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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, StHubert, 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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