Marketing Management I

Group Project Presentation on

Fast Food Industry

Prepared by:-
Deependra P Singh(141462)
Tom Jose Mekat(141463)
Vishakha Mathur(141464)






Industry Definition:
Fast food is the term given to food that is prepared and served very quickly, first
popularized in the 1950s in the United States. While any meal with low preparation time
can be considered fast food, typically the term refers to food sold in a restaurant or store
with preheated or precooked ingredients, and served to the customer in a packaged form
for take-out/take-away. Fast food restaurants are traditionally separated by their ability to
serve food via a drive-through. The term "fast food" was recognized in a dictionary
by MerriamWebster in 1951.
Outlets may be stands or kiosks, which may provide no shelter or seating,
[
or fast food
restaurants (also known as quick service restaurants). Franchise operations that are part
of restaurant chains have standardized foodstuffs shipped to each restaurant from central
locations.
Popular formats of fast food business in India have the following features in common:
Wide opening on the road side
Easy to maintain and durable dcor
A cash counter where food coupons are sold
A food delivery counter which invariably is granite topped
Additional counters for Ice Creams, Chaats, Beverages etc.
A well fitted kitchen located so as to be visible to the customers
Tall tables, usually of stainless steel, where one can eat while standing
A drinking water fountain adorned with a water filter
Rust-proof and non-breakable crockery

Industry Introduction:
Huge market .
High employment rate.(10 million jobs across the world)
High growth rate.(India 40%,Globally 4.8%)
Big business in India.
Positive growth in future.






Factors for Emergence:
Gender Roles.
Customer Sophistication and Confidence.
Paucity of Time.
Double Income Group.
Working Women.
Large population.
Relaxation in rules and regulation.

Major Players:






Market share:
According to a report published by Crisil, the Indian unit of Standard & Poors rating agency, the QSR
market will be worth around Rs70bn (US$1.13bn) by the end of 2016, from its current value of
Rs34bn(US$549m).















Dominos Overview:
Jubilant FoodWorks Limited, JFL, was incorporated in 1995 and initiated operations
in 1996
JFL is Indias largest and fastest growing food service company, with a network of
378 stores (as of 31 March, 2011)
JFL & its subsidiary operates Dominos Pizza brand
Market leader in the organized pizza market
(50% market share and 70% share in the Pizza home delivery segment in
India)
The Company has now also strengthened its portfolio by entering into an agreement
with Dunkin Donuts Franchising LLC, for developing the Dunkin Donuts brand and
operating restaurants in India.
Corporate Strategy:
Exceptional people on a mission to be the pizza delivery company in the world
Think global and act local
Fun, happiness and convenience
Four vs. Four Ps Cs
of Marketing Mix



Dominos Pizza has leveraged
the four Cs or Consumers Viewpoint
in every new product and
promotion.
Most companies concentrate on
the four Ps that are the cornerstone of many
marketing strategies




Product
To capture the market, Dominos had to localize flavors
Deluxe Chicken with Mustard Sauce and Sardines East India
Mutton Ghongura and Chicken Chettinad - South India
Continuous products innovations such as Double Cheese Crunch Pizza, Kebab Pizzas,
Cheese Burst Pizza, Dominos Calzone, Chicken Wings, Pasta have gone down well
with the consumers.
Hence, they have been able to get quick product acceptance from customers
and often that is the first and most important bridge that a foreign food
category has to cross.
Product Differentiation-
Product Innovation
Stringent service standards
Home delivery specialist
Mass customization
Conformance quality All products are identical and meet promised
specifications
Style Delivered in paper boxes and served in style
Service Differentiation-
Ordering ease At store, Hotline or Online
30 minutes delivery guarantee
Price:
Domino's sold a 12" Pizza for Rs 265. The target market consumer for India are
value-, not price-sensitive.
We need to offer comeback value to our customer.
The high price was attributed to the high quality of ingredients used.
For instance, Domino's sourced its Peperoni and Jalapeno needs from Australia and
Spain respectively.



Increasing competition from Pizza Hut, Domino's introduced price cuts and discounts
to attract the customers. In 1998,Domino's introduced the Pizza Mania scheme
where it offered a large pizza for Rs.129/-.
Pizza Mania at Rs 35/- per Pizza and Fun Meal for 4 has helped drive value-for-
money proposition allowing access to the brand

Promotion:
Celebrities like Paresh Rawal, Anupam Kher, Arshad Warsi in various fun act ads to
target Indian audience
The key message of the ads is timely delivery
Target audience is a consumer who belongs to the age group 14-35 years from
Economic class A or B.
Promotional campaign Hungry Kya? and The Pizza delivery experts tagline
New Tagline Khusiyon ke home delivery to target larger target segment and
increased value proposition
30 minutes campaign Offers customers free pizzas if they are not delivered in 30
minutes from time of order
Discount coupons serves as major promotional tool driving sales
Events &Experiences Sponsoring college fest, cultural programs and promotional
events throughout the country
Service Innovation:








Coupons
Tracker






Place:
Domino's has a largest network of outlets across the world.
First store opened in Delhi in 1996
Covers 90 cities including tier 2 and tier 3 cities
Direct Channel
Push Strategy in channel marketing Advertising layout is minimal
Strategically placed in big corporate areas, universities, malls and other places where
the target customers hang out more frequently
Customers can find the nearest outlet through the website

SWOT analysis:







McDonalds
The McDonald's Corporation is the world's largest chain of hamburger fast food
restaurants, serving around 68 million customers daily in 119 countries across 35,0000
outlets. Headquartered in the United States, the company began in 1940 as a barbecue
restaurant operated by Richard and Maurice McDonald; in 1948 they reorganized their
business as a hamburger stand using production line principles. Businessman Ray
Kroc joined the company as a franchise agent in 1955. He subsequently purchased the
chain from the McDonald brothers and oversaw its worldwide growth.
A McDonald's restaurant is operated by either a franchisee, an affiliate, or the corporation
itself. McDonald's Corporation revenues come from the rent, royalties, and fees paid by
the franchisees, as well as sales in company-operated restaurants. In 2012, McDonald's
Corporation had annual revenues of $27.5 billion, and profits of $5.5 billion.
McDonald's primarily sells hamburgers, cheeseburgers, chicken, French
fries, breakfast items, soft drinks, milkshakes, and desserts. In response to changing
consumer tastes, the company has expanded its menu to
include salads, fish, wraps, smoothies, fruit, and seasoned fries.

McDonald's

Type
Public
Traded as
NYSE: MCD
Dow Jones Industrial Average Component
S&P 500 Component
Industry
Restaurants



Founded
May 15, 1940 in San Bernardino, California;
McDonald's Corporation, April 15, 1955 in Des Plaines,
Illinois
Founders
Richard and Maurice McDonald; Ray Kroc(Corporation).
Headquarters
Oak Brook, Illinois, U.S.
Number of
locations
35,000+ worldwide
[1]

Area served
Worldwide
Key people
Andrew J. McKenna(Chairman)
Don Thompson(President and CEO)
Products
Fast food(hamburgers chicken french fries soft
drinks coffee milkshakes salads desserts breakfast)
Revenue
US$ 28.1057 billion (2013)
[2]

US$ 27.567 billion (2012)
[2]

Operating
income
US$ 8.7643 billion (2013)
[2]

US$ 8.6046 billion (2012)
[2]

Net income
US$ 5.5859 billion (2013)
[2]

US$ 5.4648 billion (2012)
[2]

Total assets
US$ 36.6263 billion (2013)
[3]

US$ 35.3865 billion (2012)
[2]

Total equity
US$ 16.0097 billion (2013)
[3]

US$ 15.2936 billion (2012)
[2]

Employees
1,800,000 (2013)
[4]

Website
Global Corporate Website



Brief about McDonald's india:
Market challenger with 16% market share.
more than 32,000 local restaurants.
serving more than 58 million people in around 130 countries each day.
In India, the brand is managed by two business entities...
Connaught Plaza Restaurants Private Limited, led by Mr. Vikram Bakshi, JV Partner
and Managing Director, North & East India



Hardcastle Restaurants Private Limited, led by Ms. Smita Jatia, Managing Director,
South & West India.

Marketing mix:
Product mix
Burger and Wraps
Sides
Beverages
Deserts
Breakfast
Happy price menu
Econo meal
Extra value meals
Happy meals
Price mix:
Price varies from 25 to 249.
Non veg starts with 49.
Deserts starts from 49.
Beverages starts from 23.
Happy meals starts fromm 107
Place mix:
300 McDonald's restaurants in India.
More than 70 percent of the menu developed with complete segregation of
vegetarian and non-vegetarian products
Right from the food processing plants to the point of serving the customers.
Occupied all major malls and market places of different cities.






Promotion mix:
Promotion with new movie releases.(Rae-One, Agent Vinod, Chennai Express)
Refill and Recharge Offer(freecharge.com)
Enjoy a free McAloo Tikki Burger with our Refill and Recharge Offer! Whats more is that
you also get a free talk time recharge worth
50 from Freecharge.com. Simply place your order online
at www.mcdeliveryonline.com and on a minimum purchase of 300 or more you can avail
this exciting offer from McDonalds.

Once the order value reaches an amount of 300, McAloo Tikki will automatically get
added to the cart. To get your Freecharge talk time cashback of 50 please follow the
below format.

McDonald's Breakfast Club Card
Now with the McDonalds Breakfast Club Card, you can get delicious offers on breakfast
with your subsequent visits. Just order for 50 or more to get your McDonalds Breakfast
Club Card! Get it stamped every time during McDonald's Breakfast hours to avail exciting
offers.
McDonalds Drive Thru VIP Car Pass
The DT VIP Offer of the month is here and it comes exclusively with your Drive Thru VIP
Car Pass. To avail this offer, order for 150 or more at any Drive Thru Counter and get a
Small Coke free* with your order! Enjoy these exclusive privileges all through the month!
Happy price menu
Eat to your heart's content without having to burn a hole in your pocket. Try our Happy
Price Menu.