Most of these major brands have made massive plans to expand all across the country as they have seen huge opportunity which need to be tapped. Domino’s has come up with a plan to open almost 60 to 65 every year as a part of their strategy for 2012 to 2010. Similarly Yum foods which owns the KFC brand is looking to open around 1000 outlets by the year 2015. (Business franchise, Cover Story, Oct 2007)
The Indian social culture promotes eating and snacking in a major way. It is a way of socializing in India. Hence we see the phenomenal growth in the fast food industry as mentioned above. This is the reason that the major fast food brands have very easily established themselves in the Indian market. Initially there were only local players which had restaurants and served Indian snacks to the customers. With the influx of foreign brands the customers found the different taste of their recipes a welcome change.
Even the big brands had to face a major competition from the local brands as they understood the local market and tastes well. But with time the foreign brands had to change and adapt their products according to the local taste, and after a change in their recipes they were able to capture the local tastes. (Business Franchise, cover story, 0ct 2007)
Profit of red rooster restaurant depends on the number of customers. In Indian market, because of the presence of other companies like Mc Donald’s, KFC and other fast food companies, it gives the customer many options and thus increases their bargaining power.
Red Rooster has less bargaining power in the Indian market because of the presence of various other restaurants in the market. Red rooster can increase its bargaining power by maintaining its uniqueness of the product.
In the Indian market there are many competitors which can substitute chicken product. The major competitors for red rooster are KFC, McDonald and other fast food restaurants. But still all of these have different primary products.
It is easy for any restaurant to enter in to Indian market but it is difficult to sustain and earn profit because of high competition. Red rooster loss the first mover advantage as there are other competitors like KFC, already establish in the market. But with its brand name, reputation and uniqueness it can capture the market.
In Indian market, the red rooster has rivalry with the brand competitors like KFC and Mc Donald’s. But this rivalry is very less because the primary product of red rooste
