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CONTENTS
……………………………………………
INTRODUCTION ……..………………………………..2
The current market trend of Russia……………………………………….2
Execution of Marketing Strategies………………………………………………6
Introduction
The objective of this report is to assess the current fast food franchise market in Russia, such as current competition and other constrain for the expansion, the balance between franchise or wholly owned outlets, and resources required to deploy to open at least 20 outlets of McDonald by 2009.
The current market trend of Russia
It is difficult to assess precisely the current volume of franchising and its future growth, unlike the west world where viable method of tracking market trends using statistical methods, due to peculiarities of local legislation regulating this sector in Russia, there is no definitive source for market statistics. Franchise relationships are registered under various legal forms, such as a licensing agreement or a sales contract, so it is impossible to distinguish franchise deals from other transactions in the records of the State Registration Chamber – the main source of statistical data on the Russian market.
Franchising as a business model first came to Russia in the early 1990’s, introduced by foreign franchisors. Among the franchise pioneers were such well-known American brands like Pizza-Hut, Baskin Robbins, Dunkin Donuts, KFC, Subway, Alphagraphics as well as Mcdonlds. The second wave of market entries started in the beginning of the new millennium, when the economic reforms initiated by a new governmental administration led to gradual improvement of the business environment, and Russia joined the list of the world’s fast-growing economies.
According to data released by NewbridgeGroup.ru, out of 165 franchise concepts currently present in the market, 68% have been established domestically, 20% have been brought to Russia by European franchisors,