CLC Module 6.1.3 - MARKET ENTRY SUCCESS Market Entry...

MARKET ENTRY SUCCESS
Market Entry Success
Red Group
Grand Canyon University: MKT660
March 23, 2016

MARKET ENTRY SUCCESS
Introduction
Market Entry Success and Product Identification: Market entry is the efforts to sell new
and/or pre-existing products to a consumer segment which were not been targeted earlier. In
simple terms to enter into a new market and to sell your pre-existing products or new products
aligned according to the target market is known as market entry. To enter into a new market a
company has to strategize innovative ideas, or partner with another company which is already in
that market, expand its current distribution channel, with cooperation with other businesses
through Virtual Corporation where both the companies combine their skills and assets to
accomplish the shared goal. There are barriers for market entry which can be cited as, existent
competitors, patented technology, and large capital outlays along with economic and political
conditions. However, to succeed among all these adverse environment is known as market entry
success. E.g. The entry of Kentucky Fried Chicken (KFC) Some of the drivers for successful
market entry are early entry into the market, greater control of entry mode, and shorter cultural
and economic distances between the home and the host countries [Joh08].
Kentucky Fried Chicken’s Market Entry to India
KFC (Kentucky Fried Chicken) is a global fast food restaurant chain, with headquarters
in Louisville, KY with 18,875 outlets in 118 countries across the globe, with the annual revenue
of $23 billion dollar. The most popular products of KFC are fried chicken, chicken sandwiches,
wraps, French fries, soft drinks, salads, desserts, and breakfast serving around 12 million
customers every day [KFC]. KFC entered the Indian market after the liberalization of
government policy of India, on June 1996 by targeting upper middle class starting with 30 outlets
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MARKET ENTRY SUCCESS
across the country. The most differentiated and demanded products of KFC in India are fried
chicken and vegetable menu since 42% of Indian households are vegetarian [Sar14].