International Feasibility Study for Tastecard

Topics: Value chain, Marketing, Restaurant Pages: 20 (5225 words) Published: May 27, 2012

International Market
Feasibility Study
1.0. – Executive Summary

After conducting an analysis of the French business environment, findings suggest that tastecard would achieve a good level of success in entering the French market. It has been established that France and the UK have many similarities in terms of dining out, culture and the economy. The fact that France is well known for their love of food, and that being only a partial aspect of what France has to offer, tastecard will be able to enter this new market with minimal difficulty. With the rising global demand in ‘daily deals’ and the on-going expansion of restaurant chains in France, the tastecard scheme would be positively affected. In light of this, pricing strategies, promotions and adaptations will also assist tastecard in entering the foreign market place.

In contrast, both La Four Chette and Groupon (France) have proved to be large competitors in this line of business and pose as the greatest threat in hindering tastecard’s international move. Consequently, although tastecard will achieve a reasonable amount of market share when expanding into France, it is not certain that they can establish themselves as market leaders. A future recommendation for tastecard is to continue growing into new foreign markets, establishing and developing their global brand name.

* 2.0. – Company Background and Target Market

Starting out as tastelondon in 2006, tastecard quickly established themselves as the capitals leading diners club. In July 2010, after their rapid growth, tastelondon was re-branded and newly named tastecard. Tastecard is the UK & Ireland’s Largest Diners’ Club with over 5500+ participating restaurants, offering over 500,000 members’ huge savings every time they dine out, allowing members to enjoy taste discounts nationwide (Tastecard, 2012).

Tastecard works by giving each member a personalised membership card which is shown at participating restaurants in order to receive a discount. All restaurants involved offer members one of two deals; either: * 50% off the total food bill

* 2 for 1 meal offer
All members that own a tastecard will receive the privilege of saving, on average, £25-£30 each time the card is used.
Restaurants involved with the tastecard scheme range from high-end fine dining establishments by Marco Pierre White, Conran and Mark Baumann, to popular favourites such as PizzaExpress, La Tasca and Bella Italia etc..

The tastecard scheme consists of both a Website (Appendix 1.0) and a Mobile Phone App (Appendix 2.0). Both of these channels give consumers full access to details on participating restaurants, their locations, reviews, contact details and offer availability.

The target market for the tastecard is aimed at families, couples and students. Couples will take kindly to the 2 for 1 offer at participating restaurants; whereas families and students who maybe strapped for cash will benefit from the 50% off the total food bill at participating restaurants.

* 3.0. – Business Environment (PESTEL Analysis)

* 3.1. – Political Factors

In 2010, the French government decided to slash the value-added tax from 19.6% to 5.5% over all restaurants in France, allowing one of France’s most important industries a greatly needed boost. This change will see a seven-year lobbying campaign by the French government, with restaurant trade groups agreeing to create 40,000 new jobs over two years (Liu, 2009). The drop in VAT will allow French citizens and tourists to dine out at more affordable prices. In recent times, with consumer’s purchasing power in decline, dining out has become more of a luxurious leisure pursuit, not a necessity. According to Liu (2009), French eateries have been struggling to stay afloat since the start of recession back in 2008. The number of people going out to restaurants in France has dropped by 20% during this period. This VAT reduction...
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