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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 :- Submitted By:


PROF. PRIYA 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’S


B)AN OVERVIEW OF NIRULA’S
C)AN OVERVIEW OF PIZZA HUT
D)AN OVERVIEW OF DOMINOS
E) 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.

However the year 1995-96 witnessed a drastic change. 1996 is considered to be the

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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.

Each of the foreign food joints that have come into the country have their own

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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
Fast Food

(hamburgers • chicken • french fries •


Products
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

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

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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

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,

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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

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.

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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.

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

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• Chicken

• Fish

• Deli

• Salads

• Sides

• Breakfast

• The Winter Menu

• Little Tasters

• Happy Meal

• Saver Menu

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• Desserts & Treats

• Drinks & Shakes

• Nutrition & Ingredients

BURGERS PIZZAS ICE ADDITIONA MEAL COMBOS (in


(in variety) (in variety) CREAMS L (in variety) variety)
(in variety)

---
13 2 3 size (French 7
fries & Veg.
nuggets)

McDonald’s food

McDonald’s know that we care about where our

food comes from – McDonald’s care too.

Working towards a greener future

At McDonald's they recognize their responsibility to protect and preserve the

environment for future generations to come.

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There goal is simple, to achieve continuous environmental improvement across all

areas of our business.

McDonald’s Environment Policy

Litter

They provide litter bins outside all their restaurants and are one of the biggest

sponsors of council provided litter bins in the UK.

Waste

Used cooking oil represents 10% of a restaurant's total waste, and is recycled into

biodiesel, which their delivery fleet runs on.

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Packaging

By 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.

Energy

All 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

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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.

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

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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.

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.

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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,

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which also includes investment in strengthening back-end supply-chain to ensure

uninterrupted supply of inputs, Mr Jatia said.

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 Strategies

Worldwide 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.

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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 Strategies

McDonald’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

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.

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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 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.

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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 DEMAND

The 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.

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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

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-

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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

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

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3) Ice Cream Tub 500 ml

4) Ice Cream Brick 1 Litre

BURGERS & PIZZAS

1) Burgers

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

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BURGERS PIZZAS ICE CREAMS ADDITIONAL

(in variety) (in variety) (in variety) (in variety)

15 20 30 8

Served as meal Available at three Includes tandoori

combos too with sizes items, foot longs,


-----
fries and coke Hot nos. etc.

CUSTOMER DEMAND

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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.

. 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

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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

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

Page # 35
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.

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

Page # 36
5) Super Supreme TM

6) Mountain Fantastico

7) BBQ Deluxe

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

Page # 37
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

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.

Page # 38
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

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.

Page # 39
PRODUCTS

. Veg. Pizzas

Non Veg. Pizzas

. Side Orders

. Beverages

.Choice of Crusts

. Choice of Toppings

5) Classic Hand-Tossed

6) Ultimate Deep Dish

7) Crunchy Thin Crust

8) Brooklyn Stylex

Page # 40
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

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

Page # 41
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

“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

Page # 42
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

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.

Page # 43
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.

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.

Page # 44
PRODUCTS

• Aloo patty

• Paneer Tikka

• 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

Page # 45
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

 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.

Page # 46
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

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.

Page # 47
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.

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

Page # 48
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.

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

Page # 49
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

restaurant. The customer prefers being served by a friendly counter assistant than

someone who is arrogant and least interested in entertaining the customer properly.

Page # 50
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

Page # 51
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.

Page # 52
Q2What is the expenditure for you per visit?

Less than Rs.50-------------------- Rs.50-100---------------------

Rs.100 -50-------------------------- Rs.150 & more------------------

Page # 53
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.

Page # 54
Q3Mention your favorite joint ----------------------------------------------------

From the above mentioned 5 chains.

Page # 55
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.

Page # 56
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----------------

Page # 57
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.

Page # 58
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 ---------------------------

Page # 59
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.

Page # 60
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.

Page # 61
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

Page # 62
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

Spacious Conjusted

Value for Not worth the price

money

Q. 5. Please provide the following details:

Page # 63
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 -----------------------

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

Page # 64
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.

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

Page # 65
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.

Page # 66
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.

Page # 67
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.

Page # 68
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

Page # 69
DOMINO’S

0 + [8x100] + [6x2(100)] + [4x4(100)] + [1x8 (100)]

= 800 + 1200 + 1600 + 800 = 4400.

Page # 70
APPENDIX - II

Assessment of Frequency of visit No. of Respondents

Name Do not Occasionally Monthly Weekl More than

visit y once a week

NIRULAS - 12 2 3 3

MCDONA 4 9 8 12 6

LD’S

DOMINOS 1 8 6 4 1

PIZZA 3 4 7 3 2
HUT
SUBWAY 5 4 5 3 2

Assessment of Preferences indicating favorable fast food joint

Name No. of Respondent % of Respondents

Page # 71
NIRULAS 5 19%

MCDONALD’S 10 40%

DOMIONO’S 5 19%

PIZZA HUT 5 19%

SUBWAY 1 3%

APPENDIX - III

Attribute No. of Respondents

Page # 72
Price 12

Quality 20

Speed of Delivery 15

Cleanliness/hygiene 18

Accessibility 11

Variety 16

Space 9

Décor 8

BIBLIOGRAPHY

1) RETAIL MANAGEMENT, Berman & Evans

2) CONSUMER BEHAVIOR, Henry Assell

Page # 73

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