Final ProjectSubmitted in partial fulfilment of the requirements of the courseBusiness Research Methods (Final Submission)

A report submitted to

Instructor: Prof. Sanjeev TripathiAcademic Associate: Ms Sonal GogriOn16th March 2015

ByGroup B2Abhinav Singhal, Ashar Ahmad Khan, Rahul Gautam, Sarang Khandekar, Saumeet Nanda, Shelly Kanodia.ContentsExploratory Research3Secondary Research3Problem Definition6Management Decision Problem7Marketing Research Problem7Research objectives7Research Design8Expert and customer interviews8Interview with Proprietor of Dons Deli Den:8Interview with Caf TANSTAAFL:10Interview of IIMA Students:11Conclusive Research12Research Matrix13Research Questions12Data Collection Methods15Changes Made After Pre-testing:24Code Book25Data Analysis26Decisions and Recommendations37Exhibits39References:41

Exploratory ResearchSecondary ResearchOnline food delivery service is a growing industry in India. As families go nuclear and more and more professionals/students stay on their own in cities and college campuses, home delivery food services are now an integral part of lives of more and more people. Burgeoning internet and mobile connectivity has scaled up the demand for delivery services as consumers find it convenient to order food from home. According to India Food Services Report 2013 by NRAI and Technopak, some prominent fast-food brands derive 30-40% of their revenues from delivery services. To a food outlet, the concept of home delivery services provides two-fold opportunity. First, it gives the opportunity to significantly increase its revenues beyond the limits of its physical assets by accessing new markets. Secondly, it allows new entrants to avoid excessive expenditure on renting and maintaining a large brick-and-mortar restaurant. Moreover, this also helps the outlet increase points of contact with consumers and encourages greater consumer loyalty. The real estate price boom of recent years has only gone on to further consolidate the growth of delivery services in the food market. Pizza Industry in India:Although pizza is not a traditional food in India, according to Weiss survey, bread, tomatoes and cheese are an integral part of the Indian diet. So, pizzerias have tailored pies to fit local tastes. The major players in India Pizza industry are Dominos, Pizza Hut, Papa Johns and Smokin Joes. Dominos currently owns 500 stores in India and has plans to reach 800 stores by 2016 targeting 150 new stores per year. Since the target customer of pizza industry is tech-savvy, many pizzerias began offering online ordering to its Indian customers in late 2010 and have already seen more than 10% of sales coming in through the web. In India, there are many region specific pizzerias who offer pizzas tailored to local taste. Consumers Value in Food Delivery System:An exploratory study on perceptions of young consumers on fast food restaurants (Anita Goyal, N.P. Singh: Consumer perception about fast food in India: an exploratory study 2007) reveals that consumers use the following attributes to pick a restaurant

(1) Variety of food. (2) Food taste and quality. (3) Ambience and hygiene. (4) Service speed. (5) Price. (6) LocationAmongst the above, customers prefer food taste and quality the most, by a healthy margin. Next come ambience and hygiene, service speed, price and variety of offerings in that order. Furthermore, the research reveals that around 97% of young customers believe that fast food items are of inadequate nutrition value and most of them seem to value nutrition content and hygiene of food items. This would explain the consumers using fast food restaurants as occasional indulgences. This also explains the frequency of fast food outlet visits for snacks in the evening being perceptibly greater than frequency of visits for either lunch or dinner.Retailers are increasing the number of grab and go stores increasing the competition for delivery services. In spite of the growing demand for home delivery services, the supply exceeds demand creating a challenge for the suppliers to retain its preferred position. On the other hand, apart from tele-ordering, the food and beverage sector is also participating in the growing popularity of online and mobile shopping. Every customer, consciously or otherwise, evaluates the services of the supplier on the basis of some set expectations. Delivering food presentsunique challenges, such ashiring and retaining reliable driversand packaging food properly to maintain its quality. To become successful it is paramount that the delivery is done in a timely manner. Convenience, taste, texture and accuracy in ordering are very important. Consumers want theeat outexperience of quality food but are saving money by eating food delivered to their home. The increase of at home leisure activities has been a key growth driver in the take-out and delivery franchise sector. What customers valued the most in such deliveries is the quality and delivery time. There cannot be a trade-off allowed between the two, specifically in the food delivery category. Another important expectation is the convenience in placing an order. Be it via any medium, a complicated ordering system could result in losing the customer since the switching cost is very low. Certain hygiene factors that the service provider needs to be cautious about are- temperature of the food delivered ease of eating from the containers, a menu card added in the delivery.Fast Food Consumption Patterns:According to studies conducted by AC Nielsen, India is among the top 10 markets across the Asia Pacific contingent in terms of fast food consumption. It currently holds seventh position. Indias growing urban population holds huge potential for these fast food restaurants and chains, with over 70% of the Indian consumers living in urban areas consuming fast food at least once a month. As per the surveys, Pizza Hut by far is the most preferred brand among Indians when it comes to ordering pizzas. The preference of a brand in the food ordering business especially concerned with pizza depends on a wide variety of parameters. As per the survey, 24% of Indians consider the quality of service as a key decision making criteria while ordering fast food. On the other hand 22% Indians consider health and nutrition of the food while selecting the fast food brand.Promotion Strategies used by Fast Food Industry:The fast food industry is highly competitive and hence, in order to attract more customers, each chain needs to develop a marketing strategy for itself. There are different ways through which they promote themselves and drive customer loyalty.1. Collectibles: Some fast food companies like McDonalds target children by providing merchandise (like toys and mementos) related to cartoon character or a movie free with the food. This entices the children to keep coming back till they have the entire collection. 2. Loyalty programs: Frequent customer cards are offered by some joints wherein they offer their customers more attractive incentives the more number of times that they visit their joint.3. Time guaranteed delivery: To serve the young urban customers who look for instant gratification, some fast food joints offer a guarantee of delivering the food within a specified time limit or else the food is given for free/ or at a substantial discount.4. Social media: A lot of joints extensively use social media to advertise them. They also use rating websites like Zomato where people who have visited the restaurant rate their experience and also provide reviews. Hence, a lot of new customers like to refer to such websites these days before visiting a new place. Advertising on these platforms has become a major source of attracting new customers and also retaining existing ones.5. Societal marketing: Through this, joints aim to capture that segment of the market which relates to their ideas and values in terms of charity and hence may patronize them.Service Guarantees:Service guarantees are an extension of product warranties in the case of services. They help to reduce risk and increase confidence in the purchase. Food outlets these days are offering guarantees of two types, specific and unconditional. Specific guarantee gives details about both the coverage and the pay-out. For example, Delivery in 30 minute or Pizza for free. In unconditional guarantee, both the coverage and the pay-out are not specified. For example, Satisfaction guaranteed. According to various researches, normally an unconditional guarantee with a specific pay-out has the broadest appeal in the market. An example of this is 'Satisfaction guaranteed or your money refunded.Problem DefinitionThe door to door delivery scheme is becoming a norm in the Quick Service Restaurant (QSR) industry and other food outlets. In such a scenario, a recently-established small local restaurant like Dons Deli Den with delivery service that has met with limited success wanted to know if it can capture substantial sales from delivering at IIMA campus. If yes, then what parameters should they take into consideration while developing a delivery strategy given its limited resources and core competencies?

Management Decision Problem1) Should Dons Deli Den modify their delivery service to target the IIMA community?2) What factors should Dons Deli Den consider while designing such a scheme?Marketing Research ProblemDons Deli Den is seeking to offer door to door delivery service for the IIMA community. They wanted to know what will be the consumer acceptance and preference of such a service. Dons Deli Den also wanted to find out what factors which consumers consider for ordering food. Hence the following objectives have been defined:Research objectives

1) Should Dons Deli Den modify their delivery service to target the IIMA community?2) To determine the awareness of Dons Deli Den in the IIMA community.3) Assess the market opportunity of delivering food to the IIMA community in their rooms.4) To determine the consumer preference and acceptance of the scheme.5) Determine what attributes are considered important by the consumers (IIMA community in this case) while ordering food to their rooms and how Dons Deli Den performs on each of these factors.6) To understand what the impact of promotion schemes like discount coupons or time guarantees will have on the sales via delivery.7) To determine the ideal product mix for Dons Deli Dens delivery service design for the IIMA community (if it is profitable to do so).

Research DesignExploratory ResearchIn this phase, expert interviews were conducted with the manager(s) of outlets that currently offer room delivery services to IIMA community. They were questioned on the size of their business, the customer feedback they receive, any segments they divide the IIMA customers into, the attributes they think are the most important to customers and the steps they took (or feel they could have taken) in their initial days when they tried to enter the IIMA campus market.Extensive interviews were also held with the proprietor of Dons Deli Den, the decision-maker in this case and the operational limitations in terms of delivery time and delivery quantity/product variety of the pizza outlet were quantified.An exhaustive secondary research was conducted on the internet including various sources like industry Wiley online library, online articles, previous researches conducted on food delivery schemes wherein the focus was on determining the most important attributes of customers whilst evaluating delivery services. A list of various types of promotion and signalling schemes that get launched by food delivery services and what are the usual tactics of new outlets to increase the awareness about their services amongst consumers was also prepared. The feasibility of all these schemes and tactics in the context of Dons Deli Den was ascertained during the discussion with its proprietor.Expert and customer interviewsFollowing are the learnings and inferences drawn from interview with the decision maker, an expert and prospective customers of Dons Deli DenInterview with Proprietor of Dons Deli Den:Dons Deli Den is a fast-food outlet located in Himalaya Arcade in the busy Vastrapur area. Operational since October 2014, this is the maiden venture into the restaurant business by its proprietor Mr. Donald Vincent. He is the decision-maker for the Outlet and Group B2 has taken up the role of consultants for him. Following is the summary of Mr. Vincents interview (with some inputs from customers from the campus).Don Deli Den offers a restricted fast food menu consisting of Pizzas, Sandwiches, Burgers, Salads, Cakes and soft drinks/milkshakes. However, the outlet has quickly found a group of loyal customers due to the high quality of food made available at relatively affordable prices. On weekdays, Dons Deli Den averages 10-12 bills and on weekends and holidays, this number increases to around 25. An average bill size is in the tune of Rs 250 and the profit margin for Mr. Vincent is around 35%. Mr. Vincent targets young college-going customers as well as families who enjoy Italian and other fast food. A high proportion of young customers were observed at the outlet.One of the major selling points of the outlet is that they serve freshly served food that is prepared right in front of the customers all the time and offer a high degree of customization during the preparation process. Since, products of each category (Pizza, Sandwich, Burger, Salad, Cake, Drinks) have one of two prices (based on veg/non-veg), it is easy for the outlet to customize products without worrying about pricing. Quality of pizzas in the outlet was rated by randomly chosen customers as on similar level to those served by branded pizza outlets (while prices are 50% lower). Pizzas are clearly the highest sold item category in the restaurant and sandwiches occupy the second position. Service time has been pointed out as a weak point for the restaurant with most orders taking more than 30 minutes.The restaurant has been offering home delivery services within a three kilometre radius for orders of Rs 300 or more. The average service time of the outlet is 45 minutes and the delivery order frequency has been below par at only 3-4 orders per day. The orders come from PGs occupied by students as well as households. Dons Deli Den hasnt penetrated the campus markets yet. The outlet has distributed pamphlets in surrounding areas and has registered itself on Zomato and Facebook. However, almost all the delivery customers are repeat customers who started ordering from home only after visiting the outlet. The outlet seems to be facing a clear difficulty in conveying its key competencies through the communication channels used so far to at-home customers.The outlet remains open from 11 AM to 11 PM. The peak service periods are 12:30 PM to 3 PM and 6:30 PM to 10 PM. Even the order frequencies follow a similar pattern with more orders at 12-3 PM and 7-9 PM slots. The high average delivery order bill of around Rs 350 suggests that most orders are for lunch or dinner. In the fast food market, Mr. Vincent believes that Dominos and Pizza Hut are his primary competitors and many of his customers have appreciated the prices at which Dons Deli Den offers its services keeping the prices of above outlets as the reference points. There is also a similar local competitor in the vicinity that offers higher variety in non-veg items. Mr. Vincent remains personally present in the outlet for a large duration every day, provides friendly service to the customers and is instrumental in building positive relationship with them. Given the positive response of the customers visiting the outlet since its inception, Mr. Vincent, now, wants to increase his restaurants delivery service output in college campuses and seeks advice on how he can successfully enter the market in IIM Ahmedabad. Interview with Caf TANSTAAFL:Caf TANSTAAFL or CT is an open air caf inside IIM campus established in 2004. It operates 18 hours a day from 10 a.m. till 4 a.m. Its menu includes both traditional Indian and Chinese food. Following are some of its offering:Indian: Paranthas, Sandwiches, Maggi, Egg, Coffee/TeaChinese: Fried rice, Manchurian, MomosAll of these items are not offered for room delivery. The menu for room delivery mainly includes those items which have higher demand and can be made quickly and delivered to the room hot.Its largest selling item is its Paranthas along with various kinds of sabzi. It offers both vegetarian and non-vegetarian food items. It also offers various soft drinks, and milkshakes. Its major competitors are Bizarrre, Radhika, Tiffin service providers and the student mess. Despite stiff competition, CT is a preferred choice for many primarily because of its central location and nice ambience for get together. CT earns its revenues from dine in as well as room delivery services. Each of them contributes equally to the revenues. The peak hours for CT are during lunch and dinner time i.e. between 1:30 pm 3:00 p.m. and between 7:30 p.m. to 10:30 p.m.The key differentiating factor for CT is its ambience for sitting. Many students visit CT with their groups to have snacks and conduct their group assignments and meetings. The process of the order at CT is as follows. The customer places an order over the phone. The operator records the order and conveys the same to the kitchen staff. The food is then prepared and is packed. However, for room delivery orders there is some waiting time between placing the order and the time when the order reaches the kitchen. The operator tries to ensure that there is accumulation of multiple orders in the vicinity of the delivery location so that multiple orders could be served in one go. Due to this, there have been complaints from the customers regarding long delivery times. Its average time taken to delivery is anywhere between 25-50 minutes. There is no system to track the order. Many times it has happened that CT had delivered incorrect orders and had to do the reverse logistics for it. Such cases cost CT a lot of losses. According to CT, timely delivery of food is the most important factor for the time constrained students.CTs cold storage is also well maintained. CT also offers ice cream which its nearest competitor Bizarre does not offer. In comparison to its competitors, CT employs maximum number of employees. CT offers home delivery to all the IIMA community. It has a minimum delivery of Rs 50 (excluding soft drinks and chips).Interview of IIMA Students:Short interviews were conducted with 6 students wherein they were asked to express their views on their food ordering behaviour. Following were the results of the interviewsThrough the responses it was found that the most important factor which students consider for ordering food is the time taken to delivery. This might be due to the fact that IIMA students are always short of time. Other factors included taste, price, food quality and minimum order amountThree of the six students were enrolled in mess and one ordered regular tiffin service. There are 3 major options for ordering food at IIMA Radhika, Bizarre and CT. From our interviews, CT emerged as clearly the preferred choice amongst the three. CTs greater variety of products was the major reason behind the choice. The delivery time of the three outlets were rated similar. The two students who were not enrolled in the mess or tiffin service used Radhika more for lunch.Amongst the outside food providers, McDonalds and Dominos were the most frequently used ones. Students ordered a lot more from branded outlets as compared to local ones when they ordered from outside. Those registered in mess averaged two orders a week while those who were unregistered ordered 6 to 7 times a week (they visited the outlets on other occasions).It was found that awareness of Dons Deli Den was fairly low. Two of the six respondents had visited the restaurant and were aware of its presence. Both of them had given positive reviews of the food quality, taste and prices of the outlet and spoke negatively about the service time. None of the respondents were aware of Dons Deli Dens delivery service.Conclusive Research:A single cross sectional study was conducted with the target population as IIMA community. Off-line surveys were administered through interviews with each of the respondents. A questionnaire was prepared for this purpose that aimed to answer the following research questions.Research Questions1) How often do the people from IIMA community order fast food to their rooms?2) How much do IIMA communities spend on ordering food?3) What proportion of people in IIMA community order fast food items?4) What are the preferences for various attributes considered important for ordering food?5) How is Dons Deli Dens performance on each of these attributes?6) What are the awareness and satisfaction levels of Dons Deli Den in IIMA campus?7) Who are the Dons Deli Dens competitors and how much are their sales and penetration?8) How are the competitors rated on important attributes by the target market?9) What is the loyalty of the consumers towards the existing competitors?10) What communication channel and product offering would yield good results in IIMA for Dons Deli Den?

Market Research Matrix Decision ProblemResearch ProblemInformation NeedsResearch QuestionsSources of information

Should Dons Deli Den target their delivery service towards the IIMA community?What is the demand for fast food delivery service from the IIMA community?To determine the potential demand of ordering fast food by the IIMA communityHow often do the people from IIMA community order fast food to their rooms?

Expert Interviews, Primary research (consumer survey)

What are the spending habits on ordering food to their rooms/homes in the IIMA community?To determine the total amount of money spent by IIMA community on fast foods delivered to their room/homesHow much do IIMA communities spend on ordering food?

What proportion of people in IIMA community order fast food items?

If Yes, then what factors should DONS DELI DEN consider while redesigning their delivery scheme?What attributes are considered important by the IIMA community while ordering food to their rooms?To determine the KPIs that ensure consumer acceptance for a room delivery service

What are the preferences for various attributes considered important for ordering food?Secondary Research , Expert Interviews, Primary research (consumer survey), Journals from Wiley

What is the current sales performance of Dons Deli Den in IIMA?To determine the performance of Dons Deli Dens on the above listed KPIsHow is Dons Deli Dens performance on each of these attributes?

To determine the awareness and perception of Dons Deli Den in IIMA campusWhat are the awareness and satisfaction levels of Dons Deli Den in IIMA campus?

Given the competition in food delivery market for IIMA and Dons Deli Dens core competencies, what should be their optimum positioning?To determine the competitors of Dons Deli Den, their market penetration and customers loyalty towards themWho are the Dons Deli Dens competitors and how much are their sales and penetration?

How are the competitors rated on important attributes by the target market?

What is the loyalty of the consumers towards the existing competitors?

To determine the ideal communication plan and product offering of Dons Deli Den for IIMA campus What communication channel and product offering would yield good results in IIMA for Dons Deli Den?

Sampling Process:The IIM A community broadly consists of PGP students, PGPX, Academic and Research Associates, Faculty and Staff. PGPX, faculty, staff and their families represent a substantial segment of the population on campus. But since their characteristics for ordering food would be different from that of students and in order to keep the limit the segments to survey from, they have been excluded from the scope of this research.For the purpose of this research, a sample consisting of PGP students and Academic and Research Associates has been selected. A total of 60 responses were obtained out of which 48 are students who stay on campus and 12 are academic associates who spend a majority of their day on campus but do not stay here. The surveys were personally administered by all the members of the group, hence, a convenience sampling was deemed to be the most appropriate way to go about. This might, however, be a source of bias in the data collected. The research design was cross sectional and the data was collected only once from the respondents.Information Needs:In order to be able to answer the research problems defined above, various information was needed which was obtained through the secondary research, primary interviews with various students and food outlets and through the survey. In order to be able to estimate the demand for potential fast food delivery, information on the number of people who order food and the frequency with which they order food is needed.In order to determine the estimated revenue sales for the outlet, information about the amount of money people currently spend on ordering food is required.In order to determine the factors that Don's Deli Den should consider while designing its delivery scheme, information is needed about the current preference of customers: what are the attributes considered important by them while ordering food, how Don's Deli Den performs on each of these KPIs, the performance of its competitors on each of these KPIs.

Data Collection MethodsBoth the primary and secondary resources have been explored for collecting the information and the data required to analyse and provide answers/ insights for the research questions

MAIN QUESTIONNAIRE

Q.1 Which of the following IIMA community do you belong to?

PGP-11

PGP-22

AA/RA3

Faculty4

PGPX5

IF CODED 1 OR 2 THEN GO TO Q 4

Q.2 How many people live in your family (including you)?

One1

Two2

Three or Four3

More than four4

Q.3What is the age of each member in your house?

Member 1 Age

Member 2 Age

Member 3 Age

Member 4 Age

Member 5 Age

SKIP Q 4

Q.4 Are you enrolled in students mess?

Yes 1

No 2

Q.5 When you think about "ordering food at your room", which all food items do you consider (you can choose multiple responses)?

Pizzas1

Burgers/Sandwiches/Fries2

North Indian cuisine3

South Indian cuisine4

Mughlai cuisine5

Others6

IF CODED 1 OR 2 IN Q5, THEN SKIP Q6Q.6 Have you ordered pizza/burger/sandwiches/fries in last three months?

Yes 1

No 2

IF ANSWER IS NO IN Q6 THEN THANK RESPONDENT FOR RESPONSE AND TERMINATE INTERVIEW

Q.7 Rank the following factors which you consider important while ordering food at your room?

AttributesRank

Accuracy of order delivery

Delivery person behaviour

Ease of ordering

Hygiene

Minimum order amount

Order Packaging

Price

Taste and quality

Time Taken to deliver

Variety of food

Q.8 Have you heard about Dons Deli Den?

Yes1

No2

Maybe3

IF CODED 2 OR 3 ABOVE THEN SKIP TO Q16

Q.9 How did you get to know about Dons Deli Den?

Recommended by a friend/colleague1

Pamphlets2

Read from an advertisement in a magazine/newspaper3

Online Advertising (like Zomato, Coupon Dunia etc.)4

Others (Please Specify)5

Q.10Have you ordered from Dons Deli Den?

Yes1

No2

Not ordered but dined 3

IF CODED 2 IN Q10 THEN SKIP TO Q16 AND IF CODED 3 IN Q10 THEN SKIP TO Q14

Q.11How was your experience from your order?

AttributesExtremely DissatisfiedDissatisfiedSlightly DissatisfiedNeutralSlightly satisfiedSatisfiedExtremely satisfied

Accuracy of order delivery -3-2-10123

Delivery person behaviour -3-2-10123

Ease of ordering -3-2-10123

Hygiene-3-2-10123

Minimum order amount-3-2-10123

Order Packaging-3-2-10123

Price-3-2-10123

Taste and quality-3-2-10123

Time Taken to deliver-3-2-10123

Variety of food -3-2-10123

Q.12 How likely is that you would order again/recommend Dons Deli Den to others?Not at allSomewhatNot LikelyNeutral Somewhat LikelyVery Likely

12345

Q.13If your preferred restaurant(s) were to increase its prices, then would you like to order from Dons Deli Den?

Not at allSomewhatNot LikelyNeutral Somewhat LikelyVery Likely

12345

SKIP TO Q16

Q.14 How was your dining experience with Dons Deli Den?

AttributesExtremely DissatisfiedDissatisfiedSlightly DissatisfiedNeutralSlightly satisfiedSatisfiedExtremely satisfied

Ambience -3-2-10123

Behaviour of servers -3-2-10123

Hygiene -3-2-10123

Price-3-2-10123

Service time-3-2-10123

Taste and quality-3-2-10123

Variety of food-3-2-10123

Q.15 Dons Deli Den also offers home delivery. How likely is it that you would order from/recommend Dons Deli Den to others?Not at allSomewhatNot LikelyNeutral Somewhat LikelyVery Likely

12345

Q.16At what time do you prefer to order your food? (Rank your response from 1 to 4)

Morning (Breakfast)1

Afternoon (Lunch)2

Evening (Snacks)3

Night (Dinner)4

Q.17How many times do you or your family order food at your room?

Never1

Once a week2

Twice a week3

Thrice a week4

More than thrice a week5

Q.18What is average price of a food delivery order that you make?

0-1001

100-2002

200-3003

300-5004

Above 5005

Q.19If you cannot connect to the preferred restaurant (due to busy phone line/nobody picking up the phone), then what will you do?

Try again after sometime1

Call some other restaurant2

Opt for Mess/Self cooked food3

Others4

Q20Which outlets have you ordered pizza/burger/sandwich/fries from in the last three months (you can choose multiple responses)?Bizzare 1

CT 2

Dilli 63

Dominos4

Dons Deli Den5

Jassi De Parathe 6

Muncheestan7

Pizza Hut 8

Radhika9

Others10

Q21How did you get to know about outlets you have ordered pizza/burger/sandwich/fries from in the last three months (you can choose multiple responses)?SourcesBizzare Jassi De Parathe Dilli 6 DominosJassi De parantheMuncheestanPizza hutRadhika

Recommended by a friend/colleague

Pamphlets

Read from an advertisement in a magazine/newspaper

Online Advertising (like Zomato,CouponDunia etc)

Was already aware

Q.22For all the outlets chosen in Q20, rate the following factors in their order of importance when you order food from those outlets. (On a scale of -3 to +3)

AttributesDominosPizza HutDons Deli DenMuncheestanCTRadhikaBizzareDilli6Jassi De Parathe

Accuracy of order delivery

Delivery person behaviour

Ease of ordering

Hygiene

Minimum order amount

Order Packaging

Price

Taste and quality

Time Taken to deliver

Variety of food

Q.23 Rank all the outlets chosen in Q20 on the basis of their overall food delivery offering OutletExtremely DissatisfiedDissatisfiedSlightly DissatisfiedNeutralSlightly satisfiedSatisfiedExtremely satisfied

Bizzare -3-2-10123

Dilli 6 -3-2-10123

Dominos-3-2-10123

Dons Deli Den-3-2-10123

Jassi De paranthe-3-2-10123

Jassi De Parathe -3-2-10123

Muncheestan-3-2-10123

Pizza hut-3-2-10123

Radhikas-3-2-10123

Q.24What is your age?

Below 20 years1

20-25 years2

25-30 years3

More than 30 years4

Questionnaire Pre-Testing:Pre-testing if questionnaire was carried out as a pilot survey so that its shortcomings can be found and necessary changes could be made to it. Following are some of the other objectives behind it:

Changes Made After Pre-testing: The research matrix questions were modified to cater to fast food items only since even the questionnaire focuses only on fast food items Earlier, the loyalty status of customers was being measured with respect to Dons Deli Den only. Now, an extra question has been added to assess the loyalty status of consumers to some other parameters as well (Q19) Q3 has been changed to people below 25 years of age instead of 18 as this age group prefers eating fast food more. The list of options that were written was changed to conform to alphabetical order to facilitate finding of the options while selecting. The respondents were facing difficulty in understanding Q22. So, the wording of the question was changed. Earlier, questions which could have multiple responses were not specified. Now, the statement, You can choose multiple responses has been added to each of those questions. Q22 and Q23 have been modified to ask for responses only for the outlets selected in Q20.

Code BookThere were a total of 24 questions in the questionnaire and on the basis if that a code book was generated. The code book contains the fields such as the question number, labels, scaling type and the range of input values.Variable No.Question No.DescriptionRange of code-valuesScale type

11Which of the following IIMA community do you belong to?1-5Nominal

22How many people are there in your family (including you)?1-4Nominal

3-73What is the age of each member in your house? (Single response)1-2Nominal

84Are you enrolled in students mess?1-2Nominal

9-145When you think about "ordering food at your room", which all food items do you consider (You can choose multiple responses)?1-6Ordinal

156Have you ordered pizza/burger/sandwiches/fries in last three months?1-2Nominal

167

Rank the following factors which you consider important while ordering food at your room?1-10Ordinal

178Have you heard about Dons Deli Den?1-3Nominal

189How did you get to know about Dons Deli Den?1-5Nominal

1910Have you ordered from Dons Deli Den?1-3Nominal

20-2911How was your experience from your order?-3 - +3Ordinal

3012How likely is that you would order again/recommend Dons Deli Den to others?-3 - +3Ordinal

3113If your preferred restaurant(s) were to increase its prices, then would you like to order from Dons Deli Den?-2 - +2Ordinal

32-3814How was your dining experience with Dons Deli Den?-2 - +2Ordinal

3915Dons Deli Den also offers home delivery. How likely is it that you would order from/recommend Dons Deli Den to others?-3 - + 3Ordinal

4016At what time do you prefer to order your food (you can choose multiple responses)?1-4Nominal

4117How many times do you or your family order food at your room?1-5Nominal

4218What is average price of a food delivery order that you make?1-5Interval

4319If you cannot connect to the preferred restaurant (due to busy phone line/nobody picking up the phone), then what will you do?1-4Nominal

44-5320Which outlets have you ordered pizza/burger/sandwich/fries from in the last three months (you can choose multiple responses)?1-10Nominal

54-9821How did you get to know about the above(s) outlet?1-9Nominal

99-18822For all the outlets chosen in Q20, rate the following factors in their order of importance when you order food from those outlets1-9Nominal

189-19823Based on overall food delivery offering, how was your experience about the outlets chosen in Q20?-3 - +3Ordinal

19924What is your age?1-4Interval

Data AnalysisVarious statistical techniques such as measures of central tendency, multiple linear regression and frequency distribution charts were used to analyse the data collected for each of the questions above. The quantitative information received from the survey was used in tandem with qualitative information from the exploratory research to provide coherent answers to each of the research questions posed earlier. Research Question: How often do people from IIMA community order fast food to their rooms?Frequency of ordering of fast food items to the rooms has been captured in Q17. While deciding of average order frequency of students who fall in More than thrice a week category, a weight of 6 was qualitatively fixed based on discussions with respondents while administering the survey. On an average, a PGP student orders food 3.5 times a week. The PGP students not registered in mess order food slightly more than 4.1 times on an average whereas those registered in the mess order 2.8 times. The amount of orders from the AA community makes whilst in campus is lower at 2.33 orders per person per week.

The results are fairly intuitive as AA/RAs typically stay in the campus for 8-12 hours as opposed to PGP students who reside here. However, as AA/RAs are not registered in Mess, their order per hour frequency is higher than PGP students.Research Question: How much do people from IIMA community spend on ordering fast food?The average spend on an order is captured in Q18. This question does expose us to biases like recency effect as most respondents may not be very sure of their average order amounts over a substantial period of time. Secondly, there might be an error due to the option slab sizes as some respondents were very close to a lower or upper bound of the slab and the weight assigned to the responses in a slab while calculating the weighted average was the mid-point of the slab.The average spend per order of a PGP student was found to be Rs 239. This amount, however, was substantially lower for the AAs at Rs 100. One explanation for this difference could be the comparative lack of penetration of out-of-campus outlets like Dominos, Pizza Hut and Muncheestan in the AA population. These outlets tend to be more expensive than the in-campus outlets like CT, Bizarre and Radhika from where AAs usually order.

Research Question: How many people in the IIMA community order fast food?Responses from Q5 and Q6 (result also reflected in Q5) are used to answer this question. The proportion of people in IIMA community who order food items in various categories have been marked based on the responses.

Off the 60 respondents, 56 (93%) have ordered pizza/burger/sandwich/fries in last three months (Q6). Based on a population of 800 PGP students and 100 AA/RAs, we can estimate a market size of Rs 33 million for food ordering in the IIMA campus [Exhibit 3].

Research Question: What are the preferences for various attributes considered important for ordering food?Responses to Q7 directly address this question by getting the ranks allotted by respondents to the relative importance of various attributes of a food delivery system. However, weve also used responses from Q22 and Q23 to derive relative values of the attributes again.

The median of ranks allotted by respondents have been measured for each category. Given the ordinal nature of scale used, median is a more accurate measure of relative standings of the attributes as the intervals between different ranks may not be equal. Based on the median measure, it is clear that Taste and Quality is the most important attribute according to respondents in all categories. Time taken to deliver From the respondent rankings, it is clear that Taste and Quality features as the second most important quality in all categories. While PGP students rate price, hygiene, variety of food and ease of ordering as next most important features in order, hygiene and variety of food rank above ease of ordering and price (next in line) for the AA respondents. The other attributes have received uniformly low scores (clear from low mean and median) from the respondents.In order to get an estimate of the interval differences between the values of attributes and also expose any latent ratings of the respondents, multiple linear regression technique was used with the overall ratings of outlets (Q23) as the dependent variable and attribute-wise rating of the same outlets (Q22) as independent variables. The regression (detailed results in Exhibit 5) had an R-square value of 0.52 which is a satisfactory figure given the scope of this market research. Two attributes Time taken to deliver and Taste and quality stood out with very high coefficients as compared to other variables. Despite the inaccuracies of the regression-based analysis owing to the different nature of the outlets, it goes on to confirm the importance of the top two ranked attributes by the customers.Research Question: What is Dons Deli Dens performance on each of the attributes?Responses to Q11 were supposed to be used for rating Dons Deli Dens performance on each of the attributes. However, given that only 2 of the 60 respondents had ordered food from Dons Deli Den, the results from Q14 were used based on respondents experience with dining at Dons Deli Den.

Median values of the ratings provided by the respondents were evaluated. On the most important attribute of Taste an Quality, Dons Deli Den received its highest mean rating of 2.4 and the highest possible median rating of 3 (Extremely Satisfied). While the median ratings were 2 or 3 (Satisfied and Extremely Satisfied) and the mean ratings were also above 1 for each of the attributes, service time received negative ratings from respondents, the median value of the response on service time attribute was -2 (Dissatisfied). Negative customer perception on service time in a dining service can translate to negative perception of Time taken to deliver which is ranked as the second most important attribute according to respondents! Research Question: What are the awareness and satisfaction levels of Dons Deli Den in IIMA campus?Q8 was used to evaluate the awareness of Dons Deli Den in IIMA campus. Responses to Q10 provided information on trial of the outlet. Apart from two respondents, all other respondents who had tried Dons Deli Den had dined out at the outlet. The respondents who answered that they were Likely or Very likely to order from Dons Deli Den or recommend it to others (Q15) are marked as people whod like to make repeat purchases or have done so already.

Awareness of Dons Deli Den is quite low in IIMA campus at 21% only. This was as per expectations as Dons Deli Den is a recently established outlet. The trial ration amongst respondents who were aware of the existence of the outlet lies at 53.85%. However, the repeat ratio of the restaurant is a healthy 71%. This goes with the positive reviews the restaurant had received from its customers during qualitative research.In order to garner a sizable share in the IIMA market, the outlet needs to increase its awareness significantly.

Research Question: Who are the Dons Deli Dens competitors and how is their performance?Dons Deli Dens major competitors for food delivery service in IIMA campus were identified as Bizzare, CT, Dilli 6, Dominos, Jassi De Parathe, Muncheestan, Pizza Hut and Radhika during the exploratory phase. Bizarre, CT and Radhika are the in-campus outlets whereas Dominos and Pizza Hut are nationally recognized chains. Dilli 6, Jassi De Parathe and Muncheestan are local outlets outside campus who have penetrated the in-campus market with varying degrees of success. Q20 and Q23 are used to judge penetration and performance of each of the competing outlets.

Market penetration of outlets was evaluated by measuring the proportion of respondents who have ordered from them in the last three months (Q20). In-campus outlets have a significantly higher penetration than those outside campus. Dominos, however, breaks the trend by having market penetration bettered only by CT amongst PGP students. Market penetration on out-of-campus outlets is extremely low in the AA community. However, in the much more voluminous PGP community, Jassi De Parathe enjoys significant penetration of 39.5%. Muncheestan, who have a differentiated offering (amongst out-of-campus outlets) of providing food delivery services up to 4AM, have a penetration of 23% in the PGP market.

In terms of overall customer satisfaction ratings, Dominos secured the highest ratings amongst outlets with significant responses (Dilli 6 and Dons Deli Den who scored higher had only two respondents each). This may be a contributing factor in ensuring high market penetration of Dominos. Bizarre and CT received the lowest satisfaction scores. However, the continued high penetration of these outlets highlight the huge geographical advantage in-campus outlets enjoy over others. Research Questions: How are the competitors rated on important attributes by the target market?Responses to Q22 were used to evaluate the consumer perception on attributes of various competitors. Taste and quality and Time taken to deliver were found to be the two most important attributes that influence customer decisions. Hygiene, price, variety of food and ease of ordering are the other attributes which were considered important.Based on results consolidated in Exhibit 6, it was found that premium outlets like Dominos and Pizza Hut scored high on both Taste and quality and Time taken to deliver. The delivery-time guarantees that both these outlets offer go a long way towards consolidating their positive perception on the Time taken to deliver attribute. On the price front, in-campus outlets like CT and Bizarre performed the best even though their performance on the two most important attributes is amongst the worst. Radhika, despite, scoring high on all important attributes including customer satisfaction scored relatively low in market penetration. This implied that their offering of South Indian food wasnt a comfortable substitute for North Indian food and fast food offered by other outlets in campus and hence, they were serving a limited customer segment. The low attribute and satisfaction scores of CT and Bizarre imply that there is a gap in the IIMA campus fast-food delivery market which can be possibly exploited by a player outside with appropriate services and price-positioning. Research Questions: What is the loyalty of the consumers towards the existing competitors?Q19 was designed to evaluate the loyalty of consumers within the IIMA campus towards their preferred outlets.

It was found that loyalty of 81% of PGP students registered in mess was high towards their preferred outlet. The proportion of loyal respondents decreased in the PGP students not registered in mess segment where 56% said that theyd call their preferred outlet again if they cant connect to them. Amongst AAs, the proportion of loyal customers was even lower at 33%. Interestingly, it was found that customer segments that had higher frequency of orders had lower consumer loyalty. That implied that customers who ordered food more were quick to switch between outlets.As around 550 of the population size of 800 evaluated lie in customer segments where loyalty towards an outlet is less than or equal to 56%, there is an opportunity for an external player to enter the market.

Research Questions: What communication channels and product offerings would yield good results in IIMA for Dons Deli Den?Responses from Q9 and Q21 were used to evaluate the channels that improved the awareness of Dons Deli Den and other competing outlets in IIMA.

More than 77% of the respondents who have heard of Dons Deli Den through word of mouth communications from friends while 8% of them got to know about the outlet through pamphlets (distributed outside campus). The other 15% got to know about the outlet having observed their restaurant while travelling. Till now, Dons Deli Den hasnt made any concerted effort to raise awareness in IIMA market. Muncheestan, an outlet outside the IIMA campus has gained considerable penetration and sales traction inside the campus using pamphlets and e-mails with menu and other details on internal student e-mail networks.Answers to Q5 highlighted the proportion of IIMA residents purchasing each food category.

As it is clear that Dons Deli Dens current offerings, i.e, pizzas and burgers/sandwiches/fries are the two food categories with highest penetration in the IIMA delivery market already there is no need for the outlet to change their product offerings. Q16 was used to rank the time-slots in which most respondents preferred to make orders.

By evaluating the median rank for each of the timeslots, it is found that the highest demand for food delivery is at afternoon (lunch) and night (dinner) timeslot. Dons Deli Den is already functional during these periods, but, the employee presence during these times can be beefed up to provide higher responsiveness during the afternoon and night time-slots.

Decisions and RecommendationsShould Dons Deli Den modify their delivery service to target the IIMA community?From the first three research questions pertaining to the order frequency, average spend and proportion of customers ordering fast food, it was found that there is a food ordering market worth Rs 33.5 million in the IIMA campus. This number was reached at only taking the PGP students and AA/RAs into account and there is a significant population of office staff, faculty, FPM and PGPX students, families of faculties and students and visitors and students of various other courses who would only add on to the market demand. Given Dons Deli Dens current sales of amount Rs 1.3 million and miniscule amount of delivery sales, even a 5% market share would more than double its top-line [Exhibit 3,4]Hence, it is completely advisable for the firm to target this market which is only 2-3 KMs away with its delivery service to substantially improve its top-line and bottom-line.What factors should Dons Deli Den consider while designing their delivery scheme for IIMA?It was found that Taste and quality and Time taken to delivery are the two most influential attributes in consumers decision-making process. Other important attributes to keep in mind are price, hygiene, variety of food and ease of ordering. Dons Deli Den is rated very highly on Taste and quality right now by the 11% of the population who have dined there. The consumer perception of other important criteria is also highly favourable. However, Dons Deli Den has been severely panned by the consumers on Time taken to delivery attribute. To become a significant player in IIMA market, Dons Deli Den will have to invest on labour and equipment in order to improve its delivery time from 45 minutes (currently) to within 30 minutes. The average spend per order of a PGP student was found to be Rs 238. This amount, however, was substantially lower for the AAs at Rs 100. Since the most expensive item on Don Delis Den menu is around Rs250, it shows that their pricing is well within budget of PGP students. From the data analysis, it is clear that the awareness of Dons Deli Den on campus is very low at 21% and the trial rate is only 54%. However, there is a high repeat rate of 71% for Dons Deli Den as a dining restaurant. As the ambience scores of Dons Deli Den are only slightly satisfactory, this repeat rate can be significantly higher if the customers are similarly satisfied from the delivery service as they wont have to physically travel to the diner. Hence, it is imperative that Dons Deli Den increase the awareness and trial rate of their outlet. The communication model followed by Muncheestan could be a good market for Dons Deli Den in this regard. They can start with pamphlet distribution with newspapers and also target students on internal e-mail networks with an appropriately designed e-mail. Introductory discount offers would be a good means to induce trial for the delivery service within the campus.While the in-campus restaurants and national brands like Dominos and Pizza Hut have significant penetration in the market, local outlets outside like Muncheestan and Jassi De Parathe have also been able to make inroads in the market. As Muncheestan is a late night restaurant and Jassi De Parathe is famous for its ethnic cuisines, there is a space for a medium-priced pizza, burger and sandwich restaurant like Dons Deli Den in the market given the poor satisfaction ratings of in-campus delivery outlets like CT and Bizarre. The consumer loyalty, especially amongst the consumer segments who order food the most frequently is low and there wont be a dearth of taker for a good new offering. The average spend per order of a PGP student was found to be Rs 238. This amount, however, was substantially lower for the AAs at Rs 100. Since the most expensive item on Don Delis Den menu is around Rs250 and the average order for two costs Rs 250-300, their pricing is well within budget of PGP students. The current product offering of pizzas, burgers, sandwiches and fries are amongst the highest demand categories and the limited and easy of remember offerings at standard prices improve the ease of ordering. The highest frequency of orders is expected to be during lunch-time (1 PM 3PM) and night (8 PM 11 PM). Dons Deli Den need to plan their staff timings accordingly to ensure high level of responsiveness during the aforementioned time slots. It is also recommended that the order-receiving time of the outlet to be extended to 2 AM in the night in order to exploit the paucity of options vis--vis during this time-slot in campus.

ExhibitsExhibit 1: Number of Responses

Exhibit 2: Percentage of PGP enrolled in mess

Exhibit 3: Market Share CalculationMarket Size Calculation In Rs

Population of IIM A (800 PGP +100 AAs)800100

Percentage of people order Pizzas/Burger/Sandwiches93%93%

Average number of orders per week 3.52.33

Average price of food order per respondent in Rs239100

Market Size per year in Rs323625121126788

5% market share in Rs161812656339

Total in Rs1674465

Exhibit 4: Dons Deli Den MarketDon's Deli Den Market in Rs

Average Bill amount Rs250

Average Bills on weekdays10

Average Bills on weekends25

Current yearly sale1300000

Exhibit 5: Regression Output

Exhibit 6: Attribute-wise rating of outletsAttributesBizarreCTDilli 6DominosDDDJassiMuncheestanPizza HutRadhika

Accuracy of order delivery1.681.023.002.632.502.092.441.681.69

Delivery Person Behaviour1.050.813.002.081.501.681.671.051.44

Ease of ordering1.661.732.502.192.501.681.331.582.19

Hygiene0.630.563.002.332.002.182.001.681.66

Minimum order amount1.461.622.500.812.000.910.890.531.84

Order Packaging0.590.773.002.023.001.821.671.210.63

Price1.491.602.000.583.001.000.890.110.72

Taste and quality1.200.833.002.272.502.361.221.741.75

Time taken to deliver0.39-0.871.002.27-0.501.590.671.631.13

Variety of food0.610.632.501.652.331.821.781.741.22

Overall0.680.042.502.152.502.001.361.581.56

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