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Posted on May 1st, 2014, by

The functional strategy for Brazil market entry will be build upon differentiation with the emphasis on luxury hotel staying experience. As for New Zealand’s café, the emphasis will also be made on differentiation, as for others cafes of this global network but as usual Hard Rock Café’s management will research the tastes of local public and tourists to include the most appropriate dishes into the menu to gain the competitive advantage through the right choice of food.  In terms of manufacturing configurations’ choice, the company will choose multi-domestic manufacturing (market expansion) in individual countries, because with the global expansion, the local demand becomes significant so manufacturing is getting closer to local customers. (Daniels, Radebaugh, and Sullivan, 2004, n.a.)

Sherchan (2009, Web) notes that one of the advantages of Hard Rock Café is its flexibility with the product design and so many other aspects of their restaurants based on the local market they enter into.  It means that the company adapts its services in accordance with the expectations of the local customers. Every different restaurant has unique design customizing to the local country they are in.’ (Sherchan, 2009, Web) One of the extremely important aspects of this approach is the respect of the tradition and culture of the local community. Silverthorne (2005, p.46) indicates that cultural differences play crucial role in understanding of social and organizational behavior. It means that culture is an important determinant of organizational success. Cultural values influence employee perceptions of the environment, expectations, and individual behavior. If people have different assumptions, then they will see events and react to them differently. People from different cultures approach problems differently and have different ways to resolve and apply solutions to problems.

Basically, the need in cooperation is even higher in the case when the company is diverse.  (Silverthorne, 2005) Therefore, the probability of failure may be reduced if organization is aware of cultural differences and cultural sensitivity.  Cultural sensitivity includes the understanding of traditions of other people, their way of living and beliefs, and excludes any prejudices and preconceptions that may be applied towards other cultures.  It should be added that the failure in cultural sensitivity may result in loss of the clients, market share, sales, and profits and finally, company’s reputation. The major skills that are needed to work with individuals with cultural differences are flexibility, ability to listen and hear others and personal commitment. An organization culture that supports flexibility is necessary so that HR specialists can manage effectively in a diverse environment

As for the marketing strategy that will be used both in Brazil and New Zealand, the marketing campaign will target men and women 25 40y.o. with middle and high level of income who are interested in an active city life, who are in love with music and style. Hard Rock Café’s target audience is very mobile, loves communication and often uses the latest innovative tools for the communication. Social media will attract the attention of the target audience immediately and also to distribute it further to other users. Besides, the usage of context advertising will allow Hard Rock Café to target specifically those users that are interested in cafes in the area or looking for a hotel, the decision of the textual advertising appearance to the certain user will be made by automated systems based on the content displayed to the user. Both markets of Brazil and New Zealand Hard Rock Café’s aims to enter into are extremely competitive markets, therefore company should pay close attention to the effective planning of the marketing campaigns,  Hard Rock Café may use a number of marketing schemes to penetrate the desired market. These strategies include brand image enhancing public-relation building activities, sponsorship advertisements, and customer-response stimulating sales promotions.

Sales promotions will be an effective tool that will allow drawing new customers, increasing restaurant traffic, building product awareness, and satisfying returning customers. Public relations are a less costly but credible brand-reinforcing promotional tactic. For example, newsletters, event coverage, publicity and positive reviews and articles from reputable food/hotel critics will enhance the brand authenticity and relationship with its target market. In addition, these tools have a far-reaching impact extending to the Internet, television and print media. For consistent message, it will be beneficial to hire a local public relations firm that will promote reviews and articles about the restaurant, its cuisine, and promotions.

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