FAST FOOD INDUSTRY IN INDIA

HOW QUICK SERVICE RESTAURANTS CAN LEVERAGE SOCIAL MEDIA TO GROW ITS

BUSINESS

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4891.7

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8560.9

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Source: Data Monitor

The Indian fast food market grew by 14.6% in 2009 to reach a value of $8,560.9 million

55.10%

0.10%

44.70%

0.10%

Indian Fast Food Market Segmentation by Value, 2009

Mobile & Street vendors

Takeaways

Quick Service Restaurants

Leisure Locations

Leading Companies

The company recorded revenues of $1,404 million in the fiscal year ending December 2009, a decrease of 1.5% compared to fiscal 2008

The company recorded revenues of $22,745 million in the fiscal year ending December 2009, a decrease of 3.3% compared to fiscal 2008

31656.837203.4

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The Indian fast food market grew by 10.5% in 2009 to reach a volume of 52,047.5 million transactions

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5Industry Rivalry

Threat of New Entrants

Supplier PowerBuyer Power

Threat of Substitute

IndustryRivalry

The industry is fairly fragmented. Price war is commonly seen in this industry. Exit cost is low. Overall, the attractiveness of the industry due to industry rivalry is MEDIUM

Threat of New Entrants

Industry not capital intensive and anyone can start their own business. However brand plays a very important role in this industry and a new player might find it difficult to survive. But the industry has been growing. Overall, the attractiveness of the industry due to threat of new entrants is LOW

Supplier Power

Suppliers include ingredient suppliers. Forward integration of the supplier is possible. Suppliers are important for a QSR as the quality of food served depends on them. Overall, the attractiveness of the industry due to supplier power is MEDIUM

Buyer Power

Large no of buyers. Switching cost is very less - within a given price range, a consumer's choice of fast food provider is purely a matter of personal taste, and can vary from one day to the next . Price elasticity is very high. Overall attractiveness of the industry due to buyer power is MEDIUM

Threat of Substitute

There are huge no of substitutes available in the market such as frozen foods and ready to eat foods. However the convenience as well as location of fast food outlets makes it attractive over its counterparts. Overall, the attractiveness of the industry due to threat of substitute is medium

Overall, the attractiveness of the industry is MEDIUM

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India's working-age population pool is the largest in the world, and is expected to increase significantly over the next four decades

Source: UN

A study by McKinsey Global Institute estimates that growth in food and beverages consumption will accelerate to 4.5% annually by 2025, from 3% witnessed over the past 20 years

In 2005, people with a disposable income of $10,940 or more contributed just $79 billion in aggregate disposable income. This is expected to increase exponentially by 2025 to $932 billion

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Source: McKinsey Global Institute

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LinkedIn has over 100 million users and adds about 1 million new users to its service every week. The median age of LinkedIn users is 39, and the average user has 60 connections. 20 per cent of its members are in the service industry

Twitter has more than 145 million users and adds about 6 million new users a month. On average 140 million tweets are sent a day. More than 460,000 new account have been added every day . The median age of a Twitter user is 31 years old and the average user has 70 followers. Majority (33%) are between the ages of 18-29

Facebook currently has over 500 million active users around the globe and 50% of these active users log on to Facebook in any given day. Facebook's median age is 33 and its average user has 130 friends and is connected to 80 community pages, groups or events while average user creates 90 pieces of content each month

YouTube has 2 billion views per day, and 24 hours of video is uploaded every minute. YouTube achieved for the first time the milestone of 100 videos watched per user last year

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Social Media or Consumer-Generated Media can help QSRs understand consumers’ need and attitude and then proactively engage with customer needs and query

Quick Service Restaurants (QSRs) have started offering discounts and combination meals to raise revenue from all directions. And since there is no switching cost for customers, it is essential that QSR invest in brand building to gain loyal customers and attract new customers

Access sentiments of customers

Consumer Insights

Brand Health

Tracking Engagement with customers

Reaching out to customers

CRM

Majority of fast food outlets patronage are youngster and it make sense for QSRs to leverage social networking sites to promote their brand

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Has your QSR got new product or service which you want to be make aware among your customer base? Social media is the best and easiest place to drive awareness of your product/service

It is essential for your fast-food outlet to provide the best service and solution to your customers. By leveraging social media, QSRs can develop and increase their relationship with customers

Develops & Deepens Customer

Relationship

Foster Innovation &

Idea

Hasten Awareness

Social media is the right place to collect information about the company. Social media is filled with suggestions for improvements and ideas and these can be used to foster innovation

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Facebook Page Blog

Engagement in FacebookTwitter Profile

Dominos Pizza India has been one of the most successful QSR in India using social media as a way of engaging and connecting with its customers

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McDonald India Facebook Page McDonald International Facebook Page

McDonald International has more than 136846 followers in Twitter while McDonald India doesn’t have a twitter page

McDonald India has a long way to go as compared to its International counterpart.No of Likes in McDonald India Facebook: 19173 versus McDonald International: 8,804,138

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QUICK SERVICE RESTAURANTS* No of Channels Social Grades

DOMINOS PIZZA 5 3.07

KFC 4 2.79

PIZZA HUT 3 2.75

MCDONALD 4 2.0.8

TACO BELL 4 1.36

SOCIAL MEDIA GRADES is calculated based on the interactivity level of the mixed retailers in Facebook, Twitter, LinkedIn, YouTube and Blogs. It shows how active the mixed retailers are in the social media space

No of Channels represents the number of social networking sites a Quick Service Restaurant is present in

* Indian Branch

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Interaction Plot of the Quick Service Restaurants in the Social Media Space

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BRAND AWARENESS: Number of conversations across web

Dominos Pizza has the highest number of mentions in the social media amongst all the players – Dominos: 145631, Pizza Hut: 145272, McDonald: 132173, KFC: 139676, Taco Bell: 105713 while Taco Bell has the least

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BRAND HEALTH: SENTIMENTS across web for different QSRs

Taco Bell is the brand which is most dislike in the social media

Dominos Pizza and Pizza Hut are the most loved brand

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COMPARE the demographics – age group of your brand talkers with competitors

Young Teens in their 13-17 are the people talking about these QSRs the

most online followed by people in the age group of 18-25

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COMPARE the demographics – location of your brand talkers with competitors

Taco Bell and KFC has less buzz in the country as compared to the other

QSRs

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COMPARE the source of messages

All the QSRs have a strong presence in Twitter. There is a lot of scope for getting into Facebook, Blogs and Videos

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INDUSTRY INTELLIGENCE

Tracking the keyword “FAST-FOOD” in Simplify360

There are 19318 mention of the keyword “FAST-FOOD” in the social media within a period of 2 weeks alone

17.78% of the talks about FAST-FOOD is related to negative sentiment about the topic

Young Teens in the age range of 13-17 are the people talking most about FAST-FOOD

FAST-FOOD is popularly talked about in Mumbai and Chennai

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