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TITLE:

Comparative analysis of fast food chains in Mumbai

INTRODUCT ION:

Fast food is generally food or a meal which is prepared, or which can be quickly

cooked when you order it. You can buy fast food almost anywhere. Although fast

food trend is quite new in Mumbai yet it is growing very fast, this indicate that

such type of fast food restaurant have a very bright future in Mumbai because

people have busy schedule and need fast services. The two major fast food

restaurants that have their outlets in the whole world, are giving tough

competition to each other in Mumbai. Our research is based on the hypothesis

that whether people in Mumbai prefer McDonald or KFC and we found that due

to reasonable price and taste of food people prefer McDonald. When KFC was

introduced in Mumbai the price was not affordable by people but now they have

lower their prices. It was also found that due to impressive packages people

prefer KFC over McDonalds. While conducting our research we also came to

know that McDonald is more advertised this is one of the reasons that people

prefer McDonald over KFC. We are going to discuss all of this in our research.

RESEARCH OBJECTIVE:

The trend of fast food is growing day by day in Mumbai. This research is designed

to generate knowledge about fast food restaurants in Mumbai and hence this

research is based upon two leading fast food brands in Mumbai. The mainobjective is to know which brand is popular in majority. Which among the two

brands is of higher quality. Which brand is more economical. Hence in general we

conducted this research because we wanted to know that which brand is

preferred and what is the reason behind it.

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RESEARCH PROBLEM:

To understand the preference of people

SAMPLING:

In sampling plan we draw sample, sample is basically a segment of the population

selected for research to represent the population as a whole. In our research we

targeted people from different age groups like 10-20,20-30,30-40,40-50 and 50&

above. So we approached people who visit KFC and McDonalds .Our sample size

is 47 from the whole population .Our research instrument for collecting primary

data is Questionnaire in which we ask fifteen questions, includes a mixture of

both open ended and close ended questions for accessing peoples preference.

METHODOLOGY:

The empirical analysis of the International fast food chains in Mumbai was

based on the primary data collected through personal observations by visiting KFC

and McDonalds located in Chembur KStar (Near Diamond Garden).The data were

collected by filling questionnaire during rush hours in the afternoon. In all, 47

customers were accounted for during the survey time period in KFC and

McDonalds.

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LIMITATIONS:

The problem which we faced while conducting our research are firstly the people

were not very co operative in order to fill our questionnaire and we have to

convince them. Another problem was that people were hesitating to fill ourquestionnaire.

KFC Launch in India:

KFC entered India in 1995. KFC is the largest brand of Yum Restaurants, a

company that owns other leading brands like Pizza Hut, Taco Bell, A&W and Long

John Silver. But a controversy surrounding the levels of MSG in its preparationsand subsequent protests from farmers groups and animal rights activists spelt

trouble for the company. Ultimately, the company had to shut all but one outlet

in the country. Only recently in 2003 it made a quiet re-entry into the Indian

market. Then came up with the strategies and menu that is desirable by the

Indian consumers. And since 2003 it is expanding successfully its business in

India.

McDonalds Launch in India:

McDonalds fist store was launched in India, it was also the first McDonalds

restaurant in the world not serving beef on its menu and today is has more than 160

restaurants across India. No Beef was part of McDonalds marketing plan. They

were very quick to adapt to the Indian scenario and developed there marketing

strategy and menu to please the Indian audience. And they have been very

successful over the years.

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KFC Vs McDonalds:

McDonalds have been very successful in India. Though KFC and McDonaldsentered Indian market in gap of one year (KFC was first to enter in India), but

today McDonalds have around 170 outlets and KFC about 72 in 13 cities.

The controversy surrounding the KFC have not let them march forward and they

have been struggling with there expansion plans. Only recently they have

included vegetarian food in there menu which McDonalds managed to do with

there launch in India. The delay in adapting to Indian customs has cost KFC a great

deal.

But with the change in marketing strategy and there communication revolving

around the Veg menu, will KFC manage to march past McDonalds?

It we look the recent developments and communication, I feel yes they can. KFC

has the potential and that freshness in them while McDonalds looks very old and

tired.

The recent advertisements and communication from McDonalds are not funny at

all and only manage to convey the sorry state of creative and marketing team.

The services of McDonalds have degraded to greater extent. The people behindcounters look like bunch of losers made to stand forcibly, where as KFC has that

freshness and employee are more cheerful and vibrant. The McDonalds have

become very crowded over the years and they have sitting arrangement which

are very cramped and you feel suffocated inside the restaurants. And if you are

sitting for too long, then the floor keeper gives you a very disgusting look.

Whereas at KFC, they have more space and you feel more relaxed and not in

hurry to vacate the seat.

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DATA ANALYSIS:

Q1) What is your age group?

As we have taken our sample between 10-20,20-30,30-40,40-50,50&above. So the

people who have filled the form are of the above mentioned age groups.

Q2) How often do you use fast-food services?

54% visit once a month 12% visit once a year and once a week. 17% twice a week

and 5% visit other time. It looks like most of the people go out and eat fast food

once a month. In a close second place people visit fast food restaurants twice a

week. So pie graph result shows that people like to eat fast food, but just at

different interval of time.

Q3) Which is more reasonable in terms of cost?

21% of people think KFC is reasonable in terms of cost and 70% of people think

McDonalds.

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Q3) Whats your favorite fast food place?

There are tons of different fast food restaurants around the world, but wenarrowed down the choices to McDonald's and KFC. According to the peoples

choice 29% people like KFC,While only 53% McDonalds. McDonalds dominates

over KFC.

2

12

2

8

15

1

3

2

1

1

0

5

10

15

20

25

30

35

KFC McDONALDS OTHERS

50&above

40-50

30-40

20-30

10-20

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Q4) Rate the fast food you have visited the most? (3 being high and 1 being low)

2%of the people prefer to visit KFC while only 15% prefer McDonalds. KFC are the

first movers of fast food restaurant in Mumbai hence they have first mover

advantage. They were the pioneer of fast food in Mumbai. The position of KFC in

the mind of people is very strong.

Q5) Which one is your favorite meal?

We gave various choices of food offered by both restaurants. We restrict people

only to choose one food item which is one of their most favorite According to the

result 52% people like KFC chicken and 43%burger and 5% salad. While

McDonalds salads were liked by 45%, 30% burger and 25% chicken pieces.

Q6) What fast food restaurants do you think is most advertised?

The survey shows a difference between the advertisements of both restaurants.

As they are leading fast food restaurants in Mumbai so they advertised almost

equally to make their roots strong in promoting their service. According to the

5

10

1

7

13

4

2

1

2

2

1

1

0

5

10

15

20

25

30

KFC McDONALDS OTHERS

50&above

40-50

30-40

20-30

10-20

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data 19% people think KFC is more advertised and 78% found McDonalds is more

advertised.

Q7) Which fast food chain is in your opinion is more healthy?

30% people think that KFC is healthier and 52% people think McDonalds. People

have positive approach towards McDonalds because McDonalds food has less

chronic health risks because its meal involves appropriate amount of nutrients.

45

0

5

18

1

0

3

0

3

00

5

10

15

20

25

30

35

KFC McDonalds Others

50&above

40-50

30-40

20-30

10-20

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Q8) How favorable is your attitude towards the fast food brands you have

eaten?

(3 being high and 1 being low)

5% people rated KFC at 3 place, 37% people at second and 8% people at first

place. But MacDonalds result differ13% people rated KFC at 3 place, 37% people

at second and 50%people at first place.

As results undoubtedly shows the people have favorable attitude towards KFC.

Q9) How well the following brands satisfy your needs? (3 being high and 1 being

low)

50% people are fully satisfied with KFC, 40% people satisfied and 10% people are

just satisfied. But MacDonalds result differ 15% people are fully satisfied, 35%

people are satisfied and 50%people are just satisfied.

Q10) Which brand packaging has an attractive look?

In brand packaging McDonalds took prize over KFC. The survey results show that

many people like McDonalds packaging style over KFC.

5

9

1

9

12

3

0

1

2

1

2

1

1

0

5

10

15

20

25

30

kfc mcdonals others

50

40-50

30-40

20-30

10-20

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Q11) Which fast food restaurant has an eye -catching out look?

McDonalds surpass KFC and the outlook of the restaurant 51% of people like the

outlook of McDonalds and only 49% people rated KFC.

Q12) Which fast food restaurant is more accessible?

The result of this question shows an split among both options. The increasing

trend of fast food leads both restaurant branches to multiply in order to make

them easy to get to. 15% people think KFC is more accessible while 85% think that

McDonalds is more accessible.

97

11

13

1 21

21

0

0

5

10

15

20

25

30

KFC McDONALDS OTHER

50&above

40-50

30-40

20-30

10-20

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Q13) Which brand offer deals which have attractive prices?

The higher percentage of people found the prices of McDonalds more attractive

than KFC. According to the data 27% people found prices of KFC are attractive.

While that of 73% found McDonalds prices smart.

3

134

20

0

3

0

3

0

1

0

5

10

15

20

25

30

35

40

45

KFC McDONALDS OTHER

50&above

40-50

30-40

20-30

10-20

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Q14) Do you think the future of International fast food chains in Mumbai is

bright?

Based on people answers, 85%agreed with the statement that the future of

international fast-food chains in Mumbai is bright, 5% were not agreed on bright

future and 10% people have no idea about this. With today's hectic lifestyles, time-

saving products are increasingly in demand; one of the most obvious examples is

fast food. People want quick and convenient meals as a result, consumers rely on

fast food .Knowing this, fast food providers are coming up with new ways to

market their products that save time for consumers. All that make sense thoughbecause that is what "fast food" is supposed to mean... cheap, fast, and tasty.

8 11

2.4

16

2

3

3

1

0

5

10

15

20

25

30

35

40

KFC McDONALDS

50&above

40-50

30-40

20-30

10-20

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CONCLUSION:

The conclusion we have drawn after conducting our research is that the problem

statement which we consider in our research is confirmed .Our hypothesis that

McDonalds is in spotlight and KFC is a side show was right and people prefer

McDonalds over KFC because of their good quality food and their reasonable

price, hence McDonalds capture a large market than KFC in Mumbai.

32%

62%

6%

KFC

McDONALDS

OTHERS

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RECOMMENDATION AND SUGGESTION:After conducting our research we come to a point that about 62% people prefer

McDonalds over KFC here are some suggestions and recommendations to both

the brands. Based on our research we suggest that KFC should improve the cost of

their food because majority of people found KFC expensive. It was also found that

McDonalds satisfies the need of people to greater extent, so KFC should try hard

to make up to the expectations of people. It was found by our research that

although people prefer McDonald over KFC but they found the packing of KFC

more attractive than that of McDonald, so McDonald should work on their

packing and make it more attractive. When it comes to outlook of the restaurant,

majority of people like the outlook of McDonald, so KFC should improve their

outlook. It was also found that McDonald is better advertised; hence KFC should

work to promote their brand in order to capture a large volume of customer.

Mumbai is a price sensitive market for many items and competition is intense, so

KFC should maintain their price packages.