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WELL KNOWN US FAST FOOD BRANDS IN INDIA
IMPACT ON INDIAN CONSUMERS
ASAD HOOSAIN
MBA-13-007
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INTRODUCTION
• Huge market share
• High employment rate.(10 million jobs across the world)
• High growth rate.(India 40%,Globally 4.8%)
• Big business in India. (Rs.7750 cr.)
• Positive growth in future.
• The Indian QSR industry is expected to
grow at a CAGR of 27 % for the period
from 2012-16.
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MASTER FRANCHISES
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MARKET SHARE
MCDONALDS
KFC
DOMINO'S
SUBWAY
OTHERS
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WHY NO INDIAN QSR BRANDS ON TOP?
• The lack of back–end integration.
• Distribution channels.
• Centralized commissaries.
• Training resources.
• Vendor development.
• Capital backing and
• Most importantly standardization in taste
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IMPACT ON INDIAN CROWD
• Nearly 40 percent of the people eating out are young adults
• More young professionals are eating fast food in urban india.
• New adda for hanging out!
• With 65% of India’s population below 35, many Indians fall in
the 15-35 age bracket (including students and young working
adults), the target audience of fast food industry.
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spouse
children
neighbours
friends
relatives
INDIVIDUALS INFLUENCING DECISION
For change
For Fun
Saves Time
Family outing
REASONS FOR
EATING OUT
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REASONS FOR EASTING OUTSIDE
S. No. Reasons Percent to total
1. Taste 38.00
2. Convenience 22.00
3. Alternative food 15.00
4. Relaxation 9.00
5. Variety of menu 15.00
TOTAL 100
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CONSUMERS PREFERENCE TOWARDS MENU
S.No. Type of Fast Food Percent to total
1. Burgers 45.00
2 Sandwitches 23.00
3 Pizzas 30.00
4 Others 2.00
TOTAL 100.00
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CUSTOMER CHOICE BY LOCATIONLocation Share (%)
Standalone 54
Supermarkets 14
Travel Locations 32
TOTAL 100
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CUSTOMERS PER WEEK
• 2005-2008
13.1-16 lakhs
• 2008-2011
24.5 lakhs
• 2011-2014
86.6 lakhs- 1.7 crores
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REASONS FOR WIDE ACCEPTANCE
• India has one of the youngest populations in the world, with
nearly 65 percent of the population under 35 years of age.
• As many as 530 million indians will reside in urban areas by
2020
• Rise in nuclear families and youth spending
• Growth in disposable incomes
• The rising urban middle class is also changing its food habits
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• Marketing might of powerful international brands
• Largely driven by new outlets
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HISTORY AND PAST TRENDS
THE START:
Change in gender roles
Sub-urban communities
Rise of automobiles
New highway system
Double Income Group
Relaxation in rules and regulations
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MAJOR TRENDS:
Drive Through Service OR On the Go
Consumerism
Food for specific group(e.g., dieters, women, athletes, older
adults)
Menu diversification
Convenience food
Franchising Model
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PRESENT TRENDS
• Eating away form home
• Functional or Healthy fast foods
• Convenience fast foods
• Green fast foods
• Ethnic foods
• Low calorie foods
• The TV dinner
• Fresh foods
• Regional foods
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MARKETING STRATEGIES
• Quick Service Restaurants in India play on their strengths to
create a brand promise. The brand promise can vary from fast
food to low prices to healthy food.
• QSRs take their brand promise very effectively to the masses.
• In order to maintain the best food experience, the service,
menu items and interiors are standardized.
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LASTLY
• Local players such as Faaso’s, Jumbo King and Kaati Zone are
also growing quickly.
• It will grow to compete with global franchises.
• Healthy food options and low-price menu will also contribute
to its growth, to attain a CAGR of around 27 % during 2012-
2016.
• Continuous economic growth and improving employment
situation will lead to higher personal expenditures on outside
food.
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• Fast food joints will also need to maintain their stance on
pricing because the environment will remain extremely
competitive.
• With so much territory left to conquer, fast-food chains are
expanding fast
• fast food industry will experience modest improvement in the
coming years.
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SOURCES
• Nielsen.com
• Forbes
• Mint
• A&M Magazine
• http://www.cnbc.com/id/101321608
• http://dosamatic.com
• http://www.eiu.com/industry/article/
• https://simconblog.wordpress.com
• http://www.mbaskool.com/business-articles
• http://www.siliconindia.com/shownews
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