Description
This is presentation is about Jumbo king branding strategies.
Content
• • EXECUTIVE SUMMARY INTRODUCTION • MARKET SHARE ABOUT THE INDUSTRY ABOUT THE COMPANY
•
• • • • • •
METHODLOGY RESEARCH PROBLEM TOOL AND TECHNIQUES RESEARCH OBJECTIVE QUESTIONAIRE FORMATION QUESTIONNAIRE PILOT TESTING SAMPLING DESIGN
•
• • • • • • • • • • •
ANALYSIS CODE BOOK DATA PREPARATION DATA ANALYSIS HYPOTHESIS MAKING AND TESTING
RECOMMENDATIONS CONCLUSION LIMITATIONS OF THE PROJECT BIBLOGRAPHY
Executive Summary
This survey is done to assess the market position of various fast food outlets in Ahmedabad city and device strategies to increase the brand image of Jumbo King. The research has been done in order to support the distribution and marketing strategies of “Jumbo King” and thereby applying the findings of the research to increase the brand awareness in Ahmedabad. Today because of cut throat competition in fast food industry, Multinational Retail chain outlets are now focusing more value proposition for its customers and grabbing the market share. We did descriptive statistics and inferential analysis using SPSS software. We collected information through the means of questionnaire and on the basis of the data collected we performed various tests and analyzed the data through various angles. The data was mainly focusing on Quality, Service Ambience and Pricing across various fast food outlets like Pizza Hut, Dominoz, Subway, McDonalds and other local fast food outlets. Based on the analysis of the data we have recommended few marketing strategies to Jumbo King in order to open new outlets across the city and focusing more on ambience n service aspect.
Introduction
‘Man has always been driven by three basic needs: Food, Shelter and Clothing.’ These needs have driven every human to ‘Act’. Leaving shelter and clothing aside, the main focus of this presentation lies on ‘Food’. Times have changed and so have we. Everything is moving at a very fast speed and we do not have time to ‘waste’ time. Every work comes with a deadline, so new and better options have to be innovated from time to time to finish the task effectively in the minimum possible time. This time constraint has facilitated the innovation of a number of good products, from ‘Mobiles and Telephones’ to ‘Mixer Grinder’, from ‘Washing Machine’ to ‘Automobiles’. This has also led to a development in the food industry in the form of “FAST FOODS”. 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 a store with low quality preparation and served to the customer in a packaged form for take-outs or take-away.
Market Share
Whenever we think of Fast food, the things which click to our minds are burgers, pizzas, French fries and sandwiches. If we think of any place where we should go out for eating, the places which strike our minds are McDonalds, Pizza Hut, Dominos and all other such fast food restaurants. These brands have created what is called as “TOP OF THE MIND ASSOCIATION” in our lives. The revenues which these companies generate runs in billions with McDonalds leading the race with $22.8 billion, equivalent to 19% market share, followed by Doctor’s Associates, Inc. with $11.3 billion, equivalent to 10% market share and Yum brands with $10.4 billion, equivalent to % market share in 2007 respectively. All of them are giving in their best to capture more and more of the market share. The various marketing strategies and promotional campaigns adopted by them exhibits the same.
Industry Background
India is among the fastest growing economy in the world. It is consistently growing at a pace of 7.5-8.5% a year from the past 5 years. With this growth rate and rising income level, people are now switching to fast pace life with inclusion of fast food in their diet. India currently has more than 900 fast food restaurants and coffee joints, and is likely to see the addition of at least 400 restaurants, fast food outlets and coffee joints. Yum has around 134 Pizza Hut restaurants in India and plans to scale up to 175 by 2010. McDonald's has about 123 restaurants in India and aims at 220 outlets by end2008, investing about US$ 125.28 million in the next 2-3 years. Pizza Hut serves over 300,000 customers every week in India runs 30 KFC outlets and intends to add 15-20 new restaurants. Domino's Pizza India will invest US$ 55.12 - 57.62 million in India in the next three years to expand its retail chain and manufacturing capacities. Popular Indian "fast" food delicacies which include Vada pav, Papri chaat, Bhelpuri, Panipuri, Dabeli, Khaman Dhokla and Dahi vada have existed long before these fast food outlets came into existence. They cater to the very own Indian taste for spices and now finding it difficult to sustain in this competitive environment.
Company
“Jumbo King” inspired from fast-food burger chain McDonald's. Dheeraj Gupta decided to sell Mumbai's favorite poor man's food as a brand. He started Jumbo King, a branded vada pav chain. Gupta changed all the rules by introducing automation, packaging, a larger size, different cheese, round bread (otherwise the pav is square) and flat patties instead of round. Their selling proposition was hygiene. Since they had nothing to lose, they experimented with everything - two outlets on the same side of one station, packaging, vada pav with cheese, flat patties, round bread, toasted bread and so on. From one store outside a suburban local station, today there are "Jumbo King" outlets in Mumbai, Thane and Pune in Maharashtra, in Ahmedabad, Surat and Vadodara in Gujarat.
Methodology
Research Problem
After the initial study of the market, we feel the major problems Jumbo King is facing are: 1. Proper selection of customer segment.
2. A structured approach to marketing strategies and selection of integrated
marketing communication channels
Tools & Techniques
Multidimensional scaling (MDS) is a set of related statistical techniques often used in information visualization for exploring similarities or dissimilarities in data. MDS is a special case of ordination. It creates a special description of a respondent’s perception about a product, service or other objects of interest on a perceptual map. In order to enter the competitive market a research will be conducted on behalf of Jumbo King of various fast food brands available in Ahmedabad to know the positioning of different fast food brands as per the attributes like ‘service, ambience, variety, price, quality’. A perceptual map will be graphed based on all the listed parameters to develop the marketing strategies for increasing the sales of Jumbo King’s Vada Pav. Finally the implications of research results will be used to build Jumbo King as a brand. Semantic Differential scale will be used to measure the psychological meaning of the research using bipolar adjectives associated with Fast Food outlets. After completing the sample survey this method cannot be used exhaustively due to technical constraints and further development in the questionnaire will help us to analyses the data more exhaustively using the Multidimensional scaling and perceptual mapping. For the analysis of this report we have used descriptive statistics, 3D pie charts and inferential analysis using SPSS software and MDS is currently out of scope of this report.
Research Objective
The objective of this research was to find the order of preference in fast food outlets among the people of Ahmedabad and to place Jumbo King according to grab good share in industry. The above objectives will be addressed by analyzing the following questions:
1. What is the most preferred fast food outlet? 2. What people look in spite of delicious food like ambience, service or other
tangibles and intangibles in a particular restaurant?
3. How often the people visit restaurants? Questionnaire Formation (Measurement Questions)
Measurement question are the questions participants must answer if the researcher is to gather the needed information and resolve the management question. The questions had to be framed keeping in view the research objective and also the behavioral aspects of a questionnaire. The questionnaire should have the relevant questions pertaining to the research topic which would best get the information out of the people being surveyed. Further the question has to be of all types, not being confined to any one particular type of questions. In our questionnaire, we have tried to include the questions from all the aspect. The questionnaire consists of personal questions, checklist, dichotomous question, leading question, ranking question, etc. Care has also been taken to see that the questions are structured and does not have any inherent problem. The question should not be double barreled, i.e. asking two questions in a single question. Question should not have the order bias which leads to primary effect (first alternative) or the recency effect (last alternative). Keeping all these things in mind, we framed the question for the survey. The questions are framed to address the following objective: • • • • Frequency to eat at fast food outlets Consumption behavior Most preferred brand Ratings against Jumbo King Focus on food quality, restaurant ambience & service and products offred and its pricing
•
The different objective listed above is small steps towards the large research objective. The different questions that were asked to the participants are as follow:
Questionnaire
1. You fall in which age group? ? 16-40 2. What is your gender? ? Male ? Female ? 41-60 ? 61 and above
3. How frequently do you eat at Fast Food outlets? ? Daily month frequently 4. Would you prefer to:? Eat in ? Take away ? Both ? 2-3 times a week ? once a month ? Once or twice a year ? Less ? once a week ? 2-3 times a
? Once every three months
5. Which brands of Fast Food outlets will you prefer most? ? McDonald ? Jumbo King ? Others (Please Specify) _______________ 6. Why according to you it is best? (You can tick more than 1) ? Pizza Hut ? Dominoz ? Subway
? Quality Pricing
? Service
? Experience
?
7. FOOD QUALITY ? For your most preferred brand Strongly Disagree The menu has a good variety of items The quality of food is excellent The food is tasty and flavourful Overall quality of food and beverage is good Food is served hot and fresh Disagree Neutral Agree Strongly Agree
? For Jumbo King (please ignore if not visited)
Strongly Disagree The menu has a good variety of items The quality of food is excellent The food is tasty and flavourful Overall quality of food and beverage is good Food is served hot and fresh 8. RESTAURANT SERVICE ? For your most preferred brand Disagree Neutral Agree Strongly Agree
Strongly Disagree Staff is patient when taking my order I was served promptly The menu board was easy to read Staff speaks clearly Staff is friendly and courteous
Disagree
Neutral
Agree
Strongly Agree
? For Jumbo King (please ignore if not visited)
Strongly Disagree Staff is patient when taking my order I was served promptly The menu board was easy to read Staff speaks clearly Staff is friendly and courteous Disagree Neutral Agree Strongly Agree
9. PRODUCT PRICE ? For your most preferred brand Strongly Disagree The food is a good value for money Prices are competitive to other brands Products are economical It gives variety of offers and good discounts Disagree Neutral Agree Strongly Agree
? For Jumbo King (please ignore if not visited)
Strongly Disagree The food is a good value for money Prices are competitive to other brands Products are economical It gives variety of offers
Disagree
Neutral
Agree
Strongly Agree
and good discounts 10. RESTAURANT AMBIENCE
?
For your most preferred brand Strongly Disagree Disagree Neutral Agree Strongly Agree
Location is appropriate Decoration is suitable Cleanliness Lighting is appropriate Sitting arrangement is spacious and comfortable
? For Jumbo King (please ignore if not visited)
Strongly Disagree Location is appropriate Decoration is suitable Cleanliness Lighting is appropriate Sitting arrangement is spacious and comfortable Disagree Neutral Agree Strongly Agree
Pilot Testing
A survey is a set of structured questions in the form of a questionnaire which is administered to the sample under study. We made a questionnaire and at the first instance conducted a pilot study so as to find out the appropriateness of the questionnaire to a sample of 10 administered respondents who were the students of Nirma University. The purpose of the sample testing is to identify and change the confusing and awkward questions. It also saves a lot of time by giving the appropriate sample size for the research. Once we got the response for our questionnaire, which the respondents did not found any difficulty while dealing with the questionnaire then we preceded towards the actual filling up of the questionnaire. The questionnaire was filled from the sample size of 150 respondents across varied age groups to carry further the study for analysis.
Sampling
The basic idea of sampling is that by selecting some of the elements in a population, we may draw conclusion about the entire population. This is done because of 1) lower cost 2) greater accuracy of result 3) greater speed of data collection 4) availability of population element The sampling for the project is done on the basis of following points: Target Population: In this situation Jumbo King wants to open new Vada Pav outlets catering to all age groups with varied income levels. Based on this we our target population is complete Ahmedabad with people from age group of 16 to 61+ with varied income level.
Parameters of Interest: The parameters of interest have been chosen according to the common knowledge and the past experiences of the researcher in consultation with Jumbo King. The following factors that could possibly affect the kind of cuisine or restaurant choice have been considered and then checked for their affect:
1. Ambience, Services, Proximity, Price, Crowd 2. Income 3. Age 4. Theme of restaurant Sample type: We have divided the population of Ahmedabad on the basis of Stratified sampling on the basis of Age groups: 16-40, 41-60, 61 and above To get the holistic picture and to get a fair view of the food preferences of the people of Ahmedabad, STRATIFIED sampling has been employed. We surveyed the people visiting various different restaurants of the city, people in various malls. The locations chosen were located in different parts of the city. Sample Size: A sample size of 150 respondents is used to meet the research objective. Sampling Element: Individual person
Analysis Code Book
Codebook is as follows: Questi on 1 Variable Number 1 Code description 1. 2. 3. 1. 2. 16-40 41-60 61+ Male Female Variable name Age Group
2
2
Gender
3
3
1. 2. 3. 4. 5. 6. 7. 8. 1. 2. 3. 1. 2. 3. 4. 5. 6. 1. 2. 3. 4. 1. 2. 3. 4. 5. 1. 2. 3. 4. 5. 1. 2. 3. 4. 5. 1. 2. 3. 4. 5.
4
4
5
5
6
6
7
7
8
8
9
9
10
10
Daily 2-3 times a week Once a week 2-3 times a month Once a month Once every 3 months Once or twice a year Less frequently Eat In Take Away Both McDonalds Pizza Hut Dominoz Subway Jumbo King Others Quality Service Experience Price Strongly Disagree Disagree Neutral Agree Strongly Agree Strongly Disagree Disagree Neutral Agree Strongly Agree Strongly Disagree Disagree Neutral Agree Strongly Agree Strongly Disagree Disagree Neutral Agree Strongly Agree
Frequency of Eating out
Consumption Preference Most Preferred Brand
Attributes for Preferred Brand
Food quality
Restaurant Service
Product price
Restaurant Ambience
Data Preparation
The data obtained via the survey is inserted into an excel sheet so that analysis can be done effectively. Then the information was compared in groups to see the effect of one data onto the other. For example, the age group liking for various brands were evaluated, gender liking was seen. Based on the age group eating behavior was analyzed etc. The data was analyzed from various angles. The data is represented via various graphs, tables, etc.
Data Analysis
Various analyses have been done to categorize the responses in various segments keeping in mind to suggest strategies to Jumbo King for opening new outlets in city and to increase the brand awareness... These analyses have been represented in the graphical form as follow: These patterns were observed via the survey conducted on the residents of Ahmedabad city at various locations.
Brand Preference
(SPSS Output for Brand Preference based on age group and gender)
? Brand Preference based on age group
As it can been inferred from the graph above that across all the age groups McDonalds is the most preferred brand because of its price and quality product. But we can see a large variation among the age groups for the next preferred brands. In the age group of 16-40 yrs there are 27% of respondents after McDonalds who prefer Pizza Hut, while in age group of 4160 Dominoz is the 2nd choice of respondents. The most important observation which can be made is that in the 61+ age group respondents prefer Subway sandwiches than pizzas. We can also see the influence of other local outlets is also significant among the people which are a tough competition not only for Jumbo King but for all the major brands.
? Brand Preference based on Gender
From the graph below when we analyze the brand preference with regards of gender we observe that McDonalds is the favorite among both the groups. Female correspondents are more Pizza or less that equal in or percentage Hut, prefers
Dominoz
Subway. Whereas when we look into male correspondent’s data they prefer Pizza Hut followed by local outlets more as compared to Dominoz or Subway. From the graph we can see that liking for Jumbo King is not much because of its low brand awareness and less number of outlets in city.
? Consumption Preference
The consumption preference of the people of Ahmedabad can be seen from the below bar graph. Across all the age groups people prefer eating at the outlets and very few people actually like to just take away the parcel. People of age group 41-60 are open for both the options.
(SPSS output for consumption preference based on age group and gender) ? Consumption Behavior This graph gives a holistic picture of the frequency of visits across the different age groups. The survey revealed the consumption behavior of the respondents of Ahmedabad. In the age group of 16-40 we can see that max number of people visit 2-3 times in a week or atleast once a week. This shows that college going group and working professionals have more liking towards fast food and have high consumption where as even the spending is more in this group. This is the most price sensitive group who change their preferences based on the pricing of products. Similarly in the age group 41-60 they visit fast food outlets once in 3 months. This section of society is working class and look for Value for money and are more concerned for savings and less expenditure. People of age group 61+ mostly visit these outlets once or twice in a year that too majorly during family occassions. Thus in Ahmedabad city we can see that consumption of fast food is not much as we go far away on age group axis.
? Attributes
Carrying on with above discussion the following graph shows that people of all age group look for quality as the major attribute while selecting for fast food outlet. People term Value for money on the basis of quality intake and it has been observed then people do tend to change their preference if they are not satisfied with the quality of food. People in the age group of 16-40 alos look for the experince as the 2nd major factor while deciding to dine out. People rate all the major brands least on the price attribute. They are more focus on quality, service and experience rather on price and do tend to compromise on prices. From the second graph we can see that out of 156 respondents almost 90% look for quality, 50% rate service as the deciding factor followed by experience and price. These percenntage is corresponding to choose among McDonalds, Pizza Hut, Dominoz, Subway, Jumbo King and other local fast food outlets.
Recommendations
"I was inspired by McDonald's: behind the Arches, says Dheeraj Gupta, founder and managing director of Jumbo King, referring to the John F. Love book about the world's largest fast-food chain.”But my target is the suburban train traveler." With a plan to open about 500 food joints across the country by March 2010 and to increase its turnover ten-fold to the tune of Rs 200 crores Jumbo King is eyeing to extend its market out of Mumbai. In Ahmedabad and Surat, it has introduced four new products, not available even in Mumbai. Jumbo King should follow an exclusive franchisee model with networking and stringent quality control in order to break even early. The company should also go for public and private partnership such as the Indian Railway Catering and Tourism Corporation Ltd for opening outlets inside railway stations and airports, and also with Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd for kiosks at petrol pumps along the highways. They should also focus on opening company owned outlets inside the malls and retail chains so that target group can be increased and increasing the brand awareness. "Jumbo King has already attained the price-quality equation in the form of selling Vada Pav priced from Rs. 8 up to Rs. 16 a piece giving tough competition to McDonalds. Value is a key in India, where it's not unlikely to see someone driving a Mercedes stop to buy snacks from a pavement stall. So now the ultimate motive is to tap this segment of society. The best way to reach this segment is by opening kiosks at malls in Ahmedabad where people look for ambience and experience. Jumbo king has to change its selling proposition as compared to what it does in Mumbai where people in fast paced life are not looking for major change in the menu of Jumbo King. Whereas for increasing the target base and competing with other multinational brands like McDonalds, Pizza Hut, Dominoz, U.S.Pizza and Subway, Jumbo king has to go for extended version of menu list. Jumbo King is facing competition from not only high priced fast food outlets but also from local outlets like Gwaliya, Honest Pav Bhaji, Shree Krupa, Rajasthan Dhaba, Choice, Sankalp etc. Jumbo King should introduce new Vada Pavs with local touch so as to appeal the local masses. Extend the product offering with large range of pricing along with additional side orders like beverages, ice-creams. They can even go for customized Vada Pav offering choice in size and shape of buns, chutneys and
fillings besides the regular ones. The real competitor for Jumbo King is not McDonald's but the man selling vada pav on the roadside. They must turn each of them into a Jumbo King franchisee. Branding may evolve with expansion. Jumbo King's message in Maharashtra is "the hygienic vada pav." That's what differentiates it from the vada pav available at half the price from a cart perhaps just 100 meters away. In Gujarat, where vada pav is less known, it can be sold as "Mumbai's favorite fast food." They can say that this is what Mumbai eats on the go, and try a Bollywood connection. Bollywood sells all over India. "Jumbo King has a great product and a great concept". What it needs to do is to work on its distribution model. It needs to look at being present in places like cinema halls, food courts of shopping malls, railways stations and airports. They can also look at backward integration to bring about more economies of scale." They can strengthen their supply chain and other logistics such as central kitchens in major cities, the company can tie up with potato suppliers and indenting agents supplying gram flour and other ingredients as well.
Conclusion
The survey and subsequent analysis report will be highly useful to Jumbo King in designing their strategies and implementing them while opening new outlets in Ahmedabad city and the neighboring regions. The research will facilitate the value based information about prospects. Our survey shows that the Jumbo King has very low brand awareness among the residents of Ahmedabad and they have to improve its brand image by opening more outlets across the city and reaching the customer. Based on the survey it has been observed that people of age group 16-40 visit fast food outlets more frequently and this is major group who spends on fast food, so Jumbo King should target this segment that also look for experience while deciding on the brand. Price sensitive population does give weightage to ambience. Whereas people prefer ambience and service mostly while making decision of their outgoing. Ambience overcomes price and proximity factors. The survey will help Jumbo King to build friendly and effective relationship and to nourish them. It will also help them to gather information on how they can customize
their services according to customer requirements. Lastly, it will aid them in increasing their customer base and build brand image.
Limitations of Project
1) This project was actually planned to be analyzed by Multidimensional scaling and perceptual mapping technique but due to technical discrepancies at the end of data collections, the technology was not used for final analysis. 2) The credibility of the data depends on the genieunity of the responses that the respondents would provide. 3) This research analyses only four parameters for the fast food restaurants viz. ambience, price, quality and service. Other parameters if any are ignored in this study. 4) This project is mainly carried out to assess the competition of Jumbo king with the retail chain outlets in Ahmedabad. The effects of other smaller and local fast food outlets are not considered in this study. 5) Even though the responses of individuals are considered, the behavior of family outings is ambiguous from this study which may affect the individual decisions on some occasions. 6) Loyalty to any particular brand is ignored in this study considering the general behavior of the people.
Bibliography
Websites 1. Wikipedia.com( about Business Research) 2. Quirk.com 3. http://www.managementhelp.org/research/research.htm 4. http://www.google.co.in Books 1. Business Research Method, Donald R cooper & Pamela S Schindler. 9th Edition.
doc_602994447.doc
This is presentation is about Jumbo king branding strategies.
Content
• • EXECUTIVE SUMMARY INTRODUCTION • MARKET SHARE ABOUT THE INDUSTRY ABOUT THE COMPANY
•
• • • • • •
METHODLOGY RESEARCH PROBLEM TOOL AND TECHNIQUES RESEARCH OBJECTIVE QUESTIONAIRE FORMATION QUESTIONNAIRE PILOT TESTING SAMPLING DESIGN
•
• • • • • • • • • • •
ANALYSIS CODE BOOK DATA PREPARATION DATA ANALYSIS HYPOTHESIS MAKING AND TESTING
RECOMMENDATIONS CONCLUSION LIMITATIONS OF THE PROJECT BIBLOGRAPHY
Executive Summary
This survey is done to assess the market position of various fast food outlets in Ahmedabad city and device strategies to increase the brand image of Jumbo King. The research has been done in order to support the distribution and marketing strategies of “Jumbo King” and thereby applying the findings of the research to increase the brand awareness in Ahmedabad. Today because of cut throat competition in fast food industry, Multinational Retail chain outlets are now focusing more value proposition for its customers and grabbing the market share. We did descriptive statistics and inferential analysis using SPSS software. We collected information through the means of questionnaire and on the basis of the data collected we performed various tests and analyzed the data through various angles. The data was mainly focusing on Quality, Service Ambience and Pricing across various fast food outlets like Pizza Hut, Dominoz, Subway, McDonalds and other local fast food outlets. Based on the analysis of the data we have recommended few marketing strategies to Jumbo King in order to open new outlets across the city and focusing more on ambience n service aspect.
Introduction
‘Man has always been driven by three basic needs: Food, Shelter and Clothing.’ These needs have driven every human to ‘Act’. Leaving shelter and clothing aside, the main focus of this presentation lies on ‘Food’. Times have changed and so have we. Everything is moving at a very fast speed and we do not have time to ‘waste’ time. Every work comes with a deadline, so new and better options have to be innovated from time to time to finish the task effectively in the minimum possible time. This time constraint has facilitated the innovation of a number of good products, from ‘Mobiles and Telephones’ to ‘Mixer Grinder’, from ‘Washing Machine’ to ‘Automobiles’. This has also led to a development in the food industry in the form of “FAST FOODS”. 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 a store with low quality preparation and served to the customer in a packaged form for take-outs or take-away.
Market Share
Whenever we think of Fast food, the things which click to our minds are burgers, pizzas, French fries and sandwiches. If we think of any place where we should go out for eating, the places which strike our minds are McDonalds, Pizza Hut, Dominos and all other such fast food restaurants. These brands have created what is called as “TOP OF THE MIND ASSOCIATION” in our lives. The revenues which these companies generate runs in billions with McDonalds leading the race with $22.8 billion, equivalent to 19% market share, followed by Doctor’s Associates, Inc. with $11.3 billion, equivalent to 10% market share and Yum brands with $10.4 billion, equivalent to % market share in 2007 respectively. All of them are giving in their best to capture more and more of the market share. The various marketing strategies and promotional campaigns adopted by them exhibits the same.
Industry Background
India is among the fastest growing economy in the world. It is consistently growing at a pace of 7.5-8.5% a year from the past 5 years. With this growth rate and rising income level, people are now switching to fast pace life with inclusion of fast food in their diet. India currently has more than 900 fast food restaurants and coffee joints, and is likely to see the addition of at least 400 restaurants, fast food outlets and coffee joints. Yum has around 134 Pizza Hut restaurants in India and plans to scale up to 175 by 2010. McDonald's has about 123 restaurants in India and aims at 220 outlets by end2008, investing about US$ 125.28 million in the next 2-3 years. Pizza Hut serves over 300,000 customers every week in India runs 30 KFC outlets and intends to add 15-20 new restaurants. Domino's Pizza India will invest US$ 55.12 - 57.62 million in India in the next three years to expand its retail chain and manufacturing capacities. Popular Indian "fast" food delicacies which include Vada pav, Papri chaat, Bhelpuri, Panipuri, Dabeli, Khaman Dhokla and Dahi vada have existed long before these fast food outlets came into existence. They cater to the very own Indian taste for spices and now finding it difficult to sustain in this competitive environment.
Company
“Jumbo King” inspired from fast-food burger chain McDonald's. Dheeraj Gupta decided to sell Mumbai's favorite poor man's food as a brand. He started Jumbo King, a branded vada pav chain. Gupta changed all the rules by introducing automation, packaging, a larger size, different cheese, round bread (otherwise the pav is square) and flat patties instead of round. Their selling proposition was hygiene. Since they had nothing to lose, they experimented with everything - two outlets on the same side of one station, packaging, vada pav with cheese, flat patties, round bread, toasted bread and so on. From one store outside a suburban local station, today there are "Jumbo King" outlets in Mumbai, Thane and Pune in Maharashtra, in Ahmedabad, Surat and Vadodara in Gujarat.
Methodology
Research Problem
After the initial study of the market, we feel the major problems Jumbo King is facing are: 1. Proper selection of customer segment.
2. A structured approach to marketing strategies and selection of integrated
marketing communication channels
Tools & Techniques
Multidimensional scaling (MDS) is a set of related statistical techniques often used in information visualization for exploring similarities or dissimilarities in data. MDS is a special case of ordination. It creates a special description of a respondent’s perception about a product, service or other objects of interest on a perceptual map. In order to enter the competitive market a research will be conducted on behalf of Jumbo King of various fast food brands available in Ahmedabad to know the positioning of different fast food brands as per the attributes like ‘service, ambience, variety, price, quality’. A perceptual map will be graphed based on all the listed parameters to develop the marketing strategies for increasing the sales of Jumbo King’s Vada Pav. Finally the implications of research results will be used to build Jumbo King as a brand. Semantic Differential scale will be used to measure the psychological meaning of the research using bipolar adjectives associated with Fast Food outlets. After completing the sample survey this method cannot be used exhaustively due to technical constraints and further development in the questionnaire will help us to analyses the data more exhaustively using the Multidimensional scaling and perceptual mapping. For the analysis of this report we have used descriptive statistics, 3D pie charts and inferential analysis using SPSS software and MDS is currently out of scope of this report.
Research Objective
The objective of this research was to find the order of preference in fast food outlets among the people of Ahmedabad and to place Jumbo King according to grab good share in industry. The above objectives will be addressed by analyzing the following questions:
1. What is the most preferred fast food outlet? 2. What people look in spite of delicious food like ambience, service or other
tangibles and intangibles in a particular restaurant?
3. How often the people visit restaurants? Questionnaire Formation (Measurement Questions)
Measurement question are the questions participants must answer if the researcher is to gather the needed information and resolve the management question. The questions had to be framed keeping in view the research objective and also the behavioral aspects of a questionnaire. The questionnaire should have the relevant questions pertaining to the research topic which would best get the information out of the people being surveyed. Further the question has to be of all types, not being confined to any one particular type of questions. In our questionnaire, we have tried to include the questions from all the aspect. The questionnaire consists of personal questions, checklist, dichotomous question, leading question, ranking question, etc. Care has also been taken to see that the questions are structured and does not have any inherent problem. The question should not be double barreled, i.e. asking two questions in a single question. Question should not have the order bias which leads to primary effect (first alternative) or the recency effect (last alternative). Keeping all these things in mind, we framed the question for the survey. The questions are framed to address the following objective: • • • • Frequency to eat at fast food outlets Consumption behavior Most preferred brand Ratings against Jumbo King Focus on food quality, restaurant ambience & service and products offred and its pricing
•
The different objective listed above is small steps towards the large research objective. The different questions that were asked to the participants are as follow:
Questionnaire
1. You fall in which age group? ? 16-40 2. What is your gender? ? Male ? Female ? 41-60 ? 61 and above
3. How frequently do you eat at Fast Food outlets? ? Daily month frequently 4. Would you prefer to:? Eat in ? Take away ? Both ? 2-3 times a week ? once a month ? Once or twice a year ? Less ? once a week ? 2-3 times a
? Once every three months
5. Which brands of Fast Food outlets will you prefer most? ? McDonald ? Jumbo King ? Others (Please Specify) _______________ 6. Why according to you it is best? (You can tick more than 1) ? Pizza Hut ? Dominoz ? Subway
? Quality Pricing
? Service
? Experience
?
7. FOOD QUALITY ? For your most preferred brand Strongly Disagree The menu has a good variety of items The quality of food is excellent The food is tasty and flavourful Overall quality of food and beverage is good Food is served hot and fresh Disagree Neutral Agree Strongly Agree
? For Jumbo King (please ignore if not visited)
Strongly Disagree The menu has a good variety of items The quality of food is excellent The food is tasty and flavourful Overall quality of food and beverage is good Food is served hot and fresh 8. RESTAURANT SERVICE ? For your most preferred brand Disagree Neutral Agree Strongly Agree
Strongly Disagree Staff is patient when taking my order I was served promptly The menu board was easy to read Staff speaks clearly Staff is friendly and courteous
Disagree
Neutral
Agree
Strongly Agree
? For Jumbo King (please ignore if not visited)
Strongly Disagree Staff is patient when taking my order I was served promptly The menu board was easy to read Staff speaks clearly Staff is friendly and courteous Disagree Neutral Agree Strongly Agree
9. PRODUCT PRICE ? For your most preferred brand Strongly Disagree The food is a good value for money Prices are competitive to other brands Products are economical It gives variety of offers and good discounts Disagree Neutral Agree Strongly Agree
? For Jumbo King (please ignore if not visited)
Strongly Disagree The food is a good value for money Prices are competitive to other brands Products are economical It gives variety of offers
Disagree
Neutral
Agree
Strongly Agree
and good discounts 10. RESTAURANT AMBIENCE
?
For your most preferred brand Strongly Disagree Disagree Neutral Agree Strongly Agree
Location is appropriate Decoration is suitable Cleanliness Lighting is appropriate Sitting arrangement is spacious and comfortable
? For Jumbo King (please ignore if not visited)
Strongly Disagree Location is appropriate Decoration is suitable Cleanliness Lighting is appropriate Sitting arrangement is spacious and comfortable Disagree Neutral Agree Strongly Agree
Pilot Testing
A survey is a set of structured questions in the form of a questionnaire which is administered to the sample under study. We made a questionnaire and at the first instance conducted a pilot study so as to find out the appropriateness of the questionnaire to a sample of 10 administered respondents who were the students of Nirma University. The purpose of the sample testing is to identify and change the confusing and awkward questions. It also saves a lot of time by giving the appropriate sample size for the research. Once we got the response for our questionnaire, which the respondents did not found any difficulty while dealing with the questionnaire then we preceded towards the actual filling up of the questionnaire. The questionnaire was filled from the sample size of 150 respondents across varied age groups to carry further the study for analysis.
Sampling
The basic idea of sampling is that by selecting some of the elements in a population, we may draw conclusion about the entire population. This is done because of 1) lower cost 2) greater accuracy of result 3) greater speed of data collection 4) availability of population element The sampling for the project is done on the basis of following points: Target Population: In this situation Jumbo King wants to open new Vada Pav outlets catering to all age groups with varied income levels. Based on this we our target population is complete Ahmedabad with people from age group of 16 to 61+ with varied income level.
Parameters of Interest: The parameters of interest have been chosen according to the common knowledge and the past experiences of the researcher in consultation with Jumbo King. The following factors that could possibly affect the kind of cuisine or restaurant choice have been considered and then checked for their affect:
1. Ambience, Services, Proximity, Price, Crowd 2. Income 3. Age 4. Theme of restaurant Sample type: We have divided the population of Ahmedabad on the basis of Stratified sampling on the basis of Age groups: 16-40, 41-60, 61 and above To get the holistic picture and to get a fair view of the food preferences of the people of Ahmedabad, STRATIFIED sampling has been employed. We surveyed the people visiting various different restaurants of the city, people in various malls. The locations chosen were located in different parts of the city. Sample Size: A sample size of 150 respondents is used to meet the research objective. Sampling Element: Individual person
Analysis Code Book
Codebook is as follows: Questi on 1 Variable Number 1 Code description 1. 2. 3. 1. 2. 16-40 41-60 61+ Male Female Variable name Age Group
2
2
Gender
3
3
1. 2. 3. 4. 5. 6. 7. 8. 1. 2. 3. 1. 2. 3. 4. 5. 6. 1. 2. 3. 4. 1. 2. 3. 4. 5. 1. 2. 3. 4. 5. 1. 2. 3. 4. 5. 1. 2. 3. 4. 5.
4
4
5
5
6
6
7
7
8
8
9
9
10
10
Daily 2-3 times a week Once a week 2-3 times a month Once a month Once every 3 months Once or twice a year Less frequently Eat In Take Away Both McDonalds Pizza Hut Dominoz Subway Jumbo King Others Quality Service Experience Price Strongly Disagree Disagree Neutral Agree Strongly Agree Strongly Disagree Disagree Neutral Agree Strongly Agree Strongly Disagree Disagree Neutral Agree Strongly Agree Strongly Disagree Disagree Neutral Agree Strongly Agree
Frequency of Eating out
Consumption Preference Most Preferred Brand
Attributes for Preferred Brand
Food quality
Restaurant Service
Product price
Restaurant Ambience
Data Preparation
The data obtained via the survey is inserted into an excel sheet so that analysis can be done effectively. Then the information was compared in groups to see the effect of one data onto the other. For example, the age group liking for various brands were evaluated, gender liking was seen. Based on the age group eating behavior was analyzed etc. The data was analyzed from various angles. The data is represented via various graphs, tables, etc.
Data Analysis
Various analyses have been done to categorize the responses in various segments keeping in mind to suggest strategies to Jumbo King for opening new outlets in city and to increase the brand awareness... These analyses have been represented in the graphical form as follow: These patterns were observed via the survey conducted on the residents of Ahmedabad city at various locations.
Brand Preference
(SPSS Output for Brand Preference based on age group and gender)
? Brand Preference based on age group
As it can been inferred from the graph above that across all the age groups McDonalds is the most preferred brand because of its price and quality product. But we can see a large variation among the age groups for the next preferred brands. In the age group of 16-40 yrs there are 27% of respondents after McDonalds who prefer Pizza Hut, while in age group of 4160 Dominoz is the 2nd choice of respondents. The most important observation which can be made is that in the 61+ age group respondents prefer Subway sandwiches than pizzas. We can also see the influence of other local outlets is also significant among the people which are a tough competition not only for Jumbo King but for all the major brands.
? Brand Preference based on Gender
From the graph below when we analyze the brand preference with regards of gender we observe that McDonalds is the favorite among both the groups. Female correspondents are more Pizza or less that equal in or percentage Hut, prefers
Dominoz
Subway. Whereas when we look into male correspondent’s data they prefer Pizza Hut followed by local outlets more as compared to Dominoz or Subway. From the graph we can see that liking for Jumbo King is not much because of its low brand awareness and less number of outlets in city.
? Consumption Preference
The consumption preference of the people of Ahmedabad can be seen from the below bar graph. Across all the age groups people prefer eating at the outlets and very few people actually like to just take away the parcel. People of age group 41-60 are open for both the options.
(SPSS output for consumption preference based on age group and gender) ? Consumption Behavior This graph gives a holistic picture of the frequency of visits across the different age groups. The survey revealed the consumption behavior of the respondents of Ahmedabad. In the age group of 16-40 we can see that max number of people visit 2-3 times in a week or atleast once a week. This shows that college going group and working professionals have more liking towards fast food and have high consumption where as even the spending is more in this group. This is the most price sensitive group who change their preferences based on the pricing of products. Similarly in the age group 41-60 they visit fast food outlets once in 3 months. This section of society is working class and look for Value for money and are more concerned for savings and less expenditure. People of age group 61+ mostly visit these outlets once or twice in a year that too majorly during family occassions. Thus in Ahmedabad city we can see that consumption of fast food is not much as we go far away on age group axis.
? Attributes
Carrying on with above discussion the following graph shows that people of all age group look for quality as the major attribute while selecting for fast food outlet. People term Value for money on the basis of quality intake and it has been observed then people do tend to change their preference if they are not satisfied with the quality of food. People in the age group of 16-40 alos look for the experince as the 2nd major factor while deciding to dine out. People rate all the major brands least on the price attribute. They are more focus on quality, service and experience rather on price and do tend to compromise on prices. From the second graph we can see that out of 156 respondents almost 90% look for quality, 50% rate service as the deciding factor followed by experience and price. These percenntage is corresponding to choose among McDonalds, Pizza Hut, Dominoz, Subway, Jumbo King and other local fast food outlets.
Recommendations
"I was inspired by McDonald's: behind the Arches, says Dheeraj Gupta, founder and managing director of Jumbo King, referring to the John F. Love book about the world's largest fast-food chain.”But my target is the suburban train traveler." With a plan to open about 500 food joints across the country by March 2010 and to increase its turnover ten-fold to the tune of Rs 200 crores Jumbo King is eyeing to extend its market out of Mumbai. In Ahmedabad and Surat, it has introduced four new products, not available even in Mumbai. Jumbo King should follow an exclusive franchisee model with networking and stringent quality control in order to break even early. The company should also go for public and private partnership such as the Indian Railway Catering and Tourism Corporation Ltd for opening outlets inside railway stations and airports, and also with Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd for kiosks at petrol pumps along the highways. They should also focus on opening company owned outlets inside the malls and retail chains so that target group can be increased and increasing the brand awareness. "Jumbo King has already attained the price-quality equation in the form of selling Vada Pav priced from Rs. 8 up to Rs. 16 a piece giving tough competition to McDonalds. Value is a key in India, where it's not unlikely to see someone driving a Mercedes stop to buy snacks from a pavement stall. So now the ultimate motive is to tap this segment of society. The best way to reach this segment is by opening kiosks at malls in Ahmedabad where people look for ambience and experience. Jumbo king has to change its selling proposition as compared to what it does in Mumbai where people in fast paced life are not looking for major change in the menu of Jumbo King. Whereas for increasing the target base and competing with other multinational brands like McDonalds, Pizza Hut, Dominoz, U.S.Pizza and Subway, Jumbo king has to go for extended version of menu list. Jumbo King is facing competition from not only high priced fast food outlets but also from local outlets like Gwaliya, Honest Pav Bhaji, Shree Krupa, Rajasthan Dhaba, Choice, Sankalp etc. Jumbo King should introduce new Vada Pavs with local touch so as to appeal the local masses. Extend the product offering with large range of pricing along with additional side orders like beverages, ice-creams. They can even go for customized Vada Pav offering choice in size and shape of buns, chutneys and
fillings besides the regular ones. The real competitor for Jumbo King is not McDonald's but the man selling vada pav on the roadside. They must turn each of them into a Jumbo King franchisee. Branding may evolve with expansion. Jumbo King's message in Maharashtra is "the hygienic vada pav." That's what differentiates it from the vada pav available at half the price from a cart perhaps just 100 meters away. In Gujarat, where vada pav is less known, it can be sold as "Mumbai's favorite fast food." They can say that this is what Mumbai eats on the go, and try a Bollywood connection. Bollywood sells all over India. "Jumbo King has a great product and a great concept". What it needs to do is to work on its distribution model. It needs to look at being present in places like cinema halls, food courts of shopping malls, railways stations and airports. They can also look at backward integration to bring about more economies of scale." They can strengthen their supply chain and other logistics such as central kitchens in major cities, the company can tie up with potato suppliers and indenting agents supplying gram flour and other ingredients as well.
Conclusion
The survey and subsequent analysis report will be highly useful to Jumbo King in designing their strategies and implementing them while opening new outlets in Ahmedabad city and the neighboring regions. The research will facilitate the value based information about prospects. Our survey shows that the Jumbo King has very low brand awareness among the residents of Ahmedabad and they have to improve its brand image by opening more outlets across the city and reaching the customer. Based on the survey it has been observed that people of age group 16-40 visit fast food outlets more frequently and this is major group who spends on fast food, so Jumbo King should target this segment that also look for experience while deciding on the brand. Price sensitive population does give weightage to ambience. Whereas people prefer ambience and service mostly while making decision of their outgoing. Ambience overcomes price and proximity factors. The survey will help Jumbo King to build friendly and effective relationship and to nourish them. It will also help them to gather information on how they can customize
their services according to customer requirements. Lastly, it will aid them in increasing their customer base and build brand image.
Limitations of Project
1) This project was actually planned to be analyzed by Multidimensional scaling and perceptual mapping technique but due to technical discrepancies at the end of data collections, the technology was not used for final analysis. 2) The credibility of the data depends on the genieunity of the responses that the respondents would provide. 3) This research analyses only four parameters for the fast food restaurants viz. ambience, price, quality and service. Other parameters if any are ignored in this study. 4) This project is mainly carried out to assess the competition of Jumbo king with the retail chain outlets in Ahmedabad. The effects of other smaller and local fast food outlets are not considered in this study. 5) Even though the responses of individuals are considered, the behavior of family outings is ambiguous from this study which may affect the individual decisions on some occasions. 6) Loyalty to any particular brand is ignored in this study considering the general behavior of the people.
Bibliography
Websites 1. Wikipedia.com( about Business Research) 2. Quirk.com 3. http://www.managementhelp.org/research/research.htm 4. http://www.google.co.in Books 1. Business Research Method, Donald R cooper & Pamela S Schindler. 9th Edition.
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