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FEAST ON THE RUN
DATE OF SUBMISSION:
8 TH FEB ‘10
SUBMITTED BY:
09020242007: DIVYA BODDU
09020242016: KAMLESH KUNHARA
09020242038: SAGAR SHINDE 09020242043: TEENA DEURI
09020242051: JYOTI JADHAV
INDEX
1.EXECUTIVE SUMMARY 1.1 1.1 OB OBJE JECT CTIV IVES ES 1.2 VISI VISION ON
2.SITUATION ANALYSIS AND SWOT 3.BUSINESS OBJECTIVES IN TERMS OF SALES AND PROFITS 4.MARKET ANALYSIS 4.1 INDUST INDUSTRIA RIAL L ANALYS ANALYSIS IS 4.2 COMPET COMPETITO ITOR R ANALYS ANALYSIS IS 4.3 STP
5.MARKETING 5. MARKETING STRATEGY OBJECTIVES AND IMPLEMENTATION 5.1 PRODU RODUCT CT 5.2 PLACE 5.3 PRICE 5.4 5.4 PROM PROMOT OTIO ION N
5.5 PEO EOP PLE 5.6 PROCE ROCESS SS 5.7 PHYSIC PHYSICAL AL EVIDEN EVIDENCE CE
6.FINANCIAL SUMMARY
1. EXECUT EXECUTIVE IVE SUM SUMMAR MARY: Y:
FAASO’S.
Feast on The Run… is a fast food chain in Pune that takes great pride in
serving the janta of today exotically tasting kebabs, kebab wraps, curries and rice platters. This janta This janta who has very little time to sit back and have a leisure pet-puja is more than happy with FAASO’S that delivers quick service of quality Indian fast food at affordable prices. Around 6 years back Mr. Jaideep Burman, a software engineer and a management graduate was so fascinated by a restaurant named “FASOS” somewhere in U.S. that he decided to open “FAASO’S” in India. After 3 years of Faaso’s success, Mr. Jaideep Burman sold his business to his friend Mr. Siddharth Joshi and is now settled in the U.S. In today’s competitive world, Faaso’s with its 8 outlets strategically located in Pune city is gradually making its place in the fast food retail industry. Faaso’s seldom takes part in any marketing activities and thus, this marketing plan has been prepared, particularly keeping in mind the 3 year old Faaso’s outlet at Hinjewadi.
1.1 OBJECTIV OBJE CTIVES: ES:
To establish a presence as a successful local fast food outlets and gain a market share in Indian fast food industry.
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To make Faaso’s the 1 st choice for grabbing a bite while on the run to colleges, offices or simply to savour the delicacies of the Indian Kababs.
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1.2 VISION:
To make Faaso’s the most successful Indian fast food outlet in India catering to the needs of the dynamic and fast paced, young population of India. The main focus here being able to serve quickly, high-quality food at a great value.
2. SITUATION ANALYSIS and SWOT:
Today, Today, Faaso’s has 8 outlets in Pune city- two at Aundh and one each in Kalyani Nagar, Model Model Colony Colony,, Baner, Baner, Kothru Kothrud d & Hinjew Hinjewadi adi (2 of them them being being franchi franchisees sees-- Baner Baner and Kothrud) with the main outlet at Aundh grossing a sales of 48 Lakhs per annum and the Hinjewadi outlet grossing a sales of 30 Lakhs per annum.
2.1 Strengths: •
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Faaso’s Hinjewadi outlet is strategically located with three IT giants –Cognizant, Wipro, Wipro, Infosy Infosyss and two gradua graduatio tion n and postpost- gradua graduatio tion n colleg colleges es – Symbio Symbiosis sis 2 Infotech campus, I IT in close proximity.
Faasos’s lives up to its tagline “Feast On The Run” and delivers a quick service just to see a customer smile.
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Faaso’s has to its pocket a variety of kababs and kabab wraps, parathas and rice combos, cutlets etc., so as to keep the customer excited to try out something new each time.
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Faaso’s has carefully priced its products, so as to cater to all the income groups present in the area, especially the student crowd.
2.2 Weaknesses: •
The organizational structure of Faaso’s is pretty much simple with one owner – Mr. Siddharth Joshi, two manager heads – Mr. Ganesh and Mr. Bishwajeet and rest being one outlet manager, manager, four cooks cooks and three to four delivery boys boys per outlet. There are about 11 personnel for warehouse operations at Aundh. Since the workforce is so less, especially the management force, the opportunity to manage the resources and sharing the management burden is lost.
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Faas Faaso’ o’ss chan change gess its its pric prices es only only once once in two two years years,, due due to whic which h larg largee pric pricee fluctuations in the market lead to high amount of expenditures and low profits.
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Low levels of cleanliness cleanliness and hygiene will always be a cause of worry for the kabab lovers.
2.3 Opportunities: •
Diversify Diversify into other fast food preparation preparationss like the Chinese Chinese (since there is no proper Chinese restaurant in this area), introduce salads as a healthy option, add the aroma of coffee to the menu.
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As most sales come from deliveries, proper management of deliveries can decrease the the amou amount nt of expe expend ndit itur ures es like like sala salary ry to deli delive very ry boys boys,, petr petrol ol bill billss etc. etc.,, thus thus increasing the margin of profit.
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“IF” high hygiene and cleanliness is maintained, the customers will choose Faaso’s over its local competitors and the recent food poisoning scene in Symbiosis gives an opportunity to for the same.
2.4 Threats: •
The thele- walas, alongside the colleges and IT companies, the bakery- Cakes and Bakes just adjacent to the outlet and the new restaurant restaurant Mudra Mudra at Hinjewadi Chowk has pulled down the sales of the Hinjewadi outlet by ~ 10 %.
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The recent food poisoning poisoning mishap at Symbiosis Symbiosis campus has alerted the students and also some of the IT crowd in consuming outside food.
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The youngsters today are becoming more and more health conscious. Keeping this in view, the kababs and deep fried cutlets may soon become out of place.
3. BUSINESS OBJECTIVES IN TERMS OF SALES AND PROFITS:
Faaso’s as such does not anticipate or set target sales or profit figures, since the turnout of the customers is highly fluctuating and depends upon the mood of the customer and availability of time.
4. MARKET ANAYSIS SUMMARY:
Consumer expenditures for fast food in India rose in past few months, followed by the recovery of Indian economy. The increasing number of new establishments such as fast food franchises, fancy restaurants and gourmet bakeries in India has shown a significant growth in this sector. This sector is growing fast enough due to more and more hectic schedules of the young workforce and more and more students staying outside their home/ hometown for their graduation/post graduation. Thus people of age group range 18 – 35 years are the main target market for a fast food restaurant. 4.1 INDUSTRIAL ANALYSIS
The fast food industry is the fastest growing sector in the food industry today. In India the emergence of nuclear family particularly in the urban area, exposure to global media and western cuisine and increasing number of females joining the workforce has changed the eating trends in the country. With the revival of consumer spending, the Indian fast food industry (values Rs 3,000 Crore) is expected to see addition of 70-100 new outlets this year (2010) against 30-50 outlets in 2009, 2009, as report reported ed by Business Standard. Standard. The intensive intensive focus on the increasing increasing number of stores in 2010 is based on analyst reports showing that franchise driven Indian fast food restaurant industry sales grew at a rate of 7%-20% in last one year (2009) on account of reasonable value meals and price points.
4.2 COMPETITOR ANALYSIS:
The sales of the Hinjewadi outlet has been affected by ~ 10 % due various thele-walas coming up near the colleges and IT offices, other fast food joints such as Cakes n’ Bakes, Mudra restaurant, Mc. Donald’s, Dominos, Cafe Coffee Day etc put up at various locations in Hinjewadi.
4.2.1 Thele-walas: Customers can choose from a wide range of products, starting from the chai to vada-pavs to maggi and omelette, with a minimum price of Rs. 5 to a maximum of Rs. 35. Moreover, most of them also keep cigarette packs. So people who wish to smoke and grab a bite prefer these thele-walas. thele-walas. One disadvantage they carry is the lack of hygiene. hygiene.
4.2.2 Cakes and Bakes: Cakes and Bakes located just adjacent to Faaso’s offers a range of products, which include cakes, pastries, puffs, momos, wraps, chips etc. The quality and taste of the items sold is not as good as it seems to be but nevertheless, it poses competition to Faaso’s w.r.t wraps.
4.2.3 Mudra Restaurant : Located near the Hinjewadi chowk, the newly renovated Mudra restaurant provides a whole range of veg and non veg snacks and also full-fledged meals. They also offer free home delivery in and around Hinjewadi area.
4.2.4 Mc. Donald’s: Mc Donald’s known for its pocket friendly and snacky burgers. They also offer one veg and one non veg wrap. Their fries are also quite popular among the youth. One disadvantage is that they have limited options as compared to other fast food joints. But one advantage is that hygiene conditions are well maintained in this franchisee and people can hang about in here.
4.2.5 Domino's Pizza : Domino's Pizza outlet in the Hinjewadi chowk is also an important compitotor for Faaso’s. Domino’s offers varities of pizzas in different sizes to suite the pocket of the customers. Also people get large numbers of combos to chose. Their chocolate preparation “Choco Lava” is also very famous among the customers.
4.3 SEGMNETATION TARGETING POSITIONING STRATEGIES: 4.3.1 Segmentation strategy: The primary market segment for the Hinjewadi Faaso’s outlet is the student student crowd here in Hinjewadi. Hinjewadi. This is because most students don’t feel like having having food in the college college cafeteria and also they have a knack for kababs and wraps as in general. general. Also students don’t wish to go till Mc. Donald’s or Dominos which is comparatively far off than Faaso’s.
The secondary market segment for the Hinjewadi Faaso’s outlet is the IT crowd, secondary because they already have some or the other tie ups with caterers to provide them something feasty. They basically flock around the thele-walas as they also provide cigarettes. Lastly, the residents of Hinjewadi and Wakad contribute to the market segment that Faaso’s caters.
4.3.2 Targeting strategy: Faaso’s intends to cater to the bulk of teenagers and youngsters in Pune. They They have chosen chosen this group for several several important important reasons. reasons. It is their goal to be "the extraordinary fast food place" and they believe that the age group from 15 to 25 is the primary age where brand building efforts could take place. They are on limited or fixed incomes and seek a value/price relationship that will not stretch their budgets.
Their secondary target is between the ages of 25 and 35, who are again on on the run to office or have very short breaks or are running home ( a long way to the city) . They are more flexible in budgets and seek more than a value/price relationship. One target targeting ing strate strategy gy that that Faaso’ Faaso’ss can use is by promot promoting ing themse themselve lvess in colleg colleges es by circulating pamphlets or offering some student discounts or participating in student fests. To target the IT professionals, Faaso’s can actually give them discount coupons or tie up with the office management to cater them whenever there is a small party or get-togethers in office premises itself ( these are more prevalent in IT sector). focus is to increa increase se custom customer er awarene awareness ss in the 4.3.3 4.3.3 Positioni Positioning ng strategy strategy:: The main focus surrounding community i.e Hinjewadi and Wakad and let people know what their primary object objective ive is. Their tagline tagline “Feast “Feast on The Run” actual actually ly holds holds true true in most most cases. cases. But continuing this image is rather a tough job. They will need to maintain the price of their products fairly, keep their standards high, and execute the concept so that “word-of-mouth” is the strongest marketing tool.
5. MARKETING STRATEGY: OBJECTIVES AND IMPLEMENTATION IMPLEMENTATION 5.1 PRODUCT: What Faaso’s already offers......... offers.........
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Faaso’ Faaso’ss offers offers 10 differ different ent types types of kababs kababs – chunks chunks of paneer paneer,, chicke chicken, n, mutton or fish to choose from, all marinated in exotic spices and grilled in charcoal barbeque. Faaso’s over the years has experimented with value addition to the barbequed succulent succulent kababs and today has 24, and growing, growing, varieties of kebab wraps veg and non-veg - all incredibly succulent and delicious. Faaso’s offers a wide range of meat and vegetables in various shapes, sizes and marinades, covered with breadcrumbs and deep fried, called fries and cutlets. Faaso’s, also came up with stuffed veg and non -veg parathas which is fast gaining popularity among the student crowd. Faaso’s has recently added to its menu some delicious curries and rice platters for the few people, mainly the student crowd who wish to just hang around and have a fun meal after a day’s hectic schedule. schedule. Faaso’s understands its customers and has come up with four, value for money combos. Faaso’s pays about 5 Rs. from its pocket for these combos. The choice of combinations for introducing combos is however restricted my terms and conditions set by coke.
What Faaso’s could ALSO offer......... offer.........
The youngsters today have become somewhat health conscious and hence demand a more healthy platters. Faaso’s thus could as well offer tossed salads or baked/steamed products and fruit juices etc.
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Since cold coffee is in vogue vogue among youngsters youngsters,, Faaso’s may choose choose to introduce it too. •
Faaso’s should adopt the use of healthier and trans free oil for their preparations. •
Faas Faaso’ o’ss may may as well well foll follow ow the the Subw Subway ay rout routin ine, e, allo allowi wing ng the the customers to choose the sauces like mayonnaise, chilly sauce etc of their choice to be used in preparation of its most fast moving products – wraps.
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5.2 PLACE What Faaso’s offers:
Faaso’ Faaso’ss is locate located d in close close proximi proximity ty of many many IT compan companies ies like like Cogniz Cognizant ant,, Infosy Infosys, s, Wipro, Wipro, Tata Tata Techno Technolog logies ies ,Starn ,Starnet et and educat education ional al institutes like Symbiosis and I2IT . •
Also there are 2 ATMs and an Archie’s shop near the outlet. So any one coming to withdraw money or buying gifts is easily tempted to have something there. •
Major portion of sales comes from delivery orders .These delivery orders can be placed through telephone or through internet on the website www.mealaroundme.com.. Faaso’s of Hinjewadi, delivers to the customers www.mealaroundme.com of Hinjewadi as well as Wakad. The delivery time varies from 20-30min. The means of transport being scooters.
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What Faaso’s could also do: •
There are no recommendations in this regard.
5.3 PRICE The pricing strategy that Faaso’s currently follows: •
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Faaso’s Hinjewadi outlet makes about 2-2.5 lakh sales per month. In which about 80-85 % goes for the expenditures like raw materials, salaries and wages, over heads both admin and sales. Thus Faaso’s makes sure that its prices are always 15- 20% above the expenditures they incur. Faaso’s Faaso’s revises its prices once in 18 or 24 months, months, whichever whichever fulfils the need of keeping up with the profit margins. The price of most products are economically viable and is friendly with almost all income groups in the area especially the student crowd as almost 70% of the sales are made to satisfy the needs of the student crowd. The wraps are priced at an average of Rs. 50, kabas – Rs. 80, fries and cutlets – Rs. 40.
The pricing strategy that Faaso’s may follow: •
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Since 2 years span sees a lot of commodity market fluctuations, and sometimes very extreme, Faaso’s should adopt changing its prices a little more frequently if not wanting to adopt a new product which can be offered on same price and avoiding the product that causes high expenditures. Faaso’s may also adopt changing the prices in batches if not all at once. It is also recommended that Faaso’s also decrease the prices of a particular product if the sales of it are too high and can compensate for extra expenditure or if the price of raw materials for that product falls invariably.
5.4 PROMOTION What Faaso’s already does...
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Faaso’s doesn’t actually spend much on promotional activities.
Never Neverthe theles less, s, Faaso’ Faaso’ss attract attractss custom customers ers by allowi allowing ng them them to pay through coupon system. Faaso’s has tied up with Sodex passes and ticket restaurant. •
Recently they started offering discount coupons of Rs.25/- for INOX on purchase of 600ml Coke. This is not its own promotional strategy but coke’s. Nevertheless, gains an advantage since customers are tempted to buy more to simply get these coupons.
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What Faaso’s could ALSO do.........
Faaso’s could put up stalls in college campuses of Symbiosis and I2IT during fests etc. •
Faaso’ Faaso’ss could could give give some some season seasonal al discou discounts nts like on diwali diwali,, holi holi , Friendship day etc •
From time to time they could come out with some scratch and win offers for customers having order amounting more than Rs. 300.
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Faaso’s should upgrade its website, conduct recipe contests etc.
5.5 PEOPLE Current personnel of Faaso’s: •
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Curren Currently tly there are 8 employ employees ees workin working g in the Hinjewadi Hinjewadi outlet outlet with with 1 manager, manager, 4 cooks and 3 delivery delivery boys. The cooks essentially essentially trained trained so as to keep the originality originality of dishes dishes intact. The manager manager and delivery boys are also trained to an extent in case of self outlets. While in the case of franchisee, only the cooks are trained by Faaso’s management. If we see the overall organizational structure of Faaso’s (all outlets incl.), per perso sonn nnel el for for mana manage geme ment nt are are very very few. few. And And henc hence, e, the the burd burden en of management increases.
Customer expectation from personnel: •
Recruiting the right staff and training them appropriately in the delivery of thei theirr serv servic icee is esse essent ntia iall if the the orga organi nisa sati tion on want wantss to obta obtain in a form form of competitive advantage.
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The staff should therefore be trained so that they take orders, cook and deliver efficiently.
The personnel must be trained as to how they should behave or respond to the customers ,the staff should always be enthusiastic and friendly jus as in the case of Mc. Donald’s
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5.6 PROCESS •
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At present the Hinjewadi outlet has one oven,2 tawas and one refrigerator. Fasso’s can increase the number of ovens, barbeques in their kitchen so as to speed up the preparation process and therefore speeding up delivery process.
5.7 PHYSICAL EVIDENCE What was observed.... •
The place is quite congested, as it is beside main road- noise, dust disturbs the customers.
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The place is crowded in rush hours.
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No proper cleanliness cleanliness as flies, mosquitoes mosquitoes are predominan predominantly tly observed observed at the tables.
What Faaso’s can implement... •
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Change the seating arrangements so that there is enough space and also the number of customers that can be accommodated is also more. Use of shade curtains on the side parallel to road so as to avoid dust and direct sunlight, which also increases the ambience of the place. Proper Proper cleanliness cleanliness and hygiene must be maintained so that the customers are taken into confidence that things like food poisoning etc do not happen when feasting.
6. FINANCIAL SUMMARY
The above mentioned strategies and other probable implementations when distributed along a time line starting from 2010 and ending in 2012, we have assumed will give about 25 % growth to the monthly sales Faaso’s makes.
For 2010
1. INTRODUCE INTRODUCE TEA, TEA, COFFEE COFFEE,, FRUIT JUICES JUICES,, AND SALADS SALADS IN IN THE MENU. MENU. 2. USE OF HEALTHIER HEALTHIER OILS OILS AND AND INGREDIEN INGREDIENTS TS IN MAKING MAKING OF THE THE DISHES DISHES 3. INCREA INCREASE SE AWARE AWARENES NESS S BY MEANS MEANS OF PAMPH PAMPHLE LETS TS 4. TRAINING TRAINING OF STAFF STAFF TO TO RESPO RESPOND ND WELL TO THE CUSTOMERS CUSTOMERS 5. CALL FOR HYGIENE, HYGIENE, CLEANLINE CLEANLINESS SS AND AND DUST DUST FREE FREE ZONE ZONE
For 2011
1. TAKE PART IN THE THE STUDEN STUDENT T FESTS FESTS ETC ETC IN COLLEGES COLLEGES 2. GIVE GIVE SEASO SEASONAL NAL DISC DISCOUN OUNTS TS TO TO STUDEN STUDENTS TS 3. COLL COLLAB ABOR ORAT ATE E WI WITH TH IT COMP COMPAN ANIE IES S TO BE THER THERE E IN THEI THEIR R PART PARTY Y TIME 4. INTR INTROD ODUC UCE E VARIO VARIOUS US COMB COMBOS OS.. 5. UPGRADE THE WEBSITE WWW.FAASO’S.COM
For 2012 1. INTRODUCE TAKING ORDERS ON WWW.FAASO’S.COM
2. ALLO ALLOW W USER USERS S OF WEBS WEBSIT ITE E TO SUBM SUBMIT IT THEI THEIR R FAVO FAVOUR URIT ITE E RECI RECIPI PIES ES AND KITCHEN TIPS (AS A CONTEST) 3. CONTIN CONTINUE UE WITH PROMOTI PROMOTIONA ONAL L ACTIVITE ACTIVITES S OF PREVIO PREVIOUS US YEARS YEARS LIKE LIKE COLLEGE FESTS, SEASONAL DISCOUNTS ETC 4. INTROD INTRODUCE UCE CHIN CHINESE ESE FAST FAST FOOD FOOD IN THE THE MENU. MENU.
Sales in Rs. Lakhs
Monthly sales Annual sales Expenditure (80%)
Forecasted years (25 % growth) 20 09 20 10 2 01 1 20 12 2.5 3.125 3.907 4 .8 8 4 46.88 30 37.5 4 5 8 .6 0 8 37.50 24 30 7 4 6 .8 8 6
Gross Profit
6
7.5
9.377
1 1 .7 2 2
References 1. Intera Interacti ction on with with Mr. Ganesh Ganesh Gaikwa Gaikwad d (mana (managi ging ng head) head) on
phone [ 2. Interactio Interaction n with Mr. Bishwaj Bishwajeet eet (managi (managing ng head) in person person [ 3. Interactio Interaction n with Hinjewa Hinjewadi di outlet outlet staff in in person person [ 4. www.faasos.com