Country: Spain
Products: Food, beverages, games and entertainment
There are different market entry strategies that Dave and Busters can employ to enter Spain effectively. They include acquisition, franchising, licensing, wholly-owned subsidiaries, and joint ventures. Licensing permits local restaurants in Spain to trade in the market. Businesses should first obtain a license from the authorities to prove that they are operating legally. This type of market entry strategy offers the benefits of reduced capital requirements and low cooperation between the parties involved. Dave and Busters can trade in Spain using the name and brand of established and prominent business instead of setting the business from scratch. This strategy will grant Dave and Busters the right to use the logo and trademarks of top companies in Spain.
On the other hand, wholly owned subsidiaries will enable Dave and Busters to have decision-making rights in Spain; it is the most expensive and has more risks compared to the other options ( Palmu, 2020) . Dave and Busters should conduct a comprehensive analysis of all the available strategies with low start-up capital and reduced operational costs but with the highest returns.
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Ultimate Customer Profile
Dave and Busters target customers in Spain will comprise all people in need of restaurant and hotel services such as take-away, eat-in, deliveries, reservations, and curbside pickup. The company will serve customers in need of offerings such as burgers, desserts, chicken, and seafood. Customers will get hotel services from Monday to Saturday since some branches of Dave and Busters in Spain do not operate on Sunday. Individuals in need of personalized services, including customized buffets for private events, will get such services options. People who crave games and entertainment services are also covered through the business' Million Dollar Midway' featuring interactive games and simulators. All the hotel services will cover different customer needs, targeting the customer’s hobbies, lifestyle, and purchasing habits to ensure inclusivity. The company will be operating for long hours to serve its customers fully. Having detailed customer profiles is fundamental to help in identifying leads and attracting target audiences.
Four Demographic Variables
Demographic factors that would directly affect the demand for Dave and Busters in Spain services include employment, age, gender, and income. These demographic factors have their own impact on market entry. Each variable has its perceived risk. Collecting information on all the significant variables helps in the personalization process. The business will be able to approach each individual variable according to their perceived risks. People aged 65 and above spend more in the hotel and entertainment sector, contributing a lot to the industry. Research conducted in the UK found out that people aged below 65 spend less because they are primarily working and engaged in different activities ( Hilmersson et al., 2021) . Older people amass wealth during their younger years and spend it upon retirement.
Reasons for Choosing these Variables
Age is a very critical variable because consumer preferences change with age. Gathering information about target customers’ age groups is vital for Dave and Busters. This information will help the company to develop marketing campaigns that target age specific customers. Men and women have different needs, likes, dislikes and thought processes. Some men may prefer meals with high calories depending on their specific jobs, women on the other hand may prefer soft foods. The company should be familiar with these differences and tailor its marketing campaign well. An increase in employment opportunities increases people’s incomes, hence increasing spending on products, which raises demand for such items. When the income rises following employment, individuals are bound to spend more hence increased demand for products. Having clear data on the customers employment and income levels will guide the company when developing its market entry plan.
Statistical Graphs Showing Trend between Two Time periods
B1 represents the period when the household income was low. At this point, the demand for the company’s products was low because of reduced circulation of money for purchasing those products. B3 represents an increase in income from B1 to B3, this may have been contributed by increased employment opportunities and favorable government policies. An increase of household income from B1 to B3 means that there is high circulation of money and thus increased spending on commodities. For our case an increase in income would result into higher sales and increased demand for Dave and Busters products.
In graph a, the quantity of labor required increases from Q0 to Q1 which leads to a corresponding increase of wage rate from D0 to D1. When the demand for labor increases, the wage rates increase in return, and the overall demand for the products increases. Suppose the demand for labor decreases like in diagram b, where it decreases from Q0 to Q2, the rate of wages will decrease, and as a result, there is a reduced demand for products and services in the market.
Joint Ventures Strategy
I would recommend the joint ventures market strategy for Dave and Busters in Spain in Spain ( Li, Qin & Gu, 2020) . The advantage of using joint ventures is that this company will share risks and expenses with the other business while gaining expertise and a better understanding of the local market. The method is more effective since it is less time-consuming, and thus it will be fast. Also, its operations are established more efficiently compared to the other alternatives. Before opting for this entry strategy, it is crucial to consider country restrictions, absent in Spain. Considerations I Would Make about the Product
The considerations that I would make about the product are the products’ references and shopping habits. The product reference; when a customer is satisfied by a commodity, they are likely to refer more customers to buy the product. At last, the demand increases from the referrals. By identifying the shopping habit of a product, the company can tailor the product to target those habits and increase its market demand.
Positioning Themes
Dave and Busters branch in Spain will offer a blend of entrees using the best natural ingredients. They also deal with green products that are less harmful, they employ green purchasing to effectively obtain products that do not pollute environment ( Kotsi & Pike, 2020) . The restaurant's main benefits include minimizing pollution and promoting healthy diets for all customers. Dave and Busters will offer entertainment services for all age groups. Therefore there is a promise to satisfy the desires of its target customers.
Advertising Media
I would use television and radio to advertise the business. This is common and offers both audio and video options, thus reaching a large audience ( Tefertiller, 2020) . Additionally, in any format of an ad, it is influential, and from the past surveys, it shows that the TV adverts have influenced high purchases in the past.
Channels of Distribution
The most effective channels of distribution for this company would be wholesalers and retailers. These channels allow the brand to get customer feedback. As a result, the company can use information obtained to improve the products or develop better products that satisfy customer needs.
References
Hilmersson, M., Johanson, M., Lundberg, H., & Papaioannou, S. (2021). Serendipitous opportunities, entry strategy, and knowledge in firms' foreign market entry. International Marketing Review .
Kotsi, F., & Pike, S. (2020). Destination brand positioning theme development based on consumers' values —Journal of Hospitality & Tourism Research , 1096348020980056.
Li, B., Qin, Y., & Gu, H. (2020). The development and transformation of China’s hotel industry. In Handbook on Tourism and China . Edward Elgar Publishing.
Palmu, J. M. (2020). Keys to new market entry strategy to Japan: case: Portuguese footwear (Doctoral dissertation).
Tefertiller, A. (2020). Cable cord-cutting and streaming adoption: Advertising avoidance and technology acceptance in television innovation. Telematics and Informatics , 51 , 101416.
