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Submitted By:
Roll No.
Registration No.
Mohd Fahad----------------RS-1803-A14--------------10809577
Satendra Pal Singh--------Rs-1803-A13---------------10804535
Sumit Rana-----------------RS-1803-A16---------------10808687
Submitted to:
Kanika Jhamb
DEPARTMENT OF MANAGEMENT
LOVELY PROFESSIONAL UNIVERSITY
PHAGWARA
(2010)
This is to certify that the project report titled Feasibility Study of opening a Maggi
Restaurant at Jalandhar-Phagwara Highway carried out by Mr Mohd Fahad (Student
name), S/o Mr Mohd Saeed Ahmad (Fathers Name) has been accomplished under my
guidance & supervision as a duly registered MBA student of the Lovely Professional
University, Phagwara. This project is being submitted by him/her in the partial fulfilment
of the requirements for the award of the Master of Business Administration from Lovely
Professional University.
His dissertation represents his original work and is worthy of consideration for the award
of the degree of Master of Business Administration.
DECLARATION
I, Mohd Fahad (Students name), hereby declare that the work presented herein is
genuine work done originally by me and has not been published or submitted elsewhere for
the requirement of a degree programme. Any literature, data or works done by others and
cited within this dissertation has been given due acknowledgement and listed in the
reference section.
This is to certify that the project report titled Feasibility Study of opening a Maggi
Restaurant at Jalandhar-Phagwara Highway carried out by Mr Satendra Pal
Singh(Student name), S/o Mr Udaiveer Singh (Fathers Name) has been accomplished
under my guidance & supervision as a duly registered MBA student of the Lovely
Professional University, Phagwara. This project is being submitted by him/her in the partial
fulfilment of the requirements for the award of the Master of Business Administration from
Lovely Professional University.
His dissertation represents his original work and is worthy of consideration for the award
of the degree of Master of Business Administration.
DECLARATION
I,"Satendra Pal Singh (Students name), hereby declare that the work presented herein is
genuine work done originally by me and has not been published or submitted elsewhere for
the requirement of a degree programme. Any literature, data or works done by others and
cited within this dissertation has been given due acknowledgement and listed in the
reference section.
This is to certify that the project report titled Feasibility Study of opening a Maggi
Restaurant at Jalandhar-Phagwara Highway carried out by Mr Sumit Rana (Student
name), S/o Mr Amar Chand Rana (Fathers Name) has been accomplished under my
guidance & supervision as a duly registered MBA student of the Lovely Professional
University, Phagwara. This project is being submitted by him/her in the partial fulfilment
of the requirements for the award of the Master of Business Administration from Lovely
Professional University.
His dissertation represents his original work and is worthy of consideration for the award
of the degree of Master of Business Administration.
DECLARATION
I,"Sumit Rana (Students name), hereby declare that the work presented herein is genuine
work done originally by me and has not been published or submitted elsewhere for the
requirement of a degree programme. Any literature, data or works done by others and cited
within this dissertation has been given due acknowledgement and listed in the reference
section.
Acknowledgement
We sincerely feel that the credit of this project report could not be narrowed to only one
individual as the whole work is outcome of integrated efforts of all those concerned with it
through whose cooperation and effective guidance we could achieve its completion.
We wish to place our profound in debtness and deep sense of obligation to Kanika Jhamb
lecturer Lovely Professional University for providing us with the opportunity to work on
such an interesting topic. We also want to pay our gratitude and sincere thanks to our
esteemed Mam for being supportive during the entire tenure of this project.
When emotions involved words fail to mean. Our heart full sincere gratitude to our
parents, who have supported, encouraged and helped us throughout our lives and academic
career.
Mohd Fahad
Satendra Pal Singh
Sumit Rana
our childhood. The study will first look at the literature with regard to restaurant feasibility
study, and then follow the three steps proposed by the literature to conduct the feasibility
study of the proposed restaurant.
The purpose of the study is to determine the feasibility of opening a Maggi restaurant on
Jalandhar- Phagwara highway. Data will be collected through observational research
method and through a survey distributed to potential customers.
The research objectives are:
1)
To understand the needs and wants of the customer from the proposed restaurant.
2)
As there is no restaurant of such kind and the population size is very large. So there is wide
scope of this study.
This survey will provide us with an industry specific market analysis format that can be
used in a feasibility study, business plan or marketing plan. The following will help
analyze the market potential of an existing operation, an expansion or a new development.
The analysis can provide essential information required in a business plan or feasibility
study. Through careful analysis of the market, the risks of a business investment can be
lessened. Using your market analysis findings, you can estimate the financial potential of
your venture by creating financial projections. If we are a prospective restaurateur, these
projections will help us determine if our venture is feasible.
The nature of the research determines that both primary research and secondary research
should be conducted to collect information needed for the feasibility study. Observational
research method will be used to collect the information regarding competition and site
selection, and a survey will be conducted to collect information concerning consumer's
spending pattern.
In this research 200 respondents are taken as sample size and primary as well as secondary
data is used in finding the feasibility of the proposed restaurant.
In the findings of the feasibility study of the Maggi restaurant we get certain facts that are
as follows:
1)
3)
From the analysis it is found that most of the respondents spend Rs. More than 150
on an average per visit so there is a great potential of the customer and the potentiality in
the terms of money or demand.
4)
Maximum respondents are willing to go to the proposed restaurant of Maggi so
there is a great potential of customer for the proposed restaurant.
We have used various research methods like factor analysis; Pearsons and various test
method to verify the data.
Index
CERTIF
CONTENTS. ICATE
iI
SNO.
1.
PAGE NO.
Acknowledgement.8
10
2.
Abstract.9-10
3.
Introduction of topic.13-15
4.
Review of literature..16-30
5.
6.
Research objectives32
7.
Research methodology..33
Sample size.33
Data collection33-34
8.
9.
Findings60
10.
Conclusion.............................................................................61
11.
Limitations61
12.
Recommendation..62
13.
References..64-65
14.
Questionnaire67-68
11
CHAPTER I
INTROCUCTION TO
TOPIC
12
INTRODUCTION TO
SUBJECT
1.1 Introduction
The paper is to present a proposal for a Maggi stand-alone restaurant which seeks to
conduct a feasibility study for the same at Jalandhar-Phagwara highway.
A feasibility study is a preliminary study undertaken to determine and document a
projects viability. The results of this study are used to make a decision whether to proceed
with the project, or not. If it indeed leads to a project being approved, it will before the real
work of the proposed project starts - be used to ascertain the likelihood of the project's
success. It is an analysis of possible alternative solutions to a problem and a
recommendation on the best alternative.
Features of Maggi
a)
Maggi is a very famous food and preferred by most of the people from their
childhood.
b)
Maggi is very tasty food and can be used as breakfast, lunch and dinner at any time.
c)
Maggi can be made in a very short time so the preparation time of maggi becomes
The cost of Maggi is also less, a balanced nutrition level and low cost makes the
There are many small and big restaurants and hotels available on this highway like Haveli,
Bikanerwala restaurant, Lucky Dhaba, McDonalds, KFC etc. As they are well accepted by
the people and they are providing the best services, quality food and facilities like parking
and served on table in the open air and a brand to attract the customers.
The demand and the potential of the people are very high at this highway which means
potentially higher market demand.
There is a huge population at this site and the people are mostly used to visit this site, as
more than 24000 students are in lovely professional University and the other residential
people are used to visit these restaurants to have a fresh and hygienic food as their lunch
and dinner.
And the pricing strategies adopted by these restaurants are different. Like Haweli comes in
luxury brand and on the other hand Lucky Dhaba comes the economical as compare to the
Haweli. They are providing a pleasant environment; people come in the groups of three or
four and each group consumes various types of dishes.
The proposed study seeks to decide the feasibility of opening a quick-service restaurant of
Maggi at Jalandhar- Phagwara Highway near LPU. The following discussion will provide
the reader with an understanding of the background of the study, the purpose of this study,
reasons why this topic is important and methods selected for data collection and analysis.
14
CHAPTER II
REVIEW OF LITERATURE
15
3) Site analysis, a process to determine whether the characteristic of the site and the
competitive environment around the restaurant will support such a concept.
4) Competitor analysis, which involves investigating competitors in the market area
through a competitor analysis worksheet.
(http://www.restaurant.org/m~a~magArticle.cfm?articleID= T294)
The chapter includes published knowledge that correlates with the above four steps
excluding step two, because in this study the concept has already be firstly chosen, thus
including three sections. The first section will look at literature about how a trade area or
market area should be determined, literature of the demographic characteristics and
consumers spending patterns of the market area. The second section will comprise
literature about competition analysis, and the last section will include literature about siteselection analysis for a start-up restaurant.
Market Area
16
Melaniphy (1992) Restaurant &fast food site selection New York, NY:
John Wiley & Sons, Inc.
Before any research can be done, the market area of the proposed business must be
identified to go further in the exploring process. A market area is defined as the area from
which a unit can expect to capture approximately 85% of its business.
For an established restaurant business, it is not hard to get market area information.
Surveys can be made to gather information about where the customers are from, and plots
on the maps can be made to give a clear of picture of the market area or trade area. On the
other hand, it is hard to predict the market area of a proposed restaurant because no
information as to where the customers are from is available for a future restaurant. But this
information can be collected by gathering such information from vehicle stickers, license
plate, competitors' customer interview, mailed-back questionnaire from competitive
facilities.
However, in this study, market area can be easily identified since the proposed site will be
located at Jalandhar-Phagwara Highway and customers of the restaurant will be mostly
customers of the shopping mall and the students. Thus the market area of the supermarket
will be the same as that of the restaurant. The following discussion will first identify the
market area of the restaurant and analyze the characteristics of the market area, and then
describe the future development of the market area of the proposed restaurant.
Market Analysis
Restaurant market Analysis (2003). Retrieved January 27th, 2006,
http://www.uwex.edu
Developing a business plan for an existing business or conducting a feasibility study for a
new venture requires a thorough analysis of market conditions. Market conditions in this
area have a significant impact on the profitability of our restaurant. The strength of the
local market affects how many customers we will serve and the menu prices that we can
charge. This guidebook will help us to analyze our market so that we can gauge the
potential of our existing or proposed operation and make more informed operating and
investment decisions.
17
On the pages that follow are a series of checklists to help us collect and analyze
information as part of a restaurant market analysis. The checklists, tailored to the restaurant
industry, will serve as a learning tool to help you understand the many market factors that
influence our profitability.
opportunities. It is found from the studys statements that age and income distribution
reveals the most how much eating-out need there is among the researched population.
Thus, in this case study, the we will focus on the two most important aspects of
demographic characteristics, age and income distribution and also discuss other related
demographic features.
According to National Restaurant Association (1998),"in addition to the basic
information on our potential customers gained through demographic studies, we will need
to know more about their habits of eating away from home." But how to determine their
eating-out behavior, National Restaurant Association (1998) provides the following
guidelines based on different types of restaurants and their targeted market segment.
a. The average person (8 years and older) eats out 4.1 times a week.
b. Singles and married couples with no children eat out more frequently than families with
children.
c. As income increases, consumers eat away from home more frequently.
d. People 18 to 24 year old eat out more often than other age groups.
e. households with a working female eat out more frequently than those with a nonworking
female.
Matching up these guidelines with demographic characteristics information provides the
clue to the consumer spending behavior.
Matching up these guidelines with demographic characteristics information provides the
clue to the consumer spending behavior. In this study, population profile and consumer
spending pattern will be collected mainly through surveys due to the lack of such statistics
from the government.
As this area is becoming very developing and the population is increasing very fast in this
area. Also the demand and potential of the people are also increasing. The infrastructure is
also developing. This provides an increasing market for Maggi restaurants.
Industry Trends
Studying industry trends is one of the steps in conducting a market analysis. It will help us
identify opportunities and threats in the industry that may affect our profitability. Studies
on consumer eating and drinking patterns are available from various sources. Such studies
19
report recent changes and trends in consumer attitudes and behaviors regarding food away
from home.
They can identify changing trends before they become apparent in our local market. The
following are some of the sources of industry trends data available to us:
Competitor analysis
Competition analysis seems to be easy but it is because of the mentality towards
competition analysis that makes a lot of unsuccessful businesses. Competition analysis is
not just randomly choosing the restaurants that is located to the proposed restaurant, and
22
have a rough idea of what the competitors are like, but to carefully choose the direct and
indirect competitors, and analyze all the aspects of the restaurants ranging from exterior
appearance to traffic counts.
From the study we find out that the competitors can be further divided into direct
competitors and indirect competitors. "Direct competition represents those food service
facilities that are competing directly with a specific menu. For example, Haveli restaurant
operation is directly competitive, and a fast food hamburger facility is directly competitive
with other fast food hamburger facility by MacDonalds".
"Indirect competition represents competition that is less direct such as a steak restaurant
compared with a KFC restaurant, or a fast food chicken operation compared with a
pizzeria."It indicates that two kinds of analyses should be done when sizing up the
competition in an area we have tentatively selected for our own site. First, complete the
competitor's location analysis. Second, complete the competitor's strategy analysis.
The location analysis can be conducted as following:
"From the outside, evaluate whether the facility is properly located and attractive. From
inside, judge the layout of the store and its merchandising, pricing, personnel training and
attitudes, inventory level, cleanliness, lighting, and the number of people walking out of
the store without any purchased merchandise." Competitor's strategy analysis can be done
through "a straight interview with the manager or owner and with some of the employees",
and "analyze the advertising of our top competitor". In this case study, observation and
interview with store employees are going to be made to collect competitors' information,
but analysis of competitors' advertisements is impossible to be done due the fact that none
of the competitors have any advertising. Restaurant competition analysis worksheet will be
adopted to collect competitors' data.
Existing market area restaurants can provide valuable information to help us analyze
demand and market opportunities. We can assess their competitive strengths and
weaknesses and learn from their successes and failures. First, identify how many
restaurants are in our market area. Then, identify those restaurants that appeal to the types
of customers (market segments) that we plan to serve. We should also identify all other
restaurants located in our immediate area because they can also influence our business.
Consider including bar and grille, catering services, food delivery services, grocery stores
23
with deli, etc. Refer to the Yellow Pages and our local Chamber of Commerce for listings
of area food-service operations.
It is important to identify any market area restaurants that have closed, and for what
reasons. Also, learn what new restaurants are planned for the market area and determine
how they might affect our proposed operation.
Location
Menu
Theme
Variety and selection
Price range and value
Beverage service
Food Quality
Taste
Presentation
Portion size
Consistency Service
Days open
Hours of operation
Service style
Quality of service
Speed of Service
Extra services offered
General Information
Number of seats
Estimated seat turnover by day and by meal period
Types of guests served (age, income, origin...)
Is business increasing or decreasing?
Entertainment
Local reputation
Advertising and promotion methods used Overall
Strengths
Weaknesses
24
Throughout the world, McDonalds prides itself in hiring locals, specifically management
in order to gain acceptance into the country by its citizens. The emphasis is based on the
think global, act local theme of the company. For instance, the company decided to
establish two joint ventures with two local entrepreneurs in New Delhi, who were selected
to manage the fast food restaurant. This strategic move allowed the company to gain easy
access to the bureaucracy associated with the countrys government.
Employment Opportunity
Foreign enterprises are often reluctant to hire locals in their companies, specifically at the
managerial positions, however, McDonalds research concluded that in order to survive the
brutal Indian government, it would have to hire locals as cashiers, cooks, managers, etc., as
well as provide jobs for the countrys agricultural workforce. In fact, McDonalds
outsources its products to several Indian companies throughout India. This provides
evidence to the Indian government that McDonalds is not only customer friendly, but also
employee friendly.
26
Environmental Friendliness
In order to achieve a positive reputation, as well as follow local and national policies of a
country, McDonalds tries to establish services that are environmentally friendly. India is
an example where the company provides financial contributions and sponsors several
community related activities in order to promote environmental protection. This is
primarily seen within schools; thus indicating that the company also supports local schools.
Corporate Citizenship
In order to better its reputation, this multinational firm gives back to the local citizens in all
countries it operates. For example, the company provides several financial donations to
local organizations. This is one way to encourage consumers to eat at its restaurants, as it is
an incentive that is used to spread the name.
Pricing
As the value of currencies varies worldwide, McDonalds is often forced to change its
pricing strategy in accordance to its target market. For instance, the value of a Big Mac
varies worldwide. It seems that the company tries to maintain a price range on all its
products based on the location, income distribution and it is for this purpose that the
company opens up most of its restaurants in major cities such as New Delhi and so on. Its
primary goal is to initially attract middle and upper class citizens, as they can afford
McDonalds prices. After this, they slowly target the lower middle class citizens. In the
India, for example, the restaurant chain has appealed equally well to all classes ranging
from the poor to the upper class; however, its popularity continues to be among the lower,
middle and upper middle class.
27
continent, McDonald's has not only lasted the distance, its branching out and is opening
more outlets due to its effective marketing strategies.
When McDonalds India launched in 1996, urban Indians in Mumbai and Delhi typically
ate out three to five times a month, according to AT Kearney, the management consultancy.
In the 12 years since then, that average frequency has doubled and analysts forecast that
by 2011 the Indian quick service restaurant market will be worth about $6.3 billion.
The first Indian McDonalds outlet opened in Mumbai in 1996. Since then, outlets have
begun trading in metropolitan and bigger towns across the country.
Amit Jatia, managing director of McDonald's India, says The past decade has witnessed
a marked change in Indian consumption patterns, especially in terms of food. Households
in middle, upper, and high-income categories now have higher disposable income per
member and a propensity to spend more.
Applications
This survey will provide us with an industry specific market analysis format that can be
used in a feasibility study, business plan or marketing plan. The following will help
analyze the market potential of an existing operation, an expansion or a new development.
Existing operators can use a market analysis to identify opportunities to improve sales. The
analysis can provide valuable information on market conditions to help in forecasting and
budgeting. It also provides a foundation for an effective marketing plan. Prospective
operators can use a market analysis to project sales volume for a new restaurant venture.
The analysis can provide essential information required in a business plan or feasibility
study. Through careful analysis of the market, the risks of a business investment can be
lessened. Using your market analysis findings, you can estimate the financial potential of
your venture by creating financial projections. If we are a prospective restaurateur, these
projections will help us determine if our venture is feasible.
28
CHAPTER III
NEED, OBJECTIVE, SCOPE &
METHODOLOGY
29
The study can be helpful in taking decision so as to improve the quality and
service.
2.
The study can also provide the idea about the market strategy adopted by
restaurants.
3.
Statement of Problem
The purpose of the study is to determine the feasibility of opening a Maggi restaurant on
Jalandhar- Phagwara highway. Data will be collected through observational research
method and through a survey distributed to potential customers.
1.
To understand the needs and wants of the customer from the proposed restaurant.
2.
Sample Size:
31
The size of customers must be kept in view for these limits. The parameters of the research
study must be kept in view while deciding the size of sample.
In this research study, Sample size is 200 respondents.
Internet.
Primary data:
Questionnaire was used to collect primary data from respondents. The questionnaire was
structured type and contained questions relating to different dimensions of restaurant
preferences among proposed population to understand the needs and wants of the customer
and to identify the market area and site of the proposed restaurant.
Data Analysis
A number of statistical analyses were used in this consumer spending pattern study and
market potential study. The Statistical Program for Social Sciences, version 15.0 is
used to analyze the data. Due to the likert nature of the question on the questionnaire,
we have used the factor analysis.
Tool and techniques of analysis: The data so collected will be analyzed through the
application of statistical techniques, such as pie charts.
Data formulation: SPSS
Data Analysis tools: factor analysis
32
CHAPTER IV
INTERPRETATION OF
FEASIBILITY STUDY ON
MAGGI RASTAURANT
33
Valid
Frequency
Percent
Valid Percent
Cumulative Percent
once
21
10.5
10.5
10.5
twice
37
18.5
18.5
29.0
thrice
30
15.0
15.0
44.0
four times
44
22.0
22.0
66.0
67
33.5
33.5
99.5
others
.5
.5
100.0
Total
200
100.0
100.0
34
From the above figure 1 analysis: - 33.5% respondent go to a restaurant more than 4
times, 22% respondent go to the restaurant 4 times, 15% respondent go to restaurant 3
times, 18.5% respondent go to the restaurant twice and 10.5% respondent go to restaurant
once in a month.
Table 2:
Q2. What is the reason for going to a restaurant?
Cumulative
Valid
Frequency
Percent
Valid Percent
Percent
family
18
9.0
9.0
9.0
engagement party
10
5.0
5.0
14.0
birthday party
10
5.0
5.0
19.0
for enjoyment
152
76.0
76.0
95.0
other
10
5.0
5.0
100.0
Total
200
100.0
100.0
35
From the above figure 2 analysis: - Maximum respondent i.e. 76% respondents go to the
restaurant for enjoyment, 5% respondents for birthday,5% respondents for engagement
party, 9% respondents go with family.
The above analysis shows that most of the people go to a restaurant for the enjoyment. So
there is great potential of demand for a restaurant.
Agree
Neutral
Disagree
Strongly
Disagree
Brand Name
Location
Visibility
Accessibility
Theme (ethnic, regional etc.)
Ambience
36
Service
Quality
Price
Hours of Operation
.605
247.807
45
.000
From KMO and Bartletts test, the value of validity should be in between 0.5 to 1.0. And
we have found that from the analysis the value of validity is 0.605 which shows that our
analysis is correct.
37
Total
1
2
3
4
5
6
7
8
9
10
2.354
1.530
1.095
.972
.900
.821
.770
.643
.554
.360
Loadings
% of
Cumulative
Variance
23.537
15.304
10.948
9.718
9.005
8.207
7.701
6.433
5.544
3.604
23.537
38.841
49.789
59.507
68.512
76.719
84.420
90.853
96.396
100.000
Total
2.354
1.530
1.095
% of
Cumulati
Variance
ve %
23.537
15.304
10.948
23.537
38.841
49.789
Total
1.894
1.572
1.513
% of Variance Cumulative %
18.940
15.722
15.127
18.940
34.663
49.789
From the analysis of above table, the first three component i.e. Brand name, location and
visibility give the approximate 50% correct data and the rest seven factors give another 50
% data.
38
From the screen plot graph, the eigenvalue and the component numbers matched so the
result is correct.
39
.307
-.223
.614
-.051
.147
.644
.523
-.023
.473
.589
.131
.046
.780
-.066
.103
.686
.060
.065
.057
.823
.130
-.011
.817
.106
.045
.143
.663
.305
.331
-.110
0.614
0.644
Visibility
Accessibility
0.523
40
.307
-.223
.614
-.051
.147
.644
.523
-.023
.473
.589
.131
.046
.780
-.066
.103
.686
.060
.065
.057
.823
.130
-.011
.817
.106
.045
.143
.663
.305
.331
-.110
From the analysis of above table we have found the component:Component 1:- theme, ambience and accessibility
Component 2:- service, quality and hours of operation
Component 3:- Brand name, location, and price.
41
Items
.558
N of Items
.552
The value of Cronbachs alpha based on standardized items is more than 0.5 which shows
that result is accurate.
Item-Total Statistics
Scale Mean if Item Scale Variance if
Deleted
Theme (Ethnic, regional etc.)
Ambience
Accessibility
Item Deleted
4.0400
4.1250
4.3750
1.385
1.447
1.924
.458
.403
.256
Item Deleted
.223
.198
.070
.305
.401
.609
The above analysis shows that if we left the third factor i.e. accessibility then we find the
value of Cronbachs alpha based on standardized items is 0.609 which is more accurate
when we include this factor so we can left this factor.
So our first component includes the factors:- Theme and ambience
For the second component:Reliability Statistics
Cronbach's Alpha
Based on
Standardized
Cronbach's Alpha
.428
Items
N of Items
.486
The above table of Cronbachs alpha based on standardized items shows the value is 0.468.
42
Item-Total Statistics
Scale Mean if Item Scale Variance if
Deleted
Service
Quality
Hours of operation
Item Deleted
3.3750
3.4350
2.6300
Corrected Item-
Squared Multiple
Cronbach's Alpha
Total Correlation
Correlation
if Item Deleted
.999
1.091
.928
.337
.376
.129
.247
.250
.017
.199
.180
.657
The above table shows that if we left the third factor i.e. hours of operation then we can
find the value of Cronbachs alpha based on standardized items is 0.657 so we can left this
factor.
So our second component includes the factors:Service and Quality
Reliability Statistics
Cronbach's Alpha
Based on
Standardized
Cronbach's Alpha
.403
Items
N of Items
.402
The above table shows the value of Cronbachs alpha based on standardized items is 0.402.
43
Item-Total Statistics
Scale Mean if Item Scale Variance if
Deleted
Price
Location
What factors affect you to go to
a restaurant? 1. Brand Name
Item Deleted
Item Deleted
3.2700
3.4200
1.123
1.300
.256
.225
.066
.051
.275
.334
3.4400
1.303
.236
.056
.315
The above table shows that we cannot left any of the factor in this component because our
value of Cronbachs alpha on the basis of standardized items is not more than 0.5.
Revised factor analysis after the reliability test:KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy.
Bartlett's Test of Sphericity Approx. Chi-Square
df
Sig.
.510
159.558
21
.000
From the analysis of KMO and Bartletts test, the value of validity is 0.510. The idle value
of validity should be in between 0.5 to 1.0.
44
Total
% of
Cumulative
Variance
1
2
3
4
1.863
1.485
1.045
26.609
21.220
14.929
26.609
47.828
62.757
.818
11.685
74.442
.762
10.880
85.322
.648
9.261
94.583
.379
5.417
100.000
Total
1.863
1.485
1.045
% of
Cumulative
Variance
26.609
21.220
14.929
26.609
47.828
62.757
Variance
Cumulative %
21.817
21.728
19.212
21.817
43.545
62.757
From the table of total variance it is found that our first three component i.e. brand name,
location and visibility shows the result approximately 63%. And the rest factors show
another 37% data. And the values of these three components are greater than 1.00.
45
From the screen plot graph we have found that our eigenvalue and the number of
components are matched from the table of total variance.
46
.856
.844
-.044
.121
.099
.151
-.010
.061
.832
.820
-.084
.108
.025
.122
.117
.026
.745
.665
-.183
.366
.564
Maximum values of the components from the rotated component matrix:Rotated Component Matrix
1
Quality
Service
Theme (Ethnic, regional etc.)
Ambience
Location
Price
Brand Name
Component
2
0.855949
0.843648
0.831889
0.819956
0.745
0.665
0.564
From the table of rotated component matrix we have found the three components:Component 1:- quality and service
Component 2:- theme and ambience
Component 3:- location, price and brand name
Component 1 shows that operational capability which shows the service benefit of the
consumer which the consumer has find from the restaurant and its effect the consumer
perception positively because when consumer find these facility from the restaurant then
the perception of the consumer regarding the restaurant and product is turned on and on the
basis of this the buying behaviour of consumer has been changed.
47
Component 2 shows the physical evidences of the restaurant. It shows the benefits of
healthy and friendly environment.
Component 3 shows the competitive edge from the restaurant point of view and from the
consumer point of view it provide the economic value in the terms of brand name, easy to
access or time saving and in the terms of price of the food.
48
Table 3
Q4. How much do you spend on an average per visit?
Cumulative
Valid
Frequency
Percent
Valid Percent
Percent
Up to Rs 50
2.0
2.0
2.0
Rs 50-100
20
10.0
10.0
12.0
Rs 100-150
49
24.5
24.5
36.5
127
63.5
63.5
100.0
Total
200
100.0
100.0
49
From the above figure 3 analyses: - 63.5% respondents spend more than Rs.150, 24.5%
respondents spend Rs. 100-150, 10% respondents spend Rs.50-100 and 2% respondents
spend upto Rs. 50 on an average per visit.
The above analysis shows that maximum people spend more than Rs. 150 on an average
per visit so this shows that there is a great potential of customers for the proposed
restaurant.
Table 4:
Q5. If Maggi comes up with a restaurant with the above mentioned features/attributes then
will you want to go and eat in the restaurant?
Valid
Frequency
Percent
Valid Percent
Cumulative Percent
yes
165
82.5
82.5
82.5
no
35
17.5
17.5
100.0
Total
200
100.0
100.0
50
Table 5:
51
Q6. How much are you willing to spend for Maggi/Burger/Soups at a time?
Frequency
Percent
Valid Percent
Cumulative Percent
uptoRs 30
28
14.0
14.0
14.0
Rs 30-40
39
19.5
19.5
33.5
Rs 40-50
47
23.5
23.5
57.0
more than Rs 50
86
44
43
Total
200
100.0
100.0
Valid
100
From the above figure 5 analyses: - 44% respondents are willing to spend more than
Rs.50 for the proposed Maggi restaurant, 23.5% respondents are willing to pay Rs. 40-50,
and 19.5% respondents are willing to pay Rs. 30-40, and 145 respondents are willing to
pay up to Rs.30 at a time.
Table 6:
52
Frequency
Percent
Valid Percent
Percent
48
24.0
24.0
24.0
near Haveli
71
35.5
35.5
59.5
54
27.0
27.0
86.5
other
27
13.5
13.5
100
Total
200
100.0
100.0
From the above figure 6 analyses: - 35.5% respondents prefer the location near Haveli,
27% inside the LPU campus, 24% outside the LPU campus and 13.5% respondents
proposed other location for the proposed restaurant.
53
Table 7:
Q8.What is your age?
Cumulative
Valid
Frequency
Percent
Valid Percent
Percent
1.0
1.0
1.0
18-25 years
150
75.0
75.0
76.0
25-35 years
36
18.0
18.0
94.0
35-45 years
3.5
3.5
97.5
greater than 45
2.5
2.5
100.0
Total
200
100.0
100.0
From the above figure 7 analyses: - 75% respondents were of age 18-25 years, 18%
respondents were of age 25-35years, 3.55% respondents were of age 35-45years, 2.5%
respondents were of age greater than 45 years and 1% respondents were of below 18 years
old.
54
Table 8:
Q9. What is your occupation?
Cumulative
Valid
Frequency
Percent
Valid Percent
Percent
service
31
15.5
15.5
15.5
business
24
12.0
12.0
27.5
student
125
62.5
62.5
90.0
agriculture
20
10.0
10.0
100.0
Total
200
100.0
100.0
From the above figure 8 analyses: - 62.5% respondents were students, 15.5%
respondents were service men/ women, 12% respondents belong to business and 10%
respondents belong to agriculture.
55
Table 9:
Q10. What is your educational level?
Cumulative
Valid
Frequency
Percent
Valid Percent
Percent
below graduation
31
15.5
15.5
15.5
graduate
50
25.0
25.0
40.5
post graduate
119
59.5
59.5
100.0
Total
200
100.0
100.0
From the above figure 9 analyses: - 59.5% respondents were Post Graduate, 25%
respondents were Graduate, and 15.5% respondents were below the graduation.
56
Table 10:
Q11. What is your annual income?
Cumulative
Valid
Missing
Frequency
Percent
Valid Percent
Percent
upto 1 lakh
55
27.5
37.2
37.2
1-1.5 lakh
21
10.5
14.2
51.4
1.5-2 lakh
19
9.5
12.8
64.2
above 2 lakh
53
26.5
35.8
100.0
Total
System
148
52
74.0
26.0
100.0
200
100.0
Total
From the above figure 10 analyses: - The income level of 26.5% respondents is above 2
lakh, 1.5-2 lakh is of 9.5% respondents, upto 1 lakh is 27.5% respondents and 26%
respondents did not disclose their income.
57
CHAPTER V
SUMMARY, FINDINGS,
CONCLUSION, LIMITATION
& RECOMMENDATIONS
5.1 Summary
Knowledge cannot be gained only on the basis of theoretical understanding from books. A
practical insight is necessary for the learning process to make it complete and effective.
58
My project aim was to find out feasibility of opening a Maggi restaurant on JalandharPhagwara Highway. In my research study 200 respondents are taken for the purpose of
survey just to observe and to understand the needs and wants of the customer for the
proposed restaurant. It also focuses on the market area and site of the proposed restaurant.
We found that most of the respondents choose location near Haveli and the visit restaurant
for the enjoyment purpose. So the feasibility of opening Maggi restaurant on this selected
site have very high rate of growth in order to have restaurant at this place.
Conclusion
This project determines the feasibility of opening a Maggi restaurant on JalandharPhagwara highway to understand the needs and wants of the customer and to identify the
market area and site of the proposed restaurant. Maximum respondents choose the location
of Near Haveli as the location of proposed restaurant. From the analysis we have found
the three component i.e.
59
From the first component includes the service and the quality of the products which shows
the operational capabilities of the restaurant, second component contains the theme and
ambience of the restaurant which shows the physical evidence of the restaurant and three
component shows the location, price and the brand name of the restaurant which shows the
economic values from the consumer point of view and the competitive edge from the
restaurant point of view.
So there is a feasibility of the proposed Maggi restaurant on Jalandhar- Phagwara highway
near Haveli.
5.4 Limitations
The limitation of the research includes the following two points:
a.
b.
Unwillingness of respondents
c.
Again, asking about family income will make the subjects more aware of security
issue when revealing their family income. As a result, no family income questions are
asked in the questionnaire, and no such information can be collected.
5.5 Recommendations
We can see that the people are really becoming habitual of spending more money on
having a food at restaurant as their income levels increases so there is high possibility of
success for a Maggi restaurant on the Jalandhar- Phagwara Highway near Haveli.
60
Restaurant should focus on its operational capabilities so that they can give better
Restaurant should focus on its physical evidences like ambience etc. so that they
can create the healthy environment and consumers feel free at the restaurant.
Restaurant also focuses on the location because it gives the main competitive edge.
CHAPTER VI
BIBLIOGRAPHY
61
6.1 Bibliography
Andrews, L. (2003). Buying & selling a restaurant business: for maximum profit Ocala,
food service site for maximum profit Ocala, F1: Atlantic Pub. Group
62
Brown, D. (2003). The restaurant manager's handbook: how to set up, operate, and
manage a financially successful food service operation Ocala, FL: Atlantic Pub. Group
Eppli, M. J. & John D. B1994.The evolution of shopping center research: a review and
analysis. The Journal of Real Estate Research. 9.1:5-32
Fullen, S. (2005). Opening a restaurant or other food business starter kit: how to prepare
a restaurant business plan &feasibility study Ocala, F1: Atlantic Pub. Group
Katsigris, C. (2006). Design and equipment for restaurants and foodservice: a
Market
Analysis
(2003).
Retrieved
January
27th,
2006,
from
http://www.uwex.edu
Salvaneschi, L. (1 996). Location, location, location: how to select the best site for your
making and other tales @Om the culinary trenches Chicago, IL: Dearborn Trade Pub.
63
Walker, John R. (2005). The restaurant: from concept to operation Hoboken, NJ: John
Wiley.
6.2 References
http://www.cluteinstitute-onlinejournals.com/PDFs/115.pdf
http://www.marketingmag.com.au/news/view/mcdonald-s-marketing-success-in-india-852
http ://www.restaurant.org
http://house.scol.com.cn
http://www.uwex.edu
CHAPTER VII
APPENDIX
64
Questionnaire
Dear Sir/Madam.
We are conducting this survey as a part of our M.B.A. programed from Lovely
Professional University, Punjab. The purpose of this survey is to study the Feasibility
Study of opening a Maggi Restaurant at Jalandhar-Phagwara Highway, so we would
be grateful if you could spend some of your precious time in filling up this Questionnaire.
Q1.How many times do you usually go to restaurant in a month?
Once
Twice
Thrice
4 times
Engagement party
Birthday party
for enjoyment
Other (specify)..
65
Neutral
Disagree
Strongly
Disagree
Brand Name
Location
Visibility
Accessibility
Theme (ethnic, regional etc.)
Ambience
Service
Quality
Price
Hours of Operation
Q4. How much do you spend on an average per visit?
Up to Rs.50
Rs.50-100
Rs.100-150
No
Q6. How much are you willing to spend for Maggi/burger/soups at a time?
Up to Rs.30
Rs.30-40
Rs.40-50
Near Haveli
Other (specify)..
Q8. What is your age?
Less Than 18
18-25 years
25-35years 3 5
35-45
Greater Than
45
Q9. What is your occupation?
Service
Business
Student
Agriculture
Others (specify).
Below graduation
Graduate
Post Graduate
.
Q11. What is your annual income?
Up to 1 lakh
1-1.5lakh
1.5-2lakh
Above 2 lakh
Name..
Mobile no
Address.
67