K. J.

Somaiya Institute of Management

Subject
Business Communication

Topic

An Advisory Report for Commencing Operations of Junoon in Australia

Submitted by:

Group 9

Khushi Kushwaha

Priti Agarwal

Raghav Khandelwal

Sakshi Goyal

Shubhi Goel

Srushti Thaker

MBA Retail Management

Executive Summary

Covid-19 has adversely impacted the hospitality business. Full-service restaurants are projected to
recover gradually in 2021 and 2022, as Australia successfully limited the virus in 2020. Since the second
wave in Melbourne, Victoria, there have been continuously low cases in Australia, and dine-in
restaurants have made a slow comeback across the country with safety precautions in place.

Despite the pandemic, at least 21% of Australians continue to eat out regularly, according to
Euromonitor's projections for August 2020. Because of increased safety awareness, most of them are
from the upper crust of society who want to eat high-quality food with the highest level of security.

Fine dining restaurants, in comparison to other full-service restaurants, are passing the safety check and
will reopen soon because they are adapting to the current environment and taking proactive measures
to ensure the safety of their customers, who are willing to pay a higher price for the additional service
and safety measures taken due to their high personal disposable income.

It was observed that the epidemic had a negative impact on the Australian market. Although the
epidemic clearly affected revenue, it had no impact on gross operating profit. Instead, gross profit was
significantly increased from pre-pandemic levels, reaching 3.40 billion Australian dollars.

The majority of restaurant operators have shifted their focus. They either designed cuisine that could be
served swiftly, informally, and inexpensively, or they created food that could be presented in a time-
consuming and costly fashion. This shift occurred as a result of the government's distance rules, and
business owners adapted to change.

Australians enjoy a wide variety of cuisines, from Chinese to French. Some of the most common eating
habits among Australians:

• Australians are big on junk food.

• Australians are attempting to skip red meat entirely, which is noteworthy for a country with
such a big beef industry.
• Traditional foods are becoming more popular.
• Australians value food freshness and safety above all else.

The Hoefstede model for Australia depicts Australians believing in decentralizing power, providing
equal opportunities to all, being individualistic and proactive, giving credit where credit is due, being
open to change while adhering to traditional values, setting short-term goals, and indulging in simple
pleasures of life.

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Australian culture is an example of a low-context culture. They are simple, straightforward, direct,
polished in speech, do have a different accent and a different sense of humour, maintain a certain level
of physical distance and get uncomfortable with a long duration of silence.

Keeping in mind these facts, we decided to take the 8 – time Michelin Star Winner NYC-based
restaurant Junoon to Australia. Vikas Khanna is the man behind this passion for representing Indian
food and putting it on the world map.

For Junoon, the target customer segment shall be high net individuals who keep up with the latest trends,
are very socially active, and defy the present mainstream. The restaurant shall be positioned as the one
representing Indian cuisine to the world, suited for the global taste palette. The selected location for the
restaurant shall be Melbourne, one of Australia's most affluent cities. Junoon has some competitors, but
this shall be the first Indian restaurant with several accolades in Australia.

To conclude, the restaurant owners in Australia turned the challenges into new chances after the
lockdown, and we saw how they could increase revenues even in difficult times. We learned how
Junoon could potentially succeed in the sphere of fine dining through cultural analysis. Through a
review of the 7Ps and in comparison, with competitors, we observed the restaurant's underlying
underpinnings. In addition, we discovered how culture influences the market and the economy. Based
on our findings, Australia has the potential to become one of Junoon's most important markets, and they
will continue to ride their success train into the future.

We would recommend Junoon to position itself as a restaurant offering a blend of different cuisines and
cultures with Indian Culture and retain their positioning strategy of being posh and premium that they
have used in Manhattan.

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 Table of Contents

Executive Summary ................................................................................................................................ 2

Introduction ............................................................................................................................................. 5

Objectives ............................................................................................................................................... 5

Methodology ........................................................................................................................................... 5

Overview of Australian Culture .............................................................................................................. 5

Australian Food Industry ........................................................................................................................ 7

Hoefstede’s Model for Australia ........................................................................................................... 13

Communication Styles .......................................................................................................................... 14

Other Elements of Australian Culture ................................................................................................... 17

Business Culture in Australia................................................................................................................ 19

About Junoon by Vikas Khanna ........................................................................................................... 20

Offerings ............................................................................................................................................... 21

Segmentation, Targeting & Positioning ................................................................................................ 21

Income & Expenditure Analysis ........................................................................................................... 23

Location ................................................................................................................................................ 25

7Ps of Marketing for Junoon................................................................................................................. 26

Competitor Analysis ............................................................................................................................. 26

Conclusion ............................................................................................................................................ 28

Recommendations ................................................................................................................................. 29

References ............................................................................................................................................. 30

Appendix/Glossary ............................................................................................................................... 32

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Introduction

In this report, we have explained how we plan to launch Junoon, a restaurant by Vikas Khanna in
Australia. Our report has been made keeping in mind Geert Hoefstede’s model for Intercultural
communication. We have tried to analyse how this model of intercultural communication forms an
essential part of our business plan. We have first tried to take an overview of Australia’s Culture, which
included people's eating habits, the food industry of the country, competition in the food industry, and
especially the fine-dining space. Then we used this research to analyse the Hoefstede’s model to
understand the significant intercultural factors, which would be essential to understanding our target
market before entering it. We then analysed our segmenting, targeting and positioning strategies as per
the findings in our secondary research suited to the Australian market. We have also shown income and
expenditure analysis of the people there to understand our niche target audience. We arrived at a suitable
pricing strategy. The last part of our report includes essential findings and recommendations, which we
have summarized after relevant research and data interpretation.

Objectives

One of the primary objectives of this report is to try and introduce the restaurant ‘JUNOON’ in the
Australian market. Junoon is an established restaurant in New York City owned by Vikas Khanna for a
luxurious fine dining experience. The secondary objective is to understand various segments that might
affect the decisions taken during the opening of the same. This report helps in understanding the various
factors which might influence the success of Junoon in Melbourne, Australia.

Methodology

We have used the secondary research method to analyse our findings and come to a conclusion. We
have extracted relevant data from journals, reports, research papers and articles from reliable sources
like Statista, Euromonitor and Government statistical reports to back our findings. We have tried to use
graphical representation through pie charts, line graphs and histograms to make our report easy to
interpret.

Overview of Australian Culture

Covid-19 has severely hit the hospitality industry. Full-service restaurants are expected to gradually
recover over 2021 and 2022, as Australia has relatively well contained the virus over 2020. There have
been consistently low cases in Australia since the second wave in Melbourne, Victoria; dine-in

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restaurants have seen a gradual comeback across the country with safety measures in place, such as
check-in policies for customers. According to IBISWorld Report, the restaurant industry is forecasted
to increase by 5.1% CAGR over the next five years. This forecasted growth is attributed to many factors.

Eating Habits

According to the data projected by Euromonitor, August 2020, despite the pandemic, at least 21% of
Australians continue to eat at restaurants weekly. Most of them include the premium segment of society
who wanted to eat quality food with the highest security owing to the increasing safety awareness. Fine
dining restaurants are passing the safety check to reopen soon compared to the other full-service
restaurants because they are adapting themselves to the current environment and taking proactive
measures to ensure the safety of their customers. Also, their customers are willing to pay the increased
price for the additional service and safety measures taken because of their high personal disposable
income.

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Before opening any restaurant, especially outside the home country, thorough market research is
required. The above graph provides data on the eating habits of Australians. According to the horizontal
bar graphs, 84% of the people prefer to have dinner compulsorily than other meals, followed by lunch
and breakfast. The vertical bar charts provide information on the preference of the meals of Australians
according to their age groups. The food habits of each age group vary significantly. Therefore, the
market analysis should study the demographic study and their preferences closely.

Leisure Habits

27% of the Australians spend their leisure time socializing with their friends at least once a week and
60% of them 1-3 times a month. Restaurants are generally their go-to places. Moreover, after spending
a year and a half homebound, people crave good food, quality experience and ambiance, where they
can spend their leisure time with their loved ones stress-free.

Australian Food Industry

In this section, essential insights about the Australian Food Industry have been discussed. As we have
seen, Australia has a diverse and unique culture and it is displayed in their food habits and preferences.
Here, we have discussed the current scenario of the Australian food industry, focusing specifically on
fine dining-in restaurants and the fast-food sector. Also, we have discussed consumer preferences and
their existing food habits, which are of great use when a new company takes entry into a market which
is in our case, Junoon by Vikas Khanna in the Australian Market.

Key Highlights

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Some of the key highlights about the Australian Food market have been presented in this section.

Global Distribution of Food Service Establishments

Here, we can see that Asia-Pacific Region accounts for the most significant market having about 17.3
million outlets, followed by Latin America which has 2.3 million outlets. Also, Australia as a country
has 124,111 food establishments which are decent but not quite good compared to its counterparts.
Hence, it suggests that there is a big room for penetration in the market.

Monthly Retail Revenue generated from Restaurants, cafes & takeaway food services

Through this chart, we can see that the Australian Market did suffer from the disruptive effects of the
pandemic. Its monthly revenue at USD 3000 Million has been relatively stable in 2018-19 until the

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pandemic hits the country, due to which it suffers more than 50% loss in revenue. As of now, it has
shown a V-Shaped recovery and has been reaching its old levels.

Major Fast-Food Providers

The chart shows that McDonald’s is the QSR having the maximum share of customers across the
country at 52.7%. Other than it is to, study consumer behaviour:

- McDonald’s
- KFC
- Subway
- Hungry Jack’s
- Domino’s Pizza

Number of cafes and restaurants in Australia: State-wise

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 Number of outlets in Australia: State-wise

From the charts given above, it can be seen that Victoria, South Wales and Queensland account for
72% of all the outlets present in the country. However, the three regions account for 35.88% of the
area of the Australian subcontinent.

The second chart shows that regions, namely Northern Territory, South Australia, and Western
Australia are having a minimum number of outlets out of 10,000 people with an area of 63.21% of
Australia. Hence, these regions are of utmost importance to us.

Revenue and Gross Operating profit of restaurant and food industry

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In the chart, it is very clear that the revenue did suffer from the pandemic but there wasn’t much effect
of it over the gross operating profit. Instead, the gross profit really got boosted from the pre-pandemic
levels and reached 3.40 billion Australian Dollars. The reasons are mentioned below:

1. Most of the restaurant owners changed their positioning. They either created food that should
be served quickly, casually, and cheaply or in a format that is lengthy and expensive.
2. Lee Ho Fook, a restaurant once known for serving on any occasion, has now changed into a
luxury dine-in. People have to pre-book in advance, and the whole experience changed. This
thing happened due to the government distancing regulations, and business owners adapted to
the situation.
Habits & Preferences

Australians love eating diverse cuisine ranging from Chinese to French as well. Some of the critical
habits of Australians regarding their eating habits has been provided below:

1. Australians love for Junk Food

• Of the daily energy intake of an average Australian adult, 35% of the energy is derived
from Junk food. For the children aged in the 14-18 years range, 41% of the energy is derived
just from fast food.
• Other than that, Australians, on average, consume over 3kg of food daily. This shows how
much importance and love food holds in their lives.
2. Going to plants over meat

In recent years, the CSIRO has been warning Australians for not eating enough vegetables in
their diet. This has generated a change of preferences in persons from meat to a plant-based
diet. About 14% of the Australians are making efforts towards avoiding red meat entirely and
this is quite significant for a country having a solid beef industry.

3. Increased interest in traditional food

The Processed food industry is becoming less popular as the awareness among people for
nutritional foods has food has fast increased in recent times. Products such as sourdough bread
and traditional pasta have seen increased sales, and people have shown trust in these kinds of
foods.

Tastes & Interests

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 Preferences Of Customers for Different Types of Cuisines

Through the chart, it is evident that Australians love a diverse variety of foods, and their love for
Chinese has been the highest standing at 70%. Other than that, their love for Indian food is also quite
standing at 51%. Hence, this gives a positive signal for Indian cuisines to enter the market having good
potential.

To know the tastes Australians like, we need to understand what Australians really look into food. A
chart has been given below displaying key attributes and their importance through ratings (1-5)

Chart Has Been Given Below Displaying Key Attributes and Their Importance Through Ratings (1-5)

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From the data, we can say that Australians put freshness of food and its safety over top priority. As we
stated earlier, Australians love eating junk food. The above chart justifies our finding as they are less
bothered about GM-free and Organic food.

Hoefstede’s Model for Australia

38 90 61 51 21 71

Power Uncertainty Long Term

Distance Individualism Masculinity Avoidance Orientation Indulgence

Power Distance

Inside Australian firms, communication is informal, direct and inclusive. Superiors are consistently
open, and managers depend on both individuals and groups for their skills. Both managers and
employees are consulted, and information is shared frequently.

Individualism

Australian culture is profoundly individualistic – people take care of themselves and their nest. In an
organizational set – up, employees are generally independent, proactive and hard-working. The work
culture is characterized by a transactional nature. For recruitment and elevation, calibre and evidence
of what a person has achieved and what their capability is!

Masculinity

Australia is a male-dominated society with a patriarchal sociological system. Conduct in school, work,
and play depends on the common qualities that individuals ought to "endeavour to be all that you can
be" and that "the champ brings home all the glory." Australians are pleased with their victories and

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accomplishments throughout everyday life. It offers a reason for recruiting and advancement choices in
the work environment. Clashes are settled at individual levels, and the objective is to win.

Uncertainty Avoidance

In Australia, there is a balance between following specific codes of conduct, belief and behaviour; and
being tolerant and welcoming unexpected change. The value system is of importance, but at the same
time, weightage is given to accepting new dimensions and perspectives to take steps towards a better
future and being at par with the world. There is a certain degree of exercising control towards the future
and some leeway towards letting it happen organically.

Long Term Orientation

Australia leans more towards short-term orientation than the long term. With a normative culture and
normative thinking, the society has a deep respect for culture and tradition with significantly less focus
on saving for the future and look for fulfilling goals in a shorter period.

Indulgence

Australia is an Indulgent country. Individuals in social orders grouped by a high score in Indulgence,
for the most part, display an ability to understand their driving forces and wants while appreciating the
joys of life. They get inspired and are optimistic. They place a more significant emphasis on recreation,
follow their hearts and do not resist spending accordingly.

Communication Styles

Australia is an example of low context culture.

Australia - An example of low context culture

Verbal Aspects

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• Direct Communication

In Australia, one's social standing or place in a discourse is not clearly discernible just on their
looks. As a result, communication is more straightforward and functionally oriented in order to
deliver one's point clearly. To remain courteous and avoid controversy, criticism can be given
in a vague manner, but an Australian's intention and meaning are usually obvious through their
precise word choice. They have a tendency to communicate openly while maintaining a
respectable level of sensitivity.

• Accent

Most Australians have the ability to switch from a heavy Aussie accent to more polished speech
with ease. For example, outsiders may be astonished to hear Australians speak in a polished,
well-pronounced manner to them, but they may mistakenly use a strong "ocker" accent with
other Australians or while drinking.

• Physical Contact

Unless they are close friends, people rarely touch each other during communicating. Touching
someone on the shoulder or the arm to emphasize a point is typically acceptable, but it might
be perceived as a sexual advance if done inappropriately. Women have a stronger bodily bond
with one another than men.

• Silence

When the social talk is interrupted by long periods of quiet or pause, Australians become
irritated and want to fill the void with dialogue.

• Slang

Australians use slangs throughout their speech. The understanding of certain slang words varies
between age groups, gender and areas, but people in Australian frequently shorten any words
that seem overly complicated by using abbreviations. Sometimes these are in on the spot
inventions that are not commonly known.

• Humour

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 Humour is used a lot in Australian communication, so expect some light-hearted jokes in many
conversations. Jokes about situational circumstances are often used to lighten moods and
approach difficult topics in an indirect and different way. Australian sarcasm can be dry,
humorous, and straightforward, and it can be difficult for outsiders to tell when individuals are
joking because Australians don't usually stop to clarify.

• Swearing

In Australia, swearing is more common than in many other cultures. Television shows are less
restricted, and mainstream society has become desensitised to statements that may offend
foreigners. During a conversation, it is common to hear an Australian swear at some time.
Doing it on your own is unlikely to harm your relationship with them; in fact, the informality
of it may make them feel more at ease around you.

Non-Verbal Aspects

• Physical Contact

Unless they are close friends, people rarely touch each other during communicating. Touching
someone on the shoulder or arm to emphasize a point is typically acceptable, but it might be
perceived as a sexual advance if done inappropriately. Women have a stronger bodily bond
with one another than men.

• Eye contact

Direct eye contact is important because it conveys honesty, trustworthiness, and

approachability. However, it is critical to break eye contact on a regular basis, as holding it for
long lengths of time can make Australians feel uneasy. Make equal eye contact with everyone
in the room when speaking to a group. Aboriginal Australians, on the other hand, are more
likely to look away during discussion. Direct eye contact, especially with someone older than
oneself, can be seen as rude or hostile in Indigenous cultures. This could also apply to
Australians who come from cultures where direct eye contact is frowned upon.

• Personal Space

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 When talking, Australians normally maintain a gap of approximately an arm's length between
them, with a bit additional between men and women depending on how well they know each
other.

• Pointing

Australians use their index finger to point, although it is considered impolite to gesture straight
at someone. Rather, they should be addressed verbally.

• Obscene Gestures

Raising one's middle finger or making the "V" sign with one's palm towards oneself is regarded
extremely impolite in Australia.

• Beckoning
Australians call people by waving their palms up in the air and waving them over.

Other Elements of Australian Culture

• Egalitarianism
In Australia, egalitarianism is a solid foundation for interpersonal ideals. People think that everyone has
the right to a "fair shot," regardless of their background. It has been called a classless society because
Australians do not consider in terms of one individual being better than another; instead, those who are
fortunate are simply accepted as "better off" than others.

• Authenticity

Australia's culture is predominantly Western, originating from Britain. Still, it is also impacted by the
country's distinctive topography, as well as the cultural contributions of Aboriginal, Torres Strait
Islander, and other Australians. In 1788, the British began colonizing Australia, and waves of multi-
ethnic migration followed.

• Optimism

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Cultural humility suggests remaining humble and aware of one's insufficient knowledge of other
cultures. ... Cultural humility also requires us to be critical of our own cultural biases.

• Humility

Cultural humility in Australia entails remaining humble and cognizant of one's lack of cultural expertise.
We must also be critical of our own cultural biases to be culturally humble. Cultural humility entails
remaining humble and cognizant of one's lack of cultural expertise.... We must also be critical of our
own cultural biases in order to be culturally humble.

• Informality

Australians aren't known for their formality. You may be accustomed to addressing your university
professor by their surname, but Australian professors are considerably more likely to request that you
address them by their first name, if not a nickname. Don't worry; this isn't seen as impolite or
disrespectful. Because most Australians are laid-back, they'll understand if you choose to be formal at
times.

• Easy-going

One thing that Australians are recognized for around the world is their laid-back, welcoming
demeanour. Of course, food, events, art, and history are all important aspects of Australian culture, but
an Aussie's laid-back attitude is what truly differentiates them. It's how pals show up unexpectedly for
a catch-up (but always with a six-pack of beer in hand). It's the reason you'll hear strangers on the street
say things like, "no worries, mate." Most importantly, it's about putting stress aside and focusing on the
positive aspects of life that are right in front of you.

• Common sense

According to the SBS Cultural Atlas, Australians emphasize common sense and optimism and a few
essential personality traits such as mateship, equality, and a laid-back attitude. In essence, Australians
are laid-back individuals who have time for everybody at any time.

• Humour

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Australian humour is recognized for being sardonic and a little dry. It's distinct, and Australians are
known for being snarky with their pals. This is a sign of the strength of interpersonal interactions.
Although Australians are proud of their country, they frequently tease themselves as part of their
comedy. It's generally done in light-hearted situations to put everyone at ease.

Business Culture in Australia

• Meeting

o In a professional situation, irritability reflects poorly, so arrive on time or slightly early. If you're
the meeting's chairperson, it's even more important to get the meeting started on time.
o Without any formality, business cards are exchanged during introductions. If this is not done,
they will only be handed out if there is a need for another person's contact information as a
result of talks.
o You may use your complete name to introduce yourself, but they will address you by your first
name.
o Break the ice with a few minutes of social talk before getting down to business. To prevent
intruding on others' private life, this should normally only be used for impersonal matters (such
as the weather).
o To lighten the mood, Australians may utilise comedy in their dealings. Reciprocate in order to
create a conducive environment for conversation. Furthermore, don't be startled if they employ
colloquial language that might be considered impolite in your own nation (e.g., swearing can
be common).
o Give the impression that everything is in control and well managed. No matter what the
situation, Australians prefer to be at ease when it comes to business.

• Communication and relationship

o When it comes to business communication, Australians are blunt and forthright. They are rarely
intimidated by others' positions of power, and they communicate their opinions in a
straightforward manner. Similarly, people like to be presented with the facts as they are and
will ignore arguments based on emotional exaggeration, such as inflated statements. When
presenting a proposal, focus on the facts, figures, and goals rather than the extraneous details.
o Even if they disagree with you, Australians are likely to be open. This isn't to mean they'll be
rude (they'll typically be diplomatic), but expect them to get to the point quickly and without
euphemism.

• Hierarchies

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 Managers may appear to be just another member of the team at first glance, as they merely
maintain a marginal power distance. Nonetheless, hierarchies remain unmistakable. Managers
often aim to make choices in an inclusive manner so that employees feel participated in the
process. As a result, stern directives are despised and regarded as arrogant. Instead, instructions
are usually implied, and directions are polite pleas (e.g., “Perhaps we should try...” or “Do you
think you could...”). This reduces workplace regimentation and formality, yet it is known that
these ideas must be followed as if they were solid directives.

• Considerations

o While it is not customary to give gifts in business, it is tremendously appreciated and praised
when it is done. If you do decide to gift one, make certain it does not appear to be a bribe. Gifts
presented to a partner while waiting for them to make a decision, for example, would appear to
be inappropriate. Gifts provided at the close of a contract or the conclusion of talks, on the other
hand, are considered congratulations.
o Gifts to employees of government funded organisations may only be allowed if they are small
in value and must be declared in advance to Human Resources or Finance.
o When confronted with an issue, Australians prefer to find a quick solution and move on rather
than think about it.
o In Australia, nepotism is uncommon because the potential for bias that could result from it is
incompatible with egalitarian beliefs. If family members are to be engaged in corporate
organisations, they must be hired only on the basis of merit and competence.
o Because business culture places a high importance on reliability, it is frequently remembered
when commitments are broken or deals go through.
o You are not required to drink alcohol at work functions if you do not want to.

About Junoon by Vikas Khanna

The Man behind Junoon - Michelin Star Chef Vikas Khanna

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Vikas Khanna is a New York-based Indian chef, restaurateur, cookbook writer, filmmaker, TV Host
and humanitarian. He is the Executive Chef of Junoon, 8 – time Michelin Star Recipient restaurant,
which Khanna set up with Delhi-based restaurateur Rajesh Bhardwaj. According to the multitalented
celebrity chef, billionaire guests from America and overseas fly in their private jets only for a meal at
Junoon. The restaurant presents the Indian cuisine suited for the global taste palette.

Writer of over 28 books, Vikas considers himself the brand ambassador of Indian Food. He has had the
chance of cooking in the White House for the President of the US and the First Lady Michelle Obama.
He was also associated with President Obama’s interfaith cooperation and community service. In 2015,
he had been vested the responsibility of serving the best for the UN Assembly’s Conference of Prime
Minister Narendra Modi and the total net worth of all individuals amounting to a net of US$4.7 trillion,
making it the most expensive dinner of the world.

Vikas Khanna has two more restaurants in Dubai – Ellora and Kinara – similar to Junoon, also serve
Indian food and have put Indian Cuisines on the world map.

Offerings

The menu here is divided in 2 parts 60% of which includes authentic north Indian dishes and the
remaining 40 percent of the menu is made up of classic Junoon dishes, such as the decadent tellicherry
duck ($40). The Ghost Chile Murgh Tikka ($22), a hot concoction for tandoor chicken thighs nestled
in a ramp mousse with pistachio crumble and grape chutney, is another fan favourite.

A seven-course tasting menu ($115 per person) will be available for those who want to sample Junoon's
more opulent offerings. It will feature items not available a la carte. Three-course prix-fixe menu,
consisting of an appetiser, entrée, and dessert, costs $85.

It's a sophisticated fine dining establishment with an extensive wine list and top-notch drinks. The area
is more intimate, with fewer tables, and the experience is no longer limited to a tasting menu and formal
service.

The restaurant has 42 seats in the main dining room and a pastry counter where pastry chef Gustavo
Tzoc prepares all pastries.

Segmentation, Targeting & Positioning

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Targeted Customer Segment

Junoon is a Michelin Star restaurant by Chef Vikas Khanna whose aim is to popularize Indian cuisine
abroad. Our target market will be a niche that includes all those willing to try new authentic Indian food
in Australia. This consists of the innovators and early adopters. People who are most receptive to new
ideas and technologies are self-directed, make a large number of financial expenses will be our niche
target market. Our initial target market will be those prospective consumers who are up to date with the
latest trends, are very socially active and go against the current mainstream. Having said this Junoon
has premium pricing, which will cater to consumers who have a high purchasing power capacity. We
aim to target the urban population of Australia, in the major capital cities, which forms the significant
chunk of our target segment.

Australian Population in Capital Cities

8%
13% 33%
15%

31%

Sydney Melbourne Brisbane Perth Adelaide

According to a study by Australian Bureau of Statistics 89.55% of the Australian population resides in
urban areas out of which 66% is concentrated in the major capital cities. The pie chart gives us an idea
about the geographical location of our target market, which is most likely to be in Sydney or Melbourne
as per the population statistics.

Positioning Strategy

Junoon, which means “Passion” in Hindi is a perfect blend of authentic Indian food innovated to serve
the global taste. Our primary positioning strategy will focus on the authenticity and quality of Indian
food which will be served at Junoon. As per a report by Flanders Investment and Trade Market Survey
Australia had 29% overseas residents in 2018, which has gradually increased due to which the
popularity of other cuisines is rising.

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 Graph showing preferences of Australians

The above graph clearly shows the dominance of Asian cuisine in Australia, Chinese cuisine being the
most preferred to about 70%. This is because of the increased immigration from other countries. Thai
food is equally popular after the Chinese cuisine being preferred by 58% of people. We can clearly
analyse from the graph that 48% -51% Australians enjoy the Indian cuisine, which is an advantage for
launching Junoon. We will leverage this opportunity and cater to the Australian market with authentic
Indian food adjusted according to their taste.

The second part of our positioning strategy will be related will the Status-Quo. Those people who are
highly conscious of their social circle and maintain a high standard of living will be our prospects as
we Junoon will provide that experience and authenticity they are looking for.

Income & Expenditure Analysis

An average Australian's total consumer disposable income is expected to become more than double by
2040, owing to a bright labour market and stable economic performance. The population aged 45-49
was the highest income per capita cohort in 2019. But, by 2040, this is expected to be transferred to
those aged 50-54, who are present-day millennials.

Today, millennials are digital natives – growing up with and in the internet age, widely connected
through various smart devices, and having considerably different priorities than previous generations.
Millennials are all about sustainability, smart spending, and emphasis on values in private and
professional lives. These preferences are expected to have a high impact on the future of discretionary
spending in Australia

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According to the forecast, Australia is expected to remain 5th out of 84 countries in the Wealth Index
in 2030, while wealth will continue to be highly concentrated. The Australian Bureau of Statistics, in
2018, concluded that the top 20.0% of households’ net worth was more than 93.0 times that of the
lowest, which accordingly constituted USD3.2 million versus USD35,200.

Gross Income Growth Index for Australia (2019-2040)

The line graph above forecasts that the Gross Income of the Australians continues to rise with a
promising growth rate in the years ahead till 2040. Thereby increasing their disposable income and
ultimately increasing their purchasing or spending capacity. Disposable income is to nearly double by
2040, facilitating the expansion of the middle class in Australia. Social classes D and C (the lower-
middle and middle classes) are expected to achieve considerably higher growth compared to the world
and developed countries' averages.

Consumer Spending by category in Australia (2019-2040)

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The graph speaks that the consumer spending capacity of Australians is going to increase in almost all
categories, with housing becoming their top priority with the maximum increase in consumer spending
and Food and Non-Beverages being the fourth highest. New entrants are expected to meet the increased
demand.

Social Class by Age (2019/40)

In 2019 and likewise in 2040, the Australian consumer group aged 65+ will be predominant among the
highest income earners of more than USD250,000, shaping luxury spending patterns in Australia. In
2018, the workforce participation rate for Australians aged 65+ was 13.0% (out of the total 65+
population), which is considerably higher than in Western European countries like Germany, France or
Italy.

Location

The location of Junoon by Vikas Khanna will be in Melbourn. With a diverse community, people have
come from many parts of India and belonging to different linguistic and cultural groups. Indian Culture
is flourishing in Australia. According to the 2016 Census, more than 22,000 residents were born in
India, and each year, the Australian community enjoys many significant Indian cultural celebrations.
The love for Indian food and culture has seen an upward trend in Australia over the past decade. Hence
a fine dining experience provided to our audience is the objective to be achieved with the opening of
Junoon in one of the major posh cities of Australia.

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 7Ps of Marketing for Junoon

Product
The restaurant serves
Physical Evidence
traditional Indian Cuisine
Physical Evidence would
with a modern take and an
involve Service Provision,
innovative, global
Ambience, Themes, Food
interpretation.
and overall experience.

Price
Process The pricing strategies used
Important processes would be a combination of
involved here are Premium Pricing and Value
Information Flow, Inventory 7Ps of Based Pricing.
Management, Kitchen Marketing
Procedures, Reservation
Handling, Preparation and
Service, Cleanup.
Promotion
Below the Line (BTL) and
People Through the Line (TTL)
Key people would be Advertising shall be used to
Restaurant Managers, promote the restaurant since
Chefs, Waiters, Wine it caters to a niche.
Sommeliers and other Place
hospitality staff. The location selected for
Junoon is Melbourne.
Competitor Analysis

Having a considerable amount of Indian population in Australia it has a few numbers of posh Indian
restaurants as well. Some of the restaurants which are likely to be The Junoon’s competition include -

1. The Grand Pavilion – Sydney

The Grand Pavilion

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The Grand Pavilion is an Indian Restaurant located in Warners Bay, Sydney, and the central coast has
got charmed with such an incredible success of the restaurant. The items included in the menu are
consciously placed based on individual taste preferences. The revived interiors keep one gripped with
the memories of the food enjoyed in the company of the loved ones. The menu is quite carefully
designed to include both vegetarian as well as non-vegetarian Indian dishes.

2. Zaafran – Sydney

Zaaffran

The elegant and much-talked-about Zaaffran Indian Restaurant was established in 1998 with a simple
aim - 'to serve authentic, homestyle Indian cooking, just like Indian mums would make'. Zaaffran's
mission revolves around proving that Indian cuisine can be as subtle and finely balanced as any of the
world's most sumptuous cuisines. They chose the name Zaaffran (meaning saffron) because it is the
world's most valuable spice. Their menu, which changes frequently, does have some traditional
favourites, but our emphasis is on unique, rare, and treasured recipes gleaned from households of India,
not from commercial Indian kitchens.

3. Punjabi Fusion – Sydney

Punjabi Fusion

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Established in 2016, with an intent to introduce regional flavours of the North-Western Indian state –
Punjabi Fusion is today one of the most well-known restaurants in Sydney. Punjabi Fusions has a team
of qualified chefs hail who are from five-star hotels in India. They possess the knowledge, experience,
and cooking techniques that amplify their dishes. This allows them to reach new heights and create
dishes that govern modern Indian cuisine. Their charcoal tandoor allows their chefs to use specialized
cooking techniques to generate more wholesome and smoky flavours into their dishes

4. Attica – Melbourne

Attica

Cutting the World’s Top 50 is the restaurant located in Melbourne’s is the cherished and ever-
performing Attica. New Zealand-born Ben Shewry can add this year’s #32 to an already expansive list
of accolades. It provides its customer with a witty, playful menu resting heavily on native ingredients
sourced from a nearby garden plot in Melbourne’s Ripponlea Estate; Attica is a Michelin shoo-in.

Conclusion

The current food and restaurant sector of Australia is set for new highs. After the lockdown, the
restaurant owners changed the problems into new opportunities, and we saw how they managed to boost
profits even in hard times. Through the cultural analysis, we got to know how Junoon by Vikas Khanna
can be potentially successful in the field of fine dining. We observed the core fundamentals of the
restaurant through an analysis of 7Ps and their ground with respect to competitors. Additionally, we
learned how culture plays a significant role in shaping the market scenario and the economy. With our
analysis, it is evident that Australia can become one of the critical markets for Junoon, and they will
continue to ride their success train forward in the future.

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Recommendations

From the discussion so far, we have clearly understood about various dimensions of fine dining
restaurants of Australia, their culture and how Junoon by Vikas Khanna can enter the market. But to
become potentially successful, we have recommended some critical points from the discussion given
below:

A) Adoption with change in consumer demographics

As we discussed earlier, we have seen that change in consumer demographics is evident. The average
disposable income of consumers has been increasing year on year, and by 2040, it will boost by 60%.
Also, Australians prefer to dine in with different varieties of cuisine. So, Junoon by Vikas Khanna
should offer dishes positioned as a blend of different cuisines and cultures with Indian culture.

B) Store layout with a blend of Australian Culture

Through the Hofstede cultural framework, we got to know about Australians cultural aspect, i.e., being
individualistic in nature, natural achievers, aspires for a joyful life and prefers to have flexible
workplace orientation. Hence, our recommendation for Junoon would be that they should set the
ambience of the restaurant, which admires flexible work culture. Also, the staff of the restaurant should
be flexible in their attitude to display a sense of happiness in the restaurant.

C) Leveraging current scenario of Australia

One of the key findings we got to know was the end of mid-tier restaurants. Today, people are willing
either to visit small, affordable QSRs or high-end premium restaurants for dining. The middle ground
has ended in Australia as restaurants converted themselves, taking advantage of government norms. So,
we recommend that Junoon retains its positioning strategy of being posh and premium that they have
used in Manhattan.

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Appendix/Glossary

Particulars Group Member Responsible Page Number

Executive Summary Shubhi Goel 2
Introduction Sakshi Goyal 5
Objectives Srushti Thaker 5
Methodology Sakshi Goyal 5
Overview of Australian Culture Priti Agarwal 5
Australian Food Industry Raghav Khandelwal 7
Hoefstede’s Model for Australia Shubhi Goel, Raghav Khandelwal 13
Communication Styles Khushi Kushwaha 14
Other Elements of Australian Culture Khushi Kushwaha 19
Business Culture in Australia Khushi Kushwaha 20
About Junoon by Vikas Khanna Shubhi Goel 20
Offerings Khushi Kushwaha 21
Segmentation, Targeting & Positioning Sakshi Goyal 21
Income & Expenditure Analysis Priti Agarwal 23
Location Srushti Thaker 25
7Ps of Marketing for Junoon Shubhi Goel 25
Competitor Analysis Srushti Thaker 26
Conclusion Raghav Khandelwal 28
Recommendations Raghav Khandelwal 29
References Shubhi Goel 30

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