International Marketing

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International Marketing November 20, 2006
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Team Members

• Marjorie Garcia
• Virginia Hatcher
• Bryce Renning
• Dimitri Constantine
• Alfred Ayoub
• Tanya Alvarez

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Overview

• Overview
• United Kingdom profile
• Segmentation, targeting, positioning
• Product and branding decisions
• Promotion
• Placement/distribution decisions
• Pricing decisions

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United Kingdom Profile

• Economic and Infrastructure Environment

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United Kingdom Profile

• Cultural Environment
• Annual Growth Population is 0.3 at 2004
• Persons under age 15, is 19
• Urban Population 90, and Urban Growth is 1.5
• Literacy 99
• Common Language
• Legal Heritage
• Similar Business Institutions Practices
• Hofstedes Characteristics (LOW)

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United Kingdom Profile

• Political, Trade and Legal
• Very Stable
• Not significant trade barriers
• No Restriction on the Transfer of Capital or
  Repatriation of Profits

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United Kingdom Profile
Bennigans SWOT Analysis

• Weakness
• Americanized menus
• High leadership turnover

• Strengths
• Offers variety of menus
• Good and fastest lunches, family dinner
• Sports atmosphere

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United Kingdom Profile

• Opportunities
• Lower tariffs (beer importing)
• High beer consumption in UK
• Same language and legal system
• Stable economy

• Threats
• Restaurants already in the market
• Costs of real state

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Segmentation

• Population
• London 7.2 Million 51/Hectar
• Birmingham 970K 43.6/Hectar
• Liverpool 470K 43.84/Hectar
• Leeds 445K 40.59/Hectar
• Sheffield 440K 39.49/Hectar

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Target Consumer Groups

• Lunch Business professionals 25 to 45 male and
  female
• Dinner Families parents under 40
• Happy Hour After work crowd- 25 to 45 male and
  female
• Late Night 18 to 26 Single male and females

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Positioning

• Wide variety of Domestic and Import Beers
• Large Delicious Menu
• Company of Friends
• Sporting Events
• Young, Hip, Trendy

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Marketing Objectives

• Objectives criteria
• Labor costs
• Building costs
• Cost of food
• Equipment depreciation
• Using this criteria this we estimate a 20,000
  pounds of sales per week and market share
  penetration of 7-10

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Product Decisions

• U.S. Positioning
• Product differentiations
• Branding decisions
• Language
• Competition
• Media
• Consistency
• Need for tailoring to local cultures

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Promotion

• Four Segments
• Lunch, Dinner, Happy hour, Late night
• Communication Objectives
• Fun-loving, sports atmosphere
• Single men, single women families
• Ages 18-45
• 20,000 GBP Income

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Promotion

• Waterfall strategy
• Promotional mix
• Advertising, public relations sales promotion
• Advertising
• Radio and Television
• Newspaper
• High- traffic billboards

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Promotion

• Public Relations
• Advertising in business journals/magazines
• Recruiting franchisees
• Workshops for potentials
• Sales Promotions
• Drink specials
• Discounts
• Weekly food specials

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Placement/Distribution

• Licensing by way of Franchising
• Benefits
• Little initial investments
• Steady flow of royalties each month

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Placement/Distribution

• Requirements of Franchisee
• Must have 5 million total assets
• Must have 1 million in liquid assets
• Must purchase the property
• Must build the property

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Placement/Distribution

• Services Bennigans Provides to Franchisee
• Assist in identifying suitable locations
• Ensure no other Bennigans in area
• Provide training and national advertising
• Provide promotional material
• Services Bennigans provides to Franchisee
• Assist in identifying suitable locations
• High traffic areas

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Pricing Decisions

• Flexible costs plus pricing with a Geocentric
  Approach
• Average price 8.99 to 15.00
• Average price (Chilis) 7.95 to 15.25 GBP

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Pricing Decisions

• Target market is Price Sensitive
• Unemployment
• Inflation
• Disposable income
• Average Household Spending per Week
• 35 GBP restaurants and hotels
• 12 GBP alcoholic drinks and tobacco

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Distribution Costs

• Low Costs
• Franchise
• Cost incurred by Corporation
• Design costs for promotional materials
• Licensing of special items (i.e. Black Angus
  Burgers and Guinness Grill Sauces)
• Export costs

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Questions Answers