¶ … Country: France Introduction & Background of the Company: Olive Garden

Global Marekting Environment Analysis

French Politics, Rules & Regulations

French Economy

French Society & Culture

French Technology

Opportunities & Threats

Global Competition Analysis

Primary Competitor

Secondary Competition

Entry Strategies Discussion & Evaluation

Entry Strategy Selection & Discussion

Target Market Analysis & Segmentation

Target Market Analysis

Recommended Target Market Analysis

Target Market Segmentation Recommendation

-- Global Marketing Mix Strategies

-- Product Strategy in France

- Current Product Strategy with Examples

Recommended Product Strategy

-- Price Strategy in France

-- Current Price Strategy with Examples

-- Recommended Price Strategy

-- Promotion Strategy in France

6.3.1 -- Current Promotion Strategy with Examples

-- Recommended Promotion Strategy 9

6.4 -- Place Strategy in France & #8230;.9

6.4.1 -- Current Place Strategy with Examples 9

6.4.2 -- Recommended Place Strategy 9

References 10

1.2 - Executive Summary

France is one of the more prominent and modernized countries in the western part of Europe. It is a leader among the world as well as the more localized European Union (EU). The country is a permanent member of the United Nations Security Council and also belongs to NATO, the G-8 and the G-20 (CIA, 2015).

The French economy is fairly diverse and wide-ranging in nature. Many of France's major businesses were publicly held and operated in nature but many of them have since been privatized. Major examples would include Air France, France Telecom, Renault and Thales. However, the government is still highly present in other bastions and parts of the French economy. However, this is limited to public utilities, public transport and the defense sectors (CIA, 2015).

Like most Western countries, France is very developed and up-to-date in terms of modern technology. Their telephone system is rated as "highly developed." They have nearly forty million landlines and sixty-three million mobile phones in use. They have nearly six hundred television broadcast stations and about 17.2 million internet hosts. There are over 45 million internet users in the country of France (CIA, 2015).

1.3 Introduction of the country: France

France is one of the more prominent and modernized countries in the western part of Europe. It is a leader among the world as well as the more localized European Union (EU). The country is a permanent member of the United Nations Security Council and also belongs to NATO, the G-8 and the G-20 (CIA, 2015).

1.4 Introduction & Background of the Company: OGIR

As noted elsewhere in this report, Olive Garden is part of the wider Darden Restaurant empire. This empire also includes Longhorn Steakhouse, Bahama Breeze, Season 52, Capital Grille, Eddie V's and Yard House. All told, the company manages about 1500 restaurants at any given time and has about 150,000 employees worldwide. They currently operate only in the United States and Canada. There is not currently a European presence in France or anywhere else (Yahoo Finance, 2015).

Income and profits for Darden as a whole are doing quite well. The company had total revenue of $5.3 billion in 2012. That rose to $5.9 billion in 2013 and then $6.2 billion in 2014. Even with that strong revenue growth, gross profit has remained flat over that same time period. Operating income is positive but has not been any more than half a million in the last three fiscal years. The same is true when it comes to net income amounts. Darden's balance sheet reflects about seven million in current assets but that is mostly offset by about five million in debt. Net tangible assets are floating under a billion over the least three fiscal years. Cash flow is completely flat over the last few years as it has never changed by more than twenty million from year to year, a very nominal amount given their income per year. (Yahoo Finance, 2015).

2.0 Global Marketing Environment Analysis

Darden Restaurants, the parent company of Olive Garden, has enjoyed resounding success in the American market. This report is focusing on Olive Garden in particular. Speaking of that Darden success with Olive Garden, translating that success to similar results in France may seem daunting to some given the cuisine that is prolific there, there is absolutely a market niche for Olive Garden with tourists and locals alike. Just like other American companies with brand name recognition...

Further, not many American restaurants make an effort to cross oceans like Olive Garden is about to do and Olive Garden is certainly at a higher echelon than the American fast food establishments that are present in France.
2.1 French Politics, Rules and Regulations

France, in terms of government structure, is a republic. Its capital is in Paris and it is six hours ahead of the Eastern Time Zone in the United States. The country, like the United States, engages in the practice of Daylight Savings Time, which runs from March to October. The country is divided into twenty-seven regions with twenty-two of those being domestic and the other five being overseas. The current President of France is Francois Hollande. The head of the government is Prime Minister Manuel Valls. Valls has been in office since April 2014 and Hollande since May 2012. There are a number of political parties in France including The Greens, the French Communist Party and the Left Front Coalition, just to name a few (CIA, 2015).

Opportunity: No government ownership of restaurant industry - The French government retains control over many industries within the country but the hospitality and restaurant industry are not one of them. Darden and Olive Garden would very much be on equal footing (or better off) when it comes to potential market positioning and the overall competitive environment.

Threat: Sometimes Tense U.S./French Relationship - The French are well-renowned for sometimes being a little stand-offish when it comes to outside influences and cultures that impede on their own. This would include name brands from the United States and other Western countries. The relationship is not as hostile as it would be in the Middle East and other such areas. However, it is not always rosy.

2.2 French Economy

The French economy is fairly diverse and wide-ranging in nature. Many of France's major businesses were publicly held and operated in nature but many of them have since been privatized. Major examples would include Air France, France Telecom, Renault and Thales. However, the government is still highly present in other bastions and parts of the French economy. However, this is limited to public utilities, public transport and the defense sectors (CIA, 2015).

France's GDP growth was basically flat in 2014, growing only by four tenths of a percent. Unemployment in the country is moderately high as it was 7.8% in 2008 to about 10.4% in the fourth quarter of 2014. Taxes in French are easily above average as the tax rates for high earners in particular is rather high. The top end tax rate in France is about 41%. There is a 75% payroll tax on salaries over $1.24 million USD but that will be lapsing soon (CIA, 2015).

Threat: Economic growth flat -- As noted just now, GDP growth in the country of France is not doing all that well and the unemployment rate is indeed a little high. This could have implications on how much people are willing to spend on a discretionary purchase like eating out.

Opportunity: Labor pool that can be tapped -- While unemployment rates being high may be a drag in some ways, it will mean that there are going to be at least some employable people that are looking for work. This works in Olive Garden's favor, especially since the industry does not require a high amount of skill for most jobs and roles.

2.3 French Society & Culture

The primary and official language of France, of course, would be French. Common ethnic groups in the area include Celtic, Latin, Teutonic, Slavic, North African, Indochinese and Basque. The primary religion in the country is Christians as they make up roughly two thirds of the overall population. Muslims account for a little less than a tenth of the population. About a fourth of the country claims no religion. No single group beyond that accounts for more than one percent of the population (CIA, 2015).

In terms of demographic, not quite a fifth of the country are under fourteen years old, about 11.9% are 15-24 years old, nearly four tenths of the country is 25 to 54 years old and the remaining 30% of the country is either 55-64 or 65+ with the latter being a bit more than the former. The current median age in France is about 40.9 years old with men being a bit under that and women being a bit over. The population is growing but at a very slow rate of less than one percent. About four fifths of the population lives in the country's urban centers. Live expectancy is high overall with an average of 81.66 years. The birth rate is a smidge over two per family (CIA, 2015).

Threat: Culture Clash - As was noted in the government section, the French and Americans have a love/hate relationship. There will be those that actively resist an American brand name entering the country. Also as…