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WELL KNOWN US FAST FOOD BRANDS IN INDIA
IMPACT ON INDIAN CONSUMERS
ASAD HOOSAIN
MBA-13-007
INTRODUCTION
• Huge market share
• High employment rate.(10 million jobs across the world)
• High growth rate.(India 40%,Globally 4.8%)
• Big business in India. (Rs.7750 cr.)
• Positive growth in future.
• The Indian QSR industry is expected to
grow at a CAGR of 27 % for the period
from 2012-16.
MASTER FRANCHISES
MARKET SHARE
MCDONALDS
KFC
DOMINO'S
SUBWAY
OTHERS
WHY NO INDIAN QSR BRANDS ON TOP?
• The lack of back–end integration.
• Distribution channels.
• Centralized commissaries.
• Training resources.
• Vendor development.
• Capital backing and
• Most importantly standardization in taste
IMPACT ON INDIAN CROWD
• Nearly 40 percent of the people eating out are young adults
• More young professionals are eating fast food in urban india.
• New adda for hanging out!
• With 65% of India’s population below 35, many Indians fall in
the 15-35 age bracket (including students and young working
adults), the target audience of fast food industry.
spouse
children
neighbours
friends
relatives
INDIVIDUALS INFLUENCING DECISION
For change
For Fun
Saves Time
Family outing
REASONS FOR
EATING OUT
REASONS FOR EASTING OUTSIDE
S. No. Reasons Percent to total
1. Taste 38.00
2. Convenience 22.00
3. Alternative food 15.00
4. Relaxation 9.00
5. Variety of menu 15.00
TOTAL 100
CONSUMERS PREFERENCE TOWARDS MENU
S.No. Type of Fast Food Percent to total
1. Burgers 45.00
2 Sandwitches 23.00
3 Pizzas 30.00
4 Others 2.00
TOTAL 100.00
CUSTOMER CHOICE BY LOCATIONLocation Share (%)
Standalone 54
Supermarkets 14
Travel Locations 32
TOTAL 100
CUSTOMERS PER WEEK
• 2005-2008
13.1-16 lakhs
• 2008-2011
24.5 lakhs
• 2011-2014
86.6 lakhs- 1.7 crores
REASONS FOR WIDE ACCEPTANCE
• India has one of the youngest populations in the world, with
nearly 65 percent of the population under 35 years of age.
• As many as 530 million indians will reside in urban areas by
2020
• Rise in nuclear families and youth spending
• Growth in disposable incomes
• The rising urban middle class is also changing its food habits
• Marketing might of powerful international brands
• Largely driven by new outlets
HISTORY AND PAST TRENDS
THE START:
Change in gender roles
Sub-urban communities
Rise of automobiles
New highway system
Double Income Group
Relaxation in rules and regulations
MAJOR TRENDS:
Drive Through Service OR On the Go
Consumerism
Food for specific group(e.g., dieters, women, athletes, older
adults)
Menu diversification
Convenience food
Franchising Model
PRESENT TRENDS
• Eating away form home
• Functional or Healthy fast foods
• Convenience fast foods
• Green fast foods
• Ethnic foods
• Low calorie foods
• The TV dinner
• Fresh foods
• Regional foods
MARKETING STRATEGIES
• Quick Service Restaurants in India play on their strengths to
create a brand promise. The brand promise can vary from fast
food to low prices to healthy food.
• QSRs take their brand promise very effectively to the masses.
• In order to maintain the best food experience, the service,
menu items and interiors are standardized.
LASTLY
• Local players such as Faaso’s, Jumbo King and Kaati Zone are
also growing quickly.
• It will grow to compete with global franchises.
• Healthy food options and low-price menu will also contribute
to its growth, to attain a CAGR of around 27 % during 2012-
2016.
• Continuous economic growth and improving employment
situation will lead to higher personal expenditures on outside
food.
• Fast food joints will also need to maintain their stance on
pricing because the environment will remain extremely
competitive.
• With so much territory left to conquer, fast-food chains are
expanding fast
• fast food industry will experience modest improvement in the
coming years.
SOURCES
• Nielsen.com
• Forbes
• Mint
• A&M Magazine
• http://www.cnbc.com/id/101321608
• http://dosamatic.com
• http://www.eiu.com/industry/article/
• https://simconblog.wordpress.com
• http://www.mbaskool.com/business-articles
• http://www.siliconindia.com/shownews
