CHAPTER-1

INTRODUCTION OF THE TOPIC

 INTRODUCTION

THE INDIAN FAST FOOD JOINTS - AN OVERVIEW

Fast Food is the term given to food that can be prepared and served very quickly. While any
meal with low preparation time can be considered to be fast food, typically the term refers to
food sold in a restaurant or store with low quality preparation and served to the customer in a
packaged form for take-out/take-away

Outlets may be stands or kiosks, which may provide no shelter or seating, or fast food
restaurants (also known as quick service restaurants). Franchise operations which are part of
restaurant chains have standardized foodstuffs shipped to each restaurant from central
locations.

The capital requirements involved in opening up a fast food restaurant are relatively low.
Restaurants with much higher sit-in ratios, where customers tend to sit and have their orders
brought to them in a seemingly more upscale atmosphere may be known in some areas as fast
casual restaurants.

Up to the year 1995 Indian food market was predominantly dominated by the traditional
dhabas, potential restaurants in the customer's colony and some restaurants in a five star hotel.
Having fast food i.e. burgers, pizzas etc, was considered to be an option for eating out. It was
not at all synonymous with the American concept of fast food as a quick take away bite or a
substitute for lunch.

Apart from food being available at the local colony restaurants and at some five star
restaurants, Nirula's was the only fast food chain existing in the country with its restaurants
expanding with every passing year since its inception. It has been almost 50 years now since its
set up and there is hardly anyone who does not now that the Nirula's exists. Nirula's was the
first one to bring fast food to India back in the 50's since then it has evolved into an eating
place with a tremendous brand equity and Brand recognition. It proved to be a perfect eating
place for an average middle class who wants to eat out an affordable price who cant afford the
five star restaurants and would not want to go to the local dhabas.

Nirula's almost had a monopoly for decades due to the way it has been placed . it is a place
where a person from an average middle class group to upper class group can go to eat out. its
popularity has increased over the decades. With the trends changing and the incomes rising
almost anybody who can afford to eat out could go for a snack at Nirula's.

However the year 199-96 witnessed a drastic change. 1996 is considered to be the year of
India's entry into the world food market. International giants such as McDonalds, KFC,
Dominos, Pizza Hut all bombarded the Indian food market.

It has been the American international giants i.e. McDonalds, Pizza Hut, Dominos etc., who
have targeted their restaurants to the families. Apart from the foreign and Indian fast food
chains setting up shop, there are a range of specialty restaurants offering varied fare such as
Chinese, Mexican, French, and Italian etc. These places however offer range of items different
from burgers; pizzas etc. but they definitely are competition to both foreign and Indian fast
food chains. However, restaurants business is such which is surrounded by threat from
everywhere be it Indian joints or foreign joints.

Each of the foreign food joints that have come into the country has their own strategy lined up
to differ from the rest. Each of the studied the Indian tastes and style and thereby targeted the
Indian customer. An average Indian restaurant goes is no convince eater, unlike the Americans.

If he is paying, he is paying for food that taste good (Spicy, soft, savory etc.), not for how
pleasantly the stuff is served or how spotless the widows are. He wants food for that can make
him come back to the restaurants. An Indian food joints owner would definitely understand this
but an American company, which comes and places it directly without knowing the customers
is definitely in for trouble. Customer loyalty in a restaurant business is essential low

A customer when he comes to a restaurant usually looks at the quality of food, variety,
ambience, speed of delivery and the location. The variety would influence the frequency of
visits since taste is a dominating factor to the Indian customers.

Almost all the Fast food chains both Indian i.e. Nirula's and foreign i.e. McDonalds etc. are
targeting families. This serves to be an advantage because the turnaround time is short and
family has higher propensity to spend because different members order large variety of dishes.

Each of these restaurants delivers quality, value and services in its own way through its line of
strategies. The emphasis is on the value that the restaurant is delivered to the customers.
The Indian fast food industry has evolved over time and always has been in line with the needs
of people of all ages and segments. There are enterprises which scale from one room outlet to a
chain having hundreds of outlets like McDonalds in India.

As per new research report Indian Fast Food Market Analysis, India is blessed with one of
the fastest growing fast food markets in the world. The Indian fast food market is growing at an
annual growth rate of 30-35%. Almost all big fast food brands of the world have succeeded in
making their presence felt in the country and most of them posting an appreciable growth.

In 2013, the global fast food market is forecasted to have a value of $200 billion, an increase of
29.3% and a volume of 94.7 billion transactions, an increase of 10.4% since 2008.

The consumer spending on processed food has increased at an average rate of 7.6 per cent
annually from 2008 to 2010 and this is expected to rise at an average of around 8.6 per cent
until 2012, according to a report by Assocham.

Almost all big fast food brands of the world have succeeded in making their presence felt in the
country and most of them are posting appreciable growth.

FAST FOOD INDUSTRY

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.

Popular formats of fast food business in India have the following features in
common:

Wide opening on the road side

Easy to maintain and durable dcor

A cash counter where food coupons are sold

A food delivery counter which invariably is granite topped

Additional counters for Ice Creams, Chaats, Beverages etc.

A well fitted kitchen located so as to be visible to the customers

Tall tables, usually of stainless steel, where one can eat while standing

A drinking water fountain adorned with a water filter

Rust-proof and non-breakable crockery

FOOD COURT
Another concept of fast food that is becoming popular is that of Food Courts. It is like putting
together a number of Darshinis serving different cuisines under one roof. Here also one has to
purchase coupons and collect the food from one of the several counters. Each one of these
counters serves specific variety of food and may be owned by different individuals or caterers.
Food Courts are normally located on much bigger premises and may provide seating facility in
addition to the stand and eat arrangement. Typically one entrepreneur owns or takes on lease
the entire premises and promotes the place under one name. He then lets out individual
counters to different independent operators to offer different menu. Internal competition is
avoided by not allowing more

INDIA EMERGING MARKET FOR GLOBAL PLAYERS

The percentage share held by foodservice of total consumer expenditure on food has increased
from a very low base to stand at 2.6% in 2001. Eating at home remains very much ingrained in
Indian culture and changes in eating habits are very slow moving with barriers to eating out
entrenched in certain sectors of Indian society.. The growth in nuclear families, particularly in
urban India, exposure to global media and Western cuisine and an increasing number of women
joining the workforce have had an impact on eating out trends.

FACTS AND FIGURES

Fast food is one of the worlds largest growing food type. Indias fast food industry is growing
by 40% a year and is expected to generate a billion dollars in sales by [Link] multinational
segment of Indian fast food industry is up to Rs. 6 billion, a figure expected to zoom to Rs.70
billion by2005. By 2005, the value of Indian dairy products is expected to be Rs.1,00,000
million. In last 6 years, foreign investment in this sector stood at Rs.3600 million which is
about one-fourth of total investment made in this sector. Because of the availability of raw
material for fast food, Global chain sare flooding into the country.

MARKET SIZE & MAJOR PLAYERS

The organized fast food market in India is worth Rs.600 Crore. The major players in the market are

Dominos and Mc Donalds also pizza Hut whose market share are around 45% and 35% respectively.

Mc Donalds form the rest 20%

 pizza Hut; 20
Dominos; 45
Mc Donald's; 35

Dominated by McDonalds having as many as 75 outlets.

Dominos pizza is present in around 100 locations.
Pizza hut is also catching up and it has planned to establish 125
outlets at the end of 2005.
Subways have established around 40 outlets.
Nirulas is established at Delhi and Noida only. However, it claims to
Cater 50,000 guests every day.

MAJOR PLAYERS IN FAST FOOD ARE:

MCDONALDS

KFC

PIZZA HUT

DOMINOS PIZZA.

COFFEE DAY

BARISTA.

The main reason behind the success of the multinational chains is their expertise in product
development, sourcing practices, quality standards, service levels and standardized operating
procedures in their restaurants, a strength that they have developed over years of experience
around the world. The home grown chains have in the past few years of competition with the
MNCs, learnt a few things but there is still a lot of scope for improvement.

REASON FOR EMERGENCE

Gender Roles: gender roles are now changing. Females have started working outside. So, they
have no time for their home and cooking food. Fast food is an easy way out because these can
be prepared easily.

Customer Sophistication and Confidence: consumers are becoming more sophisticated now.
They do not want to prepare food and spend their time and energy in house hold works. They
are building their confidence more on ready to eat and easy to serve kind of foods

Paucity of Time: people have no time for cooking. Because of emergence of working women
and also number of other entertainment items. Most of the time either people work or want to
enjoy with their family.

Double Income Group: emergence of double income group leads to increase in disposable
income. Now people have more disposable income so they can spend easily in fast food and
other activities.

Working Women: working women have no time for cooking, and if they have then also they
dont want to cook. Because they want to come out of the traditionally defined gender roles.
They do not want to confine themselves to household work and upbringing of childrens.

Large population: India being a second largest country in terms of population possesses large
potential market for all the products/services. This results into entry of large number of fast
food players in the country.

Relaxation in rules and regulations: with the economic liberalization of 1991, most of the
tariff and non tariff barriers from the Indian boundaries are either removed or minimized. This
helped significantly the MNCs to enter in the country.

Menu diversification: increase in consumption of pizzas, burgers and other type of fast foods.

CHALLENGES FOR THE INDUSTRY

Social and cultural implications of Indians switching to western breakfast food: Generally,
Hindus avoid all foods that are believed to inhibit physical and spiritual development. Eating
meat is not explicitly prohibited, but many Hindus are vegetarian because they adhere to the
concept of ahimsa. Those seeking spiritual unity may avoid garlic and onions. The concept of
purity influences Hindu food practices. Products from cows (e.g., milk, yogurt, ghee-clarified
butter) are considered pure. Pure foods can improve the purity of impure foods when they are
prepared together. Some foods, such as beef or alcohol, are innately polluted and can never be
made pure. But now, Indians are switching to fast food that contain all those things that are
considered impure or against there beliefs. Some traditional and fundamentalist are against this
transformation of food habit and number of times they provoke their counterparts to revolt
against such foods. And that is what happened when McDonalds decided to enter the
complexity of Indian business landscape, counting only on its fast food global formula,
without any apparent previous cultural training.

Emphasis on the usage of bio-degradable products: Glasses, silverware, plates and cloth
napkins are never provided with fast food. Instead, paper plates and napkins, polyurethane
containers, plastic cups and tableware, drinking cartons or PET (polyethylene terephthalate)
bottles are used, and these are all disposable. Many of these items are tossed in the garbage
instead of being recycled, or even worse, merely thrown on the ground. This burdens nature
unnecessarily and squanders raw materials. In order to reduce soil and water pollution,
government now emphasis more on the usage of bio-degradable products.

Retrenchment of employees: Most of new industries will be capital intensive and may drive
local competitors, which have more workers, out of business.

Profit repatriation: Repatriation of profits is another area of concern for Indian economy. As
when multinational enters the any countries, people and government hope that it will increase
the employment rate and result in economic growth. However, with the multinational
operation, host country experiences these benefits for a short time period. In long run neither
employment increases (because of capital intensive nature of MNCs) nor it increases the GDP
or GNP because whatever MNCs earn they repatriate that profit back to their home country.

PROBLEMS OF INDUSTRY

Environmental friendly products cost high: government is legislating laws in order to keep
check on the fast food industry and it is emphasizing more on the usage of bio-degradable and
environment friendly products. But associated with this issue is the problem that fast food
 player faces - the cost associated with the environment friendly product. They cost much higher
than the normal products that companies uses for packaging or wrapping their products.

Balance between societal expectation and companies economic objectives: To balance a

societys expectation regarding environment with the economic burden of protecting the
environment. Thus, one can see that one side pushes for higher standards and other side tries to
beat the standard back, thereby making it a arm wrestling and mind boggling exercise.

Health related issues: obesity:

I. Studies have shown that a typical fast food has very high density and food with high density
causes people to eat more then they usually need. \

II. Low calories food: Emphasis is now more on low calorie food. In this line McDonald has a
plan to introduce all white meat chicken Mc nuggets with less fat and fewer calories.

TRENDS IN INDIAN MARKET

Marketing to children's: fast food outlets in India target childrens as their major customers.
They introduce varieties of things that will attract the childrens attention and by targeting
childrens they automatically target their parents because Childrens are always accompanied
by their parents.

Low level customer commitment: Because of the large number of food retail outlets and also
because of the tendency of customer to switch from one product to other, this industry faces
low level customer commitment.

Value added technology services: There is continuous improvement in the technology as far
as fast food market in India is considered. The reason behind that is food is a perishable item
and in order to ensure that it remain fresh for a longer period of time. Earlier, Indian people
prefer eating at home but now with the change in trend there is also need for improvement and
up gradation of technology in food sector.
Attracting different segments of the market: Fast food outlets are introducing varieties of
products in order to cater the demands of each and every segment of the market. They are
introducing all categories of product so that people of all age, sex, class, income group etc can
come and become a customer of their food line.

The success of fast foods arose from the changes in our living conditions:

1. Many women or both parents now work

2. There are increased numbers of single-parent households

3. Long distances to school and work are common

4. Usually, lunch times are short

5. There's often not enough time or opportunity to shop carefully for groceries, or to cook and
eat with one's family. Especially on weekdays, fast food outside the home is the only
solution.

DECADAL GROWTH OF THE FAST FOOD RETAIL SECTOR

Retailing is a sunrise industry in India with many challenges like exclusion of small farms,

management of processing and distribution chains. Evolution of super markets and fast food

chains is a recent phenomenon in India. Various demand and supply side factors have

contributed towards this growth.

Supply Side:

The liberalization of the economy in the 1990s led to a boom in the Consumer Goods

Industry

with reductions in custom duties and shift from quota to tariff based system. Entry barriers on

multinationals were largely removed after which Food Industry majors like Kelloggs, Heinz,

Tropicana, etc., entered the Indian food industry. This gave rise to tremendous development of
sophisticated supply chain & logistics which eventually and gradually has led to the growth in

the food processing & packaging industry

Demand Side:-

The increase in the income levels of middle & higher income groups in the 1990s coupled with

the reduction in poverty levels was a major factor in contributing to the increase in demand for

high quality food retailing services. Changing consumer lifestyles with the steep increase in

time value, wide spread change in the Indian family structure from vast Joint Hindu families to

more manageable nuclear families and increasing level of quality awareness has also helped

the cause of the Food Retailing industry considerably. Another major factor that has accelerated

the growth of the Indian Food Retailing Sector has been the advent of cable television and the

increasing instances of overseas travel by Indians for various reasons.

MARKET RESEARCH

Usually it is said that if marketing would be a train, than market research would be the
locomotive. In other words, market research should ideally be the starting point on any
marketing exercise. Conducting any marketing exercise- is it related to pricing, promotion or
distribution of a product or service. Without researching the potential market is as sensible as
setting out sell sand in the Sahara Desert.

Market research provides the answers to all the questions that generally occupy the minds of
marketers, at every stage of the marketing process.

Market research is the systematic and objective identification, collection, analysis and
reporting of information for the purpose of assisting organisations in decisions relating to the
understanding of the behaviours and attitudes of people and their organisations, the ultimate
aim being the development and implementation of solutions to problems or opportunities.
Marketing research is the function that links the consumer, customer, and public to the
marketer through informationinformation used to identify and define marketing
opportunities and problems; generate, refine, and evaluate marketing actions; monitor
marketing performance; and improve understanding of marketing as a process. Marketing

research specifies the information required to address these issues, designs the method for
collecting information, manages and implements the data collection process, analyzes the
results, and communicates the findings and their implications.

Market research is the preparation, gathering, sorting and analysing of data relevant to
marketing or campaign decision making.
The Role of Market Research

The descriptive function of market research is the most important. It can inform the agency
about the level of awareness of current campaigns, the level of piracy, etc. It can equally
measure levels of customer satisfaction with the agency. Market research has a power
diagnostic ability, wherein the data is analyzed and behaviours and attitudes explained. It can
also be used to predict evolving trends, especially where studies are conducted over time.
Markets research is a proactive tool that allows organisations to adapt their marketing mix to
changes in the environment.

No organisation should commence a research study before assessing the value of such work in
relation to the expense. Hence, the very first task is to assess whether to conduct market
research at all.

Growth Trends in Market Research

India, fastest growing market research industry in the world, with growth rates at around 31 %
(2015). China is a distant second growing at20%. The size of the industry if of 595 crore, but
the industry is growing rapidly with a lot of business coming from overseas. The business
coming from overseas from overseas involves lot of outsourcing as cost advantages are
enormous; the processing of data is almost 50% cheaper in India than in developed countries.
The outsourcing business amounts to almost for the 8% industry and this figure is doubling in
value every year.

SCOPE OF MARKET RESEARCH

Many people think that market research is just a consumer survey, asking consumer
about certain product or services. Though consumer research is an integral part of
marketing research, the latters quite a pervasive activity, conveying the various types of
marketing problems that confront the marketing manager. There are various discussion
confined to the market research which are as follows-
Product Research
Sales Research
Customer Research
Pricing Research
Advertising Research

CONSUMER BEHAVIOUR

In todays challenging and competitive world of fast changing technology, consumer tastes are
also characterized by fast changes. So to survive in the market the firms have to be in touch
with the changing consumer preferences. Marketers have to understand consumer behaviour
and factors influencing in the buying behaviour of the customers in order to be successful in
this dynamic and competitive environment.

Meaning of consumer behaviour:

Consumer behaviour is the behaviour that the consumer display while searching for,
evaluating, purchasing and disposing of products and services that they expect will satisfy their
needs. Consumer behaviours are the study of how consumer makes their decisions to spend
their resources on consumption related items i.e. time, efforts and money. Study of consumer
behaviour proves the marketers an insight regarding the consumer preferences and helps them
in effective market segmentation and targeting. The importance of consumer behaviour lies in
the fact that behaviour can be understood and influenced to ensure a positive purchase
decision. So around understanding of consumer behaviour is necessary for long run success of
any marketing program.

Thats why the marketing managers interest lies exactly in understanding consumer behaviour
to ensure that his marketing strategy results in purchase of product.

DETERMINANTS OF CONSUMER BEHAVIOUR

The study of consumer behaviour is quite complex, because of many variables involved and
their tendency to interest with and influences each other. The main determinants of consumer
behaviour are:
1. External Variables

2. Individual determinants of Consumer Behaviour

1. External Variables : The external environment is made up of various influences such

as:

Culture

Sub culture

Social class

Family

Reference groups

Personal factors such as age and life cycle, education, occupation, life style,
personality, etc.

These all are major determinants of consumer behaviour.

2. Individual Determinants of Consumer Behaviour: The individual determinants of

consumer behaviour are:

Personality and Self Concept

Motivation and involvement

Learning
 Memory

Attitude

CUSTOMER SATISFACTION:

Frequently used in marketing, is a measure of how products and services supplied by a

company meet or surpass customer expectation. Customer satisfaction is defined as "the

number of customers, or percentage of total customers, whose reported experience with a firm,

its products, or its services (ratings) exceeds specified satisfaction goals.

The definition of customer satisfaction has been widely debated as organizations

increasingly attempt to measure it. Customer satisfaction can be experienced in a variety of

situations and connected to both goods and services. It is a highly personal assessment that is

greatly affected by customer expectations. Satisfaction also is based on the customers

experience of both contact with the organization (the moment of truth as it is called in

business literature) and personal outcomes. Some researchers define a satisfied customer within

the private sector as one who receives significant added value to his/her bottom line a

definition that may apply just as well to public services. Customer satisfaction differs

depending on the situation and the product or service.

Why Organizations Focus on Customer Satisfaction

Businesses monitor customer satisfaction in order to determine how to increase their

customer base, customer loyalty, revenue, profits, market share and survival. Although greater

profit is the primary driver, exemplary businesses focus on the customer and his/her

experience with the organization. They work to make their customers happy and see customer

satisfaction as the key to survival and profit. Customer satisfaction in turn hinges on the

quality and effects of their experiences and the goods or services they receive.

Customer Satisfaction Measurement: -

A basic and effective base line customer satisfaction survey program should focus

on measuring customer perceptions of how will the company delivers on the critical

success factors and dimensions of the business as defined by the customers:

For example:

Service Promptness

Courtesy of Staff

Responsiveness

Understanding the customer problem, etc.

The findings of the company performance should be analyzed both with all customers and

by key segments of the customer population. The essential starting point for Customer

Satisfaction Measurement (CMS) is exploratory research. Since satisfaction is about an

organizations ability. To meet customer requirement one has to start by clarifying with

customers exactly what those requirements are. This is done through exploratory research

using focus groups or one to one depth interviews.

 CHAPTER-2
INDUSTRY PROFILE

DOMINOS

Domino's Pizza Inc.

19
 Domino's Pizza corporate headquarters in Ann Arbor, Michigan.

Trading name Domino's

Type Public

Traded as NYSE: DPZ

S&P 400 Component

Industry Pizzerias

Founded June 10, 1960; 56 years ago

Ypsilanti, Michigan, U.S.

Founders Tom Monaghan

James Monaghan

Headquarters Domino Farms Office Park

Ann Arbor Charter Township, Michigan, United States

Area served Worldwide

Key people Tom Monaghan, Founder

J. Patrick Doyle, CEO

Products Italian-American cuisine,Pizza, pasta, chicken wings,submarine

sandwiches,wraps, desserts

$2.2165 billion USD(2016)[1][2]

Revenue

Operating income $405.4 million USD (2015)[1][2]

20
Net income $306.2 million (2015)[1][2]

Number of employees 260,000 (2015)[2]

Website [Link]/en/

HISTORY

In 1960, Tom Monaghan and his brother, James, purchased DomiNick's, a small pizza store at
301 West Cross Street[4] in Ypsilanti, Michigan, near Eastern Michigan University.[5] The deal
was secured by a $500 down payment, and the brothers borrowed $900 to pay for the store.
[6]
The brothers planned to split the work hours evenly, but James didn't want to quit his job as a
full-time postman to keep up with the demands of the new business. Within eight months, James
traded his half of the business to Tom for the Volkswagen Beetle they used for pizza deliveries.
[6]
By 1965, Tom Monaghan had purchased two additional pizzerias; he now had a total of three
locations in the same county. Monaghan wanted the stores to share the same branding, but the
original owner forbade him from using the DomiNick's name. One day an employee returned
from a pizza delivery and suggested the name Domino's. Monaghan immediately loved the idea
and officially renamed the business Domino's Pizza, Inc. in 1965.[6]

The company logo originally had three dots, representing the three stores in 1965. [6] Monaghan
planned to add a new dot with the addition of every new store, but this idea quickly faded, as
Domino's experienced rapid growth.[6] Domino's Pizza opened its first franchise location in
1967[7] and by 1978, the company expanded to 200 stores.[8] In 1975, Domino's faced a lawsuit
by Amstar Corporation, the maker of Domino Sugar, alleging trademark infringement and unfair
competition. On May 2, 1980, the Fifth Circuit Court of Appeals in New Orleans found in favor
of Domino's Pizza.[9]

21
International expansion

On May 12, 1983, Domino's opened its first international store, in Winnipeg, Manitoba, Canada.
[10]
That same year, Domino's opened its 1,000th store overall. In 1985, they opened their first
store in the United Kingdom in Luton.[11] Also, in 1985, Domino's opened their first store
in Tokyo, Japan. In 1993, they became the second American franchise to open in the Dominican
Republic and the first one to open in Haiti, under the direction of entrepreneur Luis de Jess
Rodrguez.[12] By 1995, Domino's had expanded to 1,000 international locations. In 1997,
Domino's opened its 1,500th international location, opening seven stores in one day across five
continents.[13] By 2014, the company had grown to 6,000 international locations and was
planning to expand to pizza's birthplace, Italy; this was achieved on October 5, 2015, in Milan
with the first restaurant. CEO Patrick Doyle, in May 2014, said the company would concentrate
on its delivery model there.

In February 2016, Domino's opened its 1,000th store in India.

Sale

In 1998, after 38 years of ownership, Domino's founder Tom Monaghan announced his
retirement, sold 93 percent of the company to Bain Capital, Inc. for about $1 billion, and ceased
being involved in day-to-day operations of the company.[20] A year later, the company
named Dave Brandon as its CEO.

Present

Domino's Pizza logo used from 1996 until September 2012 in major English-speaking countries,
and still use in many others

In 2004, after 44 years as a privately held company, Domino's began trading common stock on
the New York Stock Exchange under the ticker symbol "DPZ".[22] Industry trade
publication Pizza Today magazine named Domino's Pizza "Chain of the Year" in 2003, 2010, and
2011.[23][24][25] In a simultaneous celebration in January 2006, Domino's opened its 5,000th U.S.
store in Huntley, Illinois, and its 3,000th international store in Panama City, Panama making
8,000 total stores for the system.[26] In August 2006, the Domino's location in Tallaght,Dublin,

22
Ireland, became the first store in Domino's history to hit a turnover of $3 million (2.35 million)
per year.[27] As of September 2006, Domino's has 8,200+ stores worldwide, which totaled $1.4
billion in gross income.

Innovations

In 2007, Domino's introduced its Veterans Delivering the Dream franchising program and also
rolled out its online and mobile ordering sites.[8] In 2008, Domino's introduced the Pizza Tracker,
an online application that allows customers to view the status of their order in a simulated "real
time" progress bar.[29] The first Domino's with a dining room opened in Stephenville, Texas,
giving the customers the option to either eat in or take their pizza home. Since 2005, the voice of
Domino's Pizza's US phone ordering service has been Kevin Railsback.

In a 2009 survey of consumer taste preferences among national chains by Brand Keys, Domino's
was last tied with Chuck E. Cheese's. In December that year, Domino's announced plans to
entirely reinvent its pizza. It began a self-critical ad campaign in which consumers were filmed
criticizing the then-current pizza's quality and chefs were shown developing a new pizza. [31]
[32]
The new pizza was unveiled that same month. The following year, 2010 and Domino's 50th
anniversary, the company hired J. Patrick Doyle as its new CEO and experienced a 14.3%
quarterly gain. While admitted not to endure, the success was described by Doyle as one of the
largest quarterly same-store sales jumps ever recorded by a major fast-food chain.[33][34]

In 2015, Dominos unveiled a special "pizza car" that can carry 80 pizzas, sides, 2-liter bottles of
soda, and dipping sauces.[35] It also has a 140-degree oven on board and is more fuel efficient
than a standard delivery car. Officially named the DXP, the car is built on the Chevy Spark
platform and each car will be retired once it hits 100,000 miles.

In 2016, Domino's in New Zealand delivered the world's first pizza delivery by unmanned aerial
vehicle using the DRU Drone by Flirety.

In February 2017, Domino launched a wedding registry with gifts delivered in the form of
Domino's e Gift cards.[38] Customers have the option of signing up for Domino's pizza package to
be served for the event.

23
30-minute guarantee

Starting in 1973, Domino's Pizza had a guarantee that customers would receive their pizzas
within 30 minutes of placing an order or they would receive the pizzas free. The guarantee was
reduced to $3 off in the mid-1980s. In 1992, the company settled a lawsuit brought by the family
of an Indiana woman who had been killed by a Domino's delivery driver, paying the family $2.8
million. In another 1993 lawsuit, brought by a woman who was injured when a Domino's
delivery driver ran a red light and collided with her vehicle, the woman was awarded nearly $80
million but accepted a payout of $15 million. The guarantee was dropped that same year because
of the "public perception of reckless driving and irresponsibility", according to then-CEO Tom
Monaghan.

In December 2007, Domino's introduced a new slogan, "You Got 30 Minutes," alluding to the
earlier pledge but stopping short of promising delivery in half an hour.

The company continues to offer the 30-minute guarantee for orders placed in its stores situated
in Colombia, India, Vietnam, Mexico, China, and Turkey.

In Malaysia and Singapore, a refund is instead substituted with a "Free Regular Pizza Voucher".

In India, the guarantee is for 300 ($5) and is valid for an order of less than.

MARKETING STRATEGIES OF DOMINOS

Adapting To Economic Environment

Dominos focuses on value to customers and offers pizzas and italian delicacies at affordable
prices to middle class Indian consumers. Dominos has 274 outlets in 55 cities across 20 states.

Embracing Technology

24
Locating stores and placing orders has never been easier for pizza hut loyals. With their virtual
store kind website, pizza hut offers customers a wide range of options to choose from menu and
avail new offers. Now orders can also be placed through mobile phones. High end technologies
are used at the cash counters.

Across Socio Cultural Barriers

Dominos outlets are prevalent in every small-big town across the world. Dominos has taken cues
from changing preferences of its customers and put together a tantalising menu that attracts
foodies around the globe.

SEGMENTATION,TARGETING AND POSITIONING OF DOMINOS

Geographic

Region dominos outlets in different countries is a way of segmenting their market

according to region and finding out potential markets.

City they also segment the cities as class i, class ii, metros, small towns.

Demographic

age under 13years, 13 to 21 years, 21 to 35 years, 35 to 50 years, 50+ years. family

income lower middle class, middle class, upper middle class, high class

Psychographic

socio-economic class urban (a1, a2, b1, b2, c, d)

Behavioral

Loyalty status low, medium, high

user status first time, regular, non-user

25
 MARKETING MIX OF DOMINOS (4Ps):
Product

Dominos is widely known for its quality and fresh pizza. The boxes for the food products are
specially designed to keep everything fresh and hot. The products offered are of both vegetarian
and non-vegetarian variety. In order to seize the market Dominos has worked on a unique
concept of localizing the flavors.

Dominos pizza comes in three different sizes small, medium and large. In the varieties,
Country Special Pizza, Mexican Green Wave Pizza, Zesty Chicken pizza, Seventh Heaven Pizza,
Chicken and Prawn Pizza, Grand Supreme Pizza, Chicken and Camembert Pizza are some of the
popular pizzas.

Besides pizzas, Dominos also deals in some other food items. Calzone pockets, Garlic Bread
Sticks, Stuffed Garlic Bread Sticks, Taco Indiana, Pasta Italiano (white sauce), Chicken Wings,
Choco Lava Cake, Spicy Baked Chicken and Butterscotch Mousse Cake are also available here.
Beverages like Thumps-up, Fanta and Coke have been introduced in the menu.

Dominos also gives a choice in the matter of crust like theFresh Pan Pizza and Cheese burst
pizza. It has also started offering options including whole-wheat crust and any other company
has yet not utilized this option. The buyer also has a choice on the toppings. Extra cheese on a
pizza and Dips like Roasted Pepper Dip and Cheesy Jalapeno Dip are available on demand.

Price

Dominos main target is the lower middle class and middle class income group. Best of quality
with reasonable pricing is its motto. Dominos has come up with a uniform and consistent pricing
policy. This keeps the base price in check and helps the company to attract customers. If you
look at the competition, then Dominos has been evenly prized with Pizza hut. But the prices are

26
high as compared to KFC and McDonalds and hence the price conscious customers will prefer
the indirect competitor McDonalds and KFC above Dominos.

Affordability is the key to the tremendous success of this reputed company. To maintain the price
level many new and innovative schemes are launched on regular basis. It always gives its
customers value for ones money. Special discounts are offered at regular intervals. For
Wednesdays, a special scheme was launched where one free pizza was offered with one buy.
Many free food items on purchase of selected and exclusive products are some of the methods to
lower the prices and attract the customers. Pizzas are available in three sizes large, medium and
regular so that one can buy whichever is affordable to them.

Place

Dominos pizza has always maintained a direct channel with its customer base. The customers
either call or send a message by telephone for the pizza delivery. Consumers can also place their
order online through the official website of Dominos. In both the cases, the packaged food
product is delivered and subsequently received by the buyer at the mentioned address. If the
order does not reach the buyer in allotted thirty minutes, then the buyer does not have to pay for
it. The order is delivered free of charge. The delivery boys are the real heroes of this
organization. The detail of every route is decided beforehand and after an order is placed, this
route is followed so that minimum time is taken.

One of the most common methods of eating a pizza is to dine-in the Dominos outlet. Dominos
has many outlets in very good locations. Most of the shopping malls and main streets have a
section for Dominos pizza. Dominos is currently located in 73 countries and has more than
10000 stores.

27
Promotions

Dominos idea of maintaining direct contact with its consumer base is one of the leading factors
that have taken the company to unachievable heights. Its policy of door-to-door deliveries is
amazing. Nearly every individual knows that Dominos will deliver the pizza in thirty minutes
flat. Dominos sales depend on telemarketing and the efficiency of their trained delivery boys.

Besides evaluating their own strength and weaknesses, Dominos has also been observant of their
competitors. McDonalds KFC, Subway, Pizza Hut and Burger King are some of the important
competitors of Dominos. The one field where the other companies have been simply unable to
give competition is in delivering the pizzas on time.

To promote its food products, Dominos is always introducing new schemes and offers in order to
maintain its grip on its customers. The home delivery is always free of charge. Sometimes the
company offers a 50% discount on the second pizza. At other times, the company introduces
schemes like one small pizza free on one large pizza. Sometimes lucky coupons are also awarded
to loyal buyers. The most regular and common scheme is of giving a coke free on every
purchase. Thus, the advertising team is actively involved in the marketing and promotional
strategy to boost up the sales.

The visual media of television has been utilized to the maximum capacity. Many beautiful ads
for dominos pizza with reputed actors have been aired and they all have been very popular with
the masses. Most ads of Dominos are targeted to be product introduction or ads or the brands
reminder ads so that people look at the ad and order a Dominos Pizza. Dominos has surely
changed the concept of eating amongst the Indian Household. Ads for Dominos pizza can also
be seen in newspapers and magazines.

PIZZA HUT

28
 Pizza Hut

Type Wholly owned subsidiary

Industry Restaurants

Founded June 15, 1958; 58 years ago

Wichita, Kansas, U.S.

Founders Dan Carney

Frank Carney

Headquarters 7100 Corporate Drive

Plano, TX 75024, U.S.[1]

Number of locations 13,728 worldwide (excluding locations in China, operated by Yum! China, and India, operated
by Yum! India) (as of 2015)

Products Italian-American cuisine

pizza pasta Buffalo wings

Number of employees 160,000+[citation needed]

Parent PepsiCo (197797)

Yum! Brands (1997present)

Website [Link]

CONCEPT

Pizza Hut is split into several different restaurant formats: the original family-style dine-in

locations; storefront delivery and carry-out locations; and hybrid locations that have carry-out,

delivery, and dine-in options. Some full-size Pizza Hut locations have a lunch buffet, with "all-

29
you-can-eat" pizza, salad, bread sticks, and a pasta bar. Pizza Hut has other business concepts

independent of the store type; Pizza Hut "Bistro" locations are "Red Roofs" which have an

expanded menu and slightly more upscale options.

An upscale concept was unveiled in 2004, called "Pizza Hut Italian Bistro". At 50 U.S. locations,

the Bistro is similar to a traditional Pizza Hut, except the menu features new, Italian-themed

dishes such as penne pasta, chicken pomodoro, and toasted sandwiches.[13] Instead of black,

white, and red, Bistro locations feature a burgundy and tan motif. [14] Pizza Hut Bistros still serve

the chain's traditional pizzas and sides. In some cases, Pizza Hut has replaced a "Red Roof"

location with the new concept. "Pizza Hut Express" and "The Hut" locations are fast

food restaurants. They offer a limited menu with many products not seen at a traditional Pizza

Hut. These types of stores are often paired in a colocated location with a sibling brand such

as WingStreet, KFC or Taco Bell, and found on college campuses, food courts, theme parks,

bowling alleys, and within stores such as Target.

Vintage "Red Roof" locations, designed by architect Richard D. Burke, can be found in the

United States and Canada; several exist in the UK, Australia, and Mexico. In his book Orange

Roofs, Golden Arches, Phillip Langdon wrote that the Pizza Hut "Red Roof" architecture "is

something of a strange object considered outside the realm of significant architecture, yet

swiftly reflecting shifts in popular taste and unquestionably making an impact on daily life.

These buildings rarely show up in architectural journals, yet they have become some of the most

numerous and conspicuous in the United States today."[15]

[Link] reports, "Despite Pizza Hut's decision to discontinue the form when they made the

shift toward delivery, there were still 6,304 'traditional units' standing as of 2004, each with the

shingled roofs and trapezoidal windows signifying equal parts suburban comfort and strip-mall

30
anomie." This building style was common in the late 1960s and early 1970s. The name "Red

Roof" is somewhat anachronistic now, since many locations have brown roofs. Dozens of "Red

Roofs" have closed or been relocated or rebuilt.[16]

Many "Red Roof" branches have beer if not a full bar, music from a jukebox, and sometimes an
arcade. In the mid-1980s, the company moved into other successful formats including delivery or
carryout and the fast food "Express" model.

CRITICISM

In the United Kingdom, Pizza Hut was criticized in October 2007 for the high salt content of its
meals, some of which were found to contain more than twice the daily recommended amount of
salt for an adult. The meats that consumers demand for pizza toppings (ham, sausage, bacon,
etc.) are, likewise, salty and fatty meats.[46]

To meet the Food Standards Agency 2010 target for salt levels in foods, between 200810 the
company removed over 15% of salt across its menu.[47]

In 2010, Pizza Hut was criticized when its supplier of palm oil, Sinar Mas, was exposed to be
illegally slashing and burning the Paradise Forests of Indonesia to plant palm oil plantations.[48]

In July 2014, delivery drivers filed a class-action lawsuit over Pizza Hut "paying delivery drivers
net wages below minimum wage due to unreimbursed automobile expenses" in violation of the
1938 Fair Labor Standards Act.[49] An attempt by Pizza Hut to dismiss the case in November
2015 failed.[50] In December 2016, the case dubbed Linkovich v. Capital Pizza Huts,Inc., et al.,
AAA Case No. 01-14-0001-6513 was decided by arbitration, in which Pizza Hut paid damages.

MARKETING STRATEGIES OF PIZZA HUT

Adapting To Economic Environment

In 1991 under the guidance of a visionary narasimha rao and his comrade manmohan singh India
marched towards a new era of liberalisation, privatisation and globalisation. Trade barriers were
eased and cultural barriers started dissolving. It was at this juncture that pizza hut made its infant

31
steps in India, with its first outlet at bangalore. Today bangalore alone has a striking 19 outlets
which remain busy till late night.

pizza hut has 140 restaurants across 34 cities in India including metros. With its focus steadily on
quality and variety, pizza hut has given a new dimension to regular pizza eat-outs. However the
trifle higher prices may remain a concern for middle class Indians with lesser purchasing power
and disposable income. The status is steadily improving as more of us embrace fast foods to suit
the pace of our life.

Embracing Technology

Locating stores and placing orders has never been easier for pizza hut loyals. With their virtual
store kind website, pizza hut offers customers a wide range of options to choose from menu and
avail new offers. Now orders can also be placed through mobile phones. High end technologies
are used at the cash counters.

Across Socio-Cultural Barriers

Food has no language. Good food is appreciated across the globe. Pizza hut has outlets in a better
part of the world. It has taken immense effort to cater to its customers all over the world.

SEGMENTATION, TARGETING AND POSTIONING OF PIZZA HUT

Geographic

Region pizza hut outlets in different countries is a way of segmenting their market
according to region and finding out potential markets.

City they also segment the cities as class i, class ii, metros, small towns.

Demographic

32
 age under 10years, 10 to 18 years, 18 to 25 years, 25 to 40 years, 40+ years. amily
income middle class, upper middle class, high class dual income earners yes/no

Psychographic

socio-economic class urban

Behavioral

occasions birthdays, corporate lunches, marriages, parties, receptions loyalty status

low, medium, high user status first time, regular, non-user

PIZZA HUT MARKETING MIX (7Ps):

Product:

Pizza Hut is one of the leading pizza chain brands in the world. It is known to carry out
experiments and develop new products. In 1995, Pizza Hut introduced Stuffed Crust Pizza which
was one of the popular pizza. The products in the marketing mix of Pizza Hut cover cuisines like
Italian-American, pizza, pasta and buffalo wings. In 2008, it developed The Natural Pizza that
included natural ingredients and was sold in Dallas, United States. Regional differences in
products can be seen in dishes and bases suiting the taste and needs of the consumers. In 2001,
Pizza Hut developed a new pizza called Space Food that delivered pizzas to international space
station which was vacuum sealed. In India, to target customers who prefer vegetarian dishes,
Pizza Hut developed Tandoori Paneer Pizza, Country Feast, Exotica, Paneer Vegorama as their
signature dishes. The meal combos include customization features where the customers can
choose the toppings, crusts, sauces and ingredients. Other dishes by Pizza Hut include wings,
breadsticks, cheese sticks, fries, sauces, Pasta, Deserts and in exclusive partnership with Pepsico,
it is serving Pepsi, Diet Pepsi, Mountain Dew and Mist Twist.

Price:

33
Pizza hut is known for its competitive pricing, as known for its quality and high standards and it
has priced its products high in comparison to its competitors. In partnerships with Pepsico, Pizza
Hut provides product bundling, for combo meals. The premium pricing strategy has been
implemented by Pizza Hut to depict high quality in its products. In case of strong competition
from competition it reduces its prices so capture the market but not compromising on high
standards and service quality. The pricing strategy in the marketing mix of Pizza Hut also
depends on the size of the pizza ordered i.e. Small, Medium and the crust chosen. The
ingredients chosen and standardized across the country and similar service experience can be
seen from customers.

Place:

Pizza hut has over 13,000+ restaurants across the world and is expanding its reach rapidly. Pizzas
can be ordered online from its website and also it has partnered with sites delivering food with
lucrative offers for its customers. Pizza Huts international presence includes in countries of
North America, Europe and Asia. Its restaurants are designed for Family style in dine locations,
hybrid locations, bistro locations, college campuses theme parks and food courts. Apart from its
presence at various places, the place in the marketing mix of Pizza Hut also covers the home
delivery service. Pizza Hut offers home delivery option for customers ordering online with a time
gap of 30 minutes for delivery or scheduled delivery. Pizza Huts on time delivery and high
quality standards has helped achieve higher levels of satisfaction among customers. The pizza
process goes through standard procedure of making as per order received hence the process is
streamlined.

Promotion:

Pizza hut is known for advertising its products well hence its first tv commercial in 1965 was
Putt Putt to the Pizza Hut". The advertisement ran for 8 years on television and increased the
sales for the pizza hut franchise. Pizza Huts logo is inspired by the red rood building and in

34
early 2007, its advertising slogan was Gather round the good stuff and its current advertising
slogan is Make it great. The promotional strategy in the marketing mix of Pizza Hut focuses on
complete marketing campaigns via TV, print media, online ads etc. The sales promotion which
includes redeeming of coupons during checkout in online order has also helped increase in its
sales figures. In 2001-02 season Pizza hut was the shirt sponsor of the club Fulham F.C. and was
a sponsor of the Newcastle Vipers ice hockey for 2007/08 EIHL season. It also signed useful
sponsorship deals with American Airlines center, Dallas stars and Dallas Mavericks. Pizza Hut
also carries out promotional events on social media, and publishes advertisements on
newspapers, inserts in newspapers and tv advertisements.

Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing
mix of Pizza Hut.

People:

Pizza Hut is a people centric service brand, and focuses on customers and employees. To show
appreciation for customers, Pizza Hut introduced the Bell where the waiters greet customers
when he rings the bell. The people show affection for customers and focus on hygiene, follow
standard operating procedure, and are warm and display affection. Events such as birthdays are
celebrated in Pizza hut and are warmly greeted by the staff.

Physical Evidence:

Pizza Hut maintains a clean and hygienic environment in all stores and also attributed to its high
price it maintains high quality standards. The kitchen in Pizza Hut is properly maintained and
stringent quality control standards are adopted. To give an experience of luxury dining the
ambience is standardized across all outlets. The take away boxes, paper napkins etc are all
physical evidence of Pizza Hut.

Process:

35
Pizza Hut use state of the art machinery for production of freshly baked pizzas and other items.
Also some of the ingredients are imported from international vendors across all outlets to
maintain same standard quality. Pizza is prepared based on the order received either from online
ordering, telephonic call or given by customer in the restaurant itself. Pizza Hut also promises
30-minute delivery when order is placed. Hence, all these summarize the marketing mix of Pizza
Hut

MC DONALDS

McDonald's

Type Public

Traded as
NYSE: MCD

DJIA Component

S&P 100 Component

S&P 500 Component

ISIN US5801351017

Industry Restaurants

36
Genre Fast food restaurant

Founded McDonald's: May 15, 1940; 76 years ago

San Bernardino, California
McDonald's Corporation: April 15, 1955; 62 years ago
Des Plaines, Illinois

Founders McDonald's: Richard and Maurice McDonald

McDonald's Corporation: Ray Kroc

Headquarters Oak Brook, Illinois, U.S.(moving to Chicago in 2018)[1]

Number of locations About 36,900[2] (December 31, 2016)

Area served Worldwide

Key people
Andrew J. McKenna(Chairman)

Steve Easterbrook (Presidentand CEO)

Products Hamburgers
chicken
french fries
soft drinks
milkshakes
salads
desserts
coffee
breakfast

Revenue
US$ 24.622 billion (2016)[2]

Operating income
US$ 7.745 billion (2016)[2]

Net income
US$ 4.686 billion (2016)[2]

Total assets
US$ 31.024 billion (2016)[2]

37
Total equity
US$ 2.2043 billion (2016)[2]

Number of employees 375,000 (2016)[2]

Website [Link]/[Link]
[Link]/us/[Link]

HISTORY

The business began in 1940, with a restaurant opened by brothers Richard and Maurice
McDonald at 1398 North E Street at West 14th Street in San Bernardino,
California (at 34.1255N 117.2946W). Their introduction of the "Speedee Service System" in
1948 furthered the principles of the modern fast-food restaurant that the White Castle hamburger
chain had already put into practice more than two decades earlier. The first McDonald's with the
arches opened in Phoenix, Arizona in March 1953. The original mascot of McDonald's was a
man with a chef's hat on top of a hamburger-shaped head whose name was "Speedee". In 1962,
the Golden Arches replaced Speedee as the company symbol. A new mascot, Ronald McDonald,
was introduced in 1965. The clown-like man having puffed out costume legs served advertising
aimed at children.[6]

On May 4, 1961, McDonald's first filed for a U.S. trademark on the name "McDonald's" with the
description "Drive-In Restaurant Services", which continues to be renewed through the end of
December 2009. On September 13, 1961, the company filed for a trademark on a new logoan
overlapping, double-arched "M" symbol. By September 6, 1962, this M-symbol was temporarily
disfavored, when a trademark was filed for a single arch, shaped over many of the early
McDonald's restaurants in the early years. [clarification needed]
Although the "Golden Arches" logo
appeared in various forms, the present version as a letter "M" did not appear until November 18,
1968, when the company applied for a U.S. trademark.

The present corporation dates its founding to the opening of a franchised restaurant by
businessman Ray Kroc in Des Plaines, Illinois on April 15, 1955, the ninth McDonald's

38
restaurant overall; this location was demolished in 1984 after many remodels. Kroc later
purchased the McDonald brothers' equity in the company and led its worldwide expansion, and
the company became listed on the public stock markets ten years later. Kroc was also noted for
aggressive business practices, compelling the McDonald brothers to leave the fast-food industry.

Kroc and the McDonald brothers feuded over control of the business, as documented in Kroc's
autobiography. The San Bernardino restaurant was demolished in 1976 (1971, according to Juan
Pollo) and the site was sold to the Juan Pollo restaurant chain. This area now serves as
headquarters for the Juan Pollo chain, as well as a McDonald's and Route 66 museum. [7] With the
expansion of McDonald's into many international markets, the company has become a symbol
of globalization and the spread of the American way of life. Its prominence has also made it a
frequent topic of public debates about obesity, corporate ethics, and consumer responsibility.

CORPORATE OVERVIEW
Facts and figures

By 1993, McDonald's had sold more than 100 billion hamburgers. The once widespread
restaurant signs that boasted the number of sales, such as this one in Harlem, were left at "99
billion" because there was space for only two digits.

The McDonald's in Northport, Alabama commemorates U.S. President Ronald Reagan's visit

McDonald's restaurants are found in 120 countries and territories around the world and serve 68
million customers each day.[8][9]McDonald's operates 36,899 restaurants worldwide, employing
more than 375,000 people.[5][8] There are currently a total of 5,669 company-owned locations and
31,230 franchised locations, which includes 21,559 locations franchised to conventional

39
franchisees, 6,300 locations licensed to developmental licensees, and 3,371 locations licensed to
foreign affiliates, primarily Japan.[5]

Focusing on its core brand, McDonald's began divesting itself of other chains it had acquired
during the 1990s. The company owned a majority stake in Chipotle Mexican Grill until October
2006, when McDonald's fully divested from Chipotle through a stock exchange. [10][11]Until
December 2003, it also owned Donatos Pizza, and it owned a small share of Aroma Cafe from
1999 to 2001. On August 27, 2007, McDonald's sold Boston Market to Sun Capital Partners.[12]

Notably, McDonald's has increased shareholder dividends for 25 consecutive years, [13] making it
one of the S&P 500 Dividend Aristocrats.[14][15] In October 2012, its monthly sales fell for the first
time in nine years.[16] In 2014, its quarterly sales fell for the first time in seventeen years, when its
sales dropped for the entirety of 1997.[17]

In the United States, it is reported that drive-throughs account for 70 percent of sales. [18]
[19]
McDonald's plans to close 184 restaurants in the United States in 2015, which is 59 more than
it plans to open.[20][21] This is the first time McDonald's will have a net decrease in the number of
locations in the United States since 1970.[21]

BUSINESS MODEL

The company currently owns all of its property valued at an estimated $16 to $18 billion.
However, in recent times, there have been calls to spin off the company's US holdings into a
potential real estate investment trust. The company earns a significant portion of its revenue from
rental payments from franchisees. These rent payments rose 26 percent between 2010 and 2015,
accounting for one-fifth of the company's total revenue at the end of the period. [22] The company
announced at its investor conference on November 10, 2015, that it would not spin off its
property into a real-estate investment trust. The CEO, Steve Easterbrook discussed that pursuing
the REIT option would pose too large a risk to the company's business model.[23]

40
The McDonald's logo painted on the tail of a Crossair McDonnell Douglas MD-83 in 1999.

The United Kingdom and Ireland business model is different from the U.S, in that fewer than 30
percent of restaurants are franchised, with the majority under the ownership of the company.
McDonald's trains its franchisees and management at Hamburger University in Oak
Brook, Illinois.[24][25] In other countries, McDonald's restaurants are operated by joint ventures of
McDonald's Corporation and other, local entities or governments.[26]

According to Fast Food Nation by Eric Schlosser (2001), nearly one in eight workers in the U.S.
have at some time been employed by McDonald's. Employees are encouraged by McDonald's
Corp. to maintain their health by singing along to their favorite songs in order to relieve stress,
attending church services in order to have a lower blood pressure, and taking two vacations
annually in order to reduce risk for myocardial infarction.[27] Fast Food Nation also states that
McDonald's is the largest private operator of playgrounds in the U.S., as well as the single largest
purchaser of beef, pork, potatoes, and apples. The selection of meats McDonald's uses varies to
some extent based on the culture of the host country.

BOARD OF DIRECTORS

As of November 2014, the board of directors had the following members:

Andrew J. McKenna, chairman

41
 Susan E. Arnold, operating executive of Global Consumer & Retail Group of The Carlyle
Group

Robert A. Eckert, operating partner of Friedman Fleischer & Lowe

Enrique Hernandez, Jr., president and CEO of Inter-Con Security

Jeanne P. Jackson, president of product and merchandising for Nike, Inc.

Richard H. Lenny, operating partner of Friedman Fleischer & Lowe

Walter E. Massey, president of the School of the Art Institute of Chicago

Cary D. McMillan, CEO of True Partners Consulting LLC

Sheila A. Penrose, non-executive chairman of Jones Lang LaSalle

John W. Rogers, Jr, chairman and CEO of Ariel Investments

Roger W. Stone, chairman and CEO of KapStone Paper and Packaging

Don Thompson, president and CEO

Miles D. White, chairman and CEO of Abbott Laboratories

On March 1, 2017, after being chief brand officer of McDonald's and its former head in the UK

and northern Europe, Steve Easterbrook became CEO, succeeding Don Thompson, who stepped

down on January 28, 2017.

MARKETING STRATEGY OF MC DONALDS

42
 FRANCHISE MODLE As per franchise model of McDonald Only 15% of the total number
of restaurants are owned by the Company. The remaining 85% is operated by franchises. The
company follows all the framework of training and monitoring of its franchises to ensure that
they achieve good QUALITY SERVICE,CLEANLINESS AND VALUE FOR

THE MONEY offered by the company to its customers.

PRODUCT CONSISTENCY- By developing a sophisticated supplier networked operation

and distribution system, the company has been able to achieve consistent product taste and
quality across the nations of the world.

ACT LIKE RETAILER THINK LIKE A BRAND- McDonalds focuses not only on
delivering sales for the immediate present, but also protecting its long term brand reputation.

SEGMENTATION, TARGETING AND POSTIONING OF MC DONALDS

1) Demographic Segmentation: Kids, Family and Students

McDonalds offers different products like Happy Meal which includes a free toy for kids. For
families it has made different outlets and meals which are suitable for takeaways and drive-thru.
McDonalds has made its environment which is suitable for students of school to hang out with
their friends and can get their lunch at McDonalds.

2) Psychographic segmentation: Convenience and lifestyle

McDonalds has adopted itself according to the convenience and lifestyle of the Indian
consumers, as India has a huge vegetarian population so McDonalds came up with a different
and new product line which includes items like Mc Veggie burger and Mc Aloo tikki Burger.
They also made McDonalds as a place to relax and even for entertainment.

3) Behavioral segmentation: Occasions, for e.g. Birthday Parties of kids

43
McDonalds can get more customers by whom they can get most of the share of India Fast Food
Industry but they should emphasis on their Targeting technique.

MCDONALDS MARKETING MIX (5PS)

STRATEGY
Product:
McDonald's places considerable emphasis on developing a menu which customers want. Market
research establishes exactly what this is. However, customers' requirements change over time. In
order to meet these changes, McDonald's has introduced new products and phased out old ones,
and will continue to do so. Care is taken not to adversely affect the sales of one choice by

44
introducing a new choice, which will cannibalize sales from the existing one (trade off).
McDonald's knows that items on its menu will vary in popularity. Their ability to generate profits
will vary at different points in their cycle. In India McDonalds has a diversified product range
focusing more on the vegetarian products as most consumers in India are primarily vegetarian.
The happy meal for the children is a great seller among others.

McDonalds have to be very careful in India while growing their business. In India you go out
and you will get a ready to eat snacks and that too in a cheap price. So McDonalds has a direct
competition with Indian street fast food which has a many varieties and it is very popular
amongst the people. As Fast food industry has been very successful in India, both in financial
terms as well as in popularizing its quick service culture among the population.
.India's fast food industry is growing at 40% per annum and generates over Rs. 4800 cores in
sales. The multinational segment of the industry generates over Rs. 7000 crores. There are many
varieties of fast food in different states of India

Price:
The customer's perception of value is an important determinant of the price charged. Customers
draw their own mental picture of what a product is worth. A product is more than a physical
item; it also has psychological connotations for the customer. The danger of using low price as a
marketing tool is that the customer may feel that quality is being compromised. It is important
when deciding on price to be fully aware of the brand and its integrity.

In India the most authentic cuisine of India is the Indian street food, which can be bought only
for few rupees from the portable stalls found in the Indian cities and town. The street vendors
offer hot fresh, lip smacking snacks, which is very feeling. These foods are popular mainly
because they are available at half of the price of any restaurant food. Take-out food, junk food,
snacks and fast food are available easily and it doesn't take much time to prepare so it is very
quick in eating.

The Indian Street Food varies from region to region .The typical North Indian street food is
Chaat -a generic name for all tangy spicy not very nutritious delicacies. The tangy flavor comes
from the use of lemon, pomegranate seeds, black salt, tamarind, and various chutneys. Chaat can
be prepared with fruits like guava,banana ,papaya,apple [Link] of paapri ,which is crisp
pancakes made from fried flour with some out of yoghurt ,potatoes sauteed with black cumin
45
powder with some amount of "meetha and khatta chutney" (sweet and sour pickle) with a dash of
coriander becomes the lip smacking Paapri [Link] Pani Puri also called golgappa in some
places in India is another street delicacy. Pani puris are hollow crisp balls made from dough, and
filled as-you-eat with a spicy concoction of water and potatoes, topped by a choice of sweet or
spicy chutney and so on. In India in different region has their own different specialties and which
are easy to get it and cheap in price. So in India to compete with the Indian local street fast food,
McDonalds has to work hard to build its position and keep on competing and growing each day.

In India McDonalds classifies its products into 2 categories namely the branded affordability
(BA) and branded core value products (BCV). The BCV products mainly include the McVeggie
and McChicken burgers that cost Rs 50-60 and the BA products include McAloo tikki and
Chicken McGrill burgers which cost Rs 20-3 This has been done to satisfy consumers which
different price perceptions.

Value Ladder strategy:-

a) Started offering value meals in a range of prices.

b) Ensure affordability and attract widest section of customers.

c) Brought the customer and provided a range of entry level products.

d) Try those new items and graduate to higher-rungs.

e) E.g- if a customer starts with McAloo Tikki, he will finally graduate to McVeggie and so in
Non veg.

f) Helped its Volume business.

Aap ke zamane mein,

baap ke zamane ka daam (In English that means in your

Value Pricing: (Price in INR)

Promotion:

46
The promotions aspect of the marketing mix covers all types of marketing communications One
of the methods employed is advertising, Advertising is conducted on TV, radio, in cinema,
online, using poster sites and in the press for example in newspapers and magazines. Other
promotional methods include sales promotions, point of sale display, merchandising, direct mail,
loyalty schemes, door drops, etc. The skill in marketing communications is to develop a
campaign which uses several of these methods in a way that provides the most effective results.
For example, TV advertising makes people aware of a food item and press advertising provides
more detail. This may be supported by in-store promotions to get people to try the product and a
collectable promotional device to encourage them to keep on buying the item.

At McDonalds the prime focus is on targeting children. In happy meals too which are targeted at
children small toys are given along with the meal. Apart from this, various schemes for winning
prices by way of lucky draws and also scratch cards are given when an order is placed on the
various mean combos.

An activity, such as a sale or advertising campaign, designed to increase visibility or sales of a

product.

McDonalds, for years has maintained an extensive promotion strategy with highest spending on
marketing amongst all its competitors.

While advertising; focus on overall experience.

"Brand globally and act locally".

Overall it is doing what it does the best - marketing.

Intensive advertising aimed at children.

Paper mats on trays ensure that no new scheme goes unnoticed.

"I'm loving' it" is an international branding campaign which was launched in 2003 and has
proved to be its biggest success.

"aap ke zamaane mein baap ke zamaane ke daam" is a highly localized campaign which aimed at
attracting the masses through its happy price menu.

Place:

47
Place, as an element of the marketing mix, is not just about the physical location or distribution
points for products. It encompasses the management of a range of processes involved in bringing
products to the end consumer. McDonald's outlets are very evenly spread throughout the cities
making them very accessible. Drive in and drive through options make McDonald's products
further convenient to the consumers.

PEOPLE

McDonalds understands the importance of both its employees and its customers. It
understands the fact that a happy employee can serve well and result in a happy customer.
McDonald continuously does Internal Marketing because if the internal marketing is effective
it will automatically lead to in the success of external marketing.

Internal marketing includes hiring, training and motivating employees. In this way they can
easily serve customers and the result will be the smiling faces of the customers. The level of
importance has to be placed in the following order (the more important people are at the top):

1. Customers

2. Front line employees

3. Middle level managers

4. Front line managers

48
CHAPTER-3

OBJECTIVE

49
 OBJECTIVES

To analyze and identify the marketing strategies of the fast food joints in Lucknow.
To determine consumer preferences of the stated restaurants.
To find various ways to increase the sales of fast food retail outlets in Lucknow.
To study market potential of fast food retail outlets in Lucknow.

To understand the various challenges faced by these industry

CHAPTER-4
50
 RESEARCH METHDOLODY

RESERARCH METHADOLOGY

Research Methodology is the procedure adopted for conduction the research study. Research

Methodology should be carefully planned as the accuracy.

In it we study the various steps that are generally adopted by a researcher in studying his

research problem along with the logic behind them. It is necessary for the researcher to know not

only the research methods / techniques but also the methodology. It defines what the activity of

research is, how to proceed, how to measure progress, and what constitutes success.

It helps to understand not only the products of scientific inquiry but the process itself. It

aims to describe and analyze methods, throw light on their limitations and resources, clarify their

presuppositions and consequences, relating their potentialities the twilight zone at the frontier of

knowledge

BENEFITS OF RESEARCH METHADOLOGY

51
 Advancement of wealth of human knowledge.

Tool of Trade to carry out research; provide tools to looks at things objectively.

Develops a critical and scientific attitude, disciplined thinking or a bent of mind to

observe objectivity; skills of research will pay off in long particularly in the age of

information.

Enriches practitioner and his practices; provides chance to study a subject in depth;

Enable us to make intelligent decisions; understand the material which no other kind of

work can match.

Doing research is the best way to learn to read and think critically.

RESEARCH DESIGN

Research design specifies the methods and procedures for conducting a particular study. A

research design is the arrangement of conditions for collection and analysis of the Data in a

manner that aims to combine relevance to the research purpose with economy in procedure. I

have chosen the Descriptive research design.

Descriptive Research Design:

This research would include surveys and facts finding, enquires of different kinds. The major

purpose of descriptive research is that the research can only describe the state of affairs existing

at present in the organization. The main feature of this method is that the researcher has no

control over the external variables called the respondents as they are going to interview the

52
concerned people in order to perform study. They can only report what happened or what is

happening. In social science and business research, we quiet often use the terms ex-post facto

research for descriptive research studies, the researcher can discover and describe the causes for

various situations but they cannot control the situations.

METHOD OF DATA COLLECTION

In this research work, questionnaire method was used to collect the information. The complete

data has been collected from primary and secondary sources:

Primary Data

Through Questionnaire.

Secondary Data

Secondary data is what the researcher collects from different sources. The sources of Secondary

data are: -

Books
Internet

Past Records And Files

SAMPLE PLAN

Sample Design

The study used a simple random sampling. A sample design is a definite plan for obtaining a

sample from a given population. It refers to the technique or the procedure the researcher would

adopt in selecting items for the sample.

53
Sample size
Respondents were drawn using random tables & samples size chosen was:

100 PEOPLE

Universe

In this research the universe is Retail outlets of fast food joints in Lucknow. The Universe is a

complete, or the theoretically specified aggregation of study elements. It is usually the ideal

population to which research results are to be generalized.

Sample Area

MC Donalds, Dominos, and Pizza Hut outlets of Lucknow

CHATPTER-5

DATA ANALYSIS & INTERPRETATIONS

54
Analysis of Q-1 Have you ever heard of Mc Donalds, Dominos and Pizza Hut Outlets?

A. Yes
B. No

100

90 86

80

70

60

50

40

30

20 14
10

0
Yes No

55
Q-2 Through which media you are getting information about these outlets?

A. TV
B. News paper
C. Pamphlets
D. Other

45
40
40

35
30
30

25
20
20

15
10
10

0
TV News paper Pamplets Other

Q3. How often do you visit these outlets?

A. Weekly
B. Monthly

56
 C. Occasionally

45
40
40

35
30 30
30

25

20

15

10

0
Weekly Monthly Occasionally

Q4. How will you rate service quality at Mc Donalds, Dominos and Pizza Hut?

Mc Donalds Dominos Pizza Hut

A. Excellent
B. Good
C. Poor

57
 D. Satisfactory

40
35
35
32
30

25
22
20

15
11
10

0
Excellent Good Poor Satisfactory

Q5. How will you rank Mc Donalds, Dominos and Pizza Hut in terms of customer service?
A. Excellent
B. Good
C. Poor
D. Satisfactory

58
50
45
45

40 38

35

30

25

20

15

10 8 9

0
Excellent Good Poor Satisfactory

59
Q6 Will you recommend Mc Donalds, Dominos, and Pizza Hut to your colleagues, friends and
acquaintances?

A. Yes
B. No
C. May be

60

50
50

40

30
30

20
20

10

0
Yes No May Be

60
Q-7 On an average how much do you spend when you visit these outlets?

A. Below 100
B. 100-300
C. 300-600
D. 600 above

60

50
50

40

30
30

20
20

10
10

0
Below 100 100-300 300-600 600 above

Q8 With whom does you like to visit generally?

A. Friends
B. Family
C. Colleagues
D. Others

61
 50
46
45
40
35
30
25 24
20
20
15
10
10
5
0
Friends Family Colleagues Others

Q-9 On what basis would you generally prefers to visit these outlets?

A. Price
B. Place
C. Taste
D. Service

45
40
40

35
30
30

25

20 18

15 12
10

0
Price Place Taste Service

Q10 what do you think of competitive positioning and strategy about McDonalds, Dominos

62
 and Pizza Hut?

A. Excellent
B. Good
C. Poor
D. Satisfactory

40
37
35 33

30

25 23

20

15

10
7
5

0
Excellent Good Poor Satisfactory

63
Q11. How will you rank McDonalds, Dominos and Pizza Hut in terms of Quality product offerings?

A. Excellent
B. Good
C. Poor
D. Satisfactory

35 33

30 28

25
22

20

15
12

10

0
Excellent Good Poor Satisfactory

64
 CHAPTER6
SWOT ANALYSIS

65
SWOT ANALYSIS

DOMINOS

66
PIZZA HUT

67
MC DONALDS

68
 CHAPTER-7
LIMITATIONS

LIMITATION: -

1) Since the study is done in localizer area so the sample selected may not give true picture.
2) The time period allotted for the study was limited as it had to be completed with this

stipulated period of time so only three fast food joints were choosed.

69
 CHAPTER-8

RECOMMENDATION AND SUGESTION:

70
 RECOMMENDATION AND SUGESTION: -

The study highlights that the franchise companies do not issue the license to a latent

franchiser to open a new store, this problem should be minimized.

The fast food joints must have better service product, quality in their service and control

over the store management of individual chain stores.

It will be better if franchise wants a store license to open their store, the company help

them for locating the store, commodities supplies, personal training too.

The dining conditions have to be changed drastically if Dominos have to target the

premium segment of customers.

They are way behind Pizza Hut in the dining experience. Some of the Dominos

restaurants lack even basic amenities.

Due to this a condition can occur where customers judge the quality and the taste of the

pizza with respect to the restaurant environment and ambience.

Thus to have a greater market share and tap premium segment of the market, Dominos

provide good quality restaurants.

There should also be provision for music, TVs, kids zone etc in the restaurant.

71
 By doing this they can even charge a little bit more on the food items.

72
 CHAPTER-9
CONCLUSION

73
CONCLUSION: -

In the above discussion we reach to this point that by using different marketing strategy

Dominos, Pizza Hut and McDonalds food chain market can establish customer loyalty to our

customers. The reason behind this research is also express about the market status of Dominos,

Pizza Hut and McDonalds. Most of the customers purchase decision depends upon the quality of

the product and price of product. Time availability also affects their purchasing decisions. This

research also gives that how you need to behave to retain your customer and make them your

long term customer.

74
 BIBLIOGRAPHY

BIBLIOGRAPHY: -

Books:-

Kotler Philip, Marketing management 12th edition Pearson Education.

Research Methodology: Methods and Techniques Paperback

By C. R. Kothari

Ramaswamy V.S., Namakumari S. Marketing Management 3rd edition 2006 Macmillan

Publications.

75
 Websites: -

[Link]

[Link]

[Link]

CHAPTER-11
ANNEXURE

76
 QUESTIONNAIRE

Q-1 Which out the following Outlets you visit the most ?

a. Dominos ( )
b. Pizza Hut ( )
c. McDonalss ( )
d. Other ( )

Q-2 Through which media you are getting information about these outlets ?

a. TV
b. News paper
c. Pamphlets
d. Other

Q-3 Which outlet / joints will you recommend to your colleagues, friends and acquaintances?

a. Dominos ( )
b. Pizza Hut ( )
c. McDonalss ( )
d. Other ( )

Q-4 How many times one visit to a restaurant?

Q-5 How many times one visit to a restaurant?
Q-6 On an average how much many do you spend when you visit these outlets?

a. Below 100
b. 100-300
c. 300-600
d. 600 above

Q-7 With whom do you like to visit generally?

77
 a. Friends
b. Family
c. Colleagues
d. Others

Q-8 One what basis would you generally prefer to visit this outlets

a. Price 18
b. Place 12
c. Taste 40
d. Service 30

Q-9 According to you which outlets provides better service.

a. Pizza Hut 20
b. Dominos 25
c. Mc. Donalds 52

Q-10 Which outlet do you think has variety of products.

a. Pizza Hut 20
b. Dominos 24
c. Mc. Donalds 56

78