expansion of taco bell(us based mexican fast food chain ... of taco bell(us based mexican fast food...

Download EXPANSION OF TACO BELL(US based Mexican fast food chain ... OF TACO BELL(US based Mexican fast food chain) IN ... that has well developed fast food joints like KFC and PIZZA HUT in

Post on 29-Mar-2018

215 views

Category:

Documents

1 download

Embed Size (px)

TRANSCRIPT

  • 1 | P a g e

    MASTER OF INTERNATIONAL BUSINESS, DELHI SCHOOL OF ECONOMICS

    EXPANSION OF TACO

    BELL(US based Mexican

    fast food chain) IN THE

    INDIAN MARKET

    POOJA DADLANI Roll no.-48

    8/4/2013

  • 2 | P a g e

    Undertaking

    I hereby give a formal undertaking, in writing that the research design

    that I have prepared here, is in pursuance of an academic study being

    given to us by our faculty. It is solely for academic purpose to complete

    the course.

    I also undertake to certify, to the best of my knowledge, the genuineness

    of the sources mentioned in the report design.

    Pooja Dadlani

    Roll no.-48

  • 3 | P a g e

    Acknowledgements

    The following research project EXPANSION OF TACO BELL(US based Mexican fast food

    chain) IN THE INDIAN MARKET was successfully completed under the guidance of Prof. S

    R Khanna, Lecturer, Department of Commerce, Delhi University.

    I also thank my group members & friends for their valuable suggestions, comments and criti-

    cism. They have been welcoming enough to provide me with all the required help that has ena-

    bled me to make this project a success.

    POOJA DADLANI

    Roll no. 48

    MIB 2012-2014

  • 4 | P a g e

    EXECUTIVE SUMMARY

    The research design proposed here aims to devise a market research plan for Taco Bell (a US

    based fast food chain) to enter Indian fast food industry. This research design includes the esti-

    mated cost analysis of primary and secondary research to be conducted by the company before

    entering into Indian market along with that country analysis and the potential in Indian food in-

    dustry has been theoretically analyzed. Taco Bell has opened two outlets in Bangalore in South

    India. The research here aims at the strategy that should be adopted by this fast food company to

    penetrate into the Indian market to a large extent.

    The foray of multinational fast food retailers into India has impacted the taste buds of Indian

    consumers significantly. Instant food is scoring over traditional food due to influence of Western

    countries, and rise in income & subsequent standard of living, convenience, etc. As a result, fast

    food menus are gaining wider acceptance from the Indian consumer. The Indian fast Food Indus-

    try has witnessed high growth strides in the past years, with increasing disposable income; expo-

    sure to a number of cuisines; and consumers willingness to experiment a mix of both Western

    and local menu. It has not only provided convenience to people who shuttle between home and

    work for a bigger part of the day but also eliminated the requirement of conventional cutlery.

    This industry at the moment thrives on international appeal endorsed by niche chains. The devel-

    opment of nutritious and healthier replacements for the traditional servings at fast food restau-

    rants has transformed into mass promotion of portable foods. As per a new research report titled

    Indian Fast Food Market Analysis, currently the Indian fast food industry stands at a massive

    size of ` 47 billion, driven by a growing number of working professionals and increasing west-

    ernization. Apart from this, busy life schedule, standardized food, and less time-consuming pro-

    cesses are also fuelling the demand from domestic consumers in the industry. As demand for all

    types of fast food items are consistently on the rise, pizza, burger, and French fries have become

    the all time favorite among young Indians, more so with some of the well-known burger and piz-

    za restaurants like McDonalds, Dominos, KFC, Pizza Hut, Nirulas etc, operating in INDIA.

    Being a subsidiary of YUM Brands that has well developed fast food joints like KFC and PIZZA

    HUT in India, Taco Bell has good potential to be successful in the Indian food industry. Using

    the expertise and experience that these brands have, Taco Bell should be able to use resources

    well and expand in the right markets.

  • 5 | P a g e

    TABLE OF CONTENTS

    TOPIC PAGE NO

    1. Executive summary 4

    2. Objectives of the Study 6 3. Research methodology 7

    4. Financial and time budget 9 5. Sample questionnaire 11 6. Analysis of target country- India 14 7. Entry strategies for foreign investors 17

    8. Fast food industry 21

    9. Indian food service industry 24 10. Fast food industry in India 26 11. Taco Bell- History and background 33

    12. SWOT analysis 36 13.Selection of taco bell to expand in the Indian market 40

    14. Porters five forces 44

    15. Marketing mix 45

    16. Taco bell in the Indian market 49

    17. Results 50

    18. References 51

    LIST OF GRAPHS

    Graph no. Page no.

    1. India imports 16

    2. India food service industry market size 24

    3. India food service industry segments 25

    4. India food service industry organised sector 25

    5. Growth of Qsrs in India 26

    6. Growth of urban population 29

    7. Comparison of fast food chains worldwide 42

    8. Yum International 43

  • 6 | P a g e

    OBJECTIVES

    To devise a market research plan for expansion of Taco Bell in Indian Food market that

    has two outlets operating in Bangalore along with cost estimates of primary and sec-

    ondary research.

    To study marketing adopted by Taco Bell in other countries.

    To analyse the current Food service industry in India

    To find the factors those have been drivers for the growth of this industry.

    Make suitable suggestions and recommendation for Taco Bell before expanding into

    Indian market.

    METHODOLOGY

    Conduct a survey targeting urban population going to Quick Service Restaurants, online

    and in person asking their responses to analyse their fast food consumption pattern.

    Interviews with Resource Persons actively involved in the operations of other fast food

    chains in India.

    Collect and analyse secondary data collected through internet, etc.

    SAMPLING DESIGN

    The Population of the study will consist of:

    People visiting Quick service restaurants often, mainly urban population

    Resource Persons actively involved in the operations of other fast food chains in India.

    .

  • 7 | P a g e

    RESEARCH METHODLOGY

    The system of collecting data for research projects is known as research methodology. The data

    may be collected for either theoretical or practical research for example management research

    may be strategically conceptualized along with operational planning methods and change man-

    agement.

    Some important factors in research methodology include validity of research data, Ethics and the

    reliability of measures most of your work is finished by the time you finish the analysis of your

    data. Market research provides relevant data to help solve marketing challenges that a business

    will most likely face--an integral part of the business planning process. In fact, strategies such as

    market segmentation (identifying specific groups within a market) and product differentiation

    (creating an identity for a product or service that separates it from those of the competitors) are

    impossible to develop without market research. Market research involved here in the project falls

    into two categories:

    (1) Secondary Research

    (2) Primary Research

    SECONDARY RESEARCH

    Secondary research uses outside information assembled by government agencies, industry and

    trade associations, labour unions, media sources, chambers of commerce, and so on. It's usually

    published in pamphlets, newsletters, trade publications, magazines, and newspapers. Secondary

    sources include Public sources, Commercial sources and Educational institutions. This portion of

    research can be completed by keeping these issues in mind:

    Growth trends in Indian food service today.

    Increase in the size of my target market

    Demographic profile of my target customer

    Factors that influence the customers choice to eat at a certain QSR

    New eating trends

    Competition from other players in Indian Fast food market

    http://www.tutorsindia.com/research-methodology-help.htmlhttp://www.tutorsindia.com/

  • 8 | P a g e

    Collect and analyse secondary data collected through internet, etc about Taco bell and the In-

    dian fast food industry.

    PRIMARY RESEARCH

    Primary research involves collecting original da