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Module: BU7018 – International Marketing Submitted to : Mr. Wilhelm Lobil.Assessment Number: J21818 Submitted by : Himanshu Shrivastava
Haldirams Market Entry Strategies
A report on finding emerging market and preparing market entry strategy
Assignment 2
BU7018-Itnernational Marketing Management
Assessment number: J21818
Submitted to : Mr. Wilhelm Lobil.
Submitted by : Mr. Himanshu Shrivastava.
Student number : 1426885.
Executive summary
Module: BU7018 – International Marketing Submitted to : Mr. Wilhelm Lobil.Assessment Number: J21818 Submitted by : Himanshu Shrivastava
The aim of this report is to identify and analyze emerging market for Haldirams private limited. The company is leading snacks and packaged sweet manufacturer in India, apart from manufacturing the company have its own retail stores all over the India and restaurants in northern region of India. The company’s turnover is above 500 million GBP. All contemporary issues will be evaluated to prepare marketing strategy for entering the market.
The major analysis done is Market analysis, SWOT analysis, PESTEL analysis, Cultural Analysis, Segmentation and Targeting, Market Entry modes, and Marketing Mixs, out of this SWOT analysis, Segmentation and Targeting can be found in appendix. Selection of these models is done on the basis of contemporary challenges a business face while entering new international market.
Additional supportive information can be found in appendix. Result of this analysis suggests that Haldirams have a significant demand in United Kingdom (UK) restaurant sector and company can grow in this market. All analysis suggested that company can enter with adaption product strategy with concern of healthy products.
This report concludes that Haldirams should enter UK market with business format franchising method of entry and their food quality should be great.
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Module: BU7018 – International Marketing Submitted to : Mr. Wilhelm Lobil.Assessment Number: J21818 Submitted by : Himanshu Shrivastava
ContentsIntroduction................................................................................................................................3
Market analysis..........................................................................................................................3
PESTEL Analysis.......................................................................................................................3
Political Factors......................................................................................................................3
Economical Factors................................................................................................................4
Social Factors or Customer analysis.......................................................................................4
Technological Factors............................................................................................................5
Environmental factors............................................................................................................5
Legal Factors..........................................................................................................................5
Cultural Analysis........................................................................................................................6
Hofstede Cultural Dimension.....................................................................................................6
1. Power Distance...................................................................................................................7
2. Collectivism vs. Individualism...........................................................................................7
3. Femininity vs. Masculinity.................................................................................................7
4. Uncertainty avoidance........................................................................................................8
5. Long Term Orientations.....................................................................................................8
Market Entry Method Analysis..................................................................................................8
Competitor Analysis...................................................................................................................9
1. Threats by competitive rivalry............................................................................................9
2. Potential new entrants.........................................................................................................9
Marketing Mix Analysis..........................................................................................................10
1. Product..............................................................................................................................10
2. Place and Physical Evidence Mix.....................................................................................10
3. Price Mix..........................................................................................................................11
4. Promotion.........................................................................................................................11
5. Process..............................................................................................................................11
Conclusion................................................................................................................................12
Appendix..................................................................................................................................13
Bibliography.............................................................................................................................15
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Module: BU7018 – International Marketing Submitted to : Mr. Wilhelm Lobil.Assessment Number: J21818 Submitted by : Himanshu Shrivastava
Introduction
Globalization has resulted companies to go overseas to expand their business and by entering international market helps a company to develop its business and a step towards growth. This report is focused on how Haldirams can expand their restaurant business in UK. Critical evaluation is done on Market analysis, PESTEL analysis, Cultural analysis, Market entry methods and Marketing Mixs for entering new market.
Haldirams is Indian leading company in snacks and packaged sweets, they also operate in restaurant sector but only in northern part of India having 21 restaurants. It is one of the oldest and authentic Indian snacks company which exports its product over 40 countries (Haldiram.com, 2015).
Market analysisTotal worth of UK restaurant industry £40 billion(Yahoo Finance UK, 2015); in this industry the total estimated worth of Indian restaurants is £3.6 billion(the Guardian, 2015). According to report published by Allegra Foodservice which is market intelligence firm during Restaurants leaders’ summit in Cannes suggests that in 2017 the market worth will be of £52 billion and increase of 30%(BigHospitality.co.uk, 2015). Indian population is 26.8% of total percentage of UK, and Pakistani population is 18.6% which have similar food taste as of Indians(Ons.gov.uk, 2015). Stars like David Beckham and Madonna have been also shown their keen interest in Indian cuisine(Bedell, 2002). While compared to British food fish and chips sales of Indian food is twice(The Economist, 1999).
PESTEL Analysis
PESTEL stands for Political, Economic, Social, Technological change, Environmental and legislative framework. PESTEL represents the factors of the country hence by linking the demand side of the product to the country factors, equilibrium position can be obtained for the demand and supply side of Haldirams(Bivolaru, Andrei & Purcaroiu, 2009). The synergy between PESTEL and SWOT(appendix) gives a broad and more precise analysis of complex framework and its multidimensional communication with the environment(Srdjevic, Bajcetic & Srdjevic, 2012).
Political Factors
This is that part which is directly controlled of influenced by government. Factors like taxation, legislation, health and food regulations, food standards etc. Some Economic factors like licences and inspection by Health and Food Ministry departments comes under this(Evans & Campbell, 2002).
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Module: BU7018 – International Marketing Submitted to : Mr. Wilhelm Lobil.Assessment Number: J21818 Submitted by : Himanshu Shrivastava
Excise duty on importing spices to UK is 12.5% with 0% sales tax, when compared to India any import of spices will cost 30% direct excise duty with additional taxes(DutyCalculator, 2015). For any food or drinks business VAT(value added tax) is 20%(WAIN, 2014). Corporation tax over company’s profit is 20% if the profit is less than 300,000 and if more than that it is 21%. For Haldirams as it not UK based company the corporation taxes will be on the only from the operating activities in UK(Gov.uk, 2015).
UK government also provide grant for any business that promotes the agricultural products, they provides up to 60% of the programme fund(Gov.uk, 2014). As India is acceptable country in list so for Haldirams to start their own farming for their restaurants this grant is significant.
Economical Factors
Factors like GDP, Interest rates, employment, inflation, encouragement for foreign investment are main components affecting a business in a new country(Gregoric, 2014).
GDP of UK increased by only 0.3% while expectations were of 0.5%, but however considering service sector GDP has grown by 0.5% which is considerable for restaurant business (Romeo, 2015). Increase in interest rates in UK will be slow as told by Governor of Bank of England, current rate of Interest on business loans is 5.9% pa, and rate of increase will be 2.25% now as compared to half of the historic average(Stewart, 2015). Unemployment ratio has fallen down to 5.5% till March 2015 while previous year it was 5.6%, additionally annual wage growth rate will be steady of 1.7% (Whiffin, 2015). Inflation is currently 0% in UK, while considering that inflation affects consumption lower inflation promotes consumption and hence notable for restaurants(Lawrie, 2015).
Social Factors or Customer analysis
Important factors to be considered are demographics eating behaviour, how often consumers eat in restaurants.
In UK, citizens of London eats over 31 times a month which is 11% increase since 2011, while in south-west the lowest growth occurs just over 15.6 times per month which is increased by only 2% (Thompson, 2012). Liquor is essential part of restaurants in UK market; average person expense on drinks is £15.6 accounted in June 2012(Eversham, 2012). All restaurants having dine in facility servers alcoholic drinks, so for Haldirams which is till yet non-liquor serving restaurant in India this consideration is important.
While considering religious and culture diversity in London, it is having almost every religion. Christianity 52.9%, Muslims are 13.5%, Hindus are 5.5% and Sikhs are 1.7%(Data.london.gov.uk, 2015).Restaurants in India under Haldirams name are vegetarian and while entering UK market and in London serving non-vegetarian is also important observation.
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Module: BU7018 – International Marketing Submitted to : Mr. Wilhelm Lobil.Assessment Number: J21818 Submitted by : Himanshu Shrivastava
Technological Factors
Entire hospitality industry is seen as least concern for technological investments, due to specific reason for cost cutting, in restaurant industry IT is concerned more as back office support(O’Connor & Murphy, 2004).
In UK consumers decision for restaurants is biased by media and internet sources(Sloan, 2004). For Haldirams it will be necessary to make its presence online and on websites that give reviews about restaurants. Advancement in technology has resulted in automatic tracking system for menu, so to keep update as soon as item sold. Kitchen display systems for tracking order, apart from these Table-management systems are most advanced and influencing development, for example software like Rock-Systems ProHost provides very effective table-management system. This service provides management of wait list and table availability. Production support systems are also now very important (like EATEC) which helps in sales forecasting, secluding of work force, planning of production etc(Ansel & Dyer, 1999).
Environmental factors
Use of natural resources in food industry is higher than other industry in UK, nearly 14% energy and 10% water consumption of total industry usage. Carbon emission by food industry is around 20% and waste is 10% and additionally 25% usage of heavy goods vehicle is contributed by this industry(Gov.uk, 2011). London Business Exchange provides EcoVate Business Toolkit(Lsx.org.uk, 2015) which allows business to evaluate and identify methods to reduce environment impact.
In UK Landfill tax is in placed where higher rate is £82.5 per tonne waste and lower is £2.5 per tonne(Ukbudget.com, 2015), so for Haldirams their food packaging and recycling scheme need to be effective to reduce waste.
Legal Factors
Food inspection is very vital part in restaurant industry in UK, hygiene and safety is priority hence laws are there for routine inspection and inspection on complains. Restaurants necessarily have to be covered with Food Hygiene Rating Scheme(Food.gov.uk, 2015).
Allergy laws has been introduced by Food Standard Agency(FSA) with DEFRA, this laws states that restaurants need to provide subtle elements of the menu items that contain the EU 14 allergens inside of the dishes they serve(www.allergyawarekitchen.co.uk, 2015).
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Module: BU7018 – International Marketing Submitted to : Mr. Wilhelm Lobil.Assessment Number: J21818 Submitted by : Himanshu Shrivastava
Cultural Analysis
Culture is extreme complex and it is multidimensional phenomenon which is not simple to define. As Kroeber and Kluckhohn (1985) documented that over 160 definitions are available for culture. According to Greet Hofstede culture is the aggregate programming of mind which recognizes the individuals from one group or class of individuals from another(Hofstede, 1997).
For any business trying to enter new market cultural analysis is necessary as firms need to change the way they do things at home and what they need to do in host country(Jobber and Watts, 1986). For Haldirams their mode of entry which in many ways is dependent on cultural differences. Culture impact on consumer’s decision making and buying behaviour is significant so it may affect the consumption. Marketing mix of company will be dependent on the host country culture(Ulrich, Hollensen and Boyd, 2014).
Hofstede Cultural Dimension
Hofstede presented a five dimension model of differences which can be used to define a national culture, those are Power distance, Collectivism vs Individualism, Femininty vs. Masculinity, Uncertainty avoidance and Long term orientation( Aharoni, 1992).
Comparison will be done between UK and Indian national culture to select specific marketing strategies for Haldirams.
Figure 1: Cultural comparison between UK and India(hofstede, 2015).
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Module: BU7018 – International Marketing Submitted to : Mr. Wilhelm Lobil.Assessment Number: J21818 Submitted by : Himanshu Shrivastava
1. Power Distance
The focus of dimension is that all individuals in a country or a society are not equal. It means that till what extent people expect or accept unequal distribution of power(Geert-hofstede.com, 2015).
UK is quite lower in PDI at 35, which states that there is believe to reduce inequality among people. There is a belief that equal attitude and behaviour should be present to each individual. However, in home country PDI is 77 which are quite high; this states that there is a hierarchical system where people do belief that some people have more power than other.
For restaurant business in UK(Geert-hofstede.com, 2015), this suggests that in staff there should be equal opportunity and all shall be treated equally, employee will be self driven and they will not solely depend on the managers while compared to India clear instructions and directions are required to work(Dreze & Sen, n.d.).
2. Collectivism vs. Individualism
This dimension focuses on the issue that the level of relationship a society keeps up among its individuals(Hofstede, 1997). It explains the self-image of peoples as “We” or “I”.
UK has one of the highest score of 89, while India has an intermediate score of 48. This suggests that India is collectivist country whereas UK is more individualistic. In UK personal fulfilment is considered to be route to happiness. In India, individuals decision will be biased with concern associated with family, neighbours etc.
From business perspective in UK every employee thinks for his own growth as first priority and hence target-profit system can be useful for Haldirams, whereas in India Employer-employee relation is more based on expectations-loyalty(Ramamoorthy, Kulkarni, Gupta & Flood, 2007). Promotion and hiring should be based specifically on qualifications, experience and performance(Geert-hofstede.com, 2015). Even the first advertisement should clearly state this message of growth on performance rather than long term future explanation.
3. Femininity vs. Masculinity
Feminine society is one in where personal satisfaction in terms of quality of life is the indication for success and standing out of the group is not splendid. In contrast, Masculinity society is where society is focused on competition, success and achievements; success means to be best in the field(Hofstede & Arrindell, 1998).
UK is a Masculine country at score of 66 which suggests that people are success oriented. It also suggests that people in UK have a clear performance ambition. Whereas India with score of 56 is considered to be Masculine also, but both forms are practices in India as power show and spirituality believe exists(Geert-hofstede.com, 2015).
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Module: BU7018 – International Marketing Submitted to : Mr. Wilhelm Lobil.Assessment Number: J21818 Submitted by : Himanshu Shrivastava
4. Uncertainty avoidance
The degree to which the individuals from a society feels undermined by ambiguous or obscure circumstances and have made convictions and foundations that attempt to keep away from this is reflected by UA index(Minkov, 2013).
UK and India have both low score on this certainly in comparison India have higher score with 40 and UK with 35, but there is huge difference between the culture, In UK people can change plans with new information and they are happy to face what day brings to them, while in India people believe that nothing is impossible as far as they know how to adjust. People try to bypass the system with their own ways while in UK every rule is strictly followed(Geert-hofstede.com, 2015).
Concerning business and restaurants in UK, Haldirams can use this opportunity as people seek new challenge in day to day life; making business more innovative will work. While the adjustment scenario will not work as everything should be well specified with goals.
5. Long Term Orientations
This dimension address the issue how every general public or society needs to keep up a few connections with its own past while managing the difficulties of the present and future(Hofstede, 2001).
Both UK and India share same score on this dimension of 51. Hence in UK dominant preference cannot be determined while in India concept of “Karma” is practiced hence strong tolerance for religious views(Geert-hofstede.com, 2015).
As business concerned with UK, similar to India but people are not so attached to customs and traditions, there is equality, very high creativity and as high individualism. Hence festivals offer by Haldirams like in India may not play very significant role(Indiaprwire.com, 2015).
Market Entry Method Analysis
There is an entire spectrum available for entering new market consisting of mainly of Contracting, Licensing, Franchising, Joint Ventures or Strategic Alliances and Greenfield Entry(HORSKÁ, 2014).
Contracting and Licensing for Haldriams in not significantly considerable as for contract it’s not applicable for restaurants and for Licensing Haldirams it is more applicable for manufacturing sectors and it’s beneficial for the firms who try to invest in country where political stability is doubtful additionally where resources are not available for direct investment(Dibb, 2012).
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Module: BU7018 – International Marketing Submitted to : Mr. Wilhelm Lobil.Assessment Number: J21818 Submitted by : Himanshu Shrivastava
Dual Distribution system is appropriate for Haldirams as it will include Vertical integration and market governance simultaneously in UK market. Business format franchising is the suggested market entry mode, as this dual system is most widely used in restaurant industry(Srinivasan, 2006). This will help Haldiram to initially open their own restaurant and with both vegetarian and non-vegetarian menus and with liquor. After developing a successful model franchising can be applied as products will be well defined. Franchising is also considerable because of its solution of capital and information constraints which faced by many during business expansion(Abell, 2010). Franchising provides better control in operations over vertically integrated channels and investment is lower whereas higher returns are expectable(Srinivasan, 2006). Franchising in EU(European Union) is more free than other business in terms of legislation restrictions(Dibb, 2012).
However there are some limitations with Franchising like risk of disclosing confidential information which may affect the business and additionally there is danger for franchisee exercise during extreme pressure while applying new policies and regulations(Tariq Anwar, 2011).
Competitor Analysis
Porter’s Five Forces is the one of the most widest tool used for competitive analysis, this tool help manager to evaluate the competition in the industry and then can assess the potential and current line of business(Search.proquest.com.voyager.chester.ac.uk, 2015). The five forces are Threats by competitive rivalry, Threats of Substitute Products, threat of buyer’s power, threat to supplier powers and potential new entrants(Porter, 2008). Only two forces will be discussed here as most relevant and rest of the three forces can be found in appendix.
1. Threats by competitive rivalry
Number of Indian restaurants in UK between 2012-2015 is 9500 in which the percentage in London/South east are 45.9%(Fedrest.com, 2015). This suggests that there is huge competition that Haldirams may face while entering to London.
2. Potential new entrants
Major threat for Haldirams is new entrants, as small restaurants can be opened easily and there are already huge presence of Indian restaurants so new restaurants can emerge the only advantage Haldirams have over others will be traditional Indian authentic brand image(Verma, 2007).
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Module: BU7018 – International Marketing Submitted to : Mr. Wilhelm Lobil.Assessment Number: J21818 Submitted by : Himanshu Shrivastava
Marketing Mix Analysis
Just because Haldirams restaurants food is successful in India it doesn’t mean that their restaurants food will be successful in UK market, for restaurants taste and local needs are first important factor to keep in account(Dibb, 2012). Mainly there are 4P for marketing mix, that is Product, Place, Price and Promotion but since importance of service sector there are 7P’s adding three new that are People, Process and Physical Evidence(Kotler & Armstrong, 2012).
1. Product
Restaurant is considered as Intangible product(services) and food served is the main product. As cultural analysis reflected the importance of non-vegetarian products and liquor Haldirams need to develop their new products and specially dishes in chicken as most popular Indian dish in UK is “Chicken Tikka”(HILLS, 2012). Market analysis suggested that population of Muslims is relevant and Asian Muslims are also in UK and hence all meat should be “Halal”(Ons.gov.uk, 2015). Social factors suggested that new products should be fat free and Haldiram need to develop new products which are healthier as per UK government laws(Parry & Powell, 2003). Feature of restaurants like cleanliness, attractive layout, disable assistance and children assistance are essentials.
Diffusion theory for products should be implemented that minimum six factors is necessary those are relative advantage, compatibility, trialablitiy/divisibility, Observability, complexity and price. These factors helps product to easily adopted by public(Dibb, 2012). Additionally International Product life cycle which in this case is international Service life cycle will suggest innovation across national boundaries(Onkvisit & Shaw, 2009). However, there is limitation with IPLC that it is too broad and no empirical result can be obtained from it(Onkvisit & Shaw, 1986).
2. Place and Physical Evidence Mix
For Haldiram to start restaurant London is most suitable place in UK due to high ratio of Indian and other Asians in London as suggested by market analysis, access to nearby transportation facility is another factor, providing delivery system is also considerable in London(Shah, 2012).
Place mix is very closely related to Physical evidence mix in service industry, for Haldirams factors like queues, waiting area and lighting are the main aspects as these provides physical evidence of the service that customer will receive, another aspect is how service will be delivered that includes well trained staff, people friendly which means the pre and post service experience of the customers(Gilmore, 2003).
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Module: BU7018 – International Marketing Submitted to : Mr. Wilhelm Lobil.Assessment Number: J21818 Submitted by : Himanshu Shrivastava
3. Price Mix
For Haldirams restaurant in international market the main factor to be considered in Price mix are cost and supply, exchange rates and cultures(Onkvisit & Shaw, 2009). For restaurants the fact that price is for the quality and service it provides, if customer perceives products as good quality then price can be high. Only thing in service industry is fair price for fair services(Gilmore, 2003). Fluctuation in market growth and level of competition is another factor to consider while deciding price mix for restaurants(Dibb, 2012).
4. Promotion
The main component of promotion mix is communication and influencing customers, Various tools are available like Advertising, publicity, sales promotion and word of mouth(Onkvisit & Shaw, 2009).
For restaurant the most important is social media advertising and word of mouth(Shah, 2012). As there is no physical product to promote entire promotion depends on “image” of service, promotion message need to be more focused on spreading and generating demand(Gilmore, 2003). The reason that restaurants are dependent of word-of-mouth because there is no evaluation available before one experienced it and hence it is very important(Longart, 2010). Most word-of-mouth communication takes place on Social media and hence it creates necessity for Haldirams to make their online presence for customer feedback and promotions(Dibb and Carrigan, 2013). For Haldirams to start up with mass marketing with Newspaper advertising, fliers, coupons, templates, telemarketing and social marketing is significant to attract a loyal customer base once initially these are successful mass media communication should be used like televisions and radio(Jackson, Titz, DeFranco & Gu, 2008).
5. Process
In the way which services will be delivered to customer is services process mix, this constitute of greeting customer, time delay, order taking, delivery of order and bill payments(Shah, 2012).
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Module: BU7018 – International Marketing Submitted to : Mr. Wilhelm Lobil.Assessment Number: J21818 Submitted by : Himanshu Shrivastava
Conclusion
There is already developed market for Indian restaurants in UK, however demand of Haldirams products exists in UK which provides and upper hand due to brand awareness. While there is strong competition present in London on the other hand lack of any major Indian restaurant chains is also considerable. Haldirams can enter UK market using Business format franchising and consider all the benefits that government and European Union provides. This analysis suggests that success of Halridarms restaurants in London is high but the fact that all analysis has its limitation and none of them are 100% accurate. So decisions should be based on generic strategies of company allying with companies vision and mission statement.
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Module: BU7018 – International Marketing Submitted to : Mr. Wilhelm Lobil.Assessment Number: J21818 Submitted by : Himanshu Shrivastava
Appendix
1. SWOT analysis of Haldirams.
SWOT acronym – Strengths, Weaknesses, Opportunities and Threats. This tool helps in simplifying the complex strategic problems by reducing information; this can be use as initial tool to help decision making for marketing strategy. This tool provides internal strength and weakness of the company('Is SWOT analysis still fit for purpose?', 2015). For entering foreign market this tool will help in providing information about Haldirams current positioning and strengths.
Strength of Haldirams is their brand awareness and brand recognition(Verma, 2007). Company already exports its product to more than 40 countries including UK. Packaged products are available in big names like Tesco and Asda. Supply chain is extreme strong ensuring the product availability. Weakness of the company is small investment in advertising which can be possible threat while entering foreign market. Advertisement helps in building consumer loyalty it also help in increasing sales through pervasiveness(Kotler & Kotler, 2009). Opportunities for Haldirams is entering foreign market in restaurants as demand of product already exists internationally due to high number of Asians in different countries. Threat for Haldirams is consumer behaviour towards unhealthy products, in UK consumers are more attracted towards healthy food, and it resulted big chains like McDonald’s to launch low-fat products in their menu(Parry & Powell, 2003).
SWOT has its own limitations like for company, distinct actions are essential to differentiate between weakness and competitive strength, for Haldirams there weakness can be transformed into potential strength while entering new market(Houben, Lenie & Vanhoof, 1999). Another issue related to SWOT is that there is no numeric calculation or data available which can help in statistical formation of results(Hill & Westbrook, 1997).
2.Segmentation
Market segmentation is important to recognize between geographical areas as well as between particular areas within local markets(Bojanic & Shea, 1997). For service industry segmentation can be done on basis of Demographics, Geographic variables and behaviour pattern, Demographics is done on the basis of Age, Income and gender, for behaviour is it level of satisfaction and recommendation intention(Kotler, 2013).
As Haldirams is Indian cuisine serving restaurant first segmentation will be done on the basis of Demographics that is Ethnicity and Race that is Asian, highest number of Indian food sales is in London(Ons.gov.uk, 2015). On basis of Geographic variables the region having highest sales in Indian cuisine is London and having maximum number of Indian restaurants in UK(The Economist, 1999). On Basis of behaviour variables a natural instinct of Indians to
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Module: BU7018 – International Marketing Submitted to : Mr. Wilhelm Lobil.Assessment Number: J21818 Submitted by : Himanshu Shrivastava
eat Indians food and as already designated Englands’s favourite “Chicken Tikka” have a high brand royalty(HILLS, 2012).
3. Targeting
Targeting is selecting a target market out of potential segments and prioritizing them(Dibb, 2012). The main factors on which selection of segment is based are size, accessibility, responsiveness, actionable and pertinence.
As per TARPARE model suggested by Donovan and Henley (2003) for Haldirams Targeting should be undifferentiated targeting where they should target all the segments as all concentrated at London(Hastings, Angus & Bryant, 2011), and hence targeting the entire segments will be recommended. Decision Tree Analysis (DTA) is used by many researchers, for analytical methods DTA enables to differentiate different customers into target segments(Hwang, Choi, Lee & Park, 2012).
TARPARE
T : The Total number of persons in segment
AR : The proportion of At Risk persons in the segment
P : The Persuability of the target audience
A : The Accessibility of the target audience
R : Resources required to meet the needs of the target audience
E : Equity, social justice considerations.
4. Porter’s Five Forces Analysis
1. Threats of Substitute Products
Threat of substitute products is very low in this Indian restaurants sector because it’s cuisine and rest of 9500 restaurants serves the same food.
2. Threat of Powerful Buyers
Restaurants are more dependent on fair price to quality, if Haldirams is able to achieve high quality with hygiene and considering healthy food factors buying power will be low(Gilmore, 2003).
3. Threats to supplier power
Major supplier for restaurants is raw material and liquor suppliers, for sustainable business strategy for long term Haldirams need to concern about this factors as any agricultural issues or new liquor laws can change result in increase in supplier power(Cheng, 2013).
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Module: BU7018 – International Marketing Submitted to : Mr. Wilhelm Lobil.Assessment Number: J21818 Submitted by : Himanshu Shrivastava
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Module: BU7018 – International Marketing Submitted to : Mr. Wilhelm Lobil.Assessment Number: J21818 Submitted by : Himanshu Shrivastava
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Module: BU7018 – International Marketing Submitted to : Mr. Wilhelm Lobil.Assessment Number: J21818 Submitted by : Himanshu Shrivastava
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Module: BU7018 – International Marketing Submitted to : Mr. Wilhelm Lobil.Assessment Number: J21818 Submitted by : Himanshu Shrivastava
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Module: BU7018 – International Marketing Submitted to : Mr. Wilhelm Lobil.Assessment Number: J21818 Submitted by : Himanshu Shrivastava
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