Market Entry in Pakistan Fast Food Sector: Red Rooster

Entering into a new market is often considered as one of the key opportunities for organic expansion. The objective of the study is to conduct internal and external assessment of red Rooster, Australian company, to suggest its entry in the Pakistan market. The studies have suggested that the political and economic environment of the nation suggests a slow paced growth, which may not be a suitable market for prospective entry. However, the high demand of the fast food products in Pakistan suggests that the company should be able to foster long term success in the market. Thus, it has been concluded that Red Rooster should be able to leverage the market trend and the slow but gradual economic development to foster long term success.
1.0 Introduction
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.
2.0 Market Analysis
This section covers the different aspects of market analysis.
2.1 Size of the market and growth rates
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.
2.2 Population
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.
2.3 Market Barriers and Market Drivers
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.


Market Entry in Pakistan Fast Food Sector: Red Rooster

Type: Report
Domain: Industry Analysis
Words: 2500
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