Which global markets are ripe for quick-serve expansion in the next decade? Here’s a clue” Think emerging.
According to Dr. Ilon Alon, Ph.D., Associate Professor of International Business at the Crummer Graduate School of Business at Rollins College, 80 percent of the world’s population lives in so-called emerging markets. And, as he writes at www.franchise-chat.com, the U.S. Department of Commerce estimates that more than 75 percent of the expected growth in world trade over the next 20 years “will come from developing countries, particularly big emerging markets€?
But where are these markets?QSR Magazine
Ron Paul, an analyst at Technomic in Chicago, says the No. 2 hamburger chain (behind McDonald’s) saw sales grow 14 percent in January. In October, same-store sales were up 6.9 percent, compared with last year. In November, they were up 9.1 percent, and in December, 13.1 percent. Despite the closings of hundreds of stores due to bankruptcy, Paul says, “They appear to definitely be in recovery mode. Their poor times are behind them, and they’re hitting on all eight cylinders.”
Ad Week
Food makers and their suppliers will be wise to continue their drive into Asian markets, with a new report revealing the region will grow to achieve a 41 per cent slice of the global food retail market in 2020, a leap from 33 per cent in 2003.
Food Navigator
The first thing Dietrich Mateschitz did before launching Red Bull was to ignore the focus groups, reports Kerry A. Dolan in Forbes (5/28/05). “People didn’t believe the taste, the logo, the brand name,” he says. “I’d never before experienced such a disaster.” But like a true marketing hero he went ahead anyway, opened up offices just outside Salzburg, and deployed a six-person sales force to “retail outlets and bars across Australia.” Today, Red Bull, redbull.com, is a raging success: “In some countries (it) commands an 80 percent market share. In the U.S., where Red Bull enjoys a 47 percent share of the energy drink market, sales are growing at a 40 percent clip. Last year it sold 700 million cans in the U.S.; this year it hopes to sell 1 billion.” Yes, the brand’s U.S. market share has fallen some over the years, but there’s no denying that Dietrich Mateschitz created what is now a $1.7 billion category.
there is a widely held belief, especially among top management, that marketing is nothing but common sense. And nothing is more common among CEOs than the belief that they have a full deck of common sense. Read the rest of this entry »
