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Introduction
Fast food is the term given to food that can be prepared and served very q ic!"y# $hi"e any mea" %ith "o% preparation time can be considered to be fast food& typica""y the term refers to food so"d in a resta rant or store %ith "o% q a"ity preparation and served to the c stomer in a pac!aged form for ta!e'o t(ta!e'a%ay# O t"ets may be stands or !ios!s& %hich may provide no she"ter or seating& or fast food resta rants )a"so !no%n as quick service restaurants*# Franchise operations %hich are part of resta rant chains have standardi+ed foodst ffs shipped to each resta rant from centra" "ocations# The capita" req irements invo"ved in opening p a fast food resta rant are re"ative"y "o%# Resta rants %ith m ch higher sit'in ratios& %here c stomers tend to sit and have their orders bro ght to them in a seeming"y more psca"e atmosphere may be !no%n in some areas as fast cas a" resta rants#
History
The concept of ready'coo!ed food for sa"e is c"ose"y connected %ith rban deve"opment# In Ancient Rome cities had street stands that so"d bread and %ine# A fi,t re of -ast Asian cities is the nood"e shop# F"atbread and fa"afe" are today biq ito s in the .idd"e -ast# /op "ar Indian fast food dishes inc" de vada pav& panip ri and dahi vada# In the French'spea!ing nations of $est Africa& roadside stands in and aro nd the "arger cities contin e to se""0as they have done for generations0a range of ready'to'eat& char'gri""ed meat stic!s !no%n "oca""y as brochettes#
)9* The deve"opment of s b' rban comm nities# ):* The baby boom s bseq ent to %or"d %ar second# ;Fast'food chains initia""y catered to a tomobi"e o%ners in s b rbia#
On the go
Fast food o t"ets are take-away or take-out providers& often %ith a <drive'thro gh< service %hich a""o%s c stomers to order and pic! p food from their cars= b t most a"so have a seating area in %hich c stomers can eat the food on the premises# /eop"e eat there more than five times a %ee! and often& one or more of those five times is at a fast food resta rant# Near"y from its inception& fast food has been designed to be eaten <on the go<& often does not req ire traditiona" c t"ery& and is eaten as a finger food# >ommon men items at fast food o t"ets inc" de fish and chips& sand%iches& pitas& hamb rgers& fried chic!en& French fries& chic!en n ggets& tacos& pi++a& hot dogs& and ice cream& a"tho gh many fast food resta rants offer <s"o%er< foods "i!e chi"i& mashed potatoes& and sa"ads#
Variants
A"tho gh fast food often brings to mind traditiona" American fast food s ch as hamb rgers and fries& there are many other forms of fast food that en8oy %idespread pop "arity in the $est# >hinese ta!ea%ays(ta!eo t resta rants are partic "ar"y pop "ar# They norma""y offer a %ide variety of Asian food %hich has norma""y been fried# .ost options are some form of nood"es& rice& or meat# S shi has seen rapid"y rising pop "arity in recent times# A form of fast food created in ?apan# s shi is norma""y co"d stic!y rice served %ith ra% fish#/i++a is a common fast food category in the United States& %ith chains s ch as Domino@s /i++a& Sbarro and /i++a A t# .en s are more "imited and standardi+ed than in traditiona" pi++erias& and pi++a de"ivery& often %ith a time commitment& is offered# Fish and chip shops are a form of fast food pop "ar in the United Bingdom& A stra"ia and Ne% Cea"and# Fish is battered and then deep fried#The D tch have their o%n types of fast food# A D tch fast food mea" often consists of a portion of French fries #
Business
In the United States a"one& cons mers spent abo t USD114 bi""ion on fast food in 3444 )%hich increased from USDE bi""ion in 12F4*# The Nationa" Resta rant Association forecasted that fast food resta rants in the U#S# %o "d reach USD1:3 bi""ion in sa"es in 344E& a 5G increase over 3445# In comparison& the f ""'service resta rant segment of the food ind stry is e,pected to generate D1F9 bi""ion in sa"es#
Globalization
In 344E& the g"oba" fast food mar!et gre% by :#HG and reached a va" e of 143#: bi""ion and a vo" me of H4#9 bi""ion transactions# In India a"one the fast food ind stry is gro%ing by :4G a year# .cDona"d@s is "ocated in 134 co ntries and on E continents and operates over 91&444 resta rants %or"d%ide# BF> is "ocated in 35 co ntries# S b%ay has 32&1HE resta rants "ocated in HE co ntries& /i++a A t is "ocated in 3E co ntries& Taco Ie"" has 3FH resta rants "ocated in 13 co ntries besides the United States#
Health issue
Tran6s fats %hich are common"y fo nd in fast food have been sho%n in many tests to have a negative hea"th effect on the body#
The fast food cons mption has been sho%n to increase ca"orie inta!e& promote %eight gain& and e"evate ris! for diabetes# The >enters for Disease >ontro" and /revention ran!ed obesity as the n mber one hea"th threat for Americans in 344:# It is the second "eading ca se of preventab"e death in the United States and res "ts in :44&444 deaths each year# FAST FOOD INDUSTRY IN INDIA
IN I! " #$#%GING $!%&#T FO% G'OB!' ('!)#%S The percentage share he"d by foodservice of tota" cons mer e,pendit re on food has increased from a very "o% base to stand at 3#EG in 3441# -ating at home remains very m ch ingrained in Indian c "t re and changes in eating habits are very s"o% moving %ith barriers to eating o t entrenched in certain sectors of Indian society## The gro%th in n c"ear fami"ies& partic "ar"y in rban India& e,pos re to g"oba" media and $estern c isine and an increasing n mber of %omen 8oining the %or!force have had an impact on eating o t trends# F!CTS !N FIG*%#S Fast food is one of the %or"d6s "argest gro%ing food type# India6s fast food ind stry is gro%ing by :4G a year and is e,pected to generate a bi""ion do""ars in sa"es by 3445#The m "tinationa" segment of Indian fast food ind stry is p to Rs# E bi""ion& a fig re e,pected to +oom to Rs#F4 bi""ion by 3445# Iy 3445& the va" e of Indian dairy prod cts is e,pected to be Rs#1& 44&444 mi""ion# In "ast E years& foreign investment in this sector stood at Rs# 9E44 mi""ion %hich is abo t one'fo rth of tota" investment made in this sector# Ieca se of the avai"abi"ity of ra% materia" for fast food& J"oba" chains are f"ooding into the co ntry# $!%&#T SI+# , $!JO% ('!)#%S a* Dominated by .cDona"ds having as many as F5 o t"ets# b* Domino6s pi++a is present in aro nd 144 "ocations# c* /i++a h t is a"so catching p and it has p"anned to estab"ish 135 o t"ets at the end of 3445# d* S b%ays have estab"ished aro nd :4 o t"ets# e* Nir "as is estab"ished at De"hi and Noida on"y# Ao%ever& it c"aims to cater 54&444 g ests every day# .a8or p"ayers in fast food are7 .>DONAKDS BF>
The main reason behind the s ccess of the m "tinationa" chains is their e,pertise in prod ct deve"opment& so rcing practices& q a"ity standards& service "eve"s and standardi+ed operating proced res in their resta rants& a strength that they have deve"oped over years of e,perience aro nd the %or"d# The home gro%n chains have in the past fe% years of competition %ith the .N>s& "earnt a fe% things b t there is sti"" a "ot of scope for improvement#
(%OB'#$S OF IN *ST%)
#n3iron-ental friendly .roducts cost high/ government is "egis"ating "a%s in order to !eep chec! on the fast food ind stry and it is emphasi+ing more on the sage of bio'degradab"e and environment friend"y prod cts# I t associated %ith this iss e is the prob"em that fast food p"ayer
faces ' the cost associated %ith the environment friend"y prod ct# They cost m ch higher than the norma" prod cts that companies ses for pac!aging or %rapping their prod cts# Balance bet4een societal e2.ectation and co-.anies econo-ic ob6ecti3es/ To ba"ance a society6s e,pectation regarding environment %ith the economic b rden of protecting the environment# Th s& one can see that one side p shes for higher standards and other side tries to beat the standard bac!& thereby ma!ing it a arm %rest"ing and mind bogg"ing e,ercise# Health related issues/ obesity/ I# II# St dies have sho%n that a typica" fast food has very high density and food %ith high density ca ses peop"e to eat more then they s a""y need# M Ko% ca"ories food7 -mphasis is no% more on "o% ca"orie food# In this "ine .cDona"d has a p"an to introd ce a"" %hite meat chic!en .cn gget %ith "ess fat and fe%er ca"ories#
T%#N S IN IN I!N $!%&#T $ar1eting to children7s/ fast food o t"ets in India target chi"dren6s as their ma8or c stomers# They introd ce varieties of things that %i"" attract the chi"dren6s attention and by targeting chi"dren6s they a tomatica""y target their parents beca se >hi"dren6s are a"%ays accompanied by their parents# 'o4 le3el custo-er co--it-ent/ Ieca se of the "arge n mber of food retai" o t"ets and a"so beca se of the tendency of c stomer to s%itch from one prod ct to other& this ind stry faces "o% "eve" c stomer commitment# Value added technology ser3ices/ There is contin o s improvement in the techno"ogy as far as fast food mar!et in India is considered# The reason behind that is food is a perishab"e item and in order to ens re that it remain fresh for a "onger period of time# -ar"ier& Indian peop"e prefer eating at home b t no% %ith the change in trend there is a"so need for improvement and p gradation of techno"ogy in food sector# !ttracting different seg-ents of the -ar1et/ Fast food o t"ets are introd cing varieties of prod cts in order to cater the demands of each and every segment of the mar!et# They are introd cing a"" categories of prod ct so that peop"e of a"" age& se,& c"ass& income gro p etc can come and become a c stomer of their food "ine#
The s ccess of fast foods arose from the changes in o r "iving conditions7 1# .any %omen or both parents no% %or! 3# There are increased n mbers of sing"e'parent ho seho"ds 9# Kong distances to schoo" and %or! are common :# Us a""y& " nch times are short 5# There@s often not eno gh time or opport nity to shop caref ""y for groceries& or to coo! and eat %ith one@s fami"y# -specia""y on %ee!days& fast food o tside the home is the on"y so" tion#
and remode"ed resta rants %i"" have the ne% "ogo and name %hi"e o"der stores %i"" contin e to se the 12H4s signage# Additiona""y& Y mN >ontin es to se the abbreviated name free"y in its advertising#
/rod cts
The famo s paper b c!et that BF> ses for its "arger si+ed orders of chic!en and has come to signify the company %as origina""y created by $endy@s resta rants fo nder Dave Thomas# Thomas %as origina""y a franchisee of the origina" Bent c!y Fried >hic!en and operated severa" o t"ets in the >o" mb s& Ohio area# Ais reasoning behind sing the paper pac!aging %as that it he"ped !eep the chic!en crispy by %ic!ing a%ay e,cess moist re# Thomas %as a"so responsib"e for the creation of the famo s rotating b c!et sign that came to be sed at most BF> "ocations in the US# $enu ite-s BF>@s specia"ty is fried chic!en served in vario s forms# BF>@s primary prod ct is press re'fried pieces of chic!en made %ith original recipe# The other chic!en offering& extra crispy& is made sing a gar"ic marinade and do b"e dipping the chic!en in f"o r before deep frying in a standard ind stria" !itchen type machine# Bent c!y Jri""ed >hic!en ' This marinated gri""ed chic!en is targeted to%ards hea"th'conscio s c stomers# It feat res marinated breasts& thighs& dr mstic!s& and %ings that are coated %ith the Origina" Recipe seasonings before being gri""ed# It has "ess fat& ca"ories& and sodi m than the Origina" Recipe fried chic!en# Introd ced in Apri" 3442# Discontinued products The >o"one"@s Rotisserie Jo"d P This prod ct %as introd ced in the 1224s as a response to the Ioston .ar!et chain@s roasted chic!en prod cts& and a hea"thier mindset of the genera" p b"ic avoiding fried food# / rported"y made from a <"ost< >o"# Sanders recipe& it %as so"d as a %ho"e roaster or a ha"f bird#
Q3HR
Tender Roast >hic!en P This prod ct %as an off'shoot of @The >o"one"@s Rotisserie Jo"d@# Instead of %ho"e and ha"f birds& c stomers %ere given q arter roasted chic!en pieces# For a time& c stomers co "d req est chic!en <origina"<& <-,tra Tasty >rispy<& or <Tender Roast<# Smo!ey >hipot"e P Introd ced in Apri" 344H# The chic!en %as dipped in chipot"e sa ce then do b"ed breaded and fried# It has been discontin ed since A g st 344H#
Nutritional value
BF> former"y sed partia""y hydrogenated oi" in its fried foods# This oi" contains re"ative"y high "eve"s of trans fat& %hich increases the ris! of heart disease# The >enter for Science in the / b"ic Interest )>S/I* fi"ed a co rt case against BF>& %ith the aim of ma!ing it se other types of oi"s or ma!e s re c stomers !no% abo t Trans fat content immediate"y before they b y food#
In October 344E& BF> anno nced that it %o "d begin frying its chic!en in trans fat'free oi"# This %o "d a"so app"y to their potato %edges and other fried foods& ho%ever& the bisc its#
Advertising
One of BF>@s "atest advertisements is a commercia" advertising its <%ic!ed cr nch bo, mea"<# The commercia" feat res a fictiona" b"ac! meta" band ca""ed <Ae""vetica< performing "ive& the "ead singer then s%a""o%s fire# The commercia" then sho%s the "ead singer at a BF> eating the <%ic!ed cr nch bo, mea"< and saying <Oh man that is hot<# In 344F& the origina"& non'acronymic Kentucky Fried resta rant signage# hicken name %as res rrected and
began to reappear on company mar!eting "iterat re and food pac!aging& as %e"" as some
(resent Situation The organi+ation is c rrent"y str ct red %ith t%o divisions nder /epsi>o# David Nova! is president of BF># ?ohn Ai"" is >hief Financia" Officer and >o"in .oore is the head of .ar!eting# /eter $a""er is head of franchising %hi"e O"den Kee is head of A man Reso rces# BF> is part of the t%o /epsi>o divisions& %hich are /epsi>o $or"d%ide Resta rants and /epsi>o Resta rants Internationa"# Ioth of these divisions of /epsi>o are based in Da""as#
Strengths
Strengths can be fo nd interna""y in a company and can be sed to the company6s advantage# The strengths identified are as fo""o%s7 89 &FC7s secret reci.e9 The secret recipe has "ong been a so rce of advertising& and a""o%ed BF> to set itse"f apart# A"so& BF> %as the first chain to enter the fast'food ind stry& 8 st before .cDona"d@s& %hich opened its first store a year "ater& and the <secret recipe< %as the initia" home rep"acement strategy#
:9 Na-e recognition and re.utation9 BF>@s ear"y entrance into the fast'food ind stry in 125: a""o%ed BF> to deve"op strong brand name recognition and a strong footho"d in the ind stry# The >o"one" is BF>@s origina" o%ner and a very recogni+ab"e fig re& both in the U#S# and internationa""y& in their ne% "ogo# In fact& in the fo rth ann a" KogoSa" e S rvey& done by The Schecter Jro p& the BF> "ogo %as the on"y one %hich significant"y enhance the brand@s image # ;9 (e.siCo7s success 4ith the -anage-ent of fast food chains9 /epsi>o acq ired /i++a A t in 12FF& and Taco Ie"" in 12FH# /epsi>o sed many of the same promotiona" strategies that it has sed to mar!et soft drin!s and snac! food# Iy the time /epsi>o bo ght BF> in 12HE& the company a"ready dominated t%o of the fo r "argest and fastest'gro%ing segments of the fast food ind stry# <9 Traditional e-.loyee loyalty9
<BF>@s c "t re %as b i"t "arge"y on >o"one" Sanders@ "aid bac! approach to management< )$right& p#:99*# Iefore the acq isition of BF> by /epsi>o& emp"oyees at BF> en8oyed good benefits& a pension& and co "d receive he"p %ith other non'income needs# This !ind of <persona"< h man reso rces management ma!es for a "oya" %or!force# =9 I-.ro3ing o.erating efficiencies by reducing o3erhead and other o.erating costs can directly affect o.erating .rofit9 D e to the strong competition in the US& the fast'food chains are re" ctant to raise prices to increase profit# .any of the chains are t rning to operating efficiencies to increase profit# For many companies& operating efficiencies are achieved thro gh improvements in c stomer service& c"eaner resta rants& faster and friend"ier service& and contin ed high'q a"ity prod cts#
0ea1nesses
$ea!nesses are a"so fo nd interna""y "i!e strengths# $ea!nesses& ho%ever& can "imit a company6s potentia"# The %ea!nesses for BF> are identified as fo""o%s7 89 The -any sales of &FC lead to a confusing cor.orate direction9 Iet%een 12F1 and 12HE& BF> %as so"d three times# The first t%o sa"es& to Ae b"ein& Inc and to R#?# Reyno"ds& "eft the company "arge"y a tonomo s# It %asn@t nti" the sa"e to /epsi>o in 12HE that changes in top management started to ta!e p"ace# These changes happened a"most immediate"y after the sa"e# :9 &FC has a long ti-e to -ar1et 4ith ne4 .roducts9 Ieca se of the nat re of the chic!en segment of the fast food ind stry& innovation %as never a primary strategy for BF># Ao%ever& d ring the "ate 12H4@s& other fast food chains& s ch as .cDona"d@s& began to offer chic!en as a .en option# D ring this time& .cDona"d@s had a"ready introd ced the .c>hic!en %hi"e BF> %as sti"" testing its o%n chic!en sand%ich# This de"ay significant"y increased the cost of deve"oping cons mer a%areness for the BF> sand%ich# ;9 Conflicting cultures of &FC and (e.si Co9
$hi"e BF>@s c "t re %as "arge"y based on the >o"one"@s "aid bac! approach to management& %hi"e /epsi>o@s c "t re is more of a <fast trac!< attit de# -mp"oyees do not have the same "eve" of 8ob sec rity that they en8oyed before the /epsi>o acq isition Problems Thro gh an ana"ysis of the strengths& %ea!nesses& opport nities& and threats of BF>& the fo""o%ing potentia" prob"em areas %ere identified7
89 No defined target -ar1et9 The advertising campaign of BF> does not specifica""y appea" to any segment# It does not appear to have a consistent "ong'term approach# The U#S# has enormo s changes in its demographics# Sing"e'person ho seho"ds have increased from 13G in 12F4 to 35G in 1225# $ith this !ind of dramatic change& BF> does not have a proper approach to its target mar!et# :9 Health Conscious Consu-ers9 There has been a trend to%ard an increasing"y hea"thy diet in America# This p t BF> at an e,treme disadvantage d e to its fried prod ct offering# ;9 Increased Start *. Costs9 /rime "ocations have increased in cost d e to "imited room for e,pansion# Ne% techno"ogy has increased efficiencies& b t res "ted in greater increased start p costs# Resta rant and eq ipment pac!ages range from D544&444 to D1&444&444# !chie3e-ents/ BF> is one of the most reno%ned %or"d gastronomic brand names# Bent c!y Fried >hic!en prod cts are c rrent"y offered in H4 co ntries %or"d%ide and in more than 11&444 resta rants %hich are visited on a dai"y basis by a"most H mi""ion c stomers# J"oba""y& BF> emp"oys appro,imate"y 324&444 peop"e& $or"d%ide& a ne% BF> resta rant is opened a"most every day# In 344: the ;BF> -,ce""entT range ' three types of sa"ad )>aesar& Jarden and .andarin* obtained the pri+e for ;$or"d%ide Iest /ractice A%ard 344:T in the category of best prod ct
and best mar!eting campaign and its imp"ementation in the resta rants# This pri+e is distrib ted each year by YU. Resta rants Internationa"#According to the ratings for ;.ost e,pensive %or"d brands 344:T cond cted by the American %ee!"y LI siness $ee!6& BF> %as positioned 5:th p"ace= c rrent"y va" ed at 5#1 bi""ion USD#
O$INO>S
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 an! "##$ at %ew Delhi. Today! Domino's Pizza India has be&ome a wide networ' of Pizza delivery and food &hain. There are &lose to (() outlets in *( &ities of India and the brand is the top most among the food delivery business. Domino+s Pizza outlets &an be seen at major lo&ations of Delhi and %,-. Their home delivery is free with a guarantee of .Thirty /inutes %ahi to 0ree1. Although they are e2pert in delivering Pizzas on time! their eating joints and outlets are also good. 3e plan to have a total of 4)) stores in 5467) &ities by ()") to ()"". It would entail an investment of -s ()) million during the period MARKET GROWTH During last four months! dominoes have opened outlets in ammu! Panipat! Surat! 8aroda! %ashi'! Trivandum! /eerut and Patiala. 3hile earlier! 5) per&ent of our business used to be in metros and mini6metros! now the ratio is 4)94) between big &ities and smaller Tier II and III &ities. Domino+s Pizza is e2panding its base in India by opening 4)) outlets to add to its &urrent tally of "4$ outlets! a&ross 4) &ities in India by ()"" with an investment of -s."! ))) &rore. MARKET STRATEGIES
Promotional and Advertisement ,ampaigns:,oupons and dis&ounts; The '<) /inutes' Promise =se of Te&hnology: Digital interactive Television, Internet on the PC, Mobile telephony; Premium Pri&ing Strategy Indian fast food industry and entry of multinational players Distribution strategies of fast food &hains in India MARKET SHARE The organized pizza mar'et in India is worth -s.4)) &rore and Domino+s has a substantial *4> mar'et share! and registered a healthy growth of $)> over last year. The main target for new outlets shall be metro &ities though Tier II &ities would also re&eive a fair amount of attention. ,urrently Domino+s sells around <4!))) pizza every day! of whi&h around "> are given free on a&&ount of its .<) minutes or free1 model. $4 per&ent of its revenue &omes from home delivery servi&e? around <4 per&ent is from sales in premise. COMPETITORS 0ast food is one of the world's fastest growing food types. It now a&&ounts for roughly half of all restaurant revenues in the developed &ountries and &ontinues to e2pand there and in many other industrial &ountries in the &oming years. 8ut some of the most rapid growth is o&&urring in the developing world? where it's radi&ally &hanging the way people eat. People buy fast food be&ause it's &heap! easy to prepare! and heavily promoted. This paper aims at providing information about fast food industry! its trend! reason for its emergen&e and several other fa&tors that are responsible for its growth . India is a developing &ountry with ( per&ent of organized and #7 per&ent of unorganized se&tor. So most of the fast foods &ame into Indian mar'et as India has a high growth in every se&tor. Some of the &ompetitors of domino+s are /&Donald's Pizza @ut
MC Donalds
/&Donald's is the leading global foodservi&e retailer with more than <"!))) lo&al restaurants serving more than 47 million people in ""7 &ountries ea&h day. /ore than 54> of /&Donald's restaurants worldwide are owned and operated by independent lo&al men and women. The strong foundation that he built &ontinues today with /&Donald's vision and the &ommitment of our talented e2e&utives to 'eep the shine on /&Donald's Ar&hes for years to &ome. To read more about /&Donald's history! vision and e2e&utives! &li&' on their lin's in the left menu. 3e drive our business momentum by fo&using on what matters most to &ustomers. Aur ownerBoperators! suppliers and employees wor' together to meet &ustomer needs in uniCuely /&Donald's ways. The powerful &ombination of entrepreneurial spirit and System wide alignment around our Plan to Win enables us to e2e&ute the best ideas with both large6s&ale effi&ien&y and lo&al flair.
Products
/&Donald's predominantly sells hambu !" s! various types of #hi#$"n san%&i#h"s and produ&ts! F "n#h ' i"s! so't % in$s! b "a$'ast items! and %"ss" ts. In most mar'ets! /&Donald's offers sala%s and ("!"ta ian items! & a)s and
other lo&alized fare. Portugal is the only &ountry with /&Donald's restaurants serving soup. This lo&al deviation from the standard menu is a &hara&teristi& for whi&h the &hain is parti&ularly 'nown! and one whi&h is employed either to abide by regional food taboos :su&h as the religious prohibition of beef &onsumption in In%ia; or to ma'e available foods with whi&h the regional mar'et is more familiar :su&h as the sale of /&-i&e in In%on"sia;.
Advertising
/&Donald's has for de&ades maintained an e2tensive advertising &aign. In addition to the usual media :television! radio! and newspaper;! the &ompany ma'es signifi&ant use of billboards and signage! sponsors sporting events ranging from Dittle Deague to the Alympi& Eames! and ma'es &oolers of orange drin' with their logo available for lo&al events of all 'inds. %onetheless! television has always played a &entral role in the &ompany's advertising strategy. To date! /&Donald's has used (< different slogans in =nited States advertising! as well as a few other slogans for sele&t &ountries and regions. At times! it has run into trouble with its &aigns.
*ARISTA
8arista &offee was establishes in "### with the aim of identifying growth opportunities in the &offee business. In&reasing disposable in&omes and global trends in &offee indi&ate immense growth potential in one parti&ular segment. *a ista Co''"" is a &hain of espresso bars in India. @eadCuartered in Delhi! 8arista &urrently has espresso bars a&ross India! Sri Dan'a and the /iddle Fast. It was founded in "##5 by Amit udge and was part of his group of &ompanies. @e sold part of the eCuity to first Tata ,offee. Then after he and Tata ,offee fell apart! Sterling then bought over the firm. In ())5! Sterling divested all their sta'e to Davazza. 8arista ,offee ,ompany is &urrently owned by Davazza! Italy+s largest &offee &ompany At 8arista Davazza! we do all we &an to ma'e every guest feel &omfortable and wel&ome. 3e serve nothing but the finest Arabi&a &offees and &uisine at great value pri&es. 3e have friendly and effi&ient brew masters who believe in servi&e with a smile. And provide a &heerful! intera&tive ambien&e that ma'es guests wish their &offee brea's lasted just a little bit longer. To share our &up of joy! we have always stu&' to our Italian roots! guarding them zealously to ensure that our espresso bars refle&t the warmth and &hara&ter of traditional Italian &offee houses. And in the pro&ess! ma'e 8arista Davazza the pla&e Gwhere the world meets+.
Aur aim is to passionately deliver the highest levels of e2periential servi&es. /aintain &onsisten&y in serving the highest Cuality produ&ts and be&ome a globally &ompetitive organization H one that is driven by an insatiable thirst for e2&ellen&e.
success riding" and to so e e3tent creating" the cafe cu!ture *ave that s*ept across etropo!itan India fo!!o*ing strong econo ic gro*th resu!ting in an increase in &outh spending po*er$ It has even tied up *ith 4or!d Space and 5icro sense to ena2!e its cafes *ith sate!!ite radio and 4i6Fi" respective!&$ Its first 4i6Fi cafe *as opened on 'ave!!e Road" %anga!ore$ Caf7 Coffee Da& sources coffee fro 8000 acres of coffee estates" the second !argest in Asia" ++"000 s a!! gro*ers$ It is one of India9s !eading
coffee e3porters" *ith c!ients across the USA" 5idd!e :ast" :urope and ;apan$ 4ith its roots in Chik aga!ur" the ho e to so e of the 2est Indian coffees" Coffee Da& has its 2usiness spanning the entire va!ue chain of coffee consu ption in India$ Its different divisions inc!ude< Coffee Da& Fresh =n= >round (*hich o*ns ?80 coffee 2ean and po*der retai! out!ets)" Coffee Da& @press (*hich o*ns AB0 Coffee Da& kiosks)" Coffee Da& Takea*a& (*hich o*ns ,000 vending t*o Caf7s in Austria as *e!!" achines)" Coffee Da& :3ports and Coffee Da& arket 2& opening Cerfect (F5C> Cackaged Coffee) division$ It is entering the :uropean
a2road$ The strateg& CCD has adapted is to p!ace a cafe in ever& possi2!e !ocation *here so e 2usiness can 2e generated$ So in %anga!ore" in the out!ets in a 1 k Another e3press$ These innovative strategies have ensured that the co petition is at 2a& and ensured CCD=s do inance in the Indian arket though an& of its out!ets are incurring !osses$ ain shopping district" there are si3 radius and overa!! +10 cafes in %anga!ore a!one$
ode! *hich CCD has adapted is to 2e present in educationa! institutions and of detai!ed cafes or its econo ica! ode! of CCD
%arista Cafe 5ocha Costa Coffee The Coffee %ean D Tea 'eaf
'IT#%!T*%# %#VI#0
Z"n$+ S, "t al, -."i!hbo hoo% Ra#ial Com)osition+ ."i!hbo hoo% Po(" t/ an% th" S)atial A##"ssibilit/ o' Fast Foo% Sto "s in M"t o)olitan D"t oit0, Am" i#an 1ou nal o' Publi# 2344567 85296, Abst a#t9 -esidential environment is &learly related to health! spe&ifi&ally dietary health. In fa&t! many of the most serious &hroni& illnesses in the =nited States are asso&iated with dietary defi&ien&ies. Proper a&&ess to nutritious foods is essential to de&reasing dietary related &hroni& illness. Supermar'ets provide dietary health resour&es through higher Cuality and lower &osts of nutritious foods. This study e2amines the spatial a&&essibility of supermar'ets for 7$# neighborhoods within /etropolitan Detroit with relation to &ommunity's poverty and ra&ial &omposition. The per&entage of residents below the poverty line serves as the measure of neighborhood poverty for the study. Supermar'ets are defined as either a Super&enter su&h as Super Imart or a full6line gro&ery store asso&iated with a national or regional gro&ery &hain su&h as Iroger. Spatial a&&essibility is eCuivalent to a /anhattan blo&'. The study found that the distan&e to the nearest Supermar'et in&reased with in&reasing levels of neighborhood poverty. 3hile the distan&e to the nearest Supermar'et was similar among the most impoverished neighborhoods! Afri&an Ameri&an &ommunities averaged "." mile greater distan&e to the nearest supermar'et than predominantly white neighborhoods. R"l"(ant Data: Diterature now asso&iates residen&e in e&onomi&ally disadvantaged neighborhoods! after &ontrolling for so&ioe&onomi& status! with a variety of adverse diet6related health out&omes.
Disparities in Supermar'et a&&essibility on the basis of ra&e were evident among the most impoverished neighborhoods9 the most impoverished neighborhoods! in whi&h Afri&an6Ameri&ans resided! were on average were "." miles farther from the nearest supermar'et than the most impoverished white neighborhoods. /ean distan&e to the nearest supermar'et in&reased with ea&h su&&essive tertile of per&entage poor for neighborhoods with a high proportion of Afri&an Ameri&ans but remained appro2imately the same a&ross all tertiles of per&entage poor for neighborhoods with a low proportion of Afri&an Ameri&ans :predominantly white; . InadeCuate a&&essibility to supermar'ets may &ontribute to less nutritious diets and hen&e to greater ris' for &hroni& diet related disease. Affordable publi& transportation needs to be improved integrating transportation routes with supermar'et lo&ations . Po&"ll+ ;isa M, "t al, -Foo% sto " a(ailabilit/ an% n"i!hbo hoo% #ha a#t" isti#s in th" <nit"% Stat"s0, Am" i#an li'"st/l"2344= Ma 67 992>6:?@8A?85, Abst a#t: A ())$ study of the =nited States lin'ed zip &odes to &ensus data! finding various statisti&s about the availability of gro&ery stores in a&&ordan&e to neighborhood des&riptions and demographi&s. There are distin&t disparities between the a&&ess of bla&'s! whites and @ispani&s to supermar'ets! with a definite &orrelation in lo&ation! so&ioe&onomi& status! and ra&e. R"l"(ant Data9 Dow6in&ome neighborhoods have fewer &hain supermar'ets with only 54> :p J ).)"; of that available in middle6in&ome neighborhoods . Fven after &ontrolling for in&ome and other &ovariates! the availability of &hain supermar'ets in Afri&an Ameri&an neighborhoods is only 4(> :p J ).)"; of that in 3hite neighborhoods with even less relative availability in urban areas . @ispani& neighborhoods have only <(> :p J ).)"; as many &hain supermar'ets &ompared to non6@ispani& neighborhoods. Darger sized food stores su&h as supermar'ets versus smaller stores and &hain versus non6&hain supermar'ets have been shown to be more li'ely to sto&' healthful foods and to offer foods at a lower &ost. 0urthermore! given that low6in&ome populations are less li'ely to have private means of transportation and given that the nature of food shopping involves either
transporting multiple shopping bags or ma'ing more freCuent shopping trips! the mobility strategies for food shopping among low6in&ome families will e2a&erbate the barriers to a limited number of available lo&al area supermar'ets! in parti&ular &hain supermar'ets. Indeed! several studies have highlighted the mobility &onstraints fa&ed by low6in&ome households in their daily a&tivities in&luding food shopping . A re&ent report finds that Afri&an Ameri&ans prefer to shop in &hain supermar'ets and that one of the 'ey fa&tors that influen&e these shoppers is transportation and lo&ation. Pro2imity is importantK<5> of Afri&an Ameri&an shoppers travel one mile or less to their primary gro&ery store . G "n!s+ 1o", -Do"s Publi# T ansit Count" a#t th" S"! "!ation o' Ca l"ss Hous"hol%sB M"asu in! S)atial Patt" ns o' A##"ssibilit/0, T ans)o tation R"s"a #h *oa % o' th" .ational A#a%"mi"s 2344=67 Abst a#t: This study resear&hed Eeographi& Information Systems! te&hnology that measures transit use on smaller s&ales! to address the problem of urban populations that depend on publi& transportation but have a la&' of a&&ess to their everyday needs! in&luding food. R"l"(ant DataCDuotations: The analysis finds that over 5!4)) households! representing "( per&ent of %ew Lor' ,ity's households! do not have reasonable a&&ess to supermar'ets. The study provides statisti&ally signifi&ant eviden&e that poor a&&essibility is asso&iated both with low6in&ome neighborhoods and with neighborhoods with disproportionately high populations of Afri&an Ameri&ans.
Service Quality An investigation into Malaysian Fast food consu!ers using D"#ESE$% &eang Meng 'ang( )niversity of #e*castle )rsula +ougoure( Queensland )niversity of 'ec,nology
As noted by Doran :())(;! it is imperative that we see' to e2amine &ommonly a&&epted! western6based mar'eting theory in the &onte2t of different &ountries to see whether su&h &on&epts e2plain the same phenomena in &onsumers from different &ountries. 3hilst e2tensive resear&h has been &ondu&ted on servi&e Cuality over the past two de&ades :e.g. 8itner! "##)? ,ronin and Taylor! "##(! Parasuraman! Meithaml and 8erry! "#77;! relatively little attention has been paid to issues
surrounding servi&e Cuality in non6western &ountries! li'e the Asian region and in parti&ular! /alaysia. Af the 'nowledge gained in the servi&e Cuality literature! the wor' of Parasuraman! Meithaml and 8erry :"#77; provides an approa&h to defining and measuring servi&e Cuality! 'nown as SF-NO=AD. In&orporating five servi&e Cuality dimensions of tangibles! reliability! responsiveness! assuran&e and empathy! SF-NO=AD has been well utilised within the literature. This being said however! it is important to note that SF-NO=AD has been found to possess &ertain limitations! parti&ularly when applied a&ross different servi&e industries :eg9 8aba'us and 8oller! "##(? S&hneider and 3hite! ())*;. 0or e2ample! DI%FSF-N for restaurants was developed by Stevens! Inutson and Patton :"##4;! in response to findings that SF-NO=AD was inadeCuate for the GuniCue+ restaurant environment :Dube! -enaghan and /iller! "##*;. Prior resear&h suggests that not all servi&e Cuality elements :within tools su&h as SF-NO=AD! DI%FSF-N; are able to predi&t a &onsumer+s overall servi&e Cuality per&eptions or :ASO; :Aliva! Aliver and /a&/illan! "##(;. Therefore! it is important to identify the importan&e of servi&e Cuality and its dimensions in determining overall servi&e Cuality :ASO;! as per&eived by &ustomers. 8y addressing this issue! firms &an gain an understanding of the areas they should &on&entrate on when see'ing to improve their overall servi&e Cuality provisions :Aliva! Aliver and /a&/illan! "##(;. In the &onte2t of the fast food industry! it appears li'ely that servi&e Cuality dimensions from DI%FSF-N will positively effe&t overall servi&e Cuality :ASO; per&eptions by /alaysian &onsumers. Thus! @"9 Servi&e Cuality :DI%FSF-N; will positively effe&t Averall Servi&e Ouality per&eptions :ASO; for /alaysian fast food &onsumers. ,ustomer satisfa&tion has long been re&ognised as a pro&ess :Aliver! "#7"; and is the differen&e between &onsumers+ per&eived and e2pe&ted performan&e of a produ&t or servi&e. In other words! &ustomer satisfa&tion o&&urs when performan&e is higher than e2pe&ted! while dissatisfa&tion o&&urs when performan&e is lower than e2pe&ted. Averall! to gain &ustomer satisfa&tion! some argue that organisations need to e2&eed predi&tive e2pe&tations of &ustomers! rather than just satisfy e2pe&tations :Spreng and /a&'oy! "##$;. Servi&e Cuality and &ustomer satisfa&tion are inarguably fundamental &on&epts within servi&es mar'eting theory :Spreng and /a&'oy! "##$; and their relationship
has seen in&reasing resear&h interest over the years :8itner! "##)? Dabhol'ar! "##4? Spreng and Taylor! "##5? /ohsin! ())<;. 3hile it is generally a&&epted that a positive relationship e2ists between servi&e Cuality and &ustomer satisfa&tion! there is debate :Shemwell! Lavas and 8ilgin! "##7; with proposals of a &ausal lin' from &ustomer satisfa&tion to servi&e Cuality :8itner! "##);! servi&e Cuality to &ustomer satisfa&tion :8olton and Drew! "##"? Spreng and /a&'oy! "##$? Parasuraman! Meithaml and 8erry! "##*;? suggestions that dire&tionality varies a&&ording to the servi&e situation :Dabhol'ar "##4; and even that there is no relationship under parti&ular &ir&umstan&es :Parasuraman! Meithaml and 8erry! "#74;. Su&h &ontention within the literature has lead to repeated &alls for further e2amination of this relationship :e.g. -ust and Aliver! "##*? Anderson and 0ornell! "##*;. In the &ase of fast food! however! it seems li'ely that high servi&e Cuality will lead to in&reased satisfa&tion for &onsumers. Thus! @(9 Servi&e Cuality :DI%FSF-N; will positively effe&t &ustomer satisfa&tion for /alaysian fast food &onsumers. Intention to repur&hase is an individual+s judgment about re6buying a designated servi&e! ta'ing into a&&ount their &urrent situation and li'ely &ir&umstan&es :@ellier et al.! ())<;. 3ithin the literature! repur&hase behaviour is seen as a form of loyalty! whi&h a&&ording to Daw! @ui and Mhao! :())*; and Aliver :"##5; is a deeply held &ommitment to &onsistently repatronise a servi&e in the future. -epur&hase intentions have a powerful effe&t on potential business profit with some reports arguing as mu&h as #4 per&ent of profit arises from repeat pur&hases :@offman et al.! ())<;. As su&h! loyal &ustomers are valuable mar'eting tools! telling friends and families of their positive e2perien&es and &reating new business and in&reased revenue for su&&essful servi&e organisations. Servi&e Cuality is tied to desirable business out&omes! su&h as &ustomer loyalty! whi&h ultimately lead to in&reased profits :S&hneider and 3hite! ())*;. As argued by -ust! Mahori' and Ieiningham :"##4;! servi&e Cuality generates &onsumer intention to return! whi&h &an translate into a&tual behaviours that may lead to in&reased revenues and profits. In the e2tant literature however! there are mi2ed findings as to the relationship between overall servi&e Cuality and behaviors that are indi&ative of &ustomer loyalty. 0or e2ample! while 8oulding et al :"##<; and -ust and Mahori' :"##<; provide empiri&al support that higher per&eptions of servi&e Cuality in&reases loyalty intention! ,ronin and Taylor :"##(; found that overall servi&e Cuality did not effe&t repur&hase intentions.
Averall however! results tend to support this relationship and it seems li'ely that this will be the &ase for /alaysian &onsumers of the fast food industry. Thus! @<9 Averall servi&e Cuality :ASO; will positively effe&t repur&hase intentions for /alaysian fast food &onsumers. A&&ording to S&hneider and 3hite :())*;! satisfied &ustomers most li'ely will be&ome loyal whi&h &an then translate into higher profits organizations. As su&h! the relationship between &ustomer satisfa&tion and repur&hase intentions has been e2amined with results implying that satisfied &ustomers are more li'ely to intend to repur&hase :Taylor and 8a'er! "##*? Patterson and Spreng! "##5;. A&&ording to su&h findings! it appears li'ely that this will also be the &ase for /alaysian &onsumers in the fast food industry. Thus! @*9 ,ustomer satisfa&tion will positively effe&t repur&hase intentions for /alaysian fast food &onsumers.
The data pro&essing &onsists of &oding the data &olle&ted in the form of Cuestionnaire. The data &olle&ted with the help of Cuestionnaire is having the &losed replies. Ane open ended replies have been ta'en for that if any problems they are fa&ing and for the &lose ended the replies are measured using s&ales.
A.A;ESIS F I.TERPRETATIO.
"; GISIT
Frequenc&
Daily Weekly Fortnightly Monthly Total 14 38 19 9 100
visit
40 35 30 25 20 15 10 5 0 Daily Weekly Fortnightly Monthly 14 9 19 38
Interpretation<6 Fro the a2ove ta2!e and graph" it sa&s that aEorit& of the custo ers visit the fast food (+,F) visit fortnight!&
inorit& of the
(; P$"CE $A#.E
Frequenc&
24 60
++00
price range
70 60 50 40 30 20 10 0 100-200 200-500 Above 500
Interpretation<6 Fro the a2ove ta2!e and graph" it sa&s that aEorit& of the custo ers are *i!!ing to spend inorit& of the sa&s that the& *i!! spend
one& of price range +006100 (i$e$ 1?F) in the fast food retai! store
/0 Preference
80 +00
preference of store
60 50 40 30 20 10 0 !ran" i#age $a%y a&&e%%ibility '(e&ial o))er
Interpretation<6
Fro
aEorit& of the custo ers (i$e$ 80F) prefer (i$e$ 1,F) prefer eas& accessi2i!it&
10 %isiting ,ours
B+ +00
Interpretation<6 Fro the a2ove ta2!e and graph it sa&s that orning session and aEorit& of the custo ers are *i!!ing (i$e$ ?0F ) (i$e$B+F ) of the visit the store on
inorit& of the
Response
'trongly "i%agree Di%agree ,e+tral Agree 'trongly agree Total
Fre*+en&y
2 5 44 40 9 100
Interpretation96
Fro
are
agree that the& *i!! prefer the store for friend!iness of staff
Response
'trongly Di%agree Di%agree ,e+tral Agree 'trongly agree Total
Fre*+en&y
5 15 21 39 15 100
Interpretation Fro the a2ove ta2!e and graph it sa&s that neutra! a2out the variet& of aEorit& of the custo ers ( i$e$ B,F) of the enu and inorit& of the (i$e$ 1+F
agree that the& *i!! prefer the store due to the variet& of ) of the enu in the store
Response
'trongly "i%agree Di%agree ,e+tral Agree 'trongly agree Total
Fre*+en&y
5 20 39 15 20 100
Interpretation<6 Fro the a2ove ta2!e and graph it sa&s that aEorit& of the custo ers (i$e$ B,F) are inorit& of the are
neutra! a2out the preference of store due to service speed and disagree that (i$e$ 10F) of the prefer the store due to service speed
Response
'trongly "i%agree Di%agree ,e+tral Agree 'trongly agree Total
Fre*+en&y
9 33 19 31 20 100
Interpretation<6 Fro the the a2ove ta2!e and graph it sa&s that aEorit& of the custo ers (i$e$ BBF) of the inorit& of
disagree that the& *i!! prefer the store due to the ca!orie content in the food and
(i$e$ B+F) agree that the& *i!! prefer the store due to the ca!orie content in the food
Response
'trongly "i%agree Di%agree ,e+tral Agree 'trongly agree Total
Fre*+en&y
2 7 25 40 26 100
Interpretation< Fro the a2ove ta2!e and graph it sa&s that aEorit& of the custo ers (i$e$ ?0F ) of the
agree that the& *i!! prefer the store for a 2ience provided in the store
+0) Creference store due the de!iver& speed offer 2& the store
Response
'trongly "i%agree Di%agree ,e+tral Agree 'trongly agree Total
Fre*+en&y
4 20 15 41 20 100
Interpretation<6 Fro the a2ove ta2!e and graph it sa&s that aEorit& of the custo ers (i$e$ ?+F) of the
& fa i!&
Response
'trongly "i%agree Di%agree ,e+tral Agree 'trongly agree Total
Fre*+en&y
7 16 34 35 6 100
Interpretation<6 Fro the a2ove ta2!e and graph it sa&s that are neutra! a2out the aEorit& of the custo ers (i$e$ B8F ) of the
enu that *as offered in the fast food store and fo!!o*ed enu for their fa i!&
Response
'trongly "i%agree Di%agree ,e+tral Agree 'trongly agree Total
Fre*+en&y
11 20 41 14 14 100
Interpretation<6 Fro the a2ove ta2!e and graph it sa&s that aEorit& of the custo ers (i$e$ ?+F ) of the
sa&s that the& are neutra! a2out preferring the store due to the faci!ities
Response
'trongly "i%agree Di%agree ,e+tral Agree 'trongly agree Total
Fre*+en&y
4 18 15 45 15 100
Interpretation<6 Fro the a2ove ta2!e and graph it sa&s that aEorit& of the custo ers (i$e$ ?8F) of the
agree that the& *i!! prefer the store due to eas& accessi2i!it& and !ocationa! advantage
Response
'trongly "i%agree Di%agree ,e+tral Agree 'trongly agree Total
Fre*+en&y
9 20 33 28 10 100
Interpretation<6 Fro the a2ove ta2!e and graph it sa&s that aEorit& of the custo ers (i$e$ BBF) of the
are neutra! a2out the advertising strateg& provided 2& the store and fo!!o*ed 2& that custo ers agree the store for the advertising strateg&
Response
'trongly "i%agree Di%agree ,e+tral Agree 'trongly agree Total
Fre*+en&y
4 20 15 41 20 100
Interpretation<6 Fro the a2ove ta2!e and graph it sa&s that aEorit& of the custo ers (i$e$ ?+F ) agree
that the& *i!! prefer the store 2ecause of specia! offers and discounts$
Ma2or Findings
This stud& indicates that *eek!& (i$e$ B/F) and aEorit& of the custo ers visit the fast food retai! store (+,F) visit fortnight!& one& of one& inorit& of the
of price range +006100 (i$e$ 1?F) in the fast food retai! store This stud& indicates that the store and aEorit& of the custo ers (i$e$ 80F) prefer specia! offers in (i$e$ 1,F) prefer eas& accessi2i!it& are neutra! to
inorit& of the
agree that the& *i!! prefer the store for friend!iness of staff
aEorit& of the custo ers ( i$e$ B,F) of the enu and inorit& of the enu in the store
*i!! prefer the store due to the variet& of neutra! a2out the variet& of
the& *i!! prefer the store due to the ca!orie content in the food and
(i$e$ B+F) agree that the& *i!! prefer the store due to the ca!orie content in the food This stud& sa&s that aEorit& of the custo ers (i$e$ ?0F ) of the agree that the& *i!!
prefer the store for a 2ience provided in the store This stud& sa&s that satisfied *ith the of the aEorit& of the custo ers (i$e$ B8F ) of the enu for their fa i!& agree that the& agree that the& are
enu that *as offered in the fast food store and fo!!o*ed 2& so e
*i!! prefer the store due to eas& accessi2i!it& and !ocationa! advantage This stud& indicates that aEorit& of the custo ers (i$e$ BBF) of the are neutra!
a2out the advertising strateg& provided 2& the store and fo!!o*ed 2& that custo ers agree the store for the advertising strateg& This stud& indicates that aEorit& of the custo ers (i$e$ ?+F ) agree that the& *i!!
MaHo su!!"stions:
As majority of &ustomers :<7 per&ent; visit the store wee'ly espe&ially wee'ends. So it is suggest to stores give spe&ial offers and dis&ounts to &apture more &ustomers and retain loyal &ustomers. As study refers more &ustomers are loo'ing for the spe&ial offers !so it suggest stores to more &on&entrate on the spe&ial offers but no &ompromise in the Cuality of food. It is found that majority of &ustomers are not fully satisfied with the friendliness of staff. So it is suggest that the stores should &ondu&t soft s'ill training and ma'e them
give more &ustomer servi&e .-egular monitoring of the staff behavior towards &ustomers is also suggest here. ,ustomers are happy with the /F%= verities available in the stores .8ut it is suggested that add more &ustomized menu and review the menu for every < months. As study shows that &ustomers are not aware of the &alorie &ontents e2ist in the food. So it is suggest that stores should display the &alorie &ontents available in a parti&ular food. It is suggest the stores to &on&entrate on the areas of ambien&e and lo&ational strategy. Advertising strategy of the stores are not ma'ing attention the &ustomers .So it is suggest the stores to thin' of the design of different innovative advertising &aigns.