlighted that in order to stay sustainable as well as alive in a highly competitive consumer market, it is of superior importance to acknowledge that the product, service or bundled offerings of the organization needs to sell in the marketplace. Talking on these lines, it can be said that for the selling of products and services, in the marketplace, it is of high importance to have a demand created among the consumers as well as the desired target audience, who have the needed purchasing power to acquire the products and services. It can be said that for the purpose of creating the demand for the organization’s products and services in the marketplace, the process of marketing needs to be carried out and executed in the most effective manner. Now talking on the lines of marketing, it has to be mentioned that marketing is often associated with the manipulation of the various Ps. Talking from the traditional point of view, it can be said that there are 4Ps which represents the factors of product, place, promotion and price. While matching the factors in regards to the value term, it needs to be mentioned that the factor of product represents value creation. Also, the other factors like place, promotion and price, represents value distribution, value communication and value capture. Over the course of time, the marketing variables have witnessed a significant change in the environment of business, which has undergone a tremendous transformation on the basis of market competition. As a result, marketers have started to adopt a shift from the traditional marketing on the basis of 4P’s to a complete new framework. This new frameworks talks about 7P’s in the case of service marketing. The 7P’s framework includes the variables of the 4P’s of marketing like the product, place, promotion and price. Additionally, it takes into account the issues presented by the variables like process, people and physical evidence (Kumar, 2010, p. 47). For successful communication of value of a product or service in the marketplace, having a well defined marketing strategy is of significant importance. Marketing strategy, in the theoretical terms often represents the well defined plans that help the business organizations and firms to achieve its goals and objectives related to marketing (Kotler and Armstrong, 2008, p.45). It is relevant to mention that marketing of fast food increasingly falls in the purview of services marketing as the additional 3 variables like process, people and physical evidence also play a significant role. In this case, the marketing strategy for Hardees’ entry in the Australian market needs to be drawn on the basis of the 7Ps framework. Product The variable product is associated with the process of value creation in the market for the desired and focused target audience. While considering about the factor of value creation, the psychology as well as the consumer behavior needs to be taken into consideration. In the case of Hardees’s, it needs to be considered that the masses of Australia are getting more attracted to healthy food products. Hence, for the purpose of making a presence in the Australian market, the fast food chain needs to introduce healthy product offerings to the regional consumers. Place It has to be considered that the Australian market is already dominated by the various competitive fast food chains like McDonalds, KFC, etc. So, the market for fast food can be assumed to be already saturated. However, in order to get an access to the potential laying in the Australian market, the American fast food chain needs to open outlets in the regions where there is a high footfall of consumers. Promotion For the promotional campaign to be highly effective, it is of utmost importance that the marketing communication efforts of American fast food chain should be in line with regards to the demand arising from the masses. Hence, Hardees needs to highlight on the healthy image that can be associated with their product offerings. Price The prices talks about value capture from the consumers. While deciding on the pricing of the products, Hardees’ increasingly needs to take into consideration that there are a lot of substitutes and alternatives that are already present in the market. As a result, the product offering of Hardees’ has to be available at highly competitive prices. Additionally, it is relevant to mention that since the American fast food chain is completely new in the Australian region, it should focus on providing low introductory pricing for its food products. Process It needs to be highlighted that for the purpose of smooth delivery of value for the product offerings of Hardees, having a well developed process is very important. It also has to be mentioned that for the delivery of products, the American chain needs to have outlets in various locations, where consumer footfall is very high. Thus, it can be said that having a well developed and balanced process will help in the faster manufacturing of the fast food lineup of products at various outlets of Hardees as well in the process of management of the outlets. This will no doubt, help the American fast food chain attain a greater level of efficiency. People The factor of people plays a critical role in the entire process related to value generation and value delivery of the products of Hardees. It is important to mention that in a typical outlet based setup, both the consumers and producers meet face to face, which results in normal human interaction. Hence, talking in regards to the marketing strategy, it can be said that the American fast food chain should focus on hiring and maintaining people, who can communicate as well as adjust themselves in the perfect manner in regards to the nature and behavior of the regional masses. This will help in developing and inculcating a local culture, which will act as a crucial factor for the success in the focused regions. Physical Evidence On the theoretical lines, the physical evidence represents the sub variables that helps in creating a tangible angle for the various intangible features associated with a particular service. Since, the fast food chain offers foods that are intangible to describe, until and unless the consumer consumes it, hence, the tangibility of the product needs to be expressed through other features. As a result, various other factors like freshness, delicacy and innovativeness in product offerings needs to be highlighted for successful value communication for the fast food line ups. Market Positioning The market positioning represents the process of positioning a product in the desired target market so that it attains a high level of consumer attention from the intended audience. While talking on the lines of positioning the product offerings of Hardees in the Australian market, it needs to be taken into consideration that the market for the fast food has undergone a shift in preference. Talking in more detailed manner, it can be highlighted that the preference of the consumers has shifted from hamburgers to health conscious products like salads and juices. Hence, it is of utmost importance to highlight that during the process of positioning, the factor of health consciousness has to be increasingly highlighted and communicated to the desired target audience. Talking more about positioning the product in the Australian market, it can be said that the healthy product offerings of the company needs to be promoted to the health conscious consumers of Australia, who increasingly belong to the young age group. While deciding on the location for positioning the product in the Australian market, the focus has to be given to the regions that have a high footfall of consumers. Hence, the ideal places for opening the outlets of Hardees will be the regions which provide central connectivity to high number of commuters and traffic. Strategic fit & business portfolio evaluation While talking about strategic fit as well as the evaluation of business portfolio, it can be said that the focus is largely on the issues to connect strengths of the company with the potential opportunities that are arising in the market place. It is significantly relevant to acknowledge that the Australian market of fast food promotes the demand for healthy food products, like salads and juices. Now, while highlighting the strengths of the company, it is of considerable importance to focus on the company’s ability to produce differentiated products. It needs to be further focused that the company is the sole producer of the unique and highly health conscious product Charbroiled Burger. By having this healthy product in the food menu, the American fast food chain will be successful in garnering the attention of the health conscious consumers of the Australian region. Now, it also has to be mentioned that the company’s other significant point of strength is related to the issue of marketing. In distinguishing itself from the other players, the company focuses on displaying the nutritional features of the food products, thereby giving the consumers with a transparent and clear idea about their food intake. Now, relating this particular marketing based strength of the company with that of the current opportunity, it can be said that this new kind of value communication tactic for the American fast food chain’s products will help in the process of faster luring of the Australian consumers. Also, the company has significant strengths in regards to the factor of human resource. It needs to be mentioned that the company has a very strong pool of highly skilled managers, whose able leadership skills will help the American chain to attain growth as well as penetration in the fast food market of Australia. Implementation and Action Plan General overview of the Australian market -1 week In-depth study of the Australian fast food market – 2 weeks Conduction of Primary Market Research – 3 weeks Designing and reconsidering the Marketing Objectives – 1 week Implementing the Marketing Strategy – 8 weeks Review of the Implemented Marketing Strategy – After 24 weeks Conclusion On a concluding note, it can be said that the global marketing plan has been designed for entering the market of Australia. The American fast food chain, Hardees, has the strengths related to differentiated products and strong marketing tactics. On the other hand, the Australian fast food market provides the opportunity related to growth of healthy eating. It can be said that the entire global marketing plan for Hardees has been designed while trying to plot the strengths of the fast food chain with that of the opportunities present in the market of Australia. Reference Evans, C. (2011). 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