Market Entrance Papa John's Brazil

Executive Summary

        This report will discuss the potential market entry of Papa John’s International Inc. into the rapidly booming and emerging economy of Brazil. First, the host country Brazil will be evaluated in depth based on its economical, ethical, cultural, political, and legal situation. This is to give to an overall idea of what the positive aspects of the Brazilian market currently are that make it a desirable area to invest in, and what challenges it still needs to overcome in the future.

A coherent analysis of Papa John’s strategy will then be given. This will include a financial analysis of Papa John’s, based largely on its third quarter report from 2011.

Furthermore, Pizza Hut and Domino’s, which would be Papa John’s major competitors upon entry to Brazil, will be clearly described in relation to Papa John’s. Following this, franchising will be recommended as the mode of entry into the market, along with the transnational strategy of internationalization, since Papa John’s has had experience with these strategies in the past. Lastly, some of Papa John’s corporate social responsibility activities both internationally and domestically will be mentioned, in order to show how Papa John’s values its customers above all. Then, based on all the information given, recommendations will be given to the board of directors of Papa John’s that proves that opening a franchise in Brazil will be a profitable venture.

Introduction

Papa John’s International Inc., a pizza company, was founded in 1983 in Jeffersonville, Indiana by John Schnatter. The company has grown and expanded; now owning or franchising over 3,500 restaurants across the United States and in 29 countries worldwide.1 Overall revenue in 2010 was $273.1 million 2 making it the third largest pizza company in the world. Furthermore, “domestic and international franchised unit expansion is expected to continue with an emphasis on markets in the Americas, the United Kingdom, the Middle East and Asia” 3 proving that Papa John’s still has a lot of potential to grow.