Popularity ON THE Red Rooster Business Business Essay

Red Rooster is popular all across Australia for their oven-roasted chicken which includes been marinated for about 12 hours. There key to superiority is development in their quality recipes and they are making more additions with their menu as they continue evolving their selection of menu to meet the varying tastes of the broad customer support like the newly added grilled, pores and skin free Portuguese hen pieces.

In the entire year 1972 Red Rooster was proven the Kailis family in Western Australia. Since that time it has extended to develop, offering franchisees. The franchisees are receiving an iconic brand along with well toned business and support systems.

Red Rooster acquired the best Rooster string in 1992, which operated mostly in Queensland. The stores thus acquired were re-branded as Red Rooster stores, which increased the full total amount of Red Rooster retailers to 230 throughout Australia.

Australian Fast Foods which is based in Perth purchased Red Rooster in 2002 from Coles Myer Ltd, and therefore brought along with them their own long periods of experience in roasted chicken breast segment of fast food industry.

Red Rooster now has more than 360 stores with a labor force of almost 5000 employees. Aside from its long-established recipes of roast A-grade fresh chicken breast and very popular chips. Red Rooster offers healthy baguettes and salads, along with scrumptious burgers and wraps.

Red Rooster provides its franchisees with a recipe for a successful relationship their incessant novelty in product development and marketing strategy makes a Red Rooster franchise an extremely profitable collaboration for both parties.

External Analysis:

Economic Trends and Issues:

India is the second largest economy on the planet in conditions of growth and it is the fourth greatest economy in the world. India has a swiftly growing middle income human population and their lifestyle is changing. India has a fast grocery store which is growing at a remarkable rate greater than any country on the planet. The junk food market in India is growing at the pace of around 30-35% time on year. Most of the major junk food brands have previously made inroads into the Indian fast food market and they are also showing substantive growth.

Most of the major brands have made considerable plans to broaden all across the country as they have observed huge opportunity which need to be tapped. Domino's has come up with a plan to start almost 60 to 65 every year as part of their strategy for 2012 to 2010. In the same way Yum foods which has the KFC brand is looking to open up around 1000 stores by the year 2015.

Socio-Cultural Movements and Issues:

The Indian cultural culture helps bring about eating and snacking in a significant way. It really is a way of socializing in India. Hence we see the phenomenal development in the fast food industry as mentioned above. This is the reason that the major junk food brands have quickly set up themselves in the Indian market. First there have been only local players which acquired restaurants and offered Indian snack foods to the clients. While using influx of overseas brands the customers found the different taste of these recipes a pleasant change.

Even the top brands had to face a significant competition from the local brands as they realized the neighborhood market and flavor well. But with time the foreign brands had to change and adapt their products in line with the local preference, and after a big change in their meals they were able to capture the local tastes.

Industry Examination:

Porters 5 drive analysis:

Threat of bargaining electric power of customers:

Profit of red rooster restaurant is determined by the amount of customers. In Indian market, as a result of presence of other companies like Mc Donald's, KFC and other junk food companies, it offers the customer many choices and thus raises their bargaining ability.

Threat of bargaining vitality of company:

Red Rooster has less bargaining power in the Indian market because of the presence of various other restaurants on the market. Red rooster can increase its bargaining electricity by keeping its uniqueness of the merchandise.

Threat of alternative products:

In the Indian market there a wide range of rivals which can replace fowl product. The major competitors for red rooster are KFC, McDonald and other junk food restaurants. But nonetheless many of these have different most important products.

Threat of new entrant:

It is not hard for just about any restaurant to type in to Indian market but it is difficult to support and earn earnings because of high competition. Red rooster loss the first mover gain as there are other competitors like KFC, already create on the market. But with its brand name, reputation and uniqueness it can capture the marketplace.

Competitive rivalry within industry:

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 principal product of red rooster differs from these competition and other junk food restaurants on the market.

Red Rooster SWOT Examination:

Internal Research:


Red Rooster's main strengths is its unique menu to marinate the Chicken breast for more than 12 time and then roast it in the range. The unique blend of Mediterranean herbs make the preference very unique that your competitors obviously havent been able correspond over the years. The business can pass on its unique dishes with their franchisee in India in order that they may also supply the same unique preference with their customers.

After its 1992 acquisition of Big Rooster outlets in Australia, Red Rooster has become an expert in the franchisee business model. It is aimed at a 50:50 mixture of company possessed as well as franchisee outlets as it grows to 600 shops across Australia. So when the business starts expanding into India the business can have a minimal quantity of company owned outlets and the rest of the outlet stores can be franchisee based mostly.

Red Rooster's constant innovation in its quality recipes has helped the company in adding new preferences and items to its menu. This would go to show that the business is constantly endeavoring to cater to the varying style of its large customer foundation. This will be very useful when the company expands into a country like India where in fact the tastes are very different from that of Australia. Hence the capability to innovate and adapt to the local taste will help the company.

A market innovator in Australian roast hen market, a recognised brand name and the business's ability to provide training to its franchisees can help the company to determine itself in the Indian market.


While other rivals like KFC, McDonald's and Subway located in USA are broadening phenomenally always looking for newer opportunity in newer countries Red Rooster has been a bit slack in this area. The company must have been a little more intense at least in its growth strategies in Australia. As a result it includes lost a first mover advantages in markets like India.

Since it hasn't expanded into any countries Red Rooster might face a paucity of experience in broadening into newer marketplaces. The Indian market is very volatile and incredibly unstable hence no adequate experience in widening in to new country might become a major weakness for Red Rooster.

The tastes of the customers in both markets namely Australia and India are extremely different hence this may again be considered a weakness due to insufficient experience.

Even the marketing strategies will be very different in India as compared to that in Australia so Red Rooster will also have to conquer this. Again a lack of experience will establish a weakness for the company.


India has a huge population which contains children which is either learning or doing work for MNCs. This presents a huge market opportunity for Red Rooster which it can tap with proper strategy. A major portion of the urban human population in India contains upwardly mobile middle income which includes increasing purchasing electricity parity and is willing to invest. Red Rooster can very well tap this portion.

The existence of restaurant chains like KFC, McDonald's, Domino's, Subway etc has recently trained the Indian customer regarding the various preferences from other countries. So Red Rooster will not have to educate the Indian customer about the idea of specialty chain restaurants. All it needs to do is to advertise its product properly.

With its wide range of specific recipes which has its unique flavor Red Rooster has a great opportunity to make its products popular in the Indian market which is constantly looking for newer likes and is ready to experiment.

Also a higher penetration of television and mobile in India brings huge chance for Red Rooster to educate the customers about its products. The business can easily record its prospects attention with an effective mix of interesting formulas and discount offers etc. The company can use a variety of communication mass media to spread the term and create a excitement around its products.


The major hazard for Red Rooster getting into India originates from its own insufficient experience of growing into new countries or having businesses outside Australia. For this reason insufficient experience it could end up losing profits but apart from that it could not be able to make a good first impression amidst its prospects.

The existence of major brands like KFC, McDonald's, Subway, Domino's etc that are world leaders in the junk food industry will also be a major hazard. These brands are already more developed in the Indian market and are extremely popular. The Indian customers have accepted them over time as they have customized their menus and recipes as per their preferences. Hence it'll be very difficult to help make the customers transfer from the founded brands to a new less popular brand like Red Rooster.

The Indian market is very available to new businesses and the regulations on foreign ventures of the Indian federal are incredibly friendly towards the companies but these guidelines might change with a big change of administration and it might enhance the risks that Red Rooster might face.

Off late there has been a major emphasis on the nutritional principles of the meals and the junk food companies are the major targets of such a advertising campaign. Hence Red Rooster will also need to face this obstacle which the aware Indian customer will create for the company.

A major part of the Indian customers are vegetarian in aspect and Red Rooster's niche lies in roasted chicken hence this may also present a risk from the neighborhood vegetarian activist categories.

Various Departments of Red Rooster in India:

Area Manager:

The role of area administrator is to control the amount of restaurants effectively. It is a leadership role which involves taking care of the perfect balance between the team, shareholders, customers and sales in order to enhance the performance of the business enterprise. He is also necessary to direct and coach the General Supervisor of the restaurant.

Business Development Team:

This section works in four main areas; construction and design of stores, planning network, store management and acquisition. It is also responsible for maintaining the high requirements of comfort, convenience and safeness in every the red rooster restaurants.

Finance Office:

It is accountable for managing the money effectively. It includes a team which will keep accurate records of most business deals through well-timed and accurate accounting. This may include managing the money, paying employees, paying or billing to the suppliers, paying to the commercial team to be able to achieve the planned path for the business.

Human Resource Office:

This office is in charge of recruiting, training and developing a suitable applicant for a particular job. As for the red rooster, the business relates to provide the good customer service so selecting right people for right job is of great importance.

Operations Section:

Its function is to make certain that appearance of all red rooster restaurants should be good, proper training should be given to all the employees and all employees are motivated. The merchandise quality is retained and offered in a fresh environment.

Marketing Team:

The marketing office is accountable for figuring out the needs of customers and provides a suitable strategy so as to achieve those needs. As red rooster is new product in Indian market, this team has to find out the preferred tastes of locals and prepared the merchandise accordingly.

Competitor's Evaluation:

The major competitors in the Indian fast food market are as follows:

Kentucky Fried Chicken



Pizza Hut

Yum Foods

Cafe Coffee Day


Costa Coffee

These are a few of the major international brands that have captured the bulk of market share in the prepared fast food section in India. Apart from these there are other players that happen to be private chains and family managed businesses which make in the unorganized segment of this sector. The unorganized sector leads the market share as they may have the maximum presence throughout the country. This is major due to the fact that the top brands haven't been able to touch the Indian junk food market completely.

The major talents of these players which already are within the Indian market is that they have very well understood the Indian market and also have adapted their products as well as their strategies according to the style of the Indian consumer. They are popular brands in the Indian market and the Indian consumer has adopted them as their own.

So for Red Rooster establishing itself is a major problem as it is a lesser known brand. Another major problem would be that red Rooster does not have any experience functioning outside Australia. Hence the business should turn to addresses both these issues only then it'll be in a position to get a foot hold in the competitive Indian fast food market.


Research: Before stepping into the Indian fast food market, Red Rooster should first execute a proper research of the conditions of the country. This research should take into consideration the economic, political, interpersonal and demographical aspects of the country. The goal of the research ought to be to analyze entrance and exit barriers and barriers to growth if any.

Partnership: The next step for Red Rooster is always to see when there is an opportunity for it to partner with a local partner in the united states. The others have entered the country either through their father or mother companies like Pizza Hut which belongs to Pepsico which includes already been functioning in India for many years now and has a good knowledge of the Indian market, or they may have partnered with a local company. Red Rooster can choose a local spouse to collaborate which can only help them give attention to their products while the partner may take on the duty of marketing it.

Business Model: Red Rooster also needs to work out the program as to what will be an improved strategy of growth will it be the Franchisee model or the retailers must be managed by the business. The business should first commence with company held shops and after it includes gained proper foot hold on the market and after it is becoming an established brand should it go for the franchisee model.

Workforce: THE BUSINESS should also look to acquire proper skill in their labor force that could help them in obtaining a smooth entry into the Indian market. This labor force might contain of a few upper level management a majority of middle level and low level management which can be of Indian origin in order that they may understand the Indian conditions well and make the strategies which can only help Red Rooster in attaining its goal.

Adaptation: Red rooster should turn to change its menu to match the local taste. For this again the company must depend on a trusted research team which will help the company to find out the type of tastes will work with the Indian customers well.


The junk food market in India is innovating at an extremely fast pave and it reveals a great opportunity for all the brands which are prepared to extract meaningful results from it. The brands like McDonald's, Domino's, KFC etc are carrying out very well in the Indian environment even though that they had to tweak their menus a bit to suit the flavour of Indian consumer. India has become one of the key markets for each one of these brands which are extremely well established in the global market.

Similarly with some tweaking in its menu even Red Rooster will be able to find a fit in the Indian fast food market. All it requires is an excellent team which will make a good strategy. It will help if Red Rooster could find a strategic spouse which comprehends and has handled in the Indian junk food market domain name. A strategic spouse like Nirula's in India is a very good option. But Red Rooster must evaluate a great many other options before opting for one.

It will be a great decision for Red Rooster to expand into a fast growing current economic climate like India. But to do this the company should prepare yourself beforehand. It should do all its home work, in the shape of research work, finding a team of well experienced workforce, look for the best collaboration opportunities and then chalk out a plan with short-term, midterm and long term goals. Only then it'll be successful in the ever before volatile and ever changing markets like India.

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