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Final project bba
1. Opening a new Branch of K &N’s
By
Muhammad Abdullah Butt
BBA (SESSION 2015-2019)
School of Business & Management Sciences
Minhaj University, Lahore
December 2014
Final Project Submitted to the School of Business & Management Sciences
In Partial Fulfillment of the requirement for the Degree of Bachelor of Business
Administration (BBA Honors)
2. 1
Introduction of ResearchScholar Name:
Muhammad Abdullah Butt
Roll No: 01
Class: BBA (Honors)
Session: 2015-2019
Introduction of Supervisor
Name: Saleem Zia
Designation: Lecturer School of Business
& Management Sciences
School of Business & Management Sciences
Minhaj University, Lahore
December 2014
DECLARATION
I hereby declare that this submission is my own work and that, to the best of my knowledge and belief,
it contains no material previously published or written by another person nor material which has been
3. 2
accepted for the award of any other degree or diploma of the university or other institute of higher
learning, except where due acknowledgment has been made in the text.
Signature _______________
Name: Muhammad Abdullah Butt
Reg.No.2015s-mulbba-005
Date:____________________
PROJECT COMPLETION CERTIFICATE
It is certified that the project entitled Determinants of Optimal Capital Structure (A study with
reference to Pakistani Automobile sector) has been completed by Mr.Muhammad Abdullah
Butt Registration No. 2015s-mulbba-005 under my supervision. It is also certified that the project
based on original research work and meets all criteria and standards laid down for BBA degree.
4. 3
The following areas have been critically monitored:-
1. Conformance to APA Format.
2. Precision & Correctness of the language.
3. Literature Review is relevant and comprehensive.
4. Relevance of references with the text.
5. Methodology and Estimation techniques are appropriate.
Name & Signature: - ------------------------
Designation:- -----------------------------
Date: _______________
5. 4
SCHOOL OF BUSINESS & MANAGEMENT SCIENCES
BBA (HONS) FINAL PROJECT AND DEFENSE APPROVAL SHEET
The undersigned certify that they have read the following project, examined the defense and are
satisfied with the overall exam performance, and recommend the project to Department of
Business Administration for acceptance.
PROJECT TITLLE
Opening a new Branch of K &N’s
Submitted by: Muhammad Abdullah Butt Registration #2015s-mulbba-005
Bachelors of Business Administration (Honors)
Degree in Full (BBA (Honors)
Specialization (Marketing)
Name of Discipline
Mr.saleemzia
Name of Research Supervisor Signature of Research Supervisor
Mr. Sajjad Ahmad
Name of Head SBM Signature of HOD
Dr. Nisar Ahmad
Name of Dean Signature of Dean
6. 5
DEDICATION
I dedicate this research project to my honorable parents whose inspiration towards knowledge
served as a beacon of light. Whose encouragement and prayers strengthened me at every step of
my life.
I also dedicate this research project to my respected teachers especially, my supervisor Sir Rana
Tanveer and Sir Faisal Javaid lecturer School of Management Sciences, Minhaj University Lahore.
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ACKNOWLEDGEMENT
Thanks to Allah for providing me the strength,Courage, direction and skills to learn,Acquire
knowledge and the ability to accept and meet challenges.
Secondly I would like to thank all those who have helped in performing this research project
especially my respected supervisor Mr. Rana Tanveer Lecturer School of Management Sciences
and Dr. Nissar Ahmed, Dean School of Management Sciences and all faculty members.
I hope this project will be beneficial for every knowledge loving individual.
PROJECT K&N’S RESTAURANT
Submitted to: Prof. saleem zia
9. 8
Contents
Part I – The Consumer and Market Profile.................................................................................... 9
SECTION 1: BRIEF DESCRIPTION OF PRODUCT/SERVICE AND ITS INTRODUCTION
INTO A NEW MARKET:............................................................................................................. 9
Section 2: Consumer Profile:.................................................................................................... 15
Section 3: Market Profile:......................................................................................................... 18
Part II – Marketing Strategy......................................................................................................... 30
Section 1: Marketing Mix:......................................................................................................... 30
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Part I – The Consumer and Market Profile
SECTION 1: BRIEF DESCRIPTION OF PRODUCT/SERVICE AND ITS INTRODUCTION
INTO A NEW MARKET:
History
K&N‟s is the founding pillar and beacon for Pakistan poultry industry. Building on years of
poultry expertise, and a commitment to food-safety, K&N‟s integrated all poultry production
activities under one umbrella to ensure quality and food-safety by managing and controlling all
stages of production. The year 1964, Pakistan a young independent nation forging ahead towards
a dream: self sufficiency in food production. Malnutrition remained a major problem and one out
of four children died attaining at the age of five. 80% of ailing children were affected with
disease caused by protein, vitamin and mineral deficiency. Poultry production, the quickest and
least expensive way of filling the protein gap was planned to overcome malnutrition. Backyard
poultry farming had to graduate to a more professional level.
january 1964, a young man, Khalil Sattar, still a college student, had the vision to foresee a need
to establish a poultry farm. His interest led him to start a small broiler farm of 1,000 chicks.
Little had he known this flock was to become the foundation stone of K&N's.
This was the simple, inspired and nationalistic beginning of K&N's with a single-minded
objective of providing better nutrition for Health and Happiness of people. The K&N's® brand
has excelled in poultry for 55 years, with know-how in every aspect of poultry production
ranging from poultry breeding and feed milling, to growing and processing of chickens, and on
to production of premium chicken products.
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For 55 years, K&N's has remained true to its raison d'être (reason to exist) of providing better
nutrition through poultry for Health and Happiness of people, and is now a favourite chicken
brand of millions of people.
As the K&N's® brand gained recognition internationally, K&N's set up manufacturing
operations in the US for producing chicken products to serve US, Canada and other countries
around the world.
Vision:
“To be the best food provider in Pakistan.”
Mission:
We – K&N’s Restaurant aim;
To provide safe healthy and hygienic food so that customer buys that frequently
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Our employees to be satisfied with the job so that they can service customers at utmost
level.
To set up new level of excellence in food industry with good taste having ingredients of
growth and success.
Introduction:
In today‟s fast moving world the major issues related to society is the time. This is a factor which
creates hurdles in decision making of consumers to adapt a product according to their needs.
Another factor which contributes towards social setup for behaving in more specific purchases is
the health of general public. According to a research conducted more people were found to be
cautious about contents and taste of the products they consume. They prefer easy to use and quick
to serve products in their meals. These product are mainly focusing on the working women and
the hostilities. The hostilities require something that is ready to serve in minutes that is less time
consuming but still full of taste and nutritious as they miss the taste of homemade food and the
working women cannot get time to prepare meals, so these product provides them the solution to
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their problems. But increasing prices are reducing its demand and shifting consumers to other
brand.
We K&N’s a renowned brand in selling ready-to cook safe and healthy chicken and chicken
products is now entering into the business of the restaurant. The K&N’s restaurant provides you
with the best of taste while being safe and healthy that you can frequently eat and enjoy with your
families and friends. We as K&N’s restaurant not only provide the food but we ensure to fill your
time of dining inn unforgettablememories through the most soothing environment of the restaurant
where you can hang out with your friends and families.
K&N’s Restaurant Services:
The K&N’s restaurant ensures that your time with them surely be the best part of your day. The
K&N’s restaurant friendly staff is always on duty to make you comfortable and deal with all your
concerns. The spacious dining area with capacity of 25 tables ensures that you don’t have to wait
for enjoying your meal. The waiting area with comfortable siting arrangements saves you from
the hassle of waiting . The play area for the kids gives your children to have fun and enjoy their
time while food being served to them. The separate retiring room for Ladies provides them an ease
to ensure privacy.
K&N’s Restaurant Products:
The K&N’s restaurant is to provide you with the best of taste while keeping in view that all our
products are safe and healthy. The vast range of food items provided you in the restaurant surely
entice your taste buds while fulfilling the nutrition requirements. The K&N’s restaurant in order
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to give you the best food ensures that all the ingredients that they use should be fresh and health
friendly. The meat that K&N’s uses in their food item slaughter according to the “Shariah” so
every item that the restaurant serves is HALAL.
K&N’s Restaurant Products:
The K&N’s offers a wide range of food item that includes starters, burgers and sandwiches, pizza,
steaks and deserts. K&N’s offers a wide range of menu that contains a food for start-up, main
course and end course with shakes and ice creams.
Starters & Side Orders:
Nuggets
Tender pops
Chicken Strips
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Molten Lava Cake
Chocolate Brownie
Fudge Cake Slice
Beverages:
Soft Drinks
Water
Section 2: Consumer Profile:
Consumer Segmentation
The target market for the K&N’s restaurant which is best for the success of the product is
household consumers. K&N’s restaurant decided to focus on the hygienic, fresh, safe and healthy
food items which are important to meet the needs of the consumer who are diet conscious.
Consumer Targeting:
The target consumers of theK&N’s restaurant is divided on the basis of geographic, demographics
and behaviour factors
Geographic:
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K&N’s decided to launch its restaurant chain in Lahore.
Demographic:
The K&N’s focus on household who have certain demographics:
Age:
Ranges from 5-ownward
Gender:
Both Male and female
Income:
Ranges From Rs- 20,000 or above (In case of professional)
Occupation:
As a students and professionals
Behavior Factors:
The K&N’s are for those household consumers who are:
Students or working as a professional does not havetime to spend in cooking or who wants
to spend some quality time with their friends or families.
Households who are health conscious, and want products that are health friendly so that
they can consume the product frequently without any health hazards.
Households whogo for shopping withtheir families and give every person an independence
to choose the place they can enjoy the lunch or dinner.
Households who are early adaptor of the new product available at the marketplace.
Households who prefer quality on brand.
Differentiation:
The K&N’s restaurant provides that are made from the safe and healthy chicken. The K&N’s first
priority is ensuring the use of healthy raw materials that are used in preparation of the service.
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Along with providing the best quality products K&N’s master in providing the soothing and
relaxing environment to its customer. In order to ensure that the customers visit to the restaurant
is relaxing they offer them a value added and unique services so their dine inn with K&N’s
restaurant becomes a memorable experience. The K&N’s in order to be unique and different from
the other restaurant have service on table order placement through touch screen gadgets installed
on the table. Moreover the K&N’s restaurant provide electronic token that intimate the customer
who waits for the table to be vacant in the dine inn area.
Positioning:
K&N’s will position itself as the brand that is affordable, safer, healthier, and hygienic and nature
and human friendly. K&N’s restaurant will position itself as:
K&N’s restaurant would position the food item as a safer, healthier, hygienic and nutritious
product.
K&N’s restaurant position itself as a provider of affordable product for frequently
consumption
K&N’s restaurant would like to be recognized for its friendly environment and great taste.
Market Needs:
K&N’s indicates the need of the two customer segments that are students and professional and try
to satisfy their need by introducing their product according to their need.
Students:
They need food that are affordable and yet healthy. Moreover the students need some time to enjoy
the company of their friends while enjoying food in a soothing environment.
Professionals:
They need product that is affordable, provides convenience and saves their time from cooking the
food by themselves and yet healthy food so that they can consume the product on daily basis.
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Section 3: Market Profile:
Situational/Market Analysis:
In feasibility Analysis we are dealing in four domains;
1. Industry/Market Analysis
2. Product/Service Analysis
3. Organizational Feasibility
4. Financial Feasibility
Industry/Market Feasibility
Industry Attractiveness:
We are going to deal in fast food with good hygienic conditions in Lahore. Punjab is famous for
its food lovers specially Lahore. “Lahori khaby” are well known throughout Pakistan. If you open
up a restaurant in Lahore and serve yumelicious food then its one of most profitable and growing
business within Lahore. Even a “Nan Chany wala” in Androon Lahore is generating profitable
business out of it.
Target Market Attractiveness:
The food to population of Lahore means a culture to them. The changing trend of among people
to consume food that is full of taste and fulfill all the requirements of the nutrition value by being
safe and healthy makes the restaurant industry the most attractive one to enter inn.
Moreover like any other city of Pakistan the trend among people of Lahore about dining outside
is completely changed. Since past two to three decades enjoying food outside the home is not
restricted to the purpose of fulfilling the food requirements but it now becomes a source of
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recreational activity among the people. The people just not only enjoy the food but they plan to
visit restaurants for the get together purposes and yet enjoying the ambiance of restaurant for
relaxing from the hectic day routine.
K&N’s critical need is that it has to come with innovative ideas so people are more attracted
towards it. The trend of getting more into fast food item increases the awareness among the
customer and gave them a new horizon to critically evaluate and judge the most appropriate
product to consume and chose the best restaurant to fulfill their hunger.
How large is the industry?
As far as food industry is concerned, this is the largest industries not only in Lahore but
all over the Pakistan.
How fast is it growing?
The growth of this industry is quite consistent. After Fashion industry or clothing industry
Food industry has fastest growth but these two industries have small Life Cycle.
Is the industry as a whole profitable?
As a whole this industry is profitable enough.
Is the industry characterized by high profit margins or razor-thin margins?
This industry is characterized by high profit margins.
What trends are shaping the industry’s future?
After rapid growth of this industry in past 2-3 years, this industry is not just food industry
now but customer loyalty and satisfaction also.
What threats does the industry face?
Online ordering is the biggest threat to this industry not only in Pakistan but all over the
world.
What opportunities does the industry face?
Value addition is the biggest opportunity in Pakistan
How crowded is the industry?
As discussed above, this industry is crowded by number of food chains playing in the
market.
How intense is the level of competition in the industry?
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After fashion industry, food industry has highest level of competition that’s why this
industry is switched to value addition.
Is the industry young, mature or somewhere in between?
This industry has become mature in Pakistan; there should be some strategies to be made
in order to maintain this industry in maturity stage.
Product/Service Feasibility:
We are entering in this business with a product line of;
Starters & Side Orders:
Nuggets
Tender pops
Chicken Strips
Samosa
Fries
Burger & Sandwiches:
Chicken Fillet
Crispy Burger
Grilled Burger
Breast Burger
Jalapeno Burger
Chicken Sandwich
Club Sandwich
Breast Sandwich
Pizza:
Fajita
Tikka
Chicken Peperroni
Seekh Kabab
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Steaks:
Steak With Mushrrom Sauce
Steak with Pineapple Sauce
Taragon Chicken
Black Pepper Chicken
Wraps:
Shawarma
Crispy Wraps
Deserts:
Ice Cream
Molten Lava Cake
Chocolate Brownie
Fudge Cake Slice
Beverages:
Soft Drinks
Water
We are considering changing or adding on some more items in this menu but season to season.
Everybody loves this menu as it is trend and more demandable food item by the people now days.
Organizational Feasibility Analysis:
The founders of K&N’S have a great experience in dealing with food items. As K&N’s is a well-
known company which deals in food products that are safe and healthy and are ready to cook so
the business diversification in restaurant is not a big deal for the company to gain success. The
K&N’s restaurant will be very successful in selling the fast food items as the quality of the food
products is already appreciated by the consumer. Moreover the consumers are already well aware
of the company so the issue of brand recognition does not rise.
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Analyzing Customer:
The segmented market of the K&N’s restaurant is upper class and middle class, having sufficient
buying power. The targeted customers can buy and eat fresh food items from our restaurant.
Mostly women or top member of family buy for a reason that is K&N’s chicken is safe and healthy
and women buy the nuggets and other products to save time. In our restaurant we will give our
customers fried nuggets and many other ready toeat products which has different shapes to attract
children. The ready to eat which will save their time but also gives them a choice to try something
different. Top family members are involved in the buying process so our restaurant also offers the
burgers ,kababs, and many other products specially for those customers who only buys K&N’s
products for their children’s , so that they can also eat and enjoy our food items . The segmented
target of K&N’s are those customer which saves time by requiring less time to cook that’s why we
are offering the ready to eat food in our restaurant.
Consumer Decision Making Process:
Problem Recognition:
The customer of K&N’s realized that the clean and hygienic food is our need and demand so our
company is providing the hygienic and healthy chicken, our restaurant will also fulfill their need
by shifting ready to cook to ready to Eat.
Search for information:
Our customers are very loyal to us , new customers may find information but our existing
customers have tried our products and they have trust on us which is the main factor of customer
loyalty. We are on theno 1 best seller and trustworthybrand in Pakistanso our products can fulfill
their needs and they can take their decision after checking the information.
Evaluation of alternatives:
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The customer finds alternatives when buying K&N’s or will find alternatives restaurants when
going to the K&N’s restaurant but when the customer want the healthy chicken and healthy
products and have the purchasing power will always buy or visit to our restaurants.
Purchase Decision:
Consumers make appropriate choice like consumer needs the healthy and halal chicken products
and he gets the K&N’s products and eat or takeaway the food from our K&N’s restaurant.
Post Purchase Decision:
We can only analyze the post purchase decision of our consumers by examining the increase in
growth or increase in sales.
Analyzing Context:
PEST Analysis:
In order to enter in the industry one must know the political, economical, social and technological
situation in the country and how it supports or not supports our business:
Political:
In Pakistan especially in Punjab the restaurants are strictly under observation of Punjab Food
Authority regulations. Punjab Food authority makes sure that the food provided to the people will
be of high quality and meets the standards of proper hygiene and safety. Punjab Food Authority
randomly visits the restaurants and has a power to seal the restaurant if standards of safety and
hygiene are not met according to the set benchmark. The strict rules and regulation set by the
authority is strength for our restaurant as we mainly work on providing safe and healthy food
products to our customers.
Economical:
The population of Lahore and its surroundings has an ample financial source that they can enjoy
food from restaurants once or twice in the month. The people living in Lahore mostly have a
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disposable income and out of that income they save a portion of it to spend on outside dining. The
availability of disposal income with the people is strength for the restaurant as even students don’t
feel reluctant to spend money on food.
Socio-Cultural:
The trend among people of Pakistan towards diet consciousness is tremendously rising. People
preferred food that is safe and healthy yet hygienic. The people preferred food that remains low in
fat and meet all the nutrition requirements. The trend of dining out with the family and friends is
increasing in Lahore from past two three decades. People not only considered dining as a source
of fulfilling their food requirement but it is now considered as a recreational activity to and also
a source of get together for the people.
Technological:
In general, the restaurant industry is a low-technology industry. If there are strong technological
demands in a market, this may make it difficult to enter the market. In the restaurant industry,
specialized equipment is the largest technological factor.
Demographic Environment:
The population of Pakistan majorly comprises of the youth who ages between 18-30 years
according to the census. The average family size in Pakistan is 8-10 persons and has an extended
family system that consists of parent’s parents and their children.
Natural Environment:
The K&N’s focus on performing operations that are Eco-Friendly and have no harm on the
environment. They K&N’s restaurant ensures that the smoke emission from the kitchen will be
properly filtered. The wastage of the restaurant is properly disposed of t in the recycling bags to
keep the environment clean.
Analyzing Company:
Following is the analysis of the company that includes the business model of the K&N’s restaurant
and their patterns of competition
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The Business Model of K&N’s Restaurants is following:
Franchisee will be responsible for hiring and firing.
Franchiser will be responsible for Training and Development of Franchisee’s Employees.
These are the terms which all franchiser who are selling the K&N’s products and specially for us
who are opening and introducing their first restaurant in Lahore.
The Company is competing by Following:-
The K&N’s is offering unique and valuable products in the market by focusing on the small
segment ( Upper class and middle class) and by offering different shapes in products which
attracts the children’s.
By pursue diversification strategy into fully integrated market.
They have a superior skill like slaughtering and hygienic process Halal certified.
Good reputation in the market and establishment of K&N’s name in international market
by self-production plant and self-sufficient to produce helping material itself for finished
product.
They are low cost producers and the operations done by K&N’s are at very low cost
because they don’t import and purchase feed.
The best advantage which helps them in competing is the Staff resources advantages like
JIT Just in time, resources should be available to make the recipe means preparation of
chicken should be ready to meet the demand of the customer in a timely manner.
Analysis of Company:
Following is the analysis of the company that includes the business model of the K&N’s
restaurant and their patterns of competition
The Business Model of K&N’s Restaurants is following:
Franchisee will be responsible for hiring and firing.
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Franchiser will be responsible for Training and Development of Franchisee’s
Employees.
These are the terms which all franchiser who are selling the K&N’s products and specially for us
who are opening and introducing their first restaurant in Lahore.
The Company is competing by Following:-
1. The K&N’s is offering unique and valuable products in the market by focusing on the
small segment ( Upper class and middle class) and by offering different shapes in
products which attracts the children’s.
2. By pursue diversification strategy into fully integrated market.
3. They have a superior skill like slaughtering and hygienic process Halal certified.
4. Good reputation in the market and establishment of K&N’s name in international market
by self-production plant and self-sufficient to produce helping material itself for finished
product.
5. They are low cost producers and the operations done by K&N’s are at very low cost
because they don’t import and purchase feed.
6. The best advantage which helps them in competing is the Staff resources advantages like
JIT Just in time, resources should be available to make the recipe means preparation of
chicken should be ready to meet the demand of the customer in a timely manner.
Analyzing Collaborators and Complementers:
Collaborators are the company and people who help the firm in marketing the product of
customers. Collaborators include supplies are provide the material to make product main work
supplies and retailers. K&N’s Restaurant material of product buy. K&N’s restaurant are
committed to providing safe, quality products and services. It is our goal to work collaboratively
with our suppliers to exceed our customers’ increasing expectations, achieving outstanding
performance through best in class products, services and processes. We expect our suppliers to
conduct their operations in a socially and environmentally responsible manner, aligning with
Johnson Controls values and policies. The largest online restaurant supply store serving food
service professionals and individual customers worldwide. With thousands of available products
and over 5.5 million orders shipped, we have everything your business needs to functionat its best.
28. 27
Over the years we have expanded our selection of wholesale supplies and commercial equipment
to include healthcare, educational, and hotel supplies. Our focus is your convenience – order
online from your laptop, desktop, or smartphone 24 hours a day, 7 days a week. Our fast shipping,
low prices, and outstanding customer service make Webstaurant Store the best choice to meet all
of your professional and food service supply needs to pervade of other restaurant feed fulfill like
of short of material. Examples K&N’s restaurant save of metal in coming future and sell out of
other restaurants complement.
Supplier 1
Rice
Spices
Sauces
Curly Fries
Oil
Tissue Paper
Supplier 2
Butter Paper
Packing
Paper Bags
Aluminium Foil
Supplier 3
Salad
Vegetables
Supplier 4
Chicken
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Supplier 5
Ice-cream
Supplier 6
Yogurt
Supplier 7
Water
Soft Drinks
Distribution:
K&N’s in its start-up phase, so it does not have much expanded distribution channel. The K&N’s
restaurant have only one restaurant in its initial phase through which they can make their product
available toits customers. The time thecustomer walks in the restaurant themenu will be available
to the customer from where they can choose the product and the product is made available to them
freshly prepared after their order placement
And complement analysis are the companies and or people also benefit the sells its product.
Common complementary include other companies sell chicken next step to restaurants. They are
help of business partners to achieve goals.
Analyzing Competitors:
Competitors Analysis involves identifying and analyzing companies like K&N’s Restaurants
competitors are Domino's Pizza, Hardee's, KFC, McDonald's, Nando's, One Potato Two Potato
(OPTP).Pizza Hut, Salt 'n Pepper Village, Subway, Ziafat, Chachau Khalid's dine out, Tabaq,
CafeZauq, Olive Grill, CaféAylanto, Tia Maria, Jammin, JavaCafé, Fatburger, Los Angeles Cafe
& Lounge. The target market for the K&N’s restaurant which is best for the success of the product
is household consumers. K&N’s restaurant decided to focus on the hygienic, fresh, safe and
healthy food items which are important to meet the needs of the consumer who are diet conscious.
Strength is fresh food provide on the time .Weakness K&N’s restaurant offers a consumer product
30. 29
which includes frequent purchases, little planning of customer and low effort, so we would have
to set low price, with convenient distribution and mass promotion .
Porter Five Force Model:
Bargaining Power of Suppliers:
The bargaining power o supplier in restaurant industry is quiet low. The reason behind the low
bargaining power of supplier is that restaurant do not produce their own food, but buy from
butchers, farmers, etc. and there are plenty of suppliers of meat and vegetable in the industry so
the restaurants have a vast range of suppliers in case they found the prices or quality of the raw
products is not up to the standards or supplier is charging high for the products. In case of K&N’s
restaurants is more lower than the other restaurants because K&N’s produce their own chicken
which can be used for making the product only the need of vegetable farmers is left with them.
Bargaining Power of Customer:
The bargaining power of customers is very high in the restaurant industry as there are many
restaurants that are serving in the industry. There are many restaurants which differ in terms of
prices and quality and variety of the food and can cater the market of all segments of customers
according to their need and willingness. In case of our business bargaining power of customers is
quite high, because there are other competitors playing in our area; bargain power of customer
is essential point. Restaurants have to keep their price low in order to gain customers; otherwise
they will find some other restaurant.
Threat of New Entrants:
The threat of new entrants to the market in the restaurant industry is very high. This is because
there are extremely low barriers to entry. It is not so expensive to start up the restaurant business
that is why there are often a lot of new entrants.
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Threat of Substitutes:
The treat of substitute is high in the restaurant industry as almost all the restaurant offers almost
same food item however the quality or price may differ. The threat in restaurant is even more high
in the industry as the direct substitutes are available in the market so if any customer wants to buy
a food item there are many options that can be availed in terms of price and quality without
sacrificing the product choice.
Rivalry among the Competitors:
Rivalry among the competitors is very much high in the restaurant as there are many restaurants
are serving in the vicinity of Lahore. Each and every restaurant has almost offer the same food
items that can be availed by the customer according to their spending power.
Part II – Marketing Strategy:
Sales Strategy:
K&N’s sales strategy focus on the concept marketing mix that consists of 4 P’s Product, Price,
Promotions, and Place.
Section 1: Marketing Mix:
Product:
Factors Concentration (LOW/HIGH)
Bargaining Power of Suppliers Low
Bargaining Power of Customer High
Threat of New Entrants High
Threat of Substitutes High
Rivalry High
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K&N’s restaurant offers a consumer product which includes frequent purchases, little planning of
customer and low effort, so we would have to set low price, with convenient distribution and mass
promotion. The important thing to which every fast food restaurant largely emphasizes on is the
menu. K&N’s provides a wide range of items in a menu which provides a vast range of choices to
the customer. The K&N’s restaurant menu offers a food item for starter, main course, and end
course.
Product Line:
Starters & Side Orders:
Nuggets
Tender pops
Chicken Strips
Samosa
Fries
Burger & Sandwiches:
Chicken Fillet
Crispy Burger
Grilled Burger
Breast Burger
Jalapeno Burger
Chicken Sandwich
Club Sandwich
Breast Sandwich
Pizza:
Fajita
Tikka
Chicken Peperroni
Seekh Kabab
33. 32
Steaks:
Steak With Mushrrom Sauce
Steak with Pineapple Sauce
Taragon Chicken
Black Pepper Chicken
Wraps:
Shawarma
Crispy Wraps
Deserts:
Ice Cream
Molten Lava Cake
Chocolate Brownie
Fudge Cake Slice
Beverages:
Soft Drinks
Water
Product Life Cycle Stage and Issues:
The K&N’s restaurant is in its introduction stage as the restaurant is going to launch in the city
and it has no outlet yet opened. The restaurant in its initial phase is not yet known by the masses
so the sales in the introductory phase generate little or no profit. The K&N’s restaurant in its
introduction phase can gain greater market shares by running the Below The Line and Above The
Line marketing campaign as it creates awareness among the people.
Price:
Starters & Side Orders:
Nuggets Rs.120
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Deserts:
Ice Cream Rs. 120
Molten Lava Cake Rs.200
Chocolate Brownie Rs.180
Fudge Cake Slice Rs.250
Beverages:
Soft Drinks Rs. 70
Water Rs.50
Pricing strategy of a K&N’s restaurant mainly focuses on the behavior of the customer. The
customer makes a mental picture that what product is worth for. K&N’s products have very
nominal prices that every employed person with a minimal salary can have a fast food treat twice
in a month. The K&N’s I its start-up phase will apply penetrating pricing strategy to find out how
much amount a customer is willing to pay. The K&N’s restaurant also focus on Value Pricing as
the restaurant progresses by knowing the customer reviews about the products offered by the
restaurant.
Promotion:
The motiveof promotional activities in theinitial phase of K&N’s restaurant is to create awareness
of the existence of the restaurant among the people. A combination of both print media and the
online media will provide us a way to launch our product and services in the market. This
technique is the fastest one to introduce our brand among all the people related to our target
market. The technique of launching our services will help us to get penetrated in the market within
a few days.
Place:
To allocate the place of restaurant is the most critical point to ponder upon. It helps to bring a
product to the end customer. K&N’s restaurant selects a place for its restaurant where there is a
thickly populated shopping area so that people can enjoy the food during their shopping. Keeping
in viewthe target segment K&N’s will open its restaurant on M.M Alam Road as the area is thickly
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populated by the shopping malls and restaurants and people over their when get tired of shopping
finds a place to relax and enjoy food.
Distribution:
K&N’s in its start-up phase, so it does not have much expanded distribution channel. The K&N’s
restaurant have only one restaurant in its initial phase through which they can make their product
available toits customers. The time thecustomer walks in the restaurant themenu will be available
to the customer from where they can choose the product and the product is made available to them
freshly prepared after their order placement.
Blue Ocean Strategy:
The K&N’s restaurant main objective is to provide their customer with safe and healthy food item
in a soothing environment for the relaxing dine inn opportunity. The K&N’s in order to give ease
to the customer which comes to the restaurant offer them unique services that will make their visit
more enjoyable. The K&N’s in order to make their customer comfortable and saves them from the
hassle of ordering to the person, install the touch screens on the each table that allow the customer
to book their order without calling or wait for the person. Moreover the touch screen gadgets
installed in the table will allow the customer to view their order delivery time that will save the
customer form asking the relevant person again and again about their order. The installation of
order placement gadgets reduces the cost of labor and also provides ease to the customers.
Moreover the installation of order placement gadget will increases the level of accuracy of order.
The K&N’s restaurant for the customer who are waiting for the dine inn facility provide them with
an electronic token on which light blinks when the place in the dining area is vacant. This will
reduce the tiring period of the customer that they spend in the waiting area without knowing that
when and whether there is place in the dining area that is vacant.
Moreover the K&N’s restaurant should focus on arranging theme events. The restaurant should
entertain and make arrangements according to the occasion. The K&N’s should also focus on
entreating the customer with the live singing it will add soothing effect to the environment and
makes it more lively.
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Section 2: Implementation:
In order to make the K&N’s restaurant services and products available to the end customer there
are certain steps that need to be done for the smooth execution of the plan. The plan will include
the time of the launching of the products when does it will be available to the customer, the
promotion of the product or service to communicate the existence of the business and what it will
offer to the customer.
The K&N’s restaurant will start operating in the city of Lahore on M.M Alam Road by the end of
June. The K&N’s restaurant in order to secure the on time delivery of the raw material will
negotiate with the supplier by the end of April The K&N’s restaurant in order to make people
Eliminate
Hassel of order placement
Raise
Soothing and relaxing dine inn area
Theme event arrangements
Order accuracy
Reduce
Tiring waiting time
Order error
Labor Cost
Create
Touch Screen order replacement
gadget
Electronic token for waiting
intimation
Live Singing
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aware of the business and products that they are going to offer in the restaurant starts its
advertising by the start of May. The K&N’s restaurant will offer discounts for the customer for the
first week when restaurant will be open to start its services for the customers. Further the K&N’s
restaurant will offer sales promotion according to the events that are celebrated in the Pakistan.
Along with all the marketing activities the K&N’s restaurant will also perform activities that are
necessary to start the business like purchasing of building, fixtures installation and buying of
kitchen equipment and furniture.
In order to start our restaurant we will initially buy a pre-constructed building on M.M Alam in
April. After completing all the legal aspects of buying the property by the end of April we will start
renovating the building. The renovation includes the installation of fixtures and paint of the
building according to the requirements of the restaurant to make the environment more soothing
and relaxing for the customers this works will be end by the May. Along with the installation of
fixtures we will also buy the equipment (fryer, cooking range, oven etc.) that are needed in the
kitchen for the preparation of the food and also the crockery that will be needed to serve food to
the customer. After completing the buying of kitchens equipment and crockery by the end of May
we will buy furniture for the restaurant that includes tables, chairs, babysitting chairs till mid
June. The restaurant will start its operations in the end of June on Eid-ul Fitar.
