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Acknowledgement
A successful project can never be prepared by the single effort or the person
to whom project is assigned , but it also demand the help and guardianship
of some conversant person who helps in the undersigned actively or
passively in the completion of successful project.
With great pleasure we express our gratitude to Dr. Nishith Bhat, and other
faculties as without their help this would not have been completed. They
have given their precious suggestions and constructive guidance which have
been indispensable in the completion of this project work.
I would also like to thank to my classmates for their help. They have
supported me in this endeavor, and appreciated me in my efforts during my
project. Last but not the least I would also like to thank all the respondents.
Who directly and indirectly supported to me during my project work, without
the help of whom this project would not have been possible.
Abstract
The young consumers form an important segment for the marketers. As
members of a highly consumption oriented society, youngsters have become
increasingly aware of new products and brands. It is well known that organized
fast food services have already made their presence felt in a big way in almost
all the major cities of India. The fast food outlets attract customers with their
unique blend of tasty food, music, aroma, colorful images and other aesthetic
appeals. Hence, these fast food services try to lure its customers through
sensory appeals. Customers belonging to different age groups flock towards
these outlets to satisfy their taste buds and hedonistic needs. Out of all the age
groups, the youngsters are considered to be the primary target by the fast food
service industry.
Fast food service is a very fast growing industry in the world as well as in India
especially in urban areas. However, not much research literature is available on
fast food preferences of consumers especially young consumers in India (Goyal
and Singh, 2007). Hence, this study attempts to understand the fast food
consumption behavior and perceptions of young consumers towards organized
fast food outlets.
The fast food industry in India has evolved with the changing lifestyles of the
young Indian population. The sheer variety of gastronomic preferences
across the regions, hereditary or acquired, has brought about different
modules across the country. It may take some time for the local enterprise to
mature to the level of international players in the field.
Many of the traditional dishes have been adapted to suit the emerging fast
food outlets. The basic adaptation is to decrease the processing and serving
time. For example, the typical meal which called for being served by an ever
alert attendant is now offered as a Mini-Meal across the counter. In its
traditional version, a plate or a banana leaf was first laid down on the floor or
table. Several helpers then waited on the diner, doling out different dishes
and refilling as they got over in the plate.
In the fast food version, a plate already arranged with a variety of cooked
vegetables and curries along with a fixed quantity of rice and Indian
flatbreads is handed out across the counter against a prepaid coupon. The
curries and breads vary depending on the region and local preferences. The
higher priced ones may add a sweet to the combination. Refills are generally
not offered.
The diversity of Indian cuisine poses logistical problems when it comes to
handling. Hence it is common to serve different cuisines at different counters
within the same premises. Presence of a large vegetarian population, who
eschew non-vegetarian food, has given rise to outlets which exclusively
serve vegetarian fast food. Also, different variety of food may be served
depending on the times of the day. Beverages such coffee, tea, soft drinks
and fruit juices may also be served in such outlets. Some outlets may
additionally have specially designed counters for ice-cream, chaats etc.
Tall tables, usually of stainless steel, where one can eat while standing
Most of the fast food outlets in India are stand alone establishment, few of them
having more than one branch.
Background
McDonalds opens its first drive-thru restaurant on Mehsana Highway Expands
their footprint in Gujarat by adding the 22 nod restaurant Mehsana, May, 2014:
Hard castle Restaurants Private Limited (HRPL), a Master Franchisee for west &
south India operations of McDonalds Restaurants and a subsidiary of the BSE
listed West life Development Limited (BSE: 505533), today announced the launch of
its first restaurant on Mehsana Highway. Mehsana is one of the most prosperous and
busy industrial areas of Gujarat with a rich cultural history. McDonalds Family
Restaurant, the worlds leading food service retailer will open its doors on the
Mehsana highway for the customers to indulge their taste buds with McDonalds
iconic products specially created for the Indian palate including the popular
McAdoo Tike-h, mcspicy Pander, besides our world famous French Fries and the
newest addition in our menu mcpaneer Royale. McDonalds has added to its
network of 22 restaurants in Gujarat. Situated on Mehsana highway, Plot No.2,
Revenue survey No.-34, behind Essay Petrol Pump, Village Jabalpur the restaurant
will employ approximately 60 people zlocally and will have a seating capacity of 120
people. The ground floor will seat 48 people and the first floor will have over 62
seats. It is spread over an area of 2600 Sq Ft on ground floor & 2000 Sq Ft on first
floor, in addition to 600 Sq Ft of open seating. The drive-thru restaurant will
welcome the guests travelling on the highway for 24 hours. Commenting on the
opening of the restaurant, Mr. Ramjet Palliate, Vice President - Business Operations,
Hard castle Restaurants Pvt. Ltd. Said, McDonalds has grown from strength to
strength in Gujarat in last 10 years. We started working with the farmers of
Mehsana in Gujarat well over 6 years, to cultivate the Shaped potato variety to be
used for our 100% vegetarian Fries. McDonalds India joined hands with McCain
Foods Pvt. Ltd to impart training on new agri-technology; enabling farmers to
produce better quality and higher yields of potatoes. We believe in empowering
farmers with latest farming know-how and equipment.
Products
Cox and Foster 1985 observed major shift in the trend of consumers eating
out in a restaurant and making use of the convenient options in the mid
1980s.
A similar study by Kant and Graubard 2004 had stated that between 1987
and 2000, the number of meals that a consumer has had at Fast food
restaurants have increased by 11% per week.
Changes in Lifestyle
With increasing work pressure, individuals, barely get time for a peaceful
talk. Therefore there is plenty of room for fast food restaurants that come up
with innovative ambience, making one feel at home, by creating a peaceful
atmosphere and serving quick and tasty food.
The use of public space expresses an individuals values for the culture,
societal norms, rituals and festivals.Such public spaces are meant to increase
the Social interface of an individual thereby enhancing the Social bondings.
Many of the conventional relationships are built and nurtured around
informally.
As per the research report of Indian Fast Food Market Analysis, the Indian
Fast Food Industry is expected to grow at a CAGR of about 34% by 2014.
With FDI there will be tremendous potential for the Food industry in the
domestic market as well. Foreign Investors have anticipated this substantial
growth and have their plans to enter the domestic markets.
big hit among fast food lovers, resulting in the entry of many leading players
into this segment.
As per an ongoing study on the Indian fast food industry, there has been a
major shift in food habits in the metropolitan cities encouraging the
manufacturers to introduce innovative flavors in noodles and pastas to suit
Indian consumers. Further, the enhancement of fried instant noodles
condiment, good performance of non-fried noodles, and the subsequent
release of coarse cereal noodles are some of the main trends currently
prevailing in the Indian market. About 86 per cent of households prefer to
consume instant food over traditional food due to steep rise in dual income
level & standard of living, convenience and influence of Western countries.
As a result, fast food menus comprising pizza, burger, sandwiches, etc are
gaining wider acceptance from the Indian consumers.
Franchise outlets
On the strategic front, it has been found that the franchising concept in India
is continuously rising, with the increase in the number of international
players opening more franchise outlets in India. The increasing revenue
figures from franchise outlets encourage the players to opt for the concept.
As a result, many international fast food giants are opening up their franchise
outlets in India to grab the huge untapped potential in a fast emerging
market. In a recent development, Nando, South Africa-based AfroPortuguese, global restaurant chain is starting up around 35 outlets by 2013
in various parts of India through the franchise route. The company expects to
expand enormously in the northern parts of India.
food from the world. Further, studies indicate a radical change in the
consumption patterns of Indian consumers, who have traditionally been
known for their price sensitiveness.
Middle-class families as well as the youth prefer to have a burger worth ` 25
rather than that worth ` 50-75. This reveals that despite looking for taste and
brand, consumers in India are still inclined to low-price and health issues. As
per a survey conducted in 2010, nearly 80 per cent of the fast food
consumers expect the fast food owners to implement required measures for
reducing the harmful impact of fast food. To tackle this issue, these owners
have adopted
innovative cooking styles, such as baking and grilling that retain the flavor of
food and also require lesser quantity of oil. Besides, major retailers in this
area are now providing all necessary information like ingredients, nutrition
and fat contained on the product pack.
These measures have helped Indian fast food consumers select healthy and
nutritious meal as well as protect them from the dangerous effect of
unhealthy fast food.
Chapter 2
Government inventiveness
As far as the role of government is concerned, various initiatives in the
recent past have resulted in theentry of many international Fast Food
Retailers in the country. With the economic liberalization in 1991,nearly all
tariff and non-tariff barriers have been removed or minimized from the Indian
boundary that hashelped many retailers to enter the growing Indian fast food
industry.As per the Food Safety and Standards Authority of India, the new
rules and standards will make itmandatory for street food vendors to register
with state health departments that are into policing hygiene.It requires the
food authority to issue licenses to food vendors only after ensuring that their
products aresafe and hygienic. Vendors with products that are found
unhygienic or unsafe will face monetarypenalties. Moreover, user friendly
and IT-enabled licensing system will be created to improve governanceand
compliance.
To try to ensure that India has the capacity to implement the new law, the
government has increased thenumber of state laboratories for testing
eatables and appointed more food safety officers to check foodquality &
hygiene instead of merely monitoring adulteration.
Besides, the Indian government has also directed state governments to
prohibit sales of fast food andcarbonated drinks on school premises & check
out all such items that lead to unhealthy eating fromcafeteria within a 1,500
feet radius of schools.In addition, the countrys regulators have ordered food
chains to provide product nutritional labeling at thetime of sale, so that
customers can know about what they are eating and what effect it can have
on theirhealth. This step is a result of various studies that have shown that a
typical fast food has very highdensity that causes people to eat more than
they usually require, causing people to fall ill with manyhealth-related
problems like obesity, diabetes and heart diseases.
Shortfalls
India has witnessed a massive increase in the consumption of fast food over
the past few years. Indeed, the country has come out as one of the rapidly
growing fast food markets in the world. Although the country offers lucrative
opportunities to new entrants due to rapid urbanization and changing
lifestyles, there still exist some roadblocks, which may hinder the exponential
growth route of this industry in future. Competition from local street vendors
remains the biggest threat to the growth of the fast food industry in the
country. There is an increase in raw materials cost and fuel charges, which is
causing a lot of strain to the players in this segment. Lack of proper
infrastructural facilities, with respect to roads and electricity, has also
hampered the development of fast food market in India. Besides, the
industry will have to tackle a number of roadblocks including the rising
consumer concerns regarding obesity and health consciousness to maintain
the ongoing trend.
Major players:
McDonalds Formed in 1954,mcd brand is the leading global food service
retailer with more than30,000 local restaurants serving nearly 50million
people in more than 120 countries QUICK FACTS mcd was started as a drivein-restaurant by two brothers, Richard and Maurice McDonald in californiums
in the year 1937
Ray Kroc, distributor of milk shake machine, expressed interest in the
business, and he finalized a deal for franchising with the McDonalds brother
in 1954 He established a franchising company, the McDonald system inc. In
1961,he bought out the McDonald brothers share for $2.7 million and
changed the name of the company to McDonalds Corporation
In India 1996 - First restaurant opens in India, at Basant Lok ,Vihar, New
Delhi. McDonalds India is a 50 50 JV partnership between McDonalds
Corporation (U.S.A) and two Indian businessman Amit Jatia (Hardcastle
Restaurants Private Limited, Mumbai)and Vikram Bakshi (Connaught Plaza
Restaurants Private Limited, Delhi). Two separate operations in Northern &
Western India.
Dominos operations Indian operations are ranked number one for the past 3
years. Delivers an average of 1 million pizzas per day. Over the last 2
years, they opened stores in 15 new cities. The company operates in three
segments:
The company operates in three segments: Domestic stores : Uses its
company-owned stores as a testing ground for new products and
technologies which may then be passed onto franchisees. Generates
income from company-owned stores in the form of store profits.
Domestic supply chain : Vertically integrated supply system automatic
delivery of raw materials cuts out a lot of the "back of-store" activities.
Helps in keeping down food costs International : consists of 3,469
franchised stores outside the United States. operates six supply chain
centers which manufacture dough and distribute food and supplies.
International segment accounts for about 41% of Dominos store sales
worldwide.
Procurement of raw materials Raw materials like wheat, baby corn,
tomatoes and spices are got, out of which wheat was bought in from
jalandhar and then sent to the commissaries in refrigerated trucks. 4
commissaries (Regional Centralized Facilities) Delhi Bangalore Kolkata
Mumbai
Distribution Pizza dough processed from the wheat is then sent to the retail
outlets again in refrigerated trucks. Logistics requirement for sending frozen
foods, at a temperature of 18:C and of refrigerated trucks in which food is
sent at a temperature range of between 1 to 4:C.
Retail Outlets Regular stores Super stores : High traffic, More counters
Express stores : those where people were expected to walk in and order
rather than ask for home delivery.
Outsourcing ITEM PLACE Wheat Jalandhar Cheese Karnal, Haryan
Tomatoes Bhubaneshwar Spice South India Baby Corn Nepal Exotic
Vegetables Sri Lanka Pepperoni Australia Jalapeno Spain
Kachi king
Dabeli masala, which is the main ingredient of the dish, is readily available in most of the
cities
all over India, sold under various brand names mainly manufactured and packed in Kutch.
The dabeli masala made from Mandvi andBhuj are preferred by people for their taste and
ethnicity. This dabeli masala is a dry-paste made from dried red-chillies, black-pepper powder,
dried coconut, salt, clove, cinnamon, coriander, cumin, turmeric, elachi, badiyan, black-salt, tejpatta and other garam masalas is a specially prepared masala. The debeli masala once made or
purchased from shops can be stored and used for over a period of six to twelve months.
Chutney is an essential part of almost all type of Indian cuisine and these type of chutneys
can be prepared in advance and stored and used for at least a fortnight. Now-a-days specially
preserved chutney packets are available also in shops in major cities of India and are exported
to other countries by some Indian food companies.
Sev referred above is a type of Indian farsan, which is readily available in farsan shops in all
over India and also in other countries, where it is being exported by companies
like Haldiram's and others.
Dabeli literally means "pressed" in Gujarati language.[1] It is said to be invented by one Keshavji
Gabha Chudasama alias Kesha Malam, resident of Mandvi, Kutch in the 1960s. When he started
business he sold a dabeli at one anna or six paisa. His shop is still there in Mandvi and business is
now carried by his next generations.[2]
Dabeli thus has its origin in Mandvi, a city of the Kutch region and even today dabeli masala made in
the city are said to be most authentic. The dabeli is also, therefore, known as Kachchhi dabeli or
Kutchi dabeli taking its cue from the region of its origin. Bhuj and Nakhatrana towns of Kutch are
also known for authentic dabeli apart from Mandv
Kutchi King is the success story of the dream of a young entrepreneur, Mr. Vipul
Patel who shifted track from studying chemical engineering to a trend setter in
the food fraternity His hard work and perseverance in polishing his culinary
skills and turning the desi Gujju burger into the most famous Dabeli is the
essence of his experience and creative innovation
Dabeli literally means pressed in gujarati language. It is a spicy snack made
by mixing boiled potatoes with a dabeli masala and putting the mixture between
pav (burger bun) and served with chutneys made from tamarind, date, garlic,
red chilies, etc. and garnished with pomegranate and roasted peanuts
and Kutchi King is the benchmark between tradition and modernity. Not only
Dabeli but Vadapav also served hot at these outlets are truly amazing.
The Kutchi King group in their professional approach towards enhancement of
business has set up a training centre in Thaltej where the prospective
franchisees and their staff has to individually attend a training so that they can
run the outlet smoothly once a franchise is allocated to them.
As a standardization process, a bakery unit has been setup at Narol so that
every Kutchi King outlet in and around Gujarat gets the best quality dabeli buns
manufactured as per the companys standard recipe.Smt. Patel herself handles
the central kitchen located at Sola Area in Ahmedabad and keeps a strict vigil on
the quality of the masalas and gravies that are manufactured for the use at the
outlets.A central store located in Ahmedabad is always ready for the support to
the company and the franchisee stores which ensures smooth functioning of the
Kutchi King outlets.
Having captured the entire Gujarat market, the brand now intends expanding
their reach in entire India. Continuously a dedicated team of professionals is
exploring the possibilities of intelligent use of ingredients, techniques &
technology and enhancing the products served at the outlets.
LITERATURE REVIEW
Researchers in the past have tried to understand the perception of consumers
and their consumption behavior towards fast food services offered in different
parts of the world. Dunn, Mohr, Wilson and Wittert (2008) examined the
variables influencing fast food consumption in an Australian sample.
Findings suggested that convenience, satisfaction, family and friends, busy life
styles, cravings for fast food, not knowing how to cook, working long hours and
eating alone influenced the fast food consumption among the respondents.
Akbay, Tiryaki and Gul (2007) investigated the relationship between Turkish
Restaurants, Ice Cream Parlours, Pastry Shops and Food Processing Plants in
India. The chain with over 60outlets operating in five states successfully
caters to the Indian palate of over 50,000guest everyday for over 70 years.
Wimpy was another fast food provider besides Nirulas in Indian market.
Wimpy was the only multinational fast food outlet in India before 1990s with
one outlet in New Delhi. In the initial years of its operations, Wimpy used to
be visited by foreigners in India. Indians were occasional visitors. Today
Wimpy has 8 outlets in the capital city New Delhi and it is expanding its
menu with Indian dishes with a view to attract Indian consumer.
In 1995, Kentucky Fried Chicken (KFC) also entered the Indian market and
opened its first outlet in Delhi. In 1996, Dominos set up base in India by
entering into a long-term franchisee agreement with the Bhatia Brothers who
had businesses in chemicals and fertilizers. By 2000, Dominos had presence
in all the major cities and towns in India. Dominos had grown from one
outlet in 1995 to 101 outlets in April2001. Pizza Hut entered India in June
1996 with its first outlet in Bangalore. Initially, the company operated
company-owned outlets and then moved on the franchisee owned
restaurants.
McDonalds, Dominos, Pizza Hut and Nirulas are the most popular and
frequently visited fast food outlets. KFC has limited outlets and has faced
number of problems since entry in India. Besides these, there are Pizza
Express and Pizza Corner of which are not so popular. With changing life style
and aggressive marketing by fast food outlets, fast food is also becoming
popular in small towns; therefore, success of existing fast food outlets and
entry of more is inevitable (Gupta, 2003).
month or more frequently. Survey indicates that Pizza Hut is the most
preferred fast food outlet in India. Identifying the drivers for preference of
one-brand over another, the survey results indicate that Indians (66 percent)
are amongst the consumers who consider hygiene and cleanliness their most
important criterion for selection.
shows on television. There are special health related magazines that are now
very popular. Health related articles do mention to consume more fruits,
vegetables, water and to consume less or nil of junk food including fast food
being high on fat and calories. Recent news article by Barker (2006)
indicates that Indians are facing the problem of obesity and among kinds of
food fast food is one of the reasons for the same. However, there is gap of
particular research in Indian context to have a link between the health
problems and fast food consumption. In future, genetically modified food
may take the place of fast-food of today (Onyango et al., 2004; Sharma,
2005).
Fast food has been developed in the world economy over the past four
decades. Literature on fast food were started to be published in ancient time
Chepter 3
#3 RESEARCH METHODOLOGIES:
Research Methodology ill common parlance refers to a search for knowledge.
One can also define also research as a scientific and systematic research for
pertinent information a specific topic. Research is an art of systematic
investigation. Some people consider research as a movement, a movement
to the known to the unknown.
Main Objective:
To identify the Fast Food Consumption Behaviour and Perceptions of Young
Consumers towards Fast Food Outlets in the North Gujarat Region".
According to Clifford Woody: Research comprises defining and redefining problems, formulating
hypothesis or suggested solutions, collecting, organizing and evaluating
data, making deductions mil reaching conclusion, and at last carefully testing
the conclusion to determine whether they fit the formulating hypothesis.
Marketing research is defined as a systematic gathering and analysis of the
data concern with an objective. The whole activity is divided into various
parts and after compilation of that we reach at certain findings, which enable
us to marketing decision. It involves the diagnosis of information needed and
the selection of the relevant and interrelated variables.
Primary Source
Primary data consists of original information gathered for specific purpose.
The primary data is collected through questionnaire. The questionnaire is
through common instrument collecting primary collection. I collected the
data through questionnaire from different small eating joints.
Research Instrument
The research instruments used for collecting the primary data were the
questionnaire.
Questionnaire
The questionnaire was carefully developed tested and debugged before they
were administered on a large scale. Each questions contributed to the
research objective here questionnaire is structured types means there are
concrete, definite and predetermined questions.
The questions are presented are exactly same wording and in the same an
order to all respondents. The questionnaire had a mix type of open ended,
closed ended and multiple choice questions. The questions were limited in
numbers simple direct and unbiased technology was adopted.
Data Source:
Primary:
The data was collected through questionnaire comprising of 17 questions.
Secondary:
The data was collected through: internet, magazines and different research
papers.
Sampling Procedure:
1. Sample Unit: Consumer visited Small Eating Joints
2. Sample Size: 300 Respondents
3. Sampling Method: Random Sampling Method
Limitation of Research:
Personal Bias
There may be possibilities of personal bias. It means that the people may
bias in giving the answers due to certain reasons.
Wrong information
It may be possible that respondents may have given wrong information.
Sample Size
Sample size for this research was 300. So, we cannot apply this results are
for entire population.
Limitation of Time
Time period of the research is limited as per the requirement. So, the time
period is not enough to do the complete research.
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