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ACKNOWLEDGEMENT

Management is a profession wherein no work can be accomplished without the

help and assistance of a large number of people, be it your superiors orsubordinates. A good manager is the one who knows how to get the work

accomplished with the help of his colleagues. As future managers, we are taught

to practice such behavior at every step. Thesis is also a part of it.

I would take esteemed privilege in thanking my Guide for providing me with the

chance to work upon such an exclusive subject. This topic has given me ample

chances of utilizing what all I have learnt in the past one year. You really helped

me lock my Anchorin the right place. Thank you Sir, I am really obliged.

I would also like to thank, for formulating a course structure which gives us

more and more chance of putting our learning into practice.

. I would also like to thank all the respondents of the questionnaires, without

whom the project would not have been complete.

With Sincere Thanks

(

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Contents

Acknowledgement..(iii)

Executive Synopsis...(iv)

List of Tables...(vi)

List of Figures..(vi)

Chapter-1: Introduction 1-3

Chapter2: Research Methodology 4-8

Title 4Objectives 4Rationale Of the Project 5Research Design 6Limitations 8

Chapter 3: Literature Survey 9-28

Industry Overview 9 Theoretical Framework 18Existing Marketing Strategies of Players 23

Chapter 4: Data Interpretation andAnalysis 29-53Chapter 5: Findings.

54-61

Chapter 6: Conclusion and Direction for FutureResearch 60-62

Recommendations 60Conclusion 62

Appendix.A-C

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Questionnaire A-C

BibliographyD

EXECUTIVE SYNOPSIS

Are fast food joints in the manufacturing industry or the service industry? If

manufacturing, by definition, is a process of converting material, preferably using

machines, then a critical part of McDonalds business is manufacturing. Fast food

industry uses food-processing equipment to improve the productivity of its processes for

converting raw stuff into hamburgers and fries.

But nevertheless fast food industry can also be called a service industry as once the

customer leaves the outlet he doesnt carry any tangible product with him. Of course the

food he consumes can be regarded as a physical product but apart from that the fast food

restaurants also provide an experience, an alternative not just for eating but other forms

of outings.

The opportunities in this industry are immense. The Indian fast food sector is growing at

25-30 per cent annually. The increase in the middle class and their purchasing power and

increasing importance of eating out for look good feel good category is a clear signal of

the potential market for fast food joints in India. But at the same time there are certain

challenges in the industry, to fight the awareness health drive amongst the population and

incur huge costs for location of joints and brand building.

The critical success factors for the industry are found to be distribution (fresh and

hygienic raw material supplied to joints), food quality, price, brand value, interior/

ambience, location and other customer groups of the various players in the industry. Mostof the customers contacted in the survey said that they are loyal to taste and not to the

retail outlet they dine in. Customers give the maximum importance to product per se and

environment. According to the study, key factors that contribute to the feel good factor

from the consumer's point of view include service comprising transaction efficiency,

friendliness and attentiveness of employees; quality consistency, variety, selection and

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freshness of products; and environment which cuts across the overall impact,

maintenance, sense of fun and ambience.

From the survey conducted it was found that McDonalds has been able to form high

brand recognition in the Indian market as it had in the world market by becoming one of

the top ten popular brands of the world. McDonalds is highest in brand recall due to its

advertisements (both print and electronic media), public relations and sales promotions

and because of its quality of food, prompt service, affordable price, good interiors,

location and friendly staff. McDonalds is seen as a true fast food joint, by most of the

respondents and one which fulfills the expectations of its customers in the best possible

way. It has emphasized on freebies, schemes etc. a lot in its advertisements. Nirulas

stands second and has been appreciated for its variety of food, affordable price as well asfor its reputation built in over the years. It has been one of the oldest in the chain of Fast

Food Joints in India and therefore has been able to build a good brand name for itself

over the years to an extent that it is associated with the Fast Food concept like Bisleri

brand is associated with mineral water.Pizza Hutstands very close to Nirulas because of

its wide variety of quality pizzashas a good brand recall because it has carried its brand

image as an International Pizza giant in India. It has also penetrated into the Indian

market by means of print media.

Wimpys and Dominos had the lowest Brand recall rates. Both Wimpys and Nirulas

according to the survey lack in food quality, price, location, prompt service and other

customer groups all of which are critical success factors for the industry. This explains

lower brand value for the two fast food joints.

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INTRODUCTION

The Indian fast food sector is growing at 25-30 per cent annually , according toindustry estimates. And, even as the golden arches of McDonald's are being pulled down

in three countries in West Asia and Latin America -- 175 outlets will be closed in 10other countries -- because of falling sales, in India they are sleeping well.

They opened the maximum number of outlets (13) here in 2002. Says a confident MDVikram Bakshi, "The Indian market will be able to absorb 100s of McDonald's." PizzaHut added 16 new outlets last year. They plan to enter 22 cities with 55 more outlets inthe next two years.

"We are poised for even faster growth in 2003," says Raghuvesh Sarup, senior brandmanager, Pizza Hut. Dominos opens 10 to 15 outlets annually here, says Arvind Nair,CEO, Dominos.

In the Rs 36,000 crore-food service Indian market, quick service restaurants' (QSR) shareis Rs 2,500 crore, says Kapil Chugh of KSA-Technopak, a market-research firm. Andwho's taking home the profits: the MNCs or desi players like Nirula's and Haldiram's?Both, thanks to the fast-growing market.

According to 2001-2002 estimates, McDonald's with annual sales worth Rs 125-150crore is the leader. Nirula's is not far behind with Rs 110-130 crore. Pizza Hut is numberthree at Rs 100 crore and Dominos close behind at Rs 80-100 crore. Haldiram's (Rs 60-70crore) and Pizza Corner, the Indian pizza chain (Rs 30 crore), are also in competition.

The domestic players have not fared too badly in spite of the MNC burger-pizza attack.Nirula's opened 23 outlets since 1998. They are planning to open 40 more this year."There are more consumers eating out today and the numbers are growing every day. Soare the number of outlets," says Taran Deep, manager corporate communications,Nirula's.

"The MNCs entering the food business in India in the early 90s changed the market onlyfrom the consumers point of view -- they have more options today. The distribution of thenumber of cheques cut each day is fairly positive. Had we been affected, we would nothave been expanding and growing.'

How have the Indian brands managed to take on the global giants? Because of their USP:a good understanding of the Indian consumer's eating habits. Seeing the growing demand,Haldirams moved out of Chandni Chowk and diversified from their traditional sweet-and-namkeen business into fast-food. They boast of 200 varieties' on their menu, frompizzas, burgers and noodles to dosas, samosas and chaat.

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Says K K Goel, marketing manager, Haldirams ."The MNCs have not affected sales asthey don't cater to Indian's taste. Not everybody likes that kind of food. Its mostlychildren who prefer brand names."

In this battle for the palate, the MNCs are learning fast -- tailoring their menu to suit

Indian tastes. McAloo burgers, paneer wraps or chetinad chicken, dopiaza, or chickentikka masala pizzas are a big draw. "The MNCs are still on a learning curve, trying tocustomize their menu to the Indian taste. For them, it also involves radically changing theIndians' eating habit and getting them to eat a Pizza," explains Chugh. For Big Mac, thismonth is historic in its own way. Beginning April 1, 2001, McDonald's began includingspicy potato wedges and aloo tikki burger as part of its value meals.

The home-grown chains have also learnt a few things from the MNCs: expertise inproduct development, sourcing practices, high-service levels, and standardized operatingprocedures in their restaurants. "It has made us more aggressive in our marketing," sayNirula's.

Says Mr Sanjeev Katyal, Marketing Manager, McDonald's India, ``New meals have beenconfigured to suit Indian appetites.''

The quick-service chain is willing to offer Indian food stuffs, if market demands, andmore importantly, bottomlines dictate.

Mr Katyal confirms that McDonald's product development team is already working onthese lines.

The players themselves call it a ``natural progression''. Even as he maintains that pizzas

will remain the chain's predominant product, Mr Pavan Bhatia, Chief Executive Officer,Domino's Pizza India, says, ``Let's face it. This country does not lap up chicken wings.We've made a conscious attempt to bring in spice into our palette.''

Domino's won't stop at samosas. According to Mr Bhatia, research will dictate its menu.And the chain is ready to fragment its cuisine according to regional preferences.

Toeing the line is Pizza Hut, which runs a 100 per cent vegetarian restaurant inAhmedabad, the first in the chain's international history. Other regulars on the menu areonion-less and garlic-free pizzas.

``It's a fact that two of every three consumers opt for Indian toppings. Anything spicysells,'' reiterates Mr Batra. (Source: http://www.blonnet.co)

Wake up and smell the coffee, the food industry is gathering speed. Fast food chains ofall hues, desi and videshi, are targeting the consumer on Indias rapidly growing highwaynetwork.

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According to industry sources, many food retailers are seeing this as a huge businessopportunity. Some already have concrete in the works, while others are chewing on theplans.

Says Vikram Bakshi, managing director, McDonalds India, Yes, a lot of food outlets

have started sprouting on highways. We were the first QSR to set up a restaurant inpartnership with Bharat Petroleum on the Delhi Mathura highway last year. Even theDelhi-based, conservative Nirulas plans to open its first highway hotel cum restaurant atan affordable price. This hotel is very strategically located on the Delhi-ChandigarhHighway 120 kilometres away from Delhi, in Panipat where the highway traffic ismaximum. (Source: http://learning.indiatimes.com)

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RESEARCH METHODOLOGY

PROJECT TITLEDynamics Of Marketing In The Fast Food Industry.

OBJECTIVES

To appraise the dynamics of marketing in the fast food industry in terms ofopportunities and challenges.

To evaluate present marketing strategies of key players like Mc Donalds, Nirulas,Pizza Hut, Dominos and Wimpy.

To develop a futuristic vision for a win win situation.

RATONALE FOR THE PROJECT

The project intends to provide an insight into the fast food services. The project aims tounderstand the dynamics of marketing in the fast food industry. The study would be

helpful in providing learning regarding the measurement of customer satisfaction for thefast food products and identifying the ideal service as expected by the customers. In a bidto understand the same, five fast food joints have been taken Mc Donalds, Nirulas, PizzaHut, Dominos and Wimpys. Since these are the major players in the industry, the study isexpected to provide significant insights into the industry.

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RESEARCH DESIGN

The methodology of the proposed study is being designed for implementation in fourphases, namely Defining the Research Objective and Format, Data Collection Instrument

and Methods, Analysis and Results and finally, Report Writing. The details of each phaseare given below:

Phase I:

In this phase, an Exploratory Research was conducted by the extensive study ofsecondary data. This enabled the comprehension of the problem and its related issues,identification of various elements of the service industry, clarifying problem attributes,major hypothesis (if any), and in turn developing a Descriptive Research Design. Thisincluded selection of research methods and their integration and identification of samplesize for study.

Since, the nature of the problem is very complex and emerging which involvesmultifaceted considerations and having a very dynamic impact, a multi-pronged,comprehensive approach was used to study both qualitative and quantitative aspects bymeans of Questionnaire surveys and Experience survey.

Phase II:

The data was collected from the field through different methods as given in Phase I. Aquestionnaire was designed, covering various important issues in the problem domain.This was administered to sample Fast Food Joints falling under the scope of the study.

Secondary data was used to gather information about present, actual performance.

Phase III:

The data obtained from various methods-both qualitative and quantitative, was analyzedand results were interpreted to develop the future trends. Statistical analysis ofquestionnaire responses was carried out and the results were synthesized with thefindings developed from interviews.

Phase IV:

Finally, the findings of the whole research were documented in the form of a reportcovering the whole process of the research and its outcome.

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RESEARCH ENVIRONMENT

National Capital Region (NCR) has been selected for the study.

INSTRUMENT

A well-structured questionnaire was developed for the purpose of the research.

SAMPLE SIZE AND METHOD

A sample size of 250 respondents was taken. The sampling method used was convenientsampling.

DATA ANALYSIS TECHNIQUES

Matrix techniques and statistical tools were used for data interpretation and analysis todraw findings and final recommendations and conclusion for fulfilling objectives of theresearch.

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LIMITATIONS

Biased response of the respondents

When respondents were asked to fill up the questionnaire during their visit to some retail

outlet, at times there is a probability of getting biased responses from the respondents.

Small sample size

Due to the paucity of time and other resources, the survey could not be very exhaustive.This survey was only confined to Delhi and adjoining areas. The sample size was onlyrestricted to 250 respondents.

Restricted research

The survey was only confined to Delhi and adjoining areas.

Reluctance in answering

There is always reluctance in answering the questions on the part of the respondents. Thiscould be either due to shortage of time, busyness of the respondents, and hesitation.

Time consuming

Sometimes the length of the questionnaire makes it cumbersome for the respondents toanswer the questions. Specially the open ended questions and the rating questions takeconsiderably more time than otherwise.

Lack of knowledge

There were times when the respondents could not answer the questions due to either lackof knowledge or awareness about the services offered by the fast food joints mentioned in

the questionnaire.

Loss of retention

Another limitation is loss of retention of the respondents while filling the questionnaire,specially answering the questions on interiors, taste, brand image, etc.

Exaggerated answers

Respondents tend to give exaggerated answers to questions which involve personalprestige and also which would please or amuse the surveyor.

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INDUSTRY OVERVIEW

IS McDonalds in the manufacturing industry or the service industry? If manufacturing,by definition, is a process of converting material, preferably using machines, then a

critical part of McDonalds business is manufacturing. Fast food industry uses food-processing equipment to improve the productivity of its processes for converting rawstuff into hamburgers and fries.

But nevertheless fast food industry can also be called a service industry as once thecustomer leaves the outlet he doesnt carry any tangible product with him. Of course thefood he consumes can be regarded as a physical product but apart from that the fast foodrestaurants also provide an experience, an alternative not just for eating but other formsof outings.

OPPURTUNITIES

First, undoubtedly, is the generation of additional employment. The growth of ourpopulation, in numbers, will be the highest in the world in the next 20 years.

The opportunity is huge. India Inc can take advantage of this opportunity if it movescoherently and fast, along with relevant government policy makers (primarily invocational education, communications infrastructure, and marketing of India).

NEW DELHI: It may be difficult for Sheila Dixit to find many takers for her proposedposter campaign against fast-food. According to trends, Indians may not be quite yetwilling to junk that McAloo burger or masaledar stuffed crust pizza. In fact, they want

more.

The Indian fast food sector is growing at 25-30 per cent annually , according toindustry estimates. And, even as the golden arches of McDonald's are being pulled downin three countries in West Asia and Latin America -- 175 outlets will be closed in 10other countries -- because of falling sales, in India they are sleeping well.

So what gives? According to an industry guesstimate, the highway market in India isestimated between Rs 1,000 to Rs 12,00 crore which includes the organised andunorganised sector. Says Pradeep Anand, The market is very large and is growing. Moreand more people are travelling by road on business and pleasure trips. The governments

spending on improving the roads and building better highways will definitely result inincreased number of people undertaking short visits.

But going by the rise in number of cars sold, the highway commuters are bound toincrease and so will the need for a place to take a refreshment break. It may take a whilebefore this segment will compete with the market in cities.

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Dowdy canteen rooms are passe. Corporate lunch rooms are now turning snazzier withmultinational chains setting shop within company premises. And, the new age ICEcompanies seem to be taking the lead in changing the corporate cuisine culture.

Multinational pizza chain - Domino's - recently set up an outlet at the Infosys campus in

Bangalore. Another internationally popular cafe - Barista - from Java Coffee House, hasalso started a mini-cafe in the Brandquiver.com office premises, and the trend seems tobe growing.

Hence, it is seen as a win-win situation for both the organization and the food companies,which have discovered a lucrative business opportunity. Though the food may besubsidised (as much as 50 per cent discount is given in some cases), the volumes aresubstantial. And, while there are still some old-economy giants which appear to becontent with the conventional tea and coffee vending machines, there is no denying thatwinds of change are sweeping across corporate kitchens.

The market for domestically produced consumer ready food products is expected to growprovided the liberalization process stays on course. Although, there are many constraintsto growth including: inadequate infrastructure (ports, roads, cold storage); interstate traderestrictions; poor post harvest management; a large rural population; and diffusedistribution networks. In addition, the government is encouraging exports of consumerfood products as a means of earning hard currency and many firms (particularly localcompanies) are focussing on international markets rather than the domestic market.

Widely published estimates frequently tout India's 250-300 million middle classconsumers. However, incomes in India are quite low and while people may be classified

as middle income their ability to purchase imported food products may be quite limited.Nevertheless, there are an estimated 150 million people living in households with annualincomes of $1,275 or more who may be capable of purchasing imported consumer fooditems (if they could be imported) on a limited basis. The following table provides incomelevels and the number of households falling within each category in 1994, more recentdata are not available.

Table 1

Income Group Income Households in millions

Low less than $640 90.5Lower Middle $641-$1,274 40.6Middle $1,275-$1,974 15.9Upper Middle $1,975-$2,739 6.2High Over $2,740 3.9

Total 157*

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*Average number of people per household is 6Source: NCAER$1.00=Rs. 31.4

The income figures change somewhat when estimates of so-called "black money" are

included in the analysis. Black money is the money that is earned in India's largeinformal economy. The number of households in the high income group increases twelvefold to 38 million, and the size of India's consuming class increases considerably.Therefore the Indian middle class as is evident from the above has the purchasing powerand the disposable income to visit and eat from fast food joints.(Source: http://www.tradeport.org)

The fast food industry basically targets the youth emerging as core target customer forlooking good feeling good categories whose main interests are:

1. Movies and theatre

2. Personal care3. Entertainment parks4. Books and magazine5. Computers and peripherals6. Music

Top categories ( Table 2)1999 2000 2001

1. Grocery 1. Grocery 1. Grocery2. Eating out 2. Eating out 2. Eating out

3. Personal care 3. Personal care 3. Books and music

4. Consumer durables 4. Books and music 4. Personal care

5. Clothing 5. Clothing 5. Clothing

Therefore it is clear that amongst the target segment eating out has been in amongst thetop priorities in the last 3 4 years, which clearly shows a huge opportunity for theplayers in the industry in the future.

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WHAT IS IMPORTANT

What types of traffic and dining demand could be captured in the area? What do local demographics and lifestyle characteristics suggest about market

demand? Who are the existing competitors and how successful are they? What dining concepts are missing from the district and/or trade area?

Using market analysis findings, one can draw conclusions regarding the viability ofcertain concepts. However, because of the complexity of the industry, this analysis is notintended to be a complete market feasibility analysis.

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A flowchart describing the process is presented below.

Evaluating Restaurant Opportunities

Evaluating Restaurant Opportunities Flowchart

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DYNAMICS OF MARKETING

Residents of the primary trade area are an important market segment for existing andfuture dining operations in the downtown area. While daytime workers and tourists arealso important sectors, the resident population usually represents a sizable market whose

dining consumer behavior can be fairly accurately estimated.

Local resident demand for restaurants in primary trade area can be analyzed usingdemographic and consumer expenditure data, lifestyle cluster data, and local consumerattitude research findings. These data sources help estimate the attractiveness of the localmarket from a restaurateur's perspective.

Demographics and Consumer Expenditure Potential

Selected demographic data for the primary trade area can be analyzed and compared withother communities and the state to gauge the overall attractiveness of local restaurant

demand.

Household IncomeAge

Household Size

Household CompositionNumber of Wage Earners

Occupation

Using demographic information and lifestyle segmentation data, one can estimate whatportion of market may fall within these five, potentially important groups:

Busy parents of children - often involved in after-school activities and sports anduse drive-thru and carry-out restaurants.

Older adults and empty nesters (down-scale) - eat on-premise at inexpensive sit-down restaurants, buffets and fast food eateries.

People who are convenience driven and dislike cooking (with no young children)- use a variety of carry-out sources including restaurants and grocery stores.

Young, urban professionals with no kids - dine at higher-priced restaurants Educated adults driven by taste and craving - eat at moderately-priced sit-down

restaurants and use delivery

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CRITICAL SUCCESS FACTORS

On the basis of the above discussion, following are the critical success factors

identified for the fast food industry in India:

DistributionThe wholesaler is the key to India's distribution system. Wholesalers supply nearly 80 percent (2.5 million) of the stores in India. Most have been in the business forgenerations and have long standing personal relationships with suppliers and buyers.There are an estimated 300,000 wholesalers and 400,000 semi-wholesalers who purchaseeither directly from distributors or the supplying company. Traditionally shop ownerswould visit a wholesaler to purchase products, however, wholesalers are now beginningto supply stores directly. Wholesalers can make life difficult for suppliers by disruptingsupplies or selling in unexpected areas. Much of the wholesale trade is conducted on abarter rather than cash basis. The key factor in the fast food industry is the product itself,i.e. the quality of food being offered by the restaurant. In that regard, distribution

becomes a very important factor as the food needs to be fresh and hygienic by the time itreaches the end customer.

Food

The most important factor in the fast food industry is the product itself, that is the foodthat is offered to the customers which is expected to be fresh, hygienic and inaccordance with the taste of the consumers.

Price

Price again is an important factor but only when the customer is indifferent between twodifferent brands of fast food joints. If the taste and brand name of a particular chain

are higher then the customer would not mind paying even a higher price for theproducts and services. This is due to the changing profile and habits and lifestyle ofcustomers and emergence of a huge middle class in India.

Interiors/Ambience

In the service industry physical evidence carries key importance. The ambience inside theoutlet is what the customers today look for as the trend is moving towards lookgood feel good.

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Prompt service: As the name suggests fast food is all about serving the food fast andquick to the customers, therefore promtness in service is crucial.

Friendly staff: This again is part of physical evidence and fast food industry being part ofretail industry where customization is of key importance friendliness of staffbecomes crucial.

Variety of food: Earlier the concept of fast food was only limited to pizzas and burgersbut now a lot of Indian variety is being added to it.

Location

Location is a critical factor in restaurant planning. The ability to capture sufficientcustomer volume from primary trade area residents, day-workers and tourists is essentialin estimating restaurant feasibility.

Traffic patterns can provide an important indicator of the level of exposure a newrestaurant would receive at a specific downtown location. Similarly, "demand

generators" in the community need to be identified as they contribute to restaurantutilization levels. Company offices and manufacturing firms, hospitals, colleges andretail stores typically generate a significant amount of restaurant business, often fromnonresidents coming into the community. Finally, market demand for a restaurant maybe positively impacted by future increases in employment, expansion or new constructionof commercial buildings, new residential housing, and street and transit improvements.

Other Customer groups

Customers prefer to go to places where the crowd is in accordance with their ownattitudes and lifestyles. Hanging out is the trend amongst the youth and that is why crowd

(kind of other customers) in the outlet also becomes crucial.

Brand Name

As already explained the target segment for the fats food joints are the young energeticyoung customers who are in the look good, feel good category. Brand value for thistarget segment becomes an important parameter in choosing their choice of outlet as thissegment is image and standard conscious.

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THREATS/CHALLENGES

A recent WHO projection reveals that the diabetic population worldwide may swell to 30crore by 2025, 20 per cent of which will be in India.

Another disturbing trend in urban India is obesity among children and youngprofessionals, fuelled by fast food and lack of exercise. According to a study at theDharmavira Heart Centre of Sir Ganga Ram Hospital, of the 1,500 bypass surgeriesduring the last three years, as many as 110 were performed on persons below 40 years ofage. Therefore awareness drive is making Indians more careful of their health.

Also as already mentioned location is a very important factor therefore companies haveto choose the most costly locations for the purpose of setting up of their outlets. Also, inorder to create brand awareness and brand preference heavy advertising costs need to beincurred.

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THEORITICAL FRAMEWORK

WHAT IS A SERVICE?

A service is any act or performance that one party can offer to another that is essentiallyintangible and does not result in the ownership of anything. Its production may or maynot be tied to a physical product.

THE FOUR DISTINCTIVE CHARACTERISTICS OF SERVICES

INTANGIBILITY

Services are performances or actions rather than objects. They cant be seen, felt,tasted or touched as objects.

Services cannot be inventoried and therefore fluctuations in demand are oftendifficult to manage.

Services cannot be patented legally and therefore can be copied by competitors.

Services cannot be readily displayed and so the to the customers.

Actual cost of a unit of service is hard to determine.

HETEROGENEITY

Services are performances produced by humans no two services will be precisely

alike. Also, no two customers are alike in demands and experience the service in a

unique way.

The quality of service cannot be controlled because it depends upon factors likeunderstanding customer needs, willingness of service provider, presence of othercustomers and the level of demand of service etc.

INSEPARABILITY

Most services are sold first and then produced and consumed simultaneously.

Frequently customer is present while the service is being produced and thus views

and may even take part in the production process, may interact with othercustomers, which in turn will affect each others experience.

Products find themselves as a part of product itself and as an essential ingredientin service experience for the customer.

Mass production is difficult if not impossible.

Operations need to be relatively decentralized to deliver service directly tocustomer.

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Problem customers can disrupt the service resulting in lowered customersatisfaction.

PERISHABILITY

Services cannot be saved, stored, resold or returned.

Services cannot be inventoried.

CUSTOMER SATISFACTION AND SERVICE QUALITY

Satisfaction and service quality are closely related. Satisfaction compares perceptions towhat consumers wouldnormally expect. While,Service Quality compares perceptions towhat a consumershouldexpect from a firm that delivers high-quality services.

The SERVQUAL Model: The Five Quality Dimensions

Delivering Quality Service a book by Valerie A. Zeithaml, A. Parasuraman, and LeonardL. Berry identified five quality customer service dimensions: reliability, assurance,tangibles, empathy, and responsiveness. These co-authors stated customer service mustembody all five-quality dimensions.

The approach starts from the assumption that the level of service quality experienced bycustomers is critically determined by the gap between their expectations of the serviceand their perceptions of what they actually receive from a specific service provider(Donnelly and Dalrymple, 1996). The SERVQUAL model proposes five dimensionsupon which customers evaluate service quality

Figure 1

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GAP BETWEEN

EXPECTED SERVICE

AND PERCEIVED

SERVICE

TANGIBLES

RELIABILITY

RESPONSIVENESS

ASSURANCE

EMPATHY


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Table 3

TANGIBLESThe Appearance Of Physical Facilities, Equipment, Personnel,And Communication Channels

RELIABILITYThe Ability To Perform The Promised Service Dependably AndAccurately

RESPONSIVENESSThe Willingness To Help Customers And Provide PromptService

ASSURANCEThe Competence Of The System And Its Security, CredibilityAnd Courtesy

EMPATHYThe Ease Of Access, Approachability And Effort Taken ToUnderstand Customers Requirements

SERVQUAL Based Measures for Fast Food Joints

MEASUREMENT VARIABLELATENT

VARIABLE

1. Equipment and facilities Tangibles

2. Accessibility Tangibles3. Comfort Tangibles

4. Building and location Tangibles

5. Product selection Tangibles

6. Deliver service at the right time Reliability

7. Deliver service of the right quality Reliability

8. Helping when problems occur Reliability

9. Ability to provide prompt service Responsiveness

10. Assigning time to help customers Responsiveness

11. Information about the services Assurance

12. Trust in company Assurance13. Employees create security Assurance

14. Employees treat you with respect Assurance

15. Employees are polite Assurance

16. Employees give personal attention Empathy

17. Employees understand your needs Empathy

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DESIGNING THE QUESTIONNAIRE

On the basis of this table, eight parameters were incorporated in the questionnaire. Thelatent variable were being measured in the following manner through these eight

parameters:

Table 4

Parameter Latent variable

Friendliness of the Staff Assurance, Empathy

Customer Groups Assurance

Price Reliability

Prompt Service Reliability, Responsiveness

Location of the Branch Tangibles

Interiors of the Bank Tangibles

Food Quality Tangibles

Variety of food Tangibles

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ANALYSING THE FINDINGS: IMPORTANCE/PERFORMANCE MATRIX

One of the most useful forms of analysis the marketing research is the

importance/performance matrix. This chart compares information about customerperceptions and importance ratings. The matrix can be designed as shown below.

Importance is represented on the vertical axis from high (top) to low (bottom).Performance is shown on the horizontal axis from low (left) to high (right).

Figure 2

H

I

M

P

O M

R

T

A

N

C

E

L

L M H

PERFORMANCE

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BUCK UP IMPROVEMENT KEEPREQUIRED IT

UP

PAY ATTENTION MAINTAIN IT DONT OVER

EMPHASIZE

LOW PRIORITY SHIFT DIVERT


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MARKETING STRATEGIES (Marketing mix)

ADOPTED BY VARIOUS PLAYERS:

1. NIRULAS

Product

Nirulas offers variety of products like savories and pastries, vegetable and non vegetable burgers and pizzas, sandwiches, cookies, footlongs, platters, condiments and syrups,Indian food in form of thali, nan, roti, tandoori and curries, ice creams, ice cream shakes,milk shakes, triple sundaes and various beverages.

Thus Nirulas is one stop-eating joint for customers, which offers variety of food, i.e. both

Indian and western with plenty of other items that can be consumed as snacks or as partof main meal.

Price

Nirulas offers its products at a fair price. Its vegetarian and non vegetarian burgers rangefrom Rs. 20 to Rs 60. Regular pizzas range from Rs 65 to Rs 105 both in the vegetarianand non vegetarian categories. Vegetarian and no vegetarian thalis cost Rs 79 and Rs 89to the customers. Footlongs range from Rs 60 to Rs 75n tandoori and curries range fromRs 40 to Rs 110n sandwiches cost Rs 46 and platters about Rs 60 to Rs 70. Condimentsand syrups cost Rs 34 to Rs 60, ice creams Rs 20 to Rs 60. Soda fountain and beveragesrange between Rs 10 and Rs 60. Apart from these super meal deals ranging from Rs 60 to

Rs 120 are offered to the customers.

Promotion

Nirulas promotional activities are targeted towards children primarily. They offercomplimentary cakes and complimentary present for the birthday child in childrenparties. Apart from this they have an ice cream of the month, which is different everymonth. In certain outlets, Nirulas offers free tea or coffee on orders in excess of Rs 50.Apart from these Nirulas has super value meals that provide greater value for money tocustomers.

Place

Nirulas outlets are evenly distributed throughout the Delhi and NCR region. Nirulasgenerally opens its outlets in commercial areas which are thickly populated throughoutthe day. Apart from this nirulas also offers free home delivery to its customers.

Physical evidence

Nirulas interiors are simple and yet a decent dcor and cleanliness is maintained in thenirulas outlets.

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Process

The food processing process is visible to the customers i.e. if the customers desire theycan view the food being manufactured.People

The people involved in the production and delivery process to the customers at nirulas

have uniforms and aim to address to customers orders as quickly as possible.

2. MC DONALDS

Product

Mc Donalds product portfolio primarily comprises of vegetarian and non-vegetarian burgers. The vegetarian burgers like Veg surprise, salad sandwich, Mc Aloo TikkiBurger, Mc veggie burger are offered to the customers. Non-vegetatarian burgers includeChicken Mc grill, Mc chicken burger, Fliet of fish and chicken maharaja burger. Alongwith these french-fries, veg pizza mc puff, wrap chicken Mexican, wrap paneer salsa,potato wedges, soft serve pineapple and choclate ice creams, Mc swirl soft drinks, coffee

and Mc shakes are also offered to increase the variety in the product portfolio. McDonalds also provides mean combos with medium fries and medium soft drink, happymean with small soft drink, econo meals with small soft drink and value meals withpotato wedges and small soft drink.

Price

Mc Donalds vegetarian burgers are priced between Rs 20 and Rs 45. Wrap paneer salsa ispriced at Rs 45. The non vegetarian burgers are priced between Rs 26 and Rs 60. Wrapchicken Mexican is priced at Rs 55. Medium French fries are priced at Rs 28, potatowedges at Rs 20 soft serves at Rs 35, mc swirl at Rs 12, medium soft drinks at Rs 2 andmedium shakes at Rs 41.

Promotion

At Mc Donalds the prime focus is on targeting children. In happy meals too which aretargeted at children small toys are given along with the meal. Apart from this, variousschemes for winning prices by way of lucky draws and also scratch cards are given whenan order is placed on the various mean combos. In fact, the various econo meals andvalue meals also signal to the customer that buying separate items results in greater valuefor money for the customer.

Place

Mc Donals outlets are very evenly spread throughout the NCR region. Mc Donalds doesnot offer home delivery but its outlets are very readily accessible. Mc Donalds also offerstake away drive through facilities.

People

The employees in Mc Donalds have a standard uniform and Mc Donalds speciallyfocuses on friendly and prompt service to its customers from their employees.

Process

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The food manufacturing process at Mc Donalds is completely transparent i.e. the wholeprocess is visible to the customers. In fact, the fast food joint allows its customers to viewand judge the hygienic standards at Mc Donalds by allowing them to enter the area wherethe process takes place. The customers are invited to check the ingredients used in food.

Physical evidenceMc Donalds focuses on clean and hygienic interiors of is outlets andat the same time the interiors are attractive and the fast food joint maintains a properdecorum at its joints.

3. PIZZA HUT

Product

As the name suggests, this fast food joint basically concentrates on providing pizzas to itscustomers. Pizza Hut is indianizing the dishes by introducing regional varieties likeChicken Chettinad, Channa Batura, Chicken Tikka, spicy Korma, etc. Apart from theseIndian favorites, it also provides supreme pizzas, lovers line which include Italian

chicken pizzas as well as vegetarian pizzas. Both vegetarian and non vegetarian toppingsare provided along with vegetable garlic breads. Salads and beverages are also availableat the outlets.

Price

The vegetarian and non vegetarian Indian favorite pizzas are priced in the range of Rs115 to Rs 130 and Rs 170 to Rs 200 for medium size pizzas respectively. The lovers linevegetarian pizzas are priced between Rs 185 and Rs 235 while lovers line non vegetarianpizzas are priced between Rs 220 and Rs 240 for medium size respectively. Supremescost Rs 250 to Rs 270 to customers. Vegetarian and non vegetarian toppings cost Rs 20 toRs 50 to customers. Garlic bread is also priced Rs 35 to Rs 50. Salads and beverages arepriced Rs 65 and Rs 18 respectively.

Promotion

Promotional activities by way of television advertisements wherein the Indian feel isgiven to the customers about the outlet are carried out ad also discounts for higher ordersor garlic bread or pepsi free with supreme pizza or large pizza orders are given.

Place

Pizza Hut opens its outlets at various commercial centers in the national capital and NCRregion that are in the renowned or upper market areas. Also free home delivery isprovided to customers based on the areas specifies to each outlet with a minimum panpizza ordered for delivery.

Physical evidence

Lot of emphasis is given on interiors of pizza hut as pizzas are generally consumed byupper end segment customers, therefore the outlet invests reasonably on its interiors andmakes sure that a decorum and cleanliness is maintained.

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Process

The food manufacturing process is not transparent at Pizza Hut. The orders are collectedbut employees and delivered to customers tables.People

Prompt and quick services are the aim of the employees in the fast food joint. Employees

have separate uniforms so that the customers are able to easily identify them.

4. DOMINOS

Product

Dominos offers both vegetarian and non vegetarian pizzas to its customers. The items inthe vegetarian category are classic hand tossed pizzas that include Mexican green wave,original margherita, country special, veg extravaganza , gourmet and ofcourse somepizzas to suit typical India tastes like peppy paneer and paneer do pyaaza. In the nonvegetarian category classic hand tossed pizzas include Mexican red wave, barbequechicken, golden delight, deluxe chicken, non veg extravaganza, meetza and ofcourse for

typical Indian tase there are chicken chettinad, spicy chicken and keema do pyaaza.Along with these garlic breadsticks, twist bread, Chicago wings and coke beverage alsoprovided to customers.

Price

The medium size vegetarian pizzas are priced between Rs 110 and Rs 210. The mediumsize non vegetarian pizzas are priced between Rs 149 and Rs 229. The prices at dominosare comparatively lesser than that of other pizza joints such as Pizza Hut and PizzaCorner. Garlic bread sticks are offered at Rs 39, twisty bread at Rs 30, Chicago wings atRs 65 and cheesy dips at Rs 10.

Place

Domino's Pizza, the world over, is known as a leading provider of freshly baked pizzastopped with quality ingredients and cheese. Domino's is positioned as global Pizzadelivery expert. Home delivery of hot and fresh pizzas is guaranteed within 30 minutes ofplacing of order. Although outlets are even distributed throughout the national capitalregion, dominos core competence is delivery rather than more of customers visiting thepremises of the fast food joint.

Promotion

Like pizza hut, Dominos has also been encouraging customers to make big orders byproviding discounts on them. Dominos picks up randomly from their record of customersphone numbers of customers and offers them special schemes and discounts on variousitems or combination of items.

Physical Evidence

The interiors and the dcor at the outlets is maintained just of an average quality withseating capacity not very high. This is mainly due to the fact as already mentioned abovethat the core strength of Dominos is delivery.

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Process

The process of preparation of pizzas is not transparent and not visible to customers assuch even for those who visit the premises of the fast food joint.People

Dominos employees have a standard uniform and they deliver to customers on two

wheelers with Dominos written on the vehicle and they deliver to the customer when thecustomer exactly needs it or within half an hour of placing of the order as the customerspecifies.

5. WIMPYS

Product

At Wimpys both burgers and pizzas are offered to the customers. Vegetarian burgersinclude aloo burgers, bean burgers, paneer burgers and chana masala burgers. The nonvegetarian burgers include lamb, chicken and fish burgers. Vegetarian pizzas like plaincheese capsicum onion, tomato, mushroom while non vegetarian burgers like minced

lamb, chicken capsicum, onion and half n half are offered to customers. Nuggets, drumsticks, fish chips, fries, fresh bake like patties, rolls and garlic bread also offered tocustomers. Then wimpy duets i.e burgers or pizzas with small pepsi and mega meals i.e.burgers with regular fires and pepsi or large pizzas with regular pepsi are also provided tocustomers. Other beverages and shakes are also included in product profile.

Price

The vegetarian burgers are priced between Rs 20 and Rs 40. Lamb burgers, chickenburgers and fish burgers cost Rs 25 to Rs 50, Rs 48 to Rs 5 and Rs 45 respectively. Thevegetarian and non vegetarian medium size burgers are priced between Rs 60 and Rs 80and Rs 90 and Rs 100 respectively. Assorted treats are priced between RS 25 Rs 40, freshbake costs Rs 7 to Rs 15 to customers, duets are priced between Rs 29 and Rs 99, megameals are priced between Rs 65 and Rs 165, beverages are available at Rs 15 to Rs 20,thick shakes at Rs 35 per medium size and ice cream/ sundaes between Rs 6 to Rs 40.

Place

Wimpys outlets are not very thickly situated all around the NCR region. In fact now notmany Wimpy joints operate like restaurants, most of them are now take away joints. Freehome delivery is also available from selected outlets covering a given area.

Promotion

Scratch cards are given to customers with the orders placed to win certain prices. Thenoccasionally there are also lucky draws that the fast food joint comes out with to attractcustomers.

People

There is no standard uniform for employees at Wimpys. The employees aim to providequick and prompt service to customers.

Process

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The manufacturing process in not transparent i.e. it is not visible to the customers.

Physical evidence

Proper dcor and cleanliness is maintained at the outlets. Sometimes even at the take

away outlets couple of desks are kept outside for those who want to eat quickly.

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DATA PREPARATION AND ANALYSIS

Primary research was carried out to study both qualitative and quantitative aspects

with the help of a structured undisguised questionnaire. The results of the survey arediscussed below:

1) FREQUENCY OF VISIT

This question was asked to determine how popular fast food joints have become amongstcustomers. It was observed during the survey that the frequency of visit varied inaccordance with the age of the customers.

a) Age Group 15-25 (Sample Size 140)

Frequecy of Visit (Age Group-15-25)

13%

46%14%

6%

21%Daily

Weekly

Fortnightly

Once a Month

Occasionally

Analysis:

The above graph shows the frequency of visit of category 1 to Fast Food joints.Maximum number of respondents visit these joints weekly. This could be attributedto the carefree lifestyle that this category has and their liking for fast food.

Respondents with results indicating occasional visits to Fast Food Joints form thatpart of this age group for whom fast food is not a regular feature. Figures for Dailyvisitors indicate that the concept of Fast Foods is picking up and there is anunderlying potential to be tapped by Fast Food Joints.

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b) Age Group 26-35 (Sample Size 70)

Frequency Of Visit (Age Group 26-35)

0%

51%

23%

9%

17%Daily

Weekly

Fortnightly

Once a Month

Occasionally

Analysis:

Most of the respondents in this category visit Fast Food Joints weekly, preferably onweekends with their spouse and children. Fortnightly visits indicate lack ofavailability of time.

Also, there are no daily visitors in this category as it is not feasible for people of thisAge Group to spend time daily at Fast Food Joints.

c) Age Group Above 35 (Sample Size 40)

Frequency of Visit (Age Group > 35)

0% 25%

25%20%

30%Daily

Weekly

Fortnightly

Once a Month

Occasionally

Analysis:

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This category visits Fast Food Joints occasionally owing to less liking towards Fast Foodand lack of availability of time. Generally their visits are determined by the desires ofothers, like their family, children etc.

2) VISIT INFLUENCERS

A question was asked to respondents as to who influenced their visit to a fast food joint.A promotional strategy in accordance with the visit influencers could be formed. Again itwas noticed during the survey that visit influencers were considerably different forcustomers from different age groups.


Visit Influencers (Age Group 15-25)

8%

79%

1% 12% Children

Friends

Spouse

Others

Analysis:

In this category (Sample Size 140), friends play a very important role in influencingcustomers visit to Fast Food Joints. This can be explained as people of this age groupgenerally hang out with their friends. Other influencers in this age group are family, etc.

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Visit Influencers (Age Group 26-35)

33%

33%

21%

13%Children

Friends

Spouse

Others

Analysis:

Children and friends play an equally important role in influencing their visit to Fast FoodJoints. Spouse stands as second most important factor as opposed to the first category.Here we see, that though the relative importance of friends as an influencer has declinedas compared to Category 1 but it is still substantial. Also, the relative importance ofchildren and spouse has gone up as this age group comprises of newly weds as well asparents with small children.

c) Age Group >35 (Sample Size 40)

Visit Influencers (Age Group >35)

68%

18%

9% 5%Children

Friends

Spouse

Others

Analysis:

Children play the most important role in influencing their visit to a Fast Food Joint,followed by friends and spouse. Here we also see the changing priorities of theconsumers over the three age categories, thus signifying the difference of approach andopinion towards Fast Food Joints by them.

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3) IDEA OF A FAST FOOD JOINT (Sample Size 250)

There was a question to customers as to what was their idea of a fast food joint. Therationale for this question was to identify the customer expectations with regard to speedof delivery in a fast food joint.

Idea Of a Fast Food Joint

42%

48%

10%Instant Service

5-10 Min.Waiting

10 minutes &

Above

Analysis:

The above graph shows how respondents perceive the idea of a Fast Food Joint. Majorityof the respondents idea of a Fast Food Joint is 5-10 minutes waiting, closely followed byInstant Service.

This shows that the concept of Fast Food Joint in India is somewhat different from that ofmost of the foreign countries where they strongly believe in Instant Service and DriveThrough. This also explains the need for greater space as the waiting time is more, asmost people prefer to stay in Fast Food Joints and have their grub.

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4) FAST FOOD AS A SUBSTITUTE FOR(Sample Size 250)

There was a question to customers as to what did they consider fast food joint as asubstitute for. The rationale for this question was to identify for what purpose did

customers visit fast food joints and whether the fast food concept had become a part ofIndian culture or was it still considered as a western grub.

Fast Food as a Substitute For

67%2%

17%

10% 4% Snacks

Breakfast

Lunch

Dinner

Any Other

Analysis:

This graph shows how and what consumers perceive fast food as a substitute for. A majorpart of the sample population (Sample Size 250) visit the Fast Food Joints for snacks,while on the other side, lunch accounts for only 17%. This indicates that most peoplevisit Fast Food joints for snacks and not for regular meal.

This explains the menu of most fast food joints, which have snacks as their major menu.This gives the Indian fast food industry an impetus to attract the Indian consumer andexplains the growing importance of fast food joints in India.

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5) MOST PREFERRED FOOD IN FAST FOOD JOINTS

A question was addressed to respondents as to what is their most preferred food in fastfood joints. The rationale of the question was to identify customer preferences and

expectations.

Preferred Food in Fast Food Joints

34%

28%

12%

25%1% Burgers

Pizzas

Milk Shakes

Ice Creams

Others

Analysis:

Over the sample of 250 respondents, Burgers and Pizzas seem to be most popular food inFast Food joints. This indicates that there is a good opportunity for the multinational fastfood joints, which have burgers and pizzas as their main menu. For e.g. McDonalds &Pizza Hut.

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6) AVERAGE TIME SPENT ON FAST FOOD JOINTS

A question was asked to respondents about he average time they were willing to spend infast food joints. The rationale of the question was to identify the customer behavior in

fast food joints.

Average Time Spent At Fast Food

Joints

19%

57%

17%7%

Less Than 1/2 Hr

1/2 Hr - 1 Hr

1 Hr.and Above

Take Away/Drive

Through

Analysis:

Majority of the respondents in the sample (Sample Size 250) on an average spendbetween 1/2 an hour to 1 Hour in Fast Food Joints. This shows that majority of the peopleperceive Fast Food Joints as a place to eat and relax rather than just a quick meal. For e.g.McDonalds in Preet Vihar has increased its seating capacity. This also explains the needfor greater space.

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8) SOURCE OF INFORMATION

There was question addressed to respondents as to from where did they come to knowabout the fast food joints. The rationale of the question was to determine the most

optimum form of media to reach maximum customers.

Source Of Information

20%

9%

16%

50%

5% News Paper

Leaflets

Television

Friends

Others

Analysis:

Over the sample of 250 respondents, the major source of information for the visitors ofFast Food Joints are friends, for the Age Group of 15-25 years and in other age groups aswell. The visitors are mostly influenced by their friends, which are the primary source of

information and bear a significant influence on them. Therefore, here the word ofmouth plays an important role in the success rate.

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9) FREEBIES OFFERED

A question was asked to respondents whether freebies offered by the fast food jointaffected their visit or choice of a fast food joint. It was observed that there was a

considerable correlation between age and choice of customers for a fast food joint.


Agreement on Freebies affecting Visit

to Fast Food Joints (Age Group 15-25)

Yes

64%

No36%

Yes

No


Agreement on Freebies affecting Visit to

Fast Food Joints (Age Group 26-35)

Yes

43%No

57%

Yes

No

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c) Age Group >35 (Sample Size 40)

Agreement on Freebies Affecting Visit

to Fast Food Joints (Age Group >35)

Yes

62%

No

38% Yes

No

Analysis:

According to the Survey results, freebies offered influences the visit to Fast Food Jointsto a great extent, for the age group of 15-25 years and 35 & above but not too much in theage group of 26-35 years.

The reason for freebies attracting the 1st category (15-25) is that this category is generallynot financially independent and thus schemes; discount coupons largely influence theirvisit as they save money with the help of these freebies.

The reason for high influence of freebies in the third category (35 and Above) is becausechildren are greatly attracted towards the Free gifts offered by the Fast Food Joints andthrough children the whole family is attracted towards Fast Food corners.

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10) FREEBIES PREFERRED

Another question was asked to respondents which kind of freebies attracted them themost. The rationale of the question was to determine as to what kind of freebies could beoffered to attract the customers.

Types of Freebies Preferred

33%

35%

31%1%

Schemes

Discount

Coupons

Free Gifts

Any Other

Analysis:

174 respondents out of a total sample of 250, who agreed with freebies positivelyaffecting the frequency of visit to Fast Food joints, voted for the freebies such as discountcoupons, free gifts and schemes.

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11) AGREEMENT ON THE CONCEPT OF TAKE AWAY / DRIVE THROUGH

A question was asked to respondents whether or not the concept of take away/ drivethrough was appreciated by customers to determine customer preferences.

Agreement with the Concept of Take

Away / Drive Through

Yes

90%

No

10%

Yes

No

Analysis:

The survey shows a very positive result towards the Take Away / Drive Through concept.Thus, it can be inferred that this value added service can lead to a substantial increase inthe sales of Fast Food Joints as it will be able to attract a lot of customers who aregenerally short of time.

TAKE AWAY / DRIVE THROUGH INCREASING THE FREQUENCY OF VISIT TOFAST FOOD JOINTS

Take Away / Drive Through Increasing

Frequency of Visit

Yes

67%

No

33%Yes

No

Analysis:

Out of the 225 respondents of a total sample of 250 who agreed with the concept of TakeAway / Drive Through in Fast Food Joints, 67% or 151 respondents have experienced anincreased frequency of their visits because of this concept. Thus, this service hasinfluenced the visit of a large proportion of the people who agreed to the concept of TakeAway / Drive Through.

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12) FAST FOOD INDUSTRY

The respondents were asked to rate certain parameters in the Fast Food Industry as awhole on a scale of (1-3). The rationale of he question was to determine how muchimportance or weights the customers assigned to these parameters.

Feature Rating Of Fast Food Joints

00.5

1

1.5

2

2.5

3

Food

VarietyofFood

Price

Service

Interiors

Frien

dlyStaff

Location

Play

Rooms

Crowd

Features

Scale

(1-3)

Analysis:

As seen from the above graph, service, food, & variety of food, stand as a few mostimportant features of the fast food joints in general, on which the customers frequency ofvisit largely depends. Location and other customer groups also stand as few otherimportant features of the fast food industry as a whole.

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13) Mc Donalds Vs Nirulas Vs Pizza Hut Vs Dominos Vs Wimpys

On the above mentioned parameters the respondents were again asked to rateperformance of various players in the industry. The rationale of the question was toidentify how the various players were performing on the various parameters in the eyes of

the customers.a) FOOD

Comparison Of Fast Food Joints on Food

0

1

23

4

5

McDo

nalds

Pizza

Hut

Nirula's

Domino's

Wimpys

Fast Food Joints

Scale(1-5)

Analysis:

As evident from the figure, McDonalds has been rated the best in case of food, leaving itscompetitors way behind. Pizza Hut is rated to have the second best quality of Food.Nirulas and Dominos are more or less on the same platform while Wimpys is laggingbehind.

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b) PRICE

Comaprison of Fast Food Joints on

Price

0

1

2

3

4

McDo

nalds

Pizza

Hut

Nirula's

Domino's

Wimpys

Fast Food Joints

Scale1-5

Analysis:

Respondents have found McDonalds to have the best value for money. Closely standingNirulas also provides a fairly good bargain in terms of price. Pizza Hut, Dominos &Wimpys need to work on the price front since respondents feel that they are on a higherside.

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c) INTERIORS


Interiors

0

1

2

3

4

5

McDo

nalds

Pizza

Hut

Nirula's

Domino's

Wimpys

Fast Food Joints

Scale(1-5)

Analysis:

Interiors include dcor, ambience and cleanliness. Interiors of McDonalds is rated thebest. Pizza Hut is rated as second best while Nirulas has been rated as average whileWimpys and Dominos have been rated as below average.

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d) PROMPT SERVICE


Promptness Of Service

0

1

2

3

4

5

McDo

nalds

Pizza

Hut

Nirula's

Domino's

Wimpys

Fast Food Joints

Scale

(1-5)

Analysis:

In terms of prompt service Mc Donalds takes the lead, thus satisfying its customers moreefficiently & quickly than others. Pizza Hut has shown an average performance. Nirulas,Dominos, Wimpys need to improve on this front, as respondents are not satisfied withtheir service in terms of time taken.

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e) FRIENDLINESS OF STAFF


the Friendliness of their Staff

0

1

2

3

4

5

McDo

nalds

Pizza

Hut

Nirula's

Domino's

Wimpys

Fast Food Joints

Scale

(1-5)

Analysis:

McDonalds and Pizza Hut seem to be concentrating on what is known as relationshipmarketing, and are the two Fast Food Joints giving competition to each other whereMcDonalds has taken a lead in terms of Friendliness of Staff, followed by Pizza Hut andNirulas respectively. Dominos and Wimpys are way behind and thus seem to be loosingon their customers. In fact few of the respondents did mention the unfair attitude of the

staff towards its customers.

The reason for McDonalds and Pizza Hut taking a lead is mainly because of their staff,which consists mostly of fresh graduates who are enthusiastic and courteous.

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f) VARIETY OF FOOD


the Variety of Food Offered

0

1

2

3

4

5

McDo

nalds

Pizza

Hut

Nirula's

Domino's

Wimpys

Fast Food Joints

Scale

(1-5)

Analysis:

Nirulas is the leader as far as variety of food is concerned as it not only provides quickfood but also offers a mix of Indian and western food. Next to Nirulas are McDonalds,and Dominos that stands last as it lacks in variety.

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g) LOCATION

Comparison of Fast Food Joints on

Location

0

1

2

3

4

5

McDo

nalds

Pizza

Hut

Nirula's

Domino's

Wimpys

Fast Food Joints

Scale

(1-5)

Analysis:

In terms of location, McDonalds stands first followed by Pizza Hut because these two aregenerally located in the premium locations (Main Markets such as next to movie theatres,shopping Malls, etc) with good amount of interior space, whereas Dominos and Wimpysare ranked low in this feature as Dominos is particularly a Take Away Joint and does notoffer a free space.

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h) Customer Groups


Customer Groups

0

1

2

3

4

5

McDo

nalds

Pizza

Hut

Nirula's

Domino's

Wimpys

Fast Food Joints

Scale

(1-5)

Analysis:

McDonalds has been ranked the highest on the basis of crowd, which indicates that itenjoys a perfect brand image in the Indian market. Standing close is Pizza Hut, which hasbeen appreciated for its international brand thereby attracting good crowd.

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14) FAVORITE FAST FOOD JOINT ACCORDING TO THE RESEARCH

A question was addressed to respondents as to which was their favorite fast food jointand why. The rationale of the question to identify which all brands were doing well and

had a high brand recognition in the eyes of the customers.

Most Preferred Fast Food Joint

020

406080

100120140160

McDo

nalds

PizzaH

ut

Nirulas

Wimpys

Domino

s

Others

Fast Food Joints

N

umberofVotes

Analysis:

Mc Donalds has taken a clean sweep over its competitors and has been ranked as the

most favorite fast food joint by more than 50% of our sample size. This is mainly becauseof its quality of food, prompt service, affordable price, good interiors, location andfriendly staff. McDonalds is seen as a true fast food joint, by most of the respondents andone which fulfills the expectations of its customers in the best possible way. McDonaldshas been able to form high brand recognition in the Indian market as it had in the worldmarket by becoming one of the top ten popular brands of the world. McDonalds ishighest in brand recall due to its advertisements (both print and electronic media), publicrelations and sales promotions. Its advertisements carry an emotional appeal focusing onfamilies especially children. It has emphasized on freebies, schemes etc. a lot in itsadvertisements.

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Nirulas stands second and has been appreciated for its variety of food, affordable price aswell as for its reputation built in over the years. Nirulashas been one of the oldest in thechain of Fast Food Joints in India and therefore has been able to build a good brand namefor itself over the years to an extent that it is associated with the Fast Food concept likeBisleri brand is associated with mineral water.

Pizza Hutstands very close to Nirulas because of its wide variety of quality pizzas. It hasvery well maintained its international brand image as a Pizza giant of Italy. Pizza Hut hasa good brand recall because it has carried its brand image as an International Pizza giantin India. It has also penetrated into the Indian market by means of print media.

Wimpys and Dominos had the lowest Brand recall rates. Both Wimpys and Nirulasaccording to the survey lack in food quality, price, location, prompt service and othercustomer groups all of which are critical success factors for the industry. This explains

lower brand value for the two fast food joints.

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PERFORMANCE OF FAST FOOD JOINTS AGAINST THE AVERAGE

EXPECTATIONS OF CUSTOMERS

Following is a table that shows the relative performance of each Fast Food Joint vis--vis the Industry importance. (Table 5)

Attribute

s

Industry

Expectation

s

(1-3)

McDonalds

Performance

(1-5)

PizzaHut

Performance

(1-5)

Nirulas

Performance

(1-5)

Dominos

Performance

(1-5)

Wimpys

Performance

(1-5)

Food 2.6 4.13 3.6 2.99 2.74 2.34

Price 2.09 3.52 2.79 3.43 2.34 2.54

Interiors 1.9 4.4 3.81 3.12 2.01 2.17

Prompt

Service

2.72 4.02 3.33 2.75 2.71 2.43

Friendly

Staff

1.85 3.87 3.62 2.82 2.55 2.26

Variety of

Food

2.4 3.28 2.36 3.98 2.27 2.48

Location 2.24 4.16 3.57 2.98 2.15 2.28

Crowd 2.2 4.2 4.0 3.7 2.05 2.4

The above table shows the weights of importance assigned by the customers for thevarious parameters (on a scale of 1 to 3). Also the performance of various of variousplayers on a scale of 1 to 5 is shown in the above table.

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FINDINGS

From the previous chapter on Data Interpretation and Analysis certain findings on theperformance of various players relative to the industry importance can be depicted withthe help of an Importance Performance Matrix.

INDEX

SYMBOL PARAMETER

A - Food

B - Price

C - Interiors

D - Service

E - Friendly staff

F - Variety

G - Location

H - Customer Groups

ASSUMPTIONS

X Axis:0-1 is low

1-2 is medium

2-3 is high

Y Axis:0-1.7 is low

1.7-3.4 is medium3.4-5 is high

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McDONALDS

3

H

2

I

M

P

O M

R

T

A

N 1

C

E

L

0

1.7 3.4 5.0

L M H

Mc DONALDS PERFORMANCE

Analysis:

Features A,B,D,G,H have been given high weightage by the respondents andMcDonalds has also scored high. Thus it needs to keep up the good work.

Features E & C have been given weightage medium by the respondents but McDonaldshas scored high in these attributes. Therefore it can afford to shift its focus from thesefeatures into needed areas.

Feature F has been given high weightage by the respondents and McDonalds has got amedium score. It needs to concentrate here and improve on its variety of food.PIZZA HUT

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EMPHASIZE


AH

D

G

EC

B


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3

H

2

I

M

P

O M

R

TA

N 1

C

E

L

0

1.7 3.4 5.0

L M H

PIZZA HUT PERFORMANCE

Analysis:

Features A,G,H have been given high weightage by the respondents and Pizza Hut hasalso scored high on these attributes. Thus it needs to keep up its good work.

Features E,C have been medium weightage by the respondents whereas Pizza Hut hasscored high on these features. It should shift its focus into the areas where improvementis required.

Feature B,D,F have been given high weightage by the respondents but Pizza Hut has gota medium score. It needs to concentrate and improve on these features.NIRULAS

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A

H

G

E C

B

D

F


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3

H

2

I

M

P

O M

R

TA

N 1

C

E

L

0

1.7 3.4 5.0

L M H

NIRULAS PERFORMANCE

Analysis:

Features B,F,H, have been give high weightage by the respondents and Nirulas has alsoscored high on these features. Thus it needs to keep up the good work.

Features A,D,G have been given high weightage by the respondents, but Nirulas has gota medium score. It needs to concentrate and improve on these features.

Features E,C have been given medium weightage by the respondents and Nirulas has alsogot a medium score. Thus it should maintain its performance in these areas.DOMINOS

3

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UP


EMPHASIZE


BUCK UP IMPROVEMENT KEEPREQUIRED ITUP


EMPHASIZE


B

F

H

AD

G

E C


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H

2

I

M

P

O M

R

T

A

N 1C

E

L

0

1.7 3.4 5.0

L M H

DOMINOS PERFORMANCE

Analysis:

Features A,B,D,G,F,H have been given high weightage by the respondents and Dominoshas got a medium score. It needs to improve on these features.

Features C,E have been given medium weightage by the respondents and Dominos toohas got medium score. It should maintain its performance on these features.

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A

BH G

D

F

C E


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WIMPYS

3

H

2

I

M

P

O MR

T

A

N 1

C

E

L

0

1.7 3.4 5.0

L M H

WIMPYS PERFORMANCE

Analysis:

Features A, B, D, G, F, H have been given high weightage by the respondents andWimpys has got a medium score. It needs to improve on these features.

Features C, E have been given medium weightage by the respondents and Wimpys toohas got medium score. It should maintain its performance on these features.

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A

B

DF

H

G

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CONCLUSIONS AND DIRECTIONS FOR FUTURE RESEARCH

RECOMMENDATIONS

With reference to the findings discussed in the previous chapter, certain

recommendations for the various players have been listed below:

1. Mc Donalds

Mc Donalds has been performing high on the parameters food, price,service, variety of food, location and other customer groups and theseparameters have also been given high importance by the respondentsduring the survey. Therefore the fast food joint needs to keep up its goodwork as it is because of this high performance that Mc Donalds is themarket leader.

Factors like interiors and friendly staff have been given mediumimportance by the respondents and Mc Donalds has been performing very

high on these parameters. It is advisable for Mc Donalds not to overemphasize on these attributes and shift the extra resources towards otherimportant areas.

2. Pizza Hut

On the attributes food quality, kind of customer groups and location ofjoints, Pizza Hut has been performing highly and at the same time thesefactors have also been given high importance by the respondents. PizzaHut, thus it needs to keep up the good work.

Factors like price, service and variety have been given high importance byrespondents and Pizza Hut has been performing mediocre in these

parameters according to the survey. Pizza Hut has been performing highon attributes like interiors and friendly staff whereas these have attainedmedium importance by the respondents. Thus the fast food chain can shiftits focus from these areas to price, service and variety of food bydiversifying its product portfolio to suit Indian tastes and offering them atreasonable prices. Also the fast food chain should improve on its serviceby instructing its employees for further faster and more prompt service toits customers.

3. Nirulas

Nirulas is perceived to provide value for money according to the survey

results. Also Nirulas has performed high on parameters like variety offood and other customer groups which have also attained high importanceby the respondents. Thus Nirulas need to keep up its good work in theseareas.

Factors like food quality, prompt service and location have been givenhigh importance by the respondents whereas Nirulas is performingmediocre according to the survey conducted. Thus it needs to improve onthese areas. Nirulas has the advantage of providing Indian food as well as

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western food to its customers and it should capitalize on this strength byensuring the quality of food it offers to customers. Also customersperceive that Nirulas staff is it lacks on prompt service, therefore youngemployees should be employed and trained to deliver fast and promptservice to customers. Nirulas should also open up more outlets in the NCR

region as in some big markets its outlets are not available and thus thecustomers shift their choice of fast food joint.

Nirulas needs to maintain its performance on factors like interiors andfriendly staff as these have achieved mediocre importance by respondentsand the joint is performing mediocre on these parameters as wellaccording to the survey results.

4. Dominos

Factors like food quality, price, prompt service, variety of food, locationand customer groups have achieved high importance by respondents andDominos has been performing mediocre in these areas according to the

survey results. Dominos should make changes to its product portfolio sothat it is more appealing to the Indian customers providing them with morevariety at a reasonable price. Also Dominos core competence is homedelivery and that is why it lacks on the location parameter as such. But atthe same time it is clear that there has been an increase in the look goodfeel good category of customers who just dont wish to consume fast foodbut hang out and enjoy at these fast food joints. Thus Dominos shouldfocus on opening more outlets across the NCR region with higher seatingcapacity.

Dominos needs to maintain its performance on factors like interiors andfriendly staff as these have achieved mediocre importance by respondents

and the the joint iss performing mediocre on these parameters as wellaccording to the survey results.

5. Wimpys

Factors like food quality, price, prompt service, variety of food, locationand customer groups have achieved high importance by respondents andWimpys has been performing mediocre in these areas according to thesurvey results. Wimpys should make changes to its product portfolio sothat it is more appealing to the Indian customers providing them with morevariety at a reasonable price. Wimpys number outlets in recent times havebeen decreasing and now more of its joints are take away joints. But there

has been an increase in the look good feel good category of customers asmentioned above. Thus Wimpys should focus on opening more outletsacross the NCR region.

Wimpys needs to maintain its performance on factors like interiors andfriendly staffs as these have achieved mediocre importance by respondentsand the joint is performing mediocre on these parameters as wellaccording to the survey results.

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CONCLUSION

It's experience and taste, and not size or lineage, which makes the Indian customer

hungry for more. Most of the customers contacted in the survey said that they are loyal totaste and not to the retail outlet they dine in. Customers give the maximum importance toproduct per se and environment. According to the study, key factors that contribute to thefeel good factor from the consumer's point of view include service comprising transactionefficiency, friendliness and attentiveness of employees; quality consistency, variety,selection and freshness of products; and environment which cuts across the overallimpact, maintenance, sense of fun and ambience.

Mc Donalds has taken a clean sweep over its competitors and has been ranked as themost favorite fast food joint by more than 50% of our sample size. This is mainly becauseof its quality of food, prompt service, affordable price, good interiors, location and

friendly staff. McDonalds is seen as a true fast food joint, by most of the respondents andone which fulfills the expectations of its customers in the best possible way. Nirulasstands second and has been appreciated for its variety of food, affordable price as well asfor its reputation built in over the years. Pizza Hut stands very close to Nirulas becauseof its wide variety of quality pizzas. It has very well maintained its international brandimage as a Pizza giant of Italy. Both Wimpys and Dominos according to the survey lackin food quality, price, location, prompt service and other customer groups all of which arecritical success factors for the industry. This explains lower brand value for the two fastfood joints.

The study concludes that what will differentiate the winners from the losers in the long

run will not be the advantage of an early start or size, but a function of the customerexperience of the product on offer.

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QUESTIONNAIRE SAMPLE

1) Do you use Mobile?

Yes ( ) No ( )

2) Which Mobile connection do you have?

IDEA

RELIANCE

BSNL

AIRTEL

OTHERS

3) Why did you choose this connection?

4) Are you satisfied that the service offered to you? Why?

5) If you are not satisfying then why?

6) If some other companies give some extra facilities then will you switch over to that orstay with the present? Why?

7) What is your opinion about Idea mobile post paid service?

.

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8) Are you aware of SMS sending and receiving?

Yes ( ) No ( )

9) Are you aware of 12345?

Yes ( ) No ( )

10) Do you receive bills in time?

Yes ( ) No ( )

11) Have you find the staff of your local office helpful?

Yes ( ) No ( )

12) Would you like to give some suggestion?

__________________________________________________________________

___________________________________________________________

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BIBLIOGRAPHY

BOOKS

Boyd W. Harper, Westfall Ralph & Statsch F. Stanley (2001), MarketingResearch: Text and Cases (7th Edition), All India Traveller Bookseller.

Kotler Philip (2001) Marketing Management (10th Edition), Prentice Hall IndiaPrivate Limited.

Zeithaml & Bitner (2001), Services Marketing: Integrating Customer FocusAcross The Firms, Tata Mc Graw Hill Publication Company Ltd.

WEBSITES

www.

Documents

Fast Food Joints Vvvvv