study on marketing strategies of fast food joints in india

8/10/2019 Study on Marketing Strategies of Fast Food Joints in India

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Study on marketing strategies of fast food joints inIndia

Submitted By:

Nivedita ShambhaviBcom(Hons)

Enrollment No: A7004612089

Under guidance of:

Dr.Shaili VaderaAssistant ProfessorABS, Lucknow

DISSERTATION REPORT IN PARTIALL FULFILLMENT OF THEAWARD OF FULL TIME. BCOM HONS (2012-15)

AMITY BUSINESS SCHOOLAMITY UNIVERSITY UTTAR PRADESH LUCKNOW


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INTRODUCTION

Origin of the fast food joints in IndiaTraditionally over the ages, fast food for the average Indian customermeant aving breads i.e. paranthas, rotis etc. with sabzi or achaar. Thesewere the traditionally available snaks or in the for of samosas etc. All theitems were available at the roadside dhabas or the local sweet shops.There were no established eating places or resturants for the averageIndians customer.

It was the Nirulas family way back in 1920's that started the trend ofopening good eating places in the city. Nirulas Initially when they

entered the resturant business, were more into catering and hotelmanagement. It was only in the late 50's and early 60's that they had a pastry shop, snack place and hot shop. This started the trend of eating joints in the city and over the country. Nirulas was considered to be the pioneer in fast food business. seeing its success in the country other localfast food joints and restaurants started coming up in 80's.

With the coming up of these local joints Nirulas was not left behind. Ithad a well-established fast food chain over the next decacde. Howeverseeing the potential in the country in the 90's due to the changing lifestyles, the established chains world over made their enrty into the indianfood market. However the taste and the style of the kind of food whichthese MNC's we offering the Indian customers has been mae familiar tohim by Nirula's only.

Although the concept was introduced to the Indians way back, but in thetrue sense maret for fast food has been developed only after the entry thevarious MNC's starting with Wimpys to McDonald's, Pizza Hut, Subwayetc. with more to come over the next few years.


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THE INDIAN FAST FOOD JOINTS - AN OVERVIEW

Upto the year 1995 Indian food market was predominantly dominated bythe traditional dhabas, potential restaurants in the customer's colony andsome restaurants in a five star hotel. Having fast food i.e. burgers, pizzasetc, was considered to be an option for eating out. It was not at allsynonymous with the American concept of fast food as a quick takeaway 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 existingin the country with its restaurants expanding with every passing yearsince its inception. it has been almost 50 years now since its set up andthere is hardly any one who doesnot now that the Nirula's exists. Nirula'swas the first one to bring fast food to India back in the 50's since then ithas evolved into an eating place with a tremendous brand equity andBrand recognition. It proved to be a prefect eating place for an averagemiddle class who wants to eat out an affordable price who cant affordthe five star restaurants and would not want to go to the ocal 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 groupto upper class group can go to eat out. its popularity has increased overthe decades. with the trends changing and the incomes rising almostanybody who can afford to eat out could go for a snack at Nirula's.


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However the year 199-96 witnessed a drastic change. 1996 is consideredto be the year of India's entry into the world food market. Internationalgiants such as McDonalds, KFC, Subway, Dominos, Pizza Hut all

bombarded the Indian food market.

Before these, UK-based joint called Wipmys had established its chain inthe country in 1990. by year 1996 it had bout three to four jointsestablished in Delhi. However it did not poe much of threat to Nirula'sreason being lack of variety and that Wimpys was looed more of ahangout place rather than eating out with family.

It has been the American international giants i.e. McDonalds, Pizza Hut,Subway etc., who have targeted their restaurants to the families. Apartfrom the foreign and Indian fast food chains setting up shop, there are arange of specialty restaurants offering varied fare such as Chinese,Mexican, French, Italian etc. These places however offer range of itemsdifferent from burgers, pizzas etc. but they definitely are competition to

both foreign and Indian fast food chains. However, restaurants businessis such wchich is surrounded by thrat from everywhere be it Indian ointsor foreign joints.

It is only these international oints and speciality restaurants which aregradually coming up and some Indian restaurants which have made upthe food market. prior to this was only the local restaurants that becamevisible while passing by or through local banners etc., and the five starrestaurants were for the elite class out of reach by the average middleclass customer. there was hardly any awareness or promotion to beatcompetetion.


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Each of the foreign food joints that have come into the country has theirown strategy lined up to differ from the rest. Each of the studied theIndian tastes and style and thereby targeted the Indian customer. An

average Indian restaurants goes is no convince eater, unlike theAmericans.

if he is paying, he is paying for food that taste good ( Spicy, soft, savoryetc.), not for how pleasantly the stuff is served or how spotless thewidows are. He wants food for that can make him come bac to therestaurants. An Indian food joints owner would definitely understandthis but an American company, which comes and places it directly

without knowing the customers is definitely in for trouble. customerloyalty in a restaurant business is essential low

A customer when he comes to a restaurant usually looks at the quality offoo, variety, ambience, speed of delivery and the location. The varietywould influence the frequency of visits since taste is a dominating factorto 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 tospend because different members order large variety of dishes.

Each of these restaurants delivers quality, value and services in its ownway through its line of strategies. The emphasis is on the value that therestaurants is delivered to the customers .


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The Indian fast food industry has evolved over time and always has beenin line with the needs of people of all ages and segments. There areenterprises which scale from one room outlet to a chain having hundredsof outlets like McDonalds in India.

As per new research report Indian Fast Food Market Analysis , Indiais 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 inmaking their presence felt in the country and most of them posting anappreciable growth.

Although the market has witnessed robust growth in the past couple ofyears, it remains largely under penetrated and concentrated in themetropolitan cities. However, there is large room for growth in tier-IIcities, tier-III cities which are mostly untapped. Therefore, the future ofIndian fast food industry lies in masses that live in tier-II and tier-IIIcities.

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 averagerate of 7.6 per cent annually from 2008 to 2010 and this is expected torise 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 makingtheir presence felt in the country and most of them are postingappreciable growth.


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It is estimated through the Euro monitor International and Credit SuisseEmerging Consumer Survey, that the average Indian spends just $ 11 ascompared to his Chinese counterpart who would ideally spend $ 20 on

fast food.

Yet , if we see the Indian spending on food in totality , they spend 23 %of their earnings on the same while the Chinese spending is 20 %. So,the inference that can be drawn is that owing to the eating pattern ofIndians they prefer to eat at home and would spend on cooking

ingredients over fast food.

However, this does not spell good news for the industry. It is set towitness the entry of new fast food players that plan to hit the Indianmarket with a vengeance with international giants like Dunkin Donutsand Starbucks being amongst them.


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OBJECTIVES

To analyze and identify the marketing strategies of the two fast food joints in India.

a. McDonalds b. Subway

analysis of the above two restaurants.

a. Percentage wise consumer preferences

b. frequency of visit at each of the stated restaurants.

c. Identifying unique factors that attracts people to the stated restaurants.


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An Overview

Despite global slowdown, Indian economy is resurgent and offers freshopportunities as well as challenges to global players. McDonalds stilltreats the Indian market as one of their young markets although whatthey have achieved in 15 years here, it would usually take them 25 to 30years in another market. McDonalds philosophy of Quality, Service,Cleanliness and Value (QSC&V) is the guiding force behind its stellarservice to the customers.

However there is still a huge potential in the Indian food market thatremains untapped in terms of family restaurants, quick servicerestaurants and breakfast eateries. Coming in the wake of these, theirrebranding effort requires much more than a mere change of the logo orsignage. There is a need to critically evaluate the right marketing mix.The article is focused upon assessing the marketing efforts in India interms of positioning of McDonalds.

People prefer fast food because it's cheap, easy to prepare, and heavily promoted. India is a developing country with 2 percent of organized and98 percent of unorganized sector. So most of the fast foods that cameinto Indian market as India has a high growth in every sector. Major

players in fast food in India are:


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KFC

More than 75% of McDonald's restaurants worldwide are owned andoperated by independent locals.McDonalds product line in India is almost similar to other burger chainswith a dominant Indian flavor. Perhaps, it would be correct to say thattheir only similarity with their foreign outlets is that they have FrenchFries and still use buns. Examining the immense Indignation they haveattempted in their menu here it wouldnt be surprising to see IndianChapattis in place of buns. Their current offerings reflect the same.


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Menu Range Burger andother Bites

Desserts Beverages

Spicy delights Mcspicy paneer,Big spicy paneer

wrap,Extra value meals Chicken Mcnuggets Meal, Filet O Fish

Meal,Maharaja Mac meal,McVeggie/McChicen meal.

Happy pricemenu

Mcaloo tikki, softserve, Pizza vegMcpuff, chickenMcGrill.

McSwirl Iced tea/ ColdCoffee

Breakfast Menu SausageMcMuffin withegg, veg supreme,Veg McMuffin,SausageMcMuffin.

Pancakes Minute maidpulpy Orange/cappucino/ Tea

Happy meals McAloo tikki Meal,McChicken meal, ChicenMcGrill Meal, McVeggieMeal.

McFlurry


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III. BUSINESS MODEL

The Business Model of McDonalds is a franchise -based model coupledwith strong corporate branding. The focus is on the branding ofMcDonalds as a globally accepted service provider with strongcustomer perception about:

PRODUCT QUALITY

PRODUCT CONSISTENCY

EXCELLENT AMBIENCE

CONSISTENCY IN SERVICE

EXHILARATING EXPIRIENCE

VALUE FOR MONEY


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SERVICE MARETING TRIANGLE OF McDonalds :

McDonalds realized very early in their business that in order to achievehappiness amongst customers; the possible route is through happy,motivated and committed employees. In accordance with this they

played on the customer first strategy. Even in India, their efforts clearlyindicated that they were keen to understand the Indian consumer.Hence they adapted themselves to tickle the taste buds of their Indiancustomers to become a brand that enjoys a very high brand recall.Therefore they focused on internal as well as external marketing.


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McDonalds Changing Markets Changing Strategies:

Decades after its launch, the Big Mac is changing colors, literally. Theworld's largest fast-food chain is letting go of its familiar red-and-yellowcolors for more muted tones as it goes for its biggest and costliestrevamp in the country, in line with its global strategy of attracting moreadults.For the next generation of consumers McDonalds plans tocultivate a very different image from its existing one. After revamping280 stores invarious markets last year, McDonald's is now opting for the Tampamodel and will spread that design to upwards of 800 locations this year

roughly triple what it did last year. The company is donning a newlook when India is on its way of becoming a global hotspot for foodretailers, with chains like Starbucks, Burger King planning to enter thecountry. Some Mc Remodel highlights include :Redoing roofs - The bright red roofs that have topped McDonald's forseveral decades are getting the heave, replaced with flatter, moreconventional roofs.Muting paint - The neon yellows and reds common to the interiors andexteriors are becoming history, replaced with much more subtle oranges,reds, yellows and even greens.Updating chairs - Those industrial steel chairs are giving way towooden chairs, colorful stools and, in some cases, vinyl- covered chairsthat resemble leather. Some stores will have larger lounge chairs similarto the kind you might expect to find in a coffee shop.Doubling drive -through - To ease lines inside and outside stores, manylocations are adding second drive-through windows to speed up service.Splashing color - McDonald's hasn't junked it's familiar red and yellowcolors altogether, but it is making them far less obvious. Instead offilling the restaurants with them, it's splashing bright yellow and red hereand there for effect.Dividing dining areas - The sea of tables and chairs is history in theremodeled stores. The new dining rooms are divided into separate eating


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zones for larger groups, eat-and-run customers and folks who want tostay and lounge.Adding flat -screens TVs - Large, flat-screen TVs some playingcontemporary music are showing up in many locations, though fewerthan half of the remodeled stores will display them.

Strategic Direction

The strength of the alignment among the Company, its franchisees andsuppliers (collectively referred to as the "System") has been key toMcDonald's success. By leveraging our System, we are able to identify,implement and scale ideas that meet customers' changing needs and

preferences. In addition, our business model enables McDonald's toconsistently deliver locally-relevant restaurant experiences to customersand be an integral part of the communities we serve.

McDonald's customer-focused Plan to Win ("Plan") provides a commonframework that aligns our global business and allows for localadaptation. We continue to focus on our three global growth priorities ofoptimizing our menu, modernizing the customer experience, and

broadening accessibility to Brand McDonald's within the framework ofour Plan.

Our initiatives support these priorities, and are executed with a focus onthe Plan's five pillars - People, Products, Place, Price and Promotion - toenhance our customers' experience and build shareholder value over thelong term. We believe these priorities align with our customers' evolvingneeds, and - combined with our competitive advantages of convenience,menu variety, geographic diversification and System alignment - willdrive long-term sustainable growth.


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Reporting Segments

The business is managed as distinct geographic segments that include:

Corporate(OCC) including Canada, Latin Americaand Corporate

Restaurant Ownership

We view ourselves primarily as a franchisor and believe franchising isimportant to delivering great customer experiences and driving

profitability. At year end 201 3, more than 80% of McDonaldsrestaurants were franchised. Of the total McDonalds restaurantsworldwide:

7% are conventional franchisees

licensees-operated


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AN OVERVIEW

The history of SUBWAY restaurants

In 1965, Fred Deluca had just graduated from high school in Bridgeport,Connecticut, USA. Like many young adults his age, he had dreams ofattending college. Although he was a hard-working, competent anddependable young man, the $1.25-per-hour he earned working at thelocal hardware store wouldnt be enough to finance his education.Discouraged, Fred decided to ask Dr. Peter Buck, an old family friend,for some advice. The two had known each other for years and Fred halfexpected Dr. Buck to loan him the money for college after telling him ofhis plans to study to become a medical doctor. Instead, Dr. Buck gaveFred an idea that would change his life and the lives of people aroundthe world."I think you should open a submarine sandwich shop," said Dr. Buck.At first Fred was skeptical, but after Dr. Buck explained how thesandwich shop could finance Freds future education, he was on board.That night, Fred and Dr. Buck formed a partnership that would lead tothe first SUBWAY restaurant.By lunchtime on the first day Fred and Petes submarine shop was open,customers were pouring in. From that day on the company continued to


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grow. Fred and Pete had a goal of opening 32 submarine sandwich shopswithin 10 years. By 1974, eight years after they opened their firstsandwich shop, Fred and Pete owned and operated sixteen shopsthroughout the state of Connecticut, only halfway to their goal.

Subway chain is a fast food chain that comes at third position globallywhich comes after McDonald's and KFC. This company came out to beestablished in 1965 and the originator of the Subway food restaurant wasFred De Luca, and he was so thoughtful to start is restaurant businesswhen he was only 18 years old. First and foremost store was establishedin Bridgeport, Connecticut. The founder of Subway almost immediatelycultured the fundamentals of management in a business, in addition, the

significance of allocation as a well-made, high eminence item forconsumption, on condition of the outstanding customer service andkeeping operating costs low simultaneously by discovering immense

position. Such kind of inventiveness sustained in serving thegroundwork for prosperous SUBWAY restaurants internationally. Thereare in excess of 36,467 Subway restaurants nearly 100 countries globallyand also it can be said as the world's greatest intensifying authorizationsuccession. This area monopoly sequence has occupied more than173,432 inhabitants (Subway 2011). Subway offers many different kindsof fresh marine sandwiches also known as subs to their customers.Everything I decided by the consumers s which kind of a product theywant to have in the services The companies motive is to provide thefresh products, slogan of company, Eat Fresh which says, Subway chainuses only a moment ago baked bread and fresh constituents. Since a verylong time the Subway tried to make every efforts in the markets to setupagain. The Subway chain has also a lot of rivals in every countriesmarket. As soon as the Subway chain was withdrawing their restaurantsfrom the Danish market, Sunset Boulevard immediately raised 3 of their

branches (Subway Denmark).This description will provide the sequenceabout the Subway succession, its consumers and Subway as aauthorization representation. The competition between Subway and itsthree biggest competitors McDonald's, Burger King and SunsetBoulevard, are also integrated.


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believe that using good, environmentally sound business practices helpincrease our franchisees' profitability, improve our customers diningexperience as well as help protect the planet. We are committed to: Continue to evolve our menu of great tasting, nutritious options as wellas provide access to nutrition and healthier lifestyle information; Ensure our food meets the highest quality and safety standards; Find sustainable and cost effective solution s that serve the businessneeds of our franchisees; Focus our sustainability initiatives on energy efficiency, water &resource conservation, waste reduction, sustainable sourcing and supplychain management; Encourage our franchisees to contribute t o their communities, promote

diversity and choose "environmentally friendly" options and business practices.

Development of SUBWAY in IndiaOperating from its main office located in Milford, Connecticut, thequick service restaurant chain has five regional centers to support itsexpanding international operations. The Asian Centre has been growingat a rapid pace and India as a country occupies a pivotal spot on thisexpansion map. Subway Systems India Pvt. Ltd opened its very firstrestaurant in 2001 in New Delhi and has swiftly grown its operations to403 operating restaurants in 68 cities across India.Although it is a global brand with a menu that is relatively the samearound the world, SUBWAY restaurant's takes great pride in honoringand respecting local traditions and food preferences and has earned areputation for offering a healthier alternative to traditionally fatty andgreasy fast food.SUBWAY restaurant's in India serve no beef or pork products andhave an expanded selection of vegetarian choices. Popular sandwiches,

both local and international favorites, include Veggie Patty, PaneerTikka, Aloo Patty, Roasted Chicken, Chicken Teriyaki, Turkey, andTuna


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RESEARCH METHODOLOGY

Market research is when the information is collected about customers,rivalry, market and its development Planning, investigation andfeedback form are the regarding tools for market research, it is simply anexploration into a specific market and this concept is very muchcontracted. Advertising research is a largely wider as it not only containsmarketplace research, but also research into new products, or means ofdelivery like online marketing. The market research progressioncomprise of the seven stages. The first stage is to make out what are themarketing troubles, for example, corporation reflection problems andlittle awareness of the company. The second stage can be defined to setobjectives and goals, financial plan and agenda. The investor shouldknow that for how much money and time he is agreeable to spend andalso what is the most important goal of the market research is. Selectingthe research types and methods is the next stage. Derivative researchinvolves interpreting information that has been collected previously and

prime research comprises of gathering brand new information.Primaryresearch can be either qualitative or quantitative. The Fourth stage can

be said as research design. The feedback form is most commonly usedtool of this research; Fifth Stage is collecting data, with the help offeedback form, surveys or interviews and the sixth one is to categorizeand analyze the data which was collected, the management of theconclusion is done in the last stage.

Information regarding Organization 4P's of marketing, and consumer preferences has been obtained through:

a. Primary Sources b. Secondary Sources


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Primary sources

i. Market personal, PR personnel of the concerned organization wereapproached to obtain in formation about the concerned subject. fast foodmarketing and other details had to be obtained indirectly through its

public relations firm since direct accessibility to the corporate office wasnot possible.ii. Market research study was conduct in order to find out percentagewise preferences of the stated fast food restaurants.

Secondary sourcei. Internet

ii. Librariesiii. Articlesiv. Company brochures and pamphlets.

This study is targeted to establish the customer loyalty by evaluating andanalyzing the marketing strategies. This research present to the pointreview of loyalty history. In this paper, the author arguing that the searchshould be replaced by a drive to achieve maintainable business andtechnical liveliness.The main aim of carrying out this method in the research topic is tomake the reader aware of the current literature, which is related to thetopic. The literature review is carried out by using of different articles,

books, journals, etc., on the selected research topic. The information iscarried out using of different books and articles where the researchershave worked in past and has provided lot of information.There are four features that will significantly have an effect on youraptitude to build a loyal customer stand. Generally the cause of high

price of keeping new customers against the high effectiveness of a loyalcustomer there should be some effective type of business strategy.


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The strategies in marketing should be shaped in order to establish themeans by which the clear set objectives can be achieved. The objectivesspeak what marketers want to accomplish, direct marketing actions andare used to determine how well a plan is working. Their actions can berelated to reaching the target audience, sales, market share, and creatingresponsiveness in the marketplace.The long term goals and objectivesare cut down into the short term objectives which are used as high pointsand are measurable by the food chain for further processing. Results can

be investigated on a regular basis to see whether the objectives are beingmet. This type of opinion allows the company to change plans andallows elasticity.

For this research the monetary reports of both the companies werestudies so that the overall evaluation can be done. By comparing thesetwo companies we found the main threat which was occurring and afteridentifying those problems various suggestions were formed, in thestudy. For the collection of the data, in this research only the resultingdata sources were taken into account. The information collected by thesesources is derived information. An imperative secondary data collectionmethod has been used in the section which can be termed as the casestudy analysis method.


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Research Objective Research questions:

For carrying out a research successfully, it is necessary to plan researchmethodology in the research as it helps in forming a particular researchaims and objectives which can be achieved easily in a given course oftime. For this purpose, the research questions for findings the answers ofwhich the whole research is being carrying out are listed below:

1. How to build customer loyalty, and information on customerrelationship?2. To help a customer, what are the important instructions for bettercustomer relationship?

3. Does your business offer good customer relationship?Such type of questions are aimed to reveal different aspect of thecustomer retention and other related techniques which are being carriedout in the food chain market in India, presently.

Data Presentation, Analysis and Results:

There are some financial data which are obtained from the annual reportof one major food chain in US. For this rationale, the researcher has torecapitulate and rearrange all the data, which has collect data in a properand systematic format. This systematic format converts raw data intosome well defined findings which make the process of analysis easy forthe researcher. Such type of analysis includes comparison among pastfinancial data of the food chain so that the financial performance of thefood chain in the dynamic business environment can be revealed.

Questionnaire Assessment:

1. Have you ever heard of Subway and McDonalds Restaurants?a) Yes (86%)

b) No (14%)


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It is already mentioned in this case, that approximately 100 respondentswere being interviewed and then we assessed the level of brandrecognition in relation to Subways and McDonalds joints of restaurants.In this, almost 86 respondents out of 100 were aware of Subways andMcDonalds offerings whereas other 14 respondents did not have any orclear idea in relation and its offerings.

2. How will you categorize the brand image of Subways andMcDonalds?a) Westernized (50%)

b) High end (20%)

c) Convenient (5%)d)Fresh (10%)e) Healthy (12%)f) Efficient (3%)In this case, assessment was done on the basis of categorization ofSubways and McDoalds within the given six parameters namely,Westernized, elevated end, suitable, Fresh, Healthy and Efficient.Majority that is almost 50 respondents classified it as westernizedwhereas 20 respondents classified it as high end. 12 respondents also feltthat it is another name for healthy food offerings as well. Rest voted infavor of other options as well in this case.

3. How often do you visit Subways and McDonalds within a quarter?a) 1-2 (68%)

b) 3-4 (22%)c) 5-6 (4%)d) 7-8 (5%)e) More than 8 (1%)Out of 100 respondents, 68 visited one or two times and only 22respondents visited 3-4 times within the given time frame in thequestion. We can find that the organization may offer healthier options

but the frequency of visits within the stipulated time is less and needs to be improved as competitors are doing far well in this aspect.


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4. How will you rate service quality at Subways McDonalds?a) Excellent (35%)

b) Good (32%)c) Poor (11%)d) Satisfactory (22%)Out of 100 respondents, almost 35 respondents rated Subways andMcDonalds excellent in terms of service quality whereas other 32 foundit to be good. 22 respondents found it to be satisfactory whereas only 11found it to be poor.

5. How will you rank Subways in terms of customer service?

a) Excellent (45%) b) Good (38%)c) Satisfactory (9%)d) Poor(8%)Out of 100 respondents, almost 45 respondents rated Subways andMcDonalds excellent in terms of customer service whereas other 38found it to be good. 9 respondents found it to be satisfactory whereasonly 8 found it to be poor.

6. Will you recommend Subways and McDonalds to your colleagues,friends and acquaintances?a) Yes (50%)

b) No (20%)c) May be (30%)In this case out of 100 respondents, 50 felt that they will recommendsubway and McDonalds to others in their respective circles as wellwhere 20 respondents were not sure whether they will recommend ornot.

7. What do you think of competitive positioning and strategy aboutSubway and McDonalds?a) Excellent (37%)

b) poor (7%)


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c) Satisfactory (33%)d) Good (23%)in relation to competitive positioning and strategy, 37 out of 100respondents felt that the organization has an excellent positioningstrategy, 23 found it to be good and 33 found it to be of satisfactorylevel.

8. How will you rank Subways and McDonalds in terms of healthy product offerings?a) Excellent (38%)

b) Good (22%)c) poor(12%)

d) Satisfactory (28%)Out of 100 respondents, almost 38 respondents rated Subways andMcdonalds excellent in terms of novel and healthy product offeringswhereas other 22 found it to be good. 28 respondents found it to besatisfactory whereas only 12 found it to be poor.

9. What do you think of competitive positioning and strategy aboutSubway and McDonalds?a) Excellent (35%)

b) Good (30%)c) Poor (15%)d) Satisfactory (20%)in relation to competitive positioning and strategy, 35 out of 100respondents felt that the organization has an excellent positioningstrategy, 30 found it to be good and 20 found it to be of satisfactorylevel.


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Situation Analysis

This factor explains the problem occur during establishing a companyand existing company. So in this factor we need to do a deep or betteranalysis for understand a company, your competitor and all thesituations which can possibly happen with you and your company.In the international fast food market the growth of Subway food chain israising their healthy food environment, their subs known as a healthywealthy fast food. Subway's sales rising per anum more than $6.9

billion, as same as immeasurable awards and honors has been granted itschain over the past 42 years. Subway has more than 35,582 unitsglobally and its rapid growth attracting many investors and now it is able

to compete with KFC and McDonalds. Being a part of this internationalmarket where these big companies competing with each other, Subwaytaking a challenge to face the market by giving their customers

beneficial advantage and making a profitability and sales growth. In fastfood market, Subway can compete with burger chains and others are bigname in international market. Subway changes in it by making casualand attractive menu and adding some new meals in its menu item whichare the customer's choice. On the other hand, subway has not beensatisfied and for improving business stronger efforts have been made.For increasing inner strength of Subways and removing the threatswhich will make it weak, the SWOT analysis factor is back bone forthis. Sandwiches market gained highest growth in past few years ago inUS culture.

Competitive AnalysisThe basis of investigating competitors is to try and ask what they willdo. This will make easy the organization to respond consequently.Sometime as a point of reference competitors is regarding to thecompetitive position; competitors are sometimes used as point ofreference. Subway is not without competitive difficulties, majorcompetitors including KFC, McDonalds, Pizza hut. KFC and Pizza hutare the world largest with 33,068 restaurants in over 98 countries.


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SubwaySWOT Analysisabove them external opportunities and threats Nevertheless, sincemarketing is such a multifarious through situation analysis, in the sameway that an annual financial audit is carried out (McDonald, 2002).SWOT analysis is a method of add the title, under the title, internalstrength and weakness as we consider above them external opportunitiesand threats (McDonald, 2002) Subway sandwich shops are wellfunction, it seems unreasonable not to carry out a fair situated toinfluence their strength, address sensible, threats, weaknesses,opportunities

STRENGTH - WEAKNESSES

1. Great degree of subscustomization2. Largest fast food restaurantchain in the world by the numberof outlets3. Marketing and promotionalstrategies4. Choice of healthier meals5. Partnerships with Britain andAmerican Heart Associations6. All restaurants are owned byfranchisees7. Low startup costs

1. Interior design of the outletsoften looks cheap2. High employee turnover3. Services are not consistent fromstore to store4. Too much control overfranchisees


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Opportunities

1. Increasing demand for healthier food2. Home meal delivery3. Changing customer habits and new customer groups4. Introduction of drive-thru

Threats5. Saturated fast food markets in the developed economies6. Trend towards healthy eating7. Local fast food restaurant chains8. Currency fluctuations9. Lawsuits against Subway

McDonalds

Swot analysis

Strength10. Great degree of subs customization. Customers always like tochoose and the more choices they can make about their purchase themore satisfied they are with it. Subway is better than any other large fastfood chain in providing the choice of meal customization.11. Largest fast food restaurant chain in the world by the number of

outlets. Currently the company operates 38,181 restaurants in 99countries, more than McDonalds or any other fast food chain operator.


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Weaknesses12. Negative publicity. McDonalds is heavily criticized for offeringunhealthy food to its customers, stimulating obesity and strongmarketing focus on very young children.13. Unhealthy food menu. Although McDonalds tries to introducehealthier choices in its menu, the menu is largely formed of unhealthymeals and drinks. Such menu offering prompts protests by organizationsthat fight obesity and hence, decreases McDonalds popularity.

McDonalds SWOT analysis 2013Strengths Weaknesses

1. Largest fast food marketshare in the world2. Brand recognition valued at$40 billion3. $2 billion advertising budget4. Locally adapted food menus5. Partnerships with bestbrands

6. More than 80% ofrestaurants are owned byindependent franchisees7. Children targeting

1. Negative publicity2. Unhealthy food menu3. Mac Job and high employeeturnover4. Low differentiation


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Opportunities1. Increasing demand for healthier food2. Home meal delivery3. Full adaptation of its new practices4. Changing customer habits and new customer groups

Threats5. Saturated fast food markets in the developed economies6. Trend towards healthy eating7. Local fast food restaurant chains8. Currency fluctuations9. Lawsuits against McDonalds

Guidelines for Better Customer Service:

You need to prepare and ready for the help of your customers andalways give him a chance to answer. Never try to support your staffmembers if they disturbing your customer in every minute and askingstrange questions to your customers what do you want? Is that thing youlike sir, etc. your staff can ask them very politely if the customer askyou, yes sir! May I help you? What you are looking for? help thecustomer by talk to the customer, can my staff member sort out your

problem. This may engage:a. Aggressively pay attention to the customer. You need to listen yourcustomer by making eye contact, making a note on table and also bynodding. Communicate with you customer but keep silent on front ofyour customer if he/she is speaking. On that time if you are speaking infront of your customer you left bad impression on your customer andyou also are unable what your customer want.

b. Always present your knowledge about the business products andservices and be prepare for it, if some of customer visit in your storedon't try to tell them everything you know even help your customer whatthey asking to you, what they want to purchase and what kind of servicethey expecting form yours.


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c. If you have knowledge about your correlated products you can saveyour customer time by comparing him the product by visiting himanother store. You have to capable to do this. Show them the interrelated

products by doing this you can attract your customer and you canincrease growth.d. The one thing is most attract to the customer is always present to offerrelevant advise. If they are not asking about your product they trying tocompare with other one. For example. a customer worried in hardwoodflooring, and he can also clean-up hardwood floors . You can suggestthem to buying decisions and how the customer feels about yourcustomer service.

Recommendations:

In this strategy model, the franchise companies do not issue the licenseto a latent franchiser to open a new store. By lowering the franchisersrisks by relocating store that has stable internal operation, storeexecutive, loyalty consumers, and also provide them commercial moneymaking. Second, the company has better service product, quality in theirservice and control over the store management of individual chainstores. On the other hand, if franchise wants a store license as soon as

possible to open their store, the company help them for locating thestore, commodities supplies, personal training too. Franchise modelusing most of chain corporations Chain Corporation provides differentrelationships.

Conclusion and Recommendation:

In today's world one of the major problems is unbalanced growth incustomer loyalty program. This paper exemplifies the environment andthe ways loyalty managers can meet this exacting challenge. This canonly achieved by making business plan and optimized business processdesign to compute those strategies which is maintained by highly


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technology persons. Overall coverage at each level is required for business processes which are fully cover up by business strategies.Technology fully covers the needs of the business processes which arefully covers the technology requirements.

Evaluation of results:

In the above discussion we reach to this point that by using differentmarketing strategy in Subway and McDonalds food chain market we canestablish customer loyalty to our customers. The reason behind thisresearch is also express about the market status of Subway with

comparing to McDonalds, KFC and Burger King. This research alsogives that how you need to behave to retain your customer and makethem your long term customer.

REFERENCES[1] Lovelock,Wirtz and Chatterjee , Services Marketing , in Pl astics,Sixth Edition ,India , Pearson , 2010 , pp. 66-98 , pp. 340-372[2] Aaker, D.A. (2004b), Leveraging the Corporate Brand ,California Management Review, 46 (3), pp. 6-18[3] Bijoor, H., A Time to Rebuild , Business India, February 20,2011

pp. 48.[4] Hatch, M.J. and Schultz, Bringing the Corporation into CorporateBranding , European Journal of Marketing, 2003, 37 (7/8), pp.1041 -1064.[5] Jacquelline, B. and Kline,S ,From McLibel to McLettuce:Childhood, Spin and Re- branding ,2007 , Socie ty and Business Review,2(1)

study on marketing strategies of fast food joints in india

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