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For information So Paulo is one of the biggest cities in the world with and estimated population of 11 million residents. Chronic Tacos priority is open um restaurant in a busy Mall and Street Stores with looking for a different Marketing target. Looking by this marketing plan national and international investors can understand why is able to invest in the Brazilian marketing. The objectives of the franchise is create a presence of a Mexican food in Brazil being the first in fast food style. Establish market share among fast food chains and to expand nationwide.
Focus on quality, low price, and excellent customer service are the ingredients that made us a successful of sales and combine with a huge market in So Paulo it will be one step for the future success of the company. Description of Product / Service. Chronic Tacos is a fast food Mexican restaurant which born in 2002, New Port Beach, California. The idea is serve a made-to-order Mexican food, with all fresh ingredients and full of flavor mixing with a sporting environment, serving beer, wine, pool tables, DC and huge TV’s. Basically the customers are adults under thirties at night and all GE during day time.
After three years in 2005 after successful sales in New Port Beach, they open a second restaurant in Huntington Beach, California, famous for surfboard and young adults. In 2006 the first franchise opened in San Clement. After eleven years, Chronic Tacos has more than 30 locations in USA and count with 4 locations in Vancouver, Canada. Basically the service and product serve are related with a Texas-Mexican food such as Tacos, Burritos, Quadrilles, Tattoos and Flaunts, Tortes, Salads, Nachos, pop, beer, wine and specials drinks.
The restaurants serving woo options of rice, white lime and Spanish rice, three kinds of beans, black, brown and refried Beans. For meats they call by proteins and they are: Carne SCADA – Grilled Beef Pool Soda – Grilled Chicken Ocarinas – Slow Cooked Pork AY Pastor – Sweet and Spicy Pork Shrimps – Grilled or Beer Battered Fish – Grilled or Beer Battered The cold bar is served always fresh as hot bar and is included for the customer order: cheese, onions, cilantro, limes, guacamole, fresh salsa, spicy and medium salsa, lettuce, cabbage, sour cream, spicy mayonnaise and Jalape??os.
All the plates are done by the ideas of the customer. 2. Features and Benefits to the customer. The great benefit of Chronic Tacos is always serving a fast, fresh and homemade food. Cheap and a delicious meal It can attract customers at lunch time who wants a quickly and health food. Night customers can enjoy premium beers and share plates before or after going to night club. Street stores can provide DC to give a aspect of pub and change De environment and atmosphere Catering services is also available. 3. Proprietary Issues. Chronic Tacos will be the unique TEX-mix fast food in So Paulo.
Everything on cold bar is included. Fresh and made upon order. Generous servings Serving Beer Open for Breakfast, Lunch and Dinner. Restaurant and bar on Street Stores. Source: Bloomfield, 2010. Source: Futurology, 2010. 4. Modifications needed. Amah for recipes with fish. It is typical in north pacific but really expensive fish in Brazil (South Atlantic) and the most commonly used in So Paulo is the dogfish. Ingredients as Tomlinson and Spices Must to be imported at first time to make sure the same taste it will be the same if you buy in California.
Rationale for Selection of Country and / or Market. 1 . Describe the Target Market for the company and product. Chronic Tacos has focus in customers at lunch time and dinner, especially customers from night clubs, in So Paulo, Brazil the target market it must to be the same customers, day time (shop mall) Family and night time (street restaurant) for young adults that can enjoy good food and music (hip-hop, electronic music). The Franchise has focus in give to the customer’s good quality of food in a low price.
In shop mall the intent is to meet all the social classes, but in street stores at night intend to looking for young adults, median and high classes who want spending money in alcoholic beverage. 2. Why is this appropriate market for the company and product. So Paulo is the biggest city in Brazil with 11,8 million residents and the urban area has 19,8 million of population that represent 10% of population of Brazil. 2 Continuing with data So Paulo has more than fifty five center mall, and has the largest hub of shopping centers in the country.
Brazil has a total of 609 shopping centers with a total in sales of R$ 114 billion (2012)3 . The average monthly rate in 2012 was 472 million people. Reasons why people go to shopping centers in Brazil: By Age Visit 17-24 25-34 35-44 45-54 55 Buy 37% 8% Ride Leisure 4% 5% 3% 2% Services 7% source: ALOHAS 2012. The night life in So Paulo is also a big market and it has a total of 15,000 bars and Pub, 13,000 restaurants and 2,000 night club which can be sold alcoholic beverage 24 hours a day. Usually night life in So Paulo starts to cool down at 5:00 am.
Franchise is a typical way for North American companies expand their markets and widely used by fast food and restaurant chains. According with Trade Start (2013) there is two concerns about operate a franchise abroad. The business model must be unique or different with a strong brand already agonize in the home country. Chronic Tacos working with the franchise system since 2006 with successful of sales in all outlet. Between 2004 and 2011 the number of Brazilian traveling to US increase 292%, from 385,000 to 1,508,000 and the top cities are Miami, New York, Los Angles and Lass Vegas. The people in Brazil are addict to the American culture, in cloths and food. Legal/Political/Cultural Impact The franchise will work under the foreign country law and in this case So Paulo, Brazil. Chronic Tacos must register the name in So Paulo, this register is one security to protect the trade mark and brand. The franchise must to get license from Health Inspection for operate legally. It must to respect the time of work hours of each employee by labor laws. There are specific laws for people who work at night and weekends earning extra wages.
Brazil is a democracy that contributes for the growth of the companies with government rules and regulations. It was not possible to find cases of nationalization of companies by Brazilian government. Companies do not need be afraid of appropriation by the government. One problem that affects companies and the population is the high tax that everyone has to pay to the government. At least seven kinds of tax must to be paid, as four federal tax and state and city tax, import and income tax. All this tax can reduce drastically the profit of the companies.
Rice, beans, beef, chicken and sea foods are present in the Brazilian diet. Brazil is a country with a society that absorbs the North America Culture as we can see, Burger King, Mac Dona’s, Nikkei, Pizza Hut, Subway are example of success sales in So Paulo, Brazil. Brazilian are friendly and they are always willing to try new flavors and especially new environments. The People in So Paulo don’t have too much time and a fast food is the first option for save money and time. After work it is really common “happy hours” with the co-workers and customers try to find new places with good food, nice music and drinks.
Brazilian passions are: Soccer, Women and Beer. Pricing / Promotion Mechanisms. 1. Product. Chronic Tacos will introduce in Brazilian marketing different kinds of Mexican dishes with modification by American Culture specifically California. Pops and alcoholic drinks will be available on both type of stores and serving beer at shop malls stores and beer and sophisticated drinks at street stores. For promoting the dishes it will offered to the customers. The company has emphasis on extreme sports.