...Study of Quick Service Restaurants in India Once an introvert, domestic home driven Indian population is now opening up to a culture of eating out. India is a young country with almost 60 percent of people in the age window of 18- 35 years which are also the most spending years, hence QSR. The first foreign Quick Service restaurant and casual dining entered Indian Market around 20 years ago. Although Quick Service Restaurants contributes to only 2-3% to India’s GDP, the market is worth INR 247,680 crore (USD 48 billion) and is expected to grow to INR 408,040 crore (USD 78 billion) by 2018. It comprises of food services that are organized such as full service casual and fine dining restaurants, hotels, bars and lounges, cafes and frozen dessert formats as well as unorganized sector such as Dhabas, street stalls, roadside vendors, food charts etc. The concept of QSR has gained prominence in India because of the affordable, competitive pricing and convenient quick service to the ever growing population. QSRs face few challenges in terms of Health and hygiene, beating local competition, monitoring multiple outlets in various cities, holding on to the customers as QSR customers are easy to sell to but also easy to lose, maintaining quality service, localization of menu and building a cost effective supply chain. Foreign QSRs have more 63% of the market shares but there are many Indian chains such as Haldiram’s, Faasos, Goli Vada Pav etc. that are flourishing in the market that is...
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...contact Ivey Publishing, Ivey Business School, Western University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) cases@ivey.ca; www.iveycases.com. Copyright © 2014, Richard Ivey School of Business Foundation Version: 2014-10-29 With four outlets of Taco Bell opened in Bangalore by December 2013, Niren Chaudhary, managing director of Yum! Restaurants India, felt eager to expand its market offerings. He pulled out the morning newspaper and impatiently ruffled through the pages until he reached the business section. He paused briefly, folded the paper and leaned forward to read better. Focusing his attention on the article, which contrasted the cooling market with the heated competition in the quick service restaurant (QSR) business, Chaudhary said to himself, “What should we do to sustain our survival?” Home to more than 9.5 million people,1 Bangalore had offered Taco Bell a huge potential market. Yet, despite a record-breaking launch in 2010 when long queues of excited consumers waited to...
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...Domino’s Pizza: Marketing Research Report Submitted By: Dagar Katyal (FT12318) Mohammad Khurram Mirza (FT12335) Prachi Sawant Shuchita Vivek Joseph Domino’s Pizza: June 1, 2011 Contents 1. INTRODUCTION ............................................................................................................................... 2 1.1 History ..................................................................................................................................... 2 1.2 Domino’s in Indian Market ..................................................................................................... 3 1.3 Organizational Structure Jubilant Food works ........................................................................ 3 2. Food Industry in India ..................................................................................................................... 4 2.1 Growth of the Quick Service Restaurant (“QSR”) industry ..................................................... 4 3. Financial Analysis ............................................................................................................................ 5 3.1 Year on Year Analysis .............................................................................................................. 5 3.2 Profitability Ratio - Profit Margins .......................................................................................... 5 3.3 Profitability Ratio - Return on Long Term Funds ...............
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....................................................................................................................................................... 2 Indian Food Service Industry - Sector Highlights................................................................................................................................................... 3 What Drives the Growth of the Industry? ............................................................................................................................................................... 4 Demand Side Drivers – The Demographic Profile of the Indian Consumer Segment ........................................................................................ 4 Supply Side Drivers – Industry Trends Encouraging Growth ............................................................................................................................. 5 Transition Phases ................................................................................................................................................................................................. 6 Structure of the Industry ........................................................................................................................................................................................ 7 Challenges ..........................................................................................................................................................
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........................................................................................................................................................... 2 Indian Food Service Industry - Sector Highlights................................................................................................................................................... 3 What Drives the Growth of the Industry?............................................................................................................................................................... 4 Demand Side Drivers – The Demographic Profile of the Indian Consumer Segment ........................................................................................ 4 Supply Side Drivers – Industry Trends Encouraging Growth ............................................................................................................................. 5 Transition Phases ................................................................................................................................................................................................. 6 Structure of the Industry ........................................................................................................................................................................................ 7 Challenges ..............................................................................................................................................................
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...International Strategies: 4 Strategic Competitiveness Outcomes: 5 Fast food industry overview 5 Market definition: 5 Market value: 5 Market Volume: 5 Market Segmentation 5 Challenges faced by fast food MNCs in India: 6 Porter’s five forces: 6 Other challenges: 7 McDonald’s 7 Some of the strategies that MacDonald’s has incorporated to be successful in the market 8 Kentucky Fried Chicken (KFC) 11 Conclusion: 13 References 14 Executive summary This project report explains about the international business strategies adopted by various MNCs and TNCs with the help of fast food industry. For better understanding of this we took example of McDonald’s and KFC. International business strategy refers to the plans that guide commercial transactions taking place between entities in different countries. This project report takes coverage on opportunityand outcomes of these strategies, along with its lifecycle. There are various challenges faced by MNCs when they enter in new market in different countries, such as social and cultural issues, government regulations, local competitors in that market, acceptability from customer and suppliers etc., business strategies help them to resolve these challenges. With the example of McDonald’s and KFC we explained their problems they faced as fresh entrants in new market.In all the cases we analyzed that most of the firms in this industry have to adopt local strategies for their survival in the new market. All these...
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...Supply Chain Challenges for Food Processing Industry. By – Bhupinder Singh. Dated 5th Dec. 2009. Vista Foods – Mumbai An Group Company Vista Foods – Mumbai – India an OSI Group company. OSI Group is strategically organized into three defined Zones – The Americas Zone. The Europe Zone. The Asia /Pacific Zone. Over all OSI Group is in 26 Countries. Serving McDonald’s Worldwide and other international retails label pack. “Be ready to accept a new idea. Innovation is the lifeblood of growth. Create an environment that breeds innovation . Maintain consistency while responding to change.” ---- Ray Kroc Chairman Agenda 1 Food Processing Sector in India 2 Supply Chain Challenges in Food Industry 3 Opportunities & Recommendations 4 1 Food Processing Sector in India 2 Supply Chain Challenges in Food Industry 3 Opportunities & Recommendations 5 Food Processing Sector in India Food is the largest consumption category in India... Food Consum ption in India 250 So urce: B M I, Q12009 & CSO C A G R : 5 .3 2 % 229.7 210.3 200 180.1 168.6 151.7 157.7 184.4 191.4 198 1 50 1 00 50 0 2005 2006 2007 2008e 2009f 201 0f 201 f 1 201 2f 201 3f Significant Opportunity India as a huge Consumer Market 6 Food Processing Sector in India India has huge supply advantages due to diverse agro-climatic conditions and wide ranging raw material base… • 52% cultivable land compared to 11% world average...
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.../ RESTAURANT INDUSTRY Introduction Indian QSR (quick service restaurants) Industry is growing very rapidly. It is a reflection of the change in the lifestyle, food habits and consumption pattern of the population. The incidence of Dining out, ordering from home as well as takeaways is rising creating an opportunity to cater to a wide mass of population. What was the domain of upper class, singles or forced bachelors, has percolated to all echelons of society. The incidence and value differ substantially, but penetration of such consumption habits is wide spread and is on the increase. Although largely an urban phenomenon, the pattern is also emerging in rural areas with better road connectivity, increased vehicle ownership and rise in income levels. In a country with more than a billion people, opportunities in India are abound. This has led to a rapid growth of the QSR industry. However, simultaneously, it has also created a canvass that has many failures and carcass. Several outlets have been closed, a large number are struggling, still a large number are just about surviving and lot many of them have not been able to find their feet. There are a lot who are successful, but, more importantly, there is almost a complete absence of national chains. This indicates to the fact that just having a lot of opportunities is not enough. These opportunities need to be harnessed and converted into profitable enterprises. This paper is an attempt to understand the industry, its key success...
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...served on 68 million customers each day in 119 countries). In 1954, a man named Ray Kroc discovered a small burger restaurant in California, and wrote the first page of McDonald’s history. 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. This can only be attributed to the fact that McDonald's management style and strategies are extremely effective when faced with the vast amount of issues it has in its sixty plus years of history. McDonald's business in India: McDonald’s success in global growth is exemplified in its achievement in infiltrating the Indian food market. This infiltration has been made famous due to management and strategic issues encountered by McDonald's from the macroeconomic environment, particularly in the economic, demographic, socio cultural and the competitive environment. McDonald's entry strategy in India is a major reason in the way its success came about. The company was faced with many different possibilities, but encouraged by previous failings from rival companies in KFC and a vast amount of research into India and its markets McDonald'. McDonald’s is...
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...KFC HOLDINGS (MALAYSIA) BHD 65787-T 1 KFC Holdings (Malaysia) BHd (65787-T) annual Report 2011 annual Report 2011 after 38 years of ‘Finger lickin’ good’, we have changed our tagline to simply ‘so good’. ‘so good’ reflects our commitment to product, place, people, price and promotion. ‘so good’ is that great experience of a good meal shared between family and friends. at KFC, it is all about building a brand that brings people together and creates that ‘so good’ moments. Thus, the choice of the cover illustrates ‘so good’ which is what the brand is all about. KFC Holdings (Malaysia) BHd (65787-T) annual Report 2011 2 Contents Shareholders’Overview Financial Highlights 6 notice of annual general Meeting 9 statement accompanying notice of annual general Meeting 14 Our Performance in 2011 Corporate statement 18 Review of operations 32 Reliable Corporate Citizen Corporate social Responsibility 48 The Corporation Board of directors 60 Top Management Committee 76 Head of division 77 shariah advisory Council 80 Corporate information 81 group structure 82 Accountability Corporate governance statement 84 audit Committee Report 93 statement on internal Control 97 additional Compliance information 100 Financial Statements directors’ Report 127 statements of Financial Position 131 statements of Comprehensive income 132 Consolidated statement of Changes in Equity 133 statement of Changes in Equity 135 statements of Cash Flows 137 notes to the Financial...
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...India Introduction Fast Food Industry Overview India is blessed with one of the fastest growing fast food market of the world. It is estimated to be nearly worth of 41.3 billion USD and it is a healthy growing industry at a compound annual growth rate (CAGR) of 11%. The Organized Food Service Industry is worth $13.79 bn (approx. 33% of total Indian Food Service Industry), which is growing towards at 17%. (Industry report 2014) By year 2017 this bench marks will reach by other category, like as follows: (Ref) Category | Current Market Share | Compound Annual Growth Rate (CAGR) | Expected Market Share by 2017 | Organized | 30% | 12-14% | 45% | Unorganized | 70% | 8-10% | 55% | In present situation Indian GDP is around 6 % for last couple of years. As a result there is a significant numbers of monthly disposable Income are growing gradually. Now a day people of India spend on eating outside almost Rs.33, 000 Crore according to the size of the market. Some recent research study is expected this growth will reach US$68 billion by 2018. (Ref) On the other side delivery segment is an integral part of the Indian Food Service segment. The size of Organized Indian QSR delivery market is US$0.62 billion, growing at a healthy CAGR of 20% and is expected to reach US$1.1 billion by 2017-18. (Ref) In major cities comprise of large workplace clusters and high density residential areas people and young Indian consumers are highly price sensitive, through online they compare the...
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... Acknowledgement * Executive Summary * Objective of the Study * Quick Service restaurant in India * Key drivers in Indian quick service restaurants * History * Introduction * Strategies taken by Domino’s * Service Blueprint of Domino’s * 7P’s of Domino’s * Flower of Services of Domino’s * Service marketing triangle of Domino’s * Methodology of conducting Primary survey * Analysis of the Survey * Suggestions & Conclusion * Appendix: Questionnaire ACKNOWLEDGEMENT The satisfaction and euphoria that accompany the successful completion of any task would be incomplete without mentioning the name of the people whose constant guidance and encouragement has crowned all our efforts with success. As the students of the IILM-GSM, we would like to express our sincere thanks to Mrs. Tripti Ghosh, who helped and guided us to structure the project. EXECUTIVE SUMMARY This report is based on services offered by dominos and also to test the quality of service dimensions of Domino’s. India's quick service restaurant market worth $13 billion is growing 25-30 percent a year on the back of changing and busy lifestyle, fast emerging middle class population and surging disposable income, the industry will continue to grow at a pace in coming years. It now accounts for roughly half of all restaurant revenues in the developed countries and continues to...
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...References 29 Executive Summary People love to drink coffee. Coffee shops, independently owned or chains are every corner. Statistics show that people are taking more coffee every day. It is a very profitable business. Nowadays when people think of coffee and its related items, the word “Starbucks” immediately come to mind. Internationally, Starbucks has already become a very famous brand and many are trying to study the secret of its success. In the States, however, another company rivalry is competing with it quite well. Quite often, the Americans are taking preference to this over the Starbucks. The company that is being mentioned is Dunkin’ Donuts. It is without doubt that Dunkin’ Donuts will act as the follower in this industry. Starbucks, on the other hand, is acting the leader. This paper will try to study how the Dunkin’ Donuts are performing by making the benchmarking financial analysis against Starbucks. Financial ratios are prepared and analyzed to evaluate its performance. The study will be focusing on its profitability, liquidity, debt repayment ability and investing feasibility. Non-financial factors are also studied in order to understand on its business environment. Models like SWOT, PEST, Product life cycle and BCG matrix are used in order to get a better picture on the company. Finally, findings from the analysis are presented and observations are made at the...
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... With its rapid growth, the company is now ready to expand to the rest of the world. INTRODUCTION Jollibee Foods Corporation, known distinctively by its red and yellow bumble bee mascot, operates a number of concept restaurants in the Philippines and beyond. From its core business, a McDonald's-like restaurant, Jollibee has expanded into a pizza chain, fast food Chinese restaurants, bakeries, breakfast bars, and a tea house. The company competes well with multinationals in the Philippines, and has begun a large expansion into the international market, including China and the United States. Jollibee, the original flagship brand, together with its additional product concepts, dreams of becoming a global powerhouse in the restaurant industry. THE PHILIPPINES The Republic of the Philippines is a country in Southeast Asia consisting of over 7,000 islands. The Philippines was “discovered” by Ferdinand Magellan in 1521, who claimed the islands for Spain. While Magellan met his death soon after arriving in the Philippines, the country was under Spanish control for a few hundred years. The Philippines came under the rule of the United States in 1898 when Admiral Dewey defeated the Spanish and Spain ceded the islands under the Treaty of Paris. While Tagalog, or Filipino, is the official language of the...
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...Table of Contents 1. INTRODUCTION 2 2. SEGMENTATION AND TARGETING 2 2.1. GEOGRAPHIC SEGMENTATION 2 2.2. DEMOGRAPHIC SEGMENTATION 3 2.3. PSYCHOGRAPHIC SEGMENTATION 4 2.4. BEHAVIORAL SEGMENTATION 6 3. POSITIONING 7 3.1. VALUE PROPOSITION OF PHD OUTLETS 8 3.4. COMMUNICATING ON POPS AND PODS 8 4. DIFFERENTIATION 9 5. BRANDING AND BRAND EQUITY 10 5.1. BRAND AWARENESS 10 5.2. BRAND ASSOCIATION 10 5.3. BRAND LOYALTY 11 5.4. BRAND ASSET VALUATOR 12 6. MARKETING MIX 13 6.1. PRODUCT AND SERVICE 13 6.2. PRICING 16 6.3. PROMOTIONS 21 6.4. PLACE 24 6.5. PEOPLE 25 6.6. PROCESS 26 6.7. PHYSICAL EVIDENCE 26 7. CUSTOMER ACQUISITION AND RETENTION 27 7.1. CUSTOMER ACQUISITION 27 7.2. CUSTOMER RETENTION 29 8. REFERENCES 31 1. Introduction 2. Segmentation and Targeting To begin with, we segmented the market place into different categories broadly based on three consumer characteristics. The classification becomes more specific as we go deeper into the categories. 2.1. Geographic Segmentation The first step of classification is based on geography. We have broadly classified our target customers as belonging to 2 groups on the basis of population as recommend by the Sixth Central Pay Commission of India in 2008. • Tier I cities: Population more than 4 million Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Mumbai • Tier II cities: Population between 1 million to 4 million Pune, Jaipur, Chandigarh, Calicut etc. The reason behind focusing on these two segments is...
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