Bmk 372 - International Marketing Strategy

BMK 372 - International Marketing Strategy

Ruth's Chris Steak House Case

The first key international marketing issue is beef consumption rate per capita. In the case, it is enumerated that the average for developed countries is 93.5. We thus try to aim at an average of per capita consumption equal or higher than that. The second key marketing issue is to analyse if it is legal to import American beef into that market. Ruth's Chris main attribute s their utilisation of only USDA prime beef. Therefore the market that will be chosen has to have an open regulation towards the import of this kind of meat. Also, another main characteristic of this market is the propensity to which locals go out to dinner. If the rate is too low. there is no real point in developing a restaurant there. Another important marketing aspect that need to be analysed is the urbanization rate of the country. It is in the companies and franchisee's interest to develop into a highly urbanized area of a densely populated country so that they have the possibility of developing several restaurants. Finally. the last criteria that needs to be looked at is the degree to which there is high quantity of disposable income in the urban sections of the country.

The basic problem of Ruth's Chris Steak House is to select the best possible market for an international market development. Of course the criteria developed in the marketing issues as well as some other macro characteristics will determine which country we will select.

A SWOT analysis is mandatory in order to accurately evaluate the company's situation. Such analysis follows:

The solutions are as follow:

* Bahamas: We selected Bahamas as a primary possibility due to their extremely high rate of beef consumption per capita. Indeed, this rate of 123.6 is the second highest after the USA. Yet, we believe that it would only be a seasonal opportunity for the company to open a restaurant in such location. Furthermore, the demographics s not big enough to sustain the opening of multiple restaurants. Also. we believe that the high rate of consumption is probably due mainly to American tourists and do not think that locals can sustain such a rate when the restaurant charges 70USD for a main course and entree. The Bahamas also accepts all agricultural foods and products.

* Argentina: This country has a big per capita beef consumption of 97.6kg/yr added to a high urbanization rate of 90% makes it an ideal destination for international development. They also have a good per capita income necessary to be able to afford fine dining as well as having a culture of out-going. restaurant-consumption and American brand acceptance. Furthermore it is legal to import American beef