Marketing Expansion Plan for Chili's Restaurant - BUS300, Semester 2

This report presents a comprehensive marketing expansion plan for Chili's Restaurant, focusing on its potential entry into the New Zealand market. The analysis begins with an overview of Chili's and the casual dining industry, highlighting the company's history, current global presence, and unique Tex-Mex cuisine. The report then delves into an industry analysis, followed by a detailed company analysis, and a PESTLE analysis of New Zealand's political, economic, social, technological, legal, and environmental factors. Cultural differences between the United States and New Zealand are examined, along with a competitive analysis of existing restaurants in New Zealand. The report identifies the target customer segment and recommends a franchising market entry strategy, emphasizing the brand's recognition and the suitability of the business model. A marketing mix plan, including product, price, place, and promotion strategies, is outlined. Finally, the report concludes with recommendations for successful market entry and expansion in New Zealand, offering valuable insights for the company's strategic decision-making.

Running head: MARKETING EXPANSION PLAN FOR CHILI’S RESTAURANT
MARKETING EXPANSION PLAN FOR CHILI’S RESTAURANT
Name of the Student
Name of the University
Author Note

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Table of Contents
Executive Summary.............................................................................................................2
Discussion about the company and the industry related to it..............................................2
Analysis of the industry...................................................................................................2
Analysis of the company.................................................................................................3
Analysis of the environment (PESTLE Analysis)...........................................................4
Cultural differences between the two countries...............................................................5
Analysis of the competitors of the company...................................................................6
Target customer analysis.................................................................................................7
Strategies of market entry................................................................................................7
Strategies of marketing mix.............................................................................................8
Recommendations................................................................................................................9
Conclusion...........................................................................................................................9
References..........................................................................................................................10

2MARKETING EXPANSION PLAN FOR CHILI’S RESTAURANT
Executive Summary
This report is based on the analysis of a particular company and the industry where the
company is based in. The analysis is based on the plan of market expansion of the company
internationally. The competitors of the company are also analyzed in this case and the target
customers of the company. The company that is taken into consideration is Chili’s Grill & Bar
restaurant. This is an American style casual type dining restaurant that mainly depicts the Tex-
Mex type of cuisine. This restaurant was established in the year 1975 in Texas by Larry Lavine.
The restaurant chain is currently owned by Brinker International. The first location of the
company on Greenville Avenue in Texas.
Discussion about the company and the industry related to it
Analysis of the industry
The marketing strategies of a company can be of two different types, which are domestic
marketing and international marketing. Domestic mainly defines the type of activities related to
marketing which are performed within the boundaries of a specific country. This type of
marketing activity is confined within the customers within a specific country (Albayrak, 2015).
The advantages of domestic marketing are, the communication barriers are less, the data related
to the consumers is easily accessible, the competition is less, the company has knowledge about
the taste and preferences of the consumers. International marketing is the type of marketing is the
type of marketing which is not confined within the boundaries of a specific country (Alon, Ni &
Wang, 2012).
There are some challenges related to the international marketing strategies of a company.
The cultural and social differences between two countries, the barriers related to language and

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the difference in customer habits act as challenges for a company in its international marketing
activities. In this case, Chili’s is a chain of restaurants that is headquartered in Dallas, Texas. The
analysis is based on the expansion of this company in New Zealand. The reason behind this
observation is the absence of a restaurant of Chili’s in this country. The concept of the restaurant
is unique and it offers a variety of cuisine of the Tex-Mex style (Chilis.com., 2017).
Analysis of the company
Chili’s is a casual and fun dining restaurant that opened its gates in the year 1975 in
Dallas. The restaurant was opened by converting a post office to create a little joint that was
funky in nature. The main attractions of the restaurant are its burgers, fajitas and ribs. The
restaurant mainly promotes gatherings with friends and family. Chili’s has its branches in around
32 countries in the world (Chilis.com., 2017). The restaurant has recently completed its 20 years
of operation. Chili’s Inc. is now a part of Brinker International and the menu of the restaurant
includes a variety of options like, appetizers including burgers, sandwiches, fajitas, tacos,
burritos and quesadillas. The restaurant has its operations in many different countries in Europe,
Asia, Middle East, Central America or South America and Africa (Chilis.com., 2017).
These countries include, India, Japan, Indonesia, Malaysia, Singapore, Russia, Germany,
Bahrain, Kuwait, Jordan, Lebanon, Qatar, Oman, Saudi Arabia, Canada, Mexico, United States,
Brazil, Peru, Morocco and many more. The restaurant features in 1580 locations in the world
among them some are owned by the company itself and some are franchised. The international
operations of the company have been successful and it has shown huge growth since its inception
in the year 1975. The restaurant chain is thereby suggested to open their branch in New Zealand
as this is one of the places where they are not operating currently (Baum, Schwens & Kabst,
2013).

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Analysis of the environment (PESTLE Analysis)
Political factors – New Zealand is a stable democratic country and the political system is
based on the British model. The political conditions in this country provide a safe and profitable
business environment. This factor implies that the business of the restaurant will be feasible in
this country (Cadogan, 2012).
Economic factors – New Zealand has a strong economic environment and the policies
taken by the government have also facilitated the economic growth of the country. The country
has a flourishing tourism industry and this factors is favorable for the growth of the restaurant
business in this area. So, it can be said that Chili’s can plan to open its branch in this country and
this will help the company to grow as the tourism industry is closely related to restaurant
business (Chen & Miller, 2012).
Social factors – The social factors of a particular country or region are related to the
families and religion of the group of individuals of that particular area. The citizens of New
Zealand are social in nature and show a lot of hospitality to people. This factor will contribute to
the success of the restaurant in this area. The reason behind this is mainly the people here, who
are welcoming to different cultures (Fleisher & Bensoussan, 2015).
Technological factors – New Zealand has the fastest growing technological sector. The
improvement in technologies in the recent years has promoted massive production. The
technological change in New Zealand is not uniform in all parts of the country, as the vision of
the effect of this technological advancement on the economy of the country is not quite clear.
This can prove to be a hindrance in the growth of the restaurant in this area. The reason being

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that the technological environment of New Zealand will not contribute to the advancement of the
restaurant chain (Hitt, Ireland & Hoskisson, 2012).
Legal factors – The legal system of New Zealand is also related to the English laws and
rules. The system of judiciary of this country is robust and independent. The legal framework of
this country is sound in nature and is further supported by independent and free media and also
ensures transparency levels that are high in the decision making system of the corporates and the
government as well. This sound and transparent legal framework will be helpful in the expansion
process of a new foreign company as many types of legal bindings are associated with
international expansion of a company (Ivens & Valta, 2012).
Environmental factors – The environmental factors in New Zealand are suitable for the
success of the restaurant in this area. The reason behind this statement is the huge wealth of
natural resources and the fresh produce of different varieties of fruits and vegetables that will
facilitate the growth of the restaurant in this country (Khan, 2014).
Cultural differences between the two countries
The culture in New Zealand is of the laid back type and is dynamic and unique. The
culture of this country is influenced by both the European as well as British customs. The
country is also affected by the Polynesian and Maori culture. The culture of this country is a mix
of different cultures which include the Pakeha culture and the Maori culture. The people of New
Zealand are highly educated and sophisticated people and represent the vibrant and unique
society which is multicultural in nature (Kim & Mauborgne, 2014).
The United States has a population of around 325 million and acquires the third position
in terms of land area. The population of the country is a mix of Native Americans and a huge

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number of immigrants from different parts of the world. Owing to this reason the country is
considered to the most diverse country in terms of culture. The American culture is influenced by
almost every culture from around the world. The American culture also influences all the
cultures in the world (Michalski, 2015).
From the discussion above it can be derived that the difference in culture between the two
countries lies in the diversity. While the US culture is influenced by many cultures in the world,
it is much more diverse as compared to the culture in New Zealand.
Analysis of the competitors of the company
The restaurant that is recommended for expansion in the country of New Zealand will
have to face stiff competition in this area from the top restaurants in this country. New Zealand is
a country which lots of natural resources and tourist attractions as well. This factor facilitates a
boost in restaurant business as it is directly related to the tourism sector (Upson et al., 2012).
Two examples of the competition of Chili’s in New Zealand are as follows,
 Depot Eatery and Oyster Bar is a restaurant located in Auckland Depot and is
under the highly recommended lists of restaurants. This is also a casual dining
restaurant and has bar where oysters and shell fish are served. The main weakness
of the restaurant is the absence of the beer or wine bar which is one of the main
attractions in Chili’s.
 Food Truck Garage is also a restaurant that is located in Auckland and offers
healthy and tasty fast food. This restaurant serves fast food in the American style.
The weakness of this restaurant is the limited customer base as it only serves in a
truck and does not have fine dining facilities. On the other hand, Chili’s offers

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American cuisine with a casual approach in the fine dining environment (Zhou,
Wu & Barnes, 2012).
Target customer analysis
The target customer segment of Chili’s in New Zealand are the tourists and the local
people as well. The restaurant offers quality food in a casual dining environment and this will
help in attracting customers who are searching for American style food in a casual dining
restaurants along with drinks and beverages. This is a unique concept for a restaurant in this area
(Yüksel, 2012).
Strategies of market entry
The market entry strategy refers to the various ways in which a company plans to enter a
foreign market in such a way so that the levels of risks are low and the company can gain high
returns. There are many different strategies that can be applicable for entry of a particular
company in the foreign market. The different strategies include, direct exporting, franchising,
licensing, joint ventures, partnering, buying any company, turnkey projects, piggybacking and
greenfield investments (Albayrak, 2015).
The market entry strategy that is recommended for Chili’s in New Zealand is
Franchising. This strategy is the best suited to food outlet, as the levels of risks are low and the
restaurant can gain swift market expansion. The reason behind the selection of this strategy is
that the business model of the company is repetitive in nature. The brand of Chili’s is highly
recognized in the world, and this will facilitate the strategy of franchising (Zhou, Wu & Barnes,
2012).

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Strategies of marketing mix
Marketing of a particular organization can be defined as the set of marketing tools that
can be used by a company so that they can receive the response that is desired by the company
from the target market. Marketing mix of a company consists of 4 Ps which include, Product,
Price, Place and Promotion (Alon, Ni & Wang, 2012). The marketing mix plan for Chili’s
restaurant is as follows,
 Product – The products that are offered by the restaurant will remain the same as
in all other countries of the world, which include, the appetizers, burgers,
enchiladas and fajitas, main course, soups and salads, grills, tacos, seafood and
many more.
 Price – The appetizers should be priced between 6 dollars to 10 dollars, the salads
need to be priced between 4 dollars to 10 dollars, burgers and sandwiches should
be priced between 6 to 10 dollars and the burritos should be priced between 8 to
10 dollars (Baum, Schwens & Kabst, 2013).
 Place – The restaurant should be located in Auckland city of New Zealand. This
area has beautiful natural beauty and is a perfect holiday destination. This area
attracts lots of tourists who can thereby increase the revenue of the restaurant.
 Promotion – The promotional activities of the restaurants can be done by digital
marketing methods, which includes the use of social media and other ways of
marketing (Cadogan, 2012).

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Recommendations
The recommendation states that the Chili’s restaurant venture can be successful in New
Zealand. The restaurant will prove to be profitable for the management of the organization. This
expansion can open new avenues for the restaurant chain.
Conclusion
The report can be concluded by stating that the international business expansion of
Chili’s will be profitable for the restaurant chain and it will be suitable for the country as well.
The restaurant has its branches all over the world, so it is advisable for the company to set up a
branch in New Zealand as well. The reason being that Auckland city of New Zealand is blessed
with natural beauty and is a center of attraction for tourists, which in turn will be profitable for
the restaurant business.

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References
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companies. International Journal of Hospitality Management, 48, 135-142.
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Baum, M., Schwens, C., & Kabst, R. (2013). International as opposed to domestic new
venturing: The moderating role of perceived barriers to internationalization. International
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Cadogan, J. W. (2012). International marketing, strategic orientations and business success:
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Chen, M. J., & Miller, D. (2012). Competitive dynamics: Themes, trends, and a prospective
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Chilis.com. (2017). Restaurant Menu - Order Online for Lunch & Dinner | Chili's. Chili's Grill
& Bar Restaurant. Retrieved 4 November 2017, from https://www.chilis.com/menu
Fleisher, C. S., & Bensoussan, B. E. (2015). Business and competitive analysis: effective
application of new and classic methods. FT Press.

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Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2012). Strategic management cases:
competitiveness and globalization. Cengage Learning.
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Zhou, L., Wu, A., & Barnes, B. R. (2012). The effects of early internationalization on
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capabilities. Journal of International Marketing, 20(4), 25-45.

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