Our Answers
1. Is there any competition in the area?
There are no direct competitors in Rostov-on-Don, but there is a great amount of indirect competition in the area, since Russians tend to order the cocktails from freshly squeezed fruits in cafes or restaurants. The prices in such facilities are pretty high and not affordable for everyone, which is great since Booster Juice is going to provide its’ customers with average prices which will suite most people.
2. Who are the main competitors?
There are two competitors who are situated close to RIO Mall: Yummy Mix and BubbleMix. Both of them are located in another Mall which is 5-7 minutes away from RIO. Their brand names are not recognizable as they are poorly advertised in the area.
3. What are the advantages of placing the business in the Mall?
There are many advantages for placing the facility inside the Mall because today Russian population prefer to go for a walk and shop in the shopping centres such as RIO or Horizont meaning that the demand for Booster Juice’s products is going to be stable and increased each month/year. There are also different sport and fitness facilities meaning that the demand for Booster Juice will be increased by the number of members going to those fitness centres.
4. Should the company adapt the prices to the area of operation?
We believe that the current prices in Canada should be modified a little in accordance with the local standards in Rostov. The prices will also be depended on the costs the suppliers are going to charge for the ingredients and average income of particular family since we want to make Booster Juice available for everyone in the city.
5. Is there a demand for Booster Juice’s products in Rostov?
There is a growing demand for healthy products in the city and the area around since people become more aware of what they consume and realize the importance of sport. Since the availability of freshly squeezed juices and smoothies in the area is low because of prices, there is going to be a constant increase in the demand for Booster Juice.
6. What is the expected number of customers for the first year?
We expect to have at least 300 customers per day, but it may vary depending on the season. For example, during the summer period there is going to be almost 400 people coming for the smoothie. In fact, we expect approximately 120,000 customers for the first year and it also depends on marketing and advertising.
7. Who will be the company’s local suppliers?
Rostov is the South Capital of Russian Federation that is why it is a huge trading centre. More specifically, there are suppliers from Krasnodar, Caucasia, Spain. All of these three have the best quality for the fruits and vegetables. The most cost effective strategy would be to choose from the Caucasia and Krasnodar, so we decided to pick Krasnodar as it is located very close to Rostov and the prices for buying the products especially in wholesale.
8. Should the company change the menu items and adapt them for the locals?
While discovering the menu from Booster Juice website, we found that there is no need in making any changes only in food items there can be some little changes. Moreover, the menu could be narrowed in the size because such a huge variety of products may confuse customers and make them not come again to the facility. The menu should be simplified in this way. Another thing is that it should be adapted to the ingredients provided by suppliers, since not all of the ingredients available in Canada are going to be available in Russia as well.
9. What can guarantee the success for the business expansion in Rostov?
As it was mentioned before, healthy products are growing in popularity in Russia and people become more aware of the sport, moreover there is almost no competition and the idea is new for the area.
10. Is there any way to reduce the production costs?
The production costs can be reduced by building strong business relationships with local
companies from Krasnodar city. Another way is to find employees who are ready to work at the lowest wages possible.
11. What would be the average order per person?
The average price a particular Russian would likely to spend is equal to $5-$7 CAD. The numbers are collected from local students and friends of our group.
12. How many years are required to break-even?
The estimated number of years is two, since we will need the maximum of two years to cover all of the costs and start making revenue. If the summer seasons are going to be more profitable than expected then we are going to break-even in one year or one and a half.
13. Is there going to be any problems with getting licences?
We believe that there is going to be no problems in applying and getting all the necessary documents to start the business since the level of bribery in Russia is very high, meaning that we need a little time to complete this task. This information is received from Alexander who is local citizen from Rostov.
14. Is Booster Juice going to fulfill the existing demand for its products?
The demand for Booster Juice products is going to be consistent and expected to be increased annually/monthly. Since there is a demand for such cocktails and drinks for the price lower than the ones in restaurants, then Booster Juice is going to fulfill the demand.
15. What kind of communicational channels should be used to reach the potential target markets?
Social media such as Vkontakte.ru and Instagram are going to be used effectively since these websites are populated the most in the area. Moreover, the local TV channels are going to be used and magazines for marketing purposes. We also are going to hire employees who will be responsible for distribution of flyers and brochures containing information about newly opened foreign company.
16. Who will be the target market?
The target markets will be people mostly members of fitness clubs and students of local universities and schools.
17. Is the idea of Booster Juice unique for the local population?
The idea is unique since there is a little competition in the area. The variety of products that Booster Juice is going to provide its’ customers is huge, especially lots of smoothies meaning that this company is going to have advantage in the business area.
18. What would be the potential threats to the opening the business?
It may be a problem to rent the space in the Mall since there are other companies which wish to open their facilities in RIO. The local mafia groups may also be a threat if we refuse to pay them at once.
19. How many employees are required to successfully run one facility?
The estimated number of employees would be 4-5 people, since we will need two cashiers and two people responsible for preparation of juices and one manager.
20. Are there any limitations for new businesses?
There are no limitations concerning new foreign businesses.
21. Is the political situation stable in the country?
Today, it is unstable because of the situation in Ukraine, but we are not expecting this crisis to influence the opening of Booster Juice since such a company is not going to be affected by politicians.
22. What are the current trends in the area?
Today people from Rostov are becoming more and more aware of the sport and healthy products because of the Olympic Games 2014 in Sochi and the city became 11th in the rank among 100 most clean and convenient for life.
23. Why would the facility be placed in RIO Mall?
We see our shop opening in the RIO mall because this mall one of the newest and most visitable. It has a really reachable location, it is located near the subway station which makes it easy to get to for people without cars. Also, we think that overall design is subtle for our brand, it is very modern and wide visited by a younger population which is a part of our target market.
24. Is there an opportunity to open Booster Juice in multiple locations?
Since we believe that this new product will be interesting for people we see it expansion in more cities in Russia. Of course the aim would be to enter market in such cities as Moscow, St. Petersburg,Vladivostok and Siberia. Because, it has a high population so more potential customers.
25. What kind of promotions should be used
In order to insure that the Booster Juice would become popular and so profitable we would suggest to have some TV advertising, a special staff who will be encouraging to try the new product. Besides, we would put some bright logos so people who just saw a new company opening would like to come and get to know it. Moreover, some free samples would be suggested.
1. Is there any competition in the area?
There are no direct competitors in Rostov-on-Don, but there is a great amount of indirect competition in the area, since Russians tend to order the cocktails from freshly squeezed fruits in cafes or restaurants. The prices in such facilities are pretty high and not affordable for everyone, which is great since Booster Juice is going to provide its’ customers with average prices which will suite most people.
2. Who are the main competitors?
There are two competitors who are situated close to RIO Mall: Yummy Mix and BubbleMix. Both of them are located in another Mall which is 5-7 minutes away from RIO. Their brand names are not recognizable as they are poorly advertised in the area.
3. What are the advantages of placing the business in the Mall?
There are many advantages for placing the facility inside the Mall because today Russian population prefer to go for a walk and shop in the shopping centres such as RIO or Horizont meaning that the demand for Booster Juice’s products is going to be stable and increased each month/year. There are also different sport and fitness facilities meaning that the demand for Booster Juice will be increased by the number of members going to those fitness centres.
4. Should the company adapt the prices to the area of operation?
We believe that the current prices in Canada should be modified a little in accordance with the local standards in Rostov. The prices will also be depended on the costs the suppliers are going to charge for the ingredients and average income of particular family since we want to make Booster Juice available for everyone in the city.
5. Is there a demand for Booster Juice’s products in Rostov?
There is a growing demand for healthy products in the city and the area around since people become more aware of what they consume and realize the importance of sport. Since the availability of freshly squeezed juices and smoothies in the area is low because of prices, there is going to be a constant increase in the demand for Booster Juice.
6. What is the expected number of customers for the first year?
We expect to have at least 300 customers per day, but it may vary depending on the season. For example, during the summer period there is going to be almost 400 people coming for the smoothie. In fact, we expect approximately 120,000 customers for the first year and it also depends on marketing and advertising.
7. Who will be the company’s local suppliers?
Rostov is the South Capital of Russian Federation that is why it is a huge trading centre. More specifically, there are suppliers from Krasnodar, Caucasia, Spain. All of these three have the best quality for the fruits and vegetables. The most cost effective strategy would be to choose from the Caucasia and Krasnodar, so we decided to pick Krasnodar as it is located very close to Rostov and the prices for buying the products especially in wholesale.
8. Should the company change the menu items and adapt them for the locals?
While discovering the menu from Booster Juice website, we found that there is no need in making any changes only in food items there can be some little changes. Moreover, the menu could be narrowed in the size because such a huge variety of products may confuse customers and make them not come again to the facility. The menu should be simplified in this way. Another thing is that it should be adapted to the ingredients provided by suppliers, since not all of the ingredients available in Canada are going to be available in Russia as well.
9. What can guarantee the success for the business expansion in Rostov?
As it was mentioned before, healthy products are growing in popularity in Russia and people become more aware of the sport, moreover there is almost no competition and the idea is new for the area.
10. Is there any way to reduce the production costs?
The production costs can be reduced by building strong business relationships with local
companies from Krasnodar city. Another way is to find employees who are ready to work at the lowest wages possible.
11. What would be the average order per person?
The average price a particular Russian would likely to spend is equal to $5-$7 CAD. The numbers are collected from local students and friends of our group.
12. How many years are required to break-even?
The estimated number of years is two, since we will need the maximum of two years to cover all of the costs and start making revenue. If the summer seasons are going to be more profitable than expected then we are going to break-even in one year or one and a half.
13. Is there going to be any problems with getting licences?
We believe that there is going to be no problems in applying and getting all the necessary documents to start the business since the level of bribery in Russia is very high, meaning that we need a little time to complete this task. This information is received from Alexander who is local citizen from Rostov.
14. Is Booster Juice going to fulfill the existing demand for its products?
The demand for Booster Juice products is going to be consistent and expected to be increased annually/monthly. Since there is a demand for such cocktails and drinks for the price lower than the ones in restaurants, then Booster Juice is going to fulfill the demand.
15. What kind of communicational channels should be used to reach the potential target markets?
Social media such as Vkontakte.ru and Instagram are going to be used effectively since these websites are populated the most in the area. Moreover, the local TV channels are going to be used and magazines for marketing purposes. We also are going to hire employees who will be responsible for distribution of flyers and brochures containing information about newly opened foreign company.
16. Who will be the target market?
The target markets will be people mostly members of fitness clubs and students of local universities and schools.
17. Is the idea of Booster Juice unique for the local population?
The idea is unique since there is a little competition in the area. The variety of products that Booster Juice is going to provide its’ customers is huge, especially lots of smoothies meaning that this company is going to have advantage in the business area.
18. What would be the potential threats to the opening the business?
It may be a problem to rent the space in the Mall since there are other companies which wish to open their facilities in RIO. The local mafia groups may also be a threat if we refuse to pay them at once.
19. How many employees are required to successfully run one facility?
The estimated number of employees would be 4-5 people, since we will need two cashiers and two people responsible for preparation of juices and one manager.
20. Are there any limitations for new businesses?
There are no limitations concerning new foreign businesses.
21. Is the political situation stable in the country?
Today, it is unstable because of the situation in Ukraine, but we are not expecting this crisis to influence the opening of Booster Juice since such a company is not going to be affected by politicians.
22. What are the current trends in the area?
Today people from Rostov are becoming more and more aware of the sport and healthy products because of the Olympic Games 2014 in Sochi and the city became 11th in the rank among 100 most clean and convenient for life.
23. Why would the facility be placed in RIO Mall?
We see our shop opening in the RIO mall because this mall one of the newest and most visitable. It has a really reachable location, it is located near the subway station which makes it easy to get to for people without cars. Also, we think that overall design is subtle for our brand, it is very modern and wide visited by a younger population which is a part of our target market.
24. Is there an opportunity to open Booster Juice in multiple locations?
Since we believe that this new product will be interesting for people we see it expansion in more cities in Russia. Of course the aim would be to enter market in such cities as Moscow, St. Petersburg,Vladivostok and Siberia. Because, it has a high population so more potential customers.
25. What kind of promotions should be used
In order to insure that the Booster Juice would become popular and so profitable we would suggest to have some TV advertising, a special staff who will be encouraging to try the new product. Besides, we would put some bright logos so people who just saw a new company opening would like to come and get to know it. Moreover, some free samples would be suggested.