Introduction
Objectives
·
To
identify and analyze the marketing strategies of the three fast food chains:
-
McDonalds
-
Wimpys
-
Nirulas
Under the fast food market.
·
Analyzing
the performance of the above chains since the past five years.
·
Making
a comparative analysis of the above three restaurants.
· Identifying
the recruitment and selection procedures adopted by the stated restaurants at :
-
Managerial
-
Supervisory
-
Clerical and
- Operational
level (Operations comprise an important part in any restaurant).
·
Conducting
market research study to determine :
-
Percentage
wise consumer preferences
-
Frequency
of visit at each of the stated restaurants
- Identifying
unique factors that attract people to the stated restaurants.
Methodology
·
Information
regarding the organisation, 4P’s of marketing, and consumer preferences has
been obtained through :
a. Primary Sources
b. Secondary Sources.
Primary Sources
i. Marketing
personal, PR personnel of the concerned organisation were approached to obtain
in formation about the concerned subject (Sample questionnaire on the next
page). McDonalds marketing and other details had to be obtained indirectly
through its public relations firm since direct accessibility to the corporate
office was not possible.
ii. Market
research study was conducted in order to find out percentage wise preferences
of the stated fast food restaurants.
Secondary Sources
i.
Internet
ii.
Libraries
such as CII and PHD House
iii.
Articles
from A & M and economic times
iv.
Company
brochures, literature and pamphlets.
·
Based
on the information obtained from the above sources concepts were developed on
which analysis could be made.
· Conclusions
and recommendations have been thereby given after a thorough evaluation of the
marketing strategies of the three restaurants.
Origin of the fast food market in INDIA
Traditionally over the ages, fast food for the average
Indian customer meant having breads i.e.,
paranthas, rotis etc. with sabzi or
achaar. These were the traditionally available snacks or in the form of samosas etc. All the items were
available at the roadside dhabas or the local sweet shops. There were no
established eating places or restaurants for the average Indian customer.
It was the Nirulas family way back in 1920’s that
started the trend of opening good eating places in the city. Nirulas initially
when they entered the restaurant business, were more into catering and hotel
business. It was only in the late 50’s and early 60’s that they decided to open
up a restaurant serving snacks and fast food. By 70’s they had a pastry shop,
snack place and Hot Shoppe. This started the trend of eating joints in the city
and over the country. Nirula’s was considered to be the pioneer in fast food
business. Seeing its success in the country other local fast food joints and
restaurant started coming up in the 80’s. With the coming up of these local
joints Nirulas was not left behind. It had a well-established fast food chain
over the next decade. However seeing the potential in the country in the 90’s
due to the changing life styles, the established chains world over made their
entry into the Indian food market. However the tastes and the style of the kind
of food which these MNC’s we offering the Indian customer has been made
familiar to him by Nirula’s only.
Although the concept was introduced to the Indians way
back, but in the true sense market for fast food has been developed only after
the entry the various MNC’s starting with Wimpys to McDonald’s, Pizza Hut,
TGIF, Dominos etc., with many more to come over the next few years.
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
customer’s 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 a 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 who cant 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 year of India’s entry into the
world food market. International giants such as McDonalds, KFC, TGIF, Dominos,
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
hangout place rather than eating out with the family.
Its 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, 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
that 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 has their own strategy lined up to differ from the rest. Each of
these studied the Indian tastes and style and thereby targeted the Indian
customer. An average Indian restaurant goer 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 it 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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