The Pakistan is one of the developing nations in the world, which is often associated with political turmoil and controversies. However, despite of presence of turmoil and political disputes, the nation has still been able to maintain a slow but consistent growth in its GDP (purchasing power parity) over the past years (CIA, 2016). As a result it offers an opportunity to new business growth. The fast food sector in Pakistan can prove to be quite lucrative, due to the rapid increase in the need for healthy fast food products (Ahmed, 2015). Thus, it has been proposed to Red Rooster, an Australian fast food chain, to enter into the Pakistan market. The fast food consumption has shown a rapid increase among the younger section of the population (Qasmi et al, 2014). This behavioural trend can be leveraged by the company to increase its sales volume and brand image.
This section covers the different aspects of market analysis.
The report of Ali (2014) has indicated that the fast food sector of Pakistan is the second largest industry in the country and contributes to a significant portion of the national income. This industry accounts for 16% of the national employment and caters to a total of 169 million consumers. It has been also mentioned that this sector has shown a rapid growth over the years accounting to 20% each year. This as a result suggests that it can be a lucrative area of business in Pakistan.
The target population of the fast food sector in Pakistan mostly consists of the younger generation. As mentioned in the studies of Awaan and Nawaz (2015) the fast food is mostly favoured by the age group of 18-30 years. The consumers belonging to the age range of 31-40 years have also shown significant attraction towards fast food products. This section of the population chooses fast food products mostly for the convenience of consumption.
The fast food sector in Pakistan is characterised by the presence of several well established fast food brands like AFC, Pizza Hut, KFC, McDonald’s etc (Riaz, Wahla and Naseem, 2011). These brands can pose as barrier to entry for a new fast food company in the market like Red Rooster.
The market drivers are the factors that favour the entry of a company in a market. The political environment of Pakistan is characterised by internal conflict and unfavourable relations with several other nations. However, as mentioned by Ali (2013) the relationship between Australia and Pakistan is relatively favourable with prominent absence of any political issues or turmoil. Thus, Red Rooster should seamlessly be able to enter in the Pakistan fast food sector.
This section covers the details of the analysis of the organisation Red Rooster and the potential customers and their behaviour.
The key occupants of this segment belong to the young and middle aged people, who show an increased attraction towards fast food products. The majority of the customers of Red Rooster belong to the younger section of the population, as they seek convenience and good taste (refer to appendix). The key benefits sought by the customers are mostly on the grounds of food quality, and good service quality. The key factors that influence the demand of fast food products offered by Red Rooster is the changes in the daily lifestyle of the customers. The younger section of the society lead a busy and hectic life, which compels them to choose food products that can be easily procured and consumed. Red Rooster offers good quality fast food products that are not only affordable but also of good quality (refer to appendix). The fast delivery service that leads to small lead time is the key service factor preferred by the customers. The purchase decision of the customers is mostly influenced by the brand image of the company and the affordable nature of the products. The process of purchase is mostly conducted by visiting the outlet or by availing the service of home delivery (refer to appendix). The fast service of the company ensures that the customers do not have to wait longer to get their order. The products offered by Red Rooster ensure that they are aligned with the existing consumption trend of the customers, thereby making it easier for them to make their purchase decision.
The marketing mix of the company has been covered in this section.
Product: The products of Red Rooster are mostly chicken based items. The brand is best known for its roasted chicken products, pies, burgers, etc. All of the product offerings of Red Rooster fall under the fast food category, as they can be consumed quickly and with high convenience.
Price: The price of the products offered by Red Rooster is quite affordable and is relatively less as compared to that of the well established global brands. The company seeks to attract the customers and build a strong brand preference by adopting the competitive pricing strategy.
Place: The company currently operates only within the Australian market in around 360 locations (Red Rooster, 2016b). It caters to the target customers through its outlets and though its home delivery service. It is proposed to the company that it should open its outlet in Islamabad, which is the capital city of Pakistan. The high population and relatively modernised lifestyle in this location can prove to be lucrative for the company.