Deutsche Haus in the German Market - Coursework Example

Deutsche Haus Restaurant With the increasing levels of globalization emanating from liberalization of markets, efficient flow of information, and integration of markets, the level of competition has increased tremendously. This has resulted from the entry of multinational companies that have huge financial base to penetrate the market, position their products strategically, and segment the market. This has forced other companies to diversify their operations in order to reduce the risk associated with concentrating on a single market. Political stability in UK has attracted various multinational businesses which are ready to tap in the increasing demand for fast foods (Kosseva and Colin 2013). Furthermore, with the harsh economic times, people are spending much of their time working. Therefore, family roles have changed tremendously. Initially, people used to get time to prepare meals in their homes (Baker 2006). However, this aspect has changed. People prefer to purchase fast food in order to save time. Deutsche Haus will take this as an opportunity to penetrate and establish itself in the German market. Concept UK has one of the aging populations in the world. People are currently shifting towards traditional foods. On the other hand, the young people form the latest market segment. As a result, even as the restaurant concentrates on the foods for the old, the impact of the young people in the market cannot be ignored (Asefa 2005). As a result, the business will major on the following dishes. Apfelstrudel This is a delicious pastry which has never lost its popularity among the Germans since 18th century. It is mainly filled with apples which have been flavored with Cinnamon, and Rasins. The pastry is made from certain elastic dough. The main will target all people irrespective of their age or even culture. Eintopf This is a traditional German stew which is made from a broth, some vegetables, potatoes, and some pieces of meat. It is mainly in demand during the winter season. Kasespatzle This is a meal which is common in South Germany. However, people have become more eager to test new meals. Therefore, it will mainly target the tourists and other people who will like to taste the foods from the southern people. It is mainly made of wheat flour and eggs. It is served when hot, i.e. straight from the pan. Kartoffelpuffer These are flied pancakes that are made from potatoes that have been grounded and mixed with flour. One can enjoy the meal together with meat or fish. Furthermore, one can have it together with blueberries, or sugar. People mainly look for them during the winter season. Sauerbraten Germans like to consume their own products. This is one of the national dishes of Germany. It is made from local meat which has been marinated with wine, vinegar, spices, and herbs. It will be served with cabbage, or dumplings. Other meals Diversification will be an important aspect in ensuring that the business avoid the risks and uncertainties associated with concentrating on a single market. As a result, the restaurant will prepare; Schwarzwalder Kirschtorte, Brezel, Schnitzel, and Wurst. Market Although UK market has not been growing, the changing lifestyle especially by the young people has created an opportunity for the restaurant to thrive. The current competitors have not been closing the current gap in the market (Matias, Peter and Manuela 2013). As a result, customers continue to look for substitutes in order to fulfill their desires. Deutsche Haus will focus more on the school going generation and workers. Many of the students rely on hotels especially for their lunch. On the other hand, the working class does not have time to prepare meals while in the office. As a result, they rely on the restaurants. In addition, they have a disposable income to be used in purchasing even the expensive meals (Macleod and Steven 2011). As a result, the marketing department will ensure that it reaches this target market. Deutsche Haus will use simple idea of high value at moderate cost to set its prices. The business argument will be that when customers feel that they are getting a good deal of their money, they are likely to pay more for the products. Therefore, it will ensure that it maintains strict controls in the source of its raw materials as well as service to the customer in order to justify the cost of its products (Duval 2004). Furthermore, the firm will diversify its source of raw materials. This will reduce the power of suppliers. This is through ensuring that when one supplier fails to honor the obligation of supplying the materials, there are other options (Haggar 2007). This strategy will create customer loyalty towards its products due to the reliability of the business. Many of the current businesses in the market have failed to live up to the expectations of the market because they are not reliable. Customers lack some of their favorite meals, an aspect that has been attributed to delay by the suppliers. As a result, in order to reduce this aspect, a contract will be signed between the suppliers and the business. London market has an influx of restaurants. However, majority of them have not been able to brand themselves and to offer intense competition to major players. As a result, they depend on their popularity in the grassroots for their existence. However, currently, people have become more concerned with what they are consuming. With the increasing levels of technology, people no longer have time for physical activities (Lockyer 2007). As a result, research indicates that more people are suffering from chronic diseases. Furthermore, the number of people suffering from obesity is increasing tremendously. Therefore, people are changing their eating habits in order to avoid adding weights. Small restaurants have been accused of putting emphasis on sales and neglecting the quality of the food being served to its customers. This has made many people to shift their attention to major restaurants. Nevertheless, these restaurants are charging very high amounts for their meals. This has made a certain segment of the market to be unable to afford the meals. Deutsche Haus will target this market through providing high quality meals at very low costs. In order to achieve this objective, the firm will focus on increasing operation efficiency in order to reduce the costs associated with inefficiencies. This will make it possible for the restaurant to compete with other major restaurants that are located in different parts of London. Products and Services The products being offered will concentrate more on offering the customers with satisfaction. This is in order to attract the customers, an aspect that will increase the number of referrals. The raw materials will be ordered based on demand. The restaurant will be dealing with highly perishable products (Cothran 2003). As a result, the restaurants will be planning ahead of high seasons in order to ensure that people do not lack their meal of choice when they them, while at the same time, there is no stock that will go bad in the stores, an aspect that could bring losses to the company. The restaurants will maintain a German taste despite being located in central London. Apart from the language used, the rest of the service will follow the German style. Many of the people in London are willing to test new cultural foods (Andreas 2011. Therefore, they will be prepared using a German recipe. In addition, the chefs will be trained on how to behave like Germans in order to attract the attention of the locals who will be keen to experience on the German culture. London is well known for its people who like fun. Beer is one of the products that are taken in high quantities in Central London. In order to diversify the source of revenue, the hotel has agreed with Leopold who is the owner of German brewing company to sell his products in our premises. This will also aim at attracting the beer-loving population (Jamieson 2006). The beer will also attract beer enthusiast to the German Haus, an aspect that will play a significant role in increasing the overall sales of the restaurants. High returns will therefore, make it possible for the business to open other subsidiaries in other parts of London. Management: Risks Although London is a multicultural society, many people have already become loyal to the major restaurants in town. Apart from the small restaurants in the streets, the major firms have been able to invest on their brand. As a result, they have been able to segment the market and position their products and services strategically in the market. In addition, they have set up barriers of entry through accumulation of huge sums of money. This provides a risk to Deutsche Haus. Therefore, even after spending huge amounts of money to bring new products in an already saturated market, people might not be pleased with their tastes. This may make it hard for the business to raise enough money to sustain its operations in the market. However, the business can overcome this hurdle through investing heavily in advertising and customer relationship management ( Apostolopoulos and Dennis 2002). Moreover, the restaurants should ensure that it sets up effective strategies to compete with other major players in the market. This can be through branding and effective management of the public relations activities. The meals that will be prepared in the restaurants will be of German origin. It will be hard to get the necessary raw materials to prepare them. This would make it very hard to sustain the operations of the business in the market. However, before the business starts its operations in the market, it should contract farmers who will be growing some of the crops that will be required to produce the meals (Air & Waste Management Association 2004). In addition, the restaurants would enter into a contract with the suppliers. With the current high competition levels, competitors are willing to use all available means to block the prosperity of other competitors in the market. Therefore, they can use the suppliers to stall the operations of Deutsche Haus. Contracting the suppliers will make them liable in case of any malicious delays (Middleton, and Philip 2001). Management Process Map The sales will be processed as follows Once a customer orders a meal, an order will be created with specific requirements A soft drink will be offered in order to keep the client busy as the meal is being prepared Once the meal is ready, a customer will be served Payment will be made The customers will be required to fill a survey in order to determine their levels of satisfaction and areas that they would like to be changed or improved. Marketing (Advertising) Currently, the level of competition in the market is very high. As a result, traditional advertising has become very expensive as the media houses have hiked their prices in order to maximize their returns. Therefore, only the major restaurants are able to afford the high costs being charged by these media houses. However, with the improvement of technology across the globe, new advertising strategies have arisen. Social media has become one of the best advertising platforms (Baldwin 2009). It is cheap and reliable. In addition, it is able to reach a very huge mass market. Many customers are using the platform to search for their products of choice. In addition, they are evaluating the views of others concerning the products or services being offered by a particular company. Therefore, the business will use the media to reach the target market especially the young generation who have become fond of this platform. In addition, it will use the social media to conduct research on different aspects that affect the consumption behavior of the market (Liang and Xin 2010). This will make it easier for the business to know when to make changes in order to satisfy the tastes and preferences of the target market. Furthermore, the business will use audio, visual, and even print media to advertise its products. Financial Projections The initial cost of establishing the business will be $25,000. The largest share will go towards advertising the business. On the other hand, the major costs will be incurred through the purchase of the machinery and current technologies that are aimed at reducing the costs of operations. Salaries and raw materials will also take a large amount of the business money. However, quality will be the first priority for the business. In addition, the restaurants will ensure that it hires highly qualified personnel who will be able to understand the varying needs of the target market. In the first quarter of the year, the business will not make huge amounts of the money. Money raised will be reinvested in the business in order to improve the operations of the business. However, by the second year, the restaurants will have coped with the varying needs of the market. References Air & Waste Management Association. 2004. Sustainable Development and the Importance of Chemicals Management in the 21st Century December 7-9, 2004, Westin Hotel, Ottawa, Ontario, Canada. Pittsburgh, Pa: Air & Waste Management Association. 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