Germany

International Marketing Plan:

Buena Onda Fiesta
Nawaf, Kenzie, Hanna, Emily

Table of Contents
1.Title Page
2.Table of Contents
3..Summary
4..Company Profile
4.Cultural Analysis
7..Economic Analysis
9.Entry Modes
10.Target Market
10.Marketing Objectives
11...Marketing Strategies to Reach Marketing Objectives
12..Recommendations

Summary
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Buena Onda Fiesta is a Mexican restaurant wanting to be franchised in Germany. This restaurant
is just starting in the food industry. The owners of the company want to open this restaurant in
Germany because Mexican food is scarce in the country and think it will start as a great
franchise. Germany is located in Europe with rich history and an ocean type climate, mountains
of snow, summer, spring, winter and fall. Families in Germany are like the families seen in other
countries with moms, dads, brothers, and sisters. This reports analyses the Germanys economy,
their business regulations, and their culture. If the company can be sensitive to the economic
needs, population, entry modes, and government regulations they would open the store
successfully. Then if they would follow our marketing strategies and objectives we think they
will create a thriving business.

Company Profile
This company is a Mexican Restaurant and is wanting to open in Germany. It has been known
that people like the idea of Mexican Food, but there is not a lot of variety, in fact there is very
little variety in Germany. The company wants to open in Germany because of the little variety,
the company thinks Mexican food would be a big deal in the country.

Cultural Analysis
German History
The one thing most remembered about German History is the Hitler Era. That is not the only
influential thing in German History. The most influential people in German History are Johann
Sebastian Bach, Albert Einstein, Immanuel Kant, Anne Frank, Ludwig Van Beethoven, Karl
Marx, Thomas Mann and many others. These people are innovators in science, music, writing,
psychology and they influenced German culture.
How does the history pertain to peoples attitudes towards products manufactured in specific
countries? Germany put sanctions on Russia because of their behavior in Ukraine. This is also
because of the history and the experience in Germany. This is why they put such hard sanctions
on Russia. Large department stores like Walmart are not accepted in Germany because Germans
believe they decrease competition and there is no room for the stores that already exist in
Germany. In the past Germany had problems with stores that got too big and that is why they do
not let big stores into the country anymore. Germany also has very strict regulation on materials
used in products and how these can influence peoples health resulting in many products from
China are not allowed in Germany.
What are the affinities toward other countries because of the history of Germany? Germany has a
positive affinity towards the U.S. because of help in tearing down the Berlin Wall, and a negative
affinity towards Russia because of behavior in Ukraine and repetitive ignorance of treaties,
agreements and unions.

German Geography
Germany is the 7th largest European country with Northern Germany as a flat, lowland terrain
that is dissected by bogs, rivers, and streams and is the area farming takes place. The North Sea
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Coastline is a low, marshy wetland, with dikes, mudflats, and scattered islands. Rugen, the
largest of Germanys islands, is forested and hilly with steep cliffs and sandy beaches. Northeast
stretching to the south of Berlin the land is sandy with small lakes formed by retreating glaciers
formed during the Ice Age. Germanys land raises into forests with landforms that include
volcanic origins and has hilly forested mountains do get snow. Germanys climate is moderate
oceanic/continental climate zone, frequent changes in weather and primarily western winds and
is 138,000 square miles. The capital of Germany is Berlin and the country is at the heart of
Europe with 9 neighboring countries. Austria, Belgium, Czech Republic, Denmark, France,
Luxembourg, Netherlands, Poland, and Switzerland. Landmarks in Germany include the
Southern Germany Alps, the Central Germany Harz Mountains, the Western Germany Rhine
River, the main waterway, and the Rolling Plains.

German Families
Germany is by far the largest country in the EU in terms of population. Germany is a modern,
cosmopolitan country and the society is shaped by a plurality of life styles and truly different
ethno-cultural diversity. Traditional gender roles have been dispensed with and despite the social
changes, the family remains the most important social reference.
For almost 90 percent of the population the family comes first in their list of personal priorities.
Young people also value it very highly: 72 percent of 12 to 25-year olds are of the opinion that
being happy is dependent on having a family. In the traditional family, the roles played by a
couple that was married for life, and bringing up several children, were strictly divided. The
father was the breadwinner, the mother a housewife. This breadwinner model is certainly still
followed but it is no longer the predominant way of life.
There is now significantly greater leeway in choosing between various family forms and even
deciding not to have a family at all. Today 65 percent of mothers are employed, while at the
same time families have become smaller. There are more instances of single-child families than
those with three or more children. Two-child families are the most widespread. There are also
ever increasing numbers of people living alone or as a couple with no children.
Faithfulness to ones partner remains an important value, but the norm of staying together for life
has become more relaxed. As a result of this trend there has been a clear increase in the number
of couples living out of wedlock. There has also been a clear increase in the number of same-sex
couples cohabiting and this form of cohabitation without actually being officially married is
particularly popular with young people and those whose marriage has failed.

German Education
Education plays an important role in Germany and great value is placed on it. According to the
article Education at a Glance 2014 Most people in Germany attain upper secondary education.
In comparison to other countries, Germany has a very high number of upper secondary
attainment: 86% of the countrys 25-64 year-olds have obtained at least an upper secondary
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qualification. OECD listed an average of 75% for secondary education. OECD projects the
percentage of graduate among the current youth from secondary school to approximately 95%.
How does this affect marketing decisions? This allows people to know they can use slogans and
dialogues along with pictures. Also people target a large group with education promotions (i.e.
teachers eat at a discount, student discount etc.)

German Living
This definitely depends on the area one lives in but most people live in large single-family
homes, which sometimes have an attachment for grandparents. The houses are very big, usually
out of brick and the interior is well taken care of as well as carefully designed. Germans put a lot
of attention on having everything clean and modern especially when visitors come over.
They also put a lot of emphasis on the materials used and are as natural and least harming to
nature and health as possible. Germans love their back and front yards and take a lot of care of
that as well. In the summer everyone is outside mowing their lawn, planting flowers, growing
fruits and vegetables, throwing grill parties and watching soccer in their backyard sheds. These
sheds can also be really big and have TVs, projectors, couches, refrigerators and other soccerwatching accessories. Most everyone owns their house and since Germans do not like owing
money to the bank and using credit cards they pay off their mortgages faster than most nations.

German Life, Dress, and Leisure Activities

A typical breakfast is a continental breakfast that includes breads, rolls, honey, jam, coffee, or
tea. Cold cheeses and meats are also served with breakfast. For lavish breakfasts a boiled egg,
yogurt, quark (a cream cheese), and fruit are served. Lunch is usually eaten during the time of
11:00 a.m. and 2:00 p.m. Lunch is usually the main meal of the day and usually includes
potatoes, vegetables, and meat. On Sunday there is a snack of a variety of cakes. Dinner is
usually a cold meal that is different kinds of bread, a selection of cheese, cold meat, and salad. A
small hot dish may be included and is usually left overs and soups. Pork, beef, and poultry dishes
are the favorite main courses. Seafood is also popular. Side dishes include noodles, potatoes, and
dumplings.
The traditional dress for women was the dirndl and is a fold dress with a full skirt, blouse,
bodice, and apron. Business dress for the higher class jobs is a formal and conservative look.
Men wear suits and ties and women wear trouser suits. In the lower class jobs is a more casual
look. Germany has adopted the theme of casual Friday where it is appropriate for looser clothing
to be worn.
The leisure activities in Germany include golfing, walking, cycling, fishing, boating, watersports,
skiing, snowboarding, hiking, mountain Biking, watching TV. Germans like to get up and get
out.

German Attitude towards the United States

Germany prides itself on its high quality cars and homes. Even if they think that their products
are superior there are many U.S. firms present and thriving in Germany. Some of the U.S. brands
thriving in Germany are: Amazon.com Inc., American Airlines, Apple, Caterpillar Inc. CocaCola, Deere & Company, Dell Computer Corp. Delta Airlines, Exxon Mobil, Ford Motor Co.
General Electric, General Motors, Goodyear Tire & Rubber Co. Hewlett-Packard, Johnson &
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Johnson Inc., KFC, Kraft Foods Inc. Mars Inc. McDonalds Corp., Microsoft, Motorola, Nike
Inc. Proctor & Gamble, Starbucks, and United Parcel Service (UPS).

Germans think American attitudes such as flexibility, spontaneity, initiative, confidence,

enthusiasm, and optimism are often envied in this more ordered, deliberate, and risk-aversive
culture. The approval can be somewhat double-edged. Germans like American movies and music
and it certainly dominates popular entertainment in Germany.
Some more concrete things that Germans generally seem to admire are American management
training, higher education, customer service, accommodation of handicapped and disabled,
marketing expertise, and advanced research facilities and medical training.
There is also the popularity of private, American-style, business management degree programs
here. Germans believe, with some justification, that they make better cars, better houses, and
higher average quality products of many sorts, they do concede the U.S. some areas of
competence.
Germans think America is truly multi-cultural. Yes, racism still exists there, but there seems to
be no other country with such a diverse population. Americans are open-minded and less afraid
of failure (or being un-original), Germans are great at incremental optimization, but it seems that
revolutionary inventions in science and technology are more easily made in the USA. American
humor is superior. The average American is funnier than the average German.

Economic Analysis
German Government
German Government is a Republic with parliamentary democracy and a bicameral system of
government and the Head of State is a Chancellor and their ministers. The
Germanys Political Stability has the index measurements of perceptions of the likelihood that
the government of Germany will be destabilized or overthrown by unconstitutional or violent
means. The Economic Freedom of 73.40 meaning Germany is a mostly free economic country

Germany has Legal Systems/Regulations and those who study German legal system agree it is
fair and provides safeguards to ensure the fairness of investigations and trials. A number of
different courts cases could be heard. Number of different higher courts to which appeals can be
made. Varying number of types of judges hearing cases and making rulings may depend on the
issue involved. No jury trial, judges take on more active role in court proceedings. Depending the
specific court and issue being tried, a tribunal can be made of a single professional judge or a
combination of judges. There are ordinary and specialized courts in the German justice system.
Ordinary courts consist of civil, criminal, family and marriage laws. Specialized courts consist of
administrative law courts with three levels, labor law court, social law court, and financial courts.

Germanys Openness to FDI is 0.02, the Currency used in Germany is the Euro and the Fiscal
and Monetary Policies are 14 million euros in taxes cut in 2010, 2011 aiming to cut 24 million in
income taxes, this would benefit a particular low and middle income earners as well as families.
Major goal is to cut income tax tremendously. Germany does not have its own money so they
cannot use their own monetary policy. They have to abide by the ECB which stands for European
Central Bank. Germany is a Financially Stable country as of 2014, written in a financial stability
report.
Social Security, known as Social Insurance System in Germany, is focused on old age, disability,
and survivors. This covers employed persons, child care providers, and the recipients of benefits
are persons completing community service, and voluntary care. The health care in Germany has
a good reputation. Health care in Germany is divided into two categories, public health
insurance, and private medical care.

Market Size and Potential

Economy GDP

In Germany the GDP per capita (PPP) is 3.2 Trillion0.5% growth--.7% 5-year compound
annual growth--$40,007 per capita. The poverty in Germany is 15.5%. The Size of Labor Force:
42.65 MillionAgriculture: 1.6%Industry: 24.6%Services: 73.8%. The country has an
inflation Rate of 1.6%. The Currency Exchange Rates in Germany is U.S $1.00 equals 0.70
euros. Germanys Unemployment Rate is 5.3%. The Major Imports/Exports in Germany are as
follows: ExportsCommodities: Motor vehicles, machinery, chemicals, computer and electronic
products, electrical equipment, pharmaceuticals, metals, transport equipment, foodstuffs, textiles,
rubber, and plastic products. Partners: France 9.6%, UK 7.9%, US 6.9%, Netherlands6.9%,
China 5.8%, Austria 5.3%, Italy 5.1%, Poland 4.5%, Switzerland 4.3%. Imports1.319 trillion.
Commodities: Machinery, data processing equipment, vehicles, chemicals, oil and gas, metals,
electric equipment, pharmaceuticals, foodstuffs, agricultural products. Partners: Netherlands
13.8%, France 8%, China 6.6%, Belgium 6.3%, Italy 5.4%, UK 4.8%, Poland 4.6%, Czech
Republic 4.4%, Austria 4.3%, Switzerland 4.1%.

Infrastructure

In Germany there are 230,000 kilometers of roads and highways, 41,000 kilometers of railroads,
and a long list of Sea Ports that are in Germany. Some of the ports in Germany are Berlin, Bonn,
Bremen, Bremerhaven, Cologne, Cuxhaven, Dortmund, Duisburg, Dusseldorf, Hamburg,
Hamburg-Harburg, Karlsruhe, Kiel, Koblenz, Koln, Krefeld, Leer, Leipzig, Lubeck,
Ludwigshafen Am Rhein, Mainz, Neuss, Neustadt/Holstein, Nurnberg, Oldenburg, Orth,
Regensburg, Rostock, and Schleswig. The channels of distribution in Germany are divided into
categories of traditional retail trade, specialized superstores, non-food shop chains, DIY
superstores, discounters, supermarkets, mail orders, and department stores. Germany has fifteen
major airports like Frankfurt, Munich, Hamburg, and Dusseldorf. Germany also has eighteen
regional airports like Lubeck, Brunswick, Weeze, and Siegerland. Germany also has four

restricted airports. There is a wide variety of available housing in Germany. Most people do not
buy houses or home, they usually rent in Germany.
Media and Technology

In the country of Germany there are many types of media available. There is radio, television,
internet, and phones. There are many radio stations that play and are all different types of music
and talk stations. The television in Germany follows the BBC model, and has a mix of public fee
of broadcasters, and commercial TV networks. There are over twenty five digital television
channels. Computers in Germany use the QWERTZ key board, and use PCs, Macs and Ipads. In
Germany the cell phone service provided is the GSM cell phone technology. They have the same
providers as the U.S. but they use the GSM. Some of the providers are T-Mobile, Vodafone, and
O2. The land-line phone ownership in Germany is known as the worlds most modern telephone
and communications networks. In Germany they internet is MiFi instead of WiFi.
Competitive Environment

The three biggest competitors for our company would be those in the food industry. McDonalds
Deutschland Inc., La Luna Holding GmbH, and Nordsee GmbH.

Entry Modes
Direct Exports
Since our project is about a restaurant, direct export would be one of the most difficult if not the
most difficult market entry mode. Shipping food is very costly and we would have no control
over the way the customer handles it after. We would have to sell the food over the internet and
the customer would have to pay a lot of money to get the food in time. The customer would also
have to take steps like reheating when he or she gets the food. These are all things that would be
very difficult, expensive and would not be effective.

Indirect Exports
This entry mode also makes little sense with our idea. We would only be able to ship the main
ingredients to a different restaurant in Germany and we would have no control over how they
distribute the product. We would also have no control over how the middle man handles the food
and the customer would not get the experience that we want them to have.

Licensing
To allow a German firm to manufacture our products we would have to be an already established
restaurant in the US. The brand would have to be internationally known and there would have to
be a customer base already existing for this to be successful. Since we dont have these things
existing yet. I would say this would also not be the perfect entry mode for our idea.

Franchising
This, I believe would be the perfect entry mode for us. Even though we dont have an established
restaurant chain in the US, we have the idea and we have seen restaurants comparable to ours
succeed in the US. I think German franchisees would like the idea of the restaurant and think its
very refreshing, new and liked by the German population.

Wholly Owned Subsidiaries

Since we are a service company this would also be a great market entry mode. We would have
more control over the distribution and how our company is viewed in the new customer base. It
would be important to have a German agent because its a high risk entry mode and there is a
loss of cost involved.

Target Market
The target market for our project would be the young people in Germany in the age group from
15 to 30, which is very interested in new and exciting things. A lot of the people in that age group
have been to the US and fell in love with the healthy Mexican cuisine and they miss that in
Germany. A lot of people in that age group also have friends from that culture and since the
world is getting smaller and more and more people connect from different cultures they love to
experience all different kinds of food in their own country.
Todays youth expect to find food from all over the world at home and Mexican food is
especially liked by this dynamic new generation that was born in a time where travelling is
nothing strange and impossible anymore. This is why we chose that group as our target market
and we expect to be very successful with that. The market will also be growing over the years
since good healthy food always becomes more and more popular through word of mouth.
Younger people in Germany also start to eat out a lot more than the older generations do and they
love to meet with their friends at these places to eat and have a cocktail after.

Marketing Objectives
Quality Product
One objective is to establish reputation and product viability. The most important objective is to
make the concept of Mexican cuisine a niche taste for the populace. Infiltrating a new market for
a taste can be very difficult. The foods that are liked in one place are not going to always be liked
in another. Once the taste profile is established, the rest of the job becomes easier. To accomplish
this the objectives are to lay out a pattern of foods that are closer to the typical German palate
and then modify and offer more far-ranging flavors until everything is acceptable.
Another objective is to introduce easier food first. This will include standards of the burrito and
taco varieties. Local meats and vegetables are best used with the more traditional Mexican
spices. This is also the best way to establish the pricing point for the food by comparing it to the
foods in the area.
One way to complete this objective is to slowly increase the spice levels until a maximum of
satisfaction is met. Another way is to increase appeal and range of impact of the cuisine on the
local restaurant scene by 15% every quarter.
Increasing the restaurant's reach and impact is a must. The more the flavor profile is adopted and
extended, the better chances to expand the franchise and build further units. Getting one
restaurant to thrive is a challenge, but getting it to spread to other markets and cities is twice as

difficult. The best way to aim for this is to have an eye for it to begin with. The better the market
responds at first, the more overall infiltration will be allowed. This is why the objectives are built
around acceptance in the face of avoiding rejection. Mistakes cannot happen in the roll-out
phase. The plan is to avoid being ignored more than striving to be talked about.

Marketing Strategies to Reach Marketing Objectives

Product Strategies
How innovative is the product we plan to create? There is a lot of room for growth in the
Mexican restaurant food industry. There are few Mexican restaurants in Germany meaning there
will be potential growth for our business. There are however, some differences that our business
will have to consider.

Differentiation
Our product would be moderately hard to copy considering that the restaurant experience and
convenience would be a part of the product. The startup capital would be hard to copy as well.
The quality of ingredients, price, and recipe make up would be moderately easy to copy. For our
business product adaptations the company will need to look into competitors products and
compare theirs to ours.

Pricing
Pricing strategies will be made up of customary markups, different types of available discounts,
and also another comparison to our competitors prices. The available discounts we think our
company will benefit is providing college student discounts with a student I.D. We will also have
a stamp card that tracks a consumers purchase and their tenth purchase will be free. The
comparisons of the competitors prices with be from Chipotle, and Dolores. Based on the
webpage the local Dolores in Berlin, Germany charges approximately nine dollars a meal we
would be priced at seven or eight dollars a meal average and create a faster service that would
save time and money to make up the difference.

Promotions
Our companys promotion strategies will include media reaching out to our target market, sales
promotions like taco Tuesday. For the media promotions our company would like to use TV,
radio, and magazines. Social media sites are not as popular in Germany for advertising. The sales
promotions our company would like to provide are Fiesta Friday, Margarita Montog (Monday)
which includes half off margaritas on Mondays for two hours in the evening, and Salsa Sonntag
(Sunday) which is a promotion of chips and salsa. Lastly, our company will need to compare our
value of personal selling to competitors promotions to discover where we want to be in this area.

Recommendations
After analyzing the city populations in Germany we would recommend moving to Berlin,
Germany specifically. Berlins current population is 3.5 million according to Google search. This
population is large enough to sustain a company. If Buena Onda Fiesta would like to make an

international marketing venture our group would recommend a Mexican fast food restaurant with
high quality ingredients in Germany. Right now would be a great time to enter the market
because it is currently underdeveloped. The economy is strong and government regulations
wouldnt be too difficult to work with. By using our detailed marketing mix (price, product,
promotion, place) we think they could create a successful business.