100 montaditos international marketing strategy

Quim GiraltMira HautamäkiJulian HünerAdom IssahakianLaura SansMateo Torres

International MarketingIQS

MAY 2014

INDEX

CompanyAnalysis

CountryScreening and PESTLE

CompetitorAnalysis

Cultural Analysis and Segmentation

MarketEntry

2

Introduction

2000, Huelva 3

Introduction

4

Company Analysis

5

SWOT Analysis

• High quality products• Low prices• Conviviality• Very large choice• Promotions

• Product differentiation• Often full on promotion days• Don’t offer free wifi • Don’t have a powerful brand

image

• High level of competition• Negative image of fast foods in

general• New entrants

• Economic crisis• New products• Expand internationally

STRENGHTS WEAKNESSES

OPPORTUNITIES THREATS

SWOT

Analysis

6

Marketing AnalysisProduct Price Place

Promotion People Performance

• 5 types of products :Montaditos, Drinks, Sides, Salads and Desserts• High quality products

• Montaditos : 1-2€• Sides : 2€• Salads : 3.50€• Drinks : 1-2€• Desserts : 1-2€

• 212 restaurants in Spain• 30 restaurants abroad in

the USA (13), Mexico (12), Colombia (2), Chile, Italyand Portugal

• Offline withadvertisements, posters for theirpromotions

• Online with Social networks and webpage

• Young people between 16-30

• Working people• Tourists

• Net income in 2013 : 5.971.427€

• Goal : 500 restaurants in 2015

7

Porter’s five forces• Medium• Easy access market

and low entrance costfor startups

• Hard to be successful

• High• Other fast foods,

restaurants, schoolcafeterias, PUB’s …

• Medium• Ingredients used are

not low in supply• But only 3 suppliers

• Medium• Unique Concept at

low prices• Easy to substitute

• High• Large industry

size• Very competitive

8

Expansion Analysis

9

Country Screening1st step: most important criteria

1.

2.

3.

Fast Food consumption

Beer consumption

Bread consumption

10

Fast Food Consumption

Points 40%

Canada 20 8

United Kingdom 19 7,6

South Corea 18 7,2

Japan 17 6,8

Austria 16 6,4

Germany 15 6

Switzerland 14 5,6

Sweden 13 5,2

11

Beer Consumption

Points 30%Czech Republic 20 6Austria 19 5,7Germany 18 5,4Estonia 17 5,1Poland 16 4,8Ireland 15 4,5Croatia 14 4,2Venezuela 13 3,9

12

Bread Consumption

Points 30%Japan 20 6Germany 19 5,7Canada 18 5,4Switzerland 17 5,1France 16 4,8Hongkong 15 4,5UK 14 4,2Australia 13 3,9

13

Result

1Germany 17,1

2Canada 13,4

3Japan 12,8

4Austria 12,1

5United Kingdom 11,8

2nd step: further analysis of our top 514

Demography 30%• Target customers: population between 15-

54y15-24y: 40% 25-54y: 60%

• Focus on adult male population

male: 70% female: 30%

• Urban population

• Households

15

Rank Population 15-54y Points

1China 20

2India 19

3Indonesia 18

4Pakistan 16,7

5Brazil 16,3

6Nigeria 14,7

7Bangladesh 14,3

8Russia 13

9Philippines 12

10Vietnam 10

11Japan 10

12Iran 9

13Turkey 7,3

14Ethiopia 6,5

15Egypt 6,3

16Germany 5,3

17Thailand 4,3

18Congo, 3,3

19United Kingdom 2

20Burma 0,7

Japan 11th, Germany 16th, UK 19th16

Rank Households Number

1 India 192,671,808

2 Brazil 57,324,167

3 Russia 52,711,375

4 Japan 49,062,530

5 Germany 40,076,000

6United

Kingdom 25,691,000

7 Vietnam 22,444,322

8 Philippines 18,539,769

9 Turkey 17,794,238

10 Iran 17,352,686

11 Ukraine 17,199,000

12 Korea, South 15,887,128

13 Ethiopia 15,634,304

14 Poland 13,337,040

15 Canada 12,437,470

16 Argentina 12,171,675

17 South Africa 11,205,705

18 Romania 7,320,202

19 Netherlands 7,242,202

20 Peru 6,754,074

Japan 4th, Germany 5th, UK 6th 17

Rank Urban Population Number

1China 711,820,000

2 India 405,145,300

3 Brazil 160,879,708

4 Indonesia 122,824,688

5 Japan 116,486,531

6 Russia 102,705,300

7 Philippines 77,610,181

8 Nigeria 64,009,394

9 Pakistan 60,484,799

10 Germany 56,132,300

11 United Kingdom 56,105,091

12 Turkey 51,672,518

13 South Korea 46,381,918

14 Iran 46,368,984

15 Argentina 37,705,099

16 Egypt 35,935,354

17 Colombia 35,332,746

Japan 5th, Germany 10th , UK 11th18

Demography Result

1Japan

2Germany

3United Kingdom

4Canada

5Austria

19

Economy 30%

• GDP, GDP per capita

• GINI

• Inflation

20

RankGDP Number

1 China 8,358,400

2 Japan 5,960,180

3 Germany 3,425,956


5 Brazil 2,254,109

6 Russia 2,029,812

7 India 1,875,213

8 Canada 1,821,445

9 Australia 1,564,419

10 South Korea 1,129,598

11 Indonesia 878,043

12 Netherlands 800,535

13 Turkey 788,299

14 Saudi Arabia 711,05

15 Switzerland 631,183

16 Iran 551,588

17 Sweden 523,804

18 Norway 499,667

19 Poland 489,852

20 Belgium 483,402

Japan 2nd, Germany 3rd, UK 4th, Canada 8th21

Rank GDP per capita Number

1 Qatar 98,814

2 Luxembourg 78,67

3 Singapore 64,584

4 Norway 54,947

5 Brunei 53,431

6 Hong Kong 52,722

7 Switzerland 46,43

8 San Marino 44,48

9 Canada 43,472

10 Australia 43,073

11 Austria 42,597


13 Sweden 41,188

14 Iceland 41

15 Germany 40,007

16 Taiwan 39,767

17 Kuwait 39,706

18 Ireland 39,547

19 Denmark 37,9

20 Belgium 37,881

Canada 9th, Austria 11th, Germany 15th22

Rank GINI Index Number

1Dänemark 28,1

2Japan 24,9

3Schweden 24,8

4Belgien 26,5

5Tschechien 25,4

6Norwegen 25,8

7Slowakei 25,8

8Österreich 26

9Bosnien und Herzegowina 26,2

10Usbekistan 26,8

11Finnland 26,9

12Ungarn 26,9

13Mazedonien 28,2

14Albanien 28,2

15Deutschland 28,3

16Slowenien 28,4

17Ruanda 28,9

18Kroatien 29

19Ukraine 31

20Äthiopien 30

Japan 2nd, Austria 8th, Germany 15th23

Inflation

0,1% Japan

1,7% United Kingdom

1,8% Canada

2% Germany

2,3% Austria

Inflation in Japan too low, but in 01/14 increased: 1,3%24

Economy Result

1Germany

2Japan

3United Kingdom

4Canada

4Austria

25

Consumption 30%

• Consumer Spending

Household final consumption expenditure (50%)

Household final consumption expenditure capita

(20%)

• Food Expenditures per capita (20%)

• Greendex Index (10%)

26

RankHousehold final consumption

expenditure Number

1 Japan 2,952,710

2 Germany 1,960,230

3 China 1,835,280


5 Brazil 1,266,270

6 Canada 786,22

7 India 737,936

8 Russia 671,629

9 Australia 564,993

10 South Korea 452,182

11 Turkey 439,678


13 Argentina 316,73

14 Switzerland 285,311

15 Poland 263,048

16 Belgium 246,983

17 Greece 242,266

18 Malaysia 209,194

19 Austria 206,998

20 Norway 198,064Japan 1st, Germany 2nd, UK 4th, Canada 6th, Austria 19th27

RankHousehold consumption

expenditure capita Number

1 United Arab Emirates 34,561

2 Switzerland 26,47

3 Luxembourg 26,097

4 Hong Kong 24,491

5 Norway 23,122

6 Australia 22,747

7 Austria 22,413

8 United Kingdom 22,376

9 Canada 22,041

10 Germany 21,642

11 Cyprus 19,733

12 Belgium 19,491

13 Finland 19,182

14 Sweden 19,037

15 Japan 18,492


17 Denmark 18,03

18 Ireland 17,869

19 Iceland 17,718

20 Greece 17,675Austria 6th, UK 8th, Canada 9th, Germany 10th, Japan 15th, 28

Rank Food Expenditure per capita

1Norway

2Switzerland

3Japan

4Greece

5Australia

6France

7Denmark

8Sweden

9Finland

10New Zeland

11Israel

12Austria

13Belgium

14Canada

15Taiwan

16Holand

17Germany

18Hong Kong

19Ireland

20Venezuela

Japan 3rd, Austria 12th, Canada 14th, Germany 17th, UK 21st29

Greendex

1Germany 51,5

2UK 49,4

3Canda 47,9

4Japan 48,5

-Austria no data

30

Consumption Result

1Japan

2Germany

3United Kingdom

4Canada

5Austria

31

Society 10%

• Quality of Life Index (50%)

• Median wealth per country (50%)

32

Rank Quality of Life Index Number

1Switzerland 206.23

2Germany 192.69

3Sweden 180.92

4Finland 178.88

5Denmark 178.55

6Canada 178.29

7Australia 175.98

8United Arab Emirates 173.27

9Austria 171.82

10New Zealand 168.56

11Japan 168.47

12Norway 168.41

13Netherlands 160.98

14United Kingdom 150.97

15Estonia 145.40

16Ireland 142.35

17Kuwait 141.37

18Saudi Arabia 139.88

19Belgium 134.71

20Slovenia 125.56

Germany 2nd, Canada 6th, Austria 9th, Japan 11th, UK 14th 33

Rank Middle Class (Median Wealth per Country)

1Australia

2Japan

3UK

4Switzerland

5Ireland

6Canada

7Norway

8Finland

9Spain

10New Zealand

11Netherlands

12Isreal

13China, Taiwan

14Germany

15Sweden

16Denmark

Japan 2nd, UK 3th, Canada 6th, Germany 14th, 34

Society Result

1Canada

2Japan

3Germany

4United Kingdom

5Austria

35

FINAL Result1Japan 4,6

2Germany 4,2

3United Kingdom 2,9

4Canada 2,3

5Austria 1,3

Japan or Germany?36

Cultural Dimensions

37

Economic Situation• Difficult in Japan, stabile in Germany

• Consumer Confidence

38

Germany

What are the reasons for this decision?39

Reasons for GermanyTop 3 reasons

• First in our main criteria, especially beer

consumption

• Company strategy: Focus on Europe

• 2nd biggest trading partner of Spain

40

Reasons for GermanyNumber of students in Germany is increasing

41

Reasons for GermanyImmigration from Spain to Germany is

increasing

42

Reasons for Germany

43

CountryEASE OF DOING

BUSINESS

Germany 21

Japan 27

http://espanol.doingbusiness.org/rankings

PESTEL Analysis

44

Politics• Government type: Federal Republic

• Chancellor: Angela Merkel

• 12th least corrupt

• From 2015: minimum salary of 8,50€/h

• Politics call for stricter hygiene laws

Politically stabile, minimum wage might be a threat 45

Economy• 13th biggest working force worldwide

• Best performing country in EU during the crisis

• 14th Prosperity Index

• GDP grows slowly but stabile

Opportunity: good economic situation, opponents are in a crisis

Fast Food market growth of 2% (2012), market size €10-11 billion

46

Social• Social trend: Healthy and ecological lifestyle

caused in the demographic: the German population ageing considerably.

• Largest consumption of Bread in EU.

84kg per year per capita

• 6th in Global Competitiveness Report

• 21st in the Ease of Doing Business

High social welfare, largest consumption of Bread

Threat: Image of an unhealthy brand Rebranding. Focus on healthy food

47

Social

48

Social

French fries 2nd, Sandwich 3rd49

Technology• High technological standards

• One of the most important startup, new

economy countries

• Internet users: 68 Million

• Railway network: 41.000 km length (#6 world)

One of the best infrastructures worldwide

Threat: delivery food startups (delivery hero, lieferheld) are growing 100M App?!50

Environment• 9th in the Greendex

• Environmental Performance Index: 17th

• Turnaround in energy policy increasing cost of energy

• High environmental awareness

51

Legeslative• In surveys on political and legal stability

foreign investors put Germany on second rank

• legal stability attracts foreign companies and benefits entrepreneurial activities in Germany

52

Competitor AnalysisFour main categories:

1. Fast food restaurants

2. Pubs

3. Refectory and cafeteria inside the Universities

4. Brewery

53

Fast food Restaurants

0

10

20

30

40

Number ofcurrentlyoperating

Outlets

AveragePrice for a

meal

Revenues inbillion $

openinghours

Quality(from 0 to

5)

McDonalds

Burger King

KFC

Subway

Nordsees

delivery hero

chipotle

100 montaditos

• McDonalds

• Burger King

• KFC

• Subway

• Nordsee

• Delivery hero

• Chipotle

Factors Utilized Ranking (from 0 to 5)

Number of currentlyoperating outlets

3

Average price for a meal 4

Revenue 2

Operating hours 4

Quality 5 54

Pubs100 Montaditos Pubs

• Stable and customary clientele (25 – 55 years old)

• Typical German food• Beer• Medium to high quality of

food• Located all over the

country• Local distributor

• Young people especially students

• Spanish food

• Beer

• High quality of food

• Near university or academy

• No local distrubutor

55

Refectory and Cafeteria100 Montaditos


• Spanish food

• High quality of food

• Near university or academy

• Fix price/ No discounts

• No Local distributor

Refectory or cafeteria inside university

• Students

• International food

• Medium quality

• Inside the university/campus

• Incentives or meal plan

• No local distributor

56

Beer factory/BreweryCompetitive landscape

• over 1,300 breweries

• more than 40 companies

• over 8 million litres in terms of volume sales

Best selling beers:

1. Oettinger

2. Krombacher

3. Bitburger

4. Beck’s

5. Warsteiner

6. Hasseröder

7. Veltins

8. Paulaner

9. Radeberger

10. Erdinger0

2

4

6

Output in Million

Output inMillion

57

Beer factory/Brewery100 Montaditos


• Local beer• Economy of scale with

our supplier• Local

distributor/partnership with an already affirmed Brewery

Breweries

• Wide range of population

• Beer

• Produce locally

58

Competition Matrix

59

Cultural differences -Hofstede’s cultural dimensions

Spanish culture• Collectivist

• Middle power distance

• In the middle of masculinity and feminity

• High uncertainty avoidance

• Normative

• Restrained

German culture• Individualistic

• Low power distance

• Masculinity

• High uncertainty avoidance

• Pragmatic

• Restrained

60

Cultural differences

61

Market Segmentation

62

Segmentation

GERMANY 80.209.997

URBAN 56.132.300

MIDDLECLASS 32.556.734

M 8.818.453

F 8.545.488

63

17.363.94222%

Market Entry: MK Mix

64

Place

Source: www.populationlabs.com65

Place Munich

66

Price

GDP per capita29.851 $

GDP per capita42.597 $

40% more

67

Promotion

Word of mouth68

PeopleCulture

Employees

69

Process• A few opening in the most populated cities

- Mall’s

- Centric zones

- Business areas

- Tourism areas

• Franchising

70

Product• Same packaging

• Some new differents flavours

• Some new differents extras

• Partner with a local company beer

• Same furniture inside the establisment

71

Our positioning:

• Quality products

• Large variety of ingredients

• Nice enviroment

• Cold beer

• Affordable for everybody

72

Physicall enviroment

Product diversification (not only montaditos)

Recommendations

Keep on expanding in different countries instead of expanding in the ones they already are in

Work on brand image and how to have loyal consumers

Thank You!74

100 montaditos international marketing strategy

Economy & Finance