marketing strategy fastfood karan

7/29/2019 Marketing Strategy Fastfood Karan

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The 4 Ps of marketing have been discussed in detail individually under the

marketing strategies.

Product: This explains how the product of each of the joints has developed over

the past few years. What new additions have been made or changed has been

discussed under this head.

Pricing: The basis used for pricing and how the products have been priced vis--

vis other joints is discussed.

Promotion: This includes all the promotional activities that the restaurants are

undertaking in order to promote their products and expand the customer base. It

includes advertising, sales promotion and publicity.

Place : This includes how the restaurants of the three companies have been

located and the number of restaurants each of the three companies have in the

city.

B. MARKETING FUNCTIONS

Wimpys opened its first restaurant in Delhi in 1989. Its been almost nine

years since it was established, Wimpys is primarily recognised as the

burger Chain.

Initially while Wimpys entered the Indian market it hardly had any competition,

except from the local restaurants or from local fast food joint Nirulas.


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In order to beat against competition the company has to decide upon its

target audience. Since its inception the Target Consumer with Wimpys

have been youngsters between the age group of 18-30 and the kids.

Even today Wimpys aims to target the same audience.

Product Based Stategies

Core product : here a consumer buys a burger or a pizza to satisfy its taste buds.

Actual Product : The burger that he buys which is neatly packed with Wimpys

mentioned on the cover is the actual product.

Augmented product : Ambience, past service atmosphere, cleanliness all

augment the product.

Wimpys has about 5 to 6 different product lines namely :

Burgers

Pizzas

Salads

Milkshakes/Beverages

Ice Creams

Assorted Treats.


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Folloing are the range of items at th Wimpys restaurent :

Burgers

(in Variety)

Pizzas

(in variety)

Ice Creams

(in variety)

Additional

14 8 17 3

Available in two

sizes

Includes Nuggets and

fries

Its unique selling proposition lies in its product line . Aim is to offer

increasing choice and variety of items to its consumers.

However, when Wimpys had started its operations it had about 3 to 4

product Lines. Since the past five years its product line has remained

same till date. Ofcourse changes are constantly being made to offer new

variety in each of its product lines.

Under its assorted treats line which includes French fries, fish N chips,

Nuggets etc. has also been modified from time to time. Since the past

two to three years it has started including new varieties to it almost every

year. The most recent additions have been veggie nuggets and chicken

drumsticks.

Wimpys also provides with economical meals which include a coke,

burger, french fries or any combination of these three. It keeps on

coming with new meals every six months.The most recent meals that it

had in its menu were the Navratra meals, which had a combination of


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pizza and coke; vegburger, Frenchfries and coke; and salad, Frenchfries

and coke.

Before the Navratra meals it had come up with Liliput Meals (especially

for the kids) i.e., Veggie Lilliput burger meal, Chicken Lilliput burger meal

etc. (Wimpys has always kept the kids into consideration for deciding its

product lines).

Wimpy even has this special Breakfast Meal only at its restaurant in

Connaught Place. The meal is quite different from its rest of the meals. It

has Eggs in a Bun, Doughnuts, Orange juice, Tea/Coffee. It is targeted

to the tourists, executives and the Shoppers in C.P.

Pricing Strategies

Al l the items at Wimpys have been competit ively priced.

The price of pizzas is far lower than other outlets, such as Dominos,

Pizza Hut etc. Its cheese pizza (regular) is priced at Rs. 45 compared to

Pizza huts regular cheese pizza for Rs. 65. Even the Burgers are

reasonably priced. Min. availability is at Rs. 14 for Veggie Lilliput burger

and maximum at Rs. 48 for Grilled Chicken burger.

Even for Pizzas min price is about Rs. 45 for a regular cheese pizza and

max at Rs. 75 for Half N Half non veg. This price is quite reasonable

considering the prices of regular pizzas at Dominos where they go as

high as Rs. 150-200 for a regular pizza..


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Promotion Strategies

Since its inception is 1989 Wimpys has promoted its restaurant mainly

via instore posters and danglers or through outstore posters. However its

promotional strategies have under gone a change in these nine years

considering the competition coming from everywhere.

Its promotional strategy has been to emphasise and publicise the

concept of variety, reach out to people and convince them to eat at

Wimpys. In brief, the aim is to reach the r ight target and do i t

effectively.

The media most commonly used by Wimpys can be classified as :

Instore Out store

Use of posters and Danglers.

Informing about latest meal

combos and latest additions in

the menu.

Use of Flyers, which are

gradually coming down.

Emphasis now is on newspapers

and press ads. Recently there is

this Wimpys Graffiti Show that is

being aired on Times FM. Use of

T.V under concideration.

During the past two years, the idea has been to improve the image of the

restaurants. This is being done through improving the menu boards and


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the name plates. Also the mascot Mr. Wimpy is being promoted more and

more in their posters.

Aim during the past two years has been to change the image and

make Wimpys more and more visible to the people.

Distribution Strategies

Wimpys started with just one outlet in Delhi in 1989.

In 1993 it had about 3 outlets in Delhi. By 1998 it has about 10 outlets in

total in the city with one outlet in each of the cities i.e., Jalhandar,

Ludhiana and Bangalore. The opening of its outlet at New Delhi Railway

Station in 1997 had a effect on other outlets around that area.

In order to expand its distribution network it has come up with a scheme

whereby an individual can franchise with Wimpys. Wimpys gives him the

right to use the brand name, but he has to have resources i.e., land and

capital to become a franchisee with Wimpys. The restaurant manager

and the operation staff would go from the company itself.


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B. MARKETING FUNCTIONS

In early 80s when Nirulas started expanding its operations, it positioned

as a family style restaurant for the kids and the entire family.

To target the family, the chain has simultaneously focused on the Child

who will get the rest in. People between the age group of 8-80 have been

the target audience. It is ideally for the kids and the elders.

Nirulas marketing strategy rests in the adaptation of the fast food

concept to the Indian situation .

Nirulas in order to provide products at best quality has a single central kitchen

that caters to all its outlets in Delhi.

Keeping marketing strategy in mind details of the marketing mix are

explained below:

Product Based Strategies

Burgers

Pizzas

Foot longs

Ice Creams

Beverages / Shakes


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Hot Numbers.

At some of its restaurants keeping in mind the local tastes it extends its

product line to:

South Indian

Tandoori N Curries.

Following are the range of items available at any Nirulas restaurant :

Burgers

(in variety)

Pizzas

(in variety)

Ice Creams

(in variety)

Additional

(in variety)

15 12 30 5

Served as meal

combos too

with fries and

coke

Available in

three sizes

Includes

tandoori items,

footlongs, hot

nos. etc.

Nirulas keeps on coming up with desi-style burgers, the most recent

addition in the burgers category have been the channa Buger, Bhaji

Burger and omelette burger.


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Prior to these Nirulas had added the Panner Tikka Burger and Chicken

Tikka Burger to its menu. The rest of the variety has remained more or

less the same over the past many years.

Due to the inclusion of the above few items in the list, Nirulas has re-

invented itself. Vegetarian customers are being offered with separate

exclusive items and non-vegetarian ones are offered similar exclusive

items.

Nirulas has constantly changed the menu as and when consumer

preferences have changed. It is the only serious restaurant chain offering

a complete meal with wide variety.

Pricing Strategies

Inspire of Nirulas having a monopoly situation for decades with its brand

of restauranting, it has always been cautious about the way in which it

has increased prices.

Its strategy is to rely on high volumes and low margins.

Nirulas has never relied on competition to price its products. The items

on the menu are such, that they can suit every pocket. All kind of people

from all strata visit the restaurant.


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It has a burger which is max for Rs. 53 and min at Rs. 15. Its Pizzas

range from Rs. 53 to Rs. 83 for a regular size. These prices are for lower

than the pizza chains that have entered the country.

Promotional Strategies

The ad line for Nirulas goes something like :

Fun foods for the entire family.

This serves the purpose ofpositioning the restaurant as a family, eating

place. Promotional material used by the restaurant mostly includes

distribution of flyers, menu cards, and through newspapers.

It has its own in house design department and creative department which

designs posters and banners for advertising. It is more of in house

promotions.

Newspaper releases which come out every now and then of Nirulas are

handled by its public relations firm.

Children have always been the prime target group with Nirulas since they

play a key role in deciding where the family should eat. There is constant

promotional activity carried on for the kids by the restaurant.

There is a birthday club membership for children below 13 years of age,

who receive a birthday card and a free scoop of ice cream to celebrate

the occasion.


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During April, to coicide with the annual exams, there is Nirulas Scholars

award. School children scoring more than 90 per cent troop in with their

report card to claim a Triple Sunday free. Nirulas scholars are sent best

of luck cards in March.

In 1991 when this scheme was introduced there were only 600 entues.

The members grew to 3000 in 1993 to 15,000 in 1994. By 1998 the figure

has increased to 90,000. Over 90,000 kids come do Nirulas for a free

sundae.

Nirulas also organises for birthday parties for the kids at some of its

restaurants.

Any festival that comes, Nirulas is associated with it . During Christmas

time Santa Clans appears in all its outlets to hand out sweets to children.

During Diwali it comes up with special gift packs etc.


Today Nirulas has about 18 outlets in Delhi and 3 in Nepal out of the 18

outlets in Delhi 2 of the outlets are express restaurants where the thrust

is on take away and delivery service.

Nirulas carefully uses its locations and also the meal timings to aim at different

target groups. Each of its outlets has its own personality. For example :

Connaught Place has a major share of tourists or foreigners where as Chanakya


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Puri and Defence Colony get a lot of young sudents.

It has carefully choosen the locations of its outlets at Vasant Kunj

Leisure Bowl and Destination Point Faridabad. Such places attract lots of

crowd on holidays and even on weekdays.

This is a very effective distribution strategy placing yourself where

opportunity exists to attract people into the restaurants.

Setting up of restaurants at such places is a way to ward off competition.

Aim is to move into residential location and making its outlets more

accessible for its clients.

Nirulas started its home delivery services in a organised manner in 1994.

Looking at competi tion coming from the MNCs who established

themselves as home delivery chains, Nirulas did not want to left behind.

Another reason for starting home delivery services was the rise of the

customer base.

1984 Only 22000 customers came in a day

1989 35,000 Customers per day

1994 44,000 Customers per day

1996 46,000 Customers per day.

By 1996, 10 Nirulas outlets had home delivery services. The

company witnessed a ten-fold increase in home delivery


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revenues since it started. Today, the number of outlets has gone

up to 15, w

B). MARKETING

Its strategy in India is to target the plain and simple mass market. The

target consumers for Mc Donalds are the family and the kids . Mc

Donalds has been positioned as a Family Restaurant.

Product Related Strategies

World over Mc Donalds is known for its juicy beef burgers. But in order to

settle in India the entire concept of beef burgers had to be changed.

India is the only country where Mc Donalds is offering veggie burgers

and non-veg burgers without beef (uses mutton instead).

This is a classic case of Product Adaptation , where Mc Donalds adapted

its product according to the culture and norms of the country in order to

position itself in the market.

Mc Donalds product line is almost similar to other burger chains in the

country.

Burgers

Desserts


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Beverages/shakes

Assorted items.

Burgers

(in

variety)

Pizzas

(in

variety)

Ice Creams

(in variety)

Additional

(in variety)

Meal

Combos

12 - 2 2 (french fries

and veg

nuggets)

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Product standards, packaging, quality, processing are all the same like at any

other Mc Donalds outlet in the world. The quality standards are so stringent that

nowhere, not even is its rawest state, is any of the food touched by hand. The

typical burger undergoes 54 checks before it is served. The menu at Mc Donalds

has remained more or less the same over the past 2 years except a couple of

additions in the burgers variety and inclusion of couple of items in the dessert

variety.

Mc Donalds even has the calorie count carefully worked out for its

burgers. A veg burger offers 418 calorie, 10 gm of protein, 22gm of fat

and 48 gm of carbohydrate.


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Al l Mc Donalds menu items fi t into a balanced diet and it offers certain

items that fit well within a low fat diet (option of burger with or without

cheese).

Pricing Strategies

Worldwide Mc Donalds 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 Entrylevel (1996) (1998)

Mc Burger Rs. 12 Rs. 14

Maharaja Mac Rs. 412 Rs. 46

One look at the restaurant and it doesnt seem that the prices of its

products would be this low. Reason being that Mc Donalds gets the

materials (55 per cent of an outlets running expenses) at very cheap

rates. Therefore this is one of the reason that Mc Donalds products are

priced reasonably.


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It buys its supplier from 35 suppliers who sell at incredibly low prices.

Products at Mc Donalds are neither elitist in its pricing nor at the dhaba

level, they are average in its pricing.

Mc Donalds was offering a softie at a price of Rs 6/- about a year back

during the festive season. Today this softie costs only a rupee more at

Rs.7/-. No restaurant of this calibure offers a product at this rate.

Mc Donalds recently has come up with Economeals, in which one can

afford to have a burger and coke for as little as Rs. 29/- and at max for

Rs. 49/- (Instore pamphlet enclosed) Mc Donalds keeps on coming up

with such meals almost every month such that almost anyone can afford

to have a Mc Donalds product.

Promotional Strategies

Mc Donalds ad line goes like:

Food Family Fun

Mc Donalds 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 tantalizing the audience as though its a strip

tease.

It has even started advertising through local channels such as siti cable.


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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. McDonalds plans

to advertise in national newspapers such as Hindustan Times and Times

of India in another couple of months.

In addition to this Mc Donalds 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 Mc Donalds 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.

McDonalds also comes up with special schemes during the festive

season Last month i.e. September, during Navratras it came up with

special Shudh Shakahari Meal where a meal for two was for Rs. 99/-

and a meal for four was for Rs. 199/- (Instore pamphlet enclosed).


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Another way through which Mc Donalds 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 majori ty of McDonalds restaurants, the management emphasises on

developing parks for the kids as a play ground for them. E.g. At

McDonalds 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 commnity 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 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 McDonalds

restaurant location.


Till date Mc Donalds has 11 outlets in India out of which six are in Delhi

and five in Mumbai. In 1997 there were about 3 outlets in Delhi and only

three more outlets have been added to the list by 1998.


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By the year 2000 Mc Donalds plans to have about 50 outlets in the

country. At Mc Donalds, 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.

The unique attributes of the three fast food joints are:

Nirulas : Variety, Accessibility, value for money.

Wimpys : Spacious, Quality of food

Mc Donalds : Spacious, Service, hygiene, value for money.

Name Burger

(in

variety)

Pizzas

(in

Variety)

Ice

creams

(in

variety)

Additiona( includes

assorted items)

Nirulas 15 12 30 5

Wimpys 14 8 17 3

Mc

Donalds

12 - 2 2

No. of Meal Combos

Nirulas 15

Mc Donalds 7

Wimpys 4


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Chicken Burger

(Rs.)

Veg Burger (Rs)

Nirulas 49 34

Mc Donalds 43 34

Wimpys 43 33

Veg Meal Combo

(Veg Burger +

Coke+ Fries)

Non-veg Meal Combo

(Chicken Burger + Coke

+ Fries)

Nirulas Rs. 51 Rs. 72

McDonalds Rs. 65 Rs. 74

Wimpys Rs. 65 Rs. 75

The above analysis can be summaried in the following chart :

Variety Service Ambience Price

NIRULAS Has 15 types ofBurgers, 12

types of Pizzas& 30 types ofIce-Creams tochoose from

Takes about10-15 min. fororder to arrive

Not tooSpaciours

ModeratelyExpensive

WIMPYS 14 types of

burgers, 8types of Pizzas& 17 types ofIce-creams tochoose from

Take abot 5 to

6 min certainjo ints & 60-90sec. in another

Spacious Expensive L

MCDONALDS 12 types ofburgers, no

AverageMcDonalds

Very Spacious Affordable L


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Pizzas, 2 typesof Ice-creams

to choose

restaurantserves in about

60-90 sec.

marketing strategy fastfood karan

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