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MM TERM PROJECT REPORT

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MARKETING PLAN
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FOR

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FAASO’S- FEAST ON THE RUN
(HINJEWADI)

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DATE OF SUBMISSION: 8TH FEB ‘10

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SUBMITTED BY:

09020242007: DIVYA BODDU

uiopasdfghjklzxcvbnmqwertyuiopasdf 09020242016: KAMLESH KUNHARA

09020242038: SAGAR SHINDE

ghjklzxcvbnmqwertyuiopasdfghjkl 09020242043: TEENA DEURI

09020242051: JYOTI JADHAV

 INDEX

1.EXECUTIVE SUMMARY
1.1 OBJECTIVES
1.2 VISION
2.SITUATION ANALYSIS AND SWOT
3.BUSINESS OBJECTIVES IN TERMS OF SALES AND PROFITS
4.MARKET ANALYSIS
4.1 INDUSTRIAL ANALYSIS
4.2 COMPETITOR ANALYSIS
4.3 STP
5.MARKETING STRATEGY OBJECTIVES AND IMPLEMENTATION
5.1 PRODUCT
5.2 PLACE
5.3 PRICE
5.4 PROMOTION
5.5 PEOPLE
5.6 PROCESS
5.7 PHYSICAL EVIDENCE
6.FINANCIAL SUMMARY

1. EXECUTIVE SUMMARY:

FAASO’S. Feast on The Run… is a fast food chain in Pune that takes great pride in
serving the janta of today exotically tasting kebabs, kebab wraps, curries and rice platters.
This janta who has very little time to sit back and have a leisure pet-puja is more than happy
with FAASO’S that delivers quick service of quality Indian fast food at affordable prices.

Around 6 years back Mr. Jaideep Burman, a software engineer and a management graduate
was so fascinated by a restaurant named “FASOS” somewhere in U.S. that he decided to open
“FAASO’S” in India. After 3 years of Faaso’s success, Mr. Jaideep Burman sold his business
to his friend Mr. Siddharth Joshi and is now settled in the U.S.

In today’s competitive world, Faaso’s with its 8 outlets strategically located in Pune city is
gradually making its place in the fast food retail industry. Faaso’s seldom takes part in any
marketing activities and thus, this marketing plan has been prepared, particularly keeping in
mind the 3 year old Faaso’s outlet at Hinjewadi.

1.1OBJECTIVES:

 To establish a presence as a successful local fast food outlets and gain a market share
in Indian fast food industry.

 To make Faaso’s the 1st choice for grabbing a bite while on the run to colleges, offices
or simply to savour the delicacies of the Indian Kababs.

1.2 VISION:
To make Faaso’s the most successful Indian fast food outlet in India catering to the needs of
the dynamic and fast paced, young population of India. The main focus here being able to
serve quickly, high-quality food at a great value.

2. SITUATION ANALYSIS and SWOT:

Today, Faaso’s has 8 outlets in Pune city- two at Aundh and one each in Kalyani Nagar,
Model Colony, Baner, Kothrud & Hinjewadi (2 of them being franchisees- Baner and
Kothrud) with the main outlet at Aundh grossing a sales of 48 Lakhs per annum and the
Hinjewadi outlet grossing a sales of 30 Lakhs per annum.

2.1 Strengths:

 Faaso’s Hinjewadi outlet is strategically located with three IT giants –Cognizant,

Wipro, Infosys and two graduation and post- graduation colleges – Symbiosis
Infotech campus, I2 IT in close proximity.

 Faasos’s lives up to its tagline “Feast On The Run” and delivers a quick service just to
see a customer smile.

 Faaso’s has to its pocket a variety of kababs and kabab wraps, parathas and rice
combos, cutlets etc., so as to keep the customer excited to try out something new each
time.
  Faaso’s has carefully priced its products, so as to cater to all the income groups
present in the area, especially the student crowd.
2.2 Weaknesses:

 The organizational structure of Faaso’s is pretty much simple with one owner – Mr.
Siddharth Joshi, two manager heads – Mr. Ganesh and Mr. Bishwajeet and rest being
one outlet manager, four cooks and three to four delivery boys per outlet. There are
about 11 personnel for warehouse operations at Aundh. Since the workforce is so less,
especially the management force, the opportunity to manage the resources and sharing
the management burden is lost.

 Faaso’s changes its prices only once in two years, due to which large price
fluctuations in the market lead to high amount of expenditures and low profits.

 Low levels of cleanliness and hygiene will always be a cause of worry for the kabab
lovers.
2.3 Opportunities:

 Diversify into other fast food preparations like the Chinese (since there is no proper
Chinese restaurant in this area), introduce salads as a healthy option, add the aroma of
coffee to the menu.

 As most sales come from deliveries, proper management of deliveries can decrease
the amount of expenditures like salary to delivery boys, petrol bills etc., thus
increasing the margin of profit.

 “IF” high hygiene and cleanliness is maintained, the customers will choose Faaso’s
over its local competitors and the recent food poisoning scene in Symbiosis gives an
opportunity to for the same.

2.4 Threats:

 The thele- walas, alongside the colleges and IT companies, the bakery- Cakes and
Bakes just adjacent to the outlet and the new restaurant Mudra at Hinjewadi Chowk
has pulled down the sales of the Hinjewadi outlet by ~ 10 %.

 The recent food poisoning mishap at Symbiosis campus has alerted the students and
also some of the IT crowd in consuming outside food.

 The youngsters today are becoming more and more health conscious. Keeping this in
view, the kababs and deep fried cutlets may soon become out of place.

3. BUSINESS OBJECTIVES IN TERMS OF SALES AND PROFITS:

Faaso’s as such does not anticipate or set target sales or profit figures, since the turnout of the
customers is highly fluctuating and depends upon the mood of the customer and availability
of time.

4. MARKET ANAYSIS SUMMARY:

Consumer expenditures for fast food in India rose in past few months, followed by the
recovery of Indian economy. The increasing number of new establishments such as fast food
franchises, fancy restaurants and gourmet bakeries in India has shown a significant growth in
this sector. This sector is growing fast enough due to more and more hectic schedules of the
young workforce and more and more students staying outside their home/ hometown for their
graduation/post graduation. Thus people of age group range 18 – 35 years are the main target
market for a fast food restaurant.

4.1 INDUSTRIAL ANALYSIS

The fast food industry is the fastest growing sector in the food industry today. In India the
emergence of nuclear family particularly in the urban area, exposure to global media and
western cuisine and increasing number of females joining the workforce has changed the
eating trends in the country.

With the revival of consumer spending, the Indian fast food industry (values Rs 3,000 Crore)
is expected to see addition of 70-100 new outlets this year (2010) against 30-50 outlets in
2009, as reported by Business Standard. The intensive focus on the increasing number of
stores in 2010 is based on analyst reports showing that franchise driven Indian fast food
restaurant industry sales grew at a rate of 7%-20% in last one year (2009) on account of
reasonable value meals and price points.

4.2 COMPETITOR ANALYSIS:

The sales of the Hinjewadi outlet has been affected by ~ 10 % due various thele-walas
coming up near the colleges and IT offices, other fast food joints such as Cakes n’ Bakes,
Mudra restaurant, Mc. Donald’s, Dominos, Cafe Coffee Day etc put up at various locations in
Hinjewadi.

4.2.1 Thele-walas: Customers can choose from a wide range of products, starting from the
chai to vada-pavs to maggi and omelette, with a minimum price of Rs. 5 to a maximum of
Rs. 35. Moreover, most of them also keep cigarette packs. So people who wish to smoke and
grab a bite prefer these thele-walas. One disadvantage they carry is the lack of hygiene.
4.2.2 Cakes and Bakes: Cakes and Bakes located just adjacent to Faaso’s offers a range of
products, which include cakes, pastries, puffs, momos, wraps, chips etc. The quality and taste
of the items sold is not as good as it seems to be but nevertheless, it poses competition to
Faaso’s w.r.t wraps.

4.2.3 Mudra Restaurant: Located near the Hinjewadi chowk, the newly renovated Mudra
restaurant provides a whole range of veg and non veg snacks and also full-fledged meals.
They also offer free home delivery in and around Hinjewadi area.

4.2.4 Mc. Donald’s: Mc Donald’s known for its pocket friendly and snacky burgers. They
also offer one veg and one non veg wrap. Their fries are also quite popular among the youth.
One disadvantage is that they have limited options as compared to other fast food joints. But
one advantage is that hygiene conditions are well maintained in this franchisee and people
can hang about in here.

4.2.5 Domino's Pizza: Domino's Pizza outlet in the Hinjewadi chowk is also an important
compitotor for Faaso’s. Domino’s offers varities of pizzas in different sizes to suite the pocket
of the customers. Also people get large numbers of combos to chose. Their chocolate
preparation “Choco Lava” is also very famous among the customers.

4.3 SEGMNETATION TARGETING POSITIONING STRATEGIES:

4.3.1 Segmentation strategy: The primary market segment for the Hinjewadi Faaso’s outlet
is the student crowd here in Hinjewadi. This is because most students don’t feel like having
food in the college cafeteria and also they have a knack for kababs and wraps as in general.
Also students don’t wish to go till Mc. Donald’s or Dominos which is comparatively far off
than Faaso’s.

The secondary market segment for the Hinjewadi Faaso’s outlet is the IT crowd, secondary
because they already have some or the other tie ups with caterers to provide them something
feasty. They basically flock around the thele-walas as they also provide cigarettes.

Lastly, the residents of Hinjewadi and Wakad contribute to the market segment that Faaso’s
caters.
4.3.2 Targeting strategy: Faaso’s intends to cater to the bulk of teenagers and youngsters in
Pune. They have chosen this group for several important reasons. It is their goal to be "the
extraordinary fast food place" and they believe that the age group from 15 to 25 is the
primary age where brand building efforts could take place. They are on limited or fixed
incomes and seek a value/price relationship that will not stretch their budgets.

Their secondary target is between the ages of 25 and 35, who are again on the run to office or
have very short breaks or are running home ( a long way to the city) . They are more flexible
in budgets and seek more than a value/price relationship.
One targeting strategy that Faaso’s can use is by promoting themselves in colleges by
circulating pamphlets or offering some student discounts or participating in student fests. To
target the IT professionals, Faaso’s can actually give them discount coupons or tie up with the
office management to cater them whenever there is a small party or get-togethers in office
premises itself ( these are more prevalent in IT sector).

4.3.3 Positioning strategy: The main focus is to increase customer awareness in the
surrounding community i.e Hinjewadi and Wakad and let people know what their primary
objective is. Their tagline “Feast on The Run” actually holds true in most cases. But
continuing this image is rather a tough job. They will need to maintain the price of their
products fairly, keep their standards high, and execute the concept so that “word-of-mouth” is
the strongest marketing tool.

5. MARKETING STRATEGY: OBJECTIVES AND IMPLEMENTATION

5.1 PRODUCT:

What Faaso’s already offers.........

  Faaso’s offers 10 different types of kababs – chunks of paneer, chicken,
mutton or fish to choose from, all marinated in exotic spices and grilled in
charcoal barbeque.
 Faaso’s over the years has experimented with value addition to the barbequed
succulent kababs and today has 24, and growing, varieties of kebab wraps -
veg and non-veg - all incredibly succulent and delicious.
 Faaso’s offers a wide range of meat and vegetables in various shapes, sizes
and marinades, covered with breadcrumbs and deep fried, called fries and
cutlets.
 Faaso’s, also came up with stuffed veg and non -veg parathas which is fast
gaining popularity among the student crowd.
 Faaso’s has recently added to its menu some delicious curries and rice platters
for the few people, mainly the student crowd who wish to just hang around
and have a fun meal after a day’s hectic schedule.
 Faaso’s understands its customers and has come up with four, value for money
combos. Faaso’s pays about 5 Rs. from its pocket for these combos. The
choice of combinations for introducing combos is however restricted my terms
and conditions set by coke.

What Faaso’s could ALSO offer.........

 The youngsters today have become somewhat health conscious and hence
demand a more healthy platters. Faaso’s thus could as well offer tossed salads
or baked/steamed products and fruit juices etc.
 Since cold coffee is in vogue among youngsters, Faaso’s may choose to
introduce it too.
 Faaso’s should adopt the use of healthier and trans free oil for their
preparations.
 Faaso’s may as well follow the Subway routine, allowing the customers to
choose the sauces like mayonnaise, chilly sauce etc of their choice to be used
in preparation of its most fast moving products – wraps.

5.2 PLACE

What Faaso’s offers:

 Faaso’s is located in close proximity of many IT companies like Cognizant,

Infosys, Wipro, Tata Technologies ,Starnet and educational institutes like
Symbiosis and I2IT .
 Also there are 2 ATMs and an Archie’s shop near the outlet. So any one
coming to withdraw money or buying gifts is easily tempted to have
something there.
 Major portion of sales comes from delivery orders .These delivery orders
can be placed through telephone or through internet on the website
www.mealaroundme.com. Faaso’s of Hinjewadi, delivers to the customers
 of Hinjewadi as well as Wakad. The delivery time varies from 20-30min.
The means of transport being scooters.

What Faaso’s could also do:

 There are no recommendations in this regard.

5.3 PRICE

The pricing strategy that Faaso’s currently follows:

 Faaso’s Hinjewadi outlet makes about 2-2.5 lakh sales per month. In which
about 80-85 % goes for the expenditures like raw materials, salaries and
wages, over heads both admin and sales. Thus Faaso’s makes sure that its
prices are always 15- 20% above the expenditures they incur.
 Faaso’s revises its prices once in 18 or 24 months, whichever fulfils the need
of keeping up with the profit margins.
 The price of most products are economically viable and is friendly with almost
all income groups in the area especially the student crowd as almost 70% of
the sales are made to satisfy the needs of the student crowd. The wraps are
priced at an average of Rs. 50, kabas – Rs. 80, fries and cutlets – Rs. 40.

The pricing strategy that Faaso’s may follow:

 Since 2 years span sees a lot of commodity market fluctuations, and sometimes
very extreme, Faaso’s should adopt changing its prices a little more frequently if
not wanting to adopt a new product which can be offered on same price and
avoiding the product that causes high expenditures.
 Faaso’s may also adopt changing the prices in batches if not all at once. It is also
recommended that Faaso’s also decrease the prices of a particular product if the
sales of it are too high and can compensate for extra expenditure or if the price
of raw materials for that product falls invariably.

5.4 PROMOTION

What Faaso’s already does...

 Faaso’s doesn’t actually spend much on promotional activities.

 Nevertheless, Faaso’s attracts customers by allowing them to pay through
coupon system. Faaso’s has tied up with Sodex passes and ticket restaurant.
 Recently they started offering discount coupons of Rs.25/- for INOX on
purchase of 600ml Coke. This is not its own promotional strategy but
coke’s. Nevertheless, gains an advantage since customers are tempted to buy
more to simply get these coupons.

What Faaso’s could ALSO do.........

  Faaso’s could put up stalls in college campuses of Symbiosis and I2IT
during fests etc.
 Faaso’s could give some seasonal discounts like on diwali, holi , Friendship
day etc
 From time to time they could come out with some scratch and win offers for
customers having order amounting more than Rs. 300.
 Faaso’s should upgrade its website, conduct recipe contests etc.

5.5 PEOPLE

Current personnel of Faaso’s:

 Currently there are 8 employees working in the Hinjewadi outlet with 1

manager, 4 cooks and 3 delivery boys. The cooks essentially trained so as to
keep the originality of dishes intact. The manager and delivery boys are also
trained to an extent in case of self outlets. While in the case of franchisee,
only the cooks are trained by Faaso’s management.
 If we see the overall organizational structure of Faaso’s (all outlets incl.),
personnel for management are very few. And hence, the burden of
management increases.

Customer expectation from personnel:

 Recruiting the right staff and training them appropriately in the delivery of
their service is essential if the organisation wants to obtain a form of
competitive advantage.
 The staff should therefore be trained so that they take orders, cook and deliver
efficiently.
 The personnel must be trained as to how they should behave or respond to the
customers ,the staff should always be enthusiastic and friendly jus as in the
case of Mc. Donald’s

5.6 PROCESS

 At present the Hinjewadi outlet has one oven,2 tawas and one refrigerator.
 Fasso’s can increase the number of ovens, barbeques in their kitchen so as to
speed up the preparation process and therefore speeding up delivery process.

5.7 PHYSICAL EVIDENCE

What was observed....

 The place is quite congested, as it is beside main road- noise, dust disturbs the
customers.
  The place is crowded in rush hours.
 No proper cleanliness as flies, mosquitoes are predominantly observed at the
tables.

What Faaso’s can implement...

 Change the seating arrangements so that there is enough space and also the
number of customers that can be accommodated is also more.
 Use of shade curtains on the side parallel to road so as to avoid dust and direct
sunlight, which also increases the ambience of the place.
 Proper cleanliness and hygiene must be maintained so that the customers are
taken into confidence that things like food poisoning etc do not happen when
feasting.

6. FINANCIAL SUMMARY

The above mentioned strategies and other probable implementations when distributed along a
time line starting from 2010 and ending in 2012, we have assumed will give about 25 %
growth to the monthly sales Faaso’s makes.

For 2010

1. INTRODUCE TEA, COFFEE, FRUIT JUICES, AND SALADS IN THE MENU.

2. USE OF HEALTHIER OILS AND INGREDIENTS IN MAKING OF THE DISHES
3. INCREASE AWARENESS BY MEANS OF PAMPHLETS
4. TRAINING OF STAFF TO RESPOND WELL TO THE CUSTOMERS
5. CALL FOR HYGIENE, CLEANLINESS AND DUST FREE ZONE

For 2011

1. TAKE PART IN THE STUDENT FESTS ETC IN COLLEGES

2. GIVE SEASONAL DISCOUNTS TO STUDENTS
3. COLLABORATE WITH IT COMPANIES TO BE THERE IN THEIR PARTY TIME
4. INTRODUCE VARIOUS COMBOS.
5. UPGRADE THE WEBSITE WWW.FAASO’S.COM

For 2012

1. INTRODUCE TAKING ORDERS ON WWW.FAASO’S.COM

2. ALLOW USERS OF WEBSITE TO SUBMIT THEIR FAVOURITE RECIPIES AND
KITCHEN TIPS (AS A CONTEST)
3. CONTINUE WITH PROMOTIONAL ACTIVITES OF PREVIOUS YEARS LIKE
COLLEGE FESTS, SEASONAL DISCOUNTS ETC
4. INTRODUCE CHINESE FAST FOOD IN THE MENU.

Sales in Rs. Lakhs

Forecasted years (25 % growth)
2009 2010 2011 2012
Monthly sales 2.5 3.125 3.907 4.884
Annual sales 30 37.5 46.884 58.608
Expenditure (80%) 24 30 37.507 46.886
Gross Profit 6 7.5 9.377 11.722

References
1. Interaction with Mr. Ganesh Gaikwad (managing head) on phone [
2. Interaction with Mr. Bishwajeet (managing head) in person [
3. Interaction with Hinjewadi outlet staff in person [
4. www.faasos.com