This document provides a marketing plan for a chain of Retail Fast Food Restaurants spread across the major cities and it is suburban areas in India. The business proposes to set up a chain of fast food restaurants to provide anytime light meals including breakfast, lunch and dinner at a moderately low price catering primarily to the middle-income segment of the country. It is proposed to be operational by May 2010 at six locations across India, which include Delhi, Mumbai, Chennai, Kolkata, Bangalore, and Pune. Each centre would have at least two outlets- one in the city proper and the other just on the outskirts of the city, preferably on the highways.
India is chosen for such an operation because it is an emerging economy and the retail fast food industry is highly underutilized in the country. The major cities of India have a predominantly middle income and low-income population. The food chains already present in the country are exorbitantly priced. Thus, it leaves a huge opening in the market. Moreover, there is very little or practically no competition from nationalized brands. The increasing desire of the youth to be attached to a nationwide brand name propels the probability of success of this plan. (Shane et al. 2004).
The marketing strategy will design in a manner that will be able to draw in more of the young customers. The form of the business would be a retailer-operated, consumer-controlled business. All the products would be attached to a single brand name called the “Hunger Crunch” which increases the consistency of the business. The promotional strategy would primarily focus on national morals and local tastes mixing the values attached to a nationwide brand name. To maximize the reach to the consumer base multiple media forms will be adopted to market the products. To increase the ease of accessibility of the products in addition to outlet sales the concept of doorstep delivery would also be introduced within the range of 10 kilometers free of delivery charges and with a low delivery cost above the specified range.
The business aims to cater to all fractions of the consumer base. The investment channels have been decided up on and the partners have agreed to dedicate a major sum of investments to marketing expenses. As the investments would be made in U.S. Dollars, the exchange rate between USD and Rupees, the national currency, would be a major advantage. At present, a total annual marketing budget has been set at $500000. This provides for a huge sum as considered in Rupees. This would be easily manageable, as most of the transactions would take place in the local currency. (Anderson & Wen-yeh 2006).
The business aims at providing high quality products at low prices catering to a huge consumer base capitalizing on the major openings in the market. The business would be set up across all the major cities in the country thus allowing the possibility of maximizing benefits. The introductory prices will be kept extremely low to attract a large number of customers. Thus for the first year the pressure of immediate sales will not be applied heavily. The first year sales target is set at $405000 for nationwide sales provided by 12 outlets spread across six cities. The business aims to instill the sense of a national brand into the minds of the customer. The primary fast food chains operating in Indian markets are international brands such as McDonald’s, KFC and Subway. The products of these brands are exorbitantly priced and they primarily cater to the premium class and to some extent the higher middle-income group. Due to reasonable pricing and incorporating local tastes, the business will be able to capture mass as well as the middle sect of the consumer base. Apart from that, proper promotion would build a strong brand value, which would attract the youth from the premium class as well.
Customer Analysis
The business aims at primarily targeting young customers whose age ranges from 15 years to 35 years. They are usually college going youth and young working professionals. Moreover, this segment consists of young parents with kids aged from five to 10 years who like to frequent fast food outlets. The rationale for choosing such a customer base comes from an in depth culture study of major cities across India. It has been found that most of the young people in the cities are constantly on the go and prefer to have light meals during working hours. They want their food to be easily accessible at a moderately low price. They prefer to save time on food breaks but at the same time stress on quality food habits. People above the age of 40 generally prefer home cooked food.
Thus, they would not be included in the primary customer base.
To catch the attention of the youth major forms of marketing activities would include surveys conducted at colleges and various professional companies, getting their opinion about the brand. Promotional activities would include efforts to inform them about the brand on a much more personal level. Sponsoring road shows, offering introductory benefits and ensuring that the distribution channels reach the target customer base efficiently could help in gaining the initial edge over market competitors. Multiple media forms particularly Television, Radio and the Internet would be extensively utilized for promotional initiatives. Efficient feedback networks also could be designed to gain an understanding of customer perspectives in order to adapt the business to customer needs. (Slater & Olson 2001).
Analysis of the customer culture in India reveals that they possess ideologies rooted in strong national sentiments along with preferences for local tastes. To some extent, the youth consumer base may be considered to exhibit a conservative attitude. This challenge needs to be utilized in a proper way and should be taken into consideration while designing promotional initiatives.
Another important reason for targeting the youth segment is that they form 41.05% of the total population of India and this imminent predominance in certain to last until 2050 according to various surveys. The majority of the young population in the cities economically belongs to the middle-income group or the lower-middle income sect. Thus, this segment forms the primary target consumer base.
Competitor Analysis
The top three competitors for Indian markets have been identified as KFC, McDonald’s, and Subway. All three brands are established international food chains with a considerable presence in the Indian markets.
Kentucky Fried Chicken popularly known as KFC started its Indian operations in India in 1995. From then onwards it has gained immense popularity across all city populations. It is one of the most popular brands under which Yum Restaurants International (YRI). It has more than 28 outlets spread allover the nation. The most important strength is its quality management efforts and strategic collaborators. It has had its own share of controversies attached to it but it has overcome those difficulties through efficient marketing strategies. However, it does not cater to the local tastes largely. It is exorbitantly priced too. It primarily focuses on chicken products and lacks quality products for the vegetarian populations. These deficiencies can be taken care of and should be utilized for the success of this business. (Eng, 2007).
MacDonald’s is one of the most easily internationally recognizable brands, which started its operation way back in 1996 in India. It has gained a strong foothold in India with 160 outlets spread over the country. It is one of the leading fast food chains in the country and follows a franchise model operation. It also has strategic partnerships with a few beverage providers. Its major strength is ease of accessibility of products in the cities in which operates. It also caters to the vegetarian section of the population with a special vegetarian product line. However, the chain is not equally distributed all over the country. The brand has extensive presence in some big cities but other cities are neglected. Although, in order to attract new customers and increase its customer base it has introduced initiatives such as “Happy Price Menu”, it is too highly priced for normal products.
Subway restaurants are also an international sandwich franchise, which started its operation in India in December 2001. It has more than 80 outlets spread across the country primarily serving various kinds of sandwiches. Its major strength is its quality of products and service. However, this brand does not cater to the mass segment and primarily focuses on the multiplex crowd. (Shervani & Frazier 2007).
In addition, there would be stiff competition from local fast food shops and roadside fast food outlets, which are quite naturally occurring and have immense popularity among the mass.
Company Analysis
The business is set to operate under a single brand name called “Hunger Crunch” all across India. After analyzing the customer needs, demands, attitudes and trends it has been observed that the customers vary in some respects but are similar in numerous facets. They require good quality products at an affordable price. They prefer to enjoy their meals and family outings incorporate a major role for food. Awareness about health in the target population is also a factor, which needs to be considered when creating a brand image for the business. India is a country with diverse cultures and food habits. Some religions practiced in India also restrict the consumption of non-vegetarian food. It also has been evaluated that for regular food consumption customers generally stick to local tastes but are also liberal at times towards different preparations. Thus, the brand wants to project an image, which utilizes the national sentiments, which unites the nation and instills a sense that this is a brand, which is closer to the home and to the heart. (Pressey & Selassie 2007).
Promotional activities would be designed to create such a brand image and the reach to the customers would be on a much more personal level. Marketing initiatives would be carefully designed to meet the requirement and demands of the customer.
Community/Climate Analysis
Apart from competitors, there are different aspects of the community, which need special attention for smooth operations of the business. First proper licensing issues must be sorted out from legal organizations. Adequate suppliers must be identified and ethical considerations must be made. Poultry suppliers and animal rearing facilities from which raw materials would be purchased should be meeting all required norms. A healthy relationship must be fostered with society by taking charitable initiatives for the betterment of society. Supplier channels must be properly screened and collaborators should be identified. Major reputed beverage suppliers could be approached for collaborations in order to provide a complete food experience to the customers.
Overall, the message that the business meets all legal and ethical standards must be conveyed to the society to keep away from controversies faced by other similar brands in the market. (Katsikeas & Theodosiou 2006).
Marketing Mix
Product
The product line offered by the business will offer huge variety in order to cater to the different tastes of each segment of the diversely cultured population of the target consumer base. It has been identified that the average Indian youth prefers to stick to local tastes on a daily basis but also visits fast food restaurants for a change of taste. Thus to cater to the daily needs as well as the change of taste needs of the customer a range of delicacies from all over the country would be included in the product line. Innovative chefs would be hired to incorporate new and original recipes into the menu list. Further, the taste trends created by competitors such as MacDonald’s, KFC, Subway etc will also be taken care of and internationalized snacks like burgers, sandwiches etc would also provide to the customer.
The product lines would be designed so that it has something in it for every one. It would cater separately to the needs of both the vegetarian as well as non-vegetarian customers. A special low-fat category would be introduced for the health conscious customer. However, all products would be rich in nutrition as well as taste. (Pressey & Selassie 2007).
Price
The pricing strategy adopted initially would specifically keep the economic conditions of the common person in mind. Introductory discounts, benefits and offers would be initiated on a wide range of products. The general pricing of products would be much less than the primary competitors to break into the market successfully and to draw customers.
The profit margins are not kept too high, as it would result in increased prices. However, no compromise on quality would be made. The products would be priced at appropriate costs with practically very little gains. Packages would be designed according to the tastes of the customer and substantial discounts would be offered on packages.
A dual pricing strategy may also be introduced some time following the launch of the products. After assessing the success of the products, a cheaper variant of the most popular product may be launched. This would increase sales as well as enhance the popularity of the product.
Place
There will be 12 outlets set up initially for primary distribution across major cities in India. The major cities selected for primary set up are Delhi, Mumbai, Kolkata, Chennai, Bangalore and Pune. There will be two outlets in each city. The first outlet will be located at the heart of the city so that it could be used to cater to customers from all corners of the city. A strategic location will be chosen which has at least one college, various multinational corporate offices and recreational centers all at reachable distances. The location for the second outlet will be selected just outside the city limits and preferably on a highway. This outlet will be able to cater to the customers belonging to the suburban areas. In addition, this outlet will also serve to the people diving out of or into the city.
Special services such as doorstep delivery would be introduced to ease the accessibility of the product and orders would be taken over the telephone or the internet. Such facilities would be provided free of cost for 10 kilometers and with a minimal carrying cost for a range over that. This will further increase the popularity of the brand. (Pettijohn 2001).
Promotion
When looking at the promotional aspect of the business the target audience must be first identified and then acted up on. The target audience for the promotional activities in this business is identified as city and suburban population aged between 15 to 35 years. Promotional activities would aim at generating informed brand awareness and a strong brand value. The cultural attitudes, national sentiments, and local tastes must be considered while creating promotional initiatives. The promotional message should be clear, understandable, and comprehensive. It would be advisable to inform the potential customers that this brand is completely ethical, legal and will take care of their needs and demands. It should be so designed that the reach and brand retention are maximized. The primary means of promotion would be television, radio and the Internet. The brand would have its own centralized website with information about products, restaurant locators, contacting information and order receiving capabilities. Television and radio programs to be sponsored should be carefully selected. Television/Radio channels and programs popular among the youth would be approached. The print media would also be employed to some extent. The magazines and daily segments of the newspapers intended for use by the younger generation would be utilized. Apart from these conventional modes of promotion, sponsorship deals in terms of college festivals, youth music festivals, road shows could also be undertaken to expand the reach of the brand. The budgetary plans for the promotional programs should be efficiently managed. It should fit in comfortably as a part of the entire marketing budget. (Katsikeas & Theodosiou 2006).
Budget and Controls
The annual marketing budget decided for the first year is $500000. The marketing operations will be carried out in three phases. The first phase would last for three months. This phase will commence just prior to the launch of the brand. Promotional activities will be stressed upon in the initial period to generate brand awareness. Customer attitudes, trends, demands and requirements would be assessed in this phase. Feedback networks including surveys, onsite feedback gathering etc. will be emphasized on. In the second phase, during the next six months, promotional initiatives will be stepped up. Extensive brand promotion would be carried out to build up a brand value. At the same time, feedback networks would carry on as per set standards. In the third and final phase, lasting for the final three months, promotional costs will be cut down to increase the profit margins. In this phase, customer response, sales and effectiveness of various channels of distribution, promotion and supplies would be analyzed.
Conclusion
The objectives of gathering feedback are multifold. It feedback forms, online reporting mechanism and survey questionnaires will be designed very carefully so that the analysis of these forms reveals the extent of customer satisfaction, perception of product quality, thoughts about pricing. The results should also indicate the effectiveness of promotional and distributive networks. Internal inspection would also be carried out to assess performance standards. Key Performance Indicators such as sales figures, results obtained from onsite feedback, Internet Polls and various other surveys will be analyzed at regular intervals. Dissatisfactory results would call for immediate attention and issues would be reviewed by the board of directors and marketing experts. (Pettijohn 2001).
References
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