- •«Introduction of wok to walk to the russian market»
- •Introduction
- •Product description and selection of the market Product Description
- •Market Selection
- •Political factors:
- •Political stability
- •Economic factors
- •Social factors
- •Technological factors
- •Infrastructure and location
- •Other considerations
- •Marketing Mix
- •International offer from Wok to Walk Franchise bv
- •International contract
- •International operation and intermediary selection
- •Future benefits and caveats
- •Appendix 1
- •Appendix 2
- •International Contract Outline
- •Appendix 3
- •References
Future benefits and caveats
The Wok to Walk company is sure that the expansion to St. Petersburg will have a lot of benefits for the company which will improve the profit and be advantageous for it:
The brand name of “Wok to Walk” will become internationally known and by the market entry in St. Petersburg there are going to be a lot of future perspectives in this geographical area;
The urban young society of St. Petersburg will be a very interested consumer group because of their international knowledge and their demand for fast food which is already presented in European markets;
We will definitely learn a lot about the Russian market in this business which can be helpful for our future operations;
Because of our reliable franchise partners there will a constant source of profit additionally to our main business in the Netherlands;
As we do not have a big investment ourselves in Russia by this probable risks do not matter us too much.
Nevertheless, our market entry to Russia will contain some issues and problems which should not be neglected:
The Russian business environment is more risky than the European one and this could lead to costs not predictable by us;
If our franchise partner abuses the resources we provide him with it is very difficult to fine him on the legal way;
The difficult legal environment itself has to be studied quite well and some restrictions concerning international business which can take place should be observed in an accurate manner.
To sum up, the benefits of this investment are far bigger than the caveats and so we expect to have good chances to improve our whole business by entering the market. Our Russian operations will improve our company performance in different areas such as profits, R&D, marketing and so on. We see our investment into Russia going to be very advantageous and profitable in the next years so that it will become one of St. Petersburg’s most frequented fast food restaurants by students and young workers.
Appendix 1
Wok to Walk Franchise BV Offer Outline
Product |
Furniture for dining room for one restaurant, consisting of tables, benches and stools |
Specification |
Furniture made of solid oak wood with a surface cap against abrasion and dirt.
|
Quantity |
20 Benches 10 Tables 10 Stools |
Packaging |
Disassembled, parts packed in bubble wrap and cardboard boxes |
Origin |
Furniture is produced in Slovakia |
Transportation and Terms of Delivery |
Shipped in 20 feet container from Rotterdam to St. Petersburg within 12 days CIF St. Petersburg (Cost, Insurance, Freight; Incoterms 2010) Collection of the goods in the port of St. Petersburg by franchisee |
Prices and Total Amount |
Prices are understood on the basis of CIF Saint-Petersburg, include:
Prices are fixed in EUR
Total amount: 4570.00 € |
Insurance |
Insurance is part of the CIF incoterm and is included in the price Marine Cargo Insurance “A”-Clause: All risks of loss and damage to the cargoes, except of washing overboard, during loading and unloading and lightning. |
Payment |
Irrevocable and confirmed letter of credit 40% upfront payment to cover the costs of buying the furniture from our Slovakian supplier. To be transferred within 14 days before actual shipping the goods in Rotterdam against the following documents:
The 60% final payment at sight of Bill of Lading |
Documents |
Commercial Invoice Certificate of Origin Packing List Copy of Contract Certificate of Insurance Bill of Lading SGS Inspection Certificate Assembling instructions |