F&B market insights by KS Narayanan, CEO - PAN India Foodsolutions #TiEFoodCamp
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F&B market insights by KS Narayanan, CEO - PAN India Foodsolutions #TiEFoodCamp

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KS Narayanan - CEO Pan India Foodsolutions, shares insights on the food and beverage industry, the market size, the various formats - QSR, CDR, FDR, etc - potential opportunities, competition and ...

KS Narayanan - CEO Pan India Foodsolutions, shares insights on the food and beverage industry, the market size, the various formats - QSR, CDR, FDR, etc - potential opportunities, competition and market strategy at the #TiEFoodCamp. #TiEMumbai #TFN

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F&B market insights by KS Narayanan, CEO - PAN India Foodsolutions #TiEFoodCamp Presentation Transcript

  • 1. Food & Beverage Industry K S Narayanan
  • 2. ^ • Innovation into cuisine acceptable to masses • Growth of Indian food palate. • Increased preference for international cuisine by increasing students, corporates exposure to global trends through TV & Travel. • Theme based cafes and restaurants taking shape • PE firms, International companies entering India and Indian chains expanding to newer cities. • Increase in specialized cuisines and multi-cuisine • Brand expansion into smaller cities developing a national presence. INDUSTRY SYNOPSIS TRENDS TAKING SHAPE • In absolute terms, India’s food consumption is the highest composition of the Indian private consumption expenditure; being more than 60% of the retail spending in India • The per capita food consumption is still very low at ~ 200USD as compared to ~2,070USD in US and ~3,670 USD in UK • The organized sector, estimated at ~INR 80 Bn is characterized by professional managed outlets, organized supply chain with quality control and sourcing norms, multiple outlets and is growing at a much faster CAGR of >20% WHY FOOD – THE INDUSTRY Industry Trends Evolving cuisine
  • 3. ^ TOTAL CONSUMPTION OF FOOD AND BEVERAGES EATING OUT MARKET SIZE Food, Beverages and Grocery Retail (INR 9,084 Bn) Food Service Market (INR 430 Bn) Organized Food Service Market (INR 80 Bn) 3,931 5,622 7,147 11,547 17,296 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 1985 1995 2005E 2015F 2025F INRBn.,(2000prices) THE F&B INDUSTRY - MARKET SIZE • Approximately 90% of spend on the broad category “food, and beverages. The organized segment of the industry is ~20% of the total and growing at an annual rate of 20-25% The Unorganized segment comprises roadside eateries including Dhaabas CAGR (2005-2015)- 5%
  • 4. GROWTH OF BRANDS
  • 5. FORMAT IN THE EATING OUT INDUSTRY Formats Organized Format Description Examples Penetration of Organized players Formal Dining Restaurants Full service with a specific dedicated meal course, high quality décor and highly trained staff in formal attire Spaghetti Kitchen, Copper Chimney, Noodle bar, Olive, Mainland China , Punjab Grill. Low Casual Dining Restaurants Moderately priced food in a causal atmosphere with table service and sometimes a full bar . caters to the market segment between fine dining and QSRs Bombay Blue, Pind Balluchi, Sigree, Cream Centre, Rajdhani, Yoko Sizzlers Low Bars and Lounges Focus on alcoholic beverages. The higher-end bars with premium pricing are referred to as lounges Harry’s , Hard Rock Café, Chilli’s and T.G.I.F Medium Quick Service Restaurants Minimal table service. Some restaurants also feature takeaway and home delivery formats McDonald’s, Nirula’s, Domino’s, Subway, KFC, Pizza Hut and Haldiram’s, Medium Food Courts Collection of multiple quick service restaurants with a common seating area Relatively new format popularized by shopping malls, airports, hospitals and office complexes Spoon*, Food Talk Medium Cafes Comprises modern format beverage retailing chains including coffee bars, parlors and tea bars The Coffee Bean & Tea Leaf (CBTL), Barista Lavazza , Café Coffee Day, Costa Coffee, Mochas, Starbucks High Kiosks A relatively new format which comprises generally Chinese food, corn, savory Indian snacks including chaat and ice cream kiosks Gelato, Baskin Robbins, Naturals Medium Source: NRAI 2010- White paper on the Indian Restaurant Industry * Mostly multiple restaurants aggregated by the mall developer
  • 6. Target Customer Age, Demographics, Gender etc Define based on Need State : Purchasing Attitude, Visit Ocassion Distinct group of people that you want to engage with
  • 7. POSITIONING YOURSELF The positioning framework Simplified. • Target Customers - Consumer Segments.  Value – Perceived offering to Price.  Foodie – Innovative offerings  Health conscious - Healthy foods  Aspirations and More……… • UNDERSTANDING THE BRAND – Competitive frame of reference  Compete on categories that are different and unique Target Audience Brand framework Benefit that differentiates Reason to believe • Benefit - Differentiating Attributes defining the brand.  Contemporary, Fun, Simple & Quick  Home Delivery, Café, Lounge, Bars etc • RTB - Reason to Believe.  The guest should be Able to See, Touch, Feel & Believe the offering.
  • 8. IDENTIFYING KEY DIFFERENTIATORS • LOCATION! LOCATION ! LOCATION ! This comes out to be the major factor defining if it will make or break a restaurant. • SERVICE : Service plays a very important aspect in defining your brand and its offering. Will people think of your restaurants as a place with “exceptional customer service?”. Prompt Response (within 24 hours) . I-pad offered by our brands to ensure quick recovery. • PRICING : In a market like India pricing plays a key role as consumers have define value based on their experiences. You can be in the affordable segment, value segment and premium segment. • OFFERING/FOOD SELECTION : Differentiating your restaurant on products, cuisines is quite common which can be sooner or later replicated. Innovation to taste keeping the broader aspect intact is what comes out as a winner. • THEME BASED RESTAURANTS : Every business is based on a thought which defines the place, it could either be cuisine, theme, category. Many brands are based on themes which follow consumer needs like Buffet BBQ Nation, Global Fusion and Deli’s wherein consumer can buy products too apart from dine-in. • HERITAGE : Some brands are built on heritage of having served and survived over decades building the RTB for consumers to choose that brand .Eg : Copper Chimney.
  • 9. POSITIONING ON THE 4Ps PRODUCT PRICE PROMOTION PLACE/DISTRIBUTI ON Snob Value Premium Comfort Premium Affordable price Value Exclusive Selective Accessible Prestige Fun Tactical Positioning Implementing your strategy based on research and understanding of the chosen segment using the 4Ps
  • 10. COMMUNICATING THE POSTIONING Earlier positioning could just be about location and cuisine while today it is a lot more . • Today Positioning involves a multifaceted approach  Communication through various mediums internal & external.  Constantly redefining value proposition.  Innovation to keep the excitement level with minimal budgets and using word of mouth as an effective approach.  Partnering with bloggers, retailers, banks, online food sites etc.  Review feedback for insights.
  • 11. COMPETITON BRAND SPACE - Competitive Analysis: Understanding brand perception LowAPC Premium HighAPC Bombay Blue Moshes Mia CucinaLittle Italy Olive Indigo Copper Chimney Value Contemporary California Pizza Kitchen Traditional High APC has to be backed with a positive brand perception Café Mangii Out of the Blue Pali Village Cafe McDonoalds/KFC Pizzahut Spaghetti Kitchen Punjab Grill Dominos Rajdhani Pind Balluchi Mainland China Noodle bar Soam / Swati Cafes
  • 12. RAJDHANI – INDIAN POPULARIZED THE TRADITIONAL THALI TO BECOME A CHAIN OF RESTAURANTS
  • 13. SUBWAY DISSECTED THE MARKET TO SERVE ONLY SUBMARINE SANDWICHES
  • 14. COPPER CHIMNEY BUILT ON THE HERITAGE OF SERVING NORTH INDIAN FOOD FOR DECADES
  • 15. BOMBAY BLUE – THE FUN PLACE • What ? – We wanted to increase Pepsi consumption at our outlet • Where ? – Bombay Blue outlets across Mumbai • How ? – By participating with Pepsi ‘Tameez se kyun Dekhen?’ campaign – Creating special food and Pepsi combo – Creating online buzz – Contest/ merchandise give away – And In store activation to connect and engage with our Guest
  • 16. T20 Menu creative T 20 menu Outlet communication T 20 Contest On ground activity Winners Gratified
  • 17. SPAGHETTI KITCHEN – TRADITIONAL ITALIAN • What ? – Master Class in association with Four Seasons wine • Where ? – Inorbit Mall • How ? – Cooking aficionado's participated in the master class to learn more about our secrets. – They would learn the basics of cooking, Italian recipes & secrets of getting it right at home.
  • 18. THE COFFEE BEAN & TEA LEAF • What – Like ‘happy hours’, CBTL came up with ‘Open house’, concept where guest can get great offers within limited Time Frame – Helped us increase off peak hour sale • Where – Phoenix Market city, Pune • How – Through in store activation. – Mall, Face book Page. – Emailer & SMS Blast
  • 19. THANK YOU