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LIST OF ABBREVIATIONS
SPSS Statistical Package for Social Sciences
KFC Kentucky Fried Chicken
CII Confederation of Indian Industry
NABARD National Agriculture and Rural Development Bank
ICRA Indian Credit Rating Agency
ASSOCHAMThe Associated Chambers of Commerce & Industry of India
FDI Foreign direct investment
MoFPI Ministry of Food Processing Industries
MNC Multinational companies
ADB 'Atithi Devo Bhavah
MSG Monosodium glutamate
ETC Extra Tasty Crispy
CSPI The Center for Science in the Public Interest
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EXECUTIVE SUMMARY
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Food and beverage industry is one of the most profitable industries
in metro cities like Mumbai. There are many kinds of restaurants, pubs,
dance clubs; coffee shops etc are opening in the city. There are also lots of
restaurants and pubs which only focus on international cuisines like, Italian,
Lebanese, Mexican etc. The objective of project was about to find out the
market potential of Mexican food and liquor in Mumbai.
The project methodology consisted data collection and data analysis.
The data was collected through preparation of questionnaires. The
questionnaires were filled from people who like to eat outside. Their
perception about Mexican food and liquor is analaysed. Also their buying
motivations, budget, time they spend in an eating joint etc. The sample of
such buyers was 100. Once the data was collected, it was data entered in
Statistical Package for Social Sciences (SPSS).The quantitative data
collection was done in this process.
Also the number of restaurants in Mumbai which sell Mexican food
were found out. Their offerings, price range, ambience etc was analysed by
appearing their as a mystery shopper. Thus here qualitative data collection
was done. Hence, the project is a blend of quantitative as well as
qualitative data analysis.
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OBJECTIVES
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Below are the objectives of the project
Analyze the target group of the restaurant
Analyze the consumer psychology and thought process of the target
group
Analyze the descriptive statistics.
Find out the motivations of the consumers to visit different restaurants
Find out the unique selling propositions
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RESEARCH
METHODOLOGY
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The quantitative analysis was done through preparation of semi structured
questionnaires.
The data was collected from people living in Mumbai. Most of them were
students. Also the data was collected by one on one interview.
Proposed Sample 100Actual Sample 101
Once the data was collected the data was quantified with the use of
specialized software. The software used for the purpose was SPSS. The
relevant analysis was done later on.
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SAMPLING DESIGN
&
SAMPLE SIZE
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The profile of respondents was very general. The respondent should be a
person who visits Mumbai often maybe for work or education. The
respondent should eat at the restaurants in Mumbai. The minimum sample
was determined at 100. However I managed to get a data from 101 people.
The respondents were tapped from various colleges around Mumbai. The
data was also collected through E-mails.
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REVIEW OF LITERATURE
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HOTEL INDUSTRY APERSPECTIVE
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INTRODUCTION
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Hotel Industry in India has witnessed tremendous boom in recent years.
Hotel Industry is inextricably linked to the tourism industry and the growth in
the Indian tourism industry has fuelled the growth of Indian hotel industry.
The thriving economy and increased business opportunities in India have
acted as a boon for Indian hotel industry. The arrival of low cost airlines
and the associated price wars have given domestic tourists a host of
options. The 'Incredible India' destination campaign and the recently
launched 'Atithi Devo Bhavah' (ADB) campaign have also helped in the
growth of domestic and international tourism and consequently the hotel
industry.
In recent years government has taken several steps to boost travel &
tourism which have benefited hotel industry in India. These include the
abolishment of the inland air travel tax of 15%; reduction in excise duty on
aviation turbine fuel to 8%; and removal of a number of restrictions on
outbound chartered flights, including those relating to frequency and size of
aircraft. The government's recent decision to treat convention centres as
part of core infrastructure, allowing the government to provide criticalfunding for the large capital investment that may be required has also
fuelled the demand for hotel rooms.
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The opening up of the aviation industry in India has exciting opportunities
for hotel industry as it relies on airlines to transport 80% of international
arrivals. The government's decision to substantially upgrade 28 regional
airports in smaller towns and privatization & expansion of Delhi and
Mumbai airport will improve the business prospects of hotel industry in
India. Substantial investments in tourism infrastructure are essential for
Indian hotel industry to achieve its potential. The upgrading of national
highways connecting various parts of India has opened new avenues for
the development of budget hotels in India. Taking advantage of this
opportunity Tata group and another hotel chain called 'Homotel' have
entered this business segment.
According to a report, Hotel Industry in India currently has supply of
110,000 rooms and there is a shortage of 150,000 rooms fueling hotel
room rates across India. According to estimates demand is going to exceed
supply by at least 100% over the next 2 years. Five-star hotels in metro
cities allot same room, more than once a day to different guests, receiving
almost 24-hour rates from both guests against 6-8 hours usage. With
demand-supply disparity, hotel rates in India are likely to rise by 25%
annually and occupancy by 80%, over the next two years. This will affect
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the competitiveness of India as a cost-effective tourist destination.
To overcome, this shortage Indian hotel industry is adding about 60,000
quality rooms, currently in different stages of planning and development,
which should be ready by 2012. Hotel Industry in India is also set to get a
fillip with Delhi hosting 2010 Commonwealth Games. Government has
approved 300 hotel projects, nearly half of which are in the luxury range.
The future scenario of Indian hotel industry looks extremely rosy. It is
expected that the budget and mid-market hotel segment will witness huge
growth and expansion while the luxury segment will continue to perform
extremely well over the next few years.
The project reveals the market potential of the Mexican food and liquor in
Mumbai. The international cuisines are getting popular in Mumbai day by
day. We have some international food chains like McDonalds, Pizza Hut,
Dominoz, Subway, Little Italy etc. Since the subject matter sold is
perishable the profit margin is also high. The important revenue drivers are
the eating culture, attitude to try new food, disposable income, thought
process etc. Also the important cost drivers are rentals, electricity bills etc.
The project has tried to analyze the market potential for the Mexican
food and liquor in the worlds most populated city: - Mumbai. The project
has come out with the important revenue and cost drivers for a restaurant.
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The project is highly useful for anybody who is interested in investing in the
food and beverage industry in Mumbai.
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THE POTENTIAL OF INDIA'S FOOD INDUSTRY
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India is the world's second largest producer of food next to China, and has
the potential of being the biggest with the food and agricultural sector. The
processing food segment accounts for 29.4 billion, in a total estimated food
market of about $91.7 billion. The food processing industry is one of the
largest industries in India. It currently ranks fifth in terms of production,
consumption, export and growth prospects.
The Confederation of Indian Industry (CII) has estimated that the food
processing sector has the potential of attracting US$ 33 billion of
investment in 10 years and generates employment of 9 million person-
days. The Government has formulated and implemented several Plan
Schemes to provide financial assistance for setting up and modernizing
food processing units, creation of infrastructure, support for research and
development and human resource development in addition to other
promotional measures to encourage the growth of the processed food
sector.
Though the industry is large in size, it is still at a nascent stage in terms of
development. Of the country's total agriculture and food produce, only 2 per
cent is processed. The highest share of processed food is in the dairy
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sector, where 37 per cent of the total produce is processed, of this only 15
per cent is processed by the organized sector.
India's food processing sector covers fruit and vegetables; meat and
poultry; milk and milk products, alcoholic beverages, fisheries, plantation,
grain processing and other consumer product groups like confectionery,
chocolates and cocoa products, Soya-based products, mineral water, high
protein foods etc. We cover an exhaustive database of an array of
suppliers, manufacturers, exporters and importers widely dealing in sectors
like the Food Industry, Dairy processing, Indian beverage industry etc. We
also cover sectors like dairy plants, canning, bottling plants, packaging
industries, process machinery etc.
The most promising sub-sectors includes Soft-drink bottling, Confectionery
manufacture, Fishing, aquaculture, Grain-milling and grain-based products,
Meat and poultry processing, Alcoholic beverages, Milk processing,
Tomato paste, Fast-food, Ready-to-eat breakfast cereals, Food processing,
Food additives, flavors etc.
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GOVERNMENT
INITIATIVES
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The Government of India has identified the Food Processing Industry
sector as a high priority area. It has given a number of fiscal relief and
incentives to encourage commercialization and value addition to
agricultural produce. As per a study conducted by McKinsey and
Confederation of Indian Industry (CII), the turnover of the total food market
is approximately US $ 69.4 billion out of which value-added food products
comprise US $ 22.2 billion.
Since the liberalization in August, up-till February 2000, proposals for
projects of over US $13.4 billion have been proposed in various segments
of the food and agro-processing industry. Besides this, the Government
has also approved proposals for joint ventures; foreign collaboration,
industrial licenses and 100%export oriented units envisaging an investment
of US $ 4.80 billion during the same period. Out of this, foreign investment
is over US $ 18.2 billion.
Indian Finance Minister P. Chidambaram, in an attempt to provide an
impetus to the food processing industry, has announced that food
processing would be treated as a priority sector for bank credit.
Chidambaram said the National Agriculture and Rural Development Bank
(Nabard) would create a separate window with a corpus of $223 million for
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"refinancing loans to the sector, especially for agro-processing
infrastructure and market development".
India is also considering investing another $22.97m in at least 10 mega
food parks in the country. The move is besides working towards offering
100% foreign direct investment and income-tax benefits to the sector.
According to Indian Credit Rating Agency (Icra), the processed food market
accounts for 32% of the total food market.
The industry associations are also pro-active. The CII will shortly approach
the government with an action plan seeking fiscal sops and policy initiatives
for the food processing industry. The organized and unorganized industry
in India is estimated at $102 billion. CII wants its proposals incorporated in
the 11th Plan. These include providing new broadband category definitions
to bring in uniformity in taxation and flexibility in manufacturing. The idea is
to change the present narrow product-specific definitions to an all-
encompassing one that would even include packaging in the policy for food
processing.
The Associated Chambers of Commerce & Industry of India (ASSOCHAM)
has sought a 10 year tax holiday for food parks and integrated food zones
and also urged the government to provide exemption of income from
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grading of agriculture and farm produce, cold storage, processing of fruit
and vegetables for a period, beginning April 2007 until March 2012.
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INDIANIZATION
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International fast food brands spice up their plans of entering India. Many
like UK brand Dixy Chicken and pizza outlet Papa John's made their foray
recently, Cinnabon and Barnie's will open their first store this year and a
host of other brands, including SumoSalad and Panda Express, are
scouting for local partners to tempt the Indian palate.
Fast-food retail chains such as KFC, McDonald's, Domino's, Pizza Hut and
others are re-learning marketing lessons and segmenting their product
portfolio to capture Indian consumers across diverse income levels and
lifestyles. The strategy is an attempt by some top retailers to tone up profit
margins with a multi-layered product portfolio that addresses the
aspirational need of consumers willing to splurge while meeting the basic
requirement at the bottom-end.
With cut-throat competition to set up standalone outlets at busy
marketplaces getting tougher, fast-food chains have come up with a new
recipe for success - takeover and manage canteens across schools,
colleges and corporate offices.
With global supermarket majors such as Wal-Mart, Tesco and Carrefour
among others increasing sourcing of processed foods from the country, it
makes monetary sense for local companies to enter/expand in this arena.
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In fact, Food Processing Minister Subhodh Kant Sahai had said at the
beginning of the year that foreign retail giants are willing to buy as much as
$30 billion worth of processed food from the country.
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INVESTMENTS
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The food processing sector needs investment of about $28-35bn to meet
the changing food demands in India, according to industry estimates. The
outlay for the food processing segment has been increased from $19.5m in
'04-05 to $41.4m in the next year, more than twice the earlier amount.
Foreign direct investment (FDI) in the country's food sector is poised to hit
the US$ 3-billion mark. In the last one year alone, FDI approvals in food
processing have doubled. Add to this the $55 million that has been
invested in sugar and cooking oil companies, and you can see how the
changing diet of upwardly mobile India along with the new mega food parks
are becoming dishy to overseas investors. Foreign direct investment in
food already beats the money being pumped into the far-more-glamorous
hotels and tourism industry.
According to latest industry ministry data, the cumulative FDI inflow in food
processing reached $2,804 million in March '06. In '05-06, the sector
received approvals worth $41million. This figure is almost double the
$22million approved in '04-05.
Foreign investors are keen in investing in the country. Recently, India has
received an encouraging response from investors in the UK for establishing
joint quality control testing facilities for agriculture products and establishing
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cold storage facilities in the country, Minister of State for Food Processing
Industries Subodh Kant Sahai said.
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BON APPETITE
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The total food production in India is likely to double in the next ten years
and there is an opportunity for large investments in food and food
processing technologies, skills and equipment, especially in areas of
Canning, Dairy and Food Processing, Specialty Processing, Packaging,
Frozen Food/Refrigeration and Thermo Processing. Fruits & Vegetables,
Fisheries, Milk & Milk Products, Meat & Poultry, Packaged/Convenience
Foods, Alcoholic Beverages & Soft Drinks and Grains are important sub-
sectors of the food processing industry. Health food and health food
supplements is another rapidly rising segment of this industry which is
gaining vast popularity amongst the health conscious.
In a bid to remove constraints in the way of investments in the sector, the
Ministry of Food Processing Industries (MoFPI) is set to push for creating a
favorable fiscal environment to induce venture capital and mutual funds to
invest in different components of supply chain or in the entire chain. This
follows the recommendations of a Rabo Bank study commissioned by the
Ministry to unlock investments to the tune of $33.4 billion in this sector over
the next 10 years.
Since the sector offers immense growth potential, a large number of multi
national companies (MNCs) have entered India to take advantage of the
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opportunity. Unilever, Nestle, Pepsi and Cadbury are some of the big,
successful overseas players in India that face a strife from established
Indian brands.
According to a recently published report by RNCOS, Indian Food
Processing (2006), :"In next 3 years, the Indian food processing industry is
anticipated to grow to 3 times its current size making India a key and
consequential player in the food and agriculture trade. Despite being
recognized as a promising growth area, the current share of Indian food
processing market in the world food trade is only 2%."
The food processing and bakery products sector has given the stock
markets something to munch on. Stocks of major players in this slow-
moving sector have been performing well on good corporate results, helpful
economic conditions and good weather. Although thin margins will call for
increased volumes for these companies to remain afloat two years down
the line, the long-term prospects are still good because opened-up rural
markets and an ever expanding consumer base will ensure volumes.
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COMPETITORS
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KFC
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KFC Corporation (KFC ), founded and also known as Kentucky Fried
Chicken , is a chain of fast food restaurants based in Louisville, Kentucky,
in the United States. KFC has been a brand and operating segment,
termed a concept of Yum! Brands since 1997 when that company was
spun off from PepsiCo as Tricon Global Restaurants Inc.
KFC primarily sells chicken pieces, wraps, salads and sandwiches. While
its primary focus is fried chicken, KFC also offers a line of grilled androasted chicken products, side dishes and desserts. Outside North
America, KFC offers beef based products such as hamburgers or kebabs,
pork based products such as ribs and other regional fare.
The company was founded as Kentucky Fried Chicken by Colonel Harland
Sanders in 1952, though the idea of KFC's fried chicken actually goes back
to 1930. Although Sanders died in 1980, he remains an important part of
the company's branding and advertisements, and "Colonel Sanders" or
"The Colonel" is a metonym for the company itself. The company adopted
KFC, an abbreviated form of its name, in 1991.Starting in April 2007, thecompany began using its original name, Kentucky Fried Chicken, for its
signage, packaging and advertisements in the U.S. as part of a new
corporate re-branding program; newer and remodeled restaurants will have
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the new logo and name while older stores will continue to use the 1980s
signage. Additionally, Yum! continues to use the abbreviated name freely in
its advertising.
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HISTORY
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Born and raised in Henryville, Indiana, Sanders passed through several
professions in his lifetime. Sanders first served his fried chicken in 1930 in
the midst of the Great Depression at a gas station he owned in North
Corbin, Kentucky. The dining area was named Sanders Court & Caf and
was so successful that in 1936 Kentucky Governor Ruby Laffoon granted
Sanders the title of honorary Kentucky Colonel in recognition of his
contribution to the state's cuisine. The following year Sanders expanded his
restaurant to 142 seats, and added a motel he bought across the street.
When Sanders prepared his chicken in his original restaurant in North
Corbin, he prepared the chicken in an iron skillet, which took about 30
minutes to do, too long for a restaurant operation. In 1939, Sanders altered
the cooking process for his fried chicken to use a pressure fryer, resulting
in a greatly reduced cooking time comparable to that of deep frying.In 1940
Sanders devised what came to be known as his Original Recipe .
The Sanders Court & Caf generally served travelers, often those headed
to Florida, so when the route planned in the 1950s for what would become
Interstate 75 bypassed Corbin, he sold his properties and traveled the U.S.
to sell his chicken to restaurant owners. The first to take him up on the offer
was Pete Harman in South Salt Lake, Utah; together, they opened the first
"Kentucky Fried Chicken" outlet in 1952. By the early 1960s, Kentucky
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Fried Chicken was sold in over 600 franchised outlets in both the United
States and Canada. One of the longest-lived franchisees of the older Col.
Sanders' chicken concept, as opposed to the KFC chain, was the Kenny
Kings chain. The company owned many Northern Ohio diner-style
restaurants, the last of which closed in 2004.
Sanders sold the entire KFC franchising operation in 1964 for $2 million
USD, equal to $14,161,464 today. Since that time, the chain has been sold
three more times: to Heublein in 1971, to R.J. Reynolds in 1982 and most
recently to PepsiCo in 1986, which made it part of its Tricon Global
Restaurants division, which in turn was spun off in 1997, and has now been
renamed to Yum! Brands.
In 2001, KFC started test in Austin, Texas restaurants of "Wing Works"
chicken wing line sold with one of a few flavored sauces. Also, KFC hired a
consultant to develop a breakfast menu.
Additionally, Colonel Sanders' nephew, Lee Cummings, took his own
Kentucky Fried Chicken franchises (and a chicken recipe of his own) andconverted them to his own "spin-off" restaurant chain, Lee's Famous
Recipe Chicken.
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Today, some of the older KFC restaurants have become famous in their
own right. One such restaurant is located in Marietta, Georgia. This store is
notable for a 56-foot (17 m) tall sign that looks like a chicken. The sign,
known locally as the Big Chicken, was built for an earlier fast-food
restaurant on the site called Johnny Reb's Chick, Chuck and Shake. It is
often used as a travel reference point in the Atlanta area by locals and
pilots.
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THE SECRET RECIPE
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The Colonel's secret flavor recipe of 11 herbs and spices that creates the
famous "finger lickin' good" chicken remains a trade secret . Portions of the
secret spice mix are made at different locations in the United States, and
the only complete, handwritten copy of the recipe is kept in a vault in
corporate headquarters.
On September 9, 2008, the one complete copy was temporarily moved to
an undisclosed location under extremely tight security while KFC revamped
the security at its headquarters. Before the move, KFC disclosed that the
recipe, which includes exact amounts of each component, is written in
pencil on a single sheet of notebook paper and signed by Sanders. It was
locked in a filing cabinet with two separate combination locks. The cabinet
also included vials of each of the 11 herbs and spices used. Only two
unnamed executives had access to the recipe at any one time. One of the
two executives said that no one had come close to guessing the contents
of the secret recipe, and added that the actual recipe would include some
surprises. On February 9, 2009, the secret recipe returned to KFC's
Louisville headquarters in a more secure, computerized vault guarded by
motion detectors and security cameras. Reportedly, the paper has yellowed
and the handwriting is now faint.
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In 1983, writer William Poundstone examined the recipe in his book Big
Secrets . He reviewed Sanders' patent application, and advertised in college
newspapers for present or former employees willing to share their
knowledge. From the former he deduced that Sanders had diverged from
other common fried-chicken recipes by varying the amount of oil used with
the amount of chicken being cooked, and starting the cooking at a higher
temperature (about 400 F (200 C)) for the first minute or so and then
lowering it to 250 F (120 C) for the remainder of the cooking time. Several
of Poundstone's contacts also provided samples of the seasoning mix, and
a food lab found that it consisted solely of sugar, flour, salt , black pepper
and monosodium glutamate (MSG). He concluded that it was entirely
possible that, in the years since Sanders sold the chain, later owners had
begun skimping on the recipe to save costs. Following his buyout in 1964,
Colonel Sanders himself expressed anger at such changes, saying:
That friggin' ... outfit.... They prostituted every goddamn thing I had. I had
the greatest gravy in the world and those sons of bitches-- they dragged it
out and extended it and watered it down that I'm so goddamn mad!
Ron Douglas, author of the book America's Most Wanted Recipes , also
claims to have figured out KFC's secret recipe.
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PRODUCTS PACKAGING
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The famous paper bucket that KFC uses for its larger sized orders of
chicken and has come to signify the company was originally created by
Wendy's restaurants founder Dave Thomas. Thomas was originally a
franchisee of the original Kentucky Fried Chicken and operated several
outlets in the Columbus, Ohio area. His reasoning behind using the paper
packaging was that it helped keep the chicken crispy by wicking away
excess moisture. Thomas was also responsible for the creation of the
famous rotating bucket sign that came to be used at most KFC locations in
the US.
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MENU ITEMS
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This is a list of menu items sold at KFC.
Chicken
KFC's specialty is fried chicken served in various forms. KFC's
primary product is pressure-fried pieces of chicken made with the
original recipe . The other chicken offering, extra crispy , is made using
a garlic marinade and double dipping the chicken in flour before deep
frying in a standard industrial kitchen type machine.
Kentucky Grilled Chicken This marinated grilled chicken is targeted
towards health-conscious customers. It features marinated breasts,
thighs, drumsticks, and wings that are coated with seasonings before
being grilled. It has less fat, calories, and sodium than the Original
Recipe fried chicken. Introduced in April 2009.
KFC has two lines of sandwiches: its "regular" chicken sandwiches
and its Snackers line. The regular sandwiches are served on either a
sesame seed or corn dusted roll and are made from either whole
breast fillets (fried or roasted), chopped chicken in a sauce or friedchicken strips. The Snackers line are value priced items that consist
of chicken strips and various toppings. In the UK, Australia and New
Zealand, sandwiches are referred to as "burgers"; there is the
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chicken fillet burger (a chicken breast fillet coated in an original-recipe
coating with salad garnish and mayonnaise) and a Zinger Burger (as
with the former but with a spicier coating and salsa). Both of these
are available as "tower" variants, which include a slice of cheese and
a hash brown.
o KFC considers its Double Down product a sandwich in spite of
containing no bread.
A variety of smaller finger food products are available at KFC
including chicken strips, wings, nuggets and popcorn chicken. These
products can be ordered plain or with various sauces, including
several types of barbecue sauces and buffalo sauce. They also offer
potato wedges.
Several pies have been made available from KFC. The Pot Pie is a
savory pie made with chicken, gravy and vegetables. In the second
quarter of 2006, KFC introduced its variation on Shepherd's pie called
the Famous Bowl . Served in a plastic bowl, it is layered with mashed
potatoes or rice, gravy, corn, popcorn chicken, and cheese, and is
served with a biscuit. The bowl had been available at KFC's special
test market store in Louisville since the third quarter of 2005.
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The KFC Twister is a wrap that consists of either chicken strips or
roasted chicken, tomato, lettuce and (pepper) mayonnaise wrapped
in a tortilla. In Europe, the Twister is sold in two varieties: 1) the
Grilled Twister (chicken strips) and 2) the Grilled Mexican
twister/Spicy Toasted Twister (UK) (chicken breast supplemented by
tortilla chips and salsa, UK: adds only salsa to pepper mayonnaise)
KFC Fillers are a 9 in (23 cm) sub, available in four varieties over the
summer period in Australia.
Shish kebab in several markets KFC sells kebabs.
Kentucky Barbecued Chicken barbecued chicken dipped in the
original recipe
Wrapstar is a variant of the KFC Twister, consisting of chicken strips
with salsa, cheese, salad, pepper mayonnaise and other ingredients,
contained in a compressed tortilla.
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OTHER PRODUCTS
In some international locations, KFC may sell hamburgers, pork ribs
or fish. In the U.S., KFC began offering the Fish Snacker sandwich
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Parfait desserts "Little Bucket Parfaits" in varieties such as Fudge
Brownie, Chocolate Crme (once called the Colonel's Little Fudge
Bucket), Lemon Crme and Strawberry Shortcake are available at
most locations in the US.
Sara Lee Desserts Available in either Cookies and Cream
Cheesecake or Choc Caramel Mousse.
Krushers, available in Australia, South Africa, India and New Zealand.
These are drinks containing "real bits". They include "classic
krushers", "smoothie krushers" and "fruit krushers". Selected outlets
are now equipped with "Krushbars" to serve these drinks.
Sides
Other than fried chicken, many KFC restaurants serve side dishes
like coleslaw, various potato-based items (including potato wedges,
french fries and mashed potatoes with gravy), biscuits, baked beans,
macaroni and cheese, macaroni salad, rice, steamed vegetables and
corn on the cob.
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Discontinued products
The Colonel's Rotisserie Gold This product was introduced in the
1990s as a response to the Boston Market chain's roasted chicken
products, and a healthier mindset of the general public avoiding fried
food. Purportedly made from a "lost" Col. Sanders recipe, it was sold
as a whole roaster or a half bird.
Tender Roast Chicken This product was an offshoot of "The
Colonel's Rotisserie Gold". Instead of whole and half birds, customers
were given quarter roasted chicken pieces. For a time, customers
could request chicken "original", "Extra Tasty Crispy", or "Tender
Roast".
Chicken Little sandwich a value oriented sandwich that sold for
US$0.39 in the U.S. during the late 1980s and early 1990s. It was a
small chicken patty with mayonnaise on a small roll, similar to White
Castle's mini chicken sandwich.
Extra Tasty Crispy (ETC) Chicken much like the Extra Crispy
served today, except ETC was prepared using chicken that had been
soaking for 15 minutes in a special marinade machine. There is some
speculation that the marinade may have been made with trans-fats,
and KFC confesses to no longer use trans-fats in their chicken, the
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known ingredients were garlic and chicken stock. In the summer of
2007, KFC started marketing the chicken just as "Extra Crispy"
without the marinade.
Kentucky Nuggets were a chicken nugget product available at KFC
from December 1984 until 1996. No reason has been given for their
discontinuation. It is still sold in Australia.
Smokey Chipotle Introduced in April 2008. The chicken was dipped
in chipotle sauce then doubled breaded and fried. It has been
discontinued since August 2008.
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NUTRITIONAL VALUE
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KFC formerly used partially hydrogenated oil in its fried foods. This oil
contains relatively high levels of trans fat, which increases the risk of heart
disease. The Center for Science in the Public Interest (CSPI) filed a court
case against KFC, with the aim of making it use other types of oils or make
sure customers know about trans fat content immediately before they buy
food.
In October 2006, KFC announced that it would begin frying its chicken intrans fat-free oil. This would also apply to their potato wedges and other
fried foods, however, the biscuits, macaroni and cheese, and mashed
potatoes would still contain trans fat. Trans fat-free soybean oil was
introduced in all KFC restaurants in the U.S. by April 30, 2007. CSPI
announced that it would immediately drop its lawsuit against KFC and was
hopeful that this would create a ripple effect on other restaurants or fast
food chains that prepare food rich in trans fat. "If KFC, which deep-fries
almost everything, can get the artificial trans fat out of its frying oil, anyone
can," CSPI executive director Michael Jacobson said in a statement.
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ADVERTISING
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Despite his death in 1980, Sanders remains a key symbol of the company
in its advertising and branding. Early television advertisements for KFC
regularly featured Sanders licking his fingers and talking to the viewer
about his secret recipe, and by the 1960s both the Colonel and the chain's
striped bucket had become well-known. The bucket as product placement
can be seen in the hands of both Annette Funicello and Dwayne Hickman
in 1965's How to Stuff a Wild Bikini , and was also featured prominently in
the 1968 Peter Sellers vehicle, The Party . KFC itself was featured in 1980's
Superman II . The Colonel made appearances as himself in Jerry Lewis's
The Big Mouth (1967), Herschell Gordon Lewis' Blast-Off Girls (1967) and
Al Adamson's Hell's Bloody Devils (1970), as well as an appearance in
1968 on Rowan & Martin's Laugh-In .
Before he became a platinum-selling pop star in the 1970s, Barry Manilow
sang the commercial jingle "Get a Bucket of Chicken", which was later
included on Barry Manilow Live as part of "A Very Strange Medley."
Throughout the mid 1980s, KFC called on Will Vinton Studios to produce a
series of humorous, claymation ads. These most often featured a cartoon-
like chicken illustrating the poor food quality of competing food chains,
mentioning prolonged freezing and other negative aspects. TV ads also
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featured Foghorn Leghorn advising Henry Hawk to visit the restaurant for
better chicken.
In the 1980s, KFC was an associate sponsor for Junior Johnson's
NASCAR Winston Cup Series cars, with such drivers as Darrell Waltrip,
Neil Bonnett, and Terry Labonte.
A 1982 episode of Little House on the Prairie titled "Wave of the Future"
featured a character presumed to be Col. Sanders offering Harriet Oleson afried chicken franchise (perhaps a subliminal advertisement for KFC), but
his character was credited as "Bearded Man" for legal reasons. This sub
plot was an anacrhonism as Sanders had not yet been born at the time the
episode was set (the late 19th century).
In 1997, KFC briefly re-entered the NASCAR Winston Cup Series as
sponsor of the #26 Darrell Waltrip Motorsports Chevrolet with driver Rich
Bickle at the Brickyard 400.
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The logo was built from 65,000 one-foot-square tiles, and it took six days
on site to construct in early November. The logo was placed in the Mojave
Desert near Rachel, Nevada . It is located in the northern section of Rachel,
Nevada
Many KFC locations are co-located with one or more of Yum! Brands
restaurants, Long John Silver's , Taco Bell , Pizza Hut , or A&W Restaurants .
Many of these locations behave like a single restaurant, offering a single
menu with food items from both restaurants.
The resurrected Kentucky Fried Chicken logo
One of KFC's latest advertisements is a commercial advertising its "wicked
crunch box meal". The commercial features a fictional black metal band
called "Hellvetica" performing live, the lead singer then swallows fire. The
commercial then shows the lead singer at a KFC eating the "wicked crunch
box meal" and saying "Oh man that is hot".
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In 2007, the original, non-acronymic Kentucky Fried Chicken name was
resurrected and began to reappear on company marketing literature and
food packaging, as well as some restaurant signage.
In 2010, an advertisement was shown in Australia showing an Australian
cricket fan giving West Indies fans KFC chicken to keep them quiet. The ad
sparked a debate over racism in the ad, suggesting that all black people
eat fried chicken. Fried chicken was eaten by black slaves because it was
cheap and easy to make. Though KFC stated that it was "misinterpreted by
a segment of people in the US", the ad was later pulled from TV. However,
several Australian commentators have expressed the opinion that the ad is
not racist, because this is not a racial stereotype in Australia and the cricket
fans in the ad are not African American, but West Indies cricket supporters
(the West Indies cricket team was playing a series against the Australian
cricket team at the time of the ad).
Also in 2010, Yum! signed a naming rights deal with the Louisville Arena
Authority for Louisville's new downtown arena, which opened on October
10 of that year as the KFC Yum! Center.
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McDonald's Corporation (NYSE: MCD) is the world's largest chain of
hamburger fast food restaurants, serving more than 58 million customers
daily. In addition to its signature restaurant chain, McDonalds Corporation
held a minority interest in Pret A Manger until 2008, was a major investor in
the Chipotle Mexican Grill until 2006, and owned the restaurant chain
Boston Market until 2007.
A McDonald's restaurant is operated by either a franchisee, an affiliate, or
the corporation itself. The corporation's revenues come from the rent,
royalties and fees paid by the franchisees, as well as sales in company-
operated restaurants. McDonald's revenues grew 27% over the three years
ending in 2007 to $22.8 billion, and 9% growth in operating income to $3.9
billion.
McDonald's primarily sells hamburgers, cheeseburgers, chicken products,
french fries, breakfast items, soft drinks, shakes, and desserts. In response
to obesity trends in Western nations and in the face of criticism over the
healthiness of its products, the company has modified its menu to include
alternatives considered healthier such as salads, wraps and fruit.
The business began in 1940, with a restaurant opened by brothers Richard
and Maurice McDonald in San Bernardino, California. Their introduction of
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the "Speedee Service System" in 1948 established the principles of the
modern fast-food restaurant. The original mascot of McDonald's was a man
with a chef's hat on top of a hamburger shaped head whose name was
"Speedee." Speedee was eventually replaced with Ronald McDonald by
1967 when the company first filed a U.S. trademark on a clown shaped
man having puffed out costume legs.
McDonald's first filed for a U.S. trademark on the name McDonald's on May
4, 1961, with the description "Drive-In Restaurant Services," which
continues to be renewed through the end of December 2009. In the same
year, on September 13, 1961, the company filed a logo trademark on an
overlapping, double arched "M" symbol. The overlapping double arched
"M" symbol logo was temporarily disfavored by September 6, 1962, when a
trademark was filed for a single arch, shaped over many of the early
McDonald's restaurants in the early years. The famous double arched "M"
symbol in use today did not appear until November 18, 1968, when the
company filed a U.S. trademark.
The first McDonald's restaurants opened in the United States, Canada,
Costa Rica, Panama, Japan, the Netherlands, Germany, Australia, France,
El Salvador and Sweden, in order of openings.
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The present corporation dates its founding to the opening of a franchised
restaurant by Ray Kroc, in Des Plaines, Illinois, on April 15, 1955, the ninth
McDonald's restaurant overall. Kroc later purchased the McDonald
brothers' equity in the company and led its worldwide expansion, and the
company became listed on the public stock markets in 1965. Kroc was also
noted for aggressive business practices, compelling the McDonald brothers
to leave the fast food industry. The McDonald brothers and Kroc feuded
over control of the business, as documented in both Kroc's autobiography
and in the McDonald brothers' autobiography. The site of the McDonald
brothers' original restaurant is now a monument.
With the expansion of McDonald's into many international markets, the
company has become a symbol of globalization and the spread of the
American way of life. Its prominence has also made it a frequent topic of
public debates about obesity, corporate ethics and consumer responsibility.
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McDonald's restaurants are found in 119 countries and territories around
the world and serve 58 million customers each day. McDonald's operates
over 31,000 restaurants worldwide, employing more than 1.5 million
people. The company also operates other restaurant brands, such as Piles
Caf.
Focusing on its core brand, McDonald's began divesting itself of other
chains it had acquired during the 1990s. The company owned a majority
stake in Chipotle Mexican Grill until October 2006, when McDonald's fully
divested from Chipotle through a stock exchange. Until December 2003, it
also owned Donatos Pizza. On August 27, 2007, McDonald's sold Boston
Market to Sun Capital Partners.
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TYPES OF
RESTAURANTS
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Most standalone McDonald's restaurants offer both counter service and
drive-through service, with indoor and sometimes outdoor seating. Drive-
Thru, Auto-Mac, Pay and Drive, or "McDrive" as it is known in many
countries, often has separate stations for placing, paying for, and picking
up orders, though the latter two steps are frequently combined; it was first
introduced in Arizona in 1975, following the lead of other fast-food chains.
The first such restaurant in Britain opened at Fallowfield, Greater
Manchester in 1986.
In some countries, "McDrive" locations near highways offer no counter
service or seating. In contrast, locations in high-density city neighborhoods
often omit drive-through service. There are also a few locations, located
mostly in downtown districts, that offer Walk-Thru service in place of Drive-
Thru.
Specially themed restaurants also exist, such as the "Solid Gold
McDonald's," a 1950s rock-and-rollthemed restaurant. In Victoria, British
Columbia, there is also a McDonald's with a 24-carat (100%) gold
chandelier and similar light fixtures.
To accommodate the current trend for high quality coffee and the popularity
of coffee shops in general, McDonald's introduced McCaf , a caf-style
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accompaniment to McDonald's restaurants in the style of Starbucks.
McCaf is a concept created by McDonald's Australia, starting with
Melbourne in 1993. Today, most McDonald's in Australia have McCafs
located within the existing McDonald's restaurant. In Tasmania, there are
McCafs in every store, with the rest of the states quickly following suit.
After upgrading to the new McCaf look and feel, some Australian stores
have noticed up to a 60% increase in sales. As of the end of 2003 there
were over 600 McCafs worldwide.
Some locations are connected to gas stations/convenience stores, while
others called McExpress have limited seating and/or menu or may be
located in a shopping mall. Other McDonald's are located in Wal-Mart
stores. McStop is a location targeted at truckers and travelers which may
have services found at truck stops.
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McDonald's Corporation earns revenue as an investor in properties, a
franchiser of restaurants, and an operator of restaurants. Approximately
15% of McDonald's restaurants are owned and operated by McDonald's
Corporation directly. The remainder are operated by others through a
variety of franchise agreements and joint ventures. The McDonald's
Corporation's business model is slightly different from that of most other
fast-food chains. In addition to ordinary franchise fees and marketing fees,
which are calculated as a percentage of sales, McDonald's may also collect
rent, which may also be calculated on the basis of sales. As a condition of
many franchise agreements, which vary by contract, age, country, and
location, the Corporation may own or lease the properties on which
McDonald's franchises are located. In most, if not all cases, the franchisee
does not own the location of its restaurants.
The UK business model is different, in that fewer than 30% of restaurants
are franchised, with the majority under the ownership of the company.
McDonald's trains its franchisees and others at Hamburger University in
Oak Brook, Illinois.
In other countries, McDonald's restaurants are operated by joint ventures of
McDonald's Corporation and other, local entities or governments.
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As a matter of policy, McDonald's does not make direct sales of food or
materials to franchisees, instead organizing the supply of food and
materials to restaurants through approved third party logistics operators.
According to Fast Food Nation by Eric Schlosser (2001), nearly one in eight
workers in the U.S. have at some time been employed by McDonald's.
(According to a news piece on Fox News this figure is one in ten.) The
book also states that McDonald's is the largest private operator of
playgrounds in the U.S., as well as the single largest purchaser of beef,
pork, potatoes, and apples. The selection of meats McDonald's uses varies
with the culture of the host country.
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ANALYSIS & FINDINGS
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The analysis is made simpler through the presentation from tables.
Frequency of visiting: -
Figure 1
The above table shows that almost 62% of the people prefer to go to a
restaurant 3-4 times within a month. However still 25% of the respondents
dont visit quite often. Hence, we can expect a repeat foot fall for about 3-4
times a month.
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Money spent per visit per person:-
Figure 2
The above table reveals that more than 46% of the respondent spends
more than 300 Rs per visit individually. Again about 36% people are ready
to pay a range of Rs. 150 to Rs. 300 individually per visit. Hence, the
revenue from a person may be estimated around Rs. 200
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Experience of Mexican food or liquor:-
Figure 4
The shows that about 42% of the people have already know about the
Mexican food or liquor as they have tried the Mexican food or liquor before.
Thus we can say that there is a good base for our concept of selling the
authentic Mexican food or liquor.
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Most important factor according to consumers:-
Figure 6
The above table shows that the ambience of the restaurant, excellent taste
at affordable price is what people are looking at. Hence, the restaurant
should take care of all these factors. These three factors are motivators for
the people who want to visit a restaurant.
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DEMOGRAPHIC
PROFILE OF THE
RESPONDENTS
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Age of the respondents:-
Figure 7
Almost 80% of the respondents were in the age group of 20-25. About 15%
of the respondents were in the age group of 25-35. However, considering
the population of Mumbai and the rise in the real incomes of the middle
class, age of the respondent is not a very vital factor. But the target
audience will be mainly young and middle aged people. Hence, product
and service offering should be appealable to that age group.
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Occupation of the respondents:-
Figure 8
Most of the respondents were students maybe because students get more
time to socialize with their friends and other peer groups. Almost 75% of
the respondents were students out of the total sample.
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Gender:-
Figure 9
From the above table we know that 62% of the respondents were males
and the remaining were females. The sex ratio of India is negative andhence gender doesnt make much difference where revenue or costs are
concerned.
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Monthly Family Income:-
Figure 10
From the above table we can conclude that more than 38% of the people
who visit restaurants earn a monthly family income of more than Rs. 50000;
this is followed by a income group of Rs. 25000 to Rs. 50000 which
constitute around 42% of the total sample. This data will help us in
determining the target group with right income group.
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The cluster analysis was done in order to judge the consumer psychology
and the personality. The cluster analysis reveals us the significant factors.
The factors are significant when the ANOVA value is less than 0.05
The below table reveals us the significant factors. The factors where
the ANOVA value is greater than 0.05 are excluded as these are
insignificant factors.
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Figure 11
Take a look at the statements where the value of the significance is circled.
These are the significant statements. Rests of the statements are
insignificant. Hence, when we look deeper into the personality and attitude
of the consumer we find the following things:-
The target consumer thinks more than once before buying anything.
May it be eatable or other product? The consumer is cautious in his
decision making. People from Mumbai are not impulsive buyers.
The consumer thinks that the money is not much important than
deriving the satisfaction at the present moment. They are of that
attitude maybe because most of the respondents are in the age group
of 20 to 35.
There is a chance that the consumer might purchase something
without his own wish. We may say that consumers are not very
individualistic but social and open minded.
The target consumers here do like to show off or flaunt in front of their
peers. There is a chance that they might order something costliest
from the menu card just to impress their peers.
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The target consumers prefer to go in a restaurant where celebrities
had come. Mumbai being the Bollywood city, there are ample
celebrities in the city. The celebrities often visit restaurants or pubs.They also arrange their personal parties in such places. Thus from
the research it is found that people like to go to such places as they
get the opportunity to meet celebrities.
Some of the target group always gives tips at the restaurants. Giving
tips is not very Indian. But as there is increase in the number of
foreign restaurants maybe some traditions are imitated by Indian
people.
Having liquor at public places was often considered taboo in Indian
culture. But because of the globalization the culture is also
undergoing through radical changes. After the abolishment of
industrial licensing, there is increase in the bars, pubs or wine shops
and people do not mind having liquor along with the food. Thus this is
a positive sign for opening authentic Mexican food and liquor
restaurant.
I have earlier mentioned that the target group wants cozy ambience
and excellent taste at an affordable price. But when it comes to judge
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only between ambiences and taste the target group gives more
importance to ambience than taste. There are many restaurants in
Mumbai where the taste is poor but ambience is unique. Thus we can
say that providing a unique ambience is a key for a restaurant.
It was revealed that the target consumer is not much happy to try out
different options. Hence, one needs to persuade the consumer
through integrated marketing communications. One can arrange for
public relations campaigns through celebrity as the target consumers
are fond of celebrities.
Traditionally, Indian culture is a family oriented culture. However
globalization is responsible for making radical changes in the culture.
An Indian was a dependent person where the decision making is
concerned. However, the result shows that the target consumers
think that family is not much important than friends. At least where a
decision of choosing a restaurant or socializing is concerned people
are not that dependent on families.
Usually people prefer the restaurants which are less crowded.
However the research has not found the same. The research has
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found that people are absolutely fine with going to a restaurant which
is crowded.
The target consumers are not interested in a good location of the
restaurant. Few restaurants have become famous because of their
unique selling propositions in the form of taste, price or ambience etc.
Thus, the locations of such restaurants are not considered important.
This is important finding as one might save money by opening
restaurant in suburb area and then open a chain in the downtown
once it has the ability to afford the high rentals.
The target consumer still has a cautious approach and he is not
ready to accept the fact that one should enjoy the present without
worrying too much about the future. Hence we can say that the
target consumer is still savings oriented and he is not going to spend
money like an impulsive buyer. Hence, the sales promotion
techniques should be planned to attract the consumers.
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ANALYSIS FROM CROSS
TABULATIONS
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The cross tabulation is a technique to analyze the dependency of variables.
For example, the cross tabulations will tell us whether frequency of visit is
dependent on income, gender, occupation etc.
Here also attempt is made to analyze the relationships between dependent
and independent variables. This is done with the help of chi square test.
The null hypothesis is always considered as the variables are independent;
meaning frequency of visiting restaurant is not dependent on monthly
family income etc. If the chi square measure is less than 0.05 then we
accept the null hypothesis. Otherwise we reject the same. The research
has attempted to find out such dependency between different variables.
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Relationships between frequency of visit and gender:
Figure 12
The above table shows that out of the total sample 62 are males and 39
are females. Out of the total males 58% go to the restaurant 3 to 4 times a
month. And nearly 24% males dont go often. Out of total females more
than 69% of them go 3-4 times in a restaurant. This is followed by 25% of
them who dont go to restaurant much often.
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Chi square test:-
The below table describes the dependency between frequency of visit and
gender.
Figure 13
In order to decide about the dependency we compare the Pearson Chi-
square value with the standard value 0.050. If the value is greater than the
said value then we reject hypothesis which states that the factors are not
independent. In this case the value is greater than 0.05. Thus we reject the
hypothesis. Hence we conclude that the frequency to visit the restaurant is
independent of gender.
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Relationship between frequency of visiting and age:-
Figure 14
The above figure states that almost 80% of the sample lies in the age
group of 20-25. Within that group 67% of the respondents go to restaurant
3-4 times a month.
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Chi square test:-
The below table describes the dependency between frequency of visit and
age group.
Figure 15
In order to decide about the dependency we compare the Pearson Chi-
square value with the standard value 0.050. If the value is greater than the
said value then we reject hypothesis which states that the factors are not
independent. In this case the value is greater than 0.05. Thus we reject the
hypothesis. Hence we conclude that the frequency to visit the restaurant is
independent of the age group.
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Relationship between frequency of visiting and income group:-
Figure 16
The above table shows that around 62% of the people visit a restaurant 3-4
times a month. Within those people 41% belong to the income group of Rs.
50000 and above; and about 46% belong to the income group of Rs. 25000
to Rs. 50000.
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Chi Square Test:-
The below table describes the dependency between frequency of visit and
age group.
Figure 17
In order to decide about the dependency we compare the Pearson Chi-
square value with the standard value 0.050. If the value is greater than the
said value then we reject hypothesis which states that the factors are not
independent. In this case the value is greater than 0.05. Thus we reject the
hypothesis. Hence we conclude that the frequency to visit the restaurant is
independent of the income group. This may be true as the product
purchased is of consumable in nature having short shelf life. If those were
consumer durables then we might have got different results.
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Chi Square Test:-
The below table shows the dependency between the age of the
respondents and amount spent per visit.
Figure 19
In order to decide about the dependency we compare the Pearson Chi-square value with the standard value 0.050. If the value is greater than the
said value then we reject hypothesis which states that the factors are not
independent. In this case the value is greater than 0.05. Thus we reject the
hypothesis. Hence we conclude that expenditure of respondents and their
age are not dependent.
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Relationship between age group and time spent per visit:-
Figure 20
The above table shows that 58% of the respondents spend about 1 to 2
hours at the restaurant. This is followed by 30% of the respondents who
spend about half an hour to an hour in the restaurant when they visit the
restaurant
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Chi Square test:-
The below table shows the dependency between the age of the
respondents and time spent per visit.
Figure 21
In order to decide about the dependency we compare the Pearson Chi-
square value with the standard value 0.050. If the value is greater than the
said value then we reject hypothesis which states that the factors are not
independent. In this case the value is greater than 0.05. Thus we reject the
hypothesis. Hence we conclude that the time spent by the respondent and
their age are not dependent.
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Relationship between money spent and gender of the
respondent:-
Figure 22
The above table shows that out of 62 male respondents, more than 46%
spend more than Rs. 300 per visit. This is followed by about 32% of the
respondents who spend money between Rs. 150 to Rs. 300. Out of the
total 39 female respondents about 46% spend more than Rs. 300 and
about 48% spend money between Rs. 150 to Rs. 300.
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Chi Square test:-
The below table shows the dependency between the gender of the
respondents and money spent per visit.
Figure 23
In order to decide about the dependency we compare the Pearson Chi-
square value with the standard value 0.050. If the value is greater than the
said value then we reject hypothesis which states that the factors are not
independent. In this case the value is greater than 0.05. Thus we reject the
hypothesis. Hence we conclude that the money spent by the respondents
and their gender are not dependent.
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Relationship between time spent and gender of the respondent:-
Figure 24
The above table shows that about 58% of the respondents spend 1 to 2
hours in the restaurant. Out of that about 57% are males and 43% are
females. We need Chi Square test to check the dependency between the
gender and the time spent at the restaurant.
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Chi Square Test:-
The below table shows the dependency between the gender and the time
spent at the restaurant.
Figure 25
In order to decide about the dependency we compare the Pearson Chi-
square value with the standard value 0.050. If the value is greater than the
said value then we reject hypothesis which states that the factors are not
independent. In this case the value is greater than 0.05. Thus we reject the
hypothesis. Hence we conclude that the time spent by the respondents and
their gender are not dependent.
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Relationship between time spent and income of the respondent:-
Figure 26
We have already seen that about 58% of the total respondents spend 1-2
hours in the restaurant. Out of that about 48% of the respondents are from
income group of Rs. 25000 to Rs. 50000 per month. And about 35% are
from the income group of Rs. 50000 and above. The chi square test will tell
us whether the income group and the time spent in the restaurants are
dependent on each other.
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Chi Square Test:-
Figure 27
In order to decide about the dependency we compare the Pearson Chi-square value with the standard value 0.050. If the value is greater than the
said value then we reject hypothesis which states that the factors are not
independent. In this case the value is lesser than 0.05. Thus we accept the
hypothesis. Hence we conclude that the time spent by the respondents is
dependent on their income.
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Relationship between money spent and income of the
respondent:-
Figure 28
The above table shows that out of 42 respondents who are in the income
range of Rs. 25000 to Rs. 50000; 45% spend Rs. 150 Rs. 300 per visit
and 38% spend more than Rs.300 per visit. Among 39 respondents with
income group of Rs. 50000 and above, about 62% spend more than Rs.
300 per visit and 25% spend Rs. 150 to Rs. 300. The chi square test will
determine whether the amount spent is dependent upon the monthly
income.
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Chi Square test:-
Figure 29
In order to decide about the dependency we compare the Pearson Chi-
square value with the standard value 0.050. If the value is greater than the
said value then we reject hypothesis which states that the factors are not
independent. In this case the value is lesser than 0.05. Thus we accept the
hypothesis. Hence we conclude that the time spent by the respondents is
dependent on their income.
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RECOMMENDATIONS
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The location will be a key during the initial phase. One cannot afford
the prime locations at the beginning of the restaurant. Hence, one
should find a place in suburban localities, where the rentals arecheap. Thus one can save on rentals. Also a care must be taken in
regard that the restaurant should be close to college. This will ensure
a good customer base as college going students often explore new
eating joints.
Initially having liquor at the public places was considered taboo in the
Indian culture. But now the situations are changing. However
necessary permits should be obtained before start of business
activity.
There is lot of scope for opening the Mexican restaurant selling
authentic food and liquor. There are many restaurants where
international cuisines are available. However, restaurants offering
cuisine of just one particular region is not there. Hence, Mexican food
and liquor is a good idea.
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CONCLUSION
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The most observed frequency of visiting the restaurant is 3-4 times a
month.
The money spent per person per visit is more than Rs. 200 This
information is vital in order to budget the revenues and set them off
against the costs.
The average time spent in the restaurant is between 1 to 2 hours.
This information is important to plan the table arrangement of the
restaurant as well as determine the waiting time.
The majority of the respondents have never tried Mexican food, Also
those who have tried are quite uncertain about the authenticity of the
Mexican food. Hence, there is a scope for consumer education about
Mexican food and liquor. This can be achieved through effective
integrated marketing communication.
Excellent ambiences, authentic taste at affordable price are the
factors which are going to drive consumers towards your restaurant.
Hence, these three things should be made unique selling
propositions. The entire strategy should be planned to achieve these
three things which are vital in the success of the restaurant.
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Also people who like to eat outside mostly go in groups of 2-4. This
information is also important to plan the size of the dining table. The
management should see to it that they can accommodate ay number within the group.
Todays Mumbai customer is open minded. However at the same
time it should be noted that the customers still give importance to
save money for future. The customer is not of the attitude that one
should enjoy present without worrying about the past. Also the
customer is not at all impulsive. Hence, the advertising strategy must
be planned very carefully. The advertising should be focused towards
the unique selling propositions which are already identified.
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REFERENCE SECTION
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Questionnaire to the potential buyers in order to judge their
perception about Mexican food and liquor:-
Greetings of the day.
My name is Roopesh Dubey. I am a final semester student of Masters in
Business Administration (MBA).
I am a final semester student from Dr. D Y Patil Department of Business
Management, Belapur. I am doing a project on analyzing a market potential
for an authentic Mexican restaurant in Mumbai. Please fill in the below
questionnaire to get an adequate data and analysis there on. The data
collected will only be used for academic purposes.
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Questionnaire
(1) When I say about Mexican food and liquor what thoughts do come
to your mind?
(2) How often do you visit a restaurant?
A. Almost daily B. 3-4 times a week C. 3-4 times a month
D. Not Often
(3) How much money do you spend at a restaurant?
A: 0-50 Rupees B: 50-150 rupees C: 150-300 Rupees
D: Over 300 Rupees
(4) How much time do you usually spend at a restaurant?
A. Less than 1/2 hour B. 1/2- 1 hour C. 1-2 hours
D. Over 2 hours
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(5) How many people do you usually go with?
A: Alone
B: With 1 person
C: 2-4 people
D: More than 4 people
(6) What is the single most important factor for you to choose a
restaurant, pub, bar etc?
A: Taste of food B: People/ Service
C: Value for money D: Ambience/Experience
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(7) Please tick the appropriate choice.
Strongly
Disagree
Disagree Uncertain Agree Strongly
AgreeI think more than once
before buying anythingI think money is not
much important than
deriving satisfaction at
the present momentI may purchase
something without my
own wishI like to show off with my
friends
I order something whichis costliest in the menu
cardI am happy to try out
different optionsI think family is more
important than friendsI like the restaurants
which are less crowdedI believe location of
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restaurant is most
importantI prefer the to go in
restaurant where
celebrities comeI believe one should
enjoy the present without
worrying too much about
futureI always give tip at the
restaurantI dont mind having liquor
with the food as wellThe ambience is an
important factor of therestaurant than taste
PLEASE TELL US SOMETHING ABOUT YOURSELF
Name _____________________________________________________
Age (yrs): (15 - 20) (20 25) (25 35) (30 & above)
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Gender: Male/Female
House Hold income level: (12000 15000) pm.
(15000 25000) pm.
(25000 50000) pm.
(50000 and above) pm.
Occupation_________________________________________________
Address ___________________________________________________
THANKS FOR CO-OPERATION
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BIBLIOGRAPHY
WEBSITES:-
http://en.wikipedia.org/wiki/Economy_of_Mexico
http://www.mumbaimirchi.com/restaurants_in_mumbai/mexican_r
estaurants_in_mumbai.htm
www.google.com
BOOKS :-
Sustainability in the hospital industry Philip Sloan,
J h S Ch
http://en.wikipedia.org/wiki/Economy_of_Mexicohttp://en.wikipedia.org/wiki/Economy_of_Mexicohttp://www.mumbaimirchi.com/restaurants_in_mumbai/mexican_restaurants_in_mumbai.htmhttp://www.mumbaimirchi.com/restaurants_in_mumbai/mexican_restaurants_in_mumbai.htmhttp://www.mumbaimirchi.com/restaurants_in_mumbai/mexican_restaurants_in_mumbai.htmhttp://www.google.com/http://www.google.com/http://en.wikipedia.org/wiki/Economy_of_Mexicohttp://www.mumbaimirchi.com/restaurants_in_mumbai/mexican_restaurants_in_mumbai.htmhttp://www.mumbaimirchi.com/restaurants_in_mumbai/mexican_restaurants_in_mumbai.htmhttp://www.google.com/