afc proposal

8/14/2019 AFC Proposal

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RESEARCH PROJECT ON AFC

Topic:

RESEARCH PROPOSAL

Submitted to:

Prof: Sajid Javed Akbar

Submitted by:

Imran Sanaullah 367

Saad Hafeez 376

Asif Ali 344Ahsan Ali 351

Qsim Ali 347Rehan Shahid 381

B.COM (Hons)5th semester, section: F

Topic: ..................................................................................................................................1

Submitted to: ........................................................................................................................1Submitted by: .......................................................................................................................1

EXECUTIVE SUMMARY ..................................................................................................3

HAILEY COLLEGE OF COMMERCE, P.U. LAHORE

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INTRODUCTION: .........................................................................................................3

Restaurants MISSION STATEMENT ...............................................................................4

FUTURE PLANNING .........................................................................................................5AN OVERVIEW OF RESTAURANT .................................................................................5

ADDRESS: ......................................................................................................................5

MAIN COMPETITOR ........................................................................................................5OBSERVATION ...................................................................................................................6

PRELIMINARY DATA COLLECTION .............................................................................7

Lahore: .............................................................................................................................8Faisalabad: .......................................................................................................................8

PROBLEM DEFINITION ...................................................................................................9

RESEARCH OBJECTIVE ............................................................................................10

OBJECTIVES OF THE STUDY ...................................................................................10THEORETICAL FRAMEWORK .....................................................................................10

INTERACTION OF VARIABLES ....................................................................................11

GENERATION OF HYPOTHESIS ...................................................................................12

RESEARCH DESIGN .......................................................................................................13SAMPLING: ..................................................................................................................13

TOOLS FOR DATA COLLECTION: ............................................................................13DATA ANALYTICAL TECHNIQUE ............................................................................14

DATA ANALYSIS: ........................................................................................................14

ANALYSIS OF DATA COLLECTED FROM CUSTOMERS .........................................15

Question # 1: .................................................................................................................15"Do you Prefer Fast Food over Regular Food?" ............................................................15

INTERPRETATION: .....................................................................................................16

Question # 2: .................................................................................................................16INTERPRETATION: .....................................................................................................17

Question # 3: .................................................................................................................17

DATA ANALYSIS .............................................................................................................18DATA ANALYSIS .............................................................................................................20

DATA ANALYSIS .............................................................................................................21

FINDINGS AND CONCLUSION .....................................................................................31SUGGESTIONS ................................................................................................................32

BIBLIOGRAPHY ..............................................................................................................33


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EXECUTIVE SUMMARY

INTRODUCTION:

We were directed to prepare a Research Proposal by our respectable teacher Professor

SAJID JAVED AKBAR. We decided to conduct Research on Al-Najam Fried Chicken

(AFC), which was facing a problem of declining rate of customers as compared to its

main competitor McDonalds. The Head Office of AFC is situated on 95-Main Market,

Samanabad, Lahore. As AFC is providing its products and services all over the country

through its branches and franchises so it is a fast food restaurant growing very rapidly

within a strong competition.

For the purpose of finding solution to this problem we collected data by using multiple

methods of data collection. To know the reasons for declining trend to the AFC .We got

the questionnaires filled up from people of different areas. The questionnaires was about

asking the people about that why they prefer fast food and how they rank the fast food

restaurants, either they are price conscious or quality conscious, or their preferences to

products of restaurants are on the basis of easy access, advertisement, special packages,

environment provided by the restaurant, service provided by the staff or presentation of

the products. Open-ended questions were also asked for further clarifications.


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Our mission is to make the quality fast food available to all those people who liked

the fast food but couldn't dare to afford.

We did so without compromising the highest standards of food industry. We, AFC, not

only use the best raw materials available but we also provide the best of food at a very

reasonable and competitive price. All our

foods are processed and prepared using of the art machines and equipments and we

always used to say that,

No Compromise On Quality

FUTURE PLANNING

Our future planning is to provide best quality fast food for all kind of customers. In near

future our top level management has decided to increase its business area and wants to

capture more and more market that it already has but not fully captured by opening

further branches. This is why the management is keen to introduce many new varieties of

fried chicken which is the major Item of fast food restaurants.

AN OVERVIEW OF RESTAURANT

ADDRESS:

AL-NAJAM FRIED CHICKEN (AFC).

Main Boulevard, Allama Iqbal Town, Lahore.

Telephone: +92-42-7553512

Fax: +92-42-7553511

E-Mail: [email protected]

Web site: http://www.afc.com.pk

MAIN COMPETITOR

Ray Korc opened the first McDonalds restaurant in 1955 in the United States of

America. He offered a limited menu of high quality food served fast in spotless


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surroundings .McDonalds QSC&V was (quality, service, cleanliness, and value) was a

hit and in 2001 it had more than 29000 restaurants in 121 countries. McDonalds business

structures take a variety of forms, with 66 percent of the restaurants being franchised. The

reputation of McDonalds was also very good because of it quality, service, cleanliness

and value but it was a costly fast food restaurant to be affordable only by the upper class

people. So, when KFC, Pizza Hut and AFC were introduced in the mid 90s the fame of

McDonalds come to the ground and a great competition was generated among these fast

food restaurants.

So, a branch of McDonalds just near to the AFC branch in Allama Iqbal Town is

the main competitor. As well known the McDonalds an international well known fast

food restaurant with which AFC is competing.

OBSERVATION

The management of AFC observed that they are facing a problem that the number of

customers they had in the past is decreasing over the years. They also felt that the demand

of their some products is declining. This problem of declining the customer ratio was


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especially with some chicken varieties. After consulting the management we got the last

few years sales documents and found the difference in sales.

12.5

13

13.5

14

14.5

15

15.5

16

16.5

17

17.5

2000 2001 2002 2003 2004 2005

SALES

PRELIMINARY DATA COLLECTION

For the purpose of preliminary data gathering first we visited the Restaurant frequently

and collected some information about the Restaurant. After due verification, we come to

know that AFC is facing some problems like declining customer ratio etc. After collecting

necessary data we developed short questionnaires by keeping declining customer ratio


YEARS SALES(Millions)2000 16.8

2001 16.1

2002 15.5

2003 15.1

2004

2005

14.5

14.1

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as a dependent variable and by keeping prices, quality, service, environment, easy

access, advertisement and goodwill as independent variable.

During our research, the sample for our questionnaires was: 60 out of which 50% males

and 50% were females.

It was quite difficult to collect the data from respondents but we tried our best to guide

our respondents and collect the right form of data.

For collecting the data we visited the following areas of Lahore and Faisalabad City.

Lahore:

Allama Iqbal Town

Samanabad

Mall Road

Fortress Stadium

Abbot Road

Faisalabad:

D-Ground

Susan Road

Iqbal Stadium

We use these areas for our research purpose because the people in these areas prefer fast

food to be eaten. There exists more competition among fast food restaurants in these

areas because more fast food restaurants are there in these areas. We employed the

different method for collecting the data such as;

MANAGEMENT questionnaire

PUBLIC QUESTIONNAIRE

PERSONAL OBSERVATION

STRUCTURED AND UNSTRUCTURED INTERVIEWS

SURVEY


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PROBLEM DEFINITION

The management of the AFC observed that they are facing the problem of declining

customer ratio due to their competitor i.e. McDonalds. After studying the data gathered in

preliminary data gathering and going through the documents and sales record we found

that it is true that the customer ratio is decreasing gradually from last couple of years.


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RESEARCH OBJECTIVE

Our Research objective is to find the reason of declining customer ratio of AFC and find

the ways to increase the customer ratio of AFC. So we used different techniques and

methods to boost their sales.

OBJECTIVES OF THE STUDY

The objective of our research is to find out the solution to the problem of the AFC after

observing the Company activities and by applying scientific research methods;

1. To find out the customer satisfaction

2. To find how can we increase the number of customers?

3. To find whether the quality of products is improved or not

4. To know the opinion of customers about prices, quality, easy access, attitude of

staff and waiters, goodwill, competitors advertisement and environment of the

Restaurant.

5. To know whether the customers are inclined towards the fast food or not

6. To know whether the price matches the quality of products, etc.

THEORETICAL FRAMEWORK

In order to formulate theoretical framework, first we are to list and label the variables of

the study.

LIST Labels


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Price Independent

Quality Independent

Easy Access Independent

Goodwill Intervening

Advertisement Independent

Environment and Service independent

Declining Customer Ratio Dependent

The dependent variable is Declining Customer Ratio, which is the variable of primary

interest, to which the following Independent variables may cause to influence i.e,

1. Price

2. Quality

3. Easy Access

4. Advertisement

5. Environment and Service provided

6. Goodwill as Intervening Variable.

Increase in Prices of products items and products ultimately cause less attraction of

people towards Restaurant. Due to lack in the quality of products and products items

people are dissatisfied. Due to uneasy access and defame of restaurant people areunwilling to visit a restaurant. Lack of advertisement does not introduce restaurant in the

far away areas. Thats why people would join other restaurant products unknowingly.

Finally, less provision of the special packages also increases the dissatisfaction of the

customers and ultimately declining the customer ratio.

INTERACTION OF VARIABLES

INTERVENING VARIABLE


11

PRICEGOOD

WILL


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Ho: There is no relationship between Easy Access and Customer ratio

HA: People will go to the nearer Company

Ho: There is no relationship between Goodwill of the Company and

customer ratio.

HA: People used to visit the Most Famous Restaurant

Ho: Advertisement does not Affect the Customer ratio

HA: More the Advertisement more the Customer ratio

Ho: Special Packages do not attract the people towards Company

HA: Special Packages attract the people very much

RESEARCH DESIGN

SAMPLING:

During our Research work we chased about 60 respondents as sample size and selected

the different area of Lahore and Faisalabad cities as broadProblem Area of our study.

TOOLS FOR DATA COLLECTION:

1. Information booklets of Company

2. Personal interviews of Management


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3. Close ended and Open ended Questionnaires from general public visiting AFC as

well as McDonalds

4. Web site of AFC i.e. www.afc.com.pk

DATA ANALYTICAL TECHNIQUEPERCENTAGES

CHARTS AND GRAPHS

DATA ANALYSIS:

We have collected scientific data from general people, by personnel interviews

and questionnaires and also the literary survey (Booklets and Broachers) and last years

record. After that we have analyzed the data by using statistical tools i.e. averages,

percentages and proper graphical presentation of data has been applied. We have chosen

the new technique to present the data analyzed through charts and graphs. This will make

the whole analysis easy to understand and attractive


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ANALYSIS OF DATA COLLECTED

FROM CUSTOMERS

Question # 1:

"Do you Prefer Fast Food over Regular Food?"

SCHEDULE

Views Percentage

Strongly agree 20%Agree 45%

Neither Agree nor disagree 10%

Disagree 15%

Strongly disagree 10%

0%

10%

20%

30%

40%

50%

PREFERENCE OF FAST OFFD

strongly agree

agree

neither agree not

disagree

diagree

strongly disagree


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INTERPRETATION:

We found that 20% people are strongly prefer the fast food over regular food and 45% of

the people were those who were prefer the fast food normally over the regular food

because less time consume in eating fast food.

Question # 2:

Do you know about AFC?SCHEDULE:

Response Yes No

Percentage 90% 10%

GRAPHICAL PRESENTATION


16

0%

50%

100%

yes no

knowledge about AFC

yes

no


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Through our survey from general people we found that 85% people are those who visit

AFC only one time in a day and 15% are those who visit AFC two times in a day and

there were no people who visit AFC three times in a day.

DATA ANALYSISQuestion #4:

Specify your Fast food Restaurant preference?

SCHEDULE

Restaurants Percentage

AFC 30%

McDonalds 45%OTHERS 25%


30%45% 25%

0%

10%

20%

30%

40%

50%

AFC

McDonald's

OTHERS

INTERPRETATION:

Our survey reveals that 30% people give their preference to AFC and 45% people give

priority to McDonalds and 25% are the people who like visit other fast food restaurants.


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Question#5:On which basis do you prefer fast food restaurants?

SCHEDULE

Basis of preference Percentage

Price 14%

Quality 76%

Environment 6%

Service 4%


14%

76%

6%4%0%

20%

40%

60%

80%

price Quality Envi. Service

INTERPRETATION


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According to the data gathered 14% people are those by considering price more

important factor where as 76% prefer the quality of the products and 6% prefer

restaurants because of the environment provided by restaurants and 4% people prefer

restaurant because of the service provided by the restaurants because of they are more

price conscious.

DATA ANALYSIS

Question # 6 :

Are you satisfied by the Price offered by the AFC as

economical?

SCHEDULEResponse

Yes 55%

No 45%


55%

45%

0

0.2

0.4

0.6

0.8

1

Satisfaction Over Price

no

yes


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INTERPRETATION

55% of the people show their complete satisfaction over price offered by the AFC and

45% of the people are those who show their dissatisfaction over the price offered by the

AFC.

DATA ANALYSIS

Question # 7:

Does the quality of the products offered by the AFC come up

to your expectations comparatively?

SCHEDULE:

Views Percentage

AFC McDonalds Others

Yes 65% 80% 37%

No 35% 20% 63%

GRAPHICAL PRESENTATION:

Relation Between Quality and

expectations


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59%

41%

0%

10%

20%

30%

40%

50%

60%

AFC

Favourable Environment

Yes

No

INTERPRETATION:

After data analysis it was found that 59% people are those who consider that the

environment provided by AFC is the best and no need to improve it but as well known

saying is that the chances of improvement are always there so 41% people think thatmore improvements should be made in it.

DATA ANALYSIS

Question #9 : Which fast food restaurant provides more variety of

products?

SCHEDULE:

Company

Name

Percentage

AFC 41%

McDonalds 45%

Others 14%



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41%45%

14%

0%

10%

20%

30%

40%

50%

AFC Others

AFC McDonalds OthersPeercentage

INTERPRETATION

The results show that 41% agree with the fact that AFC provides more

variety of products but 45% people say that McDonalds provides more

variety of Products and only 14% people say that other companies like

KFC provides more variety product.

DATA ANALYSIS

Question #10 : Do you think that special packages play an important

role for the promotion of restaurants sales?

SCHEDULE

Views

Yes 82%

No 18%



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82%

18%

0%

20%

40%

60%

80%

100%

opinion

Importance of Special Packages

NO

YES

INTERPRETATION

The above analysis shows that 82% people think that special packages

play an important in the promotion of the sales of the restaurants but only

18% percent people consider it as regardless.

DATA ANALYSIS

Question #11: Which restaurant offered more special packages in the last

two years?

SCHEDULE:

Company

Name

Percentage

AFC 35%

McDonalds 39%

Others 26%



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35%39%

26%

0%

5%

10%

15%

20%

25%

30%

35%

40%

AFC

McD

onald's

Others

special Pacages offered in last two yearsPercentage

INTERPRETATION

The answer shows that the people are more responsive to the special

packages offered by the Companies. So, a Company offering more special

packages is more attractive to the people.

DATA ANALYSIS

Question#12 : How much importance you give to easy access(near) of

restaurants ?

SCHEDULE

Views

Very Important 49%

Important 33%

Normal 18%



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0%

10%

20%

30%

40%

50%

Very

Important

Important Normal

INTERPRETATION

From the above data we analyze that easy access is very important

indicator for the popularity of a Company. As it is obvious from the data that

44% of the samples consider it very important.

DATA ANALYSIS

Question#13: Due to which factor you prefer McDonalds over AFC?

SCHEDULE

Views

Quality 67%

Price 9%

Variety 14%

Service 10%



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67%

9% 14% 10%0%

20%

40%

60%

80%

Quality Price Variety Service

Factors Of Preference

INTERPRETATION

So, it is very clear from above graphical representation of the data analyzed

that most of the people prefer the McDonalds due to the better quality over

the AFC, some on the basis of price, variety and some service.

DATA ANALYSIS

Question#14 : How would advertisement play an important role for the

success of a Restaurant?

SCHEDULE

Views

Very Important 61%

Important 22%Normal 27%



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61%

22%27%

0

0.2

0.4

0.6

0.8

Importance of the Advertisement of

product

very importat

impotant

Normal

INTERPRETATION

So from above data analysis we see that 61% people think that the advertisement

of the product is very important for sale promotion and according to 22% it is on

important and 27% of the people think it normal promotional activity.

DATA ANALYSIS

Question#115 : In your opinion should AFC start home delivery service

or not?

SCHEDULE

Comments Percentage

yes 65%

No 35%



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65%

35%

0%

20%

40%

60%

80%

Comments On Home Delivery

Service

No

yes

INTERPRETATION

After collecting the data, we see that the 65% of the people were in

right of starting home delivery service and 35% think that visiting restaurant

is also a source of recreation so it may be but it is not most essential.


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SUGGESTIONS

After the data analysis we come to the conclusion the there is chances and also need to

improve the quality, service, prices of products in this regard the management should

made following decisions and activities to get rid of this problem.

Management should improve the quality of its products

The management should introduce the new varieties of products especially

some new fried chicken varieties.

Company management should offer more special packages.

Strong Advertisement Policy should be adopted to make the people familiar

with the restaurant particularly in developed and forward areas. For this

purpose, Print Media and Electronic Media should be adopted. Because the

advertisement plays an important role in the promotion of sales.

The management should give instructions that the presentation of the food to

the customers should be decorative and attractive to attract customer.

The management should try to cut down the prices up to some extent so that

the middle as well as lower middle class may also enjoy the standard fast

food restaurants.


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BIBLIOGRAPHY

During the research process, besides our practical research, we also have consulted some

book about our practical research for the preparation of this proposal in an effective

manner. A list of all references, which has been consulted and the data has been derived

from, are given as under:

Class Notes by PROFESSOR SAJID JAVED AKBAR, during our

class lectures

Special Instructions and guideline by PROFESSOR SAJID JAVED

AKBAR Main library of University of the Punjab, Quaid-e-Azam Campus, Lahore.

Library Hailey College of Commerce, University of the Punjab, Lahore

The books of Donald R. Cooper Florida Atlantic University & C. William Emory.

Field surveys through which data has been collected from different types of

questionnaires and different areas Lahore and Faisalabad.

(AFC) Restaurants Booklet and braushers

http://www.afc.com.pk

afc proposal

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