Market Analysis For Harvey’s Restaurant Expansion In Germany

Background of the Company (Harvey’s Restaurant)

In this present time, global marketing strategy is growing rapidly and organizations are intending to become local. This particular study covers the concept of global marketing strategy of Harvey’s Restaurant considering its expansion in Germany. The Foodchain is trying to move out of the country and looking forward to make sustainability by facing other food chains like McDonald, Subway and KFC. In order to develop the study the company background is going to be discussed with effective analysis of market is going to be done so that global strategy can be made for making the business process efficiency.

The organization, Harvey’s is a Canada based food chain and operates its business in across various locations of this country. It is noted that the chain is a business part of Cara operations. After its establishment in 1959, the organization has gradually increased its business and now is recognized to be among the most famous restaurants across the state.

SWOT analysis of Harvey’s Restaurant:

Strengths · Brand image Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper · Customer loyalty · Infrastructure · Food quality · Customization option as per the request of the customer	Opportunities · Demand of readymade food in the market · Franchising facility · Invention of technology to expand the business · Partnership with Swiss Chalet and Second Cup
Weaknesses · Limitation in variety of foods · Weak supply chain · Outlets are not visually attractive	Threats · Increasing competition · Health awareness among the people as fast food is causing a number of health issues including obesity, cholesterol and diabetes · Inflation in the economy

Table 1: SWOT analysis of Harvey’s Restaurant

Analysis of table: From the table, it can be found that the organization has a number of strengths and opportunities in the business along with a number of weaknesses as well as potential threats. The opportunity of market demand and strength of brand loyalty is helping the organization to grow in fastest manner. As the weakened supply chain has limited the variety of food options in the company, the competitors like Burger King and McDonald is making their business effectively. Based on the analysis the organization needs to develop global marketing strategy so that they can sustain in the business in the market of Germany.

In this present time the food service market of Canada is facing a huge competition and as a result the brands are developing its own strategy so that they can effectively survive in the market without any hassle. The organization, Harvey’s is famous for its customized sandwiches and burgers, onion ring, French fries as well as chips like other competitors like McDonald, Burger King and Subway. Instead of the tough competition in the market the organization is the fourth largest in terms of the burgers and second largest in terms of Canadian established food chain service. With the help of its food quality and serving process the organization has hold its place in the market. In fact, that factor has developed a brand image as well as customer loyalty. That is the most important prospect and providing the organization a competitive advantage in the market effectively.

International competitiveness is basically processes by which an organization or a business entity can achieve the higher degree of competitiveness are achieved at different level. In the market of fast food chain industry there are a number of International brands like McDonald, Burger King, KFC and Subway which has their own customer base and holds their own position in the market. As an organization, Harvey’s is trying to spread its business in Germany and hence it needs to set higher targets that can enhance international competitive factors of the business. Moreover, there are a number of regional brands are there which are also in the market, fulfilling the market demand. Effective global marketing strategy can help the organization out in surviving in overall market of German food industry. In fact, incorporation of the strength can help the business entity out to sustain in international competitive market as well.

Internal Analysis based on available information

Fast food business has a rapid growth in the market of Germany as these types of foods are quite famous among the Germans. Sausages, open-faced sandwich topped with ham and cheese, German Brotchen, and Kartoffelpuffer are the most preferable option in the market of fast food industry.  The overall details about the market are being described below.

Geographic region	Population	GNP of the market	Customer buying habit
Germany is a country of central Europe. Total Area: 357,022 km2 .	Total: 8.28 Crores (1.8% of Total World Population). Growth Rate: 0.22 % Male: 49.27% Female: 50.73%	Rate of growth (GDP): 2% GDP Rank: 4th Income per capita: $52,896 PPP dollars Inflation: 2.3% NI: $4,28,000 crores PPP dollars GDP: $4.2 trillion (nominal) $4.3 trillion (PPP) Ease of doing business rank: 20th Unemployment: 3.4% Average Gross Salary: €3,771/month Average Net Salary: €2,269/ month Main industry: Textile, Food and Beverage, Steel, Electronic, machine tool, machinery, chemical, cement, steel and Iron	Product-use patterns:  Online, outlet visit, street foods and restaurant visiting Product feature: Customized food Preferences: Open faced sandwich topped with ham and cheese, German Brotchen, and Kartoffelpuffer. Shopping habits: The Germans lead a high standard of living and they prefer sustainable or green products for the betterment of the environment.

Table 1: Description of the market

Available distribution channel: A distribution channel is more likely a business chain by which a service or product reaches to the potential consumers. In the German market the available distribution channel are ‘Sell through a VAR (Value-Added Reseller)’, ‘Sell through a Dealer Network’ and ‘Direct to End Users’. With the help of the distribution channels, the food industry is making its business effectively and meeting the customer demand.

Sell through a VAR	Sell through a Dealer Network	Direct to End Users
The process of customization of a existing product before sell with the hand of a reseller is known as VAR. In the franchise outlets, an existing food item, such as burger can be customized as per the requirement of the customer. This processes or channel can be a factor to attract the customers to the outlets of Hervey’s.	This is a process when an organization sells the products through a geographical network with the purpose of selling the products to the potential customers in respective areas. As the organization, Hervey’s has focused on the prospects of market expansion in Germany; they can consult the dealers to sell their products so that the products can gain popularity in the market. Based on the market result, the organization can effectively make an entry in Germany to penetrate the food chain industry with suitable strategies.	This is the direct interaction and communication of the company with the customers as in this process the organization sells their products directly to the customers via online marketing or campaigns. In this modern time, online food ordering has become popular as it serves food at the doorstep within a few minutes. In the product distribution prospect of Hervey’s, it is important to mention that implementation of online service can help the organization to distribute its products significantly.

Table 2: Details about the distribution channel in the market of Germany

Intended distribution strategy: The organization may apply the three-distribution channel for reaching the segmented customer base for effective business. They need to open outlets for Business to Customer relationship, invite franchise to take the distribution of the products and online delivery system so that the consumers can avail the products offered by the organization.

In market penetration with global marketing strategy advertising and promotion plays a vital role as it helps to reach the market segment for gaining popularity purpose. As a new organization has a threat of existing products in the market, proper promotion and advertising policies help the organization to become desirable among the potential customers.  In order to reach the target market, Digital marketing platform is the most suitable option to promote a product. Facebook, Instagram, Twitter, and other social media sites can help the brad to reach the target marketMoreover, Newspaper advertisement, Television commercials, and press release are the other way for promoting the brand as well. Distribution of coupons and sampling can be another way to attract targeted customers in the business products. With these effective policies of advertising and promotion, the organization has an opportunity to become popular among the customers in case they can successfully attain the taste of the customers. Advertising and promotion is just a way to make the product desirable among the consumers and to enter the market. Thus, the organization needs to focus on this factor to beat the threat of existing customers.

It has been stated before that the organization has a number of rivals in the business process who are providing the same materials to the customers and as a result, the competition might be high in the German market. McDonald, Subway and Burger King are already there, and they are providing products as per the requirement of the market. Thus, it would be difficult for the organization to make its customer base without effective business as well as marketing strategy. A comparative study among the competitors of the organization, Hervey’s Restaurant is important to draw so that the market research can be effectively done in the new market. It has been found that the burgers from McDonald are more popular than the food products of Hervey’s as McDonald uses healthy and nutrient vegetables within the burger which is not that much harmful like the other fast foods.

Competitive Advantage of Harvey’s

Similarly, Subways has taken the strategy of brown bread while customizing the sandwiches and burgers as the brown bread has more health quotient in compared to white bread. In respect to this factor, it is essential to state that modern consumers require healthy and nutrient foods as obesity has become a considerable threat for possessing a healthy lifecycle. Based on this, Hervey’s restaurant should develop their products in a healthy manner so that the consumers like to buy the product from the organization; as a result, the market penetration of the organization could be more straightforward in Germany Fast food supply industry.

In order to estimate the market size, the organization needs to conduct a market survey so that market demand can be understood and the customer segmentation can be done based on which the strategies can be developed. From the identified the market habit of the customer and population it can be stated that the organization needs to open an outlet in one of the largest city of Germany, Berlin so that the products can be marketed well. The market segmentation of age group 9-30 should be targeted, as this age group is most prone to fast food consumption. It has been found that the Market of fast food is mostly taken over by the organization like McDonald as the organization has successfully possess 7% popularity in burger sale and 34% popularity in French fries. However, there are other competitors of the industry like Burger King has 9% popularity in teams of business. Similarly, Subway has estimated its popularity of 13% concerning food supply related to the sale. Based on the market analysis Hervey’s has estimated its business growth, and market penetration about 5% to 7% as this organization is entering in the market in recent days (Refer to Appendix 1).

The German economy is the world’s fourth-largest economy and contributes around one-fifth contributor to the European GDP. The Government of Germany has developed many laws in order to host a brand from the international side. The economy of the country is open, and as a result, many outside brand is entering in the market. In order to make the process organized the government has enlisted German Corporate Law, German Labor Law, German Insolvency Law and Consumer Protection Law. The organizations are bound to follow the legislation within the territory of Germany. Foreign Trade and Payments Act, Foreign Trade and Payments Ordinance and Foreign Economic Law, are the legislation what is being used in the country Germany for sound foreign direct investment within the nation.

Market and business expansion in the global market is a new way of making profits of various famous brands. The organizations are developing various global marketing strategies for sustaining in the international market. Based on the effective implementation of Marketing Mix Framework the organizations are developing strategies for the betterment of their business. Harvey’s is a Canada based food chain that wants to expand in the market of Germany, and the organization needs to develop global marketing strategy considering the marketing mix which is a fundamental model of developing a strategy for marketing. Standardization is the primary strategy as regarding food every customers possesses the same taste. However, culture and environmental situation of the place may change the customer demand for food item. Based on the analysis of the place, the organization has standardized the food menu and has customized the recipe what may attract the market of Germany.

The marketing mix is a set of collaborative marketing tools of product, price, promotion, and place. Based on that factor any organization can develop marketing strategies to response the target market. The marketing mix of Harvey’s can be classified into four separate sections, as given below.

Product	A product refers to the item what an organization develops based on the demand of a market. Most of the time an organization comes up with an idea of a product based on the market analysis. Profitability and ethical prospect are the other factors for the product selection process. In case an organization decides to enter in an international market the preference of the targeted customer needs to be analyzed so that a product can be developed adequately. It has been found in the market analysis that the Germans like to have fast food and like sandwiches, Harvey’s needs to start local flavored sandwich as per the demand of the customers. Berger and fries also need to be developed based on the choice of the customers as well.
Price	Price is the amount what a consumer pays against their consumption of a product or service. Most of the time, the price determines the quality of a product. The consumers want quality products that value their money, and the Germans are quite particular about that.  For this case, it has been found that many existing rivals are there in the market it would be difficult for Harvey’s to make an entry in the competition. That is why effective pricing strategy considering discounting and coupons needs to be distributed so that the customers can have a try for the new product in a discounted price. Value added pricing for customizing the products may be included in the pricing strategy so that the customers can find value for their money with a quality product.
Place	A region has different food habit and there are certain places the food habit is different as well. The outlet or the shop n-needs to be developed in such places as accessibility of the products to the customers is an important factor. Market demand of fast food in Germany is very high and with effective marketing strategy, Harvey’s may be able to attract the consumers, all could be in vein if the accessibility of the shop is poor. Franchising and development of shop in various areas may help to meet the customer need. The organization may open an outlet in proper Berlin and distributorship can be provided to the local distributors for the urban market.    Online food delivery is the other process to distribute the products among the targeted consumer base.
Promotion	Promotion is a type of marketing communication by which product details can reach to the customers effectively. There are a number of promotional tools are there in the market the proper option needs to be chosen based on the advertisement policy of the organization. Promotional mix including direct marketing, indirect marketing, and advertisement may help Harvey’s to reach to targeted audience. As the organization has targeted 9-30 age groups, the social media marketing policy would be better for the organization as most of the people of that group are active on social media. Social media marketing, attractive promotional video, newspaper release, hoarding, leaflet distribution and sponsoring any event might be effective for promoting this brand in the new market. With the process, the organization can effectively come to the acknowledgment of the targeted market and can make them desirable.

Table 3: Marketing Mix

From the above-stated discussion, it can be concluded that globalization has opened the door of global market expansion for the regional businesses so that the organizations can effectively make more profit with quality products and effective service. International marketing strategy is the critical aspect that may help the organization to sustain in the competitive market. In the study, the prospect of Harvey’s has been analyzed considering the internal business analysis of the organization so that the competitive advantage of the organization can be identified along with international competitive factor. In order to sustain in the market of Germany, the organization needs to develop an effective marketing strategy considering the product, place, price, and promotion so that marketing mix can be sufficient for the organization. Moreover, the distribution channel and market segmentation need to be delivered effectively.

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