International Marketing Strategy Assignment

Under guide Mrs. Sally lo

Submitted by Prajapat Dilip

Student name : Prajapat dilip Student id Course Subject : 018800007970 : PGDBA : international marketing strategy



The hard rock cafe is the one of biggest chain in the restaurant world. It is well-known µcore¶ is an entertainment and leisure company that progress is going to successfully expand the hard rock brand though myriad music related, ventures breathing properties, collectible fashion and a great rock µn¶ roll attitude. It has expanded more then 160 venues in over 52 countries around the world, including 130 cafes and 13 casinos. The first hard rock cafe opened since 14th June 1971 in London, England. Hard cafe provides food according to customers and with live music.

BACKGROUND OF THE ORGANIZATION A hard rock cafe is becoming one of the most successful international recognized brands anywhere in world. y y More then 50 million customers in the year. Up to 12 million logo items sold annually.

Hard rock cafe merchandise is sought around the world then customers are giving good response to the hard rock cafe. y y More then 40% annual revenue of hard rock comes from merchandise sales An exclusive line of thousands of items are available for sale

The hard rock cafe has proud staff around the world. it have over 7000 staff worldwide. The hard rock cafes have the flexibility to shape according to local market condition. y y State-of-the-art PC based Audio/video content with built-in flexibility. Open plan or counter retail design layouts

y y y

Live music program Late night business program Wide range of bar packages

2. Country environments
I have got assignment on China. China is developing country then it has many opportunities for any new business, foreign investment and multinational company franchise etc. China is one of the world oldest civilizations. After 1950 china changed to economic policies in the republic china (Taiwan) transformed the island into a technology-oriented industrialized developed economy. China economy third largest after the united state and Japan . China is the fasted- growing economy around the world. It is largest trading nation. The second largest export and import of goods by China. Before enter the market I will make building of the knowledge base. Because in international marketing manager should recognize the need for domestic and international market research otherwise many time the single most important cause for failure in the international marketplace is insufficient information.

Environment is also play important role in international marketing. International marketing is affected by social, cultural, political, legal and technological environments.

International environments of marketing
I. II. III. IV. Social/ cultural environment Political/legal environment Technological environment Economic environment

Social/ cultural environment

It is basic thing in international market. Manager should understand social and cultural environment before entry in the country. Manager should know their test and price level. In China social and cultural environment is very favorable for company new branch because china consumers are constantly changing in modern life style. In this era manager should understand market competition and understanding. Consumer needs and want are continuously changing in the factors like demographics and life style. They go through many cognitive and behavior processes while making their buying and consumption decisions. Consumer social and cultural behaviors are essential and helpful for various business decisions related to product development, packaging, distribution, promotion, communication etc.

Political/legal environment
It is play major role in international marketing. If one country have good political relation with other country then company can start business otherwise international business is not possible. China is moving towards a fully established market economy. China politics take place in a framework of a single-party socialist republic. Chin maintains diplomatic relation with most countries in the world. China political leaders are encouraging foreign investment in the country. In china the most liberalized business sector, foreign investors are finding themselves dealing with representive from one or more sections of china¶s administrative hierarchy. To successes in a international market, managers need much more than deal business know-how. I must deal with the intricacies of china politics. Legal environment play important role for investment. Manager should know there law rule and regulation because political and legal change can influence our business. Franchise will be registration by company law after we can start business in china.

Technological environment
China technology is growing very fast. The starting of its economical opening-when the first 5-year plan were devised in 1979 ±China has being growing at an incredible speed, with its GNP numbers jumping from 44 billion dollars to 1.6 trillion dollars in just 20 years. In China we can contact to customers through those communication equipment like internet, television and radio etc.

Company has to lunch self web site on internet and we can book online order from customers. Web site shows our business smartness because current time every company have self web site. Customers can read our menu and send order to us without reach hard rock cafe.

Marketing through email We can get order by email like party reservation or any event. We can also advertise through email and it is very cheap way.

SWOT analysis is a strategic planning method used to evaluate the strengths, weaknesses, opportunities, and threats involved in new operation venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. SWOT analysis can be used for all sort of decision-making and the SWOT analysis template enable proactive thinking rather then relying on habitual or instinctive reactions.

Strengths of hard rock cafe
y y y y y y y y y y Hard rock cafe has a strong brand name in market. Hard rock cafe (rock n roll) theme restaurant Hard cafe is servicing to 50 million customers annually Hard rock have 12 million brand logo items sold annually Well trained management team, experience in international operation and management. Collection of music memorabilia High profile quality ± Higher standards Strong management to exceed the expectations of customers Over 7000 staff worldwide Strong of financial and capital resources, which can help the company to overcome any potential risks due to currency fluctuations.

Weakness of hard rock cafe
‡ Staff Retention rate is very high.


Pricing of product and Cost of opening new cafe due to the diversity of the landscape of the local area. Cultural and social disadvantage in local area.


Opportunities in china for hard cafe
‡ ‡ ‡ ‡ ‡ China is developing country and huge population. Adoption by people and people like change there. Brand name in china. Availability of ample resources and raw materials and employees cost are low there. 14 festivals in a year.

‡ Competition from local and international companies who are more familiar with local conditions (Competitors in china, Starbucks, Dio coffee, UBC Coffee, Yoshinoya , Origus already in operation) Vital Contracts & partners Loss of key staff and hiring and managing skilled workforce may be a problem.

‡ ‡

3. Some cafe requirement
After the PEST and SWOT analysis manager should follow some company processing requirement like development process. This time competition very tuff around the world then manager should make difference compare then other cafe. Manager should follow hard rock cafe development process. Corporate advisory services y y Cafe development (cafe design advice, access to approved consultants/contractors/vendors ) Operations (purchase and operating supply budget advise, access to approved manufacturers and suppliers )

Additional corporate services y y y y Marketing, sales and promotion, grand opening planning. Pre-opening program (budget planning) Pre-opening coordinator. Central services (business planning)

Training programmed y y y Approval of key management personnel. 12 weeks corporate manager in training program. On going training and development.

Advertising and marketing y y y Pre-opening adverting. Ongoing local advertising annually. Internet advertising.

Cafe standards y y y y Maintain corporate standards at all times. Assigned operating supervisor Audit schedule. Annual operational reviews.

4. Alternative

method of international market entry

Least involved 1. Production in home market A. Indirect export y Trading company y Export marketing company y Piggy back B. Direct export y Foreign distributor y Agent y Overseas market subsidiary Most involved 2. Foreign production

y Contract manufacture y Licensing y Joint venture y 100% ownership
Least involved 1. Production in home market (A)Indirect export
Indirect export that is not handled directly by the producer or manufacture but through following


Trading company

Company can sale through domestic trading company. Trader¶s are sale locally and distribute abroad. Company connects to buyers and sellers with in the same or different countries but does not involved in the owning or storing of merchandise seller. Usually seller gives sale commission to company.

y y y y A fast method entering foreign market. Without experience we can start business. Low investment required Risk chance very low

y y y y y Likely to carry competing lines. New product may not receive attention as desired by producer. Low financial gains No control over foreign market. No market knowledge acquired.


Export marketing company (exporting management company)

It is an external department through another company risk of market entry. Company can export their product through export management. Export management company will sale product in foreign market and also direct get all product from company without any agent. Export Management Company may be quite different. They can be either local or foreign, and operate on either fees or commission basis.

y y y A fast method of entering foreign market. No experience required. Export management company function for several firms thereby achieving economic scale. y Low risk involved.

y y y y Export management company effort spread over several firms. No market knowledge acquired. Low financial gains. Exporter has no control over overseas markets.


Piggy back method

One manufacturer uses its overseas distributing facilities to sell another company¶s product along with its own. It provides a carrier and a rider. The carrier sells may be on a commission basis. The carrier buys company product outright acting like independent distributors.

y y y y y It is very fast and easiest way to entering in the foreign market. Immediate access to foreign distribution channel through the carrier. It can be an effective method right panther is chosen. Low investment required Minimum financial gains


y y y y

Export success depends on the efforts of the carrier. No market knowledge acquired. No control on foreign activities. Minimum financial gains.

(B) Direct method
Company can direct export in foreign market. It is very expensive way for entering in international market but company can get every types knowledge and good experience of international marketing by this way. In direct market entry Strategies Company will establish self branch, agent and showroom etc.


Foreign distributor

Overseas company will appoint foreign distributors for international marketing. Company can appoint on contract basis or commission. They will import product according to market demand. Company can advertise in foreign market but product they will sale.

Advantage y Some market knowledge and experience can be acquired. y Better control on indirect export methods. y Relatively grater financial gains over indirect exporting methods. y Greater financial gains indirect exporting methods. Disadvantage
y y y y Extra cost incurred up own export department. Distributors can not be capable to handle large-volume orders. Limited financial resources of distributors Export success depends on distributor¶s effort.



Manufacture and overseas agent both can make agreement by government obligation. Company can appoint agent in overseas market and product can sale through agent. This way may be favorable for company because agent have good market about his domestic market and agent also know how to sale new product.


Overseas marketing subsidiary

Manufacturer sets up his own sales office abroad. In this way manufacturer can increase sale and gain profit by his planning and target.

y y y y Full control of overseas operations. Acquire market contact and customers relationship. Management gets first hand knowledge and experience of market. Greater financial gains.

I. II. III. IV. Require volume sale to justify this method. Investment required. Commitment of other resources and assets. High risk involved.

Most involved 2. Foreign production
Company can establish own manufacture plant or make contract with any foreign company and sale product in international market. I.

Contract manufacture

Foreign firm produces our product in foreign market and company will sale in abroad with company marketing policy. It will reduce our product cost then firm can face competition with there local company. Firm will get new experience with foreign partner. Firm can start business in short time period. In contract manufacturing managers should find reliable, honest and good reputed partner in foreign market.

y An attractive optional if company competitive advantage lies in marketing and services rather than in production. y y Contract manufacture obviates the need for plant investment. Make possible the firm to avoid labour and other problems that may arise from lack of familiarity with the country. y It is easy and low costly to terminate a manufacturing contract than to shut own the firm own plant. y Save transportation cost.

y y y y The local firm gets manufacturing profit. Find reliable and satisfactory manufacture in the foreign market is difficult task. The contract can create the risk training a future competitor. Quality control may pose a problem for the international firm.



In licensing agreement the licensor gives some right of value to the licensee in exchange for the target country to use the property of the licensor. Usually property is intangible, such trademark, patents and production techniques. The licensee firm pays a fee in exchange for right to use the intangible property and possibly technical assistance. In licensing small investment on the part of licensor is required because licensing has the potential to provide a very large investment. And one more reason can be occurred that the licensee produces and his products, potential returns from manufacturing and marketing activities may be lost.

y y y No requirement of capital outlay. Minimum risk involved. It is often the quick and easy way to enter in foreign market.


Many government favours licensing over direct investment because licensing bring technology to the country.


Save of tariff and transport cost.

y y y Licensor can be establishing its own competitor. Limited returns it provides to the international firm. High taxes levied on royalties in some countries.



The firm produces domestically all or most of the components of its product and ships them to foreign market to be put together as a finishing product. This way can be beneficial for firm because firm can direct sale in foreign market. It will be save many resource of company like human resource, capital and technology privacy etc.

y y y X market knowledge acquired. Save transportation costs. Avoid tariff barriers.

Disadvantage y Capital investment is required in establishing an assembly plant. y Only large market can justify local assembly. y Greater financial risk. y Exposed to political risks.

Joint venture

In joint venture µpartnerships by which two or more firms create an entity to carry out a productive economic activity and take an active role in decision-making¶. There are some common objective in a joint venture, market entry, technology sharing, joint product development and risk/reward sharing. Such joint ventures are favorable because two or more

firms have strength, like the partners size strategic goals converge while their competitive goal diverge and market power and resource are small compared to the industry leaders.

y y y y Management commitment. Risk reduction. Joint venture allows parent company control than non-equity joint ventures. Long-run market penetration.

y y y y Need for greater investment of capital and management resources. Potentially greater financial risk than with non-equity approach. High political risks. Possible conflict with local partners.


100% ownership (wholly-owned foreign production)

100% ownership firm can establish wholly-owned subsidiary and plant etc. It involves the transfer of resources technology and personnel. 100% ownership provides a high degree of control in the operation and the ability to better know the customer and competitive environment. 100% ownership by international firm of foreign production through Greenfield (new) or acquisition approach. Once the choice of plant location has been made and the entry mode decided a whole series of decision need to be made regarding the role and function of the subsidiary. These include;  Decision regarding the production and marketing role of the subsidiary.  Parent company/subsidiary control.  Reporting relationships.  Staffing policies.  Financial management policies.  Management political rick.


y All profit comes in the international firm. y Permit international firm to acquire greater experience in international operational and
better market control contact.

y With no foreign partner, no inefficiencies arise from conflict of interest. y Allows the possibility of integrating various national operations into a synergistic
international system.

y y y Cost in term of capital and management resource. May face shortage of management personnel. International firm may be deprived of local knowledge and contact of national partner.

5.Marketing mix (4p¶s)
Optimizing the marketing mix is the primary responsibility of marketing department. By offering the product (tangible product) or services (intangible product) with the right combination of the four Ps marketers can improve their results and marketing effectiveness. Making small changes in the marketing mix is typically considered to be a tactical change.

Hard rock cafe offer food product. Hard rock cafe should offer there local test because consumer always like traditional test. And there may be conflict between local tests. Sold foods like sandwich although increasing their market share, are usually not imagined healthy and this will be risk our product could facing. . The product would necessary to be placed as a healthy modern way of digesting and energizing for customers.

The price is the amount a consumer pays for the product. It is determined by a number of factors including market share, competition, material costs, product identity and the customer's perceived value of the product. The manager may increase or decrease the price of product if other stores have the same product.The product's price has to be affordable but these should be

high-grade that consumers wish to give for the health benefit also for the modern and "higher condition" image it will offer. The risk in China is so fail in selling the product value and to set the premium to be higher than consumers are willing to pay.

Promotion represents all of the communications that a manager may use in the marketplace. Promotion has four distinct important elements: advertising, public relations, word of mouth and point of sale. A certain amount of crossover occurs when promotion uses the four principal elements together. Advertising covers any communication that is paid for, from cinema commercials, radio and Internet adverts through print media and billboards. Public relations are where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word of mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum. Sales staff often plays an important role in word of mouth and Public Relations. It is very important in modern time without good promotion business is not possible anywhere.

Place of marketing
Place represents the location where a product can be purchased. It is often referred to as the distribution channel. Moreover the product should be available to the higher income population that is not only willing to pay premium but also interested in Modern-status image. Large cities are more likely to be the homes of this sector of the population. I have chosen Shanghai and Beijing in China. That place is high populated and developed city. There good opportunity for new business.

6.CONCLUSION Final decision has taken that hard rock cafe will expend their business in china. When planning to expand the hard rock café business there are many things to make sure the viability of the business planning. In cafe sector and the region are both a growing sectors that hard rock cafe could profit from investment, research and development, and resources into. China is developing country then we hope business will be going successful there.

Reference 1. B 6014 Information Marketing Strategy Published by THAMES BUSINESS SCHOOL 2008. 2.

WEB y y y y www.haedrockcafe.com www.google.com www.wikipedia.com www.yahoo.com

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