consumer’s perception of fast food outlets
TRANSCRIPT
A
DISSERTATION REPORT
ON
“CONSUMER’S PERCEPTION OF
FAST FOOD OUTLETS”
Submitted towards partial fulfillment
of
Post Graduate Diploma in Management
Under the Guidance of :-
PROF. PRIYA
Submitted By:
MOHD. RAZA ZAIDI PGDM – 2007-09
INSTITUTE OF TECHNOLOGY AND SCIENCE
Mohan Nagar, Ghaziabad-201002
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CERTIFICATE
Certified that M. RAZA ZAIDI has carried out the dissertation work presented
herewith entitled “Consumer’s perception of fast food outlets” for the
award of PGDM from Institute of Technology & Science under my supervision.
The dissertation embodies result of original work and studies carried out by student
himself and the contents of the thesis do not form the basis for the award of any
other degree to the candidate or to anybody else.
Date: PROF. PRIYA ( Faculty Mentor)
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ACKNOWLEDGEMENT
It has been a great learning experience on this project entitled
“CONSUMER’S PERCEPTION OF FAST FOOD OUTLETS”.
I would like to thank Prof. PRIYA for imparting knowledge and guidance to me in
the field of Marketing.
I would like to thanks Prof. PRIYA for his able guidance and support through out
my project completion.
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LIST OF CONTENTS
1) OBJECTIVE
2) RESEARCH METHODOLOGY
3) INTRODUCTION
3.1 THE INDIAN FAST FOOD MARKET –AN OVERVIEW 3.2 INRODUCTION OF FAST FOOD OUTLETS—
A) AN OVERVIEW OF MCDONALD’SB) AN OVERVIEW OF NIRULA’SC) AN OVERVIEW OF PIZZA HUTD) AN OVERVIEW OF DOMINOSE) AN OVERVIEW OF SUBWAY
4) COMPARITIVE ANALYSIS
5) RESULTS
6) LIMITATIONS
7) CONCLUSION
8) RECOMMENDATIONS
9) APPENDIX
10) BIBLIOGRAPHY
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OBJECTIVE
The objective of the study is:
To study the perception of customers with regards to fast food outlets in
NCR region.
To find out the frequency of visit at each of the stated restaurants.
To identify the unique factors which attract people to each of these stated
restaurants.
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METHODOLOGY
Information regarding the organizations, there product portfolios and
customer preferences has been obtained through
a) Primary sources
b) Secondary sources
PRIMARY SOURCES
a) Representatives of the concerned organizations were approached to obtain
information regarding products that are being offered and relevant
information.
b) Questionnaires were used, filled by the customers.
SECONDARY SOURCES
a) Internet
b) Library
c) Articles from economic times & other newspapers
d) Company broachers and pamphlets
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ABSTRACT
The project is the analysis of consumer perception of fast food outlets.
Here, the major players that are functioning in the Indian market are NIRULA’S,
PIZZA HUT, DOMINOS, SUBWAY and MCDONALD’S. Out of these
McDonald’s, Pizza Hut, Subway and Dominos are international chains & Nirula’s
is a local established chain.
All these players are dealing in fast foods like burgers, pizzas etc. also all these
players have different price ranges, product portfolio and services provided. So
they at the same time possess different customer base. Individuals perceive in
different ways about these service providers. So the idea here is to know the
perception of customers.
The finding of the project begins with giving an overview of the Indian fast food
market. This is followed by the demands of the Indian customers and how well
these chains are able to meet their demands.
Market research has been conducted in order to know the customer preferences and
perceptions for the every fast food retailer.
Conclusion and recommendations have been drawn keeping in mind the detailed
analysis of the complete fast food retail industry.
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THE INDIAN FAST FOOD MARKET –
AN OVERVIEW
Upto the year 1995 Indian food market was predominantly dominated by the
traditional dhabas, potential restaurants in the customers’ colony and some
restaurants in a five star hotel. Having fast food i.e., burgers, pizzas etc., was
considered to be an option for eating out. It was not at all synonymous with the
American concept of fast food as a quick takeaway bite or a substitute for lunch.
Apart from fast food being available at the local colony restaurants and at some
five star restaurants, Nirulas was the only fast food chain existing in the country
with its restaurants expanding with every passing year since its inception. It has
been almost 50 years now since its set up and there is hardly any one who doesn’t
know that Nirulas exists. Nirulas was the first one to bring fast food to India back
in the 50’s since then it has evolved into an eating place with tremendous brand
equity and brand recognition. It proved to be a perfect eating place for an average
middle class who wants to eat out at an affordable price that can’t afford the five-
star restaurants and would not want to go to the local dhabas.
Nirulas almost had a monopoly for decades due to the way it has been placed. It is
a place where a person from an average middle class group to upper class group
can go to eat out. Its popularity has increased over the decades. With the trends
changing and the incomes rising almost anybody who can afford to eat out could
go for a snack at Nirulas.
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However the year 1995-96 witnessed a drastic change. 1996 is considered to be the
year of India’s entry into the world food market. International giants such as
McDonalds, KFC, TGIF, SUBWAY, DOMINOS and Pizza Hut all bombarded the
Indian food market.
Before these, UK-based joint called Wimpy’s had established its chain in the
country in 1990. By year 1996 it had about three to four joints established in Delhi.
However it did not pose much of a threat to Nirulas reason being lack of variety
and that Wimpys was looked at more of a hang-out place rather than eating out
with the family.
It’s been the American international giants i.e., McDonalds, Pizza Hut etc., who
have targeted their restaurants to the families. Apart from the foreign and Indian
fast food chains setting up shop, there are a range of specialty restaurants offering
varied fare such as Chinese, Mexican, French, and Italian etc. These places
however offer range of items different from burgers, pizzas etc, but they definitely
are competition to both foreign and Indian fast food chains.
However, restaurant business is such which is surrounded by threat from
everywhere be it Indian joints or foreign joints.
It is only these international joints and specialty restaurants which are gradually
coming up and some Indian restaurants which have made up the food market. Prior
to this it was only the local restaurant which became visible while passing by or
through local banners etc., and the five star restaurants were for the elite class out
of reach by the average middle class customer. There was hardly any awareness or
promotion to beat competition.
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Each of the foreign food joints that have come into the country have their own
strategy lined up to differ from the rest. Each of these studied the Indian tastes and
style and thereby targeted the Indian customer. An average Indian restaurant goers
is no convenience eater, unlike the Americans. If he is paying, he is paying for
food that tastes good (Spicy, soft, savory etc.), not for how pleasantly the stuff is
served or how spotless the widows are. He wants food for that can make him come
back to the restaurant. An Indian food joint owner would definitely understand this
but an American company which comes and places itself directly without knowing
the customer is definitely in for trouble. Customer loyalty in a restaurant business
is essentially low. A customer when he comes to a restaurant usually looks at the
quality of food, variety, ambience, speed of delivery and the location. The variety
would influence the frequency of visits since taste is a dominating factor to the
Indian customers.
Almost all the fast food chains both Indian i.e., Nirulas and foreign i.e.,
McDonalds etc., are targeting the families. This serves to be an advantage because
the turnaround time is short and family has higher propensity to spend because
different members order larger variety of dishes.
Each of these restaurants delivers quality, value and services in its own way
through its line of strategies. The emphasis is on the value that the restaurant is
delivering to the customers.
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McDONALD’S
A). AN OVERVIEW
History and Background
In 1955, Ray Kroc, a 52-year old salesman of milkshake mixing machines, became
interested in a string of seven restaurants owned by Richard and Maurice
McDonald. These two founded the quick service restaurant industry when they
converted their barbecue drive in with car hops into the world’s first McDonald’s
limited menu, self service drive-in in 1958, in California. Kroc liked their fast-food
restaurant concept and bought the Chain for $2.7 million.
He opened his first McDonalds in Illinois in April 1955 and founded the company
that evolved into McDonalds Corporation. He decided to expand the chain by
selling Franchises, and the number of restaurants grew rapidly.
McDonald's Corporation is the world's largest chain of fast food restaurants,
serving nearly 58 million customers daily. McDonald's primarily sells hamburgers,
cheeseburgers, chicken products, French fries, breakfast items, soft drinks,
milkshakes, and desserts. More recently, it has begun to offer salads, wraps and
fruit. Many McDonald's restaurants have included a playground for children and
advertising geared toward children, and some have been redesigned in a more
'natural' style, with a particular emphasis on comfort: introducing lounge areas and
fireplaces, and eliminating hard plastic chairs and tables.
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In addition to its signature restaurant chain, McDonald’s Corporation held a
minority interest in Pret A Manger (a UK-based sandwich retailer) until 2008, and
owned the Chipotle Mexican Grill until 2006 and the restaurant chain Boston
Market until 2007. The company has also expanded the McDonald's menu in
recent decades to include alternative meal options, such as salads and snack wraps,
in order to capitalize on growing consumer interest in health and wellness.
Each McDonald's restaurant is operated by a franchisee, an affiliate, or the
corporation itself. The corporations' revenues come from the rent, royalties and
fees paid by the franchisees, as well as sales in company-operated restaurants.
McDonald's revenues grew 27% over the three years ending in 2007 to $22.8
billion, and 9% growth in operating income to $3.9 billion.
Business Model
McDonald's Corporation earns revenue as an investor in properties, a franchiser of
restaurants, and an operator of restaurants. Approximately 15% of McDonald's
restaurants are owned and operated by McDonald's Corporation directly. The
remainders are operated by others through a variety of franchise agreements and
joint ventures.
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The McDonald's Corporation's business model is slightly different from that of
most other fast-food chains. In addition to ordinary franchise fees and marketing
fees, which are calculated as a percentage of sales, McDonald's may also collect
rent, which may also be calculated on the basis of sales. As a condition of many
franchise agreements, which vary by contract age, country and location, the
Corporation may own or lease the properties on which McDonald's franchises are
located. In most, if not all cases, the franchisee does not own the location of its
restaurants.
The UK business model is different, in that fewer than 30% of restaurants are
franchised, with the majority under the ownership of the company. McDonald's
trains its franchisees and others at Hamburger University in Oak Brook, Illinois.
In other countries McDonald's restaurants are operated by joint ventures of
McDonald's Corporation and other, local entities or governments.
As a matter of policy, McDonald's does not make direct sales of food or materials
to franchisees, instead organizing the supply of food and materials to restaurants
through approved third party logistics operators.
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According to Fast Food Nation by Eric Schlosser (2001), nearly one in eight
workers in the U.S. have at some time been employed by McDonald's. (According
to a news piece on Fox News this figure is one in ten). The book also states that
McDonald's is the largest private operator of playgrounds in the U.S., as well as
the single largest purchaser of beef, pork, potatoes, and apples. The selection of
meats McDonald's uses varies with the culture of the host country.
Industry Restaurants
Products
Fast Food
(hamburgers • chicken • french fries •
soft drinks • coffee • milkshakes •
salads • desserts • breakfast)
Market cap US$ 60.07 billion (2008)
Revenue ▲ US$ 22.79 billion (2007)
Operating income ▼ US$ 3.879 billion (2007)
Net income ▼ US$ 2.359 billion (2007)
Total assets ▲ US$ 29.391 billion (2007)
Total equity ▼ US$ 15.279 billion (2007)
Employees 390,000 (2008)
Website McDonalds.com
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McDONALD’s India
A locally Owned Company
McDonalds India is a locally owned company managed by Indians. In Mumbai
Amit Jatias Company, Hard castle restaurants Pvt. Ltd., owns and manages
McDonald’s restaurants. In Delhi, McDonald’s restaurants are owned and managed
by Vikram Bakshi’s Connaught Plaza restaurants Pvt. Ltd. Both these individuals
are responsible for the running of McDonalds India.
McDonald’s customer base
. In 1997, McDonald’s 3 outlets received about 15000 customers daily.
. McDonald’s restaurants with about 150-200 seating capacity serves about 40000
customers per month.
. By 2007, with 53 outlets McDonald’s has served 3 million customers everyday.
Local Sourcing is Key for Truly Indian Products
Around the world, McDonald’s traditionally operates with local partners or local
management. In India too, McDonald’s purchases from local suppliers.
McDonald’s constructs its restaurants using local architects, contractors, labor and
- where possible - local materials. McDonald’s hires local personnel for all
positions within the restaurants and contributes a portion of its success to
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communities in the form of municipal taxes and reinvestment. Its 98% of the
inputs are obtained domestically.
McDonald’s sources food products from local companies. mutton patties are
supplied by Al-Kabeer, Hyderabad, Andhra Pradesh; fresh lettuce comes from
Pune, Ooty, Maharashtra and Dehradun; cheese from Dynamix Dairies, Baramati,
Maharashtra; sesame seed buns and sauces from Cremica Industries Phillaur,
Punjab, and pickles from VST Natural Foods, Hyderabad, Andhra Pradesh.
Respect for the Indian Customs and Culture
McDonald’s worldwide is well known for the high degree of respect to the local
culture. McDonald’s has developed a menu especially for India with vegetarian
selections to suit Indian tastes and culture. Keeping in line with this McDonald’s
does not offer any beef or pork items in India. McDonald’s has also re-engineered
its operations to address the special requirements of a vegetarian menu. Vegetable
products are prepared separately, using dedicated equipment and utensils. This
separation of vegetarian and non-vegetarian food products is maintained
throughout the various stages of procurement, cooking and serving.
McDonald’s Promise--- Quality, Service, Cleanliness and
Value
The McDonald’s philosophy of QSC & V is the guiding force behind its service to
the customers.
McDonald’s India serves only the highest quality products. All McDonald’s
suppliers adhere to Indian government regulations on food, health and hygiene
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while continuously maintaining McDonald’s own recognized standards. All
McDonald’s products are prepared using the most current, state-of-the-art cooking
equipment to ensure quality and safety.
At McDonald’s the customer always comes first. McDonald’s India provides fast,
friendly service - the hallmark of McDonald’s which sets its restaurants apart from
others.
McDonald’s restaurants provide a clean, comfortable environment especially
suited for families. This is achieved through McDonald’s stringent cleaning
standards, carefully adhered to.
McDonald’s menu is priced at a value that the largest segment of Indian
consumers can afford. McDonald’s does not sacrifice quality for price - rather
McDonald’s leverages economies of scale to minimize costs while maximizing
value to customers.
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PRODUCTS
McDonald's predominantly sells hamburgers, various types of chicken
sandwiches and products, French fries, soft drinks, breakfast items, and
desserts. In most markets, McDonald's offers salads and vegetarian items, wraps
and other localized fare. Portugal is the only country with McDonald's restaurants
serving soup. This local deviation from the standard menu is a characteristic for
which the chain is particularly known, and one which is employed either to abide
by regional food taboos (such as the religious prohibition of beef consumption in
India) or to make available foods with which the regional market is more familiar
(such as the sale of McRice in Indonesia). Menu & Nutritional Information
Beef
Chicken
Fish
Deli
Salads
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Sides
Breakfast
The Winter Menu
Little Tasters
Happy Meal
Saver Menu
Desserts & Treats
Drinks & Shakes
Nutrition & Ingredients
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BURGERS (in variety)
PIZZAS (in variety)
ICE CREAMS (in variety)
ADDITIONAL (in variety)
MEAL COMBOS (in variety)
13
--- 2 3 size (French fries & Veg. nuggets)
7
McDonald’s food McDonald’s know that we care about where ourfood comes from – McDonald’s care too.Working towards a greener futureAt McDonald's they recognize their responsibility to protect and preserve the environment for future generations to come.There goal is simple, to achieve continuous environmental improvement across all areas of our business.McDonald’s Environment Policy
LitterThey provide litter bins outside all their restaurants and are one of the biggest sponsors
of council provided litter bins in the UK. WasteUsed cooking oil represents 10% of a restaurant's total waste, and is recycled into biodiesel, which their
delivery fleet runs on. PackagingBy replacing McDonald’s plastic salad containers with a paper card base they have reduced by nearly 69 tones the amount
of plastic they purchase as a company. EnergyAll
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McDonald’s restaurants use low energy lamps and have light level sensors installed to control external lighting. All new lighting systems also have high frequency fittings.
'McDonald's eye 500 stores in China in 3 years'
SHANGHAI: McDonald's Corp, the world's largest fast-food chain, is optimistic
about business prospects in China and plans to open about 500 Stores in the
country in three years, a senior executive said on Wednesday.
McDonald's China operations have not been affected by the fallout from the global
financial crisis which has hit consumer spending as it has taken steps to retain
customers, Brian Durkin, vice president of development in China, said.
"McDonald's customers, when they go out shopping, they may not buy furniture or
clothes, but they get hungry in the process," Durkin said on the sidelines of an
industry forum.
"Many of McDonald’s new initiatives, 24-hour delivery, special value meals,
breakfast, all are driving and overcoming their sales relative to this decline".
In what the company calls "the best-ever value meal combination" in China,
McDonald's launched an aggressive promotion two weeks ago with half of its
items priced at the same level as 10 years ago or even lower.
Popular items with a downsized price included Filet-O-Fish, Double Cheeseburger,
McNuggets, McPuff and the new Mala Pork Burger.
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Last week, the fast food giant posted a better-than-expected 7.1 per cent rise in
global January sales at restaurants open at least 13 months, supported by strength
in nearly all its markets. Fast-food restaurants benefited as the global downturn
sent diners to lower-priced fare.
"We are not recession proof, but we are certainly recession resistant," said Durkin.
In 2008, McDonald's opened 146 restaurants in China, one of its fastest growing
markets, increasing the number of outlets to 2,012 by the year's end, out of more
than 30,000 worldwide.
Durkin said it planned to open about 500 new restaurants in the country in three
years, adding between 50 to 60 employees at each new restaurant.
McDonald's will open 175 new stores in 2009 and add 10,000 staff to its payroll,
up from 60,000 presently, the company said earlier this month. McDonald's to add 40
outlets by Dec
MUMBAI: Fast-food retailer McDonald's will step up expansions in India after
recording a 20% year-on-year growth early this year. The retailer plans to open 40
new restaurants by 2009-end, said Amit Jatia, JV partner & MD (west & south
region).
"We are also increasing our headcount to 7,000 from 5,000 at a time when most
companies are either cutting costs or reducing employee numbers," he said.
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McDonald's India is a 50:50 joint venture between McDonald's and Hardcastle
Restaurants for west and south India. For east and north India, the food retailer has
a tie up with Vikram Bakshi's Connaught Plaza Restaurants.
McDonald's refrained from hiking prices despite rising pressure on input costs last
year. "Currently, we do not see any reason for raising prices of our food items as
the commodity prices, especially edible oil prices, have eased and our back-end
supply-chain is strong enough," Mr Jatia added.
The largest fast-food retail network will invest around Rs 120 crore, excluding real
estate, for its expansion.
The food retailer offers services to 180 million customers every year from its 155
outlets and expects to manage the customer growth rate of 30-40% on y-o-y basis.
Further, it has tied up with BPCL and HPCL to open restaurants at their upcoming
motels on express highways.
"At present, McDonald's has 15 outlets on express highways, which may go up to
20 by the year end. We have tied up with BPCL and HPCL last year and are
identifying locations," Mr Jatia said. BPCL had planned to open about 320 petrol
pumps with either one-stop truckers shop (OSTS) or one-stop truckers and tourists
shop (OSTTS) — called Ghar —by 2012. The Indian operations of the US-based
food retailer has completed over 12 years. McDonald’s has become household
name, especially for its burgers and french fries. It made a joint investment of
around Rs 1,000 crore in the past five years, which also includes investment in
strengthening back-end supply-chain to ensure uninterrupted supply of inputs, Mr
Jatia said.
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For its back-end supply-chain, the company has tied up with French company
McCain for french fries, besides Vista Processed Foods and Dynamix Dairy for
buns and dairy products. Pricing StrategiesWorldwide McDonald’s is known for
its ‘Purchasing power’ pricing. The ability to pay-of a large section of customers
has been the sole criteria. This was assessed through market research. It wanted to
price its products in such a way that it can even be accessible to a child. For this it
examined Indian spending on snacks and other foods before setting on the
prices.Price variations from 1996 to 1998 for a couple of items are as follows:
Item Entry level (1996) (1998)
Mc Burger Rs. 12 Rs. 14
Maharaja Mac Rs. 412 Rs. 46
One look at the restaurant and it doesn’t seem that the prices of its products would
be this low. Reason being that McDonald’s gets the materials (55 percent of an
outlet running expenses) at very cheap rates. Therefore this is one of the reasons
that Mc Donald’s products are priced reasonably. It buys its supplier from 35
suppliers who sell at incredibly low prices. Products at McDonald’s are neither
elitist in its pricing nor at the dhaba level, they are average in its
pricing.Promotional StrategiesMcDonald’s ad line goes like:“Food Family
Fun”McDonald’s had started its promotional activity with local area banners and
posters and now it has moved on to movie hall commercial. Its commercial is a 60-
second close up which focuses on a burger being prepared in slow motion
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tantalizing the audience as though it’s a strip tease.It has even started advertising
through local channels such as citi cable.Mudra is the ad agency which puts up
publicity banners in Delhi and Mumbai and takes up the local T.V. commercials.
Newspapers such as Delhi times are also being used for local advertising.
McDonald’s plans to advertise in national newspapers such as Hindustan Times
and Times of India in another couple of months.In addition to this McDonald’s
also has a public relation agency handling its account that takes care of publicity
and press releases.McDonalds keeps on coming up with sales promotion schemes
every now and then. During World Cup Soccer it came up with this soccer game
for Rs.11/- with every meal combo ordered. Since kids are the prime targets by the
restaurant, it has come up with happy meals especially for the kids along which a
game is free.Also, for the kids McDonald’s is the most happening place for
birthday parties kids love the place due to all the attention and knick knacks they
are showered with. The restaurant even has play pens displayed especially for the
kids. Another way through which McDonald’s is promoting its image is via
community services. There are Mc Sermons on maintaining parks, conducting
litter patrols and putting up public trash cans.At majority of McDonald’s
restaurants, the management emphasizes on developing parks for the kids as a play
ground for them. Eg. At McDonald’s G.K. restaurant there is a play ground
developed for the kids in front of the restaurant. The management has put boards at
these parks to put across certain messages for the community as a whole, such
as:“If you see someone without a smile, give them one of yours”; “Children are the
light of our future” etc.In addition to all these promotional measures, McDonalds
has boards put all over the roads to show directions to their restaurant. These
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boards are put almost two to three kms before the location of the restaurant. This
makes it easier for the customer who is not familiar with McDonald’s restaurant
location.Distribution Strategies At McDonald’s, while opening a restaurant the emphasis
is, to choose a site whereby 150-200 seating capacity can be available. This is to attract as many
people as possible into its premises.
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CUSTOMER DEMANDThe factors influencing customer demand
for McDonald’s menu items are as follows:McDonald’s world wide is known for
its quality burgers. This world wide name for burgers has influenced the demand
for it in the Indian market. This can be known from the fact that within two years it
has served about 10 million customers at its restaurants.
The factor that influences customer demand for the organizations product to a
great extent is the offering of highest quality product, providing services which
is fast friendly and accurate, creating a restaurant atmosphere which is always
clean, comfortable and ideally suited to India families and children.
McDonald’s products are offered at a value which can be affordable by the
maximum number of Indian consumers.
The Chain of restaurants provides a variety of comfortable seating arrangement
to accommodate different size groups of people from individuals to large
families.
AN OVERVIEW OF NIRULA’S
The starting of the ‘Chinese room’ Restaurant and introduction of espresso coffee
for the first time in India by Nirula’s was done in the 1950’s. The 60’s witnessed
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the opening of two speciality restaurants, La Boheme a modern restaurant serving
Hungarian food & Gufa an Indian speciality restaurant.the 70’s saw the company
venture into the fast food business with the Pastry shop, Snack Bar, Hot Shoppe
and Ice Cream Parlour. The potpourri restaurant with the first Salad Bar in india
was also opened in this period.
The eventful decades of 1980’s &1990’s saw the opening of the Central Kitchen
and Family Style Restaurants at Vasant Vihar, Chanakya, Defence Colony, Noida
and numerous other strategic locations in the NCR.
Today, the Noida production facilities include the Bakery, Confectionery, Cheese
Plant, Ice Cream Plant, Food Processing Unit and Hot Kitchen.
Nirula’s widened its presence in North India with the opening of restaurants in
Panipat, Dehradun, Chandigarh and Lucknow. Association with Indian oil
corporation in 2005 witnessed the opening of new outlets at gas stations at
Dwarka, Punjabi Bagh, Janakpuri, Gurgaon and Chandigarh.
In June 2006, Navis Capital Partners and Managing Director, Samir Kuckreja
acquired the Nirula’s Group of Companies.
After the acquisition, a new senior management team was created by drawing the
best talent in the industry. The new team at Nirula’s undertook a massive brand
revamp exercise. While retaining the brand name and logo of “Nirula’s”, new sub-
brand logos were created for Nirula’s ice-creams, Pastry Shop, delivery business
and others.
The Synovate Hotspots Report 2007 on India mentions Nirula’s as the only Indian
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food chain amongst MNC’s to be in the top five in India.
The company plans to venture into a large number of quick service restaurants in
every major city in India by the end of this year. With an aggressive expansion
strategy, the organization plans to have a national presence by opening 150 new
restaurants in the next 3 years. These will include Restaurants, Ice cream kiosks
and Express Outlets at shopping malls, petrol pumps and other high football
locations.
PRODUCTS
SHAKES & BEVERAGES
1) Milk Shakes
2) Ice Cream Shakes
3) Ice Cream Sodas
4) Cold Coffee
ICE CREAMS & SUNDAES
1) Ice Cream Novelties
2) Triple Sundaes
3) Ice Cream Tub 500 ml
4) Ice Cream Brick 1 Litre
BURGERS & PIZZAS
1) Burgers
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2) Large Pizzas
3) Regular Pizzas
CAKES, PASTRIES, DESSERTS & SWEETS
1) Cakes
2) Pastries
3) Sweets
4) Desserts
PATTIES, COOKIES, SOVARIES & BREADS
SANDWICHES, SOUPS, HOT NUMBERS, PLATTERS & CURRIES
BURGERS
(in variety)
PIZZAS
(in variety)
ICE CREAMS
(in variety)
ADDITIONAL
(in variety)
15 20 30 8
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Served as meal
combos too with
fries and coke
Available at three
sizes -----
Includes tandoori
items, foot longs,
Hot nos. etc.
CUSTOMER DEMAND
The factors influencing customers demand for Nirula’s menu items are as follows:
. Adapting the western style fast food to Indianized tastes and standards.
. Long term brand image built by the restaurant over the last 50 years.
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. Nirula’s as a restaurant has its own image and distribution vis-à-vis others in the
market. At Nirula’s the customer can choose from Indian tandoori items to western
style burgers and pizzas.
. Nirula’s restaurant has been placed at the most looked open places. One can find
Nirula’s joint at the most popular markets, cinema complexes and bowling alleys.
. The restaurant has been placed as a family style restaurant in the market.
Considering this the inside of restaurant is such that there are enough places for
families to come and enjoy their meal.
AN OVERVIEW OF PIZZA HUT
Pizza Hut Inc. is a restaurant chain and international franchise based in Addison,
Texas, USA(a northern suburb of Dallas) specializing in American-style pizza
along with side dishes including (depending on location): buffalo wings,
breadsticks, and garlic bread. Pizza Hut is the world’s largest pizza restaurant
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chain and is a subsidiary of Yum! Brands, Inc., whose restaurants total
approximately 34000 restaurants, delivery-carry out units, and kiosks in 100
countries.
The chain was founded as a pizzeria in 1958 by the Carney Brothers – Dan and
Frank. Borrowing $600 from their mother, the brothers purchased some second-
hand equipment. They then Wichita state university students took a family pizza
recipe, rented a small building, and opened the first restaurant at a busy
intersection in Wichita, Kansas. Additional restaurants were opened with the first
franchise unit opening in 1959 in Topeka, Kansas. At the same time Pizza hut was
growing in and around Kansas, Shakey’s Pizza was developing a stronghold along
the West coast. The competition provided Pizza Hut the impetus tp evaluate its
mission and direction. Dan and Frank Carney saw Shakey’;s expanding into their
territory and realized that they needed to determine if Pizza Hut should be in the
entertainment business or if it should be a neighborhood pizza restaurant. They
decided to stick with the neighborhood business and realized that they needed to
have a good standard image. The Carney Brothers began to systematize operations
and buildings designs to counter the competition from Shakey’s. The franchise
network continued to grow through friends and business associates, and by 1964 a
unique standardized building appearance and layout was established for franchised
and company –owned stores, creating a universal look that customers easily
recognized. By 1970, with 310 stores nationwide, Pizza Hut went public on the
New York Exchange under the stock ticker symbol PIZ. In 1997, the three
restaurant chains were spun off into Tricon, and in 2002 joined with Long John
Silver’s and A & W restaurants to become YUM! Brands.
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Pizza Hut in India
Pizza Hut came to India in 1996 with a dine-in restaurant in Bangalore that had
special vegetarian pizzas. In addition to traditional toppings, it incorporates Indian
favorite foods such as Chicken tikkas, Lamb korma and other dishes, in its list of
innovative toppings. However, one would be hard pressed to find beef toppings
since the cow is considered a sacred animal. No beef on the menu is to comply
with the Hindu majority. Along with pizzas, the menu features appetizers such as
garlic bread and soups, fresh salads, oven-baked pastas and choice of ice cream
sundaes. They have some American and Italian foods other than just Indian foods.
They have pepperoni pizzas as well as cheese and the like. They have different
types of meal orders such as the Four Course Menu. In the Four Course Menu you
can get garlic bread (with or without cheese), a small bowl of soup (mushroom or
tomato basil), a small personal pan and a dessert of mango ice cream.
PRODUCTS
. Specialty
5) Super Supreme TM
6) Mountain Fantastico
7) BBQ Deluxe
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8) Mediterranean Meats Deluxe
Favorites
1) Supreme TM
2) Chicken Supreme TM
3) Vegetable Supreme TM
4) Meat Feast
5) Pepperoni Feast
6) Vegetarian Hot One
Classics
1) Hot ‘n’ Spicy
2) Hawaiian
3) Farmhouse
4) Margherita
AN OVERVIEW OF DOMINOS
Domino’s Pizza India Ltd. was incorporated in March 1995 as the master
franchisee for India and Nepal, of Domino’s Pizza International Inc., of USA.
Moreover, the company holds the master franchisee rights for Sri Lanka and
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Bangladesh through its wholly owned subsidiary. Mr. Shyam S. Bhartia and Mr.
Hari S. Bhartia of the Jubilant Organosys Group were the promoters of the
company.
Since inception, Domino’s Pizza India Ltd. has proceeded to become one of the
largest and fastest growing international food chains in South Asia. The first
Domino’s Pizza store in India opened in January 1996, at New Delhi. Today,
Domino’s Pizza India has grown into a countrywide network of over 165 outlets in
33 cities and is the leader in the fast food delivery segment.
Ever since it was established, Domino’s Pizza India has maintained its position of
market leadership with its constant product innovation and maintenance of
stringent service standards. More importantly, it has established a reputation for
being a home delivery specialist capable of delivering its pizzas within 30 minutes
to its community of loyal customers from its entire chain of stores around the
country. Customers can order their pizzas by calling a single countrywide Hunger
Helpline – 1800-111-123. In fact, Domino’s was the first one to start this facility
for its customers.
Domino’s vision is focused on “Exceptional people on a mission to be the best
pizza delivery company in the world!” Domino’s is committed to bringing fun and
excitement to the lives of our customers by delivering delicious pizzas to their
doorstep in 30 minutes or less, and all its strategies are aimed at fulfilling this
commitment towards its large and ever growing customer base.
Domino’s constantly strives to develop products that suit the tastes of its
customers, thereby bringing out the Wow effect (the feel good factor). Domino’s
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believes strongly in the strategy of ‘Think Local and Act Regional’ that is subtly
blended with a playful images personified by its ‘Hungry Kya’? positioning. Thus,
time and again Domino’s has been innovating toppings suitable to the taste buds of
the local populace and these have been very well accepted by the Indian market.
PRODUCTS
. Veg. Pizzas
Non Veg. Pizzas
. Side Orders
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. Beverages
.Choice of Crusts
. Choice of Toppings
5) Classic Hand-Tossed
6) Ultimate Deep Dish
7) Crunchy Thin Crust
8) Brooklyn Stylex
AN OVERVIEW OF SUBWAY
SUBWAY is the name of a franchise fast food restaurant that mainly sells
sandwiches and salads. It was founded in 1965 by Fred De Luca and Mark Fudge.
The corporation that owns the trademarked name of Subway is Doctor’s
Associates, Inc. (DAI). The company has over 28400 franchised units in 87
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countries as of September 2007 and is the fastest growing franchise in the world.
Currently, Subway is the third largest fast food chain globally after YUM! Brands
(34000 locations) and McDonald’s (31000 locations).
Subway’s main operations office is in Milford, Connecticut, and five regional
centers support Subway’s growing international operations. The regional office for
Europe’s 1000 stores is in Amsterdam, Netherlands. Australia and New Zealand,
with over 2100 outlets, is supported from Brisbane, Australia. The 300 Middle
Eastern locations are supported from Beirut, Lebanon. Singapore supports the
300+ Asian Locations. The Latin American Support Center in Miami assists over
1100 restaurants. In the UK and Ireland the company hopes to have 2010
restaurants by the year 2010.
Many restaurant analysts attribute Subway’s fast growth to the growing concern on
health by restaurant customers, a trend that Subway has taken advantage of in its
marketing. In 1999, an Indiana University student named Jared Fogle lost 245
pounds (110 kg) with a diet made up mostly of Subway sandwiches combined with
exercise. The story is used by Subway as a large part of their marketing campaign
to this day. Jared has emerged as a spokesman for Subway, furthering their image
as a health-conscious restaurant chain.
Fred DeLuca borrowed $1000 from family friend Dr. Peter Buck to start his first
sandwich shop in 1965, when only 17 years old. He was trying to raise money to
pay for college. He choose a mediocre location for his shop, but by noon on the
first day of the opening, customers were pouring in. On the radio advertisement
they had promoted the name as “Pete’s Subway”; eventually it was shortened to
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“Subway”, as it is known to this day. As of 2006, the company counts with over
25000 franchised locations in 84 countries and produces US$ 9.05 billion sales
every year. In 2007, Forbes magazine named DeLuca number 242 of the 400
richest Americans with a net worth of 1.5 billion dollars.
When the company was founded, Dr. Peter Buck, co-founder, was a scientist with
a doctoral degree, and Fred De Luca had aspirations of becoming a medical doctor.
Hence the name Doctor’s Associates, Inc.
It was the summer of ‘65. “Satisfaction” was blasting from the speakers of newly
minted Mustangs and GTOs, Lyndon Johnson was in the White House and the
New York World’s Fair was offering a hope-filled but commercialized glance into
the future.
It was that very future that Fred De Luca was concerned about. Having just
graduated from high school, young De Luca turned his thoughts toward achieving
a higher education. An education would no doubt be the key to success; the type of
success that not even Fred himself dared to dream about. At this moment in time, a
college education seemed as far- flung as the prospect of a man walking on the
moon.
It was a typically hot and humid summer day in Bridgeport, Conn., when the De
Luca family’s phone rang. Dr. Peter Buck, a family friend called to announce that
he had changed jobs and was moving his family to Armonk, New York, only 40
miles away. It was time for celebration; indeed, for it had been almost a year since
the Buck’s and the De Luca’s parted company.
Plans were quickly made for a reunion. It was on that fateful Sunday afternoon in
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July, 1965, during a barbecue at the Buck’s new home, that a business relationship
was forged between young Fred De Luca and Dr. Buck that would forever change
the landscape of the fast food industry.
During the summer of ’65, there wasn’t that much hopes that the eldest De Luca
child would have enough money to pay for his college tuition. He was a hard
working, competent and dependable young man but the $1.25-per-hour minimum
wage job that he had at the local hardware store wouldn’t begin to pay for an
education.
As they pulled into the Buck’s driveway, it occurred to Fred that perhaps he could
ask Pete for some advice. He half expected Dr. Buck to offer to loan him the
money. After all, they had known each other for years and when Pete would learn
how badly Fred had wanted to go to college, to study to become a medical doctor,
there might be a good chance that he would offer to help.
“I think you should open a submarine sandwich shop,” said Buck.
“What? What an odd thing to say to a seventeen-year-old kid,” thought Fred.
Before Fred could respond or express his surprise, he heard himself say, “How
does it work?”
Pete explained the submarine sandwich business. He said that all one had to do was
to rent a small store, build a counter, buy some food and open for business.
Customers would come in, put money on the counter and Fred would have enough
to pay for college. To Pete, it was just as simple as that, and if young Fred was
willing to do it, Pete was willing to be his partner.
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As the De Luca’s were getting ready to leave, Dr. Buck pulled out his checkbook
and wrote a check for $1000. That was his investment in their new venture.
On the drive back home, little did Fred know that if he succeeded at opening a
submarine sandwich shop, he would accomplish more than funding his education.
Success would mean financial independence and everything that comes with it, not
just for him, but for many other people around the world. Success would mean
adventure and excitement on a non-stop roller coaster ride that would eventually be
called SUBWAY Restaurants.
The duo had worked hard over the years. In fact, they had a goal of opening 32
submarine sandwich shops within 10 years. By 1974 they owned and operated 16
units throughout the state of Connecticut. Although it seemed unlikely that they
would double that number in two years, De Luca concentrated on expanding
SUBWAY Restaurants.
PRODUCTS
Aloo patty
Paneer Tikka
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Veg. Shammi
Veggie Delite
Veggie Patty
Chicken Ham
Chicken Hot Dog
Chicken Meatball
Chicken Seekh
Chicken Teriyaki
Chicken Tikka
Italian B.M.T.
Lamb Steak
Roasted Chicken
All these products are available in different sizes and price ranges.
COMPARITIVE ANALYSIS
A comparative analysis for the above mentioned fast food chains has been made on
the following six parameters:
Performance
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Variety
Price
Accessibility
Service
Customer Base
Performance
Nirula’s started its operations in the country as early as in 1930’s but its first fast
food restaurant came up around in 1950’s. This means that the chain is about five
decades old. So when compared to other competitors they are the oldest in the
field.
Though Nirula’s are the oldest but each of these chains has its own reputation and
name in the market. Nirula’s being in the country for so long still has its
distinguished fan following and is surviving in the market despite the entering of
international chains like McDonald, Dominos, Pizza Hut and Subway.
Here McDonald, Nirula’s and Pizza Hut are performing well. But Subway is still
struggling for its identity and they still have got a long way to go.
Each of these chains has its own reputation and name in the market. Nirulas being
in the country for so long still has its distinguished fan following and is surviving
in the market despite the coming in of the international chains such as McDonalds
and Pizza Hut. Nirulas is considered to be more of a dine–in eating place than a
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fast food joint like the other two. Most of the time the customers coming in at
Nirulas are not in a hurry to leave, they want to relax and enjoy their meals. In
contrast Mc Donald’s, Pizza Hut and Dominos are considered to be a place to grab
a bite or a quick take away fast food joint. McDonald’s in US is a lunch time place
from which customers keep away in the evening. Nirulas on the other hand is
packed after dusk with carloads of families to have dinner. Despite McDonald’s,
being placed as a comfortable family eating restaurant, a person would come to the
restaurant to have a quick meal for lunch or dinner alone or with his family.
When McDonald’s came up in locations where Nirulas was already established, it
affected the restaurant drastically in the initial few months.
Variety
When it comes to variety then Nirula’s is the favorite because they offer large
variety of burgers, pizzas. Ice creams and Additional offerings when compared to
others like McDonald, Pizza Hut etc. McDonald mainly concentrates on burgers
and ice creams. Pizza Hut and Dominos on the other had relies on pizzas in many
varieties. So Nirula’s tops the chart in terms of variety.
Price
Each of the products at Dominos, Nirulas, Pizza Hut and McDonalds are priced so
as to suit everyone’s pocket.
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When McDonald’s opened its first restaurant in the country it adopted a price
strategy whereby all its products were priced lower than the domestic counterparts.
It had priced its chicken burger at Rs. 39, a rupee below Nirulas equivalent in
1996.
Another interesting feature of these restaurants is the meal combos that they serve.
All these five food joints offer these meal combos with a combination of burger +
pepsi + fries. Basic idea behind this is to offer meals at a very economical rate.
However, from the market research study conducted, price is considered to be the
fifth most important variable while selecting a fast food joint because they are
considered to be the place to freak out and fun. So a marginal difference in the
price ranges of these outlets does not make any noticeable impact on the
consumption of the fast food or the visits of the customers. The emphasis is more
on quality of food, cleanliness, variety and speed of delivery.
Accessibility
Every restaurant has to be placed at the right location such that it attracts the
maximum number of customer into its premises. All these restaurants in the city
are located at the most frequently visited places by the customer. This way
anybody going for shopping, watching a movie or just playing some games doesn’t
have to go to another part of the city to have meals. Whereas Pizza Hut and
Dominos delivers there products at the doorsteps. So they do not need to place
themselves in shopping malls etc. but the location of the outlets matters for quick
delivery of the products.
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When we compares McDonalds to Nirulas, Nirulas has an added advantage of
home delivery. However, all the restaurants are located at the most frequently
visited places by the people such as shopping areas, cinema halls, bowling alleys
etc.
Service
Services here can be classified in to
Reception
Method of collecting the offer
Delivery of order
Mode of payment
McDonald’s takes the share on this attribute for providing the customer with fast
and friendly services. At McDonald’s you get your order usually within 60 to 90
seconds from the time it is placed. Providing the customer with fast and friendly
services is under the philosophy of McDonalds.
McDonald’s, Dominos and Pizza Hut have an assembly line approach to fast food
where a certain number of orders are already prepared/cooked, the idea is that as
soon as the payment is made at one counter, the food can be picked from the next
almost instantly. On the other hand Nirula’s are serving the customers through
their restaurants and home delivery both.
But whatever may be the case, provision of fast and friendly services to the
customer is very important for any fast food restaurant. In the market research
study services is the unique factor for McDonald’s that attracts the customer to its
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restaurant. The customer prefers being served by a friendly counter assistant than
someone who is arrogant and least interested in entertaining the customer properly.
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Q1.How often do you get the services of the fast food outlets?
Do not visit Occasionally Monthly weekly More than once a week
18 14 43 68 7
NO. OF VISITS
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ANALYSIS OF THE TABLE
The analysis of the table suggests that most of the individuals visits or receives the services of these fast food outlets weekly or monthly.
The analysis of the table shows that 90%of the surveyed population receives the services of these outlets. Here one more thing that is
noticeable is that very less no. of individuals visits or gets the services of these outlets more than once in a week.
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Q2What is the expenditure for you per visit?
Less than Rs.50-------------------- Rs.50-100---------------------
Rs.100 -50-------------------------- Rs.150 & more------------------
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ANALYSIS OF THE TABLE
The analysis of the table suggests that about 80% of surveyed individuals spends in the price range of (50Rs and above). On an average
we can find out that average spending per person per visit is 100Rs/-
In this analysis the individuals do not visits the fast food outlets are not taken in account. Out of 150 individuals 18 said that they never
visit these outlets.
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Q3Mention your favorite joint ----------------------------------------------------
From the above mentioned 5 chains.
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ANALYSIS OF THE TABLE
The analysis of the table suggests that McDonald’s is the most preferred fast food outlet when compared to other service providers. Pizza
Hut and Nirula’s are having almost same no. of customers. For finding out the factors that affect this presence of individuals we will go
for another question.
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Q4Which is the most important factor do you consider while selecting a fast food restaurant:
a) Price ---24--------- d) Accessibility ---22----------
b) Quality ---39------ e) Variety ----30-----------------
c) Speed ---8--------- f) Hygiene ----21----------------
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ANALYSIS OF THE TABLE
The analysis of the table suggests that quality is the most important factor that affects the choice of the individual customers. Other
factors are the less important when making a choice between the retail outlets.
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Q5 Which of these do you think is the reason of these fast food outlets becoming so popular these days? Make a tick in front of factor
that is responsible for such situation. (Only one factor is to be marked)
a) Status symbol ----------------------
b) Rise in income ----------------------
c) Changing mindset ------------------
d) Urbanization -------------------------
e) Just for fun ---------------------------
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ANALYSIS OF THE TABLE
The analysis of the table suggests that rise in income level of customers, need for status and urbanization are the factors that forces
individuals towards these fast food outlets. People also visits and receive the services of these outlets for fun. Changing mindset of the
individuals is also considerable factor.
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FINDINGS OF THE PROJECT
1) The study shows that the individuals who visits or gets the services of these
outlets are approximately 85% of the total individuals surveyed.
2) Most of the customers visit the outlet once in a week or once in a month.
3) Average spending per person per visit is 100-150 Rs/-
4) McDonald’s is the most preferred chain in the region.
5) Quality and variety are the most important factors that differentiate one outlet
from other.
6) Rise in income level and need for status are the factors that are responsible for
the growth of these outlets.
LIMITATIONS
There are following drawbacks in the findings:
First and foremost limitation is lack of time.
Sales figures (current and past) could not be made available for any of these
restaurants.
Personal biasness of the individuals is another limitation.
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SAMPLE QUESTIONNAIRE - II
Dear Respondent,
As a student of marketing, research study on fast food restaurants is being
conducted. Your views on the subject would be appreciated.
Q. 1How often do you visit the following fast food joints?
Don’t visit Occasionally Monthly Weekly more than once a
week
NIRULAS
MCDONALD’S
DOMINOS
PIZZA HUT
SUBWAY
Q. 2. What is the expenditure for each person per visit?
Less than Rs. 50 Rs. 50 - 100
Rs. 100-50/- Rs. 150 & More
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Q. 3. Which all criteria do you consider while selecting a fast food restaurant?
Price Accessibility
Quality of food Variety
Speed of Delivery Hygiene
Cleanliness/hygiene Décor
Q.4. Mention your favorite joint _________________________________
From the five stated before, how would you rate the restaurants on a scale of 1
to 5, (5 satisfies all your requirements, 1 does not)
Overall satisfaction Overall
Dissatisfaction
5 4 3 2 1
Accessible Very far
Good Quality Poor Quality
Good Service Poor Service
Offers Variety No Variety
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Spacious Conjusted
Value for
money
Not worth the price
Q. 5. Please provide the following details:
Name Age
Occupation Address
Q.6Which of these do you think is the reason of these fast food outlets becoming
so popular these days? Make a tick in front of the factor that is responsible for such
situation. (Only one factor is to be marked)
a) Status symbol ----------------------
b) Rise in income -----------------------
c) Changing Mindset -----------------------
d) Urbanization -----------------------
e) Just for fun -----------------------
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CONCLUSIONS AND RECOMMENDATIONS
CONCLUSIONS
Indian food market has witnessed several entrants into the country over the past
few years. Each of the established food chains and the ones entering the market
pose a threat to each other. In the food market each restaurant faces competition
from 1000 other restaurants, it could be a 5-star restaurant or a roadside dhaba. In
order to prove itself, the restaurant has to have a well-defined marketing strategy
and famous brand recognition to survive in the market.
The five fast food chains whose marketing strategies have been compared and
analyzed also need to look on their marketing strategies to do more than just
survive in the market (Certain recommendations have been put forth in the coming
pages).
The attractiveness of the five restaurant chains in the fast food market can be
judged from the following factors:
Existing Competition
The Indian food market today has many established global chains that have opened
their restaurants at major cities in the country. It is only those restaurants who have
built their image over many years in the country i.e., Nirulas and world famous
brands such as McDonald’s are the ones to sustain themselves in the market. Any
other restaurant below this caliber would not have the power to fight these joints.
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Nirulas has the power to fight competition because it is not identical to the MNC
chains and has not duplicated their policies. Also as long as it continues to deliver
value to its customers it is unlikely to feel the heat of competition.
Substitutes Available
There are end number of substitutes available to the customer for fast food in the
market. The customer can choose from traditional Indian cuisine to specialty
cuisine such as Chinese, Italian, Thai etc. For the three fast food joints there must
be more than a thousand restaurants to choose from as substitutes. Even Dominos
burger could be a substitute for Nirulas Pizza or vice versa. It all depends on the
choice of the customer of what he wants to have.
Likely New Competition
Looking at the changing lifestyles and the disposable income of the middle class
increasing, the food market has enormous potential. McDonald’s with its
“purchasing power pricing” policy however has dominated the middle class
segment in the market. Until and unless some chain with the same policy attacks
the market, McDonald’s does not have any threat from new burger chains entering
the market. For Nirulas however it is the variety and the location factor which can
save the chain from new competition.
The conclusion of the above discussion is that consumer perceive these outlets in
positive manner (visits them regularly). The future of organized fast food market in
India seems to be bright.
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RECOMMENDATIONS
As 20% of the surveyed individuals still do not visits the fast food outlets
so potential lies for the existing players and new entrants.
The consumers are looking for variety and quality so the fast food joints
must focus on providing variety and quality to the customers.
Price is not that important for customers so fast food joints can increase
their prices in order to serve with better quality and more variety.
McDonald’s tops the chart because of its concept of Q,S,C &V. So other
competitors should also take care of quality, service, cleanliness and
variety.
For the purpose of growth of each ot the thee fast food restaurants i.e., Nirulas,
Wimpy’s and McDonald’s certain recommendation have been given below:
McDONALD’S
Variety : Mc Donald’s should start considering new additions to its menu
looking at the expansion plan the company has lined up for India. It cannot do
much until and unless it makes new additions to the menu.
Being an international chain, there is scope for drive in restaurants in certain
joints of McDonald’s. The new outlets, which the company plans to come up
with, this would be an excellent way of introducing something new in the
country.
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NIRULAS
Accessibility: Nirulas should look at more and more places like “Destination
Point” and “Leisure bowl” to expand its chain of outlets.
Standard of hygiene: People of India are becoming more hygiene conscious.
Therefore the management needs to become more hygiene conscious. The
restaurant should start providing with disposable spoons, plates etc., Mineral
water should also be provided free of cost.
Décor : Any new restaurant that Pizza Hut plans to come up with should be
spacious, vibrant and give a pleasant look.
Services : Staff needs to be more efficient and friendly.
Other than the variety provided by Nirulas a low calorie diet could also be
added to its menu. This would attract health conscious people into the restaurant
thus improving its customer base.
The company’s plan of opening up of outlets in West and South East Asia
should be materialized as soon as possible as this would affect the image of the
restaurant nationally.
Common Recommendations for all three : Overnight services could be started
by a few joints of Nirulas, Dominos and McDonald’s. Since overnight services
are there at McDonald’s restaurants in certain parts of the world, it could start
these services in India too. However these restaurants can quote extra charges
for their service after 12’O clock midnight.
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APPENDIX - I
Percentage wise preferences
Assumptions
A visit occasionally implies – once in two months.
A visit more than a week implies – twice in a week.
Average expenditure per person in Rs. 100/- (by analysis of 0.2).
Keeping the above in mind weights of no of respondents can be given as: Do not
Visit Visit Visit More than
Visit Occasionally Monthly Weekly Once a week
0 1 2 4 8
Therefore expenditure incurred by 20 respondents at the stated fast food restaurants
would be:
NIRULAS
0 + (12x100) + [2x 2(100)] + [3x4 (100) ] + ]3x8(100)]
= 0 + 1200 + 400 + 1200 + 2400 = 5200
MCDONALD’S
0 + [5x100] + [4x2(100)] + [ 4x8(100)]
= 500 + 800 + 3200 = 4500
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DOMINO’S
0 + [8x100] + [6x2(100)] + [4x4(100)] + [1x8 (100)]
= 800 + 1200 + 1600 + 800 = 4400.
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APPENDIX - II
Assessment of Frequency of visit No. of Respondents
Name Do not
visit
Occasionally Monthly Weekl
y
More than
once a week
NIRULAS - 12 2 3 3
MCDONA
LD’S
4 9 8 12 6
DOMINOS 1 8 6 4 1
PIZZA HUT
3 4 7 3 2
SUBWAY 5 4 5 3 2
Assessment of Preferences indicating favorable fast food joint
Name No. of Respondent % of Respondents
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NIRULAS 5 19%
MCDONALD’S 10 40%
DOMIONO’S 5 19%
PIZZA HUT 5 19%
SUBWAY 1 3%
APPENDIX - III
Page # 70
Attribute No. of Respondents
Price 12
Quality 20
Speed of Delivery 15
Cleanliness/hygiene 18
Accessibility 11
Variety 16
Space 9
Décor 8
\
BIBLIOGRAPHY
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1) RETAIL MANAGEMENT, Berman & Evans
2) CONSUMER BEHAVIOR, Henry Assell
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