Question

A leading multinational fast food brand introduced its first chain in Karachi, Pakistan. The brand was launched after a successful direct marketing strategy and was a hit since day one with long queues and never ending orders. Suddenly, in the second month, all sales dropped and by the third month, the franchise was on the verge of bankruptcy. The CEO of the multinational brand became furious and decided to understand the root cause of this failure

Answer 1

This may be because of following reasons:

• The brand could not maintain the quality of the product due to its huge demand in the first month for which the Company may not be well prepared
• The company may not have done proper market research before entering the market regarding the taste of the people in the region; a lot of customisation is required based on the region; due to its popularity out of the country, people were attracted to it in the first month but due to word of mouth the popularity faded in the consequent months
• Due to direct marketing strategy, the company may not be able to handle the crowd properly which may have created the frustration among the people

More clarity in the question would have resulted in better answer.