During the early 1990s, opportunities in South East Asian markets became increasingly important to American and European retailers seeking to sustain their international growth rates. In particular, the less developed markets of South East Asia began to attract attention which they had previously not received. This was in contrast to earlier expansion patterns among European international retailers.
Before the early 1990s, retailers have tended to look towards Europe and North America, rather than East Asia to grab international growth opportunities.American retailers have operated in international markets for a considerable period of time. For some retailers, cross-border expansion was a feature of the 1890s as it is a feature of the 1990s (Jackson, 1976; Clements, 1997). Initially, the retailers’ international expansion was characteristically of a limited nature and usually occurred in markets which were either geographically proximate to the domestic market or in markets with particularly strong cultural associations.US retailers were prominent among these early international operations because of the relatively early growth of multiple retail operations in the domestic market. In the early 1990s, East Asian markets offered expansion opportunities which were not available in other global regions. The markets of North America and West Europe were already heavily populated with retail operations offering advanced retail distribution facilities.
The markets of East Europe, while attractive to European retailers, did not show signs, in the early 1990s, of rapid economic development which would sustain large scale investment (Myers and Alexander, 1997). This report focuses on the internationalization process of Kroger (the American retail firm) and the scope of its operations in India. This report also outline the attractiveness of the Indian food retail market and compares the market with Kroger strategies, values and objectives. The attractiveness of the Indian market has been highlighted by the recent entry of many major food retailers..A survey was also conducted for the purpose of primary research, results of which are analyzed, highlighting the main findings and reactions of the Indian consumer upon an international food retailer entering its region. Furthermore the conclusion and recommendation section gives practical advise to Kroger, and what should be the steps taken in order to ensure a successful launch in an emerging market like India and should Kroger take the risk to invest and follow the path of its major US competitors.
History and Overview of Kroger The Kroger Co. was established in 1883 by Mr. Barney Roger and was incorporated in 1902. Kroger Co (Kroger) is one of the leading US retail grocery chains operating under banners such as Kroger, Food 4 Less, Ralphs , Fred Meyer, King Soopers , QFC, Fry’s and Fry’s Marketplace, Smith’s and Smith’s Marketplace, Dillons, and City Market.
The company is headquarter in Cincinnati, Ohio and employs approximately 300,000 people.Kroger Company (Kroger) is one of the largest retailers in the US based on annual sales. Some of the food for sale in its supermarket are manufactured and processed by the company. Kroger operates in the US market only.
As of February 3, 2007, the company operates 2,468 supermarkets and multi-department stores directly or through its subsidiaries in 41 states. These stores have strong local ties and brand equity. More in Appendix no