Global Marketing: Harvey's International Market Case Study

This case study analyzes Harvey's Restaurant's global marketing strategy, specifically focusing on its potential expansion into the German market. The study begins with an introduction to global marketing and provides a background of Harvey's, including its strengths, weaknesses, opportunities, and threats (SWOT analysis), and competitive advantages. The core of the case study examines the German fast-food market, detailing its characteristics, distribution channels, advertising and promotion strategies, and competitive landscape. It also includes an estimation of market size and government participation. The analysis then explores Harvey's proposed global marketing strategy, including the marketing mix (4Ps). The study concludes with a summary of the key findings and recommendations for Harvey's successful market entry into Germany, considering the competitive environment and consumer preferences.

Unit Title: Global Marketing
Assignment Title: Individual Case Study Analysis: International
Market Selection
(A Case Study Of Harvey’s)
Name of the Student:
Student ID:
Author Note:

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Table of contents
1. Introduction..................................................................................................................................2
2. Background of the company (Harvey’s Restaurant)...................................................................3
Internal analysis based on available information.........................................................................3
Competitive advantage of Harvey`s............................................................................................4
International competitiveness......................................................................................................4
3. The Market of Germany in Fast food Sector...............................................................................5
Description of the market............................................................................................................5
Distribution of the product...........................................................................................................6
Advertising and promotion..........................................................................................................7
Competitive analysis of the products with competitors...............................................................8
Estimation of the market size......................................................................................................9
Participation of the government...................................................................................................9
4. The global marketing strategy...................................................................................................10
Marketing Mix: 4Ps of Marketing.............................................................................................10
5. Summary....................................................................................................................................14
Reference List................................................................................................................................15
Appendices....................................................................................................................................17
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1. Introduction
In this present time, global marketing strategy is growing rapidly and organizations are intending
to become local. This particular study covers the concept of global marketing strategy of
Harvey’s Restaurant considering its expansion in Germany. The Foodchain is trying to move out
of the country and looking forward to make sustainability by facing other food chains like
McDonald, Subway and KFC. In order to develop the study the company background is going to
be discussed with effective analysis of market is going to be done so that global strategy can be
made for making the business process efficiency.
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2. Background of the company (Harvey’s Restaurant)
The organization, Harvey’s is a Canada based food chain and operates its business in across
various locations of this country1. It is noted that the chain is a business part of Cara operations.
After its establishment in 1959, the organization has gradually increased its business and now is
recognized to be among the most famous restaurants across the state.
Internal analysis based on available information
SWOT analysis of Harvey’s Restaurant:
Strengths
 Brand image
 Customer loyalty
 Infrastructure
 Food quality
 Customization option as per the request
of the customer2
Opportunities
 Demand of readymade food in the
market
 Franchising facility
 Invention of technology to expand the
business
 Partnership with Swiss Chalet and
Second Cup
Weaknesses
 Limitation in variety of foods
 Weak supply chain
 Outlets are not visually attractive
Threats
 Increasing competition
 Health awareness among the people as
fast food is causing a number of health
issues including obesity, cholesterol
and diabetes
 Inflation in the economy
Table 1: SWOT analysis of Harvey’s Restaurant
1 "About | Harveys". in , , 2018, <http://eatwithharveys.com/about/> [Accessed 9 December
2018].
2 Gillespie, Kate, and Liesl Riddle. Global marketing. Routledge, 2015.
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Analysis of table: From the table, it can be found that the organization has a number of strengths
and opportunities in the business along with a number of weaknesses as well as potential threats.
The opportunity of market demand and strength of brand loyalty is helping the organization to
grow in fastest manner3. As the weakened supply chain has limited the variety of food options in
the company, the competitors like Burger King and McDonald is making their business
effectively. Based on the analysis the organization needs to develop global marketing strategy so
that they can sustain in the business in the market of Germany.
Competitive advantage of Harvey`s
In this present time the food service market of Canada is facing a huge competition and as a
result the brands are developing its own strategy so that they can effectively survive in the
market without any hassle. The organization, Harvey’s is famous for its customized sandwiches
and burgers, onion ring, French fries as well as chips like other competitors like McDonald,
Burger King and Subway. Instead of the tough competition in the market the organization is the
fourth largest in terms of the burgers and second largest in terms of Canadian established food
chain service. With the help of its food quality and serving process the organization has hold its
place in the market. In fact, that factor has developed a brand image as well as customer loyalty.
That is the most important prospect and providing the organization a competitive advantage in
the market effectively4.
International competitiveness
International competitiveness is basically processes by which an organization or a business entity
can achieve the higher degree of competitiveness are achieved at different level. In the market of
fast food chain industry there are a number of International brands like McDonald, Burger King,
KFC and Subway which has their own customer base and holds their own position in the market.
As an organization, Harvey’s is trying to spread its business in Germany and hence it needs to set
higher targets that can enhance international competitive factors of the business5. Moreover,
there are a number of regional brands are there which are also in the market, fulfilling the market
demand. Effective global marketing strategy can help the organization out in surviving in overall
3 Kotabe, Masaaki, and Kristiaan Helsen. Global marketing management. 2014.
4 Burns, Alvin C., Ronald F. Bush, and Nilanjana Sinha. Marketing research. Vol. 7. Harlow:
Pearson, 2014.
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market of German food industry. In fact, incorporation of the strength can help the business
entity out to sustain in international competitive market as well.
3. The Market of Germany in Fast food Sector
Fast food business has a rapid growth in the market of Germany as these types of foods are quite
famous among the Germans. Sausages, open-faced sandwich topped with ham and cheese,
German Brotchen, and Kartoffelpuffer are the most preferable option in the market of fast food
industry6. The overall details about the market are being described below.
Description of the market
Geographic region Population GNP of the market Customer buying
habit
Germany is a country
of central Europe.
Total Area:
357,022 km2 .
Total: 8.28 Crores
(1.8% of Total World
Population)7.
Growth Rate: 0.22 %
Male: 49.27%
Female: 50.73%
Rate of growth
(GDP): 2%
GDP Rank: 4th
Income per capita:
$52,896 PPP dollars
Inflation: 2.3%
NI: $4,28,000 crores
PPP dollars
GDP: $4.2 trillion
(nominal)
$4.3 trillion (PPP)
Ease of doing
Product-use
patterns: Online,
outlet visit, street
foods and restaurant
visiting
Product feature:
Customized food
Preferences: Open
faced sandwich
topped with ham and
cheese, German
Brotchen, and
5 Keegan, Warren J., and Mark C. Green. Global Marketing, Global Edition. Pearson Education
UK, 2015.
6 Schlegelmilch, Bodo B. "The Future of Global Marketing Strategy." In Global Marketing
Strategy, pp. 221-249. Springer, Cham, 2016.
7 Solomon, Michael R., Greg W. Marshall, and Elnora W. Stuart. Marketing: Real People, Real
Choices. Pearson Higher Ed, 2017.
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business rank: 20th
Unemployment:
3.4%
Average Gross
Salary: €3,771/month
Average Net Salary:
€2,269/ month
Main industry:
Textile, Food and
Beverage, Steel,
Electronic, machine
tool, machinery,
chemical, cement,
steel and Iron
Kartoffelpuffer8.
Shopping habits: The
Germans lead a high
standard of living and
they prefer sustainable
or green products for
the betterment of the
environment.
Table 1: Description of the market
Distribution of the product
Available distribution channel: A distribution channel is more likely a business chain by which
a service or product reaches to the potential consumers. In the German market the available
distribution channel are ‘Sell through a VAR (Value-Added Reseller)’, ‘Sell through a Dealer
Network’ and ‘Direct to End Users’. With the help of the distribution channels, the food industry
is making its business effectively and meeting the customer demand9.
Sell through a VAR Sell through a Dealer Network Direct to End Users
The process of customization of a
existing product before sell with
This is a process when an
organization sells the products
This is the direct interaction and
communication of the company
8 Schlegelmilch, Bodo B. Global Marketing Strategy. Switzerland, 2016.
9 Leonidou, Leonidas C., Constantine S. Katsikeas, Saeed Samiee, and Bilge Aykol.
"International marketing research: A state-of-the-art review and the way forward." In Advances
in Global Marketing, pp. 3-33. Springer, Cham, 2018.
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the hand of a reseller is known as
VAR.
In the franchise outlets, an
existing food item, such as
burger can be customized as per
the requirement of the customer.
This processes or channel can be
a factor to attract the customers
to the outlets of Hervey's.
through a geographical network
with the purpose of selling the
products to the potential
customers in respective areas.
As the organization, Hervey’s
has focused on the prospects of
market expansion in Germany;
they can consult the dealers to
sell their products so that the
products can gain popularity in
the market. Based on the market
result, the organization can
effectively make an entry in
Germany to penetrate the food
chain industry with suitable
strategies.
with the customers as in this
process the organization sells
their products directly to the
customers via online marketing
or campaigns.
In this modern time, online food
ordering has become popular as it
serves food at the doorstep
within a few minutes. In the
product distribution prospect of
Hervey's, it is important to
mention that implementation of
online service can help the
organization to distribute its
products significantly.
Table 2: Details about the distribution channel in the market of Germany
Intended distribution strategy: The organization may apply the three-distribution channel for
reaching the segmented customer base for effective business. They need to open outlets for
Business to Customer relationship, invite franchise to take the distribution of the products and
online delivery system so that the consumers can avail the products offered by the organization.
Advertising and promotion
In market penetration with global marketing strategy advertising and promotion plays a vital role
as it helps to reach the market segment for gaining popularity purpose. As a new organization
has a threat of existing products in the market, proper promotion and advertising policies help the
organization to become desirable among the potential customers10. In order to reach the target
market, Digital marketing platform is the most suitable option to promote a product. Facebook,
Instagram, Twitter, and other social media sites can help the brad to reach the target
10 Kasemsap, Kijpokin. "The roles of cross-cultural perspectives in global marketing."
In Analyzing the Cultural Diversity of Consumers in the Global Marketplace, pp. 37-59. IGI
Global, 2015.
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market11Moreover, Newspaper advertisement, Television commercials, and press release are the
other way for promoting the brand as well. Distribution of coupons and sampling can be another
way to attract targeted customers in the business products. With these effective policies of
advertising and promotion, the organization has an opportunity to become popular among the
customers in case they can successfully attain the taste of the customers. Advertising and
promotion is just a way to make the product desirable among the consumers and to enter the
market. Thus, the organization needs to focus on this factor to beat the threat of existing
customers.
Competitive analysis of the products with competitors
It has been stated before that the organization has a number of rivals in the business process who
are providing the same materials to the customers and as a result, the competition might be high
in the German market. McDonald, Subway and Burger King are already there, and they are
providing products as per the requirement of the market. Thus, it would be difficult for the
organization to make its customer base without effective business as well as marketing strategy12.
A comparative study among the competitors of the organization, Hervey's Restaurant is
important to draw so that the market research can be effectively done in the new market. It has
been found that the burgers from McDonald are more popular than the food products of Hervey’s
as McDonald uses healthy and nutrient vegetables within the burger which is not that much
harmful like the other fast foods.
Similarly, Subways has taken the strategy of brown bread while customizing the sandwiches and
burgers as the brown bread has more health quotient in compared to white bread. In respect to
this factor, it is essential to state that modern consumers require healthy and nutrient foods as
obesity has become a considerable threat for possessing a healthy lifecycle. Based on this,
Hervey's restaurant should develop their products in a healthy manner so that the consumers like
11 Kasemsap, Kijpokin. "The roles of cross-cultural perspectives in global marketing."
In Analyzing the Cultural Diversity of Consumers in the Global Marketplace, pp. 37-59. IGI
Global, 2015.
12 Solomon, Michael R., Dahren William Dahl, Katherine White, Judith L. Zaichkowsky, and
Rosemary Polegato. Consumer behavior: Buying, having, and being. Vol. 10. London: Pearson,
2014.
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to buy the product from the organization; as a result, the market penetration of the organization
could be more straightforward in Germany Fast food supply industry.
Estimation of the market size
In order to estimate the market size, the organization needs to conduct a market survey so that
market demand can be understood and the customer segmentation can be done based on which
the strategies can be developed. From the identified the market habit of the customer and
population it can be stated that the organization needs to open an outlet in one of the largest city
of Germany, Berlin so that the products can be marketed well. The market segmentation of age
group 9-30 should be targeted, as this age group is most prone to fast food consumption. It has
been found that the Market of fast food is mostly taken over by the organization like McDonald
as the organization has successfully possess 7% popularity in burger sale and 34% popularity in
French fries. However, there are other competitors of the industry like Burger King has 9%
popularity in teams of business. Similarly, Subway has estimated its popularity of 13%
concerning food supply related to the sale. Based on the market analysis Hervey's has estimated
its business growth, and market penetration about 5% to 7% as this organization is entering in
the market in recent days (Refer to Appendix 1).
Participation of the government
The German economy is the world's fourth-largest economy and contributes around one-fifth
contributor to the European GDP. The Government of Germany has developed many laws in
order to host a brand from the international side. The economy of the country is open, and as a
result, many outside brand is entering in the market. In order to make the process organized the
government has enlisted German Corporate Law, German Labor Law, German Insolvency Law
and Consumer Protection Law13. The organizations are bound to follow the legislation within the
territory of Germany. Foreign Trade and Payments Act, Foreign Trade and Payments Ordinance
and Foreign Economic Law, are the legislation what is being used in the country Germany for
sound foreign direct investment within the nation.
13 Kumar, V. Global Marketing Research. SAGE Publications, Incorporated, 2015.
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4. The global marketing strategy
Market and business expansion in the global market is a new way of making profits of various
famous brands. The organizations are developing various global marketing strategies for
sustaining in the international market. Based on the effective implementation of Marketing Mix
Framework the organizations are developing strategies for the betterment of their business.
Harvey's is a Canada based food chain that wants to expand in the market of Germany, and the
organization needs to develop global marketing strategy considering the marketing mix which is
a fundamental model of developing a strategy for marketing14. Standardization is the primary
strategy as regarding food every customers possesses the same taste. However, culture and
environmental situation of the place may change the customer demand for food item. Based on
the analysis of the place, the organization has standardized the food menu and has customized
the recipe what may attract the market of Germany.
Marketing Mix: 4Ps of Marketing
The marketing mix is a set of collaborative marketing tools of product, price, promotion, and
place. Based on that factor any organization can develop marketing strategies to response the
target market. The marketing mix of Harvey’s can be classified into four separate sections, as
given below.
Product A product refers to the item what an
organization develops based on the demand of
a market. Most of the time an organization
comes up with an idea of a product based on
the market analysis15. Profitability and ethical
prospect are the other factors for the product
selection process. In case an organization
decides to enter in an international market the
14 Mosca, Fabrizio, ed. Global marketing strategies for the promotion of luxury goods. IGI
Global, 2016.
15 Cunningham, Margaret Peggy, and O. C. Ferrell. "Marketing’s Greatest Challenge: The Social
Impact of the Globalization of Markets." In Proceedings of the 1989 Academy of Marketing
Science (AMS) Annual Conference, pp. 231-234. Springer, Cham, 2015.
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preference of the targeted customer needs to be
analyzed so that a product can be developed
adequately.
It has been found in the market analysis that
the Germans like to have fast food and like
sandwiches, Harvey’s needs to start local
flavored sandwich as per the demand of the
customers. Berger and fries also need to be
developed based on the choice of the
customers as well.
Price Price is the amount what a consumer pays
against their consumption of a product or
service. Most of the time, the price determines
the quality of a product. The consumers want
quality products that value their money, and
the Germans are quite particular about that.
For this case, it has been found that many
existing rivals are there in the market it would
be difficult for Harvey's to make an entry in the
competition. That is why effective pricing
strategy considering discounting and coupons
needs to be distributed so that the customers
can have a try for the new product in a
discounted price16. Value added pricing for
customizing the products may be included in
the pricing strategy so that the customers can
find value for their money with a quality
product.
Place A region has different food habit and there are
certain places the food habit is different as
16 "Harvey's". in , , 2018, <https://www.harveys.ca/eng/> [Accessed 9 December 2018].
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