PRESENTATION ON FAST FOOD INDUSTRY Submitted By Priyanka

PRESENTATION ON FAST FOOD INDUSTRY Submitted By: Priyanka Ramteke (24) Sachin Goel (68) Richa Somvanshi (85) Rinni Pandey (92 Dual Degree) Fast Food Industry

INTRODUCTION • Fast food is the term given to food that can be prepared and served very quickly. • Fast food outlets are take-away or take-out providers, often with a "drive-through" service which allows customers to order and pick up food from their cars; but most also have a seating area in which customers can eat the food on the premises • The capital requirements involved in opening up a fast food restaurant are relatively low Fast Food Industry

HISTORY The concept of fast food pops up during 1920 s. The 1950 s first witnessed their rapid proliferation. Several factors that contributed to this explosive growth in 50’s were: (1) America’s love affair with the automobiles. (2) The construction of a major new highway system. (3) The development of sub-urban communities. Fast Food Industry

Major players in fast food are: v. MCDONALDS v. KFC v. PIZZA HUT v. DOMINOS PIZZA. v. CAFÉ COFFEE DAY v. BARISTA. Fast Food Industry

Globalization • In 2009, the global fast food market grew by 4. 8% and reached a value of 102. 4 billion and a volume of 80. 3 billion transactions. • In India alone the fast food industry is growing by 40% a year. Mc. Donald's is located in 120 countries and on 6 continents and operates over 31, 000 restaurants worldwide. • KFC is located in 25 countries. Subway has 29, 186 restaurants located in 86 countries, Pizza Hut is located in 26 countries. Fast Food Industry

REASON FOR EMERGENCE IN INDIA • • • Gender Roles Paucity of Time Double Income Group Working Women Relaxation in rules and regulations Large population Fast Food Industry

SERVICE BLUEPRINT FOR PIZZA DELIVERY Fast Food Industry

Interaction Kitchen Fast Food Industry

PEST ANALYSIS Political Technology PEST Social Fast Food Industry Economic

Service Failures & Recovery Strategies Fast Food Industry

SERVICE FAILURE Group 1 Failure categories Product defects • food was described as cold, soggy, raw, burnt, spoiled, or containing inanimate objects such as hair, glass, bandages, bag ties, and cardboard. • Slow/unavailable service • waiting excessively, not being able to find assistance Fast Food Industry

The Fast Food Industry Group 1 failure categories • Facility problems • cleanliness issues such as bad smells, dirty utensils, and animate objects (e. g. , insects) found on the table or in the food • Unclear policies • policies that were perceived as unfair by the customer, such as coupon redemption, or forms of payment • Out-of-stock conditions • inadequate supply of menu items Fast Food Industry

The Fast Food Industry Group 2 failure categories • food not cooked to order • requested food be prepared in a particular manner and restaurant failed to meet request • seating problems • seating nonsmokers in smoking section and vice versa • lost or disregarded reservations • requests for special tables that were denied • seating among unruly and disruptive customers Fast Food Industry

The Fast Food Industry Group 3 failure categories • inappropriate employee behavior • rudeness, inappropriate verbal exchanges, and poor attitudes • wrong Orders • delivery of the incorrect food item, either to the table, or in the case of fast food, in packaging so that the mistake was not discovered until the customer had left the premises Fast Food Industry

The Fast Food Industry Group 3 failure categories • lost orders • situations in which the customer’s order was lost and never fulfilled • mischarged • being charged for items that were never sent, being charged incorrect prices for items that were ordered, and providing incorrect change Fast Food Industry

The Fast Food Industry Recovery Strategies • Replacement • Free Food eg. free desserts • Merchandise, such as tee-shirt • Apology • Correction • Discount • Manager Intervention/Empathy • Coupon Fast Food Industry

Dominos India • Entered India in 1996 • Opened first outlet in Delhi • Has widespread presence through a network of 274 stores, spread across 55 cities in 20 states. • Leader in organised pizza home delivery segment with a market share of 65%

Target Market • Bachelors • Youth • Both male and female ( mainly male when they are single)

Age • Below 15 years – 0% • 5 – 20 Years – 20% • 21 -30 years – 40% • 31 - 40 years – 25% • Above 40 years – 15% Income Status • Upper Class – 60% • Middle Class – 35% • Lower Class – 5%

Geographic Segmentation • South Asia is one of the major geographic segment • Mainly divided into rural and urban • Market Segments - Area – semi urban and urban - City – Class – A and Class – B cities i. e. metro politician cities • By 2010 – 11, the company sees an addition of a total of 500 stores.

Psychographic Segmentation • • • Lifestyle – Business class, outdoor oriented Personality – ambitious, open to experience Occasions – Regular, special Benefits – Quality, service User Status – Regular user Usage Rate – Medium Loyalty Status – medium loyal Readiness stage – intending to buy Attitude toward product - enthusiatic

Strength • Leading Pizza delivery company in the US • Global franchise operations- more than 3500 in over 50 countries • Strong brand equity supported by heavy advertising & marketing • Supply chain & distribution network Weakness • Slow growing and declining same store sales • Weakening bottom line

Opportunities • Growing presence in emerging markets, particularly in India • Leverage supply chain & distribution systems. Threats • Changing consumer habits towards healthier food choices • Franchise operations affected by currency exchange fluctuation • Intensive competetion from a fragmented number of small companies.

7 P’s of Service Marketing • • Product Price Promotion Place People Physical evidence Process

Product 1. 2. • • Introduced nine new toppings for Pizzas Domino’s had to localize flavors East – Deluxe Chicken and Sardines South – Mutton Ghongura and chicken Chettinad • Mumbai – Chicken pudina • North – Chatpata chicken masala and chatpata chicken masala

Place • Dominos has a widespread presence through a network of 274 stores, spread across 55 cities in 20 states. • Conduct feasibility studies • Opened outlets in large Corporate offices, railway stations, cinema halls and university campuses. • Opened an outlet at Infosys, Bangalore.

Price • Believe that Indians are value not price sensitive • Priced 12’’ Pizza for Rs. 265 • High price attributed to high quality • With competition from Pizza Hut, Dominos introduced price cuts and discounts • In 1998 introduced Pizza mania scheme wherein it offered a large pizza for Rs. 129.

Promotion • • Tie up with Discovery Channel Banners Hoardings Specific Promotions – Hungry Kya? Sequence of advertisements on television.

People • Engaged, trained and motivated team • Robust training programme which covers every aspect of store operation. • Automated video training manual

Physical Evidence • Clean tables, chairs and floors • Visible kitchen • Staff have a dress code and use gloves and covered hair while cooking • Air conditioned outlets

“One world, One Burger”- Mc. Donald’s

Mc. Donald's Mission Statement "Mc. Donald's vision is to be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile. "

Mc. Donald’s History INDIA • Entered in India 1996 • Mc. Donald's India is a 50 – 50 JV partnership between MCDONALD’S CORPORATION (U. S. A) and two Indian businessman Amit Jatia and Vikram Bakshi • Localisation: § DON’T OFFER ANY BEEF OR PORK ITEM IN INDIA § IN PRODUCT LIKE MCVEGGIE, PIZZA MCPUFF ETC. THEY USE SPICES FAVOURED BY INDIANS § SOFT SERVES AND MCSHAKES ARE EGGLESS • Actively Involver in many social activities likegi CHILD EDUCATION, PULSE POLIOiesetc.

Mc. Donald’s SWOT Analysis • • Strengths Mc. Donald’s is the market leader in both the domestic and international markets. The company’s outlets are located in areas that are highly known for visibility, traffic volume and ease of access. Opportunities To increase profitability the company has slowed its expansion of Mc. Donald’s restaurants. Mc. Donald’s still has plans for more international expansion. • • • Weaknesses Mc. Donald’s has to deal with the prospect of Looming market saturation, which could make it difficult to add new outlets. There is also an increasing price competition. Lack of product innovation is another weakness of Mc. Donalds. Threats • • • The company’s aggressive international expansion. Foreign currency fluctuation. Mc. Donald’s keeps up with competitors.

Target segment Target Segment What is Mc. Donald’s for me? A Family with children A treat to children, a fun place to be for the children. Urban customer on the move Great taste, quick service without affecting the work schedule Teenager Hangout with friends, but keep it affordable.

I Love Children I Have Gifts For them, They Can play Games also

Product vegetarian and non-vegetarian burgers. The vegetarian burgers like Veg surprise, salad sandwich, Mc Aloo Tikki Burger, Mc veggie burger are offered to the customers. Nonvegetatarian burgers include Chicken Mc grill, Mc chicken burger, Fliet of fish and chicken maharaja burger. Along with 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. Mc Donalds also provides mean combos with medium fries and medium soft drink, happy mean with small soft drink, econo meals with small soft drink and value meals with potato wedges and small soft drink.

Price • Policy which caters to Indian customers. • Quite affordable products. • Heavily marketed “Happy Price Menu”. • Importance to Brand its integrity.

Pro mo tion

Place • • Located at prime locations. Every spread in NCR. Almost in all big cities. At residential areas , malls. Mc. Donald's opened its doors in India in October 1996. Ever since then, our family restaurants in Mumbai, Delhi, Pune, Ahmedabad, Vadodara, Ludhiana, Jaipur, Noida Faridabad, Doraha, Manesar and Gurgaon have proceeded to demonstrate.

People • • • The employees in Mc Donalds have a standard uniform and Mc Donalds specially focuses on friendly and prompt service to its customers from their employees. Mc. Donald’s understands the value of both its employees and its customers. It understands the fact that a happy employee can serve well and result in a happy customer. Mc. Donald continuously does Internal Marketing. This is important as it must precede external marketing. This includes hiring, training and motivating able employees. This way they serve customers well and the final result is a happy customer. The level of importance has changed to be in the following order (the more important people are at the top): Customers Front line employees Middle level managers Front line managers The punch line “I’m loving it” is an attempt to show that the employees are loving their work at Mc. Donalds and will love to serve the customers.

Physical Evidence Cleanness, speed, Quality and transparency of process is biggest evidence

Promotion • Awareness about products among people by using different Media like TVs, Hoarding, and Bus Shelters. • Description of product on paper nuts placed in the trays. • The placing of the pamphlets and banners in all around the outlets. • Lucky promotion strategies.

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

Two Dimensional Perceptual Mapping

BYE SEE U AT Mc. Donald’S