PROJECT REPORT

On

Al Baik

M.com IV Sem – Marketing Management

(Session 2020-21)

THE BHOPAL SCHOOL OF SOCIAL SCIENCES

Submitted to

Submitted by

Dr. Amrita Sahu Sarfaraz Ali

Associate Professor Roll no. 19103047

Department of Commerce
 CERTIFICATE FROM THE PROJECT GUIDE

This is to certify that the Project Report titled “Marketing Analysis of Al Baik” is a
bonafide work of SARFARAZ ALI enrolment number R170190280581 undertaken
for the partial fulfillment of Masters in Commerce (M. Com) degree of Barkatullah
University under my guidance. This project work is original and has not been
submitted earlier for the award of any degree or diploma of any other University or
Institution.

Signature of the Guide

Dr. Amrita Sahu

Associate Professor

Department of Commerce,

BSSS, Bhopal
 DECLARATION

I SARFARAZ ALI Son of ZAFAR ALI certify that the project report entitled
on “Marketing analysis of Al baik”, marketing analysis report on Al baik, prepared
by me is my personal and is authentic work under the guidance of Dr. Amrita Sahu,
Associate Professor, Department of Commerce.

Signature of the Student

Place: BHOPAL SARFARAZ ALI

Date: 15/06/2021 M.COM (IV SEMESTER)

Roll Number: 19103047

History of al- baik

In September 1974, a Saudi entrepreneur Shakour Abu Ghazalah, renovated an old

warehouse he was renting into Saudi Arabia's first pressure fried chicken restaurant
and later opened it.] The restaurant was located on Old Airport Road in jeddha was
registered as a trademark in Saudi Arabia in 1986.

The first Albaik restaurant was opened in Mecca in 1990. Albaik then began
expansion by building three seasonal locations in Mina in 1998 and served pilgrims
during Hajj. The company expanded to Medina in 2001. They introduced a limited
menu food court concept named Albaik Express in 2002 in Diyafa Mall in Mecca.
They opened the world's largest quick-service restaurant kitchen in Mina as a
seasonal restaurant to serve pilgrims during Hajj in 2006. The same year, they
opened a location in Yanbu City. In 2013, they opened their first express restaurant
at a Sasco Petrol station on the highway road from Medina to Jeddah.

Their first restaurant out of Hejaz was in Buraydah, Qaseem in 2015, expanding their
customer's range. They opened their first branches in Jizan and Riyadh in the year
2016 and 2018 respectively. In 2019, they opened three branches in Dammam,
Eastern Province, with the main one located in King Fahd International Airport and
the other two in the Abdullah Fuad and Al Manar districts. On June 16, 2021, Albaik
opened its first branch in The Dubai Mall, bringing its range of dishes to the United
Arab Emirates for the first time.

A 30,000 m2 (320,000 sq ft) food processing company was inaugurated for Aquat
Food Industries - a sister company of Albaik and the main producer and supplier of
its menu in 2000, effectively boosting their sales.

Branches of Al-baik

Albaik has more than 40 branches in Jeddah where it is headquartered: ten in

Mecca, eight in Medina, two in Buraydah, one in Taif, one in Yanbu, one in Riyadh,
one in Al Qunfudhah, one in Al Lith, and one in Al-Kharj.

Food items in al – baik

Chicken

• Big Baik Spicy Sandwich. A ginormous chicken fillet breast with coleslaw, ...
• Big Baik Sandwich. A ginormous chicken fillet breast with coleslaw, ...
• Chicken Fillet Sandwich. ...
• Chicken Fillet Burger. ...
• ALBAIK Chicken Meal. ...
• Chicken Fillet Nuggets Meal. ...
• Chicken Fillet Nugget Snack.

Spicy Chicken and Spicy Chicken Wraps

The Spicy Chicken Wrap recently went through a makeover, one of the best burger
with adjustments made to its size and level of spiciness. The new and improved
Spicy Chicken and Spicy Chicken Wrap retain the component that made them
popular in the first place, the crisp patty. The whole wheat wrap complements the
filling, and there are several health benefits associated with whole wheat products,
and is far healthier than ‘maida’ alternatives.

Products

The 18 secret herbs and spices recipe was first developed in 1984. Variations of the
Albaik chicken was first sold in 1994, with the addition of Harrag, a spicy variation
of Albaik's chicken. Seafood was first included on the menu with the introduction
of the jumbo shrimp in 1995 and the value shrimp in the following year.

A fish fillet meal at Albaik

 •

An Albaik chicken meal with fries, soft drink and ice cream

Marketing strategy of al- baik

Al-Baik is following a strategy that combines differentiation and cost leadership. 1)

Many restaurants serve fried chicken however; the quality and the unique flavour
and taste of food served in Al-Baik made customers crave their food. 2) The
competitive pricing of Al-Baik are below the average

Let’s shed some lights on Al-Baik main success recipes:

– The Quality & Price:

– for those of you familiar with the debate surrounding Porter’s Generic
strategies, Al-Baik is a living proof that you could follow a strategy that combines
both differentiation and cost leadership. Although there are a lot of restaurants
serving fried chicken, the quality and taste of Al-Baik are certainly unique and its
prices are way below the average.

The Trustworthy Brand:

– Al-Baik has a very strong brand equity whether we are measuring it by

evaluating the restaurants’ products or by studying its brand impact on customers.
Al-Baik brand communicates strong messages of quality, fast service, trust,
affordability, convenience, and social responsibility. Its management has been very
smart emphasizing these values into the brand using different methods of
advertisements, public relations, or even by spreading stories about the brand. The
entrepreneurial story of its founder and how he struggled to raise his community
awareness about eating outside the home which was strange back then and how he
has been working alone in the restaurant preparing the food, serving it, and then
cleaning the small shop are all meant to build some kind of connection with its
customers. Also, some suspense and mystery would not hurt either; the secret
chicken formula that is only known by few individuals is one of the most preferred
stories amongst such food and beverages organizations (didn’t you hear similar
stories about Coca Cola, Pepsi, and KFC?)
– Superb Customer Service:
– whether we are talking about fast service, services cape design, or cleanness
of the restaurant’s environment; Al-Baik is providing exemplary services in all of
that. Even more, Al-Baik is one of the few restaurants that introduced items to the
menu based solely on customers’ suggestions.
–

– Convenient Locations
– : Al-Baik marketers are masters in choosing locations for their restaurants; I
have never seen a branch of Al-Baik without it being packed with customers. The
huge expansions they carried out in Jeddah have been built on population
distribution analysis. That is why wherever you live in Jeddah now; there must be
Al-Baik branch within your easy reach.
–

– Social Responsibility
– Al-Baik has always been known for its socially related campaigns. They have
a regular presence in Hajj seasons providing free meals to pilgrims and they are
periodically campaigning for environmentally related causes like banning smoking
in their restaurants or preserving the city clean image. Furthermore, their active
participation in the aftermath of Jeddah floods by providing free meals to those
devastated by the catastrophe is one shiny example of how organizations could be
interacting with its society.

Nevertheless, staying on the top is not an easy job. Al-Baik management has to deal
with many issues to facilitate its growth. One of these important issues is on the mind
of every fan who happen to live outside Jeddah; how much should they expand?
Should they consider opening new branches in other cities at the Kingdom? What
about being multinational or even global?

Moreover, how Al-Baik should respond to the growing concerns raised by healthy
and organic foods advocates (it is selling fried chicken, right!!)? And most
importantly, how its managers are going to maintain its competitive advantages and
how are they going to nurture its sustainability strategy?

Finally, the free spirit statement; this is to confirm that I do not know, or have any
relation with anyone working at Al-Baik management or restaurants, and this post
has not been influenced by Al-Baik or any of its partners in any way …
freshness issues. The raw materials will be easily available in UK. However, Al Baik
will build its brand not only on the taste of the secret recipe that it uses in KSA but
also on the quality and freshness of the ingredients which can appeal to the health
conscious consumers of the area

Market entry and operations strategy

There are two main strategic decisions involved in the expansion to the EU market;
the mode of entry and the sustained operations in the region.

The mode of entry can be determined based on the extent of the differences between
the UK and the KSA market and the objectives to internationalize of Al Baik as a
brand. The sustained advantage has to come from the knowledge of the food industry
and the macro environmental factors

discussed above. However, for both of these, it is important to first understand the
dynamics of Al Baik itself as a company

The SWOT analysis for AL Baik is conducted below

to analyse the internal strengths and weaknesses of the firm and its opportunities and
threats in the external market

SWOT Analysis:

Strengths

Well established brand in the KSA-Possess manufacturing and marketing experience

financial strength
developed over the years Fast food including chicken breast, nuggets and sandwiches
not culturally sensitive and are globally marketed.

Weaknesses

No footprint in UK-High cultural differences between UKand KSA which can

hamper marketing-Low chances of financing within UK

Opportunities

Further expansion in EU after settling UK-Grow into other food lines, increase
product propositions-Venture into other lines of cuisine including Middle Eastern
Cuisine under same or different brand name

Threats

-High competition within the market; failure to gain market share

-There are various entry mode strategies that Al Baik can choose from. The first one
of these options is exporting. However, this option is not feasible due to the nature
of the product involved which is perishable and cannot be transported over the long
distance between UK and KSA. Other non-equity models include franchising and
licensing which involve a lower risk. However, these entry modes are not
recommended because Al Baik has not established abrand name in the country yet.
In fact, it is only limited to the KSA currently.

Marketed Weakness

No footprint in UK-High cultural differences between UK and KSA which can

hamper marketing-Low chances of financing within UK-Opportunities-Further
expansion in EU after settling in UK-Grow into other food lines, increase product
propositions-

Venture into other lines of cuisine including Middle Eastern Cuisine under same or
different brand name Threats-High competition within the market; failure to

Steps to open franchise of al-baik in India

Franchising your business is a demonstrated course to quick growth. Be that as it

may, turning into a franchisor is not a programmed ticket to achievement,
particularly in this testing economy. Talk about an easy win! AL-BAIK.COM is
among the most identifiable brands in India. Since 2009, when AL-BAIK.COM
initially opened its first restaurant in Lucknow, it has developed into one of the
biggest chains of chicken fast-food restaurants in India.

AL-BAIK.COM has been a franchising organization since 2009, and has depended
on its franchisees to assume a noteworthy part in the framework's success.

Before you settle on the choice to open a AL-BAIK.COM franchise, you need to
look over a copy of its Franchise Disclosure Document (FDD). This is a document
that gives a broad outline of the rights and responsibilities of an AL-BAIK.COM
franchise proprietor.

It contains fundamentals of cost, area, training, operations, and the progressing

expenses required in working an AL-BAIK.COM franchise. The document contains
a great deal of lawful and business terms, so on the off chance that you don't have a
broad foundation in law or business you might need to employ a business or
corporate lawyer to help you interpret the FDD. You need to ensure you completely
comprehend your rights and responsibilities before focusing on a franchise.
What do you need?

Setup Cost As Low as 3 Lakhs

Number of Staff As Low as 3
Required
Area Required Minimum 300 Square
Feet
Average Order Value Rs. 99 - Rs. 400
Number of Branches 85+
Most AL-BAIK.COM owner/operators have entered the corporation by purchasing
an existing restaurant.
• An AL-BAIK.COM franchise requires a total investment between 8 Lacs to
12 Lacs
• An AL-BAIK.COM franchise requires an area of around 300 - 500 Square
Feet
• Recommended staff is about 3-5 and may vary depending on the location

How do you qualify to be a Franchisee?

There are several factors we consider when assessing an applicant desiring to

become a AL-BAIK.COM franchisee, including but not limited to their:

• Multi-Unit Operations Experience

• Financial Qualifications
 • Personal and Financial Reputation
• Motivation and Commitment
• Culture and Brand Fit
• Growth Mindset

Here are some reasons why you should consider opening an AL-BAIK.COM
franchise

• Popular Brand: Started in 2009 in Lucknow, Al-Baik.Com is a popular

restaurant chain.
• Rich Experience: Decades of industry knowledge and rich experience of
operating multiple Arabic cuisine restaurants.
• Menu Specialties: Al-Baik.Com has professional chefs & specialized
machines for creating specialties like Browned Chicken.

• Attractive Returns: ALBAIK restaurant franchise is a moderate investment

business offering attractive returns.
• Growth Opportunity: Food & Beverage (F&B) is a rapidly growing and
profitable industry; hence the market is ripe and the opportunity is right to
enter this business.
• Recession-free Business: Food business is unaffected by the ups & downs
of the economy, since food and socializing are necessities of life.
 • Support System: Brand is committed to offering comprehensive guidance
& operation support to Al-Baik.Com franchisees for mutual growth and
profitability.

values of al-baik

Values

The ALBAIK Culture is and has always been based on 4 main pillars [instilled by
the late Shakour AbuGhazalah - founder of the brand]

Trust

At ALBAIK we are committed to always be Moral in all our dealings, Transparent

about all our actions and Honest in all interactions and announcements.

Respect

ALBAIK is built on Respect with each and every one of the ALBAIK team members
being committed to setting a good example to those around through a Self-
Disciplined attitude, always being Helpful to anyone in need, being Humble in
everything we say and do, and with a Fair and Empathetic manner to everyone we
serve.

Team Spirit

Our brand is built on Team Spirit through our commitment and enjoyment in
working together to continuously plant those MMMMMs and WOOOWs on our
customers’ lips every time, everywhere, the world over … with a Positive Attitude
about everything we do for a healthy work environment.

Always Striving for Excellence

Striving for Excellence is the heart of what ALBAIK always aims to achieve. Putting
MMMMMs and WOOOWs on the lips of our customers’ every time, everywhere,
the world over. This requires extreme commitment from all our team members,
partners and stakeholders to continuously provide our customers with the ultimate
ALBAIK experience

Strategic Planning and Positioning

One of the reasons behind the success of albaik in the western region of Saudi Arabia
was the nationality of the business. Arabs in general started preferring local or non-
American products over American ones in a move to boycott American products
gradually, especially when it comes to food. But when franchising (Licensing) Al-
Baik to Bahrain or Dubai, the nationality of the restaurant will change somewhat to
another Arab nationality, which will not change the consumers perceptions or their
buying behaviour.

The secrets of Al-Baik formulas can be sold to another Arab (Bahraini and Emirate)
franchisors, which will extend the success and pay a decent amount of revenues
using local better inputs in terms of cost and efficiency in order to make the highest
possible margins with holding al-Biak’s value and quality fixed.

Is the chicken subject to health control checks?

Yes, the chicken is imported from high-quality sources that implement the
highest level of health and hygiene standards. The chicken is certified safe
and goes through periodic quality check-ups as per Saudi customs regulations.
In addition, at AQUAT’s food production facility – our sister company –
numerous laboratory tests are done on the chicken at every step of production
to ensure its quality and safety.

We see ALBAIK trucks delivering food to the restaurants - where do they

come from and why isn’t the chicken prepared in the restaurants directly?

ALBAIK products are pre-prepared at AQUAT Food Industries Company

production plant, a sister company of ALBAIK. All ALBAIK menu items are
produced at the plant and then sent to the various ALBAIK restaurants for
cooking and serving. Having the food prepared and packaged in the factory
then sent to the individual restaurants ensures that the quality and standards
are aligned, allowing the restaurants to concentrate on the final stages of
cooking and serving.
 • Why are the pieces perfectly asymmetrical in size?

Chicken is produced in several weights at the farm. ALBAIK’s strict

quality control requires producers to provide us with one specific weight
so as to ensure that each chicken piece is cooked to perfection and with
high consistency

Albaik Food Systems Company

Type Private

Industry Restaurant

Genre Fast food

restaurant

Founded 1974; 47 years

ago,
Founder Shakour Abu
Ghazalah

Headquarters Jeddah, Hejaz

Number of locations +120 (2021)

Area served Bahrain

Saudi Arabia

United Arab
Emirates

Key people Ihsan Abu

Ghazalah

(Chairman)

Rami Abu
Ghazalah

(CEO)

Products • fried
chicken

• fishes
 • shawarmas

• French fries

• soft drinks

• desserts

Revenue ‫﷼‬12 billion (2014)

Suggestion

First let's agree that Albaik is like the Saudi pride (at least in western area) they feel
that this is their gift for world and this is by the way is well deserved pride. Like
MacDonald’s, KFC and Pepsi and Cola for USA. Or Pizza for Italy. Etc.

Al Baik by the way is one of the cheapest restaurants in its kind of food. Let see for
the 4 pieces of chicken different parts (1 Breast. 1 Drumstick. 1 Wing. And 1 Thigh)
the price is 14 SAR the same in any other restaurant’s at least 17 SAR if you compare
with KFC, it 27 SAR. So, it is winning in the Price category.
The Taste if we are talking about the spicy type, it is bearable and not so spicy but
tastes good with a mix of spices, I guess get some origins from Indian spices
specially chilies and other which i don't know may be the founder of albaik
restaurants (the father of current restaurants owner) may be the mix and match and
try until get the right amounts if everything. Me myself I like the spices mix and
crunchy effect of KFC more but albaik is OK too.

Crunchiness if we can accept this as a word KFC win for sure albaik is like having
just a small layer of flour without any Crunchiness at all.

Oil amount in the food it is not as High as KFC or other restaurants so it is not hard
on your arteries.

The main reasons aside from those above reasons is the charity work done by the
founder and his sons (current owners) he gives I believe 1SR from each meal to
charity work whatever it is. Another thing is millions of meals is distributed for free
in Haj season (Islamic pilgrimage) and in Ramadan season (Islamic season).

Also, you can add as its first time it is started it was near the sacred city of Mekkah
so it is visited by millions of Muslims every year so they share their experience while
doing Umrah and Haj and among these experiences is eating albaik so that is why is
highly famous.

If we go for business and Supply Chain it is one of the highly-rated systems for
Supply chain with Regional Factories to prepare semi-cooked products and supplied
to restaurants and the final touch done there adding to this the highly active workers
who really finish your meal in a record time not more than 5 minutes whatever how
many items you bought.
So it is a mix of business and taste and in middle of that love of humans for those
who help by any mean. They should add red chilli sauce for increasing spices in
there product if the chilli sauce add in the product people will like it more in India
people like spicy food.