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Comparitive analysis of major fast food joints in india

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To identify and analyze the marketing strategies of the three fast food chains:
McDonalds
Wimpys
Nirulas

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Comparitive analysis of major fast food joints in india

  1. 1. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIA INTRODUCTIONObjectives• To identify and analyze the marketing strategies of the three fast food chains: - McDonalds - Wimpys - NirulasUnder the fast food market.• Analyzing the performance of the above chains since the past five years.• Making a comparative analysis of the above three restaurants.• Identifying the recruitment and selection procedures adopted by the stated restaurants at : - Managerial - Supervisory - Clerical and - Operational level (Operations comprise an important part in any restaurant).SaurabhGupta 1ICFAI BUSINESS SCHOOL HYDERABAD
  2. 2. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIA• Conducting market research study to determine : - Percentage wise consumer preferences - Frequency of visit at each of the stated restaurants - Identifying unique factors that attract people to the stated restaurants.SaurabhGupta 2ICFAI BUSINESS SCHOOL HYDERABAD
  3. 3. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIA METHODOLOGY• Information regarding the organisation, 4P’s of marketing, and consumer preferences has been obtained through :a. Primary Sourcesb. Secondary Sources.Primary Sourcesi. Marketing personal, PR personnel of the concerned organisation were approached to obtain in formation about the concerned subject (Sample questionnaire on the next page). McDonalds marketing and other details had to be obtained indirectly through its public relations firm since direct accessibility to the corporate office was not possible.ii. Market research study was conducted in order to find out percentage wise preferences of the stated fast food restaurants.Secondary Sourcesi. Internetii. Libraries such as CII and PHD Houseiii. Articles from A & M and economic timesiv. Company brochures, literature and pamphlets.SaurabhGupta 3ICFAI BUSINESS SCHOOL HYDERABAD
  4. 4. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIA• Based on the information obtained from the above sources concepts were developed on which analysis could be made.• Conclusions and recommendations have been thereby given after a thorough evaluation of the marketing strategies of the three restaurants.SaurabhGupta 4ICFAI BUSINESS SCHOOL HYDERABAD
  5. 5. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIA ORIGIN OF THE FAST FOOD MARKET IN INDIATraditionally over the ages, fast food for the average Indian customer meanthaving breads i.e., paranthas, rotis etc. with sabzi or achaar. These were thetraditionally available snacks or in the form of samosas etc. All the items wereavailable at the roadside dhabas or the local sweet shops. There were noestablished eating places or restaurants for the average Indian customer.It was the Nirulas family way back in 1920’s that started the trend of openinggood eating places in the city. Nirulas initially when they entered therestaurant business, were more into catering and hotel business. It was only inthe late 50’s and early 60’s that they decided to open up a restaurant servingsnacks and fast food. By 70’s they had a pastry shop, snack place and HotShoppe. This started the trend of eating joints in the city and over the country.Nirula’s was considered to be the pioneer in fast food business. Seeing itssuccess in the country other local fast food joints and restaurant startedcoming up in the 80’s. With the coming up of these local joints Nirulas was notleft behind. It had a well-established fast food chain over the next decade.However seeing the potential in the country in the 90’s due to the changing lifestyles, the established chains world over made their entry into the Indian foodmarket. However the tastes and the style of the kind of food which theseMNC’s we offering the Indian customer has been made familiar to him byNirula’s only.SaurabhGupta 5ICFAI BUSINESS SCHOOL HYDERABAD
  6. 6. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIAAlthough the concept was introduced to the Indians way back, but in the truesense market for fast food has been developed only after the entry the variousMNC’s starting with Wimpys to McDonald’s, Pizza Hut, TGIF, Dominos etc.,with many more to come over the next few years.SaurabhGupta 6ICFAI BUSINESS SCHOOL HYDERABAD
  7. 7. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIA THE INDIAN FAST FOOD MARKET - AN OVERVIEWUpto the year 1995 Indian food market was predominantly dominated by thetraditional dhabas, potential restaurants in the customer’s colony and somerestaurants in a five star hotel. Having fast food i.e., burgers, pizzas etc., wasconsidered to be an option for eating out. It was not at all synonymous with theAmerican concept of fast food as a quick takeaway bite or a substitute forlunch.Apart from fast food being available at the local colony restaurants and atsome five star restaurants, Nirulas was the only fast food chain existing in thecountry with its restaurants expanding with every passing year since itsinception. It has been almost 50 years now since its set up and there is hardlyany one who doesn’t know that Nirulas exists. Nirulas was the first one to bringfast food to India back in the 50’s since then it has evolved into an eatingplace with a tremendous brand equity and brand recognition. It proved to be aperfect eating place for an average middle class who wants to eat out at anaffordable price who cant afford the five-star restaurants and would not wantto go to the local dhabas.Nirulas almost had a monopoly for decades due to the way it has been placed.It is a place where a person from an average middle class group to upperclass group can go to eat out. Its popularity has increased over the decades.With the trends changing and the incomes rising almost anybody who canafford to eat out could go for a snack at Nirulas.SaurabhGupta 7ICFAI BUSINESS SCHOOL HYDERABAD
  8. 8. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIAHowever the year 1995-96 witnessed a drastic change. 1996 is considered tobe the year of India’s entry into the world food market. International giantssuch as McDonalds, KFC, TGIF, Dominos, Pizza Hut all bombarded the Indianfood market.Before these, UK-based joint called Wimpy’s had established its chain in thecountry in 1990. By year 1996 it had about three to four joints established inDelhi. However it did not pose much of a threat to Nirulas reason being lack ofvariety and that Wimpys was looked at more of a hangout place rather thaneating out with the family.Its been the American international giants i.e., McDonalds, Pizza Hut etc., whohave targeted their restaurants to the families. Apart from the foreign andIndian fast food chains setting up shop, there are a range of specialtyrestaurants offering varied fare such as Chinese, Mexican, French, Italian etc.These places however offer range of items different from burgers, pizzas etc,but they definitely are competition to both foreign and Indian fast food chains.However, restaurant business is such which is surrounded by threat fromeverywhere be it Indian joints or foreign joints.It is only these international joints and specialty restaurants which aregradually coming up and some Indian restaurants which have made up thefood market. Prior to this it was only the local restaurant that became visiblewhile passing by or through local banners etc., and the five star restaurantswere for the elite class out of reach by the average middle class customer.There was hardly any awareness or promotion to beat competition.SaurabhGupta 8ICFAI BUSINESS SCHOOL HYDERABAD
  9. 9. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIAEach of the foreign food joints that have come into the country has their ownstrategy lined up to differ from the rest. Each of these studied the Indian tastesand style and thereby targeted the Indian customer. An average Indianrestaurant goer is no convenience eater, unlike the Americans.If he is paying, he is paying for food that tastes good (Spicy, soft, savory etc.),not for how pleasantly the stuff is served or how spotless the widows are. Hewants food for that can make him come back to the restaurant. An Indian foodjoint owner would definitely understand this but an American company, whichcomes and places it directly without knowing the customer is definitely in fortrouble. Customer loyalty in a restaurant business is essentially low. Acustomer when he comes to a restaurant usually looks at the quality of food,variety, ambience, speed of delivery and the location. The variety wouldinfluence the frequency of visits since taste is a dominating factor to the Indiancustomers.Almost all the fast food chains both Indian i.e., Nirulas and foreign i.e.,McDonalds etc., are targeting the families. This serves to be an advantagebecause the turnaround time is short and family has higher propensity tospend because different members order larger variety of dishes.Each of these restaurants delivers quality, value and services in its own waythrough its line of strategies. The emphasis is on the value that the restaurantis delivering to the customers.SaurabhGupta 9ICFAI BUSINESS SCHOOL HYDERABAD
  10. 10. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIA WIMPY’SA). AN OVERVIEWWorld Wide OperationsWimpy’s overseas limited has its origin in United Kingdom since 1954.Wimpy Overseas limited has an outlet almost all over the world. Currentwimpy operation spreads from Jamaica in the West to the Philippines in theFar East. It has it strongest representation in the Middle East. Its mostNortherly restaurant is in Bodo, Norway within the Arctic Circle. The furthestSouth restaurants are in South Africa where there are currently about 200wimpy restaurants operating.Story behind the name ‘Wimpy’The name “Wimpy” was first heard of in the” POPEYE THE SAILOR MANCARTOON”.Popeye and his girlfriend, Olive, had a friend called Wimpy. Wimpy was arounded, hamburger-eating gentleman, whose slow drawn out voice wasbased on a famous wit of that period. He was the inspiration for the WimpyEmpire.Even today Mr. Wimpy is a similar shape, he is dressed as a beefeater as thisis the name of the Queens guards who according to tradition, protect theCrown Jewels.SaurabhGupta 10ICFAI BUSINESS SCHOOL HYDERABAD
  11. 11. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIAThis way the fact that Wimpy is a very and also the heart of the business, theHAMBURGER are linked in one person as the trade mark for the company.Indian OperationsWimpy is the oldest of the international chains to enter the Indian scene.The company in India i.e., Wimpy’s international Ltd., is a hundred percentsubsidiary of Wimpys overseas limited. Wimpys in India is the masterFranchise for South East Asia.It extends its operations to Katmandu and Sri Lanka. It started its operations inIndia in 1989 with the opening of one outlet in Delhi’s Connought Place area.Today Wimpys has about 15 outlets in the country with more expansion plansaround the corner for more outlets in the next two to three years.B. MARKETING FUNCTIONSWimpys opened its first restaurant in Delhi in 1989. Its been almost nine yearssince it was established, Wimpys is primarily recognised as the burger Chain.Initially while Wimpys entered the Indian market it hardly had any competition,except from the local restaurants or from local fast food joint Nirulas.In order to beat against competition the company has to decide upon its targetaudience. Since its inception the Target Consumer with Wimpys have beenyoungsters between the age group of 18-30 and the kids. Even today Wimpysaims to target the same audience.SaurabhGupta 11ICFAI BUSINESS SCHOOL HYDERABAD
  12. 12. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIAWimpys as a fast food restaurant has been positioned as a very pleasantresting-place where a wide variety of items are available through fast service.It is basically selling ambience and atmosphere.Wimpys marketing strategy lies in Fast Food. Based on this the details of itsmarketing mix i.e., product, price promotion and Distribution are explainedbelow:Product Based StrategiesWimpys is offering in the market and to its customer’s fast food in the form ofburgers, pizzas, salads, beverages, milkshakes, ice creams and assortedtreats.Any product has three levels i.e.,Core product: here a consumer buys a burger or a pizza to satisfy its taste buds.Actual Product: The burger that he buys that is neatly packed with Wimpys mentioned on the cover is the actual product.Augmented product: Ambience, past service atmosphere, cleanliness all augment the product.Wimpys has about 5 to 6 different product lines namely: • BurgersSaurabhGupta 12ICFAI BUSINESS SCHOOL HYDERABAD
  13. 13. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIA • Pizzas • Salads • Milkshakes/Beverages • Ice Creams • Assorted Treats.Following are the range of items at the Wimpys restaurant: Burgers Pizzas Ice Creams Additional(in Variety) (in variety) (in variety) 14 8 17 3 Available in two Includes Nuggets and sizes friesIts unique selling proposition lies in its product line. Aim is to offer increasingchoice and variety of items to its consumers.However, when Wimpys had started its operations it had about 3 to 4 productLines. Since the past five years its product line has remained same till date.Ofcourse changes are constantly being made to offer new variety in each of itsproduct lines.For example: Consider Burgers, when its started it had about six variety ofburgers to offer. Over a period of time it has included new varieties almostSaurabhGupta 13ICFAI BUSINESS SCHOOL HYDERABAD
  14. 14. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIAevery year. This year it has included chicken liliput burger and veggie Lilliputburger that is especially for the kids.Under its assorted treat line, which includes French fries, fish N chips,Nuggets etc. has also been modified from time to time. Since the past two tothree years it has started including new varieties to it almost every year. Themost recent additions have been veggie nuggets and chicken drumsticks.Wimpys also provides with economical meals, which include a coke, burger,french fries or any combination of these three. It keeps on coming with newmeals every six months. The most recent meals that it had in its menu werethe Navratra meals, which had a combination of pizza and coke; vegburger,Frenchfries and coke; and salad, Frenchfries and coke.Before the Navratra meals it had come up with Liliput Meals (especially for thekids) i.e., Veggie Lilliput burger meal, Chicken Lilliput burger meal etc.(Wimpys has always kept the kids into consideration for deciding its productlines).Although the restaurant did have pizzas in its menu earlier i.e., about a yearback but since the past 8 months the restaurant has come up with a newvariety and quality of pizzas. The product line of pizzas that it had in its menuearlier was not showing good results i.e., there were not much of sale ofpizzas in the restaurant. But since the modified version has been introduced,sales have definitely gone up.SaurabhGupta 14ICFAI BUSINESS SCHOOL HYDERABAD
  15. 15. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIAWimpy even has this special Breakfast Meal only at its restaurant inConnaught Place. The meal is quite different from its rest of the meals. It hasEggs in a Bun, Doughnuts, Orange juice, Tea/Coffee. It is targeted to thetourists, executives and the Shoppers in C.P.The customer now has more variety available to him and he has a wide rangeof items available to choose from. All this has been done by Wimpys tochange its image, keeping the competition in mind.Pricing StrategiesAll the items at Wimpys have been competitively priced.The price of pizzas is far lower than other outlets, such as Dominos, Pizza Hutetc. Its cheese pizza (regular) is priced at Rs. 45 compared to Pizza hut’sregular cheese pizza for Rs. 65. Even the Burgers are reasonably priced. Min.availability is at Rs. 14 for Veggie Lilliput burger and maximum at Rs. 48 forGrilled Chicken burger.Even for Pizzas min price is about Rs. 45 for a regular cheese pizza and maxat Rs. 75 for Half non-veg Half veg. This price is quite reasonable consideringthe prices of regular pizzas at Dominos where they go as high as Rs. 150-200for a regular pizza.The prices are so designed to suit everyone’s pocket, such that an averagemiddle class person can afford a meal at Wimpy’s.SaurabhGupta 15ICFAI BUSINESS SCHOOL HYDERABAD
  16. 16. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIAPromotion StrategiesSince its inception is 1989 Wimpys has promoted its restaurant mainly viainstore posters and danglers or through outstore posters. However itspromotional strategies have under gone a change in these nine yearsconsidering the competition coming from everywhere.Its promotional strategy has been to emphasize and publicize the concept ofvariety, reach out to people and convince them to eat at Wimpy’s. In brief, theaim is to reach the right target and do it effectively.The media most commonly used by Wimpy’s can be classified as: Instore Out storeUse of posters and Danglers. Use of Flyer’s, which are graduallyInforming about latest meal combos coming down. Emphasis now is onand latest additions in the menu. newspapers and press ads. Recently there is this Wimpy’s Graffiti Show that is being aired on Times FM. Use of T.V under consideration.Coca-Cola also assists in promoting and marketing of Wimpy’s restaurants.The posters and dangers used for advertising are designed via free lancers.Wimpy’s provides sales promotion schemes through the economical mealsthat its offers. Recently it has started giving coupons in great savers magazineSaurabhGupta 16ICFAI BUSINESS SCHOOL HYDERABAD
  17. 17. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIAof September issue, whereby on order of Rs. 200-299 you get veggie nuggets/Chicken nuggets free. Also, on order of Rs. 300 or above you can have anyone of the salads free.During the past two years, the idea has been to improve the image of therestaurants. This is being done through improving the menu boards and thenameplates. Also the mascot Mr. Wimpy is being promoted more and more intheir posters.Since the past four to five years. Wimpy’s has always been coming up withspecial menus, contests, gift schemes etc., in the festive season such asNavratras, Diwali and Christmas. It comes up with special menus and mealsduring Nawratras, such that people can still come and have meals during thattime.Aim during the past two years has been to change the image and makeWimpy’s more and more visible to the people.SaurabhGupta 17ICFAI BUSINESS SCHOOL HYDERABAD
  18. 18. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIADistribution StrategiesWimpy’s started with just one outlet in Delhi in 1989.In 1993 it had about 3 outlets in Delhi. By 1998 it has about 10 outlets in totalin the city with one outlet in each of the cities i.e., Jalhandar, Ludhiana andBangalore. The opening of its outlet at New Delhi Railway Station in 1997 hada effect on other outlets around that area.In order to expand its distribution network it has come up with a schemewhereby an individual can franchise with Wimpy’s. Wimpy’s gives him the rightto use the brand name, but he has to have resources i.e., land and capital tobecome a franchisee with Wimpys. The restaurant manager and the operationstaff would go from the company itself.SaurabhGupta 18ICFAI BUSINESS SCHOOL HYDERABAD
  19. 19. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIA CUSTOMER DEMANDKnowing what factors attract a customer to eating joint is important for everyrestaurant. The factors influencing customer demand for Wimpys menu itemsare as follows:• The image of Wimpys as a burger chain and its popularity for its juicy burgers.• Wimpys is considered to be the most preferred eating-place especially by the teenagers and the youngsters. It is them who are mostly the regular customers almost at every Wimpys restaurant.• Almost every wimpy restaurant is spacious enough to attract large crowd of customers. Normally one would not have to wait for long to get a seating place at its restaurant (except during peak hours).SaurabhGupta 19ICFAI BUSINESS SCHOOL HYDERABAD
  20. 20. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIA NIRULA’SA). AN OVERVIEWHistory and BackgroundNirulas today is a well-known name in the hospitality industry.Nirula family was the first to offer western style fast food in India. It came toDelhi in 1928. They realized the paucity of good eating places in and aroundNew Delhi, began ‘Hotel India’ in 1934 with 12 rooms and a restaurant with abar license. They also specialized in catering to parties and soon Nirulascatering became famous.Meanwhile, Nirula’s had set up the ‘India Coffee Shop’ in Janpath on requestof the Coffee board. A few years later, the Coffee Board of India seeing thesuccess of the international decided to run the business itself.It 1939, whine the Second World war had started, Nirulas rented more spacein Connaught Circus (what is currently the ground floor of Nirulas, L-block) andopened a Restaurant with music and dancing serving a six course dinner foronly Rs. 1. The restaurant proved to be popular with both Indian and foreignguests. It also started serving Indian food and introduced ballroom dancingand cabaret. However, business fluctuated widely since it was dependent onthe quality and reputation of those evening’s performers. Hence, in 1950 therestaurant with the cabaret was given up in favour of the Brasserie.SaurabhGupta 20ICFAI BUSINESS SCHOOL HYDERABAD
  21. 21. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIAThe Brasserie was a popular self-service restaurant serving beer and liquorwith a limited menu of Indian and Western food. The Brasserie gave way tothe ‘Cafeteria’; the first of its kind in India with a variety of Dishes and theguests could help themselves to whatever they fancied.Before 1947, Nirulas had also opened the first fruit preservation unit in Delhi.The jams and squash and other preserves were marketed under the name ofNirula’s and had an all India distribution. With the partition of India in 1947, thesupply of raw material was disrupted and this unit was stopped.In 1950, Nirulas started the ‘Chinese Room’ which was the first restaurant ofits kind in India. Nirulas created history by being the first Indians of non-Chinese origin to have a Chinese food restaurant in India.In 1954, Nirulas were the first ones to introduce espresso coffee in India.Gaggia, the inceptors of espresso coffee machines gave Nirula’s soledistribution rights for their machines and Nirula’s sold these to the luxuryhotels and first class restaurants. Nirula’s store was opened in the 1950’s witha section for cold meat and delicatessen products and a separate section forbakery and confectionery produce.Nirulas Hotel was started in 1958 and was the first modern 3-star hotel inIndia. In 1960 two specialty restaurants were opened. La Bohame was amodern restaurant where tea, coffee, snacks and meals were very popular. Itwas the most popular restaurant of its time in India. Gufa was an IndianSaurabhGupta 21ICFAI BUSINESS SCHOOL HYDERABAD
  22. 22. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIArestaurant with Indian style seating and an all silver thali service in a romanticatmosphere.The Pastry shop was independently introduced in 1972 and did externally well.The opening of the Snack bar in 1972 and Hot Shoppe in 1977 again venturedinto the quick service food business, which was instant success. The first IceCream Parlor in India was started in 1978. Potpourri restaurant with the firstsalad bar in India and the Pegasus Bar were started in 1979. All of these existtill today.The Expansion PlanIt was only by early 80’s that Nirulas decided to expand itself. It’s firstrestaurant outside Connaught Place opened at Vasant Vihar in 1980 and soonfollowed by Chanakya (1981) and Defense Colony (1986).In 1985 the Central Kitchen, comprising of the first section bulk kitchen, IceCream section and the bakery section was opened at Okhla, thus enablingNirulas to expand faster.Also in 1985, Nirulas opened their first restaurant outside India in Katmandu,Nepal. Production facilities were also set up. This was followed by another inKatmandu in 1986 and one in Pokhra, June 1993.Mean while Nirula’s also took over the management of restaurants at Tej’s(Nov. 1985) Karol Bagh (March 1986), New Friends Colony (April 1988),SaurabhGupta 22ICFAI BUSINESS SCHOOL HYDERABAD
  23. 23. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIABungalow Road (Oct. 1990), East of Kailash (Aug 1994) Gurgaon (Jan 1998)and Faridabad (Feb 1998).Nirulas’ also set up a unit in Noida, a suburb of Delhi. This unit started with arestaurant in Jan. 1987 and was soon extended to also include a Hotel (March1991) the first of its kind in India offering the most modern and attractivefacilities at very reasonable prices.It also started catering services for the Railways in July 1993 by providing foodon the August Kranti Express from Delhi to Bombay.In 1994, a Food Delivery Service was started at L-block, Chanakya andDefence Colony and was soon extended to all the units. Nirula’s was the firstto introduce in the country services on such a large scale.In Jan. 1996, a restaurant complex with a large family style restaurant, PastryShop and a Potpourri restaurant was commissioned in Preet Vihar. An"“express” Restaurant where the thrust is on take away and delivery servicewas opened for the first time at Vasant Kunj in March 1996. Another outlet atBawa Potterries Complex at Vasant Kunj opened in Aug 1996. Secondexpress restaurant was opened at Rajindra Place in 1997. Two restaurantswere opened in Haryana in quick succession – in Gurgaon in 1998 andFaridabad 1998.A new restaurant at Vikaspuri is being completed and will open soon.Negotiations are in progress for opening more Hotels and restaurants in andSaurabhGupta 23ICFAI BUSINESS SCHOOL HYDERABAD
  24. 24. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIAaround Delhi and in major metro cities in Northern India. The company evenplans on opening its outlets in Singapore and in South East Asia.Besides opening new outlets to cater to the ever-expanding market, Nirulashave always believed in expansion and improvement of its existing facilities.It has always welcomed other restaurants stating as they assist in developingthe overall business. Even though a number of new restaurants have startedNirulas’ is still the most popular chain of restaurants with among the highestsales per square foot. They continue to experiment, introduce new items andcontinue to give the citizens of Delhi and tourists what they desire-excellentquality food at a reasonable economical price in pleasant surroundings andsuch a variety that every one in the family feels catered to – ‘Fun Foods for theWhole family’. Nirulas stands for Quality, Service Cleanliness and value formoney.B. MARKETING FUNCTIONSIn early 80’s when Nirulas started expanding its operations, it positioned as afamily style restaurant for the kids and the entire family.To target the family, the chain has simultaneously focused on the Child whowill get the rest in. People between the age group of 8-80 have been the targetaudience. It is ideally for the kids and the elders.Nirulas marketing strategy rests in the adaptation of the fast food concept tothe Indian situation.SaurabhGupta 24ICFAI BUSINESS SCHOOL HYDERABAD
  25. 25. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIANirulas in order to provide products at best quality has a single central kitchenthat caters to all its outlets in Delhi.Keeping marketing strategy in mind details of the marketing mix are explainedbelow:Product Based StrategiesThe menu at every Nirulas restaurant is designed keeping in view the tastesthat appeal to the average urban resident. The product line, which everyNirulas restaurant has, whether inside or outside Delhi can be categorizedinto. : • Burgers • Pizzas • Foot longs • Ice Creams • Beverages / Shakes • Hot Numbers.At some of its restaurants keeping in mind the local tastes it extends itsproduct line to: • South IndianSaurabhGupta 25ICFAI BUSINESS SCHOOL HYDERABAD
  26. 26. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIA • Tandoori N Curries.Following are the range of items available at any Nirulas restaurant: Burgers Pizzas Ice Creams Additional (in variety) (in variety) (in variety) (in variety) 15 12 21 5Served as meal Available in three Includes tandooricombos too with sizes items, footlongs, fries and coke hot nos. etc.Nirulas has always designed the products keeping local tastes in mind. Itkeeps on adding new varieties to its product line every now and then. Theemphasis here is more on indianised food and considering Indian tastes andconsumer into account the products are designed and modified.Nirulas expanded its menu including Tandoori items, South Indian food etc.,during early 90’s and this definitely helped the restaurant in increasing itsclientage.Nirulas keeps on coming up with desi-style burgers, the most recent additionin the burger category have been the channa Buger, Bhaji Burger andomelette burger.SaurabhGupta 26ICFAI BUSINESS SCHOOL HYDERABAD
  27. 27. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIAPrior to these Nirulas had added the Panner Tikka Burger and Chicken TikkaBurger to its menu. The rest of the variety has remained more or less thesame over the past many years.Due to the inclusion of the above few items in the list, Nirulas has re-inventeditself. Vegetarian customers are being offered with separate exclusive itemsand non-vegetarian ones are offered similar exclusive items.Nirulas has constantly changed the menu as and when consumer preferenceshave changed. It is the only serious restaurant chain offering a complete mealwith wide variety.Pricing StrategiesInspire of Nirulas having a monopoly situation for decades with its brand ofrestauranting, it has always been cautious about the way in which it hasincreased prices.Its strategy is to rely on high volumes and low margins.Nirulas has never relied on competition to price its products. The items on themenu are such, that they can suit every pocket. All kind of people from allstrata visits the restaurant.It has a burger, which is max for Rs. 71 and min at Rs. 16. Its Pizzas rangefrom Rs. 63 to Rs. 96 for a regular size. These prices are for lower than thepizza chains that have entered the country.SaurabhGupta 27ICFAI BUSINESS SCHOOL HYDERABAD
  28. 28. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIAPromotional StrategiesThe ad line for Nirulas goes something like:“Fun foods for the entire family”.This serves the purpose of positioning the restaurant as a family, eating-place.Promotional material used by the restaurant mostly includes distribution offlyers, menu cards, and through newspapers.It has its own in house design department and creative department, whichdesigns posters and banners for advertising. It is more of in – housepromotions.Newspaper releases that come out every now and then of Nirulas are handledby its public relations firm.Children have always been the prime target group with Nirulas since they playa key role in deciding where the family should eat. There is constantpromotional activity carried on for the kids by the restaurant.There is a birthday club membership for children below 13 years of age, whoreceive a birthday card and a free scoop of ice cream to celebrate theoccasion.During April, to coincide with the annual exams, there is Nirulas Scholar’saward. School children scoring more than 90 per cent troop in with their reportSaurabhGupta 28ICFAI BUSINESS SCHOOL HYDERABAD
  29. 29. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIAcard to claim a Triple Sunday free. Nirulas scholars are sent best of luck cardsin March.In 1991 when this scheme was introduced there were only 600 entrees. Themembers grew to 3000 in 1993 to 15,000 in 1994. By 1998 the figure hasincreased to 90,000. Over 90,000 kids come do Nirulas for a free sundae.Nirulas also organizes for birthday parties for the kids at some of itsrestaurants.Any festival that comes, Nirulas is associated with it. During Christmas timeSanta Clans appears in all its outlets to hand out sweets to children.During Diwali it comes up with special gift packs etc.Distribution StrategiesToday Nirulas has about 25 outlets in Delhi and 3 in Nepal out of the 18outlets in Delhi 2 of the outlets are express restaurants where the thrust is ontake away and delivery service.Nirulas carefully uses its locations and also the meal timings to aim at differenttarget groups. Each of its outlets has its own personality. For example:Connaught Place has a major share of tourists or foreigners where asChanakya Puri and Defense Colony get a lot of young students.SaurabhGupta 29ICFAI BUSINESS SCHOOL HYDERABAD
  30. 30. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIAIt has carefully chosen the locations of its outlets at Vasant Kunj Leisure Bowland Destination Point Faridabad. Such places attract lots of crowd on holidaysand even on weekdays.This is a very effective distribution strategy placing yourself where opportunityexists to attract people into the restaurants.Setting up of restaurants at such places is a way to ward off competition. Aimis to move into residential location and making its outlets more accessible forits clients.Nirulas started its home delivery services in an organized manner in 1994.Looking at competition coming from the MNC’s who established themselvesas home delivery chains, Nirulas did not want to left behind. Another reasonfor starting home delivery services was the rise of the customer base.1984 – Only 22000 customers came in a day1989 – 35,000 Customers per day1994 – 44,000 Customers per day1996 – 46,000 Customers per day.By 2004, 17 Nirulas outlets had home delivery services. The companywitnessed a ten-fold increase in home delivery revenues since it started.Today, the number of outlets has gone up to 25, which are having deliveryservices.SaurabhGupta 30ICFAI BUSINESS SCHOOL HYDERABAD
  31. 31. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIA CUSTOMER DEMANDThe factors influencing customer demand for Nirula’s menu items are asfollows:• Adapting the western style fast food to Indinised tastes and standards.• Long term brand-image built by the restaurant over the past 50 years.• Nirula’s as a restaurant has it’s own image and distinction vis-a-vis other restaurants in the market. At Nirulas the customer can choose from Indian tandoori items to western style burgers and pizzas.• Nirulas restaurant has been placed at the most looked upon places. One can find a Nirulas joint at the most popular markets, cinema complexes and bowling alleys.• The restaurant has been placed as a family style restaurant in the market. Considering this the inside of the restaurant is such that there is enough place for families to come and enjoy their meal.SaurabhGupta 31ICFAI BUSINESS SCHOOL HYDERABAD
  32. 32. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIA McDONALD’SA). AN OVERVIEWHistory and BackgroundIn 1955, Ray Kroc, a 52-year old salesman of milkshake mixing machines,became interested in a string of seven restaurants owned by Richard andMaurice McDonald. These two founded the quick service restaurant industrywhen they converted their barbecue drive in with carhops into the world’s firstMcDonand’s limited menu, self-service drive-in in 1958, in California. Krocliked their fast-food restaurant concept and bought the Chain for $2.7 million.He opened his first McDonalds in Illinois in April 1955 and founded thecompany that evolved into McDonalds corporation. He decided to expand thechain by selling Franchises, and the number of restaurants grew rapidly.Worldwide OperationsThere are more than 23,000 McDonalds restaurants in III Countries (as of Jan.1998). McDonalds 1997-year end system wide sales were $ 33,368.3 billion.McDonalds is the largest and the best known global food service retailer. Itsglobal market potential is enormous seeing the member of restaurants it has.On any day McDonald’s serves less than one percent of the worldspopulation. Its outstanding brand recognition. (It is one of the most recognisedbrand all over the world), experienced management, high quality food, siteSaurabhGupta 32ICFAI BUSINESS SCHOOL HYDERABAD
  33. 33. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIAdevelopment, high quality food, site development expertise, advancedoperational systems and unique global infrastructure position it to capitalize onglobal opportunities.McDonalds Vision is to dominate the global food service industry. Globaldominance means setting the performance standard for customer satisfactionand increasing market share and profitability through successfullyimplementing convenience value and exception strategies.In order to expand its operation McDonalds goes by a simple thumbrule toestimate haw many outlets it wants: One restaurant for every 25,000 peoplewith new markets sprouting in so many parts of the would, the chain isexpanding at a breathtaking pace of one restaurant every three hours. Thiscan be known from the following: Period No. of outlets Countries SalesJan. 1997 19,400 95 $ 30 billionJan 2005 33,000 119 $ 44 billionMcDonalds franchises restaurants in many international markets, anddecisions relating to the selection of candidates are made local by themanagement in the country where the restaurant is located.SaurabhGupta 33ICFAI BUSINESS SCHOOL HYDERABAD
  34. 34. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIAMcDONALD’s IndiaA locally owned CompanyMcDonalds India is a locally owned company managed by Indians. In MumbaiAmit Jatias company, Hard castle restaurants Pvt. Ltd., owns and managesMcDonalds restaurants. In Delhi, McDonalds restaurants are owned andmanaged by Vikram Bakshis Connaught Plaza restaurants Pvt. Ltd. Boththese individuals are responsible for the running of McDonalds India.Local Sourcing is Key for Truly Indian ProductsAround the world, McDonald’s traditionally operates with local partners or localmanagement. In India too, McDonand’s purchases from local suppliers.McDonald’s constructs its restaurants using local architects, contractors,labour and - where possible - local materials. McDonald’s hires localpersonnel for all positions within the restaurants and contributes a portion ofits success to communities in the form of municipal taxes and reinvestment. Its98% of the inputs are obtained domestically.SaurabhGupta 34ICFAI BUSINESS SCHOOL HYDERABAD
  35. 35. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIAMcDonald’s sources food products from local companies. mutton patties aresupplied by Al-Kabeer, Hyderabad, Andhra Pradesh; fresh lettuce comes fromPune, Ooty, Maharashtra and Dehradun; cheese from Dynamix Dairies,Baramati, Maharashtra; sesame seed buns and sauces from CremicaIndustries Phillaur, Punjab, and pickles from VST Natural Foods, Hyderabad,Andhra Pradesh.Setting Up of an Extensive Food ChainFor three years before the opening of the first McDonald’s restaurant in India,McDonald’s and its international supplier partners worked together with localIndian companies to develop products that meet McDonald’s vigorous qualitystandards. These standards also strictly adhere to Indian Governmentregulation on food, health and hygiene. Part of this development involves thetransfer of state-of-the-art food processing technology which has enabledIndian business to grow by improving their ability to compete in today’sinternational markets.For instance, Cremica Industries worked with another McDonald’s supplierfrom Europe to develop technology and expertise which allowed Cremica toexpand it business from baking to also providing breading and batters toMcDonand’s Indian and other companies. Another benefit is expertise in theareas of agriculture that allowed McDonald’s and its suppliers to work withfarmers in Ooty, Pune and Dehradun and other regions to cultivate highquality lettuce. This includes sharing advanced agricultural technology andSaurabhGupta 35ICFAI BUSINESS SCHOOL HYDERABAD
  36. 36. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIAexpertise like utilization of drip irrigation systems which reduce overall waterconsumption and agricultural management practices which result in greateryields.In some cases, these Indian suppliers had the technology - but no market forthe products they produced. For example, Dynamix Dairies -- through itsrelationship with McDonald’s was introduced to a large customer of milkcasein and other milk derivatives. The two companies entered into a businessrelationship resulting in an initial export order of approximately US $ 12 millionper year - with the potential to increase. McDonald’s local supply networksthrough Radhakrishna Foodland, to get products from the various suppliers torestaurants in Delhi and Mumbai.Respect for the Indian Customer and CultureMcDonald’s worldwide is well known for the high degree of respect to the localculture. McDonald’s has developed a menu especially for India with vegetarianselections to suit Indian tastes and culture. Keeping in line with thisMcDonald’s does not offer any beef or pork items in India. McDonald’s hasalso re-engineered its operations to address the special requirements of avegetarian menu. Vegetable products are prepared separately, usingdedicated equipment and utensils. This separation of vegetarian and non-vegetarian food products is maintained throughout the various stages ofprocurement, cooking and serving.SaurabhGupta 36ICFAI BUSINESS SCHOOL HYDERABAD
  37. 37. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIAAn Employer of OpportunityMcDonald’s India is an employer of opportunity, providing quality employmentand long-term careers to the Indian people. the average McDonald’srestaurant employs more than 100 people in 25 different positions - fromcashier to restaurant manager. McDonald’s world-class training inputs to itsemployee could be seen in the present close to 10000 employees currently inMumbai and Delhi.Community PartnershipMcDonald’s believes in giving back to the communities it serves. WhereverMcDonald’s goes it becomes a part of the community it operates in andcontributes towards the development of the locality. For example, McDonald’shas introduced the concept of ‘Litter Patrol’ - McDondld’s employees goaround the immediate vicinity of the restaurant every day, packing up garbageleft behind not only by customers from McDonald’s restaurants but also byother visitors to the area. The result is a cleaner neighborhood.To commemorate 50 years of Indian independence, on 15 August 1997,McDonald’s Mumbai organized a ‘No Garbage Drive’, in association with the‘Brihan Mumbai Municipal Corporation’ and five schools in Bandra.Inaugurated by the Municipal Commissioner, this was in support of BMCs‘Zero Garbage, initiative. Other community activities undertaken byMcDonald’s in India include the adoption of local public parks for restorationand beautification, thereby providing a play area for children. In fact in Delhi,SaurabhGupta 37ICFAI BUSINESS SCHOOL HYDERABAD
  38. 38. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIAMcDonald’s has even addressed the security issues relevant to a particularresidential colony.Charities, especially those benefiting children, are often the recipients ofMcDonald’s support - either through the use of the restaurants for meetings orfor fund-raising activities. McDonald’s International charitable foundation,Ronald McDonald House Charities supports charities around the world. In fact,in 1993, RMHC donated to the Indian Prime Minister’s Relief Fund followingthe devastating earthquake in Maharashtra.Quality, Service, Cleanliness and ValueThe McDonald’s philosophy of QSC & V is the guiding force behind its serviceto the customers.McDonald’s India serves only the highest quality products. All McDonald’ssuppliers adhere to Indian government regulations on food, health andhygiene while continuously maintaining McDonald’s own recognizedstandards. All McDonald’s products are prepared using the most current state-of-the-art cooking equipment to ensure quality and safety.At McDonald’s the customer always comes first. McDonald’s India providesfast, friendly service - the hallmark of McDonald’s that sets its restaurantsapart from others.McDonald’s restaurants provide a clean, comfortable environment especiallysuited for families. This is achieved through McDonald’s stringent cleaningSaurabhGupta 38ICFAI BUSINESS SCHOOL HYDERABAD
  39. 39. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIAstandards, carefully adhered to.McDonald’s menu is priced at a value that the largest segment of Indianconsumers can afford. McDonald’s does not sacrifice quality for price - ratherMcDonald’s leverages economies of scale to minimize costs while maximizingvalue to customers.McDonalds has a 20-year profitability plan for India and it intends having atleast 50 restaurants here by the year 2000. The company has alreadyinvested Rs. 50 crore in its Indian operations, and each of the two joint venturepartners has invested about Rs. 17.56 crore.B). MARKETING FUNCTIONSMc Donalds started its operations in India in October 1996 and by July 1998 ithas served about 10 million customers in the country.Mc Donalds marketing philosophy is captured in its motto of “Q.S.C.V.”, whichis the guiding force behind its service to the customers.Mc Donalds India serves only the highest QUALITY products. All Mc Donaldssuppliers adhere to Indian government regulations on food, health andhygiene while maintaining Mc Donalds own recognised standards. All itsproducts are prepared using the most current, state of the art cookingequipment to ensure quality and safety.SaurabhGupta 39ICFAI BUSINESS SCHOOL HYDERABAD
  40. 40. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIAAt Mc Donalds, the customers always come first. Mc Donalds India providesfast friendly SERVICE – the hallmark of Mc Donalds that sets its restaurantsapart from others.Its restaurants provide a CLEAN, comfortable environment especially suitedfor families. This is achieved through Mc Donalds stringent cleaningstandards, carefully adhered to.Mc Donalds menu is priced at a VALUE that the largest segment of Indiancustomers can afford.It’s strategy in India is to target the plain and simple mass market. The targetconsumers for Mc Donalds are the family and the kids. Mc Donalds has beenpositioned as a “Family Restaurant”.Product Related StrategiesWorld over Mc Donalds is known for its juicy beef burgers. But in order tosettle in India the entire concept of beef burgers had to be changed. India isthe only country where Mc Donalds is offering veggie burgers and non-vegburgers without beef (uses mutton instead).This is a classic case of Product Adaptation, where Mc Donalds adapted itsproduct according to the culture and norms of the country in order to positionitself in the market.There has been other product adaptations too. Mc Donalds sells a spicierMaharaja Mac in India as its flagship product in place of the globally famed BigSaurabhGupta 40ICFAI BUSINESS SCHOOL HYDERABAD
  41. 41. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIAMac. It also has a large capacity for vegetarian burgers, the production andserving of which is separated in such a way that the customer can actually seeit.Mc Donalds product line is almost similar to other burger chains in the country. • Burgers • Desserts • Beverages/shakes • Assorted items. Burgers Pizzas Ice Creams Additional Meal(in variety) (in variety) (in variety) (in variety) Combos 12 - 2 2 (french fries and 7 veg nuggets)Product standards, packaging, quality, processing are all the same like at anyother Mc Donalds outlet in the world. The quality standards are so stringentthat nowhere, not even is its rawest state, is any of the food touched by hand.The typical burger undergoes 54 checks before it is served. The menu at McDonalds has remained more or less the same over the past 2 years except acouple of additions in the burgers variety and inclusion of couple of items inSaurabhGupta 41ICFAI BUSINESS SCHOOL HYDERABAD
  42. 42. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIAthe dessert variety.Mc Donalds even has the calorie count carefully worked out for its burgers. Aveg burger offers 418 calorie, 10 gm of protein, 22gm of fat and 48 gm ofcarbohydrate.All Mc Donald’s menu items fit into a balanced diet and it offers certain itemsthat fit well within a low fat diet (option of burger with or without cheese).Pricing StrategiesWorldwide Mc Donalds is known for its ‘Purchasing power’ pricing. The abilityto pay-of a large section of customers has been the sole criteria. This wasassessed through market research. It wanted to price its products in such away that it can even be accessible to a child. For this it examined Indianspending on snacks and other foods before setting on the prices.Price variations from 1996 to 1998 for a couple of items are as follows: Item Entry level (1996) (2005) Mc Burger Rs. 12 Rs. 20 Maharaja Mac Rs. 42 Rs. 59The company continued with the 1996 prices for about a year in order to meetits one million-target audience.SaurabhGupta 42ICFAI BUSINESS SCHOOL HYDERABAD
  43. 43. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIAOne look at the restaurant and it doesn’t seem that the prices of its productswould be this low. Reason being that Mc Donalds gets the materials (55 percent of outlets running expenses) at very cheap rates. Therefore this is one ofthe reason that Mc Donalds products are priced reasonably.It buys its supplier from 35 suppliers who sell at incredibly low prices. Productsat Mc Donalds are neither elitist in its pricing nor at the dhaba level, they areaverage in its pricing.Mc Donalds was offering a softie at a price of Rs 6/- about a year back duringthe festive season. Today this softie costs only a rupee more at Rs.7/-. Norestaurant of this caliber offers a product at this rate.Mc Donalds recently has come up with “Economeals”, in which one can affordto have a burger and coke for as little as Rs. 29/- and at max for Rs. 49/-(Instore pamphlet enclosed) Mc Donalds keeps on coming up with such mealsalmost every month such that almost anyone can afford to have a Mc Donaldsproduct.SaurabhGupta 43ICFAI BUSINESS SCHOOL HYDERABAD
  44. 44. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIAPromotional StrategiesMc Donalds ad line goes like:“I am loving it”Mc Donalds had started its promotional activity with local area banners andposters and now it has moved on to movie hall commercial. Its commercial is a60-second close up which focuses on a burger being prepared in slow motiontantalizing the audience as though it’s a strip tease.It has even started advertising through local channels such as siti cable.Mudra is the ad agency, which puts up publicity banners in Delhi and Mumbaiand takes up the local TV commercials. Newspapers such as Delhi times arealso being used for local advertising. McDonald’s plans to advertise in nationalnewspapers such as Hindustan Times and Times of India in another couple ofmonths.In addition to this Mc Donalds also has a public relation agency handling itsaccount that takes care of publicity and press releases.McDonalds keeps on coming up with sales promotion schemes every now andthen.During World Cup Soccer it came up with this soccer game for Rs.11/- withevery meal combo ordered. Since kids are the prime targets by the restaurant,SaurabhGupta 44ICFAI BUSINESS SCHOOL HYDERABAD
  45. 45. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIAit has come up with happy meals especially for the kids along which a game isfree.Also, for the kids Mc Donalds is the most happening place for birthday partieskids love the place due to all the attention and knick-knacks they areshowered with. The restaurant even has playpens displayed especially for thekids.McDonalds also comes up with special schemes during the festive seasonLast month i.e. September, during Navratras it came up with special “ShudhShakahari Meal” where a meal for two was for Rs. 99/- and a meal for fourwas for Rs. 199/- (Instore pamphlet enclosed). Another way through which McDonalds is promoting its image is via community services. There are McSermons on maintaining parks, conducting litter patrols and putting up publictrashcans.At majority of McDonald’s restaurants, the management emphasizes ondeveloping parks for the kids as a playground for them. E.g. at McDonald’sG.K. restaurant there is a playground developed for the kids in front of therestaurant. The management has put boards at these parks to put acrosscertain messages for the community as a whole, such as:“If you see someone without a smile, give them one of yours”“Children are the light of our future” etc.SaurabhGupta 45ICFAI BUSINESS SCHOOL HYDERABAD
  46. 46. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIAIn addition to all these promotional measures, McDonalds has boards put allover the roads to show directions to their restaurant. These boards are putalmost two to three kms before the location of the restaurant. This makes iteasier for the customer who is not familiar with McDonald’s restaurantlocation.Distribution StrategiesTill date Mc Donalds has 187 outlets in India out of which 56 are in Delhi andfive in Mumbai. In 1997 there were about 3 outlets in Delhi and fifty three moreoutlets have been added to the list by 1998.By the year 2000 Mc Donalds plans to have about 50 outlets in the country. AtMc Donalds, while opening a restaurant the emphasis is, to choose a sitewhereby 150-200 seating capacity can be available. This is to attract as manypeople as possible into its premises.SaurabhGupta 46ICFAI BUSINESS SCHOOL HYDERABAD
  47. 47. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIA CUSTOMER DEMANDThe factors influencing customer demand for McDonald’s menu items are asfollows:• McDonald’s worldwide is known for its quality burgers. This worldwide name for burgers has influenced the demand for it in the Indian market. This can be known from the fact that within two years it has served about 10 million customers at its restaurants.• The factor that influences customer demand for the organizations product to a great extent is the offering of highest quality product, providing services which is fast friendly and accurate, creating a restaurant atmosphere which is always clean, comfortable and ideally suited to India families and children.• McDonald’s products are offered at a value that can be affordable by the maximum number of Indian consumers.• The Chain of restaurants provide a variety of comfortable seating arrangement to accommodate different size groups of people from individuals to large families.SaurabhGupta 47ICFAI BUSINESS SCHOOL HYDERABAD
  48. 48. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIAMcDONALD’S Customer Base• In 1997, Mc Donalds 3 outlets received about 15,000 customers daily.• A Mc Donalds restaurant with about 150-200 seating capacity serves about 40,000 customers per month.• By July 1998, Mc Donalds has served 10 million customers in the country.SaurabhGupta 48ICFAI BUSINESS SCHOOL HYDERABAD
  49. 49. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIA MARKET RESEARCH(a) Research ObjectiveThe objective of conducting a market research study is to:(i) Identify the unique factors that attract people to each of the three stated restaurants.(ii) Determine the percentage wise preference for these for these restaurants.(iii) Finding out the frequency of visit at each of the stated restaurants.(b) Methodology(i) A set of attributes was generated on basis of which objective I could be determined. This would eventually determine what attributes/benefits the consumer desires. - Price - Accessibility - Quality of food - Variety - Speed of Delivery - Space - Cleanliness/hygiene - Decor(ii) Based on above attributes concepts were developed on which analysis could be made.SaurabhGupta 49ICFAI BUSINESS SCHOOL HYDERABAD
  50. 50. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIA(iii) Finally a personally administered questionnaire survey was conducted (Based on which findings have been presented).(c) Reasons for selecting the various questions(i) Question 1 & 2To determine the frequency of visit to all three fast food restaurants anddetermine the income generated approximately on basis of the expenditureincurred.(ii) Question 3Various factors being considered by respondents to select a restaurant.(iii) Question 4Evaluation of most preferred fast food restaurant on various criteria.(d) Data PreparationsA total of 20 questionnaires used to conduct the survey. In accordance withthe response drawn from the questionnaire tables and graph have beenpreparedSaurabhGupta 50ICFAI BUSINESS SCHOOL HYDERABAD
  51. 51. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIADetermination of Percentage wise Preference(Calculations shown in Appendix 1)Percentage wise preference for the three stated fast food restaurants asindicated by market research study is : Restaurants Consumer Preferences (in %) Nirulas 26 Mc Donalds 65 Wimpys 09 Wimpys 9% Nirulas 26% Mc Donalds 65%SaurabhGupta 51ICFAI BUSINESS SCHOOL HYDERABAD
  52. 52. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIA BARGRAPH INDICATING FREQUENCY OF VISIT (Computations in Appendix II)The above pie diagram shows that 26 per cent of consumers would prefergoing to Nirulas restaurant,65 per cent prefer for Mcdonalds and only 9 percent prefer a Winpy’s joint.The unique attributes which attract consumer to Nirulas that makes it stand outfrom the rest is variety, accessibility and value for money.McDonald’s and Wimpys (both foreign entrants) have a very little difference intheir preferences by the consumer.Preference for Nirulas over and above the other two states that over the pastmany decades Nirulas has maintained its brand recognition till date and it isvery much likely to continue in the future, since Nirulas being an Indiancompany knows the customer tastes and preferences better than the foreignentrants.SaurabhGupta 52ICFAI BUSINESS SCHOOL HYDERABAD
  53. 53. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIA BARGRAPH INDICATING FREQUENCY OF VISIT (Computations in Appendix II)14 Nirulas McDonalds Wimpy12 10 1010 8 8 7 6 5 5 4 4 3 2 2 1 1 1 1 1 0 0 Do not visit Occasionally Monthly Weekly More than once a w eekSaurabhGupta 53ICFAI BUSINESS SCHOOL HYDERABAD
  54. 54. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIAIdentifying Unique AttributesThe unique attributes of the three fast food joints are:Nirulas: Variety, Accessibility, value for money.Wimpys: Spacious, Quality of foodMc Donalds: Spacious, Service, hygiene, value for money. Criteria most commonly considered by respondents while selecting a fast food joint.Criteria Ranking (from 1 to 5)Quality of food - 1Cleanliness /hygiene - 2Variety - 3Speed of Delivery - 4Price - 5(Computations in Appendix III)SaurabhGupta 54ICFAI BUSINESS SCHOOL HYDERABAD
  55. 55. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIA COMPARITIVE ANALYSISA comparative analysis for the three food chains has been made on thefollowing five parameters:  Performance  Variety  Price  Accessibility  ServicePerformanceNirulas started its operations in the country as early as in 1930’s but its firstfast food restaurant came up around in 1950’s. This means that the chain isabout five decades old. Wimpys is about 8-9 years old and Mc Donalds justtwo years old.Each of these chains has its own reputation and name in the market. Nirulasbeing in the country for so long still has it’s distinguished fan following and issurviving in the market despite the coming in of the international chains suchas Mc Donalds and Wimpys. Nirulas is considered to be more of a dine–ineating-place than a fast food joint like the other two. Most of the time thecustomers coming in at Nirulas are not in a hurry to leave, they want to relaxSaurabhGupta 55ICFAI BUSINESS SCHOOL HYDERABAD
  56. 56. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIAand enjoy their meals. In contrast Mc Donalds and Wimpys are considered tobe a place to grab a bite or quick take away fast food joint. McDonald’s in USis a lunch time place from which customers keep away in the evening. Nirulason the other hand is packed after dusk with carloads of families to havedinner. Despite Mc Donalds being placed as a comfortable family-eatingrestaurant, a person would come to the restaurant to have a quick meal forlunch or dinner alone or with his family.When Wimpys came into the country in 1990, with two outlets in Delhi, Nirulashad about 11 outlets all performing well, serving a wide variety of items fromthaalis to hotdogs to pizzas. But Wimpys was not performing well except in acouple of locations such as C.P and G.K in Delhi. The worst came for Wimpyswhen Mc Donalds had itself in locations where there was already a Wimpysoutlet. Market became sluggish for Wimpys after the entry of Mc Donalds.Preference for the Mc Donalds burger increased vis-à-vis the Wimpy burgerfor quite some time (about a year). People started liking its service, quality offood, ambience etc.However, in the past six to eight months Wimpys has tried to review itsposition by offering a variety in the menu i.e. inclusion of salads, pizzas etc, tobeat competition.The trend for kids birthday parties at these restaurants which was initiated byWimpys has witnessed quite a set back from the entry of Mc Donalds. Theaudience suddenly started preferring Mc Donalds for birthday parties thanSaurabhGupta 56ICFAI BUSINESS SCHOOL HYDERABAD
  57. 57. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIAWimpys within a year of its entry. (On an average Mc Donalds hosts about fiveto six birthday parties at each week at majority of its restaurants).When Mc Donalds came up in locations where Nirulas was alreadyestablished, it affected the restaurant drastically in the initial few months. Butas and when the customers had tried the Mc Donalds product, they returnedback, happy that Nirulas offers a wider choice and tastier food.Hence, Nirulas is still performing well in the market despite the coming in ofMc Donalds and Wimpys. Wimpys however would need to re-define itsstrategy to survive since it is in for a lot of competition and as far as McDonalds is concerned, its worldwide brand recognition is enough to make itsustain in the market.VarietyThe range of items that each of these joints has can be seen in the followingtable.SaurabhGupta 57ICFAI BUSINESS SCHOOL HYDERABAD
  58. 58. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIA Name Burger Pizzas Ice Additional( includes (in (in creams assorted items) variety) Variety) (in variety)Nirulas 15 12 21 15Wimpys 14 8 17 8Mc 12 - 2 2Donalds No. of Meal CombosNirulas 15Mc Donalds 7Wimpys 4The range of items given in the above table and no. of meal combos arestandard items which the restaurant has. In addition to this Nirulas comes uppizza of the month and ice cream of the month. Wimpys comes up with newmeal combos every two months and Mc Donalds comes up with a meal comboalso almost every month.For all the product lines Nirulas takes the cake vis-à-vis other two joints. Thecustomer has a range of items to choose from at Nirulas. He is just notrestricted to a few items in the menu list. One has every thing from Indian toWestern food at most of its joints, Wimpy’s too has a variety of items in the list,SaurabhGupta 58ICFAI BUSINESS SCHOOL HYDERABAD
  59. 59. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIAbut nowhere near to what Nirulas is offering. Though McDonald’s has the leastvariety of items in its menu, it is surviving in the market because of its worldwide brand recognition. The fact that McDonald’s burger is famous all over theworld, is what that is making it sell like hot cakes in India.However if one wish to just grab a bite one could go to McDonald’s but if oneis looking for variety then Nirulas is the place to go to. From the marketresearch study conducted to know consumer preferences, Nirulas is the mostpreferred eating place and variety is one of the unique attributes for Nirulas,which attracts customers to its restaurant. In the burgers category Nirulas hasthe maximum variety, Wimpys stands second and Mc Donalds has the leastvariety. For Pizzas Nirulas has more variety than Wimpys and for ice creamstoo Nirulas has maximum variety.PriceEach of the products at Wimpys, Nirulas and Mc Donalds are priced so as tosuit everyone’s pocket.When Mc Donalds opened its first restaurant in the country it adopted a pricestrategy whereby all its products were priced lower than the domesticcounterparts. It had priced its chicken burger at Rs. 39, a rupee below Nirulasequivalent in 1996. Today, the burger is priced at Rs. 20 and Nirulas burger isfor Rs. 40.The 2005 prices of each of the three restaurants for their chickenand veg burger are:SaurabhGupta 59ICFAI BUSINESS SCHOOL HYDERABAD
  60. 60. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIA Chicken Burger (Rs.) Veg Burger (Rs)Nirulas 45 40Mc Donalds 49 20Wimpys 43 33The prices of its products are very much competitive with a rupee or two belowor above.Another interesting feature of these restaurants is the meal combos that theyserve. All the three food joints offer these meal combos with a combination ofburger + pepsi + fries. Basic idea behind this is to offer meals at a veryeconomical rate. The meal combo rates of each of the three joints can bedepicted from the following table:SaurabhGupta 60ICFAI BUSINESS SCHOOL HYDERABAD
  61. 61. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIA Veg Meal Combo Non-veg Meal Combo (Veg Burger + Coke+ (Chicken Burger + Coke + Fries) Fries)Nirulas Rs. 57 Rs. 64McDonald’s Rs. 51 Rs. 55Wimpy’s Rs. 65 Rs. 75Again for these meal combinations too the prices are competitive for all thethree restaurants. Nirulas offers these meals at the most economical ratescompared to McDonalds & Wimpy’s.However, from the market research study conducted price is considered to bethe fifth most important variable while selecting a fast food joint. The emphasisis more on quality of food, cleanliness, variety and speed of delivery.Therefore price becomes an in significant characteristic to the extent that theproduct is affordable by the consumer.AccessibilityEvery restaurant has to be placed at the right location such that it attracts themaximum number of customer into its premises. All the three restaurants inthe city are located at the most frequently visited places by the customer.SaurabhGupta 61ICFAI BUSINESS SCHOOL HYDERABAD
  62. 62. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIANirulas started with its expansion plan by opening a joint in C.P. (the mostfrequently visited place in the city). Soon more and more joints followed and allof them are located at either the most popular markets in the city or cinemacomplexes or bowling alleys. This way anybody going for shopping, watchinga movie or just playing some games doesn’t have to go to another part of thecity to have meals. Wimpy;s too opened its to first restaurant in the city atC.P., to be accessible to the tourists, shoppers and executives in that area.McDonald’s opened its first restaurant in Vasant Vihar Complex to beaccessible to the movie watcher’s coming there.How ever, Nirulas has an added advantage in terms of accessibility vis-à-visthe other two joints due to its home delivery services. Although the servicesare restricted to the locality where the restaurant exists, still it has anadvantage because the customer if he does not feel like going to therestaurant and have a meal he can still consider it if the home deliveryservices are made available. Amongst the three restaurants Nirulas has themaximum no. of outlets in and around Delhi. This is mainly due to amount oftime for which it has been into the business.However, all the three restaurant are located at the most frequently visitedplaces by the people such as shopping areas, cinema halls, bowling alleysetc.SaurabhGupta 62ICFAI BUSINESS SCHOOL HYDERABAD
  63. 63. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIAServiceMcDonald’s takes the share on this attribute for providing the customer withfast and friendly services.At Mc Donalds you get your order usually within 60 to 90 seconds from thetime it is placed. Providing the customer with fast and friendly services isunder the philosophy of McDonalds. This is one big advantage Mc Donaldshas over Wimpys and Nirulas. Even at Wimpys you get your order betweentwo the three min. but this is followed at only few of the restaurants. It is not astandard rule everywhere, but at Mc Donalds it is at every restaurant.On this attribute, Nirulas has a disadvantage. Once an order is placed itnormally takes about 10 to 15 min. to get the order. This is probably becauseof the fact that the kind of food served and the production facilities used byNirulas differs from the production facilities used by McDonald’s and Wimpys.Mcdonald’s and Wimpys have an assembly line approach to fast food where acertain number of orders are already prepared/cooked, the idea is that assoon as the payment is made at one counter, the food can be picked from thenext almost instantly. On the other hand at Nirulas the order is dealt with afterit has been placed. But whatever may be the case, provision of fast andfriendly services to the customer is very important for any fast food restaurant.In the market research study services is the unique factor for McDonald’s thatattracts the customer to its restaurant. The customer prefers being serviced bya friendly countrer assistant than someone who is arrogant and leastinterested in entertaining the customer properly.SaurabhGupta 63ICFAI BUSINESS SCHOOL HYDERABAD
  64. 64. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIAThe above analysis can be summarized in the following chart: Variety Service Ambience Price Accessibility Taste of Food NIRULAS Has 15 types of Takes about Not too Moderately Located at the Spicy Burgers, 12 10-15 min. for Spacious Expensive most visited types of Pizzas order to arrive places & 21 types of Ice-Creams to choose from WIMPY’S 14 types of Take about 5 to Spacious Expensive Located only at Not too spicy burgers, 8 6 min certain certain major types of Pizzas joints & 60-90 markets & 17 types of sec. in another Ice-creams to choose fromMCDONALD’S 12 types of Average Very Spacious Affordable Located only at Not at all spicy burgers, no McDonald’s certain major Pizzas, 2 types restaurant markets of Ice-creams serves in about to choose 60-90 sec.SaurabhGupta 64ICFAI BUSINESS SCHOOL HYDERABAD
  65. 65. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIA SWOT ANALYSISSWOT Analysis is an overall evaluation of the previous analysis and themarketing strategy of the organization in terms of its strengths andweaknesses of the unit, the opportunities available to it and the threatsposed by the external environment.The strengths, weaknesses, opportunities and threats faced by each thethree restaurants are presented individually.McDONALDSStrengths• Mc Donalds serves its customers with high quality products. There are extensive quality tests at the supplier and all products are examined again in the restaurant to ensure that they are of highest quality possible.• Mc Donalds provides fast, friendly service. Any customer visiting Mc Donalds is usually served within 60 seconds.• Mc Donalds menu is priced in such a way that the largest segment of Indian consumers can afford. It has a wide variety of products at different prices to be affordable to as many as possible.• Mc Donalds is an active participant in community services.SaurabhGupta 65ICFAI BUSINESS SCHOOL HYDERABAD
  66. 66. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIAWeaknesses• Mc Donalds has limited range of items in its menu. However, to get a item included in the menu approval has to be made from the high tech kitchens at Mc Donalds headquarters in suburban Chicago.• In India burgers are a long way from becoming the common man’s food, having fast food is considered to be another option for dining out, unlike other countries.Opportunities• Mc Donalds can develop two regional training colleges in India, one each in Delhi and Mumbai. This can save the expense of the organization is sending its management team and crewmembers to outside countries like Indonesia and America.• Mc Donalds expects to expand its chain in the coming years. It plans to open about 50 restaurants by the year 2000. This can have the opportunity to serve and employ more people.Threats• Mc Donalds faces tough competition from other food chains in the country both international i.e. Kentucky Fried Chicken, Wimpys and Pizza hut and domestic i.e. Nirulas.SaurabhGupta 66ICFAI BUSINESS SCHOOL HYDERABAD
  67. 67. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIA• The decision taken by Mc Donalds India to serve ‘Shudh Shakhari” meals at its restaurants can risk the global American image of Mc Donalds.NIRULASStrengths• The consumer has a wide variety of items to choose from at Nirulas (Both Indian and Western). These items are constantly modified keeping the consumer preferences in mind.• Nirulas brand loyalty has not changed (at least till now) despite the coming in of the MNC’s.• Home delivery services started by the restaurant have improved its customer base. This would prove to be an added advantage in the long run.SaurabhGupta 67ICFAI BUSINESS SCHOOL HYDERABAD
  68. 68. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIAWeaknesses• The restaurant does not have stringent cleanliness/hygiene standards.• The restaurant does not provide with fast and friendly service. At times it takes about 30 min for a meal to be served.Opportunity• The home delivery services started by the restaurant can be expanded further by introducing it even at those joints where is has not started. This would help the restaurant to expand its customer base and serve more clients.• The opening of Nirulas restaurants at places like “destination point” and “leisure bowl” has tremendous opportunity for serving its clientele.Threats• Nirulas mainly faces competition from international fast food chains that have established themselves in the country about two to three years back such as Mc Donalds, Pizza Hut, Dominos, KFC etc.• The international food chains that are opening their outlets in the country might give attractive offers to its employees. Hence there could be a problem in keeping its employed workforce.SaurabhGupta 68ICFAI BUSINESS SCHOOL HYDERABAD
  69. 69. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIAWIMPYSStrengths• Wimpys serves its customers with a wide variety of items. The consumer has a list of items to choose from the menu.• The crewmembers at the restaurant are friendly and meals are served in about 5 to 7 minutes from the time of its order. At certain restaurants meals are even served immediately after the order is placed.• The restaurant is a clean and spacious enough to have a comfortable meal.Weaknesses• Does not adhere to strict service standards at all its restaurants in a similar way. If a meal is provided at one restaurant in 60-90 seconds, it should be provided at the second restaurant in the same time limit.Opportunity• With the coming up of a modified menu and changing the image of the restaurant during the past months, opportunity does exist for Wimpys to make itself visible to the customers. It plans to go on these lines for some more time such that its customer base can be improved.• Opening of its restaurant at New Delhi Railway Station has improved its clientele at the nearby restaurants around that area.SaurabhGupta 69ICFAI BUSINESS SCHOOL HYDERABAD
  70. 70. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIAThreatCompetition exists for Wimpys both from foreign and Indian food Chainsi.e. Mc Donalds, Pizza hut, Nirulas etc. It is going to face problems incompeting with international burger chains come into the market and otherscoming into the market.SaurabhGupta 70ICFAI BUSINESS SCHOOL HYDERABAD
  71. 71. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIA LIMITATIONSThere are following drawbacks in the findings:• Sales figures (current and past) could not be made available for any of the three restaurants.• Distribution strategies of Mc Donalds not upto the mark.• Customer base figures not available for Wimpys.• Organisation structure for McDonald’s could not be made available.SaurabhGupta 71ICFAI BUSINESS SCHOOL HYDERABAD
  72. 72. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIA CONCLUSIONS AND RECOMMENDATIONSCONCLUSIONSIndian food market has witnessed several entrants into the country over thepast few years. Each of the established food chains and the ones enteringthe market pose a threat to each other. In the food market each restaurantfaces competition from 1000 other restaurants, it could be a 5-starrestaurant or a roadside dhaba. In order to prove itself, the restaurant hasto have a well-defined marketing strategy and famous brand recognition tosurvive in the market.The three fast food chains whose marketing strategies have beencompared and analyzed also need to look on their marketing strategies todo more than just survive in the market (Certain recommendations havebeen put forth in the coming pages).The attractiveness of the three restaurant chains in the fast food marketcan be judged from the following factors:• Existing CompetitionThe Indian food market today has many established global chains thathave opened their restaurants at major cities in the country. It is only thoserestaurants who have built their image over many years in the country i.e.,Nirulas and world famous brands such as McDonald’s are the ones tosustain themselves in the market. Any other restaurant below this caliberSaurabhGupta 72ICFAI BUSINESS SCHOOL HYDERABAD
  73. 73. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIAwould not have the power to fight these joints. Nirulas has the power tofight competition because it is not identical to the MNC chains and has notduplicated their policies. Also as long as it continues to deliver value to itscustomers it is unlikely to feel the heat of competition. McDonald’s howeveris new to the market but in a short period of time it has built a place foritself in the market by reaching the maximum number of audience in almostall income groups. Wimpy’s however will have problems competing with themultinational burger chains come into the market.• Substitutes AvailableThere are end numbers of substitutes available to the customer for fastfood in the market. The customer can choose from traditional Indian cuisineto specialty cuisine such as Chinese, Italian, Thai etc. For the three fastfood joints there must be more than a thousand restaurants to choose fromas substitutes. Even Wimpy’s burger could be a substitute for Nirulas Pizzaor vice versa. It all depends on the choice of the customer of what he wantsto have.SaurabhGupta 73ICFAI BUSINESS SCHOOL HYDERABAD
  74. 74. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIA• Likely New CompetitionLooking at the changing lifestyles and the disposable income of the middleclass increasing, the food market has enormous potential. Wimpy’sdefinitely will have problems in the future if new multinational burger chainsenter into the market. With this its market share will fall and it could evenbecome a non-player in the near future. McDonald’s with its “purchasingpower pricing” policy however has dominated the middle class segment inthe market. Until and unless some chain with the same policy attacks themarket, McDonald’s does not have any threat from new burger chainsentering the market. For Nirulas however it is the variety and the locationfactor, which can save the chain from new competition.SaurabhGupta 74ICFAI BUSINESS SCHOOL HYDERABAD
  75. 75. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIA RECOMMENDATIONSFor the purpose of growth of each of the thee fast food restaurants i.e.,Wimpy’s, Nirula’s and McDonald’s certain recommendation have beengiven below:McDONALD’S• Variety: Mc Donalds should start considering new additions to its menu looking at the expansion plan the company has lined up for India, it cannot do much until and unless it makes new additions to the menu.• Being an international chain, there is scope for drive in restaurants in certain joints of Mc Donalds. The new outlets, which the company plans to come up with, this would be an excellent way of introducing something new in the country.WIMPYS• Accessibility: Wimpys could come up with a restaurant at the International Airport/Domestic airport considering the success of its NDR station joint.• Home delivery services could also improve its clientele.SaurabhGupta 75ICFAI BUSINESS SCHOOL HYDERABAD
  76. 76. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIA• Compared to the items of McDonalds, the masses do not derive value for money for certain items and hence its price should be reduced atleast marginally. If done in places where both are located, more income could generated by Wimpy’sNIRULAS• Accessibility: Nirulas should look at more and more places like “Destination Point” and “Leisure bowl” to expand its chain of outlets.• Standard of hygiene: People of India are becoming more hygiene conscious. Therefore the management needs to become more hygiene conscious. The restaurant should start providing with disposable spoons, plates etc., Mineral water should also be provided free of cost.• Décor: Any new restaurant that Nirulas plans to come up with should be spacious, vibrant and give a pleasant look.• Services: Staff needs to be more efficient and friendly.• Other than the variety provided by Nirulas a low calorie diet could also be added to its menu. This would attract health conscious people into the restaurant thus improving its customer base.SaurabhGupta 76ICFAI BUSINESS SCHOOL HYDERABAD
  77. 77. COMPARITIVE ANALYSIS OF MAJOR FAST FOOD JOINTS IN INDIA• The company’s plan of opening up of outlets in West and South East Asia should be materialized as soon as possible as this would affect the image of the restaurant nationally.Common Recommendations for all three : Overnight services could be started by a few joints of Nirulas , Wimpy’s and McDonald’s. Since overnight services are there at McDonald’s restaurants in certain parts of the world, it could start these services in India too. However these restaurants can quote extra charges for their service after 12’O clock midnight.SaurabhGupta 77ICFAI BUSINESS SCHOOL HYDERABAD

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