Runza: From Nebraska Icon to National and International Brand

Runza National, Inc. (Runza), an iconic Nebraskan quick-service restaurant chain had saturated its home Nebraskan market, with eighty-two stores across the state. A proud, family-run business, the Nebraskan chain was named after a mouth-watering regional specialty: the Runza sandwich. Also known as a bierock, this savoury bread pocket of Russian and German origins was adapted from a family recipe into the flagship offering. To foster further growth, the Runza team sought to expand the chain across the Midwest and beyond, through options such as company-owned stores, franchising, and ghost kitchens. Equally crucial were the areas in which to expand, with possible markets in nearby Wyoming, Montana, Colorado, North and South Dakota, Minnesota, Kansas, Iowa, and Missouri. Canadian communities also presented opportunities for international expansion. In determining the optimal markets and modes of entry, the company had to consider the effect of local factors on the company’s appeal. Its Nebraskan roots had made it a local icon with a devoted customer base, but the next steps beyond its home state would shape its future. Which states of the United States should they expand into, and was Canadian expansion viable? What market types—larger cities or smaller towns—were the most desirable, and which mode of entry was most feasible?

This case is suitable for introduction to marketing and marketing management courses at the undergraduate and graduate levels. The case could also be used in an international marketing course at a similar level given the case features elements of international expansion, or in a general management course given its applicability to the resource-based view of the firm. This case explores differentiation and focuses on the place element of the marketing mix. After working through the case and assignment questions, students will be able to<ul><li>understand the sources of differentiation;</li><li>analyze the advantages and disadvantages of targeting smaller and larger centres for a proposed future expansion;</li><li>evaluate whether a company should expand into new markets, including new international markets;</li><li>determine the desirable characteristics of a market for expansion, such as which US states a company should expand into, as well as which towns within a state a company should consider; and</li><li>determine which mode of entry a company should use when considering a market expansion.</li></ul>

• place
• distribution
• Canada
• United States
• expansion
• international expansion
• mode of entry
• ghost kitchens
• company-owned stores
• franchisee-owned stores