International Marketing Strategies for Café de Coral

Company Background

Introduction

The following discussion is presented in a report. To formulate this report, I have chosen Café de coral Hong Kong-based organisation that is looking for an international expansion. The report aims to identify marketing strategy and tactics and other various international marketing aspects that can enable the chosen organisation to expand its business on the international level.

Company Background

Café de coral Holdings, Ltd. Is it a Hong Kong Based and listed Self Service fast-food chain Restaurant. Founded in 1968 since then the Café de coral has grown from one café to over 470 Separate Outlets in addition to 4 ISO-certified food processing plants. Which is now the largest & Famous Chinese Food Chain restaurant in Hong Kong & Mainland Chain. Café de coral specializes in Chinese and western delicacies. Restaurants serve 300,000 Customers in Hong Kong on daily basis. Café de coral currently employees 19,000 members.

Café de coral revenue for the year ended 31 March 2021 was HK$ 6,714.3 million and has delivered the shareholders profit of HK$ 359.1 million a decrease of 15.7% due to the ongoing pandemic (covid-19) (Annual Report, 2021).

The Current Market of Café de Coral

Café de Coral is Asia's largest publicly traded Chinese fast-food and catering corporation. When it comes to the Hong Kong market, café de coral has a significant presence. With almost 50 years in the fast-food industry, the company has established itself as a market leader. Café de Coral is a well-known brand in Hong Kong, where it is known for its quick-serve restaurants (QSRs) and low prices. Café de Coral has dominated the Hong Kong market and has undoubtedly enhanced the brand's reputation through innovation.

Furthermore, Café de Coral has a 21% (Chamber, 2021) market share in Hong Kong compared to other competitors such as Fairwood and Maxims. Which is the highest percentage of market share. Café de coral has grown outward from Hong Kong to other neighbouring cities and regions, Groups already has expanded to over 100 Outlets in Mainland China, continuously aiming their expansion into Greater Bay regions (SCMP, 2021).

Scope and key concepts of international marketing

International marketing is a vast term and used by every kind of big or small organisation and can be defined as a multinational process of exchange of goods and services across national boundaries. International marketing is complicated than local marketing. According to the American Marketing Association (AMA) “international marketing is the multinational process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives”(International Marketing, 2021).

The Current Market of Café de Coral

The scope of international Marketing 

1.Imports: Importing is purchasing a product or services from other countries and reselling in your own country. One of the most used methods in imports is e-commerce.  

2.Exports: Export is essential in international marketing; Exporting means sending domestic exporting products and services from one country to another.

3.Contract Manufacturing: Contract Manufacturing is a contract, which is made between two parties an organization to the manufacture who make out the products. Through the contract, the manufacturing cost is low. The firm does not have to be worried about it because then it will be the Manufacturer's responsibility to assemble the products.

4.Joint Venturing: Joint venture is a business entity undertaken by two or more organisations together to start a new business to enter a foreign market by pooling their resources. Nevertheless, venturing can be valuable to grow the scope of international marketing  

5.Fully Owned Manufacturing: Organizations with the interest of foreign markets go to other countries to establish fully owned Manufacturing facilities. Where a firm has full control over their quality and productions.

The rationale for Café de Coral to market internationally.

Nowadays, café de coral restaurant provides the quick services, casual and relaxed dining chain, formal serving, and food processing. Over 450 stores are operating by the café de coral, beside it, in Hong Kong and mainland, it operates and process the food plant by 4 ISO certified. Since 2015, café de coral is essential member and partner of Hang Seng Corporate Sustainability Benchmark Index, with putting the high concern about operation and development of sustainable.

There are a variety of reasons for a company or organisation to expand their business internationally. However, the most common for any company or organisation is to gain higher revenue and build products or services to have global brand exposure. However, not limited to these, companies or origination go international:

-For large market size

-Increase Sales and Profitability

-Demand for products

-Investment Opportunity

-Government Incentives

-Generate Economies of scale

-Attract new customers.

Café de Coral can take a variety of routes to market, including the following:

 Café de Coral is Asia's most famous Chinese quick serve restaurant (QSR). Café de Coral can join the worldwide market in a variety of ways.

Franchising: Café de Coral Holdings, Ltd can franchise their business, as the group is a Successful and household name in Chinese cuisine in Hong Kong and China. Café de Coral can start offering Franchise to individual owners or corporations in different countries. Where café de coral can get brand exposure, and this will also generate company revenue. Franchising is the most effective and easiest method to market internationally.  

Licensing: licensing involves two companies that come to a business agreement, wherein one company gives official permission to another company to use intellectual property such as patents, trademarks etc. under agreement conditions. Café de coral can convince the local company of a foreign country to sell their products. Although the process is not easy since the company needs to gain trust and make sure that the products are right for the market.

Joint venture: Café de coral can join other food companies to sell their food in this way café de coral understands the market better and has a minimal risk which is associated with starting a new business.

Partnering: In Partnership two business associations tie up as co-owner and they must share profit or loss equally.

Direct Sale: Direct sales is the most famous and effective in terms of a company if they want full control of the business. This method does not require any mediators. business can directly sell their product and service to consumers.