Market Entry Strategy: Identifying New Opportunities in the Market for a Fast Food Restaurant Client
Fast Food Restaurants Industry in the US
Over the last five years, the global fast food restaurants industry has expanded despite varying consumer tastes and a recovering global economy. As disposable income rose during the period, customers increased their spend on luxuries, such as eating out. Additionally, fast food operators outperformed full-service restaurants during this period, as many consumers capitalized on the availability of lower-priced and convenient food choices. But like every other industry, the fast food restaurants industry is not free of setbacks and challenges. Let’s glance at a few of them here to see the bigger picture of the hindrances awaiting companies operating in this industry:
- Healthier lifestyle – The healthy eating index is expected to remain steady in 2019, as customers become more aware of issues related to weight and obesity, fatty-food intake, and food safety concerns. This factor particularly affects the growth of meat and grease heavy fast food restaurants.
- Shifting consumer choices – Industry growth is sensitive to changes in consumer spending. However, when personal consumption expenditure is high, customers are more likely to spend money on eating out at healthy fast food restaurants.
Choosing the Best Market Entry Strategy for Businesses
An organization will usually foray into a new market after it has conducted a thorough market research, analyzed the existing market conditions, and estimated its impact on their business and overall revenue. To enter a fresh market, businesses must have a well-thought market entry strategy in place. Here are a few steps you can follow to build a winning market entry strategy and start expanding their businesses into previously unknown territories.
- Set clear goals – Be precise about what you want to accomplish in your new market.
- Research your market – When getting to know your market, it’s essential that you learn about it in every dimension, not just business-wise but also socially, culturally, and politically.
- Study the competition – A thorough competitive analysis based on your research and visits to the target market will help you make key decisions.
- Figure out your financing needs – Discover if you’ll need to get any financing to support your export venture.
After the strategy has been developed and the segments and customers have been defined, the business must undertake concept development and testing with the consumers to ensure effective strategy and brand positioning.
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