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1. Executive Summary

Greggs has been operating successfully now for more than seventy years.

Far from its sales being floundered it has managed to do exceedingly well in

recession period opening more than 600 stores. It sells wholesome baked

goods such as sausage rolls, bacon butties and sandwiches that make up a

third of its sale. Greggs perceived competitions are fast food chains like

McDonalds and Starbucks, which have been extremely successful in

countries abroad. Owing to its unique product offering Greg aims to open

multiple stores in Germany berlin as the first stage of expanding in

international market abroad so it can diversify its risk, make more profit and

broaden its reach. This reports aims to assess the international marketing

strategies that will be used by the company and the factors that impact its

internationalization decision of foraying into the German European market/,

2. Introduction

The inception of Greggs occurred in 1930s delivering eggs and yeast on a

bike to families in Newcastle upon Tyne. John Gregg opened a small bakery

on Gosforth High Street in 1951. With a single shop and bakery at the rear,

Greggs began to bake superb quality bread, using flour milled from specially

selected wheat for that distinctive Greggs taste and texture. The expansion of

the company was well underway by 1984, when it had more than 260 shops

in four main areas of the country. From there onwards, Greggs was on the

Stock Exchange and continued to expand, opening shops in the Midlands,

Wales and North London. Today, Greggs has nearly 1,600 shops and aim to

open 600 new shops over the next few years. The company achieved

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revenues of £734.5 million in 2012. Its operating profit also witnessed an

increase to £51.8 million in 2012. Starting in 2003, in an attempt to test the

foreign market, Greggs opened a total of ten stores in Belgium; principally in

Antwerp and Leuven. These have all since closed as Greggs concentrates on

the UK market. This strategy was pursued in order to accomplish their

objective of becoming a leader in the European market place(Wikipedia).

2.1 Report Objective.

This report aims to understand the external, internal, explicit and implicit

factors that go into launching a business and marketing it abroad. It explores

the decisions that need to be explored for the firm‟s internationalization

initiation decision. From the market segmentation to deciding on the

marketing mix the crux of a firms international marketing strategy will be

investigated.

3. Internationalization

Greggs first expanded into the international market by opening store in

Belgium, which have since closed as Greggs aims to look at the failure as a

learning experience and venture out in German market.

Since then, the firm has defied tough trading conditions at home to open more

shops and record strong profits; giving it the confidence to consider foraying

into foreign territories again. Ken McMeikan, chief executive of Greggs

confirmed that they are trying to pin down locations to find new lucrative

markets for the firm‟s pies, bacon butties and hot drinks. “I really am of the

conviction that Greggs can go international," (17) (as per the financial times

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video). He explains that the product offerings of chains such as Starbucks that

have been immensely successful are similar to Greggs.

Mr. McMeikan added: "Over the past two years particularly, I‟ve been

travelling to different parts of the world and trying to look at the countries

where I believe there is demand from a customer base in terms of their tastes,

and also maybe where there is a competitive opportunity for us to go into

those countries.”) 17). There are various reasons to going internationally, but

the goal of every company growth or expend its business whether a company

hires international employees or searches for new market, and expend its

customer base. Some reasons are as follows:

1. Growth: Greggs is currently in its cash cow and decline life cycle part

of the product life cycle. By launching in another country as a new

company Greggs can enjoy a growth stage after introduction if it

successes with its marketing strategy and objectives.

2. Employees: Cheaper labor is often an advantage of

internationalization though for Greggs launching in Germany, its

managing of its current employees and proven and tried human

resource strategies will prove sufficient in Germany which share a

similar work ethic.

3. Competitive advantage Selling traditional English pastries and buttes

and baked good will be a competitive advantage to a company that is

purely British in origin. Its large time frame and experience in managing

its bakeries nationally and being successful enough to shut down its

smaller competitors will also be valid.

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4. Resources: Some companies go for resources, which are not

available in domestic country at better or competitive price. Greggs can

exploit the advantage of its current marketing heads and management

to help it formulate an effective strategy for the German market.

5. Ideas: Expanding in the German market can open new doors for

Greggs to help its expansion in the European countries.

Formerly Greggs launch in Belgian proved to be a learning experience. Gregg

admits its strategy failure was key into its loss in the Belgian market and is

keen to expand into the German market.

4. Foreign Market Segmentation and Targeting

According to the International Market Entry Evaluation Process Firstly,

France, Germany, was decided, as it was near to the United Kingdom, and

their taste habit is more or less same as UK, After Researching a lot,

Germany was chosen. Germany is one of the largest consumers (per

capita)of bread in the world(80 kg per person per year). There are more than

15 bakery/café chains in only berlin itself. So a Concentration strategy

approach will be used to only focus on berlin, Germany. This strategy will

provide operational focus on a single familiar market. It will help growing with

the market, which will hence give competitive advantage. Greggs will do an

incremental entry in the German market as it will provide Greggs to gain

experience at a measured pace, requires the commitment of fewer resources

and involves less risk in terms of exposure

Target segment

Both male and female professionals who like traditional European and British

baked goods. On the go people who want to have something different from

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the run of mill fast food,

Demographics

Men and women between the ages of 25-45 years belonging to SEC‟s B &

C

Psychographics

1.From or focus groups we found that the important attributes of our

customers would be that they like food on the go. 2. Enjoy baked products like

bacon buttes and pie.3. Enjoy treats like cupcakes.4. They want convenience

and fast food offerings. 5. They want good quality food, good serving size at

competitive or low prices

Product Attributes

German taste palettes would be merged into existing product offerings. Fresh

bakery products that can be warmed, availability of coffee and soup would

also be recommended at stores.

Germany is one of the largest consumer of bread in the world, there are more

than 15 bakery/café chains in only berlin itself. So a Concentration strategy

approach will be used to only focus on berlin, Germany. This strategy will

provide operational focus on a single familiar market. It will help growing with

the market, which will hence give competitive advantage. Greggs will do an

incremental entry in the german market as it will provide greggs to gain

experience at a measured pace, requires the commitment of fewer resources

and involves less risk in terms of exposure

USP

Traditional English bakery products, which are appealing and tasty

Objectives

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1.Development of a new category of English baked goods and exploiting this

window of opportunity. 2. Positioning in the minds of the consumers as a

convenient lunchtime or breakfast offering.3. Must create a perception that the

taste is unmatchable.4 Price and quality should be customer oriented.

4. Environmental Analysis

To gain a stable market place, a retailer can achieve competitive

advantage through low price and differencing their service and products from

their competitors (Lynch, 2003). Throughout our study, we find that 16-45

Germans are our most appropriate target market in our market expansion

plan in Germany.

SWOT analysis

Based on secondary data (Greggs, 2012) and questionnaire feedback (see

appendix), SWOT analysis method is applied to find the competitive

advantages of Greggs company. Furthermore, we shall seek for chance to

entry of Germany markets.

4.1 Strength

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Greggs(2012), as a successful corporation managed their cost, it always

value the contributions of their suppliers. It saves operating time and money

by producing bakery food in Greggs‟s factory and send their products to their

outlets by trucks. The quality of food and working conditions is guaranteed in

greggs‟s Ethical Sourcing Statement. Also, in order to reduce expense, the

employees are free chosen and no forced and bonded labour is used. For

instance, greggs‟s jobs can reduce cost by hire some part time employee like

students. As specialized in bakery industry, Greggs‟s hygiene and product

quality is managed and manufactured within their business.

The loyalty scheme in 2012 is very successful in UK, which turned out to

post sales growth more than 5% in 2011(Marketing week, 2012). This loyalty

scheme could be applied in German market. Also, Greggs could have

partnerships with its buyers as providing school lunch meals for schools

nationwide. Thus, Greggs would obtain a stable market place domestically in

Germany. As Greggs is a successful retailer in UK, we have experienced staff

and strong management team.

4.2 Weakness

Strength

1. Cost advantages

2. Loyal Customers

3. Strong management team

Weakness

1.New brand in Berlin Germany

Opportunity

1. Emerging markets and

expansion abroad

2. Innovation

3. Takeovers

Threats

1.Competition/ Product substitution

2.Economic slowdown

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As a new brand in Germany, it is essential to obtain a stable market place

at first place. Greggs need to occupy new market and build new supply chain.

With a failure experience in Belgium, Greggs does not have available case for

international market. (Greggs history, 2013)

4.3 Opportunity

With a new market in Berlin, Greggs have plenty of chances to emerge

market and market expansion. Bread is Germans daily food, which means

Greggs have a lot of potential customers and takeover opportunities. To

obtain its market goal, Greggs need to do innovation in its products and

services to make it fit for Germany market.

4.4 Threats

Berlin is the capital of Germany with a plenty of local brand cafes and

bakery industry. In this way, the market in Berlin would be very competitive,

especially with local bakery. Greggs would need its unique products to be

attractive and outstanding to its customers. As economy is in a recession in

Europe, Germans are also affected by this trend. With less money in people‟s

pocket, the market becomes more competitive.

5. Macro environmental factors

5.1 Political Environment

Political life in Germany is orderly and democratic. A report from the World

Bank “Doing Business 2013, Smarter Regulations for Small and Medium-Size

Enterprises” reveals that Germany is in a class of its own regarding costs

associated with establishing new businesses (Doing Business, 2013). As a

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member of EU, the formal permission for Greggs operates a business in

Germany is free of charge.

5.2 Legal security

As a modern state with reasonable laws, Germany is highly regarded by

investors. Germany ranks fourth among all countries in terms of legal security.

(Kyle, 2010) Greggs should choose Germany as a first choice in Europe if

consider legal systems.

5.3 Economic Environment

The GNP of Germany is about 3,594,303 million dollars, which show a

downward trend in economy recently. (Worldfactbook, 2013) As Cyprus‟s bank

system collapsed due to the effect of financial crisis, it has the impact on the

potential customers that they generally have less money to spend.(FT, 2013)

Due to that fact, Germans have less money in pocket and may reduce or cut

down expense on restaurant visits. An opportunity would arise that Germans

reduce visits to more expensive restaurants and instead they would choose

restaurants as Greggs.

5.4 Social-culture environment

In the past few years, German attitudes on diet are changing. They have

been very conscious about their health. More people would pick fitness class

and prefer healthier food. Besides this trend towards healthy food, there is

also a trend towards fast food as people work a lot and do not have much

time for cooking.

Greggs must be able to offer unique products and services that aim to

complement and benefit people‟s lifestyle and habits. If Greggs cannot benefit

target market correspondingly, they would lose their market share in Berlin.

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German holds a number one position in the world when it comes to their

happiness index. Thus, one can interpret that many Germans spend a lot of

time on hanging out with friends in cafes or restaurants and having a relaxed

lifestyle. (Angloinfo, 2012) As there are plenty of cafes in Berlin, local people

prefers bakery restaurants and cafes when hanging out with friends.

5.5 Demographical Environment

Germany has a total population of 81,147,265 with a rate of decrease of

0.2%. (The World Factbook Germany 2013)

and with a age structure: 0-14 years: 13.1%, 15-64 years: 67.1%, 65 years

and over: 20.9% (2013 est.)

And in Berlin, the total population: 3,460,725

Median household income: 40,199USD population percentage:17%

Mean household income: 45,309USD population percentage: 11%

Compared with other European nationalities, Germans household income

level is higher. In this way, they have more purchasing power. (Demographics,

2010)

5.6 Trading Infrastructure

Food is a major part in Germany culture. Greggs could offer their original

food with their bakery machine. Also, we can provide Germany traditional

homemade beer and sausages to obtain customer‟s attraction.

5.7 Germany fast food market

By analyzing the previous subchapters, an idea about the attractiveness can

be formulated from Germany fast food industry. An optimistic conclusion can

be attained from the current market situation and the potential growth in

correlation with the trend. As is mentioned in previous subchapter, our

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potential customers are 16-45 middle class income individuals. Germans have

an interesting shopping habit: „Beyond loving a bargain, quality is valued‟.

(The Atlantic times, 2013) Therefore, Greggs should focus on product quality

and discount for continuous shopping with Greggs.

The market need for bakery products will lead Greggs to enter into the

market, as well as to attain some market share from competitors like Quick

and local cafes. Local cafes like Alea lacta provide German traditional food

such as potato pancakes whereas Greggs could provide traditional British

food. As long as Greggs‟s competitors have not possessed the whole market

by exploiting the whole market potential, there is great opportunity for Greggs

to open business in Germany.

6. International Marketing Objectives

As a consumer-focused business, Greggs aims to provide excellence in

products and services through continuous improvement that deliver customer

satisfaction and value for money. Greggs intend to be Europe finest bakery

company. Based upon our SWOT analysis, we make specified marketing

objectives and corresponding strategies for Germany market which would be

feasible for investment and attaining our corporate targets. Firstly, as a new

bakery retailer in Germany, Greggs should create brand awareness. We

should launch a social awareness that calls attention of Germany students

who are our target market to the tasty bakery food and competitive price. An

advertising campaign would be launched in German through TV, hoardings

and via other media. For example, Greggs would create studivz and Xing

pages which are Germany websites like Facebook and twitter to increase

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customer engagement. There is 12.9 million members of Xing according to

Xing Statistica(2013) which implies great feasibility of our promotion strategy.

Secondly, Greggs would provide more value for quality products and covering

for all segments of our target market by produce new bakery products in

German flavor. Through franchising in Germany and hiring German

employees, Greggs would develop products in Germans tastes and absorb

employees, customers and shareholder‟s comments. Thirdly, to show

customers that we care, Greggs would help customers get something back

from us and offer our loyalty scheme. With every time you buy, customers

could gain loyalty points from which they could obtain benefits in next

shopping with Greggs. With these objectives implemented successfully, we

are confident that Greggs‟s would gain its target in Europe in the future.

7. Foreign market entry strategy

Selecting the appropriate mode for enterprises to enter foreign markets has a

decisive effect. According to Hollensen (2007), there are three main market

entry modes, export modes, intermediate modes and hierarchical modes. It is

pivotal that Greggs has a focused entry strategy, and adapt entry mode

according to the target market.

For the purpose of Gregg‟s international entry below are the critical factors

that need to account for are explained below. As a company it needs to study

the main groups of entry mode influencers prior to a decision

7.1 Internal factors

According to the preliminary published reports: Greggs (2012), Greggs is the

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leading bakery retailer in the UK, with over 1670 retail outlets and over 70

years of history. Moreover, it had total sale of £735 million and 20,000

employees in 2012. The scale of Greggs provides them the capability to open

up wholly owned Sales and production subsidiary in Berlin, Germany. Greggs

is on its way to being on the decline stage in the UK after being a cash cow

for a long period now. In order to experience introduction and growth

international expansion might be just the thing that can give the company a

new direction .In a new market the company can target exponential growth

and exploit its capability, experience and setup. Greggs had attempted to

enter the foreign market earlier; by opening ten stores in Antwerp and Leuven

in Belgium. It acknowledges the weakness of this launch and the failure to

penetrate the market due to its flawed international strategy. The target

market segments will be 24-45 age people, belonging to SEC B and SEC C.

However, some fast food companies such as McDonalds, KFC and local

bakery like Müller and hofpfisterei have already opened up in Berlin.

Comparing with these brands, Greggs will build a distinctive brand image and

well-define brand identities in Berlin by producing great taste savouries, which

are value for money. It is recommended that Greggs position itself as a

company selling traditional British bakery products.in the German market.

Having achieved great success in Britain for its current product line it aims to

replicate its success. Hopefully the internal factors of experience, product

knowledge and operating in a European market with similar competitors will

benefit Greggs with differential and competitive advantage.

7.2 External factors

Germany and UK are both located in the Europe, and are the members of

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European Union. In Germany and UK, most of the people have similar eating

palettes. Germany has a total population of 81,147,265 (The World Factbook

Germany 2013) Foreign Direct investment in Germany is also not risky in the

context of stable government and trading conditions. Regulations for fast food

outlets and bakery chains also emulate strict UK laws therefore will be easy to

comply with a company that has operated in the UK earlier. Germany is a

large and growing market, and Berlin is the capital of Germany. Moreover

there are more than 15 big/small bakery store chains in berlin. Therefore, the

hierarchical mode will be suitable to entering Germany bakery/fast food

market.

7.3 Desire Mode Characteristics

In Germany, Greggs will practice hierarchical mode of entry. This is where the

firm completely owns and controls the foreign entry mode. It is hoped that this

will help Gregg‟s top management exercise greater control and use their

expertise in managing their outlet in a German market. If everything held

constant, the greater the resource investment, the lower the flexibility of the

business. Consequently, if Greggs pursue a hierarchical mode of entry, they

will have to consider their potential limited flexibility as well but the benefits of

controlling their position in German market, which far outweigh the latter. The

company can also learn from the failed Belgian launch and have stringent

supervision, which will allow them to overcome their previous mistakes.

However, regardless of the apparent control over operations specified by this

mode, the degree of control that head office can exert over the subsidiary

depends on how many and the particular value chain functions that can be

transferred to the market. Subsequently this results in larger resources

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investment, lower flexibility and higher risk resulting in a stronger international

operation. Based on the above analysis of internal and external factors it is

recommended that Greggs use sales and production subsidiary method of

entry. Greggs will own and control the foreign subsidiaries. This means there

is a high level control over all the operations. Since the management makes

decisions, profit motive is integral. A sales and production subsidiary will

facilitate rapid entry to the German market allowing quick access to its

distribution channels. Plus, no transportation costs will be incurred, as raw

materials will be purchased in the host country.

7.4 Sales and production subsidiary and its advantages

Sales and production subsidiary is one of the hierarchical modes which has a

long-term market potential. It requires great investment in term of

management time, commitment and money. The firm will choose to have a full

ownership of sales and production. For Greggs, sales and product subsidiary

mode allows fully control of sales and production, leaving the research,

development and marketing activities to be made at home country in the UK.

It is hard to ensure the food is both fresh and produced in the UK, which is

why the local production will be the better choose. Local production will also

help Greggs defend existing fast food business and save transportation costs.

The retailers will use the existing experiences, which has been successfully

applied in the UK, associated with German culture and market environment.

That ensures that Greggs sells the fresh food with the common price, which is

loved in the UK. Moreover, a sales and production subsidiary will enable

Greggs exploit new market opportunities as soon as they arrive. Setting up

the first bakery store will cost around 1 million euro that includes hiring staffs,

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renting fees, goods and Decoration fees. Although, this method will require a

great deal of investment in terms of time, money and commitment, the profit

returns are greater than exporting. However, the limitation of flexibility, risk of

politics and economic will be consider.

8. The Product and Service Mix

As the growth of rapid pace of life, convenience but high-quality fast food

restaurants play an increasingly important role in the market place nowadays.

Therefore, being a new player in the fast food market in the Germany, Greggs

is expected to identify and satisfy more consumers‟ need in order to compete

with McDonalds, KFC, and local bakeries such as Müller and hofpfisterei etc.

To start with, according to the principle of marketing mix, when Greggs is at

the introduction stage in German market, it is vital to strengthen the unique

selling points of its elaborate products which should be adapted to the local

consumers‟ preference while keeping the good quality as well as adaptable

price. Secondly, it is strongly recommended to deepen the original German

culture and take advantage of local materials. Finally, the service ought to be

the primary focus of Greggs in today‟s highly competitive market.

Consequently, Greggs could successfully and effectively differentiate from

other competitors.

8.1.1 Product Attributes

Greggs in UK owns a great quantity of products and most of the products are

quite popular with customers. Greggs will extend and adapt the UK products

which specifically cater for the needs of German market, and 70% of the

product range will include existing foods such as pasties and sandwiches

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whilst the remaining 30% will be traditional German bakes. In terms of 'core'

offerings, the product range will keep extensive and sell food items such as

cakes-and-buns, pasties-and-bakes as well as bread and baguettes. Also,

Greggs would provide pasta, salads, and soup as they are proven to be

popular lunch time favourites in the German market, Finally, Greggs will

prepare hot drinks and purchase cold drinks from German wholesalers to

satisfy customers‟ need. Abundant range of products would meet most

demands of customer, yummy and healthy food would be more adaptable by

customers compared by other competitors.

8.1.2 Standardisation

Standardisation of product is defined as “the process of setting

generally uniform characteristics for a particular good or service”

(businessdictionary.com).it is significantly important for Greggs to guarantee

the consistency of products in German market so as to

permit competition among the various bakeries. Greggs will consist of an

extensive range of products which are classified into four segments, including

savoury, sweet, breakfast, drinks and snacks. This identical kind of product

segments like Greggs in UK would benefit for customer convenience in food

choosing. For details, the portion sizes, weight, colour and packaging of the

products will also be standard, and normative products will imply the food

hygiene. In addition, according to German laws, the process of the supply

chain would also be regulated in order to maintain the quality and health of

the product. It could be predicted that product standardization for Greggs in

German market is an efficient method to reduce costs and increase quality,

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and standardisation of product would easily get good graces from customers.

8.1.3 Adaptation

An adaptation strategy involves “changing the price, promotion and packaging

of a product, or even the product itself, in order to fit the needs and

preferences of a particular country.” (Alan Valdez, 2006). Aiming at fast food

restaurant and bakery market in the Germany, Greggs should cater for the

demand of local consumers by adding new product for the sake of providing a

variety of choice to local customers. Research has shown that Germans‟ taste

habits are familiar with tastes of the British but with distinct local taste whcih

Germans demonstrate a strong preference towards meat related foods and

therefore Greggs will cater for this demand.

In order to achieve a competitive advantage when entering Germany market,

Greggs will modify its marketing strategy for the different market environment

between UK and Germany. Firstly, Greggs will design a new series of

products contains “German sausage” and “German rye” in order to attract

target consumers‟ attention especially the basic masses who intend to buy

traditional German baked goods. Furthermore, it is highly advised that Greggs

can cooperate with local supplier to develop particular products in line with the

preference of local customers. Last but not least, as a British bakery, Greggs

would provide some products with characteristics of traditional British taste.

These traditional British savouries will give Greggs a definite competitive edge.

8.2 Branding

A good brand is an indispensable part of business when enter into

international market which exerts potential influence on the opinions of the

target customer. For the purpose of achieving success, it is essential for

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Greggs to build a consistent brand image and well-defined brand identities in

Berlin, Germany. As the largest bakery chain in the UK, Greggs has seventy

years of history and occupies majority market place. Greggs in Germany will

take the origin brand name without any transformation since some of

Germans prefer old-line companies as they consider it represent the quality

and reputation for the brand. Also, the logo will keep accordant with British as

it will inspire loyalty to the brand and a committed consumer base.

Subsequently, the brand will be recognised for high quality, tasty produce and

thereby attain brand equity. Traditional brand image is only the foundation;

Greggs would also get accustomed to the local culture for the purpose of

capturing German market. Hence, it is clear that Greggs should take huge

efforts on increasing the brand awareness by inviting some famous Germans

to represent the brand. Hollensen (2011) indicates “celebrities use their status

in society to promote a product and help people in the target group

immediately identify the licensed product.” Sports star or public figure would

be considered as spokesperson in order to attract attention from customers.

8.3 Service Attributes

As the trend of furious competition in food market, the sales service has

become increasingly crucial for companies to win competitors. Greggs would

maintain the service quality and guarantee the standardised customer service

in its branch. Greggs will ensure that an efficient, effective and reliable service

is provided throughout the entire process, from the first to the last point.

Initially, the store has to be easily accessible, should be clean and tidy and

comfortable furniture should be placed in-store. From then onwards, elements

such as the speed and quality of the service delivery is necessary. Staff in

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Greggs will treat every customer patiently and politely as for the service

objective is “service with a smile”. Moreover, support service should be

adjusted to the local consumers‟ communicational habits. Greggs will benefit

by accepting any reasonable suggestions and treat every complaint seriously.

Any minor defects may affect consumer perceptions on the overall service

and the brand. Consequently, Greggs will try to improve the service quality

and try its best to satisfy customers.

8.4 Implementation

So as to implement the core strategy for achieves marketing advantages, it is

highly recommended for Greggs to formulate detailed plan and tailored by

segments.

1 Initially-planning: a technical professional UK Greggs‟s team with relevant

managers and staff will be sent to Germany for 6 months to make the

foundation. This team would have already received professional training in the

UK and the main objective for the team would be to set up one physical store,

recruit a German manager and employees. The UK management team will

continue to guide and assist staff for 4 months after the launch until the

German store manager can competently take over this role.

2 Fundamental training for German Managers: in order to successfully

implement the strategy and implement the same success, it is essential that

the German Store manager must understand the overall values and vision of

Greggs. Besides, the clear understanding in the Greggs core strategy and its

operations, German managers would cooperate with UK team to accomplish

shot-term plan.

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3 Suppliers: Suppliers will be reviewed and selected relevant to the local

market, and finally UK team will make the decision. In addition, the German

store manager will learn how to manage the delivery process of raw materials

and maintain sufficient relationships with supplies.

4 Training and Recruitment: as positive impression can ensure certain

contribution to customer satisfaction, it is vital that standard and regular

trainings contributed to different employees such as baking skills for chefs and

communication skills for staff would be specially concerned. Employees will

benefit from 3 months training executed by the UK management team, and

German managers will also participate in training process for the sake of

future training and recruitment.

5 Expectations: if everything goes well, UK team will come back to UK after 4

months and Greggs will establish a favorable brand in the German market

place. Every staff will finish their work respectively and make some profit in

business. After the awareness of Greggs brand in products and service by

German consumers, sales will be expected to rise through the promotional

activities.

9.0 Conclusion

According to the analysis of the environment of the German market and the

strategies of sales and production subsidiary mode, Greggs will develop new

business to meet the demand of German consumer‟s preference and habits.

As a fresh entrant in the German market, Greggs is probably going to face

fierce competition and it will take time for the company to draw a detailed plan

to obtain recognition in the German market. Taking the advantages of the

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successful experience in the UK it is relatively positive for Greggs to launch

their business in Berlin, Germany.

Appendix Loughborough University Thank you for agreeing to fill out this brief survey. 1. Sex A. Male B. Female

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2. Age A. Under 18 B. 18-24 C. 25-34 D. 35-44 E. 45 older 3. Are you currently a ? A. Student B. Working class C. Businessman D. Others 4. At what price would you consider looking for one meal in fast food restaurant? A. Under € 3.00 B.€ 3.00 to € 5.00 C. € 5.00 to € 10.00 E. above€ 10.00 5. For bakery products are you willing to try a foreign brand or stick with local? A. Foreign B. Local 6. When you buy food do you prefer meal or any other individual product? A. Meal B. Individual product 7. Which do you prefer, eat-in or takeout? A. Take out B. Eat in 8. How far are you willing to walk to a fast food restaurant? A. Within 5-minute walking distance B. 5-10 minutes walking distance C.10-15 minutes walking distance D.15-20 minutes walking distance E. >20 minutes walking distance 9. How long are you willing to wait in a queue in fast food restaurant? A. within 5 minutes B. 6-10 minutes C. 11-15 minutes D. 15 or above minutes 10. If you had a vote, which ONE restaurant would you choose? A. Subway B. McDonalds C. KFC D. Quick E. Burger King

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11. What is your first choice from the following restaurant? A. Subway B. McDonalds C. KFC D. Quick E. Burger King 12. How often did you visit the fast food restaurant? A. Every day B. Once a week C. Twice a week D. Weekly E. Others 13. Are you willing to try a new restaurant or stay with a fixed restaurant? A. Yes B. No 14. What is the main reason you frequent a particular restaurant? A. Price B. Variety C. Quality D. Service E. Other 15. Do you feel you are aware of the health impact of fatty and sugary foods? A. Strongly agree B. Agree C. Undecided D. Disagree E. Strongly disagree 16. Would advertisements influence your choice on bakery? A. Strongly agree B. Agree C. Undecided D. Disagree E. Strongly disagree 17. To what extent do you agree/disagree that hoardings would affect your willingness to go to fast food restaurant? A. Strongly agree B. Agree

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C. Undecided D. Disagree E. Strongly disagree

Questions & Answers

A B C D E

1 13 17

2 1 20 5 4 0

3 21 7 1 1

4 2 19 9 0

5 18 12

6 20 10

7 15 15

8 17 9 4 0 0

9 21 9 0 0

10 8 5 5 4 8

11 5 6 6 9 4

12 5 7 14 3 1

13 23 7

14 10 3 15 2 0

15 7 9 10 3 1

16 2 8 12 7 1

17 2 7 13 7 1

REFERENCE

1. Secondary data on SWOT from Greggs financial reports @

http://corporate.greggs.co.uk/financial-reports/

2. About Greggs, @2012, Greggs plc. http://corporate.greggs.co.uk/about-

greggs

3. Lynch, R. (2003), Corporate Strategy, 3rd ed., Prentice Hall Financial Times.

4. The World Bank, 2013, „Doing Business 2013, Smarter Regulations for

Small and Medium-Size Enterprises‟ 10th edition

5. Trading economics, 2013,

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http://www.tradingeconomics.com/germany/unemployment-rate

6. Insee, 2013, http://www.insee.fr/en/

7. Group of twenty, 2011, „Germany Sustainability Report‟ prepared by staff of

the International Monetary Fund.

8. Angloinfo, 2012, http://germany.angloinfo.com/

9 Greggs Menu, 2013, http://www.greggs.co.uk/menu/

10 Food in Germany - German Food, German Cuisine, 2013

http://www.foodbycountry.com/Germany-to-Japan/Germany.html

11 product standardization, 2013

http://www.businessdictionary.com/definition/product-standardization.html

12 Product Standardization Strategy, by Laura Acevedo, 2013

http://www.ehow.com/way_5379387_product-standardization-strategy.html

13 Adaptation Marketing Strategy, by Alan Valdez, 2013

http://www.ehow.com/info_8335809_adaptation-marketing-strategy.html

14 Global Marketing: A decision-oriented approach, 5/E Svend

Hollensen, University of South Denmark

15.http://www.bakeryinfo.co.uk/news/archivestory.php/aid/8847/Greggs_revea

ls_ambition_to_expand_overseas.html#sthash.8vJbohUo.dpuf

16.http://www.bakeryinfo.co.uk/news/archivestory.php/aid/8847/Greggs_revea

ls_ambition_to_expand_overseas.html#sthash.8vJbohUo.dpuf

17.http://video.ft.com/v/1117462569001/Greggs-hungry-for-international-

market

18.http://en.wikipedia.org/wiki/Greggs

19.http://news.bbc.co.uk/1/hi/8330573.stm

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