This marketing plan was assigned in BUSI 4205: International Marketing at Carleton University. This assignment made it possible for students to familiarize themselves with strategic planning and decision making in international marketing as well as the applied information sources that are available to managers for researching foreign markets.

1.
EXPANSION
INTO
THE
UNITED
KINGDOM
BUSI
4205
A
Comprehensive
Project
Dr.
Alia
El
Banna
March
28,
2016
Reagan
Bradley
100936062
Emily
Bolton
100897332
Olivia
Carapella
100939644
Reid
Gardner
100936766
Jie
Huang
100906996
Mikayla
Mlynarczyk
100900256
Kate
Taylor
100924611

2. Next
Destination
Mergers
2
Table
of
Contents
Executive
Summary
............................................................................................................
4
Introduction
.......................................................................................................................
5
Product
Description
....................................................................................................................
5
Company
Background
.................................................................................................................
6
Problem
Statement
.....................................................................................................................
8
Country
Analysis
................................................................................................................
8
Rationale
for
Expansion
..............................................................................................................
8
Socio-­‐Cultural
Environment
........................................................................................................
9
Technological
Environment
.......................................................................................................
11
Environment
.............................................................................................................................
12
Economic
Environment
.............................................................................................................
13
Political
Environment
................................................................................................................
15
Legal
Environment
....................................................................................................................
16
Business
Analysis
.............................................................................................................
18
Mode
of
Entry
...........................................................................................................................
18
Advantages
&
Disadvantages
of
Each
Mode
of
Entry
.................................................................
19
Exporting
......................................................................................................................................
19
Turnkey
Projects
...........................................................................................................................
20
Contractual
Agreements
..............................................................................................................
21
Licensing
.......................................................................................................................................
22
Franchising
...................................................................................................................................
22
International
Joint
Venture
..........................................................................................................
24
Wholly
Owned
Subsidiaries
..........................................................................................................
25
Greenfield
Investment
..................................................................................................................
25
Mergers
and
Acquisitions
.............................................................................................................
26
Selection
of
Mode
of
Entry
........................................................................................................
27
Strategic
Orientation
.................................................................................................................
31
Key
Objectives
&
Limitations
of
Expansion
into
England
............................................................
35
Market
Segmentation
...............................................................................................................
37
Demographic
................................................................................................................................
37
Geographic
...................................................................................................................................
38
Psychographic
..............................................................................................................................
39
Behavioral
....................................................................................................................................
40
The
Target
Audience
.................................................................................................................
41
Marketing
Mix
.................................................................................................................
43
Product
.....................................................................................................................................
43
Core
Product
Offerings
and
Brand
Name
.....................................................................................
45
Trademarks,
Labeling
and
Packaging
..........................................................................................
47
Service,
Warranties
and
Usage
Instructions
................................................................................
48

3. Next
Destination
Mergers
3
Price
.........................................................................................................................................
48
Objective
setting
..........................................................................................................................
48
Psychographic,
Technological,
Sociocultural,
Demographic
and
Economic
conditions
with
respect
to
International
Pricing
................................................................................................................
49
Demands
and
Cost
Considerations
...............................................................................................
51
Pricing
Strategies
.........................................................................................................................
52
Discounts
and
Allowances
............................................................................................................
54
Place
.........................................................................................................................................
54
Promotion
.................................................................................................................................
56
Advertising/Copy/Artwork
...........................................................................................................
57
Media
Channels
&
Technology
.....................................................................................................
58
Action
Plan
.......................................................................................................................
61
Overview
..................................................................................................................................
61
Timeline
for
Launch
of
Franchise
...............................................................................................
63
Timeline
and
Budget
for
Promotional
Programs
........................................................................
65
Long
Term
Action
Plan
..............................................................................................................
66
Additional
Budgetary
Considerations
........................................................................................
67
Total
Expected
Budget
..............................................................................................................
68
Conclusion
........................................................................................................................
68
References
.......................................................................................................................
69
Appendices
......................................................................................................................
73

4. Next
Destination
Mergers
4
Executive
Summary
Since
it’s
humble
beginnings
in
Alberta,
Canada,
Booster
Juice
has
grown
and
expanded
across
North
America.
Now
it
is
time
for
Booster
Juice
to
expand
even
further,
all
the
way
across
the
Atlantic
to
the
United
Kingdom.
The
UK
is
a
strategic
choice
based
on
its
strong
cultural
and
political
similarities
and
an
encouraging
country
analysis.
As
the
UK
is
currently
experiencing
a
growing
health
trend,
as
seen
by
an
increase
in
importance
that
the
public
places
on
a
healthy
diet,
coupled
with
a
grab
and
go
culture,
Booster
Juice
can
easily
capitalize
on
their
North
American
successes
within
the
UK.
To
implement
this
expansion,
Booster
Juice
will
use
a
waterfall
strategy
to
open
three
test-­‐market
kiosks.
These
locations
will
be
franchised
with
support
and
training
offered
by
the
Canadian
headquarters
and
a
home-­‐country
expatriate
for
the
preliminary
stages.
These
kiosks
will
be
opened
in
London
Heathrow
International
Airport,
the
Brent
Cross
Shopping
Centre,
and
in
downtown
London
on
Oxford
Street.
All
three
locations
are
situated
in
London
as
it
has
the
largest
population
base
as
well
as
a
large
number
of
international
visitors,
who
will
likely
recognize
the
Booster
Juice
brand.
Many
aspects
of
these
kiosks
will
be
standardized
from
the
North
American
stores,
the
colours
and
logo
for
example
will
be
kept
as
to
increase
and
maintain
brand
familiarity.
Other
aspects
will
be
localized
and
adapted,
such
as
the
material
of
the
cups,
the
location
layout
and
promotional
strategies,
as
to
meet
UK
norms
and
expectations.
To
make
this
expansion
a
success,
Booster
Juice
will
separate
itself
from
its
two
main
competitors,
Boost
Juice
and
Fuel
Juice
Bars,
by
carving
out
a
new
market
niche,
leveraging
a

5. Next
Destination
Mergers
5
highly
favorable
home
country
image,
entering
at
a
low-­‐price
strategy,
as
well
as
unveiling
a
strong
marketing
campaign
to
gain
awareness.
After
the
initial
test
period,
if
objectives
are
met
and
Booster
Juice
is
found
to
be
profitable
in
the
UK,
a
full
roll
out
will
be
lead
over
the
entire
region.
This
recommendation
will
lead
Booster
Juice
to
meet
its
goals
to
go
global
and
lead
to
increased
recognition
worldwide,
increased
profits,
and
an
even
more
successful
company
and
brand.
Introduction
Product
Description
Booster
Juice
has
searched
the
world
for
innovative
and
healthy
products
while
also
pioneering
the
“superfood”
movement
as
it
has
committed
itself
to
being
part
of
the
solution
to
the
growing
obesity
problem
in
Canada
and
throughout
the
world
(“Our
History”,
2016).
Booster
Juice
is
working
to
combat
obesity
by
offering
a
variety
of
healthy
product
options
that
range
from
smoothies
and
fresh-­‐squeezed
juices
to
organic,
ready-­‐made
hot
food
offerings
such
as
panini’s,
quesadillas,
and
wraps
-­‐
a
true
departure
from
the
conventional
fast-­‐food
world
(“Philosophy-­‐Product”,
2016).
While
Booster
Juice
does
provide
hot
eats,
its
main
focus
is
on
its
superior
smoothies
and
juice
line,
which
has
a
variety
of
offerings
in
it’s
own
right.
Specifically
in
regards
to
the
smoothies,
customers
can
choose
between
high
protein
superfood
smoothies,
hardcore
smoothies,
spirit
smoothies,
superfood
smoothies,
and
a

6. Next
Destination
Mergers
6
wide
variety
of
“classic”
smoothies.
The
company’s
“one-­‐of-­‐a-­‐kind
smoothies
are
made
from
ripe
berries,
delicious
fruits,
wholesome
veggies
and
fresh
active
live
culture
yogurt,
with
50%
less
ice
than
leading
competitors”
(“Philosophy-­‐Product”,
2016).
Booster
Juice
only
uses
all
natural
flavours,
with
zero
artificial
sweeteners,
colouring
or
alternatives,
ensuring
the
product’s
dedication
to
premium
organic
ingredients
(2016).
Additionally,
customers
have
the
option
of
adding
a
“booster”
to
their
smoothies,
such
as
whey
protein
powder
or
hemp
hearts,
to
give
it
that
extra
healthy
boost
the
company’s
active
target
market
seeks
to
have
in
their
post
or
pre
workout
snack
or
as
a
meal
replacement.
Booster
Juice
also
offers
a
variety
of
delicious
freshly
squeezed
juices
such
as
Cool-­‐Cumber,
Maui
Juice,
Tahiti
Squeeze,
and
many
more.
Other
various
merchandise
such
as
frisbees,
hacky
sacks,
water
bottles,
and
wheatgrass
juicers
can
also
be
purchased
depending
on
individual
preferences.
As
the
company’s
menu
reflects,
Booster
Juice
is
committed
to
serving
delectable,
premium
products
that
emphasize
sustainable
and
organic
food
sources.
Company
Background
Current
President
and
CEO
of
Booster
Juice,
Dale
Wishewan,
has
always
had
a
passion
for
health
and
fitness.
In
1999,
while
travelling
across
the
United
States
and
searching
for
a
new
business
opportunity,
he
noticed
the
growing
popularity
of
smoothie
bars
(“Our
History”,
2016).
This
observation
hit
home
for
Wishewan
as
he
realized
that
smoothie
bars
were
the
perfect
solution
to
fill
the
hole
that
was
in
the
Canadian
fast-­‐food
market
for
active
individuals
seeking
a
healthy
alternative,
therefore
he
decided
to
capitalize

7. Next
Destination
Mergers
7
on
the
opportunity
(2016).
As
the
next
few
months
passed
by,
Wishewan
created
one
smoothie
recipe
after
another,
using
friends
and
relatives
as
taste
testing
guinea
pigs.
It
was
in
this
process
that
the
modest
origin
of
one
of
Canada’s
largest
and
most
successful
franchises
can
be
realized.
Once
the
decision
to
establish
the
company
was
in
place,
a
common
vision
was
created;
“The
Booster
Juice
approach
is
truly
a
unique
food
service
concept
that
combines
great
tasting
products
with
unparalleled
convenience
while
promoting
a
‘health,
freshness,
wellness’
message
in
a
fun,
vibrant,
colourful
&
magnetic
store
environment”
(“Philosophy-­‐
Business”,
2016).
The
first
Booster
Juice
shop
to
open
was
in
Sherwood
Park,
Alberta
in
November
of
1999.
The
newly
established
company
utilized
its
dedication
to
health,
freshness
and
wellness
to
make
the
most
delectable
yet
healthful
smoothies
that
enticed
customers,
even
in
the
midst
of
-­‐25
degree
Celsius
Albertan
winters
(“Our
History”,
2016).
Clearly,
Booster
Juice
understood
exactly
how
to
satisfy
its
health-­‐craving
consumers
and
was
witnessing
strong
customer
loyalty
from
the
start.
Due
to
steady
initial
success,
Wishewan
was
able
to
open
15
Booster
Juice
locations
across
Canada
within
the
first
year
of
opening.
Now,
with
over
300
locations
in
Canada,
United
States,
and
Mexico
there
is
a
new
franchise
opening
faster
than
3
per
month
since
the
end
of
2013
(“Philosophy-­‐Business”,
2016).
Achieving
such
strong
brand
recognition
and
customer
loyalty
throughout
North
America
and
Mexico
indicates
that
Booster
Juice
is
more
than
ready
and
capable
to
offer
their
fresh
and
delicious
juices
and
smoothies
to
the
UK
market.

8. Next
Destination
Mergers
8
Problem
Statement
Booster
Juice
is
an
industry
leader
in
Canada
and
has
experienced
immense
success
across
the
North
American
market.
A
company
goal
mentions
that
they
aspire
to
one
day
bring
their
delectable
smoothies
and
juices
across
the
world
but
have
currently
not
done
so.
Next
Destination
Mergers
believes
that
in
order
for
Booster
Juice
to
continue
their
successful
growth,
the
next
logical
step
is
to
expand
the
company
outside
of
North
America.
The
United
Kingdom
is
regarded
as
the
most
strategic
start
to
this
expansion
as
its
culture
strongly
reflects
the
culture
of
North
America,
making
the
new
business
development
an
easier
transition.
An
in
depth
analysis
of
the
country,
business,
and
marketing
mix
will
be
conducted
to
further
support
this
suggested
expansion.
Country
Analysis
Rationale
for
Expansion
Throughout
the
past
few
decades,
consumer
demand
regarding
food
has
changed
dramatically
in
the
United
Kingdom
and
the
rest
of
the
world.
Consumers
are
now
starting
to
understand
the
impact
that
food
has
on
their
health
and
they
are
becoming
increasingly
health-­‐conscious.
People
are
realizing
that
food
not
only
serves
the
purpose
of
satisfying
hunger
and
providing
nutrients,
but
it
can
also
prevent
nutrition-­‐related
diseases
and
improve
physical
and
mental
well-­‐being
(Siro
et
al.,
2008).
Booster
Juice
offers
smoothies
and
juices
in
order
to
provide
a
healthy
alternative
to
its
customers.
With
the
increasing
global
trend
of
healthy
eating,
Next
Destination
Mergers
believes
the
United
Kingdom
would

9. Next
Destination
Mergers
9
be
both
a
favorable
and
lucrative
market
for
Booster
Juice
to
consider
expanding
its
operations.
Socio-­‐Cultural
Environment
Opportunities
The
current
population
of
the
United
Kingdom
is
64.5
million,
with
the
largest
age
cohort
ranging
from
ages
25
-­‐
40
years
(World
Bank
&
World
Factbook,
2016).
Approximately
82.6%
of
the
population
lives
in
urban
areas,
most
of
which
is
concentrated
in
London,
with
a
population
of
10.3
million.
As
most
of
the
UK’s
population
is
densely
populated
in
the
major
cities,
it
creates
an
opportunity
for
Booster
Juice
when
determining
where
to
set-­‐up
shop.
In
2008,
a
survey
conducted
by
the
Food
Standards
Agency
(FSA)
revealed
that
86%
of
British
adults
consider
healthy
eating
to
be
of
high
importance,
which
suggests
that
the
majority
of
the
British
population
believes
that
food,
diet
and
healthy
eating
are
considered
important
(National
Obesity
Observatory,
2011).
Additionally,
findings
show
that
presenting
healthy
foods
as
an
enjoyable
option,
opposed
to
as
specifically
a
health
product,
increases
the
chances
of
them
being
selected
(2011).
To
Booster
Juice’s
advantage,
well-­‐established
fast-­‐food
companies
that
have
strong
brand
awareness
in
the
UK
are
being
faced
with
competition
from
growing
health
trends
(Consumer
Foodservice,
2015).
Booster
Juice
is
a
product
that
is
both
healthy
and
tasty
and
because
their
brand
image
represents
this
fact,
it
is
likely
that
young
adults
who
are
concerned
with
their
health

10. Next
Destination
Mergers
10
will
be
attracted
to
this
product.
In
fact,
teenagers
are
becoming
more
willing
to
pay
for
higher-­‐quality
food
than
their
adult
counterparts
(2015).
Recently,
leading
food
chains
have
focused
on
offering
more
convenient
methods
of
ordering
food
to
keep
up
with
the
growing
demand
from
100%
home
delivery
(2015).
Fast
casual
dining
represents
a
growing
segment
in
the
fast
food
sector,
driven
by
the
segment’s
healthy
perception
among
British
consumers
(A
Diverse
Foodservice
Sector,
2011,
p.
10).
This
presents
an
opportunity
for
Booster
Juice
to
leverage
the
grab-­‐and-­‐go
culture,
offering
healthy
products
that
customers
can
take-­‐away
from
the
point
of
purchase.
Threats
There
has
been
a
rise
of
budget
gym
facilities
in
London,
England.
Most
recently
reported,
budget
gyms
account
for
21%
of
all
fitness-­‐club
memberships
and
are
growing
at
a
rate
of
200%
in
the
United
Kingdom
(The
Economist,
2014).
This
socio-­‐cultural
trend
demonstrates
that
Britons
are
becoming
increasingly
interested
in
cheap
alternatives
to
achieve
a
healthy
lifestyle.
This
is
a
limiting
factor
to
Booster
Juice’s
potential
success
in
the
UK
as
those
looking
to
stay
fit
on
a
small-­‐dime
will
not
be
likely
to
purchase
an
expensive
beverage
to
supplement
their
post-­‐workout
nutrition.
In
fact,
a
survey
conducted
in
2007
by
the
Health
Survey
for
England
revealed
that
20%
of
British
respondents
claimed
that
cost
prevented
them
from
adopting
healthier
eating
patterns
(National
Obesity
Observatory,
2011).

11. Next
Destination
Mergers
11
Technological
Environment
Opportunities
Globally,
the
fast
food
industry
is
rapidly
adopting
new
technologies
and
it
is
transforming
the
way
companies
identify
growth
opportunities.
With
57.3
million
Internet
users,
89.9%
of
the
UK
population
is
online
and
as
of
May
2015,
76%
of
Britons
had
smartphones
(The
World
Fact
Book,
2014
&
Mobile
Consumers,
2015).
Collectively,
UK
consumers
look
at
their
smartphones
over
a
billion
times
a
day
(Mobile
Consumers,
2015).
Booster
Juice
can
capitalize
on
this
opportunity
by
integrating
their
marketing
strategies
with
Internet
technology
to
better
reach,
connect
and
engage
with
their
target
audience
through
their
smartphones.
Additionally,
data
and
analytics
from
digital
marketing
efforts
will
provide
Booster
Juice
customer
insight,
which
will
help
when
making
brand
and
product
management
and
pricing.
Contactless
payment
methods
are
a
recent
and
growing
trend
in
the
UK
market.
According
to
The
UK
Cards
Association,
contactless
payments
increased
215.4%
from
2014
to
2015
(Contactless
Statistics,
2015).
As
more
UK
consumers
adopt
these
payment
methods,
it
would
be
opportunistic
for
Booster
Juice
to
adopt
NFC
(contactless)
card
readers
so
that
all
in-­‐store
payment
methods
are
available
at
the
customer's
convenience.
Threats
A
growing
technological
adoption
trend
in
the
fast-­‐food
retail
industry
is
digital
menu
boards.
Digital
menu
boards
offer
full-­‐colouring
LED
display
images
that
allows
restaurants

12. Next
Destination
Mergers
12
to
promote
menu
times
in
real
time
and
up-­‐sell,
giving
those
who
have
them
a
competitive
advantage
over
businesses
that
are
still
using
back-­‐lit
or
paper
solutions.
As
more
restaurants
follow
this
trend,
Booster
Juice
will
be
forced
to
implement
this
technology
to
compete
with
competitors.
This
will
be
a
high
added-­‐cost
for
the
business
and
thus
a
threat
for
the
company.
Environment
Opportunities
The
UK
Department
for
Environment
Food
and
Rural
Affairs
defines
waste
as
“any
substance
or
object
in
which
the
holder
discards
or
intends
or
is
required
to
discard”
(DEFRA,
2012).
Booster
Juice
smoothie
products
are
given
to
the
customers
in
a
styrofoam
container,
which
becomes
waste
after
the
customer
consumes
the
beverage.
The
UK
is
expected
to
meet
the
EU
target
of
recycling
50%
of
waste
by
2017
and
expect
the
government,
local
authorities
and
businesses
to
work
together
to
achieve
this
target
(EEA,
2013).
In
the
city
of
London,
expanded
polystyrene,
more
commonly
known
as
styrofoam,
is
considered
waste
and
it
is
required
to
be
put
in
the
waste
bin
when
being
disposed
(City
of
London,
2016).
Booster
Juice
can
become
more
socially
responsible
in
the
UK
market
by
switching
their
juice
primary
packing
from
styrofoam
to
PETE
plastic,
a
recyclable
product
(2016).
This
modification
from
styrofoam
to
plastic
is
an
opportunity
for
Booster
Juice
because,
according
to
the
Nielsen
Global
Survey
of
Consumer
Shopping
Behavior,
one
in
four
UK

13. Next
Destination
Mergers
13
consumers
are
choosing
more
environmentally-­‐friendly
products
despite
their
higher
price
(“Retail
Gazette”,
2013).
Threats
It
is
predicted
that
the
population
of
the
UK
will
grow
to
be
between
72-­‐77
million
by
2039
as
a
result
of
net
migration
(Cangiano,
2016).
This
growth
in
population
places
stress
on
UK
food
production
and
prices
for
consumers
within
the
region
as
they
become
more
reliant
on
imported
foods.
Currently,
the
UK
has
a
self-­‐sufficiency
ratio
for
fresh
fruit
and
vegetables
of
just
12%
and
58%
respectively,
demonstrating
that
they
are
reliant
on
international
food
imports
to
sustain
population
demand
in
this
food
group
(Wright,
2014).
Climate
change
is
affecting
global
food
production
as
rising
temperatures
have
a
direct
effect
on
crops
yield,
reducing
the
food
availability
in
the
UK,
which
in
effect
is
contributing
to
food
inflation
(UK
Food
Security).
As
Booster
Juice’s
product
is
reliant
on
fresh
fruits
and
vegetables,
climate
change
and
food
scarcity
will
increase
their
direct
material
costs.
Climate
change
also
has
potential
to
affect
the
fresh
fruit
beverage
industry
in
the
long-­‐term.
Economic
Environment
Opportunities
Located
in
Western
Europe,
the
high
income,
developed
economy
of
the
United
Kingdom
is
an
open
market
where
the
price
of
goods
and
services
are
determined
by
a
free
price
system,
helping
attract
potential
organizations.
The
UK
has
a
population
of
64.5
million,
making
it
the
22nd
most
populated
country
in
the
world
(EIU,
2016).
The

14. Next
Destination
Mergers
14
unemployment
rate
is
5.4%,
which
is
quite
impressive
when
compared
to
Canada’s
unemployment
rate
of
6.9%
(EIU,
2016).
The
UK
has
a
rather
large
economy
that
has
the
capacity
to
support
many
major
businesses.
In
2015,
the
economy
experienced
a
2.2%
growth
that
is
expected
to
level
out
and
remain
steady
through
2016
and
2017
(EIU,
2016).
GDP
per
capita
of
the
United
Kingdom
is
$41,259,
making
it
among
the
top
thirty
countries
in
the
world
(EIU,
2016).
Since
Booster
Juice
is
a
more
expensive
and
healthy
alternative,
it
is
important
that
the
citizens
of
the
country
are
able
to
afford
it.
Considering
the
fact
that
the
UK
is
a
well
developed
and
relatively
wealthy
country,
people
generally
have
higher
disposable
incomes
that
they
are
willing
to
spend
on
healthier
options
such
as
fruit
smoothies
or
fresh
juice.
The
UK
is
also
united
through
a
political
union,
the
European
Union,
and
is
a
member
of
the
World
Trade
Organization.
Their
top
three
trading
partners
are
the
United
States,
Germany,
and
Switzerland.
It
is
extremely
important
for
a
country
to
maintain
positive
trade
relations
throughout
the
world
because
trade
has
become
an
integral
part
of
being
successful
in
today’s
world
economy.
Threats
Since
1998,
the
United
Kingdom
has
been
running
consistent
trade
deficits
that
are
mainly
due
to
the
increase
in
demand
of
consumer
goods,
decline
in
manufacturing,
depreciation
of
the
British
Pound
and
deterioration
in
oil
and
gas
production
(Trading
Economics,
2016).
In
October
2015,
people
worried
that
the
dismal
trade
figures
provided

15. Next
Destination
Mergers
15
further
signs
that
the
economy
recovery
has
remained
significantly
unbalanced
in
the
fourth
quarter
(BBC,
2015).
There
are
many
negative
implications
of
a
prolonged
trade
deficit
that
could
eventually
affect
the
UK.
For
example,
over
time,
investors
may
notice
a
decline
in
spending
on
domestically
produced
goods,
which
will
hurt
domestic
producers
and
their
stock
prices.
Many
are
worried
that
if
they
do
not
begin
spending
less
than
they
borrow,
the
country
may
never
be
able
to
reverse
the
damages
done.
Political
Environment
Opportunities
The
United
Kingdom,
like
Canada,
operates
under
a
parliamentary
democracy
and
constitutional
monarchy
system
(UK
Government,
2016).
A
parliamentary
democracy
means
that
the
government
is
voted
into
power
by
the
people,
to
act
in
the
interests
of
the
people.
A
constitutional
monarchy
means
that
there
is
an
established
monarch,
currently
Queen
Elizabeth
II,
who
remains
politically
impartial
and
has
limited
powers.
The
Prime
Minister
is
the
head
of
the
UK
government
and
is
responsible
for
all
policy
and
decisions,
which
includes
overseeing
the
operation
of
the
Civil
Service
and
government
agencies
and
appointing
members
of
government.
The
current
Prime
Minister
is
David
Cameron
and
he
is
the
principal
government
figure
in
the
House
of
Commons.
Since
the
government
structures
in
both
Canada
and
the
United
Kingdom
are
so
similar,
Booster
Juice
would
be
very
familiar
with
the
political
environment
and
would
not
have
to
learn
how
to
adjust
to
a
different

16. Next
Destination
Mergers
16
system.
This
political
know-­‐how
will
most
definitely
work
in
favor
of
the
company
as
it
enters
this
new
market.
Threats
There
have
been
major
discussions
recently
regarding
the
United
Kingdom
leaving
the
European
Union
altogether.
This
exit
could
cause
a
number
of
negative
implications
for
the
country.
People
believe
that
this
exit
could
potentially
tarnish
the
UK’s
reputation
of
being
a
major
financial
centre.
It
also
may
cause
them
to
lose
negotiating
power,
weaken
their
overall
military
and
could
cause
other
countries
to
view
them
as
a
weaker
ally
than
before.
The
United
Kingdom’s
relationship
with
the
rest
of
Europe
remains
a
hot
topic
and
the
referendum
on
June
23,
2016
will
be
a
very
important
day
for
all.
Legal
Environment
Opportunities
Since
the
1960s,
when
the
very
first
franchises
were
launched
in
the
United
Kingdom,
this
entry
strategy
has
continued
to
flourish
and
become
an
extremely
effective
technique
for
expanding
business
(Drakes,
n.d.).
As
of
2013,
there
were
over
900
franchises
operating
in
the
UK
across
a
variety
of
sectors,
boasting
an
annual
turnover
of
13.7
billion
GBP
(Franchise
Know
How,
2016).
International
businesses
are
attracted
to
the
UK
for
a
number
of
different
reasons,
including
their
reputation
for
being
a
lightly
regulated
place
to
do
business
and
the
perceived
efficiency
and
fairness
of
the
English
court
system
in
resolving
international

17. Next
Destination
Mergers
17
commercial
disputes.
The
Code
of
Ethics
of
the
British
Franchise
Association
provide
a
benchmark
for
good
industry
practice
in
relation
to
issues
such
as
advertising,
recruitment,
fairness
in
the
franchise
relationship,
and
dispute
resolution.
Overall,
if
Booster
Juice
wants
to
expand
their
operations,
the
laws
in
the
United
Kingdom
allow
franchising
to
be
an
extremely
realistic
and
viable
entry
mode.
Threats
Through
conducting
research,
it
was
discovered
that
there
were
no
major
legal
threats
present
in
the
United
Kingdom
that
could
hinder
the
success
of
Booster
Juice.
However,
with
any
franchise,
which
according
to
the
company’s
website
is
Booster
Juice’s
preferred
mode
of
entry
when
entering
new
markets,
there
are
some
possible
complications
to
consider.
For
one,
since
the
franchisor
sells
intangible
property
to
the
franchisee,
they
may
lose
power
on
some
quality
control
issues
(Cateora
et
al,
2011,
p.
334).
The
franchisor
must
trust
that
the
franchisee
will
abide
by
a
variety
of
rules
on
how
to
do
business,
and
if
the
franchisee
does
not
follow
through,
a
messy
lawsuit
could
ensue.
Furthermore,
the
large
geographical
distance
between
Canada
and
the
UK
could
make
it
difficult
for
the
franchisor
to
detect
poor
quality
(p.
334).
Since
they
are
not
physically
close
together,
it
is
hard
to
supervise
the
operation
and
make
sure
everything
is
running
as
smoothly
as
it
would
back
in
the
home
country.

18. Next
Destination
Mergers
18
Business
Analysis
Mode
of
Entry
The
United
Kingdom
is
an
appealing
market
for
Booster
Juice
to
expand
into
for
a
few
key
reasons
including
free
trade,
a
rich
and
tech
savvy
economy
and
the
nation
has
a
huge
potential
customer
base
due
to
its
vast
population,
as
stated
earlier
in
the
socio-­‐cultural
environment
of
the
country
analysis.
However,
it
is
important
to
note
that
while
the
focus
of
the
country
analysis
is
on
the
entire
United
Kingdom,
it
is
believed
that
it
will
be
more
strategic
for
Booster
Juice
to
initially
open
up
shop
solely
in
England
as
this
nation
has
the
highest
population
density
(53
million)
when
compared
to
Scotland,
Wales
and
Ireland,
that
have
a
combined
population
of
10
million
(“United
Kingdom:
Countries
and
major
cities,
n.d.).
Furthermore,
approximately
82.6%
of
the
United
Kingdom’s
population
resides
in
urban
areas,
most
of
which
is
concentrated
in
and
around
the
downtown
core
of
London
(World
Bank
&
World
Factbook,
2016),
a
statistic
that
supports
the
expansion
decision.
Therefore,
if
Booster
Juice
experiences
success
within
the
English
market,
the
plan
is
to
expand
operations
into
the
rest
of
the
United
Kingdom.
It
is
imperative
for
Booster
Juice
to
closely
examine
all
possible
modes
of
entry
because
the
company
needs
to
ensure
it
utilizes
the
appropriate
method
for
their
product
and
brand.
There
are
five
possible
modes
of
entry
that
Booster
Juice
could
use
when
expanding
into
England.
These
include
exporting,
turnkey
projects,
contractual
agreements,
joint
ventures
and
wholly
owned
subsidiaries.
Each
of
these
expansion
options
will
be

19. Next
Destination
Mergers
19
examined
in
regards
to
their
advantages
and
disadvantages
in
order
to
select
a
mode
that
is
believed
to
be
the
most
successful
and
lucrative
for
the
company.
Advantages
&
Disadvantages
of
Each
Mode
of
Entry
Exporting
Prior
to
choosing
which
type
of
exporting
method
would
be
a
favorable
mode
of
entry
for
Booster
Juice,
the
product
in
which
they
wish
to
export
must
first
be
explored.
Booster
Juice’s
main
products
are
fresh
smoothies
and
juices.
However,
when
considering
exporting
smoothies
internationally
to
England,
the
fresh
aspect
of
their
product
is
no
longer
achievable.
Booster
Juice
makes
all
their
product
fresh
in-­‐shop
and
currently,
the
company
does
not
have
the
business
capacity
or
facilities
to
mass
produce
and
pre-­‐package
their
fresh
products
to
be
exported
internationally.
For
that
reason,
it
would
be
ideal
for
Booster
Juice
to
consider
exporting
their
Whey
Protein
Powder
because
it
is
a
prepackaged
product,
has
a
long
shelf-­‐life
nor
is
it
marketed
as
a
fresh
food
product.
There
are
two
different
methods
Booster
Juice
can
consider
when
exporting
their
products.
The
first
method
is
to
directly
export
their
product
to
another
international
company
or
customer
(Cateora
et
al,
2011,
p.
315).
The
second
method
is
through
indirect
exporting,
which
would
require
Booster
Juice
to
sell
their
product
to
a
buyer
who
in
turn
will
export
the
product
(p.
315).
Indirect
exporting
is
the
safer
method
between
the
two,
as
it
minimizes
the
risks
and
financial
losses
for
companies
just
beginning
to
export
their
product
internationally
(p.
315).
When
comparing
the
two
methods,
it
would
be
ideal
for
Booster

20. Next
Destination
Mergers
20
Juice
to
indirectly
export
their
product
to
England
through
a
Canadian
wholesaler
that
distributes
health
supplements.
This
method
would
be
the
best
option
for
Booster
Juice
as
it
would
confirm
that
their
product
reaches
supplement
retail-­‐companies
in
England
free
of
charge.
Selling
their
product
to
Canadian
wholesalers
would
provide
additional
guaranteed
profit
as
well
and
save
Booster
Juice
capital
they
would
have
otherwise
had
to
spend
negotiating
export
logistics
for
a
product
the
company
already
puts
so
little
emphasis
on.
If
Booster
Juice
is
successful
in
exporting
their
product
this
way,
they
should
then
consider
diversifying
their
health
supplements,
then
directly
market
these
products
to
retailers
and
wholesalers
in
England.
Turnkey
Projects
A
Turnkey
Project
is
essentially,
a
ready-­‐to-­‐use
project
that
has
been
constructed
and
sold
to
a
buyer
(El
Banna,
2016).
Generally,
the
contractor
will
construct
the
plant
and
train
personnel
until
the
terms
of
the
contract
have
been
completed
and
then
the
client
will
be
given
full
control
of
the
operation.
Turnkey
projects
are
typically
implemented
when
dealing
with
production
technologies,
which
can
be
complex
and
expensive
such
as
chemical,
pharmaceutical,
and
refining
industries.
Some
advantages
to
this
method
include
earning
large
economic
returns
from
the
knowledge
and
expertise
given
from
the
turnkey
project
process,
and
limits
political
or
economic
risk
(2016).
Turnkey
project
owners
are
also
relieved
of
any
additional
costs
of
potential
defects;
the
contractors
cover
these
costs.
These
projects
usually
begin
before
finalization
of
plans
resulting
in
a
shorter
timeline
(Shapiro,

21. Next
Destination
Mergers
21
n.d.).
One
major
disadvantage,
from
the
perspective
of
the
contractor;
is
that
it
could
create
competitors
by
selling
competitive
advantages
and/or
technology
(El
Banna,
2016).
Additionally,
there
would
be
loss
of
control
over
the
project
in
terms
of
design
and
execution,
leaving
little
to
no
room
for
changes
to
meet
needs.
Also,
the
contractor
is
in
charge
before
purchase,
which
can
lead
to
the
elimination
of
a
third-­‐party
“quality
control”,
resulting
in
a
quick,
cheap,
and
project
of
poor
quality
(Shapiro,
n.d.).
Given
this
information,
Booster
Juice
might
not
benefit
from
a
turnkey
project
as
it
would
not
leave
much
room
for
alterations
or
creativity,
therefore
the
products
from
the
original
project
and
Booster
Juice
would
have
to
be
the
same
or
similar
for
success.
Contractual
Agreements
Contractual
agreements
are
a
long-­‐term
non-­‐equity
association
with
a
company
that,
in
the
case
of
this
report,
is
already
well
established
in
England
(Cateora
et
al,
2011,
p.
318).
It
is
a
mode
of
entry
that
Booster
Juice
commonly
implements
and,
because
they
have
successfully
opened
multiple
locations
in
both
the
United
States
and
Mexico
using
this
method,
it
suggests
that
this
is
a
great
starting
point
when
merging
into
a
new
market
that
already
has
a
large
health-­‐conscious
consumer
base
(National
Obesity
Observatory,
2011).
There
are
two
main
types
of
contractual
agreements
that
Booster
Juice
could
implement
when
entering
the
English
market.
These
two
types
are
licensing
and
franchising.

22. Next
Destination
Mergers
22
Licensing
Essentially,
a
licensing
agreement
is
an
arrangement
whereby
a
licensor
grants
a
license
for
a
specified
period
of
time
to
a
licensee
in
exchange
for
a
royalty
fee
(Cateora
et
al,
2011,
p.
318).
The
license
would
give
the
licensee
access
to
intangible
property
such
as
copyrighted
materials,
patents,
inventions,
designs
and
trademarks
when
processing
or
selling
Booster
Juice
products
in
England
(p.
318).
Typically,
this
mode
of
entry
is
viewed
as
a
supplement
to
exporting
and
is
a
major
advantage
if
capital
for
the
company
is
insufficient
as
licensing
is
a
means
of
establishing
space
in
foreign
markets
without
significant
capital
investment
(p.
318).
Another
advantage
that
comes
with
this
mode
of
entry
is
that
both
the
licensor
and
licensee
do
not
have
to
cover
the
high
development
costs
and
risks
associated
with
entering
a
foreign
market.
However,
there
are
also
disadvantages
and
risks
associated
with
this
method
of
expansion.
For
example,
licensing
means
potential
loss
of
control
over
manufacturing,
marketing
and
strategy.
As
a
result,
precautions
would
have
to
be
taken
to
ensure
that
the
actual
smoothies
and
health
food
products
and
their
marketing
are
maintaining
high
quality.
Another
disadvantage
that
is
a
potential
turn
off
to
this
method
of
entry
is
that
it
is
often
the
least
profitable
way
of
entering
a
market
(p.
319).
Franchising
Franchising
is
a
form
of
licensing
in
which
the
franchisor
in
the
home
country
supplies
a
standardized
package
of
products,
systems
and
management
services
to
the
franchisee
in
a

23. Next
Destination
Mergers
23
foreign
market,
which
in
return
provides
market
knowledge,
capital
and
personal
involvement
in
management
(Cateora
et
al,
2011,
p.
319).
Typically,
the
franchisor
drafts
an
agreement
with
the
franchisee
that
include
details
about
how
the
franchise
should
look
and
operate
(Canada
Business
Network,
2015).
It
is
for
the
above
reasons
that
franchising
is
a
very
popular
method
of
expansion
for
foreign
market
entry.
Booster
Juice
provides
many
opportunities
for
individuals
who
want
to
purchase
its
franchise.
For
one,
Booster
Juice
provides
single/multi-­‐unit
franchisee
opportunity
for
individuals
who
have
drive
and
motivation
to
enjoy
life
and
spread
their
passion
to
their
staff
and
customers
(“Booster
Juice
Franchise
Business
Opportunity”,
2015).
As
well,
Booster
Juice
provides
master
developer
opportunity
for
people
residing
outside
of
Canada
who
have
a
successful
business
history,
strong
financial
backing
and
the
desire
to
develop
and
support
a
regional
territory
(2015).
A
crucial
advantage
that
comes
with
owning
a
franchise
is
that
one
can
directly
obtain
the
turnkey
store
development,
design,
permit,
management
of
contractors,
and
store
setup
(Cateora
et
al,
2011,
p.
320).
In
addition,
the
franchisee
will
be
given
top
of
the
line
equipment
that
focus
on
labor
efficiency,
customer
experience,
speed
of
service
and
low
on-­‐going
maintenance
(p.
320).
The
franchisee
can
also
receive
support
with
site
selection,
high
quality
ingredients
at
a
low
cost,
specific
training
and
a
complete
operations
manual.
Nevertheless,
there
are
still
some
disadvantages
of
owning
a
franchise,
such
as
losing
flexibility
to
run
the
business
and
ongoing
costs
such
as
royalties
and
advertising.
Moreover,

24. Next
Destination
Mergers
24
due
to
the
geographic
distance
of
the
firm
between
Canada
and
England,
franchising
can
make
poor
quality
difficult
for
Booster
Juice
to
detect.
However,
despite
these
few
difficulties,
Next
Destination
Mergers
believes
franchising
would
be
an
excellent
entry
mode
to
expand
business
to
England.
International
Joint
Venture
An
international
joint
venture
occurs
when
two
or
more
companies
mutually
own
a
new
separate
and
independent
firm,
leading
to
a
share
in
management
and
equity
(Cateora
et
al,
2011,
p.
321).
When
moving
into
the
English
market,
an
international
joint
venture
may
be
able
to
provide
assistance
to
Booster
Juice.
This
is
because
by
offering
knowledge
on
the
host
country’s
competitive
conditions,
culture,
language,
and
its
political
and
business
systems,
a
local
partner
could
ease
the
transition
into
the
new
market.
This
mode
of
entry
also
leads
to
less
risk
for
the
firm
entering
the
foreign
market
as
the
costs
and
risks
are
shared
with
the
local
partner
(p.
322).
International
joint
ventures
do,
however,
come
with
disadvantages.
Booster
Juice
risks
giving
control
of
its
business
and
technological
know
how
to
its
partner
firm
in
England,
not
allowing
for
complete
jurisdiction
over
business
decisions.
This
mode
of
entry
can
also
lead
to
conflicts
over
time
if
goals
and
objectives
begin
to
deviate
between
firms.
It
is
for
these
reasons
that
it
is
suggested
that
Booster
Juice
does
not
pursue
an
international
joint
venture.
The
lack
of
control
over
the
company
and
sharing
technological
insights
is
not
ideal,
and
because
England
is
similar
to
Canada
in
many

25. Next
Destination
Mergers
25
respects,
Booster
Juice,
with
the
proper
research,
could
make
a
strong
entrance
into
the
English
market
(and
eventually
the
entire
United
Kingdom)
without
a
local
partner.
Wholly
Owned
Subsidiaries
Overall,
a
wholly
owned
subsidiary
is
when
a
firm
owns
100
percent
of
the
stock
and
is
seen
as
the
‘parent
company’
of
another
(El
Banna,
2016).
Establishing
a
wholly
owned
subsidiary
in
a
foreign
market
can
be
done
in
two
ways.
The
first
would
be
to
set
up
a
new
operation
in
that
country,
this
is
known
as
Greenfield
investment.
The
second
would
be
to
acquire
an
established
firm
and
use
that
firm
to
promote
its
products
in
the
country’s
market,
known
as
acquisition.
The
two
strategies
will
be
explained
in
further
detail
below.
Greenfield
Investment
One
consideration
under
wholly
owned
subsidiaries
is
a
Greenfield
investment.
Although
Booster
Juice’s
current
mode
of
entry
for
their
locations
within
Canada,
the
United
States
and
Mexico
are
done
through
franchising,
Greenfield
investment
is
still
an
option
they
could
switch
to
when
entering
England’s
market.
Greenfield
investment
is
when
a
company
starts
a
new
venture
in
a
foreign
country
by
constructing
operational
facilities
from
the
ground
up.
Some
advantages
of
this
approach
is
that
it
reduces
the
risk
of
the
firm
losing
control
over
their
compliance,
however,
it
is
also
one
of
the
most
costly
methods
when
entering
into
a
foreign
market.
Although
this
option
would
allow
full
company
control
in
terms
of
quality,
entry
and
marketing,
it
lacks
the
local
cultural
knowledge
that
Booster

26. Next
Destination
Mergers
26
Juice’s
current
mode
entry,
franchise
and
turnkey,
offers
for
the
company
and
it
is
the
expansion
method
that
is
the
most
expensive.
From
a
marketing
perspective,
much
market
research
would
have
to
be
conducted
in
order
to
fully
understand
this
market
before
entering
as
a
Greenfield
investment.
Nevertheless,
even
extensive
marketing
research
is
sometimes
not
enough
to
fully
understand
the
market
and
local
expertise
works
best
to
assist
the
ease
of
entry,
which
is
something
Greenfield
investment
lacks.
Mergers
and
Acquisitions
Mergers
and
acquisitions
is
an
overall
term
used
to
describe
the
consolidation
of
companies,
but
it
is
important
to
note
that
these
two
activities
are
somewhat
separate.
A
merger
would
require
the
two
companies
(Booster
Juice)
and
another
local
English
company
to
‘merge’
together
to
form
a
new
company.
On
the
other
hand,
an
acquisition
is
the
purchase
of
one
company
by
another
(Booster
Juice
purchasing
a
local
business)
to
sell
their
products.
A
merger
would
allow
Booster
Juice
to
combine
their
own
expertise
with
a
local
business
that
already
understands
the
culture
and
demographic
of
the
English
market.
Although
this
would
reduce
entry
risks,
this
option
would
also
take
away
from
the
Booster
Juice
brand
itself.
In
terms
of
an
acquisition,
this
would
require
Booster
Juice
to
actually
purchase
an
already
established
local
business
within
England’s
market.
The
advantage
of
this
option
is
that
it
takes
away
some
entry
risks,
as
the
local
business
is
already
adapted
to

27. Next
Destination
Mergers
27
the
local
markets.
This
mode
of
entry
is
definitely
a
safe
and
quick
way
to
acquire
a
business,
with
a
greater
likelihood
of
initial
financial
gain
as
products
are
sold
through
an
already
established
local
business.
This
means
the
marketing
and
branding
expenses
will
not
be
as
substantial
compared
to
other
modes
of
entry.
Although
this
would
allow
initial
success,
it
would
still
be
up
to
Booster
Juice
to
fully
understand
the
market
in
England
when
taking
over
the
new
acquired
business
for
continued
adaptation
to
the
local
market.
One
risk
of
this
option,
as
stated
above,
is
that
it
takes
away
from
Booster
Juice
being
able
to
fully
establish
their
‘Booster
Juice’
brand,
as
they
would
be
established
under
a
different
name.
It
is
noted
that
Booster
Juice
does
not
currently
use
mergers
and
acquisitions
as
a
mode
of
entry
method.
Selection
of
Mode
of
Entry
Based
on
the
above
analysis
of
the
advantages
and
disadvantages
of
the
eight
main
methods
of
expansion
into
foreign
markets,
Next
Destination
Mergers
believes
the
best
way
to
enter
London,
and
later
expand
fully
into
the
entire
United
Kingdom,
is
by
utilizing
franchising
as
the
selected
mode
of
entry.
The
city
of
London
is
understood
as
the
most
strategic
initial
place
of
entry
into
the
English
market
because,
as
stated
in
the
socio-­‐cultural
environment
in
the
country
analysis,
it
has
the
largest
population
and
metropolitan
area
within
the
entire
United
Kingdom,
therefore
Booster
Juice
stores
have
a
better
chance
of
creating
brand
recognition
and
attracting
active
customers
in
this
location.

28. Next
Destination
Mergers
28
To
begin,
it
should
be
noted
that
one
of
the
most
important
factors
when
it
comes
to
international
franchising
is
to
ensure
the
franchisees
have
enough
information
about
their
foreign
markets
economic
and
regulation
power
because,
without
this
vital
understanding,
the
franchise
is
bound
to
fail
due
to
violation
of
the
law
or
misunderstanding
the
economic
situation.
Another
important
factor
is
to
establish
a
good
relationship
between
the
franchisor
and
franchisee,
as
this
is
crucial
for
a
seamless
expansion.
In
order
to
open
up
a
Booster
Juice
franchise
in
the
city
of
London,
the
first
step
is
to
choose
a
developer
who
has
a
successful
business
history,
strong
financial
backing
and
is
familiar
with
the
regional
territory
(“Booster
Juice
Franchise
Offering
Circular”,
2006,
p.
2).
Booster
Juice
currently
offers
an
opportunity
for
international
developers
called
Master
Developer.
For
the
Master
Developer,
Booster
Juice
has
already
determined
the
franchising
price.
It
requires
that
the
developer
have
minimum
financial
net
worth
of
$350,000
and
liquid
assets
of
$100,000
while
the
initial
franchise
fee
is
$20,000
(“Franchise
Info-­‐Costs
&
Qualifications”,
2016).
Upon
satisfying
these
mandatory
requirements
and
complying
with
the
franchise
agreement,
the
developer
can
purchase
a
Booster
Juice
franchise
and
start
the
business
in
the
agreed
upon
location
and
establish
a
store
space.
Based
on
research,
it
is
recommended
to
open
a
smoothie-­‐bar
kiosk
in
the
Heathrow
International
Airport.
This
is
recommended
because
Next
Destination
Mergers
came
across
a
news
article
on
the
company
website
about
how
in
2014,
Booster
Juice
was
listed
as
one
of
the
top
six
airport
franchisors
in
North
America
(“Booster
Juice:
The
Only
Canadian
Franchisor
to
Make
the

29. Next
Destination
Mergers
29
List”,
2014).
It
is
also
important
to
note
that
Booster
Juice
was
the
only
Canadian
franchisor
to
appear
on
this
prestigious
list,
indicating
that
the
Canadian
company
is
quite
competitive.
As
well,
it
is
recommended
that
a
kiosk
is
located
in
an
international
airport
because
customers
travelling
from
North
America
will
most
likely
recognize
the
Booster
Juice
brand.
This
could
work
in
the
company’s
favor
because
these
consumer’s
brand
recognition
can
provide
the
company
word-­‐of-­‐mouth
advertising
because
Canadian
tourists
may
talk
about
Booster
Juice
smoothies
and
recommend
the
brand
to
British
and
other
international
tourists.
Because
Booster
Juice
has
already
experienced
success
in
the
airport
space
in
North
America
and
because
the
country
analysis
found
that
fast
casual
dining
represents
a
growing
segment
in
England,
it
would
be
wise
to
bring
this
grab
and
go
kiosk
to
the
English
market.
Additionally,
another
recommended
franchise
location
is
within
a
major
shopping
centre,
such
as
Brent
Cross
Shopping
Centre.
This
specific
shopping
centre
is
recommended
because
there
is
a
high
amount
of
customer
traffic
that
falls
within
the
Booster
Juice
target
market
of
active,
urban-­‐chic,
individuals
between
the
ages
of
25
and
40
that
will
be
shopping
for
workout
clothes
or
health
food
items.
Booster
Juice
also
plans
to
open
one
more
location
within
the
downtown
core
of
London
on
Oxford
Street,
please
refer
to
place
in
the
marketing
mix
section
for
more
on
this.
When
it
comes
to
the
dimensions
of
the
actual
space,
the
first
few
smoothie-­‐bar
kiosks
that
open
will
be
between
120
and
400
square
feet
because
these
measurements
will
be
cost
efficient
as
it
minimizes
rental
fees
that
are
associated
with
opening
a
franchise.
As

30. Next
Destination
Mergers
30
these
kiosks
will
be
the
first
locations
in
England
and
Europe
as
a
whole,
the
company
will
provide
a
comprehensive
franchising
guide
for
the
international
developer
to
ensure
their
operation
is
following
the
company’s
requirements.
The
next
step
in
the
franchising
agreement
is
to
provide
two
weeks
of
training
to
the
developer.
The
purpose
of
this
training
is
to
guide
the
developer
and
help
them
gain
a
deep
understanding
of
the
company’s
corporate
culture
and
operational
procedures.
It
is
useful
for
the
developer
to
have
a
clear
understanding
and
consideration
about
how
they
can
combine
North
American
values
with
British
values.
During
preparation
and
the
first
month
of
business,
the
company
will
dispatch
a
home-­‐country
expatriate
(HCE)
to
provide
management
support
and
help
with
any
problems
that
may
emerge
at
the
preliminary
stage.
Home-­‐country
expatriates
(HCE)
are
simply
people
who
are
not
nationals
of
the
country
in
which
they
work
(Cateora
et
al,
2011,
p.
511).
In
the
case
of
Booster
Juice,
there
will
be
a
Canadian
relocating
to
England
to
help
and
support
initial
franchising
operations.
If
this
initial
franchise
expansion
proves
to
be
successful,
then
Booster
Juice
can
attract
more
international
developers
to
open
up
shop
in
the
rest
of
the
United
Kingdom.
Additionally,
given
initial
success,
the
English
franchises
can
increase
the
size
of
their
kiosks
to
further
develop
the
operation
and
attract
more
customers.
With
time,
these
franchises
will
better
understand
how
Booster
Juice
can
fully
integrate
and
adapt
to
the
British
lifestyle,
which
will
inform
the
expansion
strategy
into
the
rest
of
the
United
Kingdom.

31. Next
Destination
Mergers
31
Finally,
the
marketing
strategy
Booster
Juice
will
focus
on
is
tailoring
their
promotions
and
customizing
the
products
based
on
British
taste
and
values.
More
details
about
the
levels
of
standardization
and
adaptation
will
be
provided
in
the
strategic
orientation
section
and
more
on
promotions
can
be
found
within
the
marketing
mix
section.
When
it
comes
time
to
plan
further
operations
into
the
United
Kingdom,
the
company
will
conduct
market
research
profiling
British
consumer
attitudes
in
regards
to
Booster
Juice
expansion
into
the
UK
to
gain
a
deeper
understanding
of
local
consumers
wants
and
needs
in
regards
to
the
expansion
as
well
as
to
acquire
insight
into
where
Booster
Juice
should
develop
its
operations.
Strategic
Orientation
Once
the
best
mode
of
entry
has
been
chosen,
the
next
thing
to
tackle
is
strategic
orientation.
Specifically,
the
desired
scope
of
Booster
Juice’s
international
operations.
Next
Destination
Mergers
has
decided
the
waterfall
strategy
will
be
the
best
overall
strategy
for
Booster
Juice’s
expansion.
The
waterfall
strategy
occurs
when
the
firm
puts
all
of
its
available
resources
into
one
or
a
select
few
markets
(Cateora
et
al,
2011,
p.
311).
This
is
believed
to
be
the
company’s
best
option,
when
compared
to
the
sprinkler
strategy,
because
it
gives
Booster
Juice
time
to
truly
understand
the
English
market,
thus
it
is
more
likely
to
make
appropriate
adjustments
to
the
marketing
mix
to
satisfy
local
needs
and
wants
before
full
expansion
into
the
UK
(p.
312).

32. Next
Destination
Mergers
32
Moreover,
when
entering
London
and
eventually
the
rest
of
the
United
Kingdom,
it
is
important
for
Booster
Juice
to
determine
the
right
balance
between
standardization
and
adaptation
of
its
offerings.
In
regards
to
the
EPRG
framework,
the
company
will
achieve
this
balance
through
a
regional/global
market
orientation.
This
simply
means
that
there
are
aspects
of
the
marketing
planning
and
marketing
mix
that
are
standardized
however,
where
cultural
uniqueness
dictates
the
need
for
adaptation
of
the
product,
promotions,
image,
etcetera,
it
is
accommodated
(p.
25).
After
consulting
the
country
analysis
and
conducting
further
research,
it
was
decided
that
it
will
be
both
cost
and
culturally
effective
for
Booster
Juice
to
standardize
the
company’s
logo,
smoothie
and
juice
products,
cup
design
(including
the
bright
colours
and
font),
reusable
Booster
Juice
branded
mug
from
the
merchandise
store,
and
the
convenient,
grab
and
go
nature
of
the
Booster
Juice
experience
across
the
entire
United
Kingdom.
The
company
logo
and
cup
design
should
be
standardized
across
markets
because
Booster
Juice
wants
Canadian
tourists
to
recognize
its
brand
and
products
within
the
UK
market
while,
eventually,
getting
British
(Scottish
and
Irish)
tourists
to
recognize
the
brand
when
visiting
Canada
(See
Appendix
1,
Standardized
Booster
Juice
Logo).
The
smoothie
and
juice
products
will
be
standardized
because
it
is
both
a
cost
effective
strategy
and
some
fruit
that
may
seem
standard
in
North
America
is
considered
to
be
unique
in
the
UK,
such
as
cantaloupe.
The
reusable
Booster
Juice
mug
is
the
only
merchandise,
besides
the
smoothies
and
juices,
initially
coming
over
to
the
English
market
because
it
signifies
to
consumers
that
the
company
promotes
social
responsibility.
Moreover,
as
stated
under
environment
in
the

33. Next
Destination
Mergers
33
country
analysis,
one
in
four
UK
consumers
are
choosing
more
environmentally
friendly
products
despite
their
higher
price;
therefore
keeping
the
reusable
mug
is
a
strategic
inclusion.
As
well,
Next
Destination
Mergers
wants
Booster
Juice
to
standardize
the
company’s
convenient
nature
because
this
strategy
is
very
successful
in
the
North
American
market
and
research
indicates
the
same
for
the
United
Kingdom.
For
example,
a
survey
conducted
in
2013
on
British
fast-­‐food
consumption
found
that,
on
average,
Britons
spend
£110
on
fast-­‐food
every
month
(McCann,
2013).
The
study
indicates
that
because
the
British
spend
a
fair
amount
on
ready-­‐made
meals,
that
this
grab
and
go
culture
almost
dominates
their
eating
patterns
outside
of
the
home
(2013).
Moreover,
according
to
the
2008
British
Social
Attitudes
Survey
(BSAS),
Britons
are
increasingly
concerned
with
living
a
healthy
lifestyle
and
consuming
healthier
foods
(BSAS).
With
this
information
in
mind,
Booster
Juice
believes
that
customers
of
England,
and
later
the
entire
United
Kingdom,
will
see
Booster
Juice
as
a
healthy
alternative
within
the
booming
fast-­‐food
market
because
the
company’s
focus
on
providing
healthy
smoothies
that
are
plentiful
with
vitamins,
probiotics
and
protein
is
consistent
with
the
British
lifestyle,
according
to
the
information
given
in
the
BSAS
survey.
However,
because
the
UK
market
does
differ
from
the
Canadian
market
in
some
respects,
it
is
important
to
adapt
and
tailor
particular
aspects
of
the
franchise
to
fit
the
UK
market.
Therefore,
Next
Destination
Mergers
believes
it
would
be
cost
and
culturally
effective
to
adapt
the
material
of
the
cups
from
styrofoam
to
PETE
plastic,
the
kiosks
will
have
the
same
bright
yellow/pink/purple
colours
but
the
rest
will
be
a
darkly
stained
wood

34. Next
Destination
Mergers
34
bar
(very
modern
and
sleek)
with
phone
charging
stations,
remove
all
food
items
from
the
menu
and
other
associated
merchandise
(hats,
frisbees,
etcetera.),
offer
only
one
size
as
opposed
to
a
regular
and
snack,
and
tailor
the
promotional
strategy
to
the
UK
market.
Although
the
company
will
use
the
same
design
of
cups,
the
material
will
be
modified
from
styrofoam
to
PETE
plastic
because
it
is
recyclable.
This
adaptation
is
beneficial
for
both
the
company
and
local
consumers
because
more
and
more
UK
consumers
prefer
eco-­‐
friendly
products
(“Retail
Gazette”,
2013)
and,
because
plastic
cups
keep
consumers
happy,
it
pushes
them
through
the
Booster
Juice
door,
which
generates
revenue
for
the
company.
Next
Destination
Mergers
wants
to
adapt
the
kiosk
to
be
more
sleek
and
modern
(decorated
with
a
dark
wood
counter
and
a
few
wooden
stools),
when
compared
to
the
kiosks
in
North
America,
because
Booster
Juice
is
targeting
active,
hipster-­‐esque,
urban-­‐chic
consumers
with
its
products
in
the
UK.
The
phone
charging
station
is
added
because,
as
stated
under
the
technological
environment
in
the
country
analysis,
76%
of
Britons
have
smartphones
and
having
this
will
attract
more
consumers
to
the
business
and
will
also
keep
customers
happy.
As
well,
all
food
items
and
additional
merchandise,
except
the
reusable
mugs,
will
be
initially
removed
from
the
Booster
Juice
franchises
across
the
UK
because
it
will
be
cost
effective
for
the
company
to
stop
their
production.
Furthermore,
because
Booster
Juice
is
not
yet
well
recognized
within
the
UK,
Next
Destination
Mergers
wants
all
focus
on
the
delicious
smoothies
and
fresh-­‐squeezed
juices
because
it
will
appeal
to
health-­‐conscious
consumers.
The
company
is
also
removing
the
choice
between
regular
and
snack
size
and
offering
only

35. Next
Destination
Mergers
35
one
size
because
it
will
help
the
company
to
save
for
fruit
import
and
storage
costs.
Finally,
it
is
crucial
for
all
promotions
to
be
fairly
adaptive
when
moving
into
the
UK
because,
for
example,
there
are
a
few
strong
competitors
(as
opposed
to
only
one
competitor
existing
in
Canada)
in
this
market,
so
promotions
will
have
to
be
altered
to
stand
out
and
grab
the
attention
of
consumers.
Key
Objectives
&
Limitations
of
Expansion
into
England
There
are
many
variables
to
consider
when
entering
an
international
market.
For
example,
it
is
challenging
for
a
niche
business
to
compete
in
a
foreign
environment
that
has
already
been
influenced
by
other
competitors,
such
as
Boost
Juice
and
Fuel
Juice
Bars.
Nevertheless,
Booster
Juice
does
have
key
objectives
that
it
plans
to
achieve
upon
penetration
of
the
UK
market.
Because
Booster
Juice
places
high
value
on
their
fresh,
organic
juice
and
smoothies
and
lives
by
its
slogan
“squeeze
more
out
of
life,”
its
first
main
objective
is
to
make
healthy
eating
fun
and
enjoyable
for
people
all
over
the
world.
The
company
can
achieve
this
objective
because
they
are
setting
up
a
juice
bar
in
a
market
where
86%
of
British
adults
consider
healthy
eating
to
be
of
high
importance.
The
second
objective
is
to
gain
brand
awareness
for
Booster
Juice
in
the
new
market
for
the
first
year,
before
expanding
to
the
rest
of
the
UK.
As
a
Canadian
specialty
juice
brand
entering
an
urban
and
trendy
market,
it
is
necessary
to
emphasize
the
juice
and
smoothies
as
a
high
quality,
reasonably
priced,
“Made
in
Canada”
brand.
Focusing
on
the
“Made
in
Canada”
aspect
will
be
useful
for
Booster
Juice
because
it
will
work
to
attract
customers
due

36. Next
Destination
Mergers
36
to
Canada
having
a
highly
favorable
country
image
within
the
UK.
In
addition,
seeking
75%
customer
satisfaction
within
the
first
year
of
expansion
is
a
realistic
goal
for
the
firm
and
this
will
be
determined
through
online
and
in-­‐person
customer
surveys.
By
the
end
of
2016,
the
third
objective
is
for
Booster
Juice
to
analyze
their
success
with
the
London
kiosks
and
decide
from
there
if
the
company
wishes
to
expand
further
into
the
United
Kingdom
in
the
long
term.
If
both
of
the
above
objectives
are
met
and
Booster
Juice
is
making
a
moderate
to
good
profit
margin,
then
the
plan
is
to
open
more
franchises
in
the
largest
cities
across
the
UK.
Nevertheless,
there
are
still
some
limitations
that
must
be
considered
as
they
have
the
potential
to
disrupt
Booster
Juice’s
expansion
into
the
United
Kingdom.
The
first
limitation
is
that
there
is
absolutely
no
guarantee
that
people
will
accept
the
new
Booster
Juice
brand,
as
there
are
already
two
established
smoothie
bars,
Boost
Juice
and
Fuel
Juice
Bars,
penetrating
the
UK
market.
For
example,
Boost
Juice
has
over
30
locations
within
the
United
Kingdom
currently
(“Boost
Australia”,
2016).
Therefore,
will
be
challenging
for
Booster
Juice
to
assert
dominance
as
Boost
Juice
already
has
established
infrastructure
and
customer
loyalty.
Due
to
strong
competition,
it
is
imperative
for
Booster
Juice
to
develop
a
great
marketing
campaign
that
will
prove
to
the
Brits
that
they
are
a
juice
and
smoothie
brand
they
can
trust.
Moreover,
it
is
vital
for
Booster
Juice
to
differentiate
themselves
in
this
niche
market.