Indians are showing a growing appetite for eating out and faster eating options with he Indian fast-food market Environment of Indian market Indian consumers are shifting from the concept of traditional home cooked meal to dining out. International and domestic fast-food chains are growing rapidly in India.
There is a substantial growth in the availability of varied cuisines in India. About of Indian’s current population is younger than 30 years old and are welcoming all international brands. Fast food has gained acceptance after the various international food chains adapted their menu’s according to the local Indian taste, that is including vegetarian options. Foreign brands have grabbed 63% share of the Indian quick service restaurants market.
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Objectives Short term – Open the first Grill’s restaurant In Bangor, Achieve profit after first operating year and Promote healthy eating Medium and long term – Achieve a 20% return on capital, Open 2 more restaurants of Grill’s in other cities and make Grill’s burgers the preferred brand for 20-arrear old upper middle-class Bankrolling and Indians. Target Market/Segmentation The target market for Grill’s in India will be young 20-35 year olds with middle to upper class socio economic background. With the current environment for nouns Indians of this background adapting to a more western lifestyle they are the prime target for a fast western food chain. Bengal is a city that encourages new international ventures, promotes leisure and has a lot of diversity and therefore provides a prime segment for Grill’s.
Mode of entry Grill’s is expanding to India with standalone entry method or wholly owned subsidiary where the complete procedure of opening a store from scratch will be looked after by the Grill’s management which includes investments, training staff, site inspection, advertising, legal procedures and setting up the assistant. Our ownership share would be 100%. Finances The finances were sanctioned and authorized by the Head office of Grill’s for the opening of new restaurant in Bangor India is $235,000 add.
Grill’s is an Australian business specializing in serving healthy, quality burgers. Starting with one restaurant in 2004 in Hawthorn Melbourne, the company now has 67 restaurants across the country and has seen it establish itself as Australia’s fastest growing premium burger chain. Due to its success Grill’s is looking at expanding its operation overseas. This report outlines a plan for Grill’s to open its first international restaurant abroad in India.
Situation analysis As can be seen in the SOOT analysis in Appendix 1, Grill’s has many strengths and opportunities that sees it equip for growing its business with strong branding, an established good reputation, and a quality product that sees it as a stand out in the Australian fast food market. There is also prime opportunity to see the business not only focus on its healthy fast food service but also develop itself as a dine in experience that will see it reach new target segments and markets not only in Australia but abroad. The Indian fast-food market is an attractive proposition with the countries the Indian fast-food market “forecast to have a volume of 81 ,036. 6 million transactions, an increase of 37. 9% since 2011″ (2012, p. 1 2).A change in lifestyle is contributing to this trend along with increasing prosperity ‘the country’s agricultural System has become both self-sufficient and efficient” (Knows, 2013).
This modernizing of the agricultural and business supply system along with changing habits and growing demands makes India an attractive prospect for a western food chain such as Grill’s. Economic Environment Even though India is facing an economic slowdown, Indian consumers are shifting from the concept of traditional home cooked meals to dining out. This shift is due to an increase in the per capita income, involvement of women in the workforce and the impact of western culture. International and domestic fast-food chains are growing rapidly, catering to Indian’s young and increasingly wealthy population.Indian’s quick-service restaurant (USSR) business is expected to double in just three years, from RSI 34 bin in 2012-13 to around RSI 70 bin in 2015-16 (Mortar, 2011).
Every industry has faced manpower issues, the required employees should have specific skill set such as fluency in English and basic knowledge of the hospitality sector and recent growth Of the organized food Sector in India and globalization has encouraged students and other individual to enter into hotel management industry. Social Environment Bangor, being the IT hub is responsible for the changing lifestyle of not only men but also affected the women population of India to a great extent.With increasing awareness, globalization and the great impact of education, a high proportion of women are now in the workforce. Liberation’s of the Indian economy post ass’s and the entry of international brands have significantly changed the lifestyle and food habits of the Indian population. About 60% of Indian’s current population is younger than 30 years old and are welcoming all international brands (Trial, 2008). “The rapid growth of the organized food sector in India is a sign of higher incomes and busy routines” (Knows, P. 2013).
Fast food has gained acceptance after the various international food chains altered their menu’s according to the local Indian taste mainly emphasizing on vegetarian options and local ingredients.Industry Environment The organized segment is dominated by restaurants in India, both full service and quick service (40%), followed by cafes, pubs, clubs, and bars (31 takeouts/home delivery formats (17%), and hotels (9%). Foreign brands have grabbed 63% share of the Indian USSR market since McDonald’s opened its first Indian outlet in 1996 (Canadian, 2013). The unrecognized segment consists Of individuals selling Of ready-to-eat food through food carts and street stalls. The USSR market in India is dominated by global players like Domino’s Pizza, McDonald’s, Pizza Hut and KEF, which are main competitors s well. They have been a huge success in the big metropolitan cities like New Delhi, Iambi, Achaean, Calcutta and Bengal. Domino’s Pizza (US), which recently opened its 60th restaurant in India, says India is its fastest-growing market.
Technical environment In today’s highly technical environment, Indian customers are accompanying the changes like mobile APS for order booking, payment method through mobile along with some more innovations which can be like: 1. Touchstones vendors allow patrons to use Pads to place their orders which include Tablet menu & Mobile Ordering. . Social Media & Games while waiting for their respective orders.
3. Online Coupons & promotional schemes 4. Pre-ordering takeaway food before arriving 5. Online management system for stock, signaling for replenishment of stock. Political environment Basic areas that regulate and affect every business directly or indirectly 1 . Commercial registration, 2.
Action, 3. Labor standards and social security contributions, 4. Health and safety requirements and 5.
Specific operational permits and licenses Different laws govern the food processing sector in India. The prevailing laws ND standards adopted by the Government to verify the quality of food and drugs is one of the best in the world. Prevention of Food Adulteration Act (PEA), 1954 and rules (Ministry of Health & family Welfare) 1 At present, no industrial license is required for almost all of the food & agriculture processing industries except for some items like: beer, potable alcohol & wines, cane sugar, hydrogenated animal fats & oils etc.Custom duty rates have been substantially reduced on plant & equipment, as well as on raw materials and intermediates, especially for export production. (Kumar – Food recessing industry in India) Export (Quality Control and Inspection) Act, 19632 Objectives Mission statement “Grill’s has a simple mission – to make burgers good and Healthy.
We want our burgers to taste good and do you good. We challenge the idea of burgers being low in nutritional value and high in fat. This means we make burgers the old-fashioned way, not the mass- produced, fast food way. Our burgers are proper meals, not rubbery snacks that dissolve in seconds” (Grill’s, 2014).Short Term Objectives – Open the first Grill’s restaurant in Bangor India by end of 2015 – Achieve 10% profit after first operating year Promote healthy eating among consumers in Bangor through promotional activities – Have 150 – 200 orders a day with main promotion through “word of mouth” referencing method Medium Term Objectives – Achieve a 20% return on capital invested after two years in the market – Reach 1 0,000 young people in the Bangor region through online strategies – Have 2 more restaurants of Grill’s in the metropolitan cities of India I.
E Iambi and New Delhi. Long Term Objectives – Make Grill’s burgers the preferred brand for 20-35 year old upper middle- class Bandoleers and Indians – Have grilled restaurants in every major city n India by the end of 2020 – Introduce franchising of new restaurants by 2020 Target Market/Segmentation to upper class socio-economic background. With the current environment for are the prime target for a fast western food chain such as Grill’s.
According to research into Indian eating habits “consumers’ preferences for eating-out were significantly more prominent in those individuals who were young, educated, employed and belonging to higher income groups of households” (All & Nathan, 2013). The trend of young urban Indians moving towards a face paced lifestyle is seeing demand for eating out and faster food services Urban Indians are among the top 10 regular consumers of fast food across the globe” (All & Nathan, 2013). However there is still demand for the restaurant style of dining also preferred in India, making Grill’s an attractive option to this market as it offers a mix of fast-food and a dine-in experience “eating out has become a part of the busy lifestyle and a fashion statement” (All & Nathan, 2013). Segmentation regarding Grill’s burgers in India has been done according to four broad categories.These different market segments determine which segment is attracted to our products and will be our potential customers. Based on the outcome of the segmentation we can derive a plan accordingly.
Geographic Collecting information according to location and dividing consumers based on geographic position. In this case the segment chosen based on geographic segmentation is Bengal. The reasons for such segmentation are: 1. Bengal is a city that encourages new international ventures 2.
The city promotes a lot Of leisure for the citizens Of the city 3. There is a lot of diversity present which enhances the profitability of the proposed business plan. 4. It is a metropolitan city with some of Indian’s best Universities and collegesDemographic As a small business for a start, our goal is to provide customers our products and best services that fulfils their needs and wants. Based on the research of the given market in Bengal there are certain demographics that represent the ideal customers in the market: a) Income level – The pricing strategy developed for the restaurant will be for the upper-middle class. The products at Grill’s are priced higher than the other fast food restaurants. The restaurant is ideal for dine-in and quality food.
Not being a complete fast food restaurant our products will be expensive, delivering the respective quality and services. B) Age – The target age for our restaurant lies between 18-35.The restaurant is something which is very contemporary and will be liked by customers who are in the loop of the present generation. C) Race, religion, habits etc. – The restaurant is completely diversified and is ideal for any customer who likes food.
But when it comes to the eating habits of the consumers, it is ideal for non-vegetarians as we have a wide range of items in the menu for non-vegans. Cryptographic This criteria focuses on interests, attitudes, and opinions. Based on this Grill’s can focus on customers who are interested to dine out or do not have time to cook at home. People interested in having a good meal which not only tastes good but also is healthy.In this case we can target customers who are interested to eat healthy food and have a delicious meal without thinking twice.
Consumers who favor the international food chains like McDonald’s, KEF, Hungry Jacks, Pizza Hut etc. Will be interested in having a burger at ‘Grill’s’ which in a renowned Australian brand. Behavioral A more focused form of market segmentation that groups consumers based n specific behavioral patterns they display when making purchasing decisions. In this case: – Consumers that are inclined to the western culture and food habits – Consumers who want to have a quick meal and think that eating outside is better than cooking at home. People who do not mind spending more money for a quality meal -Customers who are willing to try new food in the market and encourage new restaurants in their cities Positioning According to the above information Grill’s will position itself as a young, modern, fun and gourmet fast food burger restaurant that not only provides takeaway option but also serves as a hang out place for groups of young Indians. The quality gourmet burger options that it offers as well as its restaurant fittings will differentiate it from the other western fast food burger options and will be marketed to the urban upper middle class segment as a healthier, swankier take away option as well as a place to eat out at with friends.Strategy and Implementation Mode Of entry Companies can have a variety of options for entering into a foreign market that is directly related with cost, risk & control measures taken by them.
Entry Mode is one of the strategic decisions that must be taken very carefully. Grill’s will expand into India with standalone entry method or wholly owned subsidiary where the firm have a capability to sustain the capital risk and comfort fly acquire the local knowledge. The management is solely responsible for all positive and negative attributes that can affect the company. Ownership share would be 100% as all operations and profits are enjoyed from the head office in Australia.
This sort of entry method helps the head office to always have supervision and control over their first store in a very potential profitable market and nation. Investment and risk is high in this process, taking into consideration: I) legal & political scenario of India ii) possibility of our customers being satisfied with our products which will intern make them recurring customers Initially Grill’s will start with acquisition I. E. Will purchase existing machinery and operations under their name only.
Through this strategy method, the cost is slightly reduced and speed for returns on investment increases by taking location advantages (Meyer).Product While western food is rising in popularity there are still cultural taste factors that need to be taken into consideration for Grill’s. Adaptation strategy will be used and implemented by modifying the menu to adjust to local tastes and cultural expectations. The menu will consist of all of Grill’s current non-beef offerings including its chicken, Iamb and vegetable patty burgers along with its salad and fries side offerings. However there will be a greater emphasis on these beef free options along with an extension of its vegetable offerings to accustom to the preference for non-beef meals in India. There will also be a small beef selection to provide for the increasing demand and tendency for beef eating among young Indians.
PriceAs Grill’s is positioning itself as a high quality and high end burger offering the price needs to reflect this image and also help in appealing to the target consumer. Going rate strategy will be used for Grill’s in Bangor. This is where the prices will match that of the companies nearest competitors to ensure that while the product will come across as quality it will still serve as a better option than that of its equals. Grill’s will implement this strategy by generating its pricing from its dine-in higher end competitors who also offer burger meals. The base prices for each burger will be between 250-300 INN. This is taken from competitors such as ‘Ice & Spice’ and ‘Hard Rock Cafe©’ pricing.
Place The first Grill’s restaurant in India will be opened in Forum Shopping Centre Grammarian, Bangor.