EXECUTIVE SUMMARY

The aim of this study is to investigate the factors that are influencing consumer decision-making process in relation to fast food outlet & restaurant in the Jamnagar city. It further aims to examine how the other major players are responding to changing environment and consumer behavior. This is important and at the same time interesting to observe such topic, because of the high growth seen in these sector and also because of the rapid changing policy and advertisement campaign adopted by the various players so as to meet up, with the consumer expectation and demand. A better understanding of the background and problems related to the fast food issue and context of decision-making process is first obtained via literature review, where various academic journals were examined. Key themes from focus group were helpful in forming questions for the questionnaire. This quantitative survey was then used to gauge whether the views of the respondents from focus group were representative of a larger group. Key themes from focus group are the quality of fast food, ethical aspects (animal welfare), trust towards various players and impact of media and Government on consumer behavior. These themes were then tested to a larger group using questionnaires and other research related methods. Most of the purchases of fast food occur, due to the result of impulse decision-making. Since consumers knowledge/information acquired are the major factor forces behind any decision making process, therefore the advertisement method adopted by various players hold a strong importance.

FAST FOOD INDUSTRY

INTRODUCTION
Fast food is the term given to food that can be prepared and served very quickly. While any meal with low preparation time can be considered to be fast food, typically the term refers to food sold in a restaurant or store with low quality preparation and served to the customer in a packaged form for takeout/take-away.

The fast food industry is defined as the sale of food and drinks for immediate consumption either on the premises or in designated eating areas shared with other foodservice operators, or for consumption elsewhere. Fast food outlets are specialized in burgers, bakery products, ice cream, Pani-puri, hot-dog, Vadapav, pizza, sandwiches, Katka-bread, dabeli bread etc 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 which are part of restaurant chains have standardized foodstuffs shipped to each restaurant from central locations. The capital requirements involved in opening up a fast food restaurant are relatively low. Restaurants with much higher sit-in ratios, where customers tend to sit and have their orders brought to them in a seemingly more upscale atmosphere may be known in some areas as fast casual restaurants. The diversity of Indian cuisine poses logistical problems when it comes to handling. Hence it is common to serve different cuisines at different counters within the same premises. Presence of a large vegetarian population, who eschew non-vegetarian food, has given rise to outlets which exclusively serve vegetarian fast food. Also, different variety of food may be served depending on the times of the day. Beverages such coffee, tea, soft drinks and fruit juices may also be served in such outlets. Some outlets may additionally have specially designed counters for ice-cream, chaats etc.
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Food-service

industry

management

must

place

high

priority

on

understanding the growing markets. This fast growing industry has a huge influence on the global economy; however it is greatly affected by customers ever-changing preferences. It is essential for managers to gain and sustain strategic advantage in the highly competitive industry, however to become and remain competitive in this industry requires a local customer preference assessment. In the ever changing market environment, todays foodservice operators must place a high priority on understanding the market in order to retain and sustain strategic advantage in the highly competitive foodservice industry. Previous research showed that the most important attributes determining whether a customer will return to a foodservice establishment was the quality of service, and the least considered factors were place and ambiance (Namkung, et al., 2007; Bojanic et al., 2007). On the contrary, Knutson, (2000) contended that price was one of the top-ranked influences with regard to foodservice establishment choices. 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

FOOD COURT Another concept of fast food that is becoming popular is that of Food Courts. It is like putting together a number of counters serving different cuisines under one roof. Here also one has to purchase coupons and collect the food from one of the several counters. Each one of these counters serves specific variety of food and may be owned by different individuals or caterers. Food Courts are normally located on much bigger premises and may provide seating facility in addition to the stand and eat arrangement. Typically one entrepreneur owns or takes on lease the entire premises and promotes the place under one name. He then lets out individual counters to different independent operators to offer different menu. Internal competition is avoided by not allowing more than one counter of similar food Several international fast food chains like Kentucky Fried Chicken, McDonald's and Barista Coffee have their outlets in major cities. Caf Coffee Day, again a brainchild of Bangalore based businessman, is the only Indian chain which boasts of hundreds of outlets and is present across India. But then it is classified more as a coffee shop than a fast food place.

History
The concept of ready-cooked food for sale is closely connected with urban development. Popular Indian fast food dishes include vada pav, panipuri and dahi vada.

The fast food industry in India has evolved with the changing lifestyles of the young Indian population. The sheer variety of gastronomic preferences across the regions, hereditary or acquired, has brought about different modules across the country. It may take some time for the local enterprise to mature to the level of international players in the field.

Many of the traditional dishes have been adapted to suit the emerging fast food outlets. The basic adaptation is to decrease the processing and serving time. For example, the typical meal which called for being served by an ever alert attendant is now offered as a Mini-Meal across the counter. In its traditional version, a plate or a banana leaf was first laid down on the floor or table. Several helpers then waited on the diner, doling out different dishes and refilling as they got over in the plate.

In the fast food version, a plate already arranged with a variety of cooked vegetables and curries along with a fixed quantity of rice and Indian flatbreads is handed out across the counter against a prepaid coupon. The curries and breads vary depending on the region and local preferences.

Variants Although fast food often brings to mind traditional American fast food such as hamburgers and fries, there are many other forms of fast food that enjoy widespread popularity in the West. Chinese takeaways/takeout restaurants are particularly popular. They normally offer a wide variety of Asian food which has normally been fried. Most options are some form of noodles, rice, or Manchurian. Pizza is a common fast food category in India, with chains such as Domino's Pizza, and Pizza Hut. Menus are more limited and standardized.

FAST FOOD INDUSTRY IN INDIA

INDIA EMERGING MARKET FOR GLOBAL PLAYERS

The percentage share held by foodservice of total consumer expenditure on food has increased from a very low base to stand at 4.6% in 2010. Eating at home remains very much ingrained in Indian culture and changes in eating habits are very slow moving with barriers to eating out entrenched in certain sectors of Indian society. The growth in nuclear families, particularly in urban India, exposure to global media and Western cuisine and an increasing number of women joining the workforce have had an impact on eating out trends.

MARKET SIZE & MAJOR PLAYERS

a) Dominated by McDonalds having as many as 75 outlets. b) Dominos pizza is present in around 100 locations. c) Pizza hut is also catching up and it has planned to establish 145 outlets at the end of 2015. d) Subways have established around 40 outlets. e) Nirulas is established at Delhi and Noida only. However, it claims to cater 50,000 guests every day.

Major players in fast food are: MCDONALDS KFC PIZZA HUT DOMINOS PIZZA. COFFEE DAY BARISTA.

REASON FOR EMERGENCE

Gender Roles: Gender roles are now changing. Females have started working outside. So, they have no time for their home and cooking food. Fast food is an easy way out because these can be prepared easily.

Customer Sophistication and Confidence: Consumers are becoming more sophisticated now. They do not want to prepare food and spend their time and energy in house hold works. They are building their confidence more on ready to eat and easy to serve kind of foods

Paucity of Time: People have no time for cooking. Because of emergence of working women and also number of other entertainment items. Most of the time either people work or want to enjoy with their family.

Double Income Group: Emergence of double income group leads to increase in disposable income. Now people have more disposable income so they can spend easily in fast food and other activities.

Working Women: Working women have no time for cooking, and if they have then also they dont want to cook. They do not want to confine themselves to household work and upbringing of children

Large population: India being a second largest country in terms of population possesses large potential market fo all the products/services. This results into entry of large number of fast food players in the country.

Relaxation in rules and regulations:

With the economic liberalization of 1991, most of the tariff and non tariff barriers from the Indian boundaries are either removed or minimized. This helped significantly the MNCs to enter in the country.

The main reason behind the success of the multinational chains is their expertise in product development, sourcing practices, quality standards, service levels and standardized operating procedures in their restaurants, a strength that they have developed over years of experience around the world.

Menu diversification: Increase in consumption of pizzas, burgers and other type of fast foods. People are desirous of trying different varieties of food. If we look at an outlet like Dominos, then it provides for vanities of pizzas by making change in the ingredients. To satisfy the variety seeking behavior of the consumers, there has been an increase in the product line and the fast food outlets have to diversify the menu to grab more customers.

CHALLENGES FOR THE INDUSTRY

Social and cultural implications of Indians switching to western breakfast food:

Generally, Hindus avoid all foods that are believed to inhibit physical and spiritual development. Eating meat is not explicitly prohibited, but many Hindus are vegetarian because they adhere to the concept of ahimsa. Those seeking spiritual unity may avoid garlic and onions. The concept of purity influences Hindu food practices. Products from cows (e.g., milk, yogurt, gheeclarified butter) are considered pure. Pure foods can improve the purity of impure foods when they are prepared together. Some foods, such as beef or alcohol, are innately polluted and can never be made pure. But now, Indians are switching to fast food that contain all those things that are considered impure or against their beliefs. Some traditional and fundamentalist are against this transformation of food habit and number of times they provoke their counterparts to revolt against such foods. And that is what happened when McDonalds decided to enter the complexity of Indian business landscape, counting only on its fast food global formula, without any apparent previous cultural training.

Emphasis on the usage of bio-degradable products:

Glasses, silverware, plates and cloth napkins are never provided with fast food. Instead, paper plates and napkins, polyurethane containers, plastic cups and tableware, drinking cartons or PET (polyethylene terephthalate) bottles are used, and these are all disposable. Many of these items are tossed in the garbage instead of being recycled, or even worse, merely thrown on the ground. This burdens nature unnecessarily and squanders raw materials. In order to reduce soil and water pollution, government now emphasizes more on the usage of bio-degradable products.

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Retrenchment of employees:

Most of new industries are capital intensive. There has been an increase in global competitors due to which local outlets are facing a major challenge. The local outlets are unable to update themselves with the automated technology. Yet the local players have to follow the me too strategy. So in order to reduce the total cost of providing services, it has to retrench its employees. However, the multinational National companies because of capital intensive nature opt for automation and the labour is replaced by machines due to which rate of unemployment in the country rises.

Profit repatriation:

Repatriation of profits is another area of concern for Indian economy. As when multinational enters the any countries, people and government hope that it will increase the employment rate and result in economic growth. However, with the multinational operation, host country experiences these benefits for a short time period. In long run neither employment increases (because of capital intensive nature of MNCs) nor it increases the GDP or GNP because whatever MNCs earn they repatriate that profit back to their home country.

Environmental friendly products cost high:

Government is legislating laws in order to keep check on the fast food industry and it is emphasizing more on the usage of bio-degradable and environment friendly products. But associated with this issue is the problem that fast food player faces - the cost associated with the environment friendly product. They cost much higher than the normal products that companies uses for packaging or wrapping their products.

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Balance between societal expectation and companies economic objectives: To balance a societys expectation regarding environment with the economic burden of protecting the environment. Thus, one can see that one side pushes for higher standards and other side tries to beat the standard back, thereby making it an arm wrestling and mind boggling exercise. Jobs and labor issues Today, more than 10 million workers are employed in the areas of food preparation and food servicing including fast food in the world. Employees are the backbone of the fast food industry. Proper training is crucial to the orderly and quick service customers expect. Yet, employee turnover can be as high as 200% per year. With such a turnover, owneroperators of franchise and non-franchise restaurants have the daunting task of constantly training an entirely new workforce. Policies and procedures need to be explained to each new employee.

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Health related issues:

Obesity: I. Studies have shown that a typical fast food has very high density and food with high density causes people to eat more then they usually need. II. Low calories food: Emphasis is now more on low calorie food.

Obesity is a global issue. It is reaching epidemic proportions in developed nations and many developing countries now also have problems. When we asked people what they believed the main cause of obesity was and found that 40% of all people attribute food as the culprit - 20% chose 'unhealthy food choices' and another 20% chose 'unhealthy food habits like eating at irregular hours'. They further explained 18% say is 'lack of exercise', 13% blame the individual ('no self-discipline') and 11% say 'genetics'.

HEALTH ISSUE Trans fats which are commonly found in fast food have been shown in many tests to have a negative health effect on the body. The fast food consumption has been shown to increase calorie intake, promote weight gain, and elevate risk for diabetes. The Centers for Disease Control and Prevention ranked obesity as the number one health threat. Fast food chains have come under criticism over concerns ranging from claimed negative health effects, alleged animal cruelty, cases of worker exploitation, and claims of cultural degradation via shifts in people's eating patterns away from traditional foods. The intake of fast food is increasing worldwide. A study done showed that the current dietary habit is related to the increase of overweight and obese among adolescents in India

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TRENDS IN INDIAN MARKET

On the back of rising disposable income, changing consumer behavior, huge population base, India is witnessing a tremendous growth is its fast food industry over the past few years. Other reasons like - rising number of nuclear families, exposure to western cuisine and increasing number of employed women are also having a significant impact on the eating out trends and growth of the fast food industry in the country. As a result, all the international players like Pizza Hut, Dominos, McDonalds and KFC are investing huge amount of money to grab a share of this highly lucrative market.

Emerging trends in Indian fast Food Market provides a deep insight that is currently prevailing in the industry including key growth drivers and industry restraints. As per our study, there is a vast difference in the buying habits and purchase decision making of the Indian consumers. We have analyzed the changing trends in the consumer behaviors and have also undertaken price sensitivity analysis that is playing an important role in driving the growth in the Indian Fast Food Market.

Our research also provides comprehensive analysis on the various factors that are acting as catalyst for the growth in the fast food market. The report also gives an overview of the competitive landscape, in which leading industry players have been covered along with their business overview and strategies undertaken.

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Marketing to children:

Fast food outlets in India target children as their major customers. They introduce varieties of things that will attract the children attention and by targeting children they automatically target their parents because Children are always accompanied by their parents.

Low level customer commitment:

Because of the large number of food retail outlets and also because of the tendency of customer to switch from one product to other, this industry faces low level customer commitment.

Value added technology services:

There is continuous improvement in the technology as far as fast food market in India is considered. The reason behind that is food is a perishable item and in order to ensure that it remain fresh for a longer period of time. Earlier, Indian people prefer eating at home but now with the change in trend there is also need for improvement and up gradation of technology in food sector.

Attracting different segments of the market:

Fast food outlets are introducing varieties of products in order to cater the demands of each and every segment of the market. They are introducing all categories of product so that people of all age, sex, class, income group etc can come and become a customer of their food line.

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The success of fast foods arose from the changes in the living conditions: 1. Huge increase in number of working women 2. There is an increase in number of single-parent households 3. Long distances to school and work 4. Usually, lunch times are short 5. There's often not enough time or opportunity to shop carefully for groceries, or to cook and eat with one's family. Especially on weekdays, fast food outside the home is the only solution.

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MAJOR PALYERS OF FAST-FOOD IN JAMNAGAR

Fast food is one of the world's fastest growing food types. It now accounts for roughly half of all restaurant revenues in the developed countries and continues to expand there and in many other industrial countries in the coming years. But some of the most rapid growth is occurring in the developing world; where it's radically changing the way people eat.

People buy fast food because it's cheap, easy to prepare, and heavily promoted. India is a developing country with 2 percent of organized and 98 percent of unorganized sector. So most of the fast foods outlets come into Indian market as India have a high growth in every sector.

MAJOR FAST-FOOD OUTLETS OF JAMNAGAR

Dominos Caf Coffee Day Hotel Aram Hotel Celebration Hotel fortune palace U.S. Pizzas Hotel Vishal International Hotel President Hotel Kalatit Chatkazz Rajlaxmi

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DOMINOS

SIZE OF THE MARKET Domino's Pizza is one of the biggest and fastest growing international food joints in South Asia. The very first Domino's Pizza outlet in India opened in Jan, 1996 at New Delhi. Today, Domino's Pizza India has become a wide network of Pizza delivery and food chain. There are close to 220 outlets in 42 cities of India and the brand is the top most among the food delivery business. Dominos Pizza outlets can be seen at major locations of Delhi and NCR. Their home delivery is free with a guarantee of Thirty Minutes or Free. Although they are expert in delivering Pizzas on time, their eating joints and outlets are also good.

MARKET GROWTH During last four months, dominos has opened outlets in Jammu, Panipat, Surat, Baroda, Nasik, Tiruvananthapuram, Meerut and Patiala. While earlier, 70 percent of their business used to be in metros and mini-metros, now the ratio is 50:50 between big cities and smaller Tier II and III cities. Dominos Pizza is expanding its base in India by opening 500 outlets to add to its current tally of 156 outlets, across 50 cities in India with an investment of Rs.1, 000 crore.

MARKET STRATEGIES Promotional and Advertisement Campaigns(Coupons and discounts) The '30 Minutes' Promise Use of Technology(Digital interactive Television, Internet on the PC, Mobile telephony)

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 Premium Pricing Strategy Indian fast food industry and entry of multinational players Distribution strategies of fast food chains in India

MARKET SHARE The organized pizza market in India is worth Rs.500 crore and Dominos has a substantial 45% market share, and registered a healthy growth of 60% over last year. The main target for new outlets shall be metro cities though Tier II cities would also receive a fair amount of attention. Currently Dominos sells around 35,000 pizzas every day, of which around 1% is given free on account of its 30 minutes or free model. 65 percent of its revenue comes from home delivery service; around 35 percent is from sales in premise.

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CAFE COFFEE DAY

Caf Coffee Day is a chain of coffee shops in India having its headquarters in Chikkamagaluru, Karnataka. A division of Amalgamated Bean Coffee Trading Company Ltd. (ABCTCL), it is commonly known as Coffee Day or CCD. It opened its first cafe in 1996 on Brigade Road in Bangalore, and today has the largest cafe retail chain in India with over 800 cafes in 112 cities. Large number of coffee day cafes is located in Bangalore. The cafe chain has had much success riding, and to some extent creating, the cafe culture wave that swept across metropolitan India following strong economic growth resulting in an increase in youth spending power. It has even tied up with World Space and Micro sense to enable its cafes with satellite radio and WiFi, respectively. Its first Wi-Fi cafe was opened on Lavelle Road, Bangalore. Caf Coffee Day sources coffee from 5000 acres of coffee estates, the second largest in Asia, that is owned by a sister concern and from 11,000 small growers. It is one of Indias leading coffee exporters, with clients across the USA, Middle East, Europe and Japan.

INDIA: Caf Coffee Day currently owns and operates 169 cafes in all major cities in India. It is a part of India's largest coffee company named Coffee Day, ISO 9002 certified company. Coffee Day's most unique aspect is that it grows the coffee it serves in its cafes. Cafe Coffee Day's vending machines have a special niche in the market compared to competitors because Cafe Coffee Day machines offer filter coffee unlike the instant coffee offered by competitors' brands. Growing from a coffee exporter to a coffee parlour, caf coffee day has certainly come a long way in this segment.

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Key Features: Pioneers of the Caf Concept in India with its first Caf at Brigade Road, Bangalore in 1996. This Caf was opened as a Cyber Caf (first of its kind) but later, with the burst of cyber cafes it reverted to its core competency.Coffee Essentially a youth oriented brand with majority of its customers falling in the 15-29 year age bracket Each caf, depending upon its size attracts between 400 and 800 customers daily At present it operates 169 cafes across 43 cities Plans to operate 200 cafes by December 2004 It is a place where customers come to rejuvenate themselves and be themselves

D) Marketing Mix Every company goes through different phases in the business. The phase is very similar to that of the product lifecycle. In order to sustain in the market and to maintain its market share it is essential for the company to have a right marketing mix. The company has to have a mix of proper product that is relevant to the target audience, proper price, proper reach i.e. the place and relevant promotion that keeps the target audience interested in the company.

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I) Product Caf Coffee Days menu ranges from hot and cold coffees to several other items. However, the core product is the coffee. The management believes that trend is changing towards coffee. So taking this opportunity, the company also sells coffee powder. Caf Coffee Day also believes in selling other merchandised products. CORE PRODUCT BEVERAGES Hot Coffee Cold coffee Hot Tea Frost Teas Fruit easers

OTHER FOOD PRODUCTS OFFERED: Small eats like hotdogs, brownies, cookies Big eats like Burgers and sandwiches Sweet eats Sundaes

SUPPORTIVE PRODUCTS: Mugs Caps T-shirts Bags

New Introductions: T-Shirts Marquis pens Shoulder Bags Coffee Mints

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II) PRICE Cafe Coffee Day has positioned as Value for Money. The major target customers are the youngsters. Pricing is a very sensitive issue for the Indian consumers. Caf Coffee Day believes in mass marketing. However there are some

outlets where the students are given special discounts. CCD even set up their outlets in the college campus. CCD is looking for expansion to more interior places. Here prices become more complex as the consumer are very conservative in spending. The

decor, ambience and the experience will play a major role in pulling the crowds in small cities. The price of the product has to be kept uniform in order to maintain the uniformity in all the outlets. CCD target audience is youngsters. Majority of them are dependent on their family for their expense. This is one of the most important reasons for low pricing compared to other cafes. They believe it in making their product at an affordable price. Pricing is one of the important weapons for them to fight against their competitor. III) PLACE Caf Coffee Day outlets are spread across India. However, there are more number of outlets in the metros and towns. For e.g. In Mumbai CCD have 37 outlets. In the past 12 months, Caf Coffee Day has also been on an aggressive drive to expand the number of cafs in the smaller towns across the country based on research and invitations received from these places to open more such cafes there. There will be an increased focus in cities having populations from as low as Five Lakh upwards. However, the focus has not been on just opening more cafs wherever there has been an opportunity. Caf Coffee Day is already the largest and most wide spread retail chain of cafes in India with a current count of 169 cafs in 43 cites.

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IV) PROMOTION In order to stay with the competition and to keep the audience interested, they undertake lot of promotion activities. CCD jointly organizes large number of promotions with the other companies serving the similar target audience. These cafes have emerged as a new media vehicle for reaching the right type of the customer. CCD gets in physical touch with audiences, target loyalty club members, or advertises in their newsletters .Cafe Coffee Day competitors include but are not limited to

Barista Cafe Mocha Costa Coffee

Strength: Large Number of outlet. In house sourcing of coffee beans. Tie Ups with good companies.

Weakness: Limited Target Audience. Follow the competitor strategy. Quality of food- Stale breads. Improper sitting arrangement

Opportunity: Large Untapped Market Tie-ups with other companies for promotion.

Threat: Entry of Foreign players like Georgia, Starbucks etc. Large unorganized market.

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HOTEL ARAM
Hotel Aram was established 40 years ago in a heritage building which had been owned in those days by the Jadeja Dynasty of the Nawanagar State. The Nawanagar State had been one of the leading & highly advanced states of the olden days. The building is located in a prime area of Jamnagar city having open lush green Garden Restaurant. The Burmese wood is judiciously used in the building. The wood carving work of balustrade, main door frames, windows, etc, is really breathtaking. The elevation of the building resembles to Victorian architectural pattern. Hotel Aram is updated confirming to all modernized amenities. It has altogether, 30 rooms having all amenities within their four walls. It has highly modernized and very sophisticated Suites, Executive and Deluxe rooms meeting with the guests choice. It has also 3 conference rooms equipped with projector, LCD and audio systems. The restaurant caters fully hygienic various mouth-watering dishes of Gujarati, Punjabi, South Indian and Chinese recipes. Hotel Aram has various other amenities, viz. fully equipped gymnasium, valetparking, most hygienic in-house laundry, RO plant, back-up generator, complimentary Wi-Fi internet service, airport pick-up service and spacious vehicle parking area of 8000 sq feet.

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The restaurant is spread over 5000 sq ft. It is a garden restaurant and also has an A.C. restaurant. It has special terrace gardens to serve the couples and families. Its goal is to become the no 1 hotel in Jamnagar. Basically it is a heritage hotel since 1971 owned by Mr. Deepak Bhatt. It ranks 4th in Gujarat. If we look at its work force, then it has 25 cooks, 17 waiters and 10 helpers supervised by a manager. It has 35 tables so that it can provide with quick services to large number of customers at a single point of time. It also provides for free home delivery services. The work force is trained on job during briefing. The turnover rate is very low, this shows the satisfaction of the work team and management efficiency. Moreover, the employees are provided with perks like Insurance and provident fund. They also follow the grooming standards and have their uniforms i.e. cap, gloves, white shirt, black trousers and sleeveless jacket. The restaurant believes in hygiene, quality and delicious food so the vegetable are purchased from the local market so serve the fresh food. Dumping of vegetables is done if not consumed within a day. Also, the customers are served RO water and cooking is done in the same. The marketing is done through TV advertisements, Banners behind local transport, Local newspapers and via internet. The pricing is decided by adding fixed percentage profit to the cost. The foods served by them are: South Indian, Punjabi, Chinese and Continental. It is well known for its Kathiwadi dish. It serves customers from 6 a.m. to 11 p.m. During festivals it has special buffet dinner and lunch to avoid the issue of queuing. To keep a check on quality of food, audit by food department is done every six monthsThe value added services provided to customers are the pan after lunch/dinner which no other restaurant serves in whole Saurashtra region. Music is played to make the ambience delightful for the customers. At times, LCD is placed to add to the entertainment services especially during festivals. It also has two dining halls viz Shagun and Regal hall. At times, various exhibitions cum sale are held in the hotel.
Source: As per guidance provided by the Manager of the outlet Mr. Yusuf.

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HOTEL CELEBRATION
Hotel Celebration, Jamnagar is a landmark in the hospitality sector of Saurashtra. It offers much more than just accommodation. It is owned by Mr. Hitesh Bhatt. For the

diet it has "Vegetarian Restaurant", Which Caterer Fast food, Punjabi, Chinese Continental Delicious Gujarati and South Indian Dishes. It also has centrally Air Conditioned Marriage Hall - "Kumkum" which has a capacity to accommodate 400 people

The pricing strategy is decided on the basis of cost plus profit method. They promote the outlet on the local TV channels. They have special menu on every Saturday to attract the crowd. The outlet focuses on providing hygienic and quality food to its customers. They decorate the outlet as per the festival or occasions. It also provides with personalized music. It presents with bouquets to customers only special occasion on demand by customers. To entertain kids, jumpers are set in the outlet. There are 37 employees employed as waiters, helpers and chefs. The employees are given on job training. The grooming standards are also followed for the staff. It also has a policy of getting the outlet renovated every two year to suit the taste of its customers. To handle the grievances of the customers, they apologize the customers and also do price deductions. It has well designed paper cushions placed under every dish with its name printed which are discarded after usage by every individual. The outlet is coming up with a new project of expansion of outlet to serve more customers.

Source: The Manager of the outlet Mr. Prakash Nakum.

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HOTEL FORTUNE PALACE THE SAFFRON RESTAURANT

The Hotel creates a striking landmark, which is dynamic in style. It stands tall and proud as the symbol of timeless Indian Hospitality, where innovation, ideas and change are the way to the future. Where each guest interaction is a memorable experience, Jamnagar premier hotel provide the highest level of service. The outlet is owned by Mr. Keshav Khistria.

It is said that you could travel the length and breathe of India and not repeat the same dish at any meal. Therefore any restaurants claim to represent India in all its diversity would face a formidable challenge. Saffron has collected recipes from different parts of the country to create menu that is both pragmatic and colorful.

Saffron's chefs believe in following honest, authentic Indian recipes with a few innovations that are distinctly our own. The special menus are periodically changed so that even the most regular of customer have something new & exciting to try

TAGLINE

Saffron - The Fine Dining Restaurant.

VISION AND MISSION

Good Food Good Feelings Satisfying peoples hunger for simple lifes simple pleasure.

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PRODUCTS North Indian Chinese Continental Gujarati (Kathiwadi) food

PRICE The cost is determined based on cost and other factors like quality of food they provide, technology they use, targeted customers, ambience of the outlet, location of the outlet, number of competitors etc.

PROMOTION Saffron has food festival as per the season. Currently they have Mango festival owing to summer season. They set themes such as sizzler theme for weekends or specific day. Each day has special food theme.

FINANCE The finance is allocated not only for paying the direct and indirect expenses but also for the employee welfare activities and reserves are created to undertaking of new projects.

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OPERATIONS The vegetables are purchased from the local vendors. They have contract with suppliers of vegetable. The wastage is discarded by disposing waste to piggeries or to the municipal corporations.

UNIQUE SELLING PROPOSITION Combination of quality, service, ambience and product theme It has IDS software to control its operations which no other firm in Jamnagar city has

CERTIFICATES ISO Govt. of India recognizing it as four star hotel Ministry of Tourism

TARGET MARKET Cream Customers of the city and foreign customers. It does not aim at attracting the local crowd but to serve the premium customers by providing the augmented services. It has entered into contract with the shipping companies, doctors association, builders and the bankers association for arranging all its occasions and parties or corporate meetings.

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HUMAN RESOURCE DEPARTMENT The selection of employees is done based upon the honesty, personality and experience they possess. The training is provided through videos, lectures, and on job Motivation is given to employees through personal meeting with top management, problem solving meetings, inter-department games, conducting competition among employees, tour packages and selection and rewarding best employee practices. Incentives is based both on monetary and non-monetary basis depending upon the performance of the employee.

CUSTOMER RELATIONSHIP MANAGEMENT The front line employees i.e. the waiters report the manager about the complaints and feedback of the customers and the manager reports the top management about it for taking necessary actions. The data is stored about the customers. During festivals, these customers are informed of the events via SMS, E-mails or telephonic calls.

Source: Managers guidance Mr. Ravindra Nehra

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U.S. PIZZA
It all started in 1972, when owner Judy Waller opened her first U.S. Pizza Company in a burned out clock shop in Levy, AR. Armed with a unique recipe for thin crust pizza and an old fashioned stone hearth oven, U.S. Pizza embarked on a quarter-of-a-century journey that has done everything but dwindle.

Since it opened its first store in 1972, they have been making thin crust pizza from scratch when customers order it. And they still use stone hearth ovens. That's one of the reasons their unique pizzas are worth the wait. US pizza prides themselves in offering the very best pizza, salads and sandwiches, and we value your patronage. They've always believed they serve the best pizzas and salads

TAGLINE: EVEN BETTER THAN YOU THINK YOU DESERVE VISION: An inspired TEAM, creating WEALTH MISSION: An inspired TEAM, delighting every customer OPERATIONS: The vegetables are bought from the local vendors and other props like crockery, straws, and promotional banners come from the head office which is located in Bangalore. The menu is provided by the franchisor. The employees are selected by the franchisee and trained by the franchisor. It focuses on dining at the outlet rather than quick home delivery. It also provides for separate Jain menu.

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PRODUCTS

Pizzas Salads Sandwiches Mock Tails Garlic Bread

PRICE

The pricing is designed by the franchisor. It also follows the bundling policy. There is an unlimited meal pricing and also the couple pack. The family discounts and group discounts are also provided

PROMOTION

The promotion is done in local newspaper. Special discount offers are given to employees of Essar and Reliance refinery. They also provide for free decoration services in case of birthday parties organized in the outlet. They invite the magician for the entertainment.

PLACE

The ambience is designed especially to attract the young crowd i.e. huge posters of football player. The outlet is situated in the posh area

HUMAN RESOURCE

The employees are trained by the franchisor and paid on basis of work hours. They are trained at the head office in Bangalore. They follow the grooming standards and are trained to serve, cook and basic etiquettes to be followed in front of the customers.

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HOTEL VISHAL INTERNATIONAL

Damji's Hotel Vishal International is redefining the standard of hospitality in Jamnagar, offering services and comforts that evoke a feel of royalty making the visit memorable indeed. Though near and far from the city, Hotel Vishal International proves to be tranquil retreats.

A premium multi-cuisine spacious restaurant, serving the choicest cuisine from across the globe, from breakfast to dinner. The Vishal restaurant was established in the year 1999 by Mr. Piyush Haralja with a mission of growth through the innovations in order to stand distinct among their competitors and to satisfy its customers. Its goal is to establish another food outlet in the coming years.

UNIQUE SELLING PROPOSITION

It is a restaurant providing pure vegetarian, hygienic and quality food to the customers along with an additional facility of swimming pool, gym, game zone etc.

34

PRODUCTS

The dishes adding to the taste provided at Vishal are Chinese, Continental, Indian and Fast-food. Vishal is soon planning to come up with fusions.

PRICE The pricing is decided based on food cost plus direct and indirect expenses.

PROMOTION The restaurant provides for non-monetary discount to the employees of contracted companies and by providing coupons of gifts.

VALUE ADDED SERVICE The restaurant provides for music system, decoration services and free home delivery for its customers.

AUDIT The audit is conducted every six month by internal auditor

CERTIFICATES The restaurant possesses food license, premises license, government reference number and liquor license.

OPERATIONS The vegetables and groceries are bought from the local market and wastage is dumped at JMC.

35

HUMAN RESOURCE The HR is selected based upon education and experience and trained through class room sessions, videos, pamphlets, recipe books and on the job training. The employees are given monetary incentives and performance appraisal is carried out every month and best employee is rewarded in order to motivate other team members. The HR is also provided with free medical facilities

MARKETING The restaurant has planned to undertake advertisement campaign through banners on road side.

TECHNOLOGY The restaurant possess Inkey software for billing purpose and CCTv cameras to supervise the employees

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HOTEL PRESIDENT

Hotel president has a tagline FOR YOUR TASTE BUDS, WELCOME THE ABROAD The 7seas restaurant since 1986. It is owned by Mr. Mustak Ahid Mepani.

Its only vision is to make money and provide good quality to the customer. It possesses the Shop act license, food license, health license, and Two Star grade is allotted by tourism department. It has 30% market share.

PRODUCTS

24 hours Multicuisine restaurant featuring fine Indian, Continental, Chinese & Sea Food, Mock tails, Starters, Soups, Main Courses, Desserts. It also has a silver service restaurant in which fast food is provided.

PRICE

The pricing is decided as per cost of food plus overheads and profit

37

STRENGTH

Best quality non-vegetarian food.

WEAKNESS

The hotel faces the constraint of space to undertake any expansion plan

OPPURTUNITY

Increasing income of the people could fetch him more market share

THREAT

The Recession in the economy could be the potential threat for the restaurant

VALUE ADDED SERVICES

The restaurant provides for birthday cakes for free of cost to its regular customers along with music.

OPERATIONS

The vegetables are bought from the local market and the provisional stores are contracted for other groceries. The wastage is dumped in JMC.

FINANCE

The profits are ploughed back in the business after payment of all the expenses. The funds are also spent on welfare activities like they are sent to movies, beach, education, medicine and accommodation.

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HUMAN RESOURCE

Employees are selected based on their genial and honesty. They are trained on job basis under the Captain. They are trained as to how to serve and to cook. They are motivated by pep talk. They are compelled to follow the grooming standards. They are paid monetary incentives.

AUDITS

The audit is conducted every month by internal accountant and every year by CA of the hotel.

SOURCE: As per information provided by the owner of the hotel Mr. Mustak Ahid Mepani

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HOTEL KALATIT
The three star international hotel is a partnership firm owned by Mr. Viral Dhruv and Mr. Bhavesh Dhruv. It was established in the year 2010. Its tagline is A traditional quality food share. It possesses the government food license. It has a contract with Bharat Petroleum, Essar, Reliance, Various shipping and pharma companies for arranging its parties and other occasions. It also has sophisticated software to control its operations and has built up customer data. They inform their customers via SMS for inviting them to celebrate the various occasions and festivals in the restaurant

PRODUCTS

Rajvadi Guajarati Thali, Indian dish, Chinese, Italian, Mexican, Continental, South Indian, Desserts, Sizzlers

PRICE

The price is determined based on cost of food plus staff maintenance plus hotel maintenance.

OPERATIONS

The vegetables are purchased from local market and the wastage is dumped in JMC

FINANCE

The funds are allocated for innovations and renovation of the restaurant after payment of expenses

40

HUMAN RESOURCE

The selection is done on basis of experience and trained on job basis under the chef head or supervisor. They are motivated by complimenting them and providing monetary rewards.

STRENGTH The quality of food they provide and the services to the customers. They give free meal to the customer providing best feedback. The welcome drink provided by them to the waiting customers is the supplementary service which no other restaurant in Jamnagar provides.

WEAKNESS Lack of experienced Staff

OPPURTUNITY Continuous Innovations could attract more crowd due to increasing demand for good ambience by the customers.

THREAT The change is food and safety laws by the government are the potential threat for the restaurant.

AUDIT The yearly audit is conducted in the restaurant

Source: As per information provided by the owner of the hotel Mr. Viral Dhruv.

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CHATKAZZ

Since 2007 they have been proud enough to serve Indians for some of its favourite food and along with that it believes to taking up challenges, turn up into opportunity and success is yours. That is what is believed by CEO and co-founder ANAND & KAVITA RATNANI who strongly advocate the theme. They went up ahead, took up the challenge and today it is one of the most popular branded Quick Service Restaurant chain in Gujarat and Rajasthan with across 75 outlets fully operational & enjoying the name CHATKAZZ along with consistent business growth. It believes in flourishing together to enable themselves and others to spread Love and Happiness. Its been a wonderful journey and it promise its just a beginning to a short term destination 2015 of 400+ outlets across India with a vision of 1500+ outlets in long term with a commitment to go overseas making a mark of presence everywhere. It believes in Value for Money, Commitment and Action which derives us futuristic, setting a benchmark for days to come. In CHATKAZZ it advocates those people who have great passion in food industry. It provides all the Essential Support and helps them in achieving Goals as desired. It suffices complete Operational Support to Maneuver the business and also provide the Exclusive Training for all Team Members to enable and to govern the outlet. It has Standard Operating Procedures in all aspects of business to help to move forward smoothly. It support in marketing strategies for more customer footfalls. By joining the Team the Franchisee encash the Profit of various aspects such as branding, successful business model, R&D, logistics, financial advice, operational excellency, store outlook & design, marketing support, branded consumables along with ensuring almost zero wastage, Amazing range of products and at economical pricing, food for mass volume, hygienic, popular, quality standardization, universal appeal to attract the customers and much more to count.

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PRODUCTS Vadapav, veggie roll, sandwich, pizzas, mock tails, thick shakes, burgers, Frankie etc PRICE As per the rules laid down by the franchisor PROMOTIONS Visual merchandising and web UNIQUE SELLING PROPOSITION A combination of quality, hygiene, taste at affordable rates OPERATIONS Purchase of vegetables from local market and capital goods and other props are received from the franchisor HUMAN RESOURCE The employees are selected by the franchisee and are trained by the franchisor. They are motivated by the franchisee.

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RAJLAXMI
Rajlaxmi is well known bakers of Jamnagar. It has been serving the customers since many years. It provides delight to its customers. It serves not only the young crowd but to all the age-groups.

PRODUCTS Bakery products, Cakes and Desserts, Chocolates and Puddings, Namkeen products, Pizza, Vadapav, Burger, Panipuri, Sandwiches,Hot-dog, Samosas & Puffs etc

PRICE

The standardized products are sold at MRP. The other products are sold at cost plus profit.

PROMOTIONS

The outlet is promoted through TV advertisements and local newspapers.

UNIQUE SELLING PROPOSITION

Quality goods at affordable prices.

OPERATIONS

The products are manufactured by their employed bakers in the self-owned building. The inputs are either self-made or bought from the market. It has a contract with various dealers and distributors. It owns its own capital assets. The automated machines are used to speed up with the operations like patting the floor and molding.

44

RESEARCH

45

INTRODUCTION TO RESEARCH

DEFINITION OF RESEARCH

The simple definition laid down in the Advanced Learners Dictionary of Current English is A careful investigation or inquiry specially through search for new facts in any branch of knowledge.

Research is an endeavor to discover, develop and verify knowledge. It is an intellectual process that has developed over hundreds of years, ever changing in purpose and form and always searching for truth. C. Francis Rummel

Research inculcates scientific and inductive thinking and it promotes the development of logical habits of thinking and organization. The research methodology has gone through which path to solve the research problem and which tools have been adopted to achieve the desired objective and more importantly it tells why only that path or tools have been chosen Research is the most important process for advancing knowledge for promoting progress and to enable man to relate more effectively to his environment, to accomplish his purpose and to resolve his conflicts. Although it is not the only way, it is one of the more effective ways of solving scientific problems. Marketing research is defined as "the function that brings the consumer, customer and public to the market through information - information used to identify and define marketing objectives and problems; generate, refine and evaluate marketing actions, monitor marketing performance; and improve understanding of the marketing process". This clearly shows that marketing research is wide ranging in its concerns.

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RESEARCH OBJECTIVES

In context of this project study Primary Objective:

The main objective of this project is to know the preference of the consumers towards the fast food outlets in Jamnagar

Secondary Objective: To know the taste and preference of the customers visiting the food stores Identification of the customer services given to the customers To find how different food stores differentiate themselves To know the strategies adopted by retailers to fight the stiff competition

The other objectives of these report is to study the success and emergence of Indian fast food market and factor affecting the choice of consumer for fast food and analyze the competitors position in the fast food industry.

To investigate the factors that is influencing consumer decision-making process in relation to fast food restaurant industry in India.

To understand the strategies adopted by the various players in fast food industries, so as to illustrate, how do they respond to the changing environment and towards vibrant consumer behavior.

To understand the emergence and growth of fast food sector in India.

To understand the various challenges faced by these industry

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RESEARCH METHODOLOGY

To meet the objectives primary research was undertaken. The research approach adopted was exploratory type.

Exploratory research-the objective of exploratory research is development of hypothesis rather than their testing.

In exploratory research, using Questionnaire as tool, it is explored that how segmentation of customers with different demographic profile is done. Both, Primary and Secondary data is used. Primary data was collected through Questionnaire . The instrument used for the data collection was Ratio &Questionnaire with the sample size of 100 for the study. Tables & charts were used to translate responses into meaningful information to get the most out of the collected data

48

LITERATURE REVIEW

The following literature review will critically analyze the theories associated with the research topic. Firstly, it looks at the issues of consumer behavior; hence it highlights the factors, which influence the consumer decision-making process, predominantly the consumer attitudes. The author has found a variety of academic articles, some of which focus on food industry and public trust in food safety. Other articles examine more generally models of consumer attitude formation, which might be useful applied to the research question in this topic.

While the first section focuses on the aspects of consumer behavior, the second part of the review, as already outlined in the introduction section of topic, observes the marketing issues, particularly the marketing

communication strategy within the marketing mix. Furthermore this review will contribute towards creation of possible marketing strategies as well as recommendations that fast food industries might pursue in order to respond on changing environment and consumer behavior. Therefore the following theories from consumer behavior and marketing have been outlined: -making process

49

This industry is considered to be the fastest growth industry in the global market (Gu and Kim, 2002), and it is described by players of the industry as being in the middle of a perfect storm (Haas, 2008). It is important to note that the foodservice industry is influenced by fast-changing customer preferences (See Kara et al., 1995; Blum, 1996; Sun and Morrison, 2006; Waldfogel, 2008). While preferences can be regarded as an individuals attitude towards a set of objects, (Lichtenstein & Slovic, 2006), customer preference is about choices among valued options with acceptance indicating a willingness to tolerate the status quo (Fife-Schaw, 2007). Studies of customer preference for foodservice attributes are very limited (see Park, 2004; Choi et al., 2009). Likewise, changes in customer preference will make existing strategies no longer valid for the operators within the foodservice industry (Blum, 1996). Therefore, these operators must be prepared to identify and meet changing customer preferences resulting from changes in the demographic,

technological, societal, legal, cultural or ethical characteristics of the industry.

Literature also showed that price was a concern when customers took their families and the least concern when consuming business meals (Koo et al., 1999). Pedraja and Yague (2001) found that customers searched for information about a foodservice outlet, especially where there were price differences among outlets.

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Consumer decision-making process

Jobbers (1995) identifies the concept of influences on consumer purchasing behaviour among which he points out the level of purchase involvement as one of the factors that influences the consumer decision-making process. Referring to Kim (2005) who was investigating how product involvement and values interact with consumers, more current research examines consumer involvement under working assumptions that different types of product involvement trigger different behaviour.

Referring to Solomon (2006, p.27) consumer behavior is the study of the processes involved when individuals or groups select, purchase, use or dispose of products, services, idea or experiences. Consumer behavior focuses on how individuals make decisions to spend their available resources on consumption related items. That includes what they buy, why they buy, when they buy, where they buy it, how often they buy it how often they use it, how they evaluate it after they purchase and the impact of such evaluations on future purchases, and how they dispose it. Schiff man and Kanuk (2004, p.8)

Brown, McIlveen and Struggnel (2000) examined the nutritional awareness and food preferences among young consumers. They suggest that young consumer decisions regarding food preferences are influenced by nutritional awareness knowledge. This knowledge is acquired within the home, school and social environments. They also put forward that education plays important role regarding healthy eating. Schiffman and Kanuk, 2004, The consumer decision to purchase or not to purchase the product is crucial for marketers. It can signify whether the marketing strategy has been wise, insightful, and effective, or whether was poorly planned and missed the mark. Hence marketers are particularly interested in such process. Schiffman and Kanuk, 2004

51

Verbeke (2005) recognizes that at any point in time throughout the decisionmaking process, judgements and choices are affected by a variety of stimuli from environment as well as by internal process and characteristics form the consumers themselves. Based on earliest presented models of consumer behaviour towards food (Pilgrim, 1957, cited by Verbeke, 2005) and on a review of factors affecting food acceptance and behaviour (Shepherd, 1990, Steenkamp, 1997, cited by Verbeke, 2005) proposed a classification with three types of influencing factors: environmental factors, person-related factors and properties of the food.

Schroeder and McEachern (2005),in these research he analyzed the impact of McDonalds and KFCs corporate social responsibility (CSR) on consumers purchasing behaviour, authors propose that purchases of fast food are mostly impulsive, hence suggesting relatively low-involvement in each case.

Lye et al. (2005), in their study of consumer decision models, advocate that the complexity of consumer decisions is increasing. We have limited understanding of the decision process and the models are inadequate at predicting decision outcomes. Hence the current models, they argue, are out of date and insufficient in providing the desired outcome. Nevertheless, the decision-making process model will provide the author and the reader with general overview and understanding of factors influencing on consumers purchasing behaviour. Thus we attempt to identify and focus, along with the attitudes, on the socio-cultural part of the consumer decision-making process, i.e. impact of communication and information from mass media i.e. publicity of fast food

52

Consumer attitude formation change Freiden and Henderson ,(1997) investigated the impact of social values on food related attitudes, recognize that marketers, consumer psychologists and public policy makers have an interest in the personal and social values of consumers as these deeply held feelings of what is important in life influence both consumer attitudes and behaviour. Reflecting desired end states or ways of living, values might in part represent some of the fundamental motives that drive and direct the consumer behaviour. Homer and Kahle 1988, cited by Goldsmith, Freiden and Henderson (1997) suggest that the influence of values may not be limited just to high- involvement areas, but may also be relevant to less involving product fields such as food.

Nielsen, Jongen and Meulenberg (1998), studied understanding of the factors that determine consumer perception/attitudes of a products value or cost is of crucial importance to an industrys product innovation, choice of marketing and communication strategy and maintenance of competitive advantage. . Baltas (2001), acknowledge that the nature of fast food production and processing is becoming more important to consumer.

Jobbers (2002) identifies the concept of influences on consumer purchasing behaviour among which he points out the level of purchase involvement as one of the factors that influences the consumer decision-making process. Identifies the concept of influences on consumer purchasing behavior among which he points out the level of purchase involvement as one of the factors that influences the consumer decision-making process. (CSR) on consumers purchasing behavior, authors propose that purchases of fast food are mostly impulsive, hence suggesting relatively low-involvement in each case.

53

Harper and Makatouni (2002) note that ethical production in terms of animal and human welfare and environmental protection are of greatest importance.

Mohr et al. (2002) recognize that information regarding firms ethical behaviour is thought to influence product sales and consumers overall image of a company.

Mohsin, (2003).While it is generally accepted that a positive relationship exists between service quality and customer satisfaction, there is debate with proposals of a causal link from customer satisfaction to service quality, service quality to customer satisfaction Viaene (2003) investigated consumers beliefs, attitudes and purchase intentions with regards to genetically modified food. Attitudes towards GM food are determined by perception of risk and benefits. When perceived risk is high, that influence negatively on consumers purchase intention. That might be linked to fast food as well, as eating fatty food may be risky of suffering obese related diseases. Verbeke (2005), who examined the influences on consumer decision-making process towards fresh meat, the hierarchy of effects indicates the different mental stages that consumer must go through when making buying decision and responding to marketing or non-commercial messages. In our instance, where the attitude object is fast food, plus taking into account that fast food is considered to be low involvement product, the low involvement hierarchy of effects would occur.

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Ajzen (2009) the attitudes are the first determinant of behavior intention. In consumer behavior context attitude is a learned predisposition to behave in a consistently favorable or unfavorable way with respect of a given object. Most researchers agree that attitudes consist of three components: Affect (consumers emotions and feelings about the attitude object), Behavior (intention to do something with regard to an attitude object) and Cognition (believes a consumer has with an attitude object). The marketing mix The concept of the marketing mix as the combination of the major tools of marketing was first developed by Borden in the 1950s. The idea of 4Ps (Product, Place, Price and Promotion) was later formulated by McCarthy in 1975. . Ajzen (1998) the attitudes are the first determinant of behavior intention. In consumer behavior context attitude is a learned predisposition to behave in a consistently favorable or unfavorable way with respect of a given object. Most researchers agree that attitudes consist of three components: Affect (consumers emotions and feelings about the attitude object), Behavior (intention to do something with regard to an attitude object) and Cognition (believes a consumer has with an attitude object). Vignali (2001) acknowledges that for many years 4Ps have been used as the principal foundation on which a marketing plan is based. However, with particular attention being paid to services marketing in recent years, theorists have identified additional variables, which could be added to the 4Ps. recognized the following variables as an integral part of the marketing mixprocess, physical and people.

55

Vignali (2001) applied 7Ps analyzing the marketing mix of McDonalds in the following way: 1. Product features, quality, quantity. 2. Place location, number of outlets. 3. Price strategy, determinants, levels 4. Promotion advertising, sales promotion, public relations. 5. People quantity, quality, training, promotion. 6. Process blueprinting, automation, control procedures. 7. Physical cleanliness, decor, ambience of the service. In this topic, however, our focus will not be on all 7Ps; the emphasis will be on product, promotion and physical as this links logically with the research question/objectives If we look further into the promotion part of the marketing mix, the promotional mix is a direct way in which an organization attempts to communicate with various target audiences. It consists of five main elements: Advertising Public relations Sales promotion Direct marketing Personal selling As mentioned earlier fast food products are purchased mainly impulsively, hence they are considered to be low involvement products.

56

Kim( 2005) recognize that the degree of consumer involvement in a product category has become a major factor relevant to advertising and promoting strategies.Brassington, (2006) The marketing mix creates an offering for the customer. Marketers need to ensure that the marketing mix meets their customers needs and wants in addition to that all of its components need to be consistent with each other. If not costumers will turn away to its competitors. Solomon et al. (2006) suggests that this might be involvement paradox; the less important is the product to consumers, the more important are many of the marketing stimuli (e.g. packages, jingles) that must be devised to sell it. Taking above statements into account, industries might want to employ advertising and sales promotions, in order to attempt to change consumer attitudes.

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RESEARCH DESIGN
According to Kipling Research design is the plan, structure and strategy of investigation conceived so as to obtain answers to research questions and to control variance.

A research design is pattern or an outline of a research projects working. It is a statement of only the essential elements of a study, those that provide the basic guidelines for the details of the project. It comprises a series of prior decisions that taken together provide a master plan for executing a research project.

A research design serves as a bridge between what has been established i.e. the research objective and what is to be done, in conduct of the study to realize those objectives. If there were no research design, the research would have only foggy notion about what is to be done. There are numerous specific designs, which can be classified into three broad categories.

Research design is the conceptual structure within which the research would be conducted. In fact, it is the general blueprint for the collection, measurement and analysis of data. In context of this project study The object of study is to gain familiarity with a phenomenon or to achieve new insights into it. So, the research design is EXPLORATORY type.

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DATA COLLECTION METHODS

SOURCES OF DATA

Collecting the required information from the right source is very important. Sources from which the data are collected differ as per the required of researcher. Basically there are two types of data collection sources:

1) Primary data source

This data is gathering for the first time for the problem solution. Primary data has to be collected through well-equipped instruments, as they are first hand information collected for the research.

2) Secondary data source

It refers to already gathered and collected data. These may be internal sources within the clients firms. Externally, these sources may include books or periodicals, data services, reports and computer data banks. In context of this project study Primary data There are basically three widely used methods for collection of primary data: Observation Questionnaire Interviewing

59

Secondary data Secondary data was collected by the use of internet, magazine, research papers and books

Sample Size Sample size of 100 is taken from the population at random..

Sampling Technique Convenient sampling technique is used for the purpose of research.

Location The data is collected from various age groups-Jamnagar at random with the help of questionnaire.

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LIMITATION OF THE STUDY

Different person have different mindset so it is difficult to find what they want. In this research some of the limitations are as follows:

1. This exploratory research is done focusing on Jamnagar region only therefore findings and suggestions given on the basis of this research and cannot be considered for the entire retail Industry.

2. Due to limitation of time and cost constraints a sample size of only 100 are chosen.

3. Data Analysis and interpretation done may not be that strong due to small sample and random sampling method.

4. Major source of data collected is primary which might limit the study.

5. Our own inexperience in the research field might have affected the results.

6. At the time of fill up questionnaire may be, they may not give or have accurate answer.

7. The survey is limited to outlets within Jamnagar city

8. Biasness may have crept in while doing survey

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ANALYSIS & INTERPRETATION

Gender ratio:-

TABLE NO:-1
Gender MALE FEMALE TOTAL CHART NO:-1 Frequency

53 47 100

54 53 52 51 50 49 48 47 46 45 44 MALE FEMALE 47 53

INTERPRETATION :

From the above data, we can see that number of men visiting the fast food outlets is more in comparison to women. On weekends the number of women is more but on regular days the men visiting are more. This is because men on work prefer to eat from outside during evening. Also, the meetings conducted by the business houses and professionals are on regular days.

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Number of People of different age groups :TABLE NO:-2

Age Below 25 26-35 36-45 45 & above Total

Frequency 37 29 23 11 100

CHART NO: 2

40 35 30 25 20 15 10 5 0 below 25 26-35 36-45 45 & above 37 29 23 11

INTERPRETATION :

From the above data, it can be seen that the age group below 25, visits the fast food outlet maximum. We can see the decline in frequency of visit with the increase in age. The youngsters are more habituated to consuming fast food.

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Number of people with different income groups

TABLE NO:3

Average income per month

Nil Below 5000 5001-10000 10001-50000 above 50000 TOTAL

Frequency

37 7 17 27 12 100

CHART NO.3

40 35 30 25 20 15 10 5 0

37 27 17 12 7

INTERPRETATION :

The above data says though the income is nil, still people visit the fast food outlet. The group of people who have nil income and still visit the fast food outlet are the students going to the schools and colleges. People having income less than 5000 pm visit very less to the fast food outlets. This could be due to low income. With the increase in income i.e. more than 10,000 pm number of people visiting the fast food outlet also increases
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Number of members in the family:TABLE NO.4 Total number of members in the family 0-2 3 -5 members 5-10 members more than 10 Total 18 46 27 9 100 Frequency

CHART NO.4

INTERPRETATION:

The above data pin points towards the increasing trend of the neutral families. The families which have more than 10 members visit the fast food outlet very less. This could be due to the decreasing purchasing power with increase in number of members. The family with 0-2 members also visit the fast food outlet less as they might have other options because cost may not be a problem for them. Even working careers may limit their frequency.

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WITH WHOM DO THEY VISIT THE FAST FOOD OUTLET? (TABLE NO.5)

Criteria Alone Friends Family Relatives Spouse Others Total

Frequency 7 38 29 12 24 2 100

(CHART NO.5)

40 35 30 25 20 15 10 5 0 Alone Friends Family Relatives Spouse 7 12 2 Others 38 29 24

INTERPRETATION :

People visiting the fast food outlet along with their friends is maximum followed by along with the families. This shows that the youngsters prefer to visit along with their friends.
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Frequency of visit to the fast food outlet:(TABLE NO.6)

Criteria Daily Once in a week Twice or thrice a week Once in a month Fortnightly Festivals

Frequency 3 20 12 2 1 13

Birthday/Anniversary/Occasions 12 Weekends Rarely Not Fixed 24 2 11

(CHART NO.6)

Frequency
30 25 20 15 10 5 0

20 12 3 2 1 13 12

24 11 2

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INTERPRETATION :

The above data says that people visiting the fast food on weekends are the most. This shows the increasing trend of consuming the fast food. Generally, on occasions and festivals most of the people visit the fast food outlets especially on birthdays. People visiting fast food outlet once in a week are more. This could be class of businessmen and on weekends professionals are more.

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PRICE RANGE SPENT AT THE FAST FOOD OUTLET:(TABLE NO 7) Range Less 100 100-200 200-500 Above 500 Not fixed Total (CHART NO.7)
35 30 25 20 15 10 5 0 Less than 100 100-200 200-500 Above 500 Not fixed 12 29 21 10 28

Frequency than 12 29 21 10 28 100

INTERPRETATION :

People prefer to spend 100-200 per head at the most are the maximum. The people who said not fixed were of the opinion that it depended on with whom they visited the fast food outlet. Also, some respondents said that it depended on their mood and savings.

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Type of food they prefer:(TABLE NO.8) Response Fast-food (Burger/Sandwich/Pizza)etc Chinese Juices , Ice-creams, Sweets, Desserts & Beverages Others (CHART NO.8) 47 12 36 Frequency 45

50 45 40 35 30 25 20 15 10 5 0

45 12

47 36

INTERPRETATION :

The above chart shows that people preferring fast food are more. People who chose other category were of the opinion that they preferred to have hygienic meal rather than having junk food. Owing to scorching heat of summer people who preferred to have only icecreams and juices are also more.

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Does the ambience affect your selection of fast food consumption? (TABLE NO 9) Criteria Yes No Total (CHART NO.9) Frequency 66 34 100

Ambience affect your selection of food

Yes No

34%

66%

INTERPRETATION:

Ambience did not matter to people who prefer to eat in small fast food outlets or by hawker side. People who preferred to spend less visited any outlet. Many people were of the opinion that selection of fast food outlet depended on the ambience. Generally, these people were professionals and corporate people with good status.

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Are you affected by the crockery served in restaurant? (TABLE NO.10)

Response Yes No Total (CHART NO.10)

Frequency 54 46 100

No 46%

Yes 54%

INTERPRETATION :

Cleanliness, colour and design of the crockery also affects the selection of fast food outlet. People did not prefer to go to outlet where cleanliness of the crockery was not maintained or where torn crockery is used. People who are un affected by crockery feel that design and colour are un important.

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Are you affected by the furniture and interiors? (TABLE NO 11) Response Yes No Total (CHART NO.11) Frequency 36 64 100

Yes 36%

No 64%

INTERPRETATION :

Furniture and interiors also affect the selection of fast food outlet for 36 respondents. Especially people who are ready to spend more than Rs 200/per head expect the outlet with good interiors and furniture. The lightings, the curtains, tables and the banners or frames on the walls attract the customers and provide them with a feeling of ease and comfort. Bu 64% people who regularly visit the outlet are unaffected by the interiors. Some respondents said that it depended upon with whom they visited the restaurant

73

Does eating on hawker side affect your status-quo? (TABLE NO.12) Frequency Yes No Total (CHART NO.12)
80 70 60 50 40 30 20 10 0 Yes No 33 67

33 67 100

INTERPRETATION :

Eating on hawker side does not affect to most of the people. People who were affected were people with high income groups. Generally people who dont mind eating besides the hawker side are under the age of 25 and with an income of Rs. 10,000- 50,000 per month

74

Does availability of vegetarian and non-vegetarian food together affect your selection of restaurant? (TABLE NO 13) Response Yes No Total Frequency 69 31 100

(CHART NO.13)

80 70 60 50 40 30 20 31 10 0 Yes No 69

INTERPRETATION:

The people are affected by outlets serving veg and non- veg food being served and cooked in same kitchen. People who are unaffected are mostly those who are consumers of non-veg. food or who do not have disliking for non-veg food.

75

Give priority while selection of restaurant:(TABLE NO.14) Criteria Food Price Ambience Location Easy accessibility Hospitality Privacy Services Brand image Special offer Total (CHART NO 14)
60 Food 50 40 30 20 10 0 1 2 3 4 5 6 7 8 9 10 Price Ambience Location Easy accessibility Hospitality Privacy Services Brand image Special offer

Rank 1 2 4 9 5

6 10 3 8 7 100

76

INTERPRETATION:

From the above data it can be concluded that quality, taste and hygiene of food is the foremost important criteria for every respondent. Besides quality, the price is the second criteria which affect the selection of fast food outlet. Services included the speed and style of presenting the fast food which held the third important place for the respondents. The least important was privacy to the respondents.

77

Preference of store due to friendliness of staff :(TABLE NO.15) Response Strongly disagree Disagree Neutral Agree Strongly agree Total (CHART NO.15) Frequency 2 5 44 40 9 100

50 45 40 35 30 25 20 15 10 5 0 2 Strongly disagree 5 Disagree Neutral Agree 9 Strongly agree 44 40

INTERPRETATION :

From the above table and graph it says that majority of the customers (i.e. 44%) of them are neutral to prefer the store for friendliness of staff and minority of them (i.e. 40% ) of them agree that they will prefer the store for friendliness of staff.

78

Preference of store due the variety of menu available in the store:TABLE NO.16 Response Strongly Disagree Disagree Neutral Agree Strongly agree Total Frequency 5 15 21 39 15 100

CHART NO.16
45 40 35 30 25 20 15 10 5 0 5 Strongly Disagree Disagree Neutral Agree Strongly agree 21 15 15 39

INTERPRETATION :

From the above table and graph it says that majority of the customers ( i.e. 39%) of them agree that they will prefer the store due to the variety of menu and minority of them (i.e. 21% ) of them neutral about the variety of menu in the store
79

Preference of store due the service speed (TABLE NO.17) Response Strongly disagree Disagree Neutral Agree Strongly agree Total (CHART NO.17)
45 40 35 30 25 20 15 10 5 0 5 Strongly disagree Disagree Neutral Agree Strongly agree 20 15 20 39

Frequency 5 20 39 15 20 100

INTERPRETATION :

From the above table and graph it says that majority of the customers (i.e. 39%) are neutral about the preference of store due to service speed and minority of them are disagree that (i.e. 20%) of them prefer the store due to service speed.
80

Preference of store due to the cleanliness and store atmosphere:-

TABLE NO.18 Response Strongly disagree Disagree Neutral Agree Strongly agree Total Frequency 2 7 25 40 26 100

CHART NO.18
45 40 35 30 25 20 15 10 5 0 2 Strongly disagree 7 Disagree Neutral Agree Strongly agree 25 40 26

INTERPRETATION :

From the above table and graph it says that majority of the customers (i.e. 40% ) of them agree that they will prefer the store for ambience provided in the store..

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Preference of store due to easy accessibility and location advantage TABLE NO 19 Response Strongly disagree Disagree Neutral Agree Strongly agree Total Frequency 4 18 15 45 15 100

CHART NO 19
50 45 40 35 30 25 20 15 10 5 0 4 Strongly disagree Disagree Neutral Agree Strongly agree 18 15 15 45

INTERPRETATION :

From the above table and graph it says that majority of the customers (i.e. 45%) of them agree that they will prefer the store due to easy accessibility and locational advantage

82

Preference of store due to special offer and discounts:TABLE NO 20

RESPONSE Strongly disagree Disagree Neutral Agree Strongly agree Total CHART NO.20

FREQUENCY 4 20 15 41 20 100

45 40 35 30 25 20 15 10 5 0 4 Strongly disagree Disagree Neutral Agree Strongly agree 20 15 20 41

INTERPRETATION :

From the above table and graph it says that majority of the customers (i.e. 41%) agree that they will prefer the store because of special offers and discounts

83

Where do you enjoy eating the most? TABLE NO.21

RESPONSE

FREQUENCY 45 29 26

Restaurant Hawkers Both Total

100

CHART NO.21

50 45 40 35 30 25 20 15 10 5 0 Restaurant Hawkers Both 45 29 26

INTERPRETATION:

The above data says that people prefer more eating at restaurants due to quality food, hygiene, staff friendliness and service. People who prefer to eat only at hawkers are people with low income groups

84

Which is your favourite fast food outlet in the city? TABLE NO. 21
RESPONSE

FREQUENCY 3 2 7 6 2 13 13 22 29 3 100

Hotel President Vishal International Hotel Aram Chatkaz Kalatit Dominos US Pizza Rajlaxmi Bakers Yummys Others(specify) Total
CHART NO. 21
35 30 25 20 15 10 5 0 3 2 13 7 6 2

29 22 13 3

INTERPRETATION :

People visiting yummys are the most due to quality, product line, cost and ambience.

85

TWO WAY ANNOVA TESTING

86

The testing is done taking age and frequency of visit into consideration TABLE NO.23 Age Below 25 Frequency of visit Daily Once in a week Fortnightly Festival Weekends Once in a month Rarely Occasionally Twice or thrice a week Not fixed Interpretation: The age and frequency has a negative co-relation. With the increase in age, the frequency decreases. At the increasing age, the people visit with their family members mostly once a week. The youngsters and students especially visit almost twice or thrice a week to the fast food outlets. 2 6 0 4 6 0 0 8 6 5 26-35 1 10 0 4 7 0 0 0 5 2 35-45 0 4 1 3 9 1 1 1 0 3 45 and above 0 0 0 2 2 1 1 3 1 1

TESTING OF HYPOTHESIS

Ho: There is no significant difference between the age of the people and frequency of visit to the restaurant H1: There is significant difference between the age of the people and frequency of visit to the restaurant ANNOVA TABLE NO.24

Source of Variation Rows(frequency visit) Columns(age) Error

SS 143 36 123

df 9 3 27 39

MS

F crit 2.250131 2.960351

15.88888889 3.487805 12 2.634146 4.555555556

Total 302 (At 5% significance level)

87

For rows calculated value is 3.49 >2.25 tabulated value. From the above table we can see that in rows i.e. frequency of the visit to the restaurant calculated value is more than tabulated value i.e. Fc>Ft. so, the null hypothesis i.e. there is no significant difference infrequency of visit to the restaurant is rejected. It means that there is significant difference between frequency of the visit to the restaurant.

For columns calculated value is 2.63<2.97tabulated value. In column i.e. age of the people calculated value is less than tabulated value i.e. Fc<Ft. so the null hypothesis that there is significant difference between the age of the people within the selected sample of respondents is accepted . It means that there is no significant difference between age of the people and frequency of visit to the restaurant.

88

Testing of correlation between price and type of food? Table no.25

PRICE TYPE OF FOOD Fast food Chinese Juice,ice cream,sweets,etc Other 8 2 2 0 17 7 5 0 6 1 4 10 0 0 7 3 6 1 6 15 Less than 100 100-200 200-500 Above 500 Not fixed

TESTING OF HYPOTHESIS Ho: There is no significant difference between the price willing to spend and type of food outlet H1: There is significant difference between the price willing to spend and type of food outlet TABLE NO 26

ANOVA Source of Variation Rows(type of food) Columns(price) Error

SS 70 77.5 296.5

Df 3 4 12 19

MS 23.3333 3 19.375 24.7083 3

F 0.944350 8 0.784148 4

F crit 3.49029 5 3.25916 7

Total 444 (At 5% significance level)

89

For rows calculated value is 0.944 <3.449 tabulated value. From the above table we can see that in rows i.e. type of food of restaurant calculated value is less than tabulated value i.e. Fc<Ft. so, the null hypothesis i.e. there is no significant difference in type of food the restaurant is accepted. It means that there is no significant difference between type of food restaurant.

For columns calculated value is 0.78<3.26tabulated value. In column i.e. price of the food calculated value is less than tabulated value i.e. Fc<Ft. so the null hypothesis that there is significant difference between the age of the people within the selected sample of respondents is accepted It means that there is no significant difference between price of the food and age of the people

90

The testing of occupation and frequency of visit (TABLE NO 27)

OCCUPATIONS Student FREQUENCY OF VISIT Daily Once in a week Fortnightly Festival Weekends Once in a month Rarely Occasionally Twice or thrice a week Not fixed 3 5 0 4 7 0 0 6 5 3 0 4 1 3 4 0 0 2 4 4 0 1 0 2 3 1 0 1 0 2 0 2 0 1 2 0 1 1 0 0 0 6 0 2 3 0 1 1 2 2 0 2 0 1 5 1 0 1 1 0 Government Self Businessman service Professional employed Private job

Interpretation: The occupation and frequency are compared as students visit the fast food outlet frequently than other profession TESTING OF HYPOTHESIS Ho: There is no significant difference between the occupation and frequency of visit to the restaurant H1: There is significant difference between the occupations and frequency of visit to the restaurant (TABLE NO.28)

ANOVA Source of Variation Rows(frequency of visit) Columns(occupation) Error

SS

Df

MS

F crit

95.33333 9 46.53333 5 61.46667 45

10.59259 7.754881 2.095755 9.306667 6.813449 2.422085 1.365926

Total 203.3333 59 (At 5% significance level) For rows calculated value is 7.75 >2.09 tabulated value.
91

From the above table we can see that in rows i.e. frequency of visit to the restaurant calculated value is more than tabulated value i.e. Fc>Ft. so, the null hypothesis i.e. there is significant difference in frequency of visit to the restaurant is rejected. It means that there is significant difference between frequency of visit to the restaurant. For columns calculated value is 6.81>2.42tabulated value. In column i.e. occupation calculated value is more than tabulated value i.e. Fc>Ft. so the null hypothesis that there is no significant difference between the occupation of the people within the selected sample of respondents is rejected It means that there is significant difference between occupation of the people.

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The testing is done taking favourite fast food outlet and occupation into consideration (TABLE NO 29)

Favourite fast-food outlet Occupation Student Businessmen Government service Professional self employed Private job

Raj hotel Us laxmi preident vishal Aram chatkaz kalatit Dominos pizza Bakers Yummys other 0 2 0 0 0 1 0 0 0 1 0 1 3 1 1 1 1 0 2 1 0 0 1 2 1 0 0 0 1 0 5 2 1 1 2 2 7 3 2 0 1 0 8 3 2 3 4 2 4 5 3 1 4 2 3 5 1 0 3 1

Interpretation The factors have been undertaken as due to change in occupation the taste and preferences changes. The students would prefer funky outlet whereas the professionals would prefer sophisticated outlet TESTING OF HYPOTHESIS Ho: There is no significant difference between the occupation of the people and favourite fast food outlet H1: There is significant difference between the the occupation of the people and favourite fast food outlet (TABLE NO 30)

Source of Variation Rows(occupation) Columns(favourite fast food outlet) Error

SS df 46.53333 5 75.66667 9 67.13333 45

MS F F crit 9.306667 6.238332 2.422085 8.407407 5.635551 2.095755 1.491852

Total 189.3333 59 (At 5% significance level)

93

For rows calculated value is 6.23 >2.42 tabulated value. From the above table we can see that in rows i.e. occupation of the people calculated value is more than tabulated value i.e. Fc>Ft. so, the null hypothesis i.e. there is significant difference in frequency of visit to the restaurant is rejected. It means that there is significant difference between occupation of the people and favourite fast food outlet.

For columns calculated value is 5.64>2.09tabulated value. In column i.e. favourite fast food outlet calculated value is more than tabulated value i.e. Fc>Ft. so the null hypothesis that there is no significant difference between the favourite fast food outlet within the selected is rejected It means that there is significant difference between occupation of the people and favourite fast food outlet.

94

MAJOR FINDINGS
This study indicates that majority of the customers visit the fast food retail store weekly (i.e. 38%) and minority of them (19%) visit fortnightly This study indicates that majority of the customers are willing to spend money of price range 200-500 (i.e. 60%) and minority of them says that they will spend money of price range 100-200 (i.e. 24%) in the fast food retail store This study indicates that majority of the customers (i.e. 50%) prefer special offers in the store and minority of them (i.e. 29%) prefer easy accessibility This study indicates that majority of the customers (i.e. 44%) of them are neutral to prefer the store for friendliness of staff and minority of them (i.e. 40% ) of them agree that they will prefer the store for friendliness of staff This study indicates that majority of the customers ( i.e. 39%) of them agree that they will prefer the store due to the variety of menu and minority of them (i.e. 21% ) of them neutral about the variety of menu in the store This study indicates that majority of the customers (i.e. 33%) of them disagree that they will prefer the store due to the calorie content in the food and minority of them (i.e. 31%) agree that they will prefer the store due to the calorie content in the food This study says that majority of the customers (i.e. 40% ) of them agree that they will prefer the store for ambience provided in the store This study says that majority of the customers (i.e. 35% ) of them agree that they are satisfied with the menu that was offered in the fast food store and followed by some of them are neutral about the menu for their family
95

This study indicates that majority of the customers (i.e. 45%) of them agree that they will prefer the store due to easy accessibility and locational advantage

This study indicates that majority of the customers (i.e. 33%) of them are neutral about the advertising strategy provided by the store and followed by that customers agree the store for the advertising strategy

This study indicates that majority of the customers (i.e. 41%) agree that they will prefer the store because of special offers and discounts.

Number of men visiting the fast food outlets is more in comparison to women. On weekends the number of women is more but on regular days the men visiting are more. This is because men on work prefer to eat from outside during evening. Also, the meetings conducted by the business houses and professionals are on regular days.

Though the income is nil, still people visit the fast food outlet. The groups of people who have nil income and still visit the fast food outlet are the students going to the schools and colleges. The people having income less than 5000 pm visit very less to the fast food outlets. This could be due to low income. With the increase in income i.e. more than 10,000 pm number of people visiting the fast food outlet also increases

The age group below 25, visits the fast food outlet maximum. We can see the decline in frequency of visit with the increase in age. The youngsters are more habituated to consuming fast food.

There is an increasing trend of the neutral families. The families which have more than 10 members visit the fast food outlet very less. This could be due to the decreasing purchasing power with increase in number of members. The family with 0-2 members also visit the fast food outlet less as they might have other options because cost may

96

not be a problem for them. Even working careers may limit their frequency. People visiting the fast food outlet along with their friends is maximum followed by along with the families. This shows that the youngsters prefer to visit along with their friends.

People visiting the fast food on weekends are the most. This shows the increasing trend of consuming the fast food. Generally, on

occasions and festivals most of the people to visit the fast food outlets especially on birthdays.

People prefer to spend 100-200 per head at the most are the maximum. The people who said not fixed were of the opinion that it depended on with whom they visited the fast food outlet. Also, some respondents said that it depended on their mood and savings

People preferring fast foods are more in comparison to other foods. People who chose other category were of the opinion that they preferred to have hygienic meal rather than having junk food. Owing to scorching heat of summer people who preferred to have only icecreams and juices are also more.

Ambience did not matter to people who prefer to eat in small fast food outlets or by hawker side. People who preferred to spend less visited any outlet. Many people were of the opinion that selection of fast food outlet depended on the ambience. Generally, these people were professionals and corporate people with good status

Cleanliness, colour and design of the crockery also affect the selection of fast food outlet. People did not prefer to go to outlet where cleanliness of the crockery was not maintained or where torn crockery is used. People who are unaffected by crockery feel that design and colour are unimportant.

97

Furniture and interiors also affect the selection of fast food outlet for 36 respondents. Especially people who are ready to spend more than Rs 200/- per head expect the outlet with good interiors and furniture. The lightings, the curtains, tables and the banners or frames on the walls attract the customers and provide them with a feeling of ease and comfort.

Eating on hawker side does not affect to most of the people. People who were affected were people with high income groups. Generally people who dont mind eating besides the hawker side are under the age of 25 and with an income of Rs. 10,000- 50,000 per month

People prefer more eating at restaurants due to quality food, hygiene, staff friendliness and service. People who prefer to hawkers are people with low income groups eat only at

People with large families and not too high income are fascinated by the discounts and schemes designed by the fast food outlets

If people are in a company with whom they need to show status-quo, they then are ready to spend more and at that time ambience and food quality, interiors and ambience affects them.

People especially teenagers show the variety seeking behaviour. They want diversification in the menu of the fast food outlet at the low cost. They also show impatience if the service speed is slow.

After a certain level of income, an individuals status quo is affected if he consumes fast-food at the hawker side.

98

MAJOR SUGGESTIONS
As majority of customers (38 percent) visit the store weekly especially weekends. So it is suggest to stores give special offers and discounts to capture more customers and retain loyal customers. As study refers more customers are looking for the special offers ,so it suggest stores to more concentrate on the special offers but no compromise in the quality of food. It is found that majority of customers are not fully satisfied with the friendliness of staff. So it is suggest that the stores should conduct soft skill training and make them give more customer service .Regular monitoring of the staff behavior towards customers is also suggested. Customers are happy with the MENU available in the stores .But it is suggested to add more customized menu and review the menu for every 3 months. It is suggest the stores to concentrate on the areas of ambience and locational strategy None of the restaurant in Jamnagar is adopting other marketing strategies except advertisements and promotions. So, the restaurants should undertake activities like event sponsorship, Internet advertising and Public Relation etc People love eating fast food like pani-puri, dabeli, katka bread, ghughra but they arent available at any restaurant. People are concerned about hygiene at hawker side and are ready to pay more. So, the restaurant should extend their product line to these products The restaurant should undertake new activities on weekends to hold the crowd and provide with augmented services. These Services could be stage performance of any dance or singers group, magic shows, puppet shows or any horoscope services.

99

 Every restaurant follows almost same strategies. Fast food outlets should distinguish themselves by having different interiors and furniture for different age groups Jamnagar city lacks with the concept of food courts and the people are not much aware about it. This concept can be made popular among people. Queuing among customers could be made interesting by arranging for some activities for waiting customers like arranging game zones or maze or puzzles for them. Antique crockery can be made use of to make the services distinct Small competitions can be held for the customers to keep them energized and enthusiastic Increase in product line could fetch more profits and market share Special arrangements should be made for privacy if needed by the customers Candle light dinner should be arranged on demand of customers On festivals, parties should be arranged to attract more customers

100

CONCLUSION

Indian retail sector is witnessing one of the most hectic Marketing activities of all times. The companies are fighting to win the hearts of customer who is God said by the business tycoons. There is always a first mover advantage in an upcoming sector.

The potential for the retail food fast industry is experience a drive to move ahead. The cut throat competition is prevailing in the market for the survival and growth. So in order to sustain and distinguish the fast food outlets have to go for continuous innovations, adopt new strategies and satisfy the customer through its services.

The prime contribution of this study is the identification and ranking of dimensions of customer preference in the foodservice industry. The dimensions are crucial for foodservice operators to develop strategies in fulfilling the customers preferences based on the current market landscape. This paper further contributes to the body of knowledge by developing instrument to capture the customer preference dimensions namely Halal, Price, Quality of Service, Branding and Tangibles. The measuring instrument is a valid tool for practitioners to develop relevant strategies that will enhance the foodservice business performance in the light of the highly competitive industry.

However, findings suggest that it is important to note the influence of other dimensions such as Price, which encompasses setting prices for children, as well as offer special pricing in menu packages, discounts, special prices for the regulars, promotional prices for new menus, preparing local delicacies, and reasonable price. Furthermore, Quality of Service is another dimension that influences customer preference which is centered on employees hygiene
101

practices, delicious food, the importance of delivering customers orders accurately, quick service, menu knowledge, and cleanliness of food preparation, commitment to quality of service, and friendly waiters or waitresses. Likewise Branding highlights foodservice customers considering attractive names of foodservice establishments, as well as menu items that must have brand names. The last dimension is Tangibles which relates to the importance of spacious seating arrangements, adequate parking spaces, a wide variety of menu items, and the importance of attractive interior design in a foodservice establishment. This study indicates that majority of the customers visit the fast food retail store weekly (i.e. 38%) and minority of them (19%) visit fortnightly. Majority of the customers are willing to spend money of price range 200-500 (i.e. 60%) and minority of them says that they will spend money of price range 100-200 (i.e. 24%) in the fast food retail store. Majority of the customers (i.e. 50%) prefer special offers in the store and minority of them (i.e. 29%) prefer easy accessibility. Majority of the customers (i.e. 44%) of them are neutral to prefer the store for friendliness of staff and minority of them (i.e. 40%) of them agree that they will prefer the store for friendliness of staff. Majority of the customers (i.e. 39%) of them agree that they will prefer the store due to the variety of menu and minority of them (i.e. 21%) menu in the store of them neutral about the variety of

Number of men visiting the fast food outlets is more in comparison to women. On weekends the number of women is more but on regular days the men visiting are more. This is because men on work prefer to eat from outside during evening. Also, the meetings conducted by the business houses and professionals are on regular days.

Though the income is nil, still people visit the fast food outlet. The group of people who have nil income and still visit the fast food outlet are the students going to the schools and colleges. People whose income is less than 5000 pm visit less to the fast food outlets. This could be due to low income. With the
102

The respondents of the age group below 25 visit the fast food outlet maximum. We can see the decline in frequency of visit with the increase in age. The youngsters are more habituated to consuming fast food. There is an increasing trend of the neutral families. The families which have more than 10 members visit the fast food outlet very less. This could be due to the decreasing purchasing power with increase in number of members. The family with 0-2 members also visit the fast food outlet less as they might have other options because cost may not be a problem for them. Even working careers may limit their frequency

People visiting the fast food outlet along with their friends is maximum followed by along with the families. This shows that the youngsters prefer to visit along with their friends. People visiting the fast food on weekends are the most. This shows the increasing trend of consuming the fast food. Generally, on occasions and festivals most of the people visit the fast food outlets especially on birthdays. People prefer to spend 100-200 per head at the most are the maximum. The people who said not fixed were of the opinion that it depended on with whom they visited the fast food outlet. Also, some respondents said that it depended on their mood and savings

People preferring fast foods are more in comparison to other foods. People who chose other category were of the opinion that they preferred to have hygienic meal rather than having junk food. Owing to scorching heat of summer people who preferred to have only ice-creams and juices are also more. Ambience does not matter to people who prefer to eat in small fast food outlets or by hawker side. People who preferred to spend less visited any outlet. Many people were of the opinion that selection of fast food outlet depended on the ambience. Generally, these people were professionals and corporate people with good status

103

Cleanliness, colour and design of the crockery also affect the selection of fast food outlet. People did not prefer to go to outlet where cleanliness of the crockery was not maintained or where torn crockery is used. People who are unaffected by crockery feel that design and colour are unimportant.

Furniture and interiors also affect the selection of fast food outlet for 36 respondents. Especially people who are ready to spend more than Rs 200/per head expect the outlet with good interiors and furniture. The lightings, the curtains, tables and the banners or frames on the walls attract the customers and provide them with a feeling of ease and comfort.

Eating on hawker side does not affect to most of the people. People who were affected were people with high income groups. Generally people who dont mind eating besides the hawker side are under the age of 25 and with an income of Rs. 10,000- 50,000 per month. People prefer more eating at restaurants due to quality food, hygiene, staff friendliness and service. People who prefer to eat only at hawkers are people with low income groups

People with large families and not too high income are fascinated by the discounts and schemes designed by the fast food outlets. If people are in a company with whom they need to show status-quo, they then are ready to spend more and at that time ambience and food quality, interiors and ambience affects them.

Teenagers possess a variety seeking behaviour towards eating habits. They want diversification in the menu of the fast food outlet at the low cost. They also show impatience if the service speed is slow. After a certain level of income, an individuals status quo is affected if he consumes fast-food at the hawker side.

104

Customers are happy with the MENU available in the stores .But it is suggested to add more customized menu and review the menu for every 3 months. None of the restaurant in Jamnagar is adopting other marketing strategies except advertisements and promotions. So, the restaurants should undertake activities like event sponsorship, Internet advertising and Public Relation etc. People love eating fast food like pani-puri, dabeli, katka bread, ghughra but they arent available at any restaurant. People are concerned about hygiene at hawker side and are ready to pay more. So, the restaurant should extend their product line to these products

The restaurant should undertake new activities on weekends to hold the crowd and provide with augmented services. These Services could be stage performance of any dance or singers group, magic shows, puppet shows or any horoscope services. Every restaurant follows almost same strategies. Fast food outlets should distinguish themselves by having different interiors and furniture for different age groups. Jamnagar city lacks with the concept of food courts and the people are not much aware about it. This concept can be made popular among people.

Queuing among customers could be made interesting by arranging for some activities for waiting customers like arranging game zones or maze or puzzles for them. Antique crockery can be made use of to make the services distinct. Small competitions can be held for the customers to keep them energized and enthusiastic. Increase in product line could fetch more profits and market share.

105

REFERENCES: BOOKS Bajaj Chetan, Rajnish Tuli, Nidhi V. Srivastava,

nd

Retail Edition,

Management, Oxford University Press, New Delhi, 2 2005.

A.J.Lamba, The art of Retailing , Tata Mc-Graw Hill Publishing Company Ltd., New Delhi, 2nd Edition,2003. Pradhan Swapna, Retailing Management, Tata Mc-Graw Hill Publishing Company Ltd., New Delhi, 2nd Edition,2007. Vedamani Gibson G., Retail Management, Jaico Publishing House, Mumbai, 3rd Edition, 2005. Kotler Philip, Marketing Management, Pearson Education (Singapore) Pte. New Delhi, 12th Edition, 2006, Page No. 466492.

WEBSITES http://www.planware.org/workingcapital.html http://www.ibef.org/industry/retail.aspx http://indiaonestop.com/retailing.html http://www.euromonitor.com/Retailing_in_India http://www.directories-today.com/i_retailing.htm www.proquest.com www.srn.com www.jstro.com www.emaraldsight.com www.valueresearchonline.com www.rediff.com/business/report/fast-food-industry www.scribd.com/doc/19018679/fast-food-industry-in-india-a-study www.scribd.com/doc/30231629/Consumer-Behaviour www.rediff.com/business/report/fast-food-industry.../20110125.htm

106

LIST OF CHARTS
Page No. 62 63 64 65 66 67 69 70 71 72 73 74 75 76

Chart No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10 11. 12. 13. 14.

Particulars Gender-Ratio of the respondents Age-group of the respondents Income-Range of the respondents No. of members in the family of the respondents With whom do the respondents visit the fast-food outlet Frequency of visiting the fast food outlet Price-range spent by the respondents Type of food preferred by the respondents Does ambience affect the respondents Does crockery affect the respondents Does furniture affect the respondents Does eating at hawker-side affect their status-quo Does veg and non-veg served at same location affect them Priority to various criteria while choosing a fast-food outlet Does staff-friendliness affect while choosing a fast-food outlet Does menu-diversity affect while choosing a fast-food outlet Does speed of service affect while choosing a fast-food outlet Does cleanliness affect while choosing a fast-food outlet

15.

78

16.

79

17.

80

18.

81

107

19. 20. 21. 22.

Does accessibility and location affect the respondents Does discounts and schemes affect the respondents Where do respondents enjoy the most for eating Which is the favourite fast food outlet of the respondents

82 83 84 85

108

LIST OF TABLES
Page No. 62 63 64 65 66 67 69 70 71 72 73 74 75 76

Chart No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10 11. 12. 13. 14.

Particulars Gender-Ratio of the respondents Age-group of the respondents Income-Range of the respondents No. of members in the family of the respondents With whom do the respondents visit the fast-food outlet Frequency of visiting the fast food outlet Price-range spent by the respondents Type of food preferred by the respondents Does ambience affect the respondents Does crockery affect the respondents Does furniture affect the respondents Does eating at hawker-side affect their status-quo Does veg and non-veg served at same location affect them Priority to various criteria while choosing a fast-food outlet Does staff-friendliness affect while choosing a fast-food outlet Does menu-diversity affect while choosing a fast-food outlet Does speed of service affect while choosing a fast-food outlet Does cleanliness affect while choosing a fast-food outlet

15.

78

16.

79

17.

80

18.

81

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19. 20. 21. 22. 23 24 25 26 27 28 29 30

Does accessibility and location affect the respondents Does discounts and schemes affect the respondents Where do respondents enjoy the most for eating Which is the favourite fast food outlet of the respondents Testing of Age and frequency of visit Annova table of of Age and frequency of visit Testing of price and food Annova table of of price and food Testing of occupation and frequency Annova table of occupation and frequency Testing of favourite food and occupation Annova table of favourite food and occupation

82 83 84 85 87 87 89 89 91 91 93 93

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CUSTOMERS PREFERENCE TOWARDS RESTAURENT & FAST-FOODOUTLETS IN JAMNAGAR

QUESTIONNAIRE
Dear Respondent, We, Mehta Chandni & Sangtani Priya, students of MBA Sem IV, request you to fill this questionnaire for us. This is a part of our MBA program and your co-operation will help us in completing our project. The information provided by you will be kept confidential and will be used for the academic purpose only. Please fill in all the details. You can mark more than one option.

NAME:
1. Gender

__________________________________
: : _____ Male _____ Female

2. Age

_____ Below 25 _____ 35-45

_____ 26-35 _____ 45 and above

3. Average income per month _____ Nil _____ 5001-10000 _____ Above 50000 _____ Below 5000 _____ 10001-50000

4. Total number of members in the family 0-2 5-10 ____ ____ 3-5 More than 10 _____ _____

5 Occupation: Student Businessman _____ _____

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Professional Self employed

____ _____

Government service _____ 6

Private job

_____

What is your educational qualification? Below SSc HSc Post graduate _____ _____ _____ SSc Graduate Doctorate _____ _____ _____

Where do you dwell? (Residence) Own house Tenement Other ______ ______ ______ Apartment Bungalow ______ ______

With whom do you visit to a fast food outlet? Alone Spouse Others _______ _______ _______ Friends Family _______ _______

9 Daily

Frequency of visit to a restaurant or fast food outlet. Once in a month Rarely Birthday/Anniversary/Occasions Twice or thrice a week Not Fixed

Once in a week Fortnightly Festivals Weekends

10 How much price are you willing to spend?

Less than 100 100-200 Not fixed

200-500 Above 500

11 Preference of restaurant due to the variety of menu available in the restaurant

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Strongly disagree Disagree Strongly agree

Neutral Agree

12 Preference of restaurant due to friendliness of staff Strongly disagree Disagree Strongly agree Neutral Agree

13 Preference of outlet due the service speed Strongly disagree Disagree Strongly agree Neutral Agree

14 Preference of restaurant due to the cleanliness and hygiene

Strongly disagree Disagree Strongly agree

Neutral Agree

15 Preference of restaurant due to easy accessibility and location advantage

Strongly disagree Disagree Strongly agree

Neutral Agree

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16 Preference of restaurant due to special offer and discounts

Strongly disagree Disagree Strongly agree

Neutral Agree

17 Type of food you prefer Fast-food (Burger/Sandwich/Pizza)etc Chinese Juices , Ice-creams, Sweets, Desserts & Beverages Others

18 Does the ambience affect your selection of fast food consumption? Yes/no 19 Are you affected by the crockery served in? Yes/no 20 Are you affected by the furniture and interiors? Yes/no 21 Does eating on hawker side affect your status-quo? Yes/no 22 Does availability of vegetarian and non-vegetarian food together affect your selection of restaurant? Yes/no 23 Give priority while selection of restaurant Food Price Ambience Location Easy accessibility Hospitality Privacy Services Brand image Special offer

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24

Type

of

food

you

prefer

at

hawker

side?

__________________________________

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25 Where do you enjoy eating the most? Restaurant Hawkers Both

26 Which is your favourite fast food outlet in the city? Hotel President Vishal International Hotel Aram Chatkaaz Kalatit Dominos US Pizza Rajlaxmi Bakers Yummys Others(specify)

Why?_________________________________________________________ _____________ 27 What suggestions would you like to make for the fast food menu in Jamnagar? _____________________________________

THANK YOU ENJOY!!

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