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This document is the description of the company that looks for the global marketing. ...

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MKT8035-GLOBAL MARKETS & STRAEGIES-SEC 7 FINAL MARKETING PROJECT

PROFESSOR- SUNIL RAJAPAKSEGE

STUDENT NAME & ID JYOTI KACHHAWA 8642919 JASPREET KAUR 8671358 JEEVAN THOMAS 8692604 GIRISH MOHAN 8625756 AKSHAY RAJA 8689173

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INTRODUCTION For the growth-oriented business owners, domestic market is not enough. For them, the rest of the world is their oyster. The dominant reason of taking a company on a global scale is to realize cost advantage, access new markets and tap new talent pools. [ CITATION Sch08 \l 1033 ] Before making the decision to take a company global, certain factors must be analyzed and then decision must be made. [ CITATION How \l 1033 ] 

How well the product will sell in global market?

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How familiar is the target market with the product?

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What are the infrastructure requirements?

Figure 1Fast Eddie's logo

After considering many factors and a careful comparison of different industries, our group has decided to take fast food restaurant Fast Eddie’s to India. Fast Eddie’s was founded by Ted and Mike Gorski on September 27,1987 in Brantford, Ontario. It is a father and son partnership. Fast Eddie’s has been serving the Canadian folks from last 30 years and in this time, it has developed huge customer base and has become proficient in managing the outlet.

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Fast Eddie’s is known for its “uniquely different menu” and deals in high quality burgers French fries and gourmet milkshakes in different flavors. Out of these, veggie burger, chicken burger, classic fries and chocolate crumble milkshake will be taken to the international market. Fast Eddie’s is a very successful venture in Canada, and it has the potential to expand and grow in India as well.

STRATEGIC FOCUS AND MARKET ENTRY PLAN We have decided to take Fast Eddie’s to a global market for growth and expansion. After deciding upon the company and the products to be taken on global level. The next huge decision to be made was the country where the product will be taken. In the initial stage, there were different countries in mind. But after analyzing the opportunities and threats of different markets, we have selected India as the target market. Why India? 

India is one of the BRIC countries (Brazil, Russia, India, China) and is moving from lower middle income to upper middle-income countries.

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India has the largest youth population on Earth. As compared to the population of India, there are very few chains of fast food outlets because of which there are many people who cannot reach them. [ CITATION Vai15 \l 1033 ]

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The restaurant market in India is still emerging and it provides huge space for more and more products to come and cohabit.

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India has a population of 1.2 billion and the number of fast food chains is around 2,700 which is relatively low compared to the demand. [ CITATION Eur15 \l 1033 ]

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Market Entry Strategy The Foreign Direct Inflows in the BRIC countries have shown a huge rise in the recent years. The FDI inflow in BRIC countries has increased from 5.69% in 2000 to 17.44% in 2009. It has increased more than three times. [ CITATION Dir \l 4105 ] There are different market entry strategies viz. exporting, licensing, franchising, contract manufacturing, joint venture and equity stake. For this venture, we are selecting Franchising as the market entry strategy. As it is a fast food outlet, this market strategy would be best. The franchising sector of India has the potential to grow to US$51 billion. In India, the franchisees that cater to the needs of the middle class people and focus on leisure activities like cafes, retail stores or restaurants are very successful.[ CITATION Bra17 \l 4105 ] Various franchisee options are provided in India, the one selected for Fast Eddie’s is local incorporation. In this, Fast Eddie’s would form a subsidiary in India and give it franchising rights. SUSTAINABLE COMPETITIVE ADVANTAGE 

Fast Eddie’s menu is uniquely different compared to availabilities in India.

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The average serving time per customer is 40 seconds or less.

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It has 2 different drive thru lanes and serving windows.

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It eliminates wastage of time by providing “Brain-Training program”.

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It has such operational systems which continuously pass on savings to its customers in the form of “Everyday Low Prices”.

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Their philosophy of quality, fast service and low prices exists as the cornerstone of their commitment to “Ultimate Customer Value”

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SWOT ANALYSIS SWOT Analysis is the analysis of Strengths, Weaknesses, Opportunities and Threats faced by an organization. Strength and Weaknesses are internal to an organization and Opportunities and Threats are related to external environment. STRENGTHS 

Average serving time: Fast Eddie’s has record of serving a customer in less than 40 seconds. It is beneficial as the people who are busy with their schedule can come here and enjoy food in least time.

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Product mix: It offers wide variety and extensive product mix to its customers.

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Different menu: Fast Eddie’s offer “uniquely different menu” to its customers. The menu is unique as it offers ‘crazyfrys’ and ‘wildshakes’.

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Operational efficiency: Fast Eddie’s have their specially designed ‘brain training program’ which helps them to eliminate wastage of time and effort.

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Streamlining and efficiency: The core philosophy of Fast Eddie’s is ‘streamlining and efficiency. [ CITATION Fas \l 4105 ]

WEAKNESSES 

Seasonal demand: The milk shakes offered are cold and chilled, so these have a seasonal demand.

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Less healthy options: Since Fast Eddie’s offer fast food like burger and fries to its customers. It will not be demanded by the folks who are health conscious.

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Infrastructure: Fast Eddie’s has its restaurant in a small building with not much expense on infrastructure. So, it may not be liked by some people.

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OPPORTUNITIES Growth of FDI: There has been a tremendous growth of Foreign Direct Investment

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in India which gives huge growth potential to invest in that country. BRIC country: India is one of the BRIC countries. These countries are suitable for

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investments and gives opportunities of expansion and growth. Growing economy: Indian population is moving from lower middle income to upper

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middle income which means more income to spend. Transparent and simple process: In India, the process to get trademark has been

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simplified with the Trademark Rules, 2017. This has increased new entrant’s security.[ CITATION Bra17 \l 4105 ] THREATS 

Competition: There is a competition from the restaurants which are already established in India. It requires time to create customer base when there is existing competition.

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No direct regulation: There are no direct regulations on franchisors in India. It creates huge confusion as the franchisor-franchisee relationship is arbitrarily governed by national as well as regional laws.[ CITATION Bra17 \l 4105 ]

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Religious and cultural issues: Beef and pork are prohibited and illegal in India due to religious issues. So, products will have to be altered.

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Technological advancements: It requires frequent technological advancements to cope with changing environment.

These are the components of SWOT Analysis for Fast Eddie’s.

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TARGET MARKET Target market is defined on the basis of demographic, behavioral, psychographic and geographic characteristics.[ CITATION Cre19 \l 4105 ] DEMOGRAPHIC SEGMENTATION: It is based on the demographics like age, occupation, gender etc. 

Age and gender: The products offered by Fast Eddie’s are suitable for age group of 5 years to 50 years. It suits the taste of all the age groups. It is consumed by both, males and females.

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Education and Occupation: Generally, people who are educated are the consumers of such products. It is consumed by everybody whether student, employee, professional or entrepreneur.

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Income range: It is consumed by lower as well as middle income people.

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Marital status: It is for bachelors, married or people with kids.

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Household composition: Kids at homes, empty nesters, full nest or recluse.

BEHAVIORAL SEGMENTATION: It is based on consumer’s buying behavior. 

Occasion for use: It can be consumed for breakfast, evening snacks, friendly get togethers or small parties.

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Usage rate: It is mostly consumed by potential as well as regular fast food eaters.

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Degree of loyalty: It requires high degree of loyalty as well as switchers who want to try new things.

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Benefits sought: People who want taste, entertainment as well as value for money.

PSYCHOGRAPHIC SEGMENTATION: It refers to the market segmentation based on the values, beliefs, interest and lifestyle of the target market 

Lifestyle: People who like to dine out, seek convenience meals and are not health conscious will be Fast Eddie’s customers.

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Attitude: People who are new age, easy going, carefree and like to change would prefer Fast Eddie’s.

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Activities: People interested in listening to music, gaming, reading or travelling would be the customers.

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Interests: People who are interested in free Wi-Fi, foody and preferring leisure activities would be the target.

GEOGRAPHIC SEGMENTATION: It is based on the location of the target customers. It depends on the city, region, state or country. 

Country: The target market is India.

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Province/state: The city selected is Chandigarh. It is a part of Punjab. It is also known as “The City Beautiful”.

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Urban/semi-urban/rural: The target market would be folks of urban and semiurban area. Chandigarh is one of the modern countries in India.

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Neighborhood: It would target well-built neighborhood with urbanization.

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Climate: The target market is not much affected by climate of the area as the products can be consumed in any climatic condition.

The target market for Fast Eddie’s would be based on these segments.

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PRODUCT STRATEGY Fast Eddie’s serve various products in Canadian market like veggie burger, beef burger, bacon burger, classic fries, party fries, pickle fries, chocolate milkshake and much more. On the basis of taste and preference of Indian customers, following products will be taken to Indian market. Veggie Burger: It is cooked by placing a flat patty made of cooked vegetables between round slices of bun. Veggie burger Size

Features (global) 4.5 inches diameter

Ingredients

A bun. Vegetable patty made of potatoes, carrots, beans, onion. Slices of tomato, cucumber, onion, cheese. Sauces- Mayonnaise, mustard sauce, tomato ketchup. Burger in fast Eddie’s printed napkin and a microwave safe box. (with green circle mark on it)

Packaging

Rationale (why?) It is normal size of a burger in India. These ingredients are loved by Indians. It would be loved by the folks.

It would help to keep it hot for more time. Mark would help to identify as vegetarian.

Chicken Burger: It is cooked by placing flat patty made of chicken between round slices of bun. Chicken burger Size

Features (global) 4.5 inches diameter

Ingredients

A bun. Patty made of minced chicken, ginger, garlic and onion and spices. Mayonnaise and mustard sauce. Burger in fast Eddie’s printed napkin and a microwave safe box. (with red circle mark on it)

Packaging

Rationale (why?) It is normal size of a burger in India. It would be a good Indian taste and flavourful. It would help to keep it hot for more time. Mark would help to identify as non-vegetarian.

Classic Crazy Fries: These are thin strips of deep-fried potatoes garnished with spices and sauces. 9

Classic crazy fries Size

Features (global)

Rationale (why?)

Small- 70 gram Large- 150 gram

For children, small would be adequate and for adults, large would be good. It is different from what is served in India and cheese is loved everywhere. It will look good and sauces can be spread on it.

Ingredients

Fried potato fingers with cheese and chilli sauce.

Packaging

Microwave safe paper-based cup with Fast Eddie’s logo.

Double Chocolate Crumble Milkshake: A frothy drink made of milk with flavor of chocolate crumbles and caramel. Double chocolate crumble milkshake Size Ingredients

Packaging

Features (global)

Rationale (why?)

Small- 12 oz Large- 20 oz Milk, cream, caramel essence, chocolate crumbles and liquid chocolate. Disposable airtight paper glass & straw.

Small would be good for children and larger for adults. Caramel would bring sweetness and make a good combination with chocolate. It would keep it cool for long time.

These products have been customized as per local needs. It would be Globalization with Localization which means that Fast Eddie’s would think globally but act locally. Difference in local and global product 1. Patty of burger will be fried as Indians like fried. 2. Burgers will be spicier. 3. Fries would be crispier, not soft. 4. Milkshakes will be sweeter.

Key competitive advantage 1. It would be as per Indian taste so it would be loved by all. 2. Mostly, salty fries are served in India so it would bring a change. 3. The packaging would be attractive.

PLACE STRATEGY

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Place strategy describes where a company decides to sell its products and the delivery channels chosen by the company. Fast Eddie’s place strategy would be based on following factors

Place strategy would be such that it focuses on area that has more gathering.

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It would be convenient for people to get the product.

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It would involve offline i.e. physical distribution as well as online through delivery apps.

CHANNEL

PLACEMENT

RATIONALE

Fast Eddie’s Restaurant

The restaurant will be located at sector-17, market complex. The restaurant will be a sleek building with beautiful infrastructure.

The location is considered due to the vast existence of clubs, restaurants, pubs and shopping complexes that experience high incoming traffic on most days of the weeks. Therefore, the location helps in attracting large crowds of all age groups including young individuals who are the main target group.

Drive - through

The drive through would be located besides the restaurant where it is easier for cars to pass by and collect orders.

The drive through provides easier access for people to take away their orders without having to leave their cars or wait at the restaurant to be served.

Home Delivery and dine in apps- Zomato, Swiggy and Uber Eats

These apps would be used for online food delivery orders & for checking seat availability for dining in.

Online ordering is rapidly increasing which in turn helps in increasing the product sales and providing information digitally regarding offers and promotions of the restaurant.

Certain differences in the delivery channels in Canadian and Indian market are:

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In Canada UberEATS, Skipthedishes are used whereas in India Zomato, Swiggy and UberEATS will be used.

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Indian restaurant will be open 24 hours a day as the young crowd of Chandigarh is basically ‘Night Owl’.

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The current market as well as the global market have the restaurant and drive through lane as in common.

PRICE STRATEGY Pricing strategy refers to method companies use to price their products and services based on production, labor and advertising expenses. The price includes the profits also that the company intends to make.[ CITATION Ric19 \l 4105 ] Different methods of pricing are penetration pricing, prestige pricing, discount pricing, price leader, price skimming and competition-based pricing. [ CITATION All20 \l 4105 ] Fast Eddie’s pricing strategy

Figure 2 Sell More with Discounts

A combination of competition-based pricing and discount pricing will be used. Price charged by competitors is kept as benchmark and a further 10 percent discount is provided on that. Since the brand is new and does not already have a loyal customer

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base in target market, using the discount pricing strategy and providing clear details about the offers and promotions in the restaurant would be the best option to attract individuals who are skeptical about choosing a new brand over the commonly preferred brands. PRICES FOR FAST EDDIE’S MENU CURRENT COUNTRY PRICE

GLOBAL PRICE

Veggie burger: $5

Rs. 120 ($1= Rs 53)

Chicken burger: $4.29

Rs. 140

Fries: small- $4.49, large- $9.99

Small- 70, large- 110

Milkshakes: $4.99

Rs. 150

Rationale behind pricing strategy 

Chandigarh is one of the most developed cities in India and is a place of youth who prefer night outs and are party freak. The purchasing power of people in Chandigarh is a bit high as the people are educated and belong to well earning families.

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The prices are set after comparing with burger king and McDonalds.

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The average burger price of competitors lies between Rs 100 to Rs 150. So, prices are set after considering how much a rational customer would be willing to pay.

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Initially, the prices are kept lower, and discount is offered and with passage of time, after building customer base, the discount would be removed.

It is expected that the decided price strategy will help generate maximum returns.

PROMOTION STRATEGY

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Promotion is the marketer’s attempt to make potential customers aware of the product and persuade them to buy the product. The promotion strategies differ from company to company. Each company has a different goal, so they have different promotional strategy. Fast Eddie’s has several goals regarding the promotional strategy. 

To make people aware about restaurant and products offered.

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To provide information regarding products, discounts and updates.

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It is done to retain the existing customers so that they don’t switch.

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It is done to search for new customers.

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It is done to compel customers to try the product. [ CITATION Pro \l 4105 ]

Fast Eddie’s will use a mix of different promotional methods. Traditional Advertising: These are paid forms of promotion delivered by traditional ways. These are basically non personal form of advertising and promotion. 

Newspaper Ads: Advertisements will be given in newspaper about Fast Eddie’s and regarding the offers and discounts p...