Consider a fast-food chain going into Russia. Decide on your initial level of de

Question

Consider a fast-food chain going into Russia. Decide on your initial level of desired involvement in Russia and your entry strategy. Discuss problem areas and your recommendations to the fast-food chain company as to how to control potenti
Consider a fast-food chain going into Russia. Decide on your initial level of desired involvement in Russia and your entry strategy. Discuss problem areas and your recommendations to the fast-food chain company as to how to control potenti
Consider a fast-food chain going into Russia. Decide on your initial level of desired involvement in Russia and your entry strategy. Discuss problem areas and your recommendations to the fast-food chain company as to how to control potenti

Explanation / Answer

Russia is gradually becoming the favorite market for American fast food and Mcdonald, Burger King, Dominos etc have already established themselves in Russian market.There is vast potential of American fastfood in Russia now also.Initial level of desired involvement will be to establish some resturant in 3 to 4 prominent places and locality in Russia as a test market for the fast food chain.The restaurants should be open in main hart of the city where crowd gather in mass level like prominent shopping mall, famous fastfood localities etc so that it can catch the attention of the foodie initially.It is important to get noticed by the food lovers initially because if they will be satisfied with the taste of the food then they will recommend to their friends and relatives.Initially the company should invite blogger, influencer and food enthusiasist to taste the food so they can share their experience with others.

We have also seen that in restaurant industry mouth advertising play a crucial role in attracting customers and the infuencial bloggers and food lovers who write about food also influnce the decison of customers.When the company will make a mark of its food it can gradually start advertising and promotion in small level and then try to penetrate more in the market by expansion to suburban areas too.Russia has a population of 144 millions which means there is immense market based and generally population of Russia is broad-based, young and not picky.

Problem areas will not be much more thanks to the goodwill and sound image reposed by other American fast-food chain in Russian market.Regulation in Russia is not tight as USA, enforcement of labor standards is lax , market is though standardised but not organized.Language will be one of the important barrier which can be addressed by learning Russian language,culture and society play important role in food habits of people so the incumbent company has to learn the culture, customs and habit of Russia and how these factors influnce there food habits.

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