Nova Southeastern University
H. Wayne Huizenga School
of Business & Entrepreneurship
Assignment for Course: MKT 5833 EVT
Submitted to: Maria Petrescu
Submitted by: Mertcan Karabuk
N01636380
Date of Submission: 06/09/2015
Title of Assignment: Term Project
CERTIFICATION OF AUTHORSHIP: I certify that I am the author of this
paper and that any assistance I received in its preparation is fully
acknowledged and disclosed in the paper. I have also cited any sources from
which I used data, ideas or words, either quoted directly or paraphrased. I
also certify that this paper was prepared by me specifically for this course.
Student's Signature: ______________________________
*****************************************************************
Instructor's Grade on Assignment:
Instructor's Comments:
The company I chose for the international marketing strategy project is Chipotle.
Chipotle is a chain restaurant which has Mexican cuisine items on the menu. The
company can be seen as a fast food company, however according to the company, they
are using quality and fresh ingredients in meals. Generally, fast food restaurants are not
healthy and fresh if we compare fast food restaurants with fine dining restaurants.
According to Chipotle; “When Chipotle opened its first restaurant in 1993, the idea was
simple: show that food served fast didn't have to be a “fast-food” experience. Using
high-quality raw ingredients, classic cooking techniques, and distinctive interior design,
we brought features from the realm of fine dining to the world of quick-service
restaurants.” (Chipotle.com/company – 2015).
Briefly it says being a fast food company does not mean that food must be the
same as other traditional fast food items. Their image in customers’ minds is handmade
meals from a fast food chain restaurant. Chipotle’s best competitive advantage among
the competitors is their customers’ loyalty. Because the brand image is positive and
working like a charm. Their loyalty also people around the existing customers. The
easiest way of the market a product is word of mouth. Chipotle is aware of that and uses
it against competitors. Also company treats every customer same and give them enough
importance to keep them stick with the company. Chipotle is a Mexican grill, but the
customers’ origins generally are not Mexican. Innovation also plays a significant factor
in the marketing strategy for the companies. Chipotle’s modern look and innovative
designs attract more customers every day. The company plays its social media cards
very well and accurately. In today’s world, if we consider young population is getting
more and more social, therefore being a social company has its advantages. Traditional
marketing strategies are not effective as before. Using social media as a marketing
channel helps companies to reach both existing and potential customers easily and
effectively.
Turkey will be the country that I would like to bring Chipotle to the market.
Turkey is a fast developing country. Many companies such as Uber, Papa John’s Pizza
and similar international companies are trying to enter the Turkish Market. Current
number of international companies existing in Turkey is 41,397. The current population
of Turkey is 77.70 million and GDP based on the US dollar is $822.1 billion. As we
look at the past GDP scores, for example in 2002 it was $231 billion. It is increasing
rapidly. Turkey is also among one of the fastest growing economies in OECD countries.
Turkey’s Gross National Income is 1.409 PPP trillion dollars. Half of the population in
Turkey is under the age of 30. Which means the population is young and proactive. The
exact number of the young population is over $30 million.
According to the World Bank doing business report 2014, it takes 6 days to start
up a company in Turkey. Of course, this is an average and it does not mean every
company can make it in 6 days. Turkey promises every investor that they will be treated
equally. Transportation for the shipment routes and system are well organized and easy
to reach. Location of the country is also promising for the investors. Turkey is between
Europe and Asia which means it is easy to access approximately 1.5 billion people in
Europe and other countries. To attract more investors; corporate income tax has reduced
from %33 to %20. Government also offers some incentives for the investors considering
regional investments. It is important to note that, top competitors of Chipotle such as
Taco Bell, Panda Inn and Darden Restaurants do not exist in Turkey. Therefore, it will
be easy to adapt and serve people of Turkey. Turkish cuisine is really rich and
traditional. Therefore, people living in Turkey may find Chipotle hard to choose and
adapt. On Chipotle’s menu, name of the items can be hard to pronounce by the Turkish
Customers.
World Bank 2013
SWOT Analysis
Strengths
 On many reports and research, it is reported that Turkey’s GPD growth rate is promising
for investments.
 Regulations for both banks and financial related actions are strictly enforced.
 It can be easy to transfer and reach more customers in Asia and Europe via Turkey
because of its geographical position.
 Labor cost is low.
Weaknesses
 Taxes such as VA, SCT (Special Consumption Tax), gas etc.
 It may be hard to change people’s traditional eating habits.
Opportunities
 Number of International and domestic tourists visiting Turkey is high and still increasing.
 There is a perception on increase of people’s consumption. Therefore, per capita income
is going to increase.
 There will be special incentives for foreign companies and also exemptions related to
financing and taxes.
Threats
 Diplomatic discordance and current situation of Middle East countries.
 There are lots of alternatives already existing in Turkey for the international companies.
 Current market may not accept new international companies.
As I mentioned before, Chipotle has competitive advantage in the market.
Because it’s other competitors in US do not exist in Turkey. Therefore, it will be easy
to adapt and promote the brand image. A new trend is getting popular all around the
world which is healthy and organic food concept. However, this concept was already
there, but people were not aware of that until they found out the disadvantages of having
unhealthy food in their stomachs.
Adaptation of the brand will be challenging. Unlike McDonalds, Burger King,
KFC, Arby’s, Chipotle has its own concept and ingredients. In Turkey, there are meals
similar to Chipotle’s items. Therefore, adaptation process should be done accurately and
carefully. For example, beans which is one of the main ingredients in Chipotle’s meals
are popular in Turkish cuisine too.
Pricing strategy is really sensitive in Turkey. Because people in Turkey
generally seek for the best service and food with less prices. The concept of the Chipotle
differs from the traditional eating habits in Turkey. Turkish people do not like choosing
from more than 5 alternatives that can be placed in the meal. Therefore, there should be
combos and prices according to that situation. We have a meal called “durum doner”
which is similar to the burrito. Average price of a durum doner differs from 10 TL ($4)
to 20 TL ($8). Pricing should be done considering the price criteria already exists for
the items in Turkey.
Chipotle is a social company so as Turkish People and the company uses all
media channels to reach both existing and potential customers. Social media marketing
will be the main advertising and marketing channel for the company. Company should
find similarities between their meal and Turkish culture and merge those similarities
into one great example promotion. Publishing a YouTube video works great if you want
to deliver a message to consumers. As we all know, YouTube bothers us with its
advertisements may be in every 3-5 videos. Company can use geographically adjusted
advertisements which will be in Turkish to the consumers.
Place is the vital part because company cannot open businesses in every city in
Turkey. There are major cities that the company can adapt such as Istanbul, Ankara and
Izmir. However, first businesses should be in Istanbul. Istanbul is a modern and
metropolitan city in Turkey. Culture is totally different in Istanbul. It is a mixture of
Turkish, American and European culture. Therefore the adaptation period will be fast
and accurate. Chipotle’s brand image is fresh food with the speed of a fast food
restaurant. Turkey has really good and organic agriculture system. The company can
also create a labor for the farmers and other wholesalers.
Recommendation
The Company should be aware of the culture and traditions of the country.
Agreements with the local companies will help them to develop an accurate marketing
plan. Turkish people love international companies which give importance to their
specific holidays and days such as Independence Day and Ramadan. Creating a
Ramadan meal combo will definitely attract customers who are not familiar to the
Mexican grill.
References
www.chipotle.com/company
http://data.worldbank.org/country/turkey

Mertcan Karabuk MKT5833 - Term Project

  • 1.
    Nova Southeastern University H.Wayne Huizenga School of Business & Entrepreneurship Assignment for Course: MKT 5833 EVT Submitted to: Maria Petrescu Submitted by: Mertcan Karabuk N01636380 Date of Submission: 06/09/2015 Title of Assignment: Term Project CERTIFICATION OF AUTHORSHIP: I certify that I am the author of this paper and that any assistance I received in its preparation is fully acknowledged and disclosed in the paper. I have also cited any sources from which I used data, ideas or words, either quoted directly or paraphrased. I also certify that this paper was prepared by me specifically for this course. Student's Signature: ______________________________ ***************************************************************** Instructor's Grade on Assignment: Instructor's Comments:
  • 2.
    The company Ichose for the international marketing strategy project is Chipotle. Chipotle is a chain restaurant which has Mexican cuisine items on the menu. The company can be seen as a fast food company, however according to the company, they are using quality and fresh ingredients in meals. Generally, fast food restaurants are not healthy and fresh if we compare fast food restaurants with fine dining restaurants. According to Chipotle; “When Chipotle opened its first restaurant in 1993, the idea was simple: show that food served fast didn't have to be a “fast-food” experience. Using high-quality raw ingredients, classic cooking techniques, and distinctive interior design, we brought features from the realm of fine dining to the world of quick-service restaurants.” (Chipotle.com/company – 2015). Briefly it says being a fast food company does not mean that food must be the same as other traditional fast food items. Their image in customers’ minds is handmade meals from a fast food chain restaurant. Chipotle’s best competitive advantage among the competitors is their customers’ loyalty. Because the brand image is positive and working like a charm. Their loyalty also people around the existing customers. The easiest way of the market a product is word of mouth. Chipotle is aware of that and uses it against competitors. Also company treats every customer same and give them enough importance to keep them stick with the company. Chipotle is a Mexican grill, but the customers’ origins generally are not Mexican. Innovation also plays a significant factor in the marketing strategy for the companies. Chipotle’s modern look and innovative designs attract more customers every day. The company plays its social media cards very well and accurately. In today’s world, if we consider young population is getting more and more social, therefore being a social company has its advantages. Traditional
  • 3.
    marketing strategies arenot effective as before. Using social media as a marketing channel helps companies to reach both existing and potential customers easily and effectively. Turkey will be the country that I would like to bring Chipotle to the market. Turkey is a fast developing country. Many companies such as Uber, Papa John’s Pizza and similar international companies are trying to enter the Turkish Market. Current number of international companies existing in Turkey is 41,397. The current population of Turkey is 77.70 million and GDP based on the US dollar is $822.1 billion. As we look at the past GDP scores, for example in 2002 it was $231 billion. It is increasing rapidly. Turkey is also among one of the fastest growing economies in OECD countries. Turkey’s Gross National Income is 1.409 PPP trillion dollars. Half of the population in Turkey is under the age of 30. Which means the population is young and proactive. The exact number of the young population is over $30 million. According to the World Bank doing business report 2014, it takes 6 days to start up a company in Turkey. Of course, this is an average and it does not mean every company can make it in 6 days. Turkey promises every investor that they will be treated equally. Transportation for the shipment routes and system are well organized and easy to reach. Location of the country is also promising for the investors. Turkey is between Europe and Asia which means it is easy to access approximately 1.5 billion people in Europe and other countries. To attract more investors; corporate income tax has reduced from %33 to %20. Government also offers some incentives for the investors considering regional investments. It is important to note that, top competitors of Chipotle such as Taco Bell, Panda Inn and Darden Restaurants do not exist in Turkey. Therefore, it will
  • 4.
    be easy toadapt and serve people of Turkey. Turkish cuisine is really rich and traditional. Therefore, people living in Turkey may find Chipotle hard to choose and adapt. On Chipotle’s menu, name of the items can be hard to pronounce by the Turkish Customers. World Bank 2013
  • 5.
    SWOT Analysis Strengths  Onmany reports and research, it is reported that Turkey’s GPD growth rate is promising for investments.  Regulations for both banks and financial related actions are strictly enforced.  It can be easy to transfer and reach more customers in Asia and Europe via Turkey because of its geographical position.  Labor cost is low. Weaknesses  Taxes such as VA, SCT (Special Consumption Tax), gas etc.  It may be hard to change people’s traditional eating habits. Opportunities  Number of International and domestic tourists visiting Turkey is high and still increasing.  There is a perception on increase of people’s consumption. Therefore, per capita income is going to increase.  There will be special incentives for foreign companies and also exemptions related to financing and taxes. Threats  Diplomatic discordance and current situation of Middle East countries.  There are lots of alternatives already existing in Turkey for the international companies.  Current market may not accept new international companies.
  • 6.
    As I mentionedbefore, Chipotle has competitive advantage in the market. Because it’s other competitors in US do not exist in Turkey. Therefore, it will be easy to adapt and promote the brand image. A new trend is getting popular all around the world which is healthy and organic food concept. However, this concept was already there, but people were not aware of that until they found out the disadvantages of having unhealthy food in their stomachs. Adaptation of the brand will be challenging. Unlike McDonalds, Burger King, KFC, Arby’s, Chipotle has its own concept and ingredients. In Turkey, there are meals similar to Chipotle’s items. Therefore, adaptation process should be done accurately and carefully. For example, beans which is one of the main ingredients in Chipotle’s meals are popular in Turkish cuisine too. Pricing strategy is really sensitive in Turkey. Because people in Turkey generally seek for the best service and food with less prices. The concept of the Chipotle differs from the traditional eating habits in Turkey. Turkish people do not like choosing from more than 5 alternatives that can be placed in the meal. Therefore, there should be combos and prices according to that situation. We have a meal called “durum doner” which is similar to the burrito. Average price of a durum doner differs from 10 TL ($4) to 20 TL ($8). Pricing should be done considering the price criteria already exists for the items in Turkey. Chipotle is a social company so as Turkish People and the company uses all media channels to reach both existing and potential customers. Social media marketing will be the main advertising and marketing channel for the company. Company should find similarities between their meal and Turkish culture and merge those similarities
  • 7.
    into one greatexample promotion. Publishing a YouTube video works great if you want to deliver a message to consumers. As we all know, YouTube bothers us with its advertisements may be in every 3-5 videos. Company can use geographically adjusted advertisements which will be in Turkish to the consumers. Place is the vital part because company cannot open businesses in every city in Turkey. There are major cities that the company can adapt such as Istanbul, Ankara and Izmir. However, first businesses should be in Istanbul. Istanbul is a modern and metropolitan city in Turkey. Culture is totally different in Istanbul. It is a mixture of Turkish, American and European culture. Therefore the adaptation period will be fast and accurate. Chipotle’s brand image is fresh food with the speed of a fast food restaurant. Turkey has really good and organic agriculture system. The company can also create a labor for the farmers and other wholesalers. Recommendation The Company should be aware of the culture and traditions of the country. Agreements with the local companies will help them to develop an accurate marketing plan. Turkish people love international companies which give importance to their specific holidays and days such as Independence Day and Ramadan. Creating a Ramadan meal combo will definitely attract customers who are not familiar to the Mexican grill.
  • 8.