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MKTG 732 International Marketing Plan – Group Project Final

International marketing (Centennial College)

Studocu is not sponsored or endorsed by any college or university

MKTG 732 International Marketing Plan – Group Project Final

International marketing (Centennial College)

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Running head: MKTG 732: International Marketing Plan – Group Project 1

MKTG 732: International Marketing Plan – Group Project

Adnan Mehdi 301091381

Andrei Mosquera 301112834

Keshav Agrawal 301108922

Maria Maldonado 301119119

Vriti Kalia 301108877

Centennial College

MKTG 732 002 - International Marketing

Professor: Lesley Lessard

May 27, 2021

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1. Executive Summary:

Swiss Chalet, a Canadian casual dining restaurant, was established in 1954. The

company is based out of Toronto, Ontario. Over the decades of their presence they have

established themselves as an icon of Canadian-Family style dining (Taylor, 2016). Following the

success with opening as a Bar-b-Que grill in Montreal its founder Maurice Mauran moved to

Toronto after finding an investor and opened the first Restaurant in Bloor Street West. (Taylor,

2016). Swiss Chalet is known for their rotisserie chicken sided with fries and smashed potatoes

as the iconic dish. The founder Maurice Mauran also founded Harvey´s, a famous hamburger

restaurant and has been managed by the same food chain as Swiss Chalet (Taylor, 2007).

Swiss Chalet has more than 200 restaurants across Canada. It is a signature brand around

Canadians and despite their efforts to become international they have not found success outside

the Canadian market. In 2011, the food chain closed locations outside Canada which were

notably in Buffalo, NY and Puerto Rico. (El nuevo dia, 2011)

Recipe Unlimited Operation, previously named Cara Operations, is the largest Canadian

operator of full- service restaurants (Recipe, n.d.). Along with Swiss Chalet, Recipe Unlimited

Operation owns 19 other brands which include, The Keg, Harvey´s, Montana´s, Kelsey´s, St-

Hubert, New York Fries, and so forth.

In recent times, despite efforts to attract new and younger audiences, Swiss Chalet is

facing an aging market while constitute its customers in the 55+ years age gap (Dallaire, 2017).

Swiss Chalet partnered with Hockey Canada, as an “international marketing partner” with the

aim to attract new customers nationally and internationally and it is also an intensified effort to

attract younger markets. (Cision, 2021)

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Amidst complicated success over years Swiss Chalet came up with a revolutionary idea

that changed the profitability of the company. “Grocery Products” of the most popular items of

the restaurant. The grocery products made a significant improvement for the company and placed

Swiss Chalet as the second most profitable company for Recipe Unlimited Operations. (Recipe

Unlimited Operations, 2020)

This Report provides insights on how Swiss Chalet can go beyond borders to markets like

Australia. The Economy is an open market economy and has minimal restrictions on import of

goods and services. The commercial relationship between Australia and Canada is strong and

diversified. Both countries have developed their relationship based on a shared set of values in

various avenues like trade, academic exchange etc. & they have also entered into free trade

agreements. This needs mention, the per capita GDP of Australia is higher than Canada. The

consumer spending is as high as 56% and shares similar industry traits of having a higher ratio of

Professional Pool in Service Industry (78.8%) which creates an opportunity for Swiss Chalet.

This Report aims to provide insights on competition, consumer and market conditions which

support the expansion to Australia for Swiss Chalet.

The Australian Economy is known as a highly developed market economy with GDP

worth US $1.376 trillion. The economy has not experienced any economic recession since July

1991 and remains to be stable and resilient. Australia holds the position of having the 2nd position

with regard to median wealth per adult. Both Canada & Australia enjoy free trade arrangements

due to which the business prospects for Swiss Chalet is favorable towards its expansion.

Australia stands in the 14th position in the list of Ease of Doing Business with a score of 81.20

(World Bank, 2019). Canadian Dollar is one of the major currencies having a top spot in

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Australian Market with a flow of investments of CAD $ 66.0 Billion (Statistics Canada, 2018).

Both Canada & Australia have a country risk rating of 7 (World Security Risk, 2018).

Through this report we address the opportunities that Swiss Chalet could have by entering the

Australian market by identifying the risks and characteristics of the target market. The proposed

marketing mix to enter the Australian market outlines the target market and identifies reasons

why it could or could not be an opportunity for the Swiss Chalet.

The recommended strategy for market entry into Australia is recommended around

Product, Promotion and Pricing.

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2. Brand Analysis:

SWISS CHALET - BRAND IDENTIFICATION

Brand Name Swiss Chalet

Background The first Swiss Chalet was opened back in 1954 in the Bloor Street West area of Toronto. Maurice Mauran of Montreal engineered the brand along with another businessman. Before opening in Toronto, the founder introduced his barbeque style chicken in his Chalet-Bar-B-Q which was inspired by Swiss method of making chicken. This resulted in the brand being called “Swiss Chalet”. After the instant success of the first branch, other two were opened (Taylor, 2016). Today, over 30 Canadian cities from different regions and territories have 200 franchises of Swiss Chalet.

Milestones & Results

Swiss Chalet celebrated their 65th anniversary in June, 2019. To celebrate this milestone, they offered a one-day special offer to all their customers. The opening of the first store was back in 1954 (Media Ltd., 2019).

Target Market 25-49 years. They mainly focus on bringing together families, which is why their slogan is “Family Happens at Swiss Chalet” (Brown, 2021). But now, they are targeting millennials too.

Main Competitors Nationally and Internationally.

In Canada- Barbeque Nation, Smokey Bones, Islands Restaurants, Quaker Steak & Lube, Houlihan’s and Cowboy Chicken (ZoomInfo, n.d.). In Australia- Hungry Jack’s, Red Rooster, KFC, Guzman y Gomez, Oporto, Nando’s, Grill’d and Subway (Birot, n.d.).

Relation with customer

It tries to stay in touch with the customers by sending them emails to know about the customers’ experiences. Also, it promotes the concept of a family eating together and emphasises on spending some quality time with the family. It is also one of the famous restaurant chains in Canada when it comes to their customer service (Brown, 2021).

Current Marketing Plan

It has improved its marketing plan by targeting millennial families but at the same time stayed connected to its original plan which focuses on family dining together. Its television commercial highlights how millennial families rely on text while deciding their dinner plan. As a result they have introduced a new tagline for their brand “Any day, any way, dinner’s ready at Swiss Chalet”. It has improved its mobile application so that people can order through Uber and even schedule their weekly orders together (Singh, 2017).

Brand´s Current Goal.

After unveiling the new design and menu in 2017 the brands current goal is to provide delicious options for everyone on the table by forging a welcoming, cool and casual environment (Media Ltd., 2017). Another goal they have is to develop the newly opened grocery section (Swiss Chalet, n.d.).

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SWISS CHALET - SWOT ANALYSIS

Strengths Weaknesses

*Well positioned Canadian brand.

* Exposure in over 30 Canadian cities from different regions and territories with 200 franchises.

*Great profitability (third more profitable for the Operator)

*Supported by 19 other brands and the biggest Canadian operator.

*Diversification of product and services. (Grocery Products over metro, fortinos, giant tiger and others)

* The more franchised restaurants the more difficult the decision making for the company represents.

*Internationalization decision relies on the operator (Recipe Unlimited Operations).

* The food doesn't appeal to the millennials

Opportunities Threats

*New image and new partnered marketing strategies.

* Market opportunities with countries with similar culture and background.

* Ageing customers.

* International chains like (Popeye’s, KFC and others)

3. Country Analysis:

Australia is the largest country in the world and is also the smallest continent.

Australia is situated between the pacific and the Indian ocean. The major economic and cultural

centers are Melbourne and Sidney. Its population as of 2019 is 25.36 million (Data Commons,

n.d.).

Australia is an incredible and intriguing country, with an Aboriginal populace going back

a long time. After World War II and the Vietnam war many immigrants shifted to Australia.

While Australia was trying to divert water (Snowy Mountain Scheme) from the rivers they

employed 100,000 people out of which most of the workers (70%) were immigrants. Many

people from diverse cultures are residing in Australia (Insider Guides, 2016).

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Trade and Economic Situation.

The two-way trade between Australia & Canada was at $4.1 billion in 2018. Furthermore,

the two- way direct investment of Canada to Australia amounted to CAD $ 66.0 Billion

according to statistics Canada and investments from Australia were CAD $11.5. Australia is

ranked to be 8th Largest direct investment nation by Canada and while Canada is ranked 12th by

Australia. Many Canadian Companies consider Australia as a good and favorable location to

invest in the south east Asia Region. Australia and Canada share friendly and highly productive

relations which can be leveraged by Swiss Chalet.

With globalization it is seen Australians are more receptive to international brands

especially those from Canada. According to Data 34% of Australians aged 14 and above said

they are more likely to buy Canadian Brands in the year 2006. Australians are known as early

adopters as they prefer to buy new products. It is important to mention; Australians have a good

standard of living due to the minimum wage policy which helps them to maintain a lifestyle.

According to fair commission trade, the minimum wage is AUD $ 18.93 per hour. With the

average minimum wage of Canada being CAD $14 Australians have more buying power. This

takes into consideration of the currency exchange being almost at par (1 AUD = 0.94 CAD).

Given this it is favorable for Swiss Chalet to expand their opportunity into the Australian Market.

The GDP per capita for Australia in 2019 was AUD $ 53,825 which in Canada was CAD $

46,213. Australia's Preliminary Estimated Resident Population (ERP) as of September 31, 2020

was 25,693,059. Since 2019, the number of people living in Australia has increased by 0.9%.

Political System

The Political Stability index measures the ease with which the government can be

disrupted or weakened using any prohibited or violent means such as violence or terrorism. From

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the below graphical statistics it can be concluded that doing business with Australia is safe as it

substantially generates value. Australia is recognized as one of the destinations to have

transparency and well-articulated regulations to welcome investments. Australia has vibrant

economic policies and flexible exchange rate(s). The Government of Australia has more

favorable trade and investment policies for the United States & Canada in comparison to that of

Asian Countries. (Economic and political outline, 2019). The welcoming climate implies that

Pajar Canada can expand their business into Australia.

Legal/ Regulatory System

Australia has a series of policies for companies involved in the food and beverage

industry, which has allowed it to have a high standard when it comes to quality[CITATION

Ove19 \l 1033 ]. Regarding international trade, Australian food regulation is divided into tariff

and non-tariff barriers.

Food products entering Australia require classification and declaration to the Australian

Border Force. This entity establishes import restrictions, tariffs and quotas, export subsidies and

domestic support for agricultural products. Additionally, food and drink imported into Australia

must comply with strict biosafety requirements, the Food Standards Code, and the Imported

Food Control Act of 1992. Under this legislation, imported foods are inspected and controlled,

through a border inspection.

Social and Cultural Forces.

Australia with a high degree of religious freedom and diversity, is a secular country. In

the Australian society religious institutions play a huge role. They own a huge number of

schools, hospitals etc. The most seen religion in the country is Christianity. After the abolition of

White Australian Policy in the 1970s, the country saw a rise in non-Christian religions in the

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country. Australians avoid overt display of religiosity. To maintain a balance between their

private life and work life, people tend to avoid stating their religious beliefs at work. Atheism is

also unappreciated in the country. Jewish, Islam, Hindu, Buddhist and Sikh communities also

reside in the country (Cultural Atlas, n.d.). Moreover, Australians tend to be direct and clear

while doing business communications (Cultural Atlas, n.d.).

4. Market Analysis:

a. Region

Sydney and Melbourne are the most densely populated regions(Appendix) establishing

the restaurants in those areas can prove to be profitable for Swiss Chalet in capturing more

people and developing their own market share. Transport vehicles like trains, busses, ferries,

light rail and cars are prominent in Sydney (NSW Government, n.d.). On the other side

Melbourne has trains, trams and busses (Victoria State Government, n.d.). The modes of

communication in the country include Social Media (Facebook, Twitter, Instagram, LinkedIn,

Google+ ), Smartphone or Mobile Device and Email (Lin, 2017). Culturally the eating habit of

the Australian population is different. The poor diet report from the Australian institute of health

and welfare from 2019 revealed that the adults and children consume 5-7 and 3-8 servings of

discretionary food respectively on a daily basis. The intake of sugar sweetened drinks on a daily

basis is also quite high. An average Australian spends 32% of its income weekly on fast foods. A

big factor for this was the price and how easy it is to get fast food specially for the young

population. Moreover, on an average 90% of the adult population consumes packed snack food

on a weekly basis (AIPT, 2020).

b. Market Segmentation

Age Groups- Currently Swiss Chalet in Canada is experiencing a decrease of customers

as most of them belong to the Baby Boomers (1946 - 1960) and Generation X (1961 - 1975). To

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enter the Australian market, we are focusing also on Millennials (1976 -1990) and Generation Z

(1991 - 2005). According to the Australian Bureau of Statistics, Sydney and Melbourne are the

most densely populated cities in the country with an increase of 1.1 and 1.6 % in population

respectively (Australian Bureau of Statistics, 2021). Establishing the restaurants in those areas

can prove to be profitable for Swiss Chalet in capturing more people and developing their own

market share.

c. Advertising and Promotion

As Australia is a low context culture country, the advertisements should be direct with

less flashiness so that people do not find it irritating. Marketers have to focus on presenting the

direct picture of the product so that people get allured by the advertisement but do not find it

repulsive. Australia uses both the traditional methods of advertising like television, radio,

billboards transit and digital methods like social media, mobile app, emails etc.(Business.gov.au,

2020). Brands in Australia use sales promotion like gift with purchase, product giveaways,

vouchers, offers, loyalty points etc.(Jess, 2017, #). Several pricing strategies like cost based,

competition based, value based and product based are used by the brands in

Australia(Business.gov.au, 2021). The demand by the people also plays a huge role in

determining the price of the product.

5. Competitor Analysis:

a. Competition

Competition

Name

Number of

Restaurant

/Stores

Main Goal Target

Market

Diversified Products.

(grocery frozen

meals)

Nando´s 261 total restaurants, 21 Owned, 3 Offices and 240 franchises.

Nandos is aimed at people who want to enjoy a nice casual dining restaurant in a nice atmosphere.

Young population between 18- 35 of age.

Yes. Sauces, marinades and dips are sold in supermarkets

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Popeye´s There are 230 stores and 35 new stores are planning to open in the next six years.

Quick-serve restaurant

People aged between 25 to 49 years old

No

Kentucky

Fried

Chicken

160 stores owned by KFC and 480 franchises.

It aims to not only sell chicken but to offer quick service and open restaurants across the globe.

Young population between 18- 55 of age

No

Red Rooster Over 360 restaurants throughout Australia

To open more franchisees in order to join the next leg of their journey.

People aged between 15- 29 years

No

b. Competitive Positioning:

Australia’s average age of population is 37 years. Individuals of this age are generally

working and have a fast paced life. So, the lunch box meal offered by Swiss Chalet shall be more

attractive to customers. Also, Swiss Chalet offers scheduled weekly deliveries that can be

ordered by customers at one go which is not offered by any other fast food restaurant. Moreover,

Australians are becoming more inclined towards nutritious food. We have seen a trend that many

fast food restaurants are failing in Australia as they are not able to offer nutritious options in their

menu. So, Swiss Chalet will provide much healthier options in terms of fast food than its

competitors which can provide a major competitive advantage to the restaurant. Also, Swiss

Chalet has planned to opt for a penetration pricing strategy to capture larger market share and to

lure customers. The fast casual dining and the innovative ambience of our restaurant will attract

both the young and old generations and will help to reduce the waiting time as well as boredom

felt by customers at certain times. Also, the presence of Swiss Chalet in frozen products industry

will also provide an added advantage to the restaurant.

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6. Marketing Plan

a. Marketing Objective

The Marketing Plan constitutes the re- structuring of the “restaurant/ dinning” idea into a

trendier and convenient structure. The project is looking to re-position Swiss Chalet into a more

accurate target market that better suits the Australian Market. Swiss Chalet is trying to reframe

its position within Canada as the market it is currently located is no longer in use. The dining

market has experienced a decrease in preference in consumers. This could be attributed to trend,

fast-paced life and the current distribution of the fast food market.

Grocery Products

Enter Australian major grocery stores and retailers with the frozen products into “typical

Australian” could help the market penetration and the positioning of the brand into the “Core

Australian” culture.

Through Apps, Swiss chalet would try to increase the communication with younger

customers. The improved and increased communication is intended to offer promotions and

loyalty points. Engage the young markets and work as effective and practical advertisement

Public Relations for Swiss Chalet in Canada are related to core cultural values as hockey. The

intention is to Attempt for a strategic partnership with a Rugby sports team.

b. Marketing Strategy

Strategy 1: Compacted menu and facilities (Pricing and Product)

The intention is to minimize overhead costs in order to make it a more attractive

franchise for investors.

One strategy to enter new markets is to compact the menu and keep on adjusting it and

cater it according to the preferred consumption of the target market.

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The compacted menu can allow the food chain to develop temporary sales and

promotions as:

1. Make your lunch box

2. Swiss Chalet Classic menu

3. A typical Australian dish included in the new menu and young appealing options like

chicken burgers, nuggets, subs and fries.

The aim is to engage with the local (Australian) market so keeping in mind the

preferences of the Australians is the key to engage more customers. The compacted menu needs

to be as small as a fast food restaurant one and as manageable as a fast food restaurant kitchen

can adopt.

There is a true chance to compete against main competitors but some size adjustments

need to be done in order to appear more reachable to the customer and to the investor. The fast

paced life even in the small cities around the world is a decisive factor to make it appear more

amicable to the customer, convenient and reachable. Australians are particular about quality and

their home country products so local employees and Australian dishes are pertinent for Swiss

Chalet to create its name.

Main competitors are small - medium “fast food” franchises. Therefore, the real chance to

enter new markets is to decrease the complexity of the administrative processes and make it a

little self-service kind of a place where youngsters can hang out and as well as families can join

in.

The “Family Gathered” image as well as the “food made like home food” are strategies

meant to keep on going but the ambience should be such which keeps the millennials engaged as

Australians have more young population.

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Strategy 2: International New Franchise. “Fast Casual” & strategic location (Place and

Promotion)

Typically, Swiss Chalet complies with more franchises than chain management owned

restaurants. The business model for the restaurant has been replicated for the chain management

company. The strategy seeks to focus on the needs and wants of the internationalized markets.

Franchises are mostly preferred as a second income investment. This means that the investors are

looking for a business where mere supervision is needed. They are not looking forward to

owning a full restaurant. The best possible chance for Swiss Chalet to accomplish the franchisee

mode is, adapting to the increasing international needs for practicality.

The “fast Casual” strategy seeks to eliminate waiters and personnel from the restaurant.

Food is to be bought and ordered at the counter and served in there. Customers can take it out or

decide to stay within the facilities.

The “Fast Casual” strategy allows franchises to have a “homemade meal” on the go, in

places like airports, shopping malls, business centers and or walking streets. Swiss Chalet should

promote a chilled out ambience which attracts millennials but at the same time stick to its core

values of promoting family dining together.

Strategy 3: Grocery Products on retail - Strategic Partnerships with Woolworths. (Product and

Promotion)

As per in Canada, Swiss Chalet partnered with truly Canadian Grocery Chains. This

helped the sense of identity of the brand. People want to eat a meal that is “prepared as home”

from where their “home” is. In this case Woolwoths chain is the most recognized brand in

Australia. A strategic partnership could allow the Australian identification of the brand and the

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relation with the “core” Australian customs following the Canadian Strategy and vision for the

brand. The diversification of Swiss Chalet includes frozen “grocery” products.

c. Marketing Mix

Product

 Compacted Menu o iconic dishes,

o Simplified versions

o Young appealing

and o Meal Box for a

weekly basis  Frozen Grocery Products

o Frozen Ribs

o Pies

o Chicken wings

Place

 Retail Stores  Mobile Apps  Restaurants / “Fast Casual “amenities.  Opt for densely populated markets which can

allure the millennials.

Promotion

 Advertising o Impulse - Traditional

Media (T.V - radio) o Establishment -

Digital Media and traditional media.

o Maintenance -

Digital Media, Analytics and Geolocalization ads.

 Clean image to the brand

 Words  Straight

Forward  Sales Promotions

o Loyalty Cards

o Food Fest and other

“celebration parades”  Public Relations

o Strategic Partnership

with National Sports team  Representativ

e sports as per Hockey in Canada.

Price

We can opt for a penetration pricing strategy to enter the market and stay competitive but once it has a set market share then it can restructure the pricing of its products.

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7. Summary:

Due to the busy lifestyle of the increasing number of working population a rise in

demand is seen for healthy and preferred home cooked food. The Targeted location is Sydney &

Melbourne with the potential of 11 million consumers, increasing everyday, and with increased

focus towards unique offering of on the go healthy food bundled with presence of market proven

frozen category Swiss Chalet is positioned to taste success in the land of Kangaroo, Australia.

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Appendix

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(Statistics Canada, 2019).

(Economic and political outline, 2019).

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(Doing Business, 2020).

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