Analysis of Multiple Marketing Strategies
and their management in food and
beverages brands in India
Lucky Mehta1*, Dr. Reenu Shukla2
1 Research Scholar, University of Technology, Jaipur, Rajasthan
2 Professor, Department of Commerce and Management, University of Technology, Jaipur,
Rajasthan
Abstract - Over the years, the changing purchasing habits of Indian consumers have seen a
tremendous transition. A better state of the economy, exposure to international media, travel
abroad, the degree of urbanisation, educational attainment, and the introduction of new
employment prospects in the service sector, such as in information technology. Some of the
drivers include call centres and shopping that affects consumer habits. Due to economic
changes implemented two decades ago, the middle class has grown significantly. In India,
altering spending habits are occurring as disposable income rises. For international beverage
manufacturers, India's beverage industry is a significant market. The food sector in India is
extremely profitable thanks to rising standards of living and population expansion. Indian
society's traditional economic environment was different from its current environment. The
majority of Indian consumers gave home-cooked cuisine a strong preference. Contrarily, the
current practise of eating out is quickly altering Indian society's perspective. Due to the fast-
paced modern lifestyle, hectic schedules, competition, rise in the number of working women,
nuclear family concept, etc., many fast-food franchises have now established themselves in
India.
Keywords - Marketing Strategies, Management, Beverages Brands, Food
1. INTRODUCTION
India is a diverse nation. Here, food is combined with customs and traditions in addition to being
thought of as a source of nutrition. In India, the preparation of food and its flavours vary from one
state to another. In India, young people tend to favour food that has been prepared at home.
However, as urbanisation progresses, it appears that the situation is radically altering.
Fast food has been a popular idea for a number of years. All members of the family must work to
make a living in today's fast-paced society where costs are rising daily. In order to make a living, a lot
of people frequently move to different regions far from their families. This kind of fast-paced lifestyle
allows for the consumption of fast food, or rapid meals that are swiftly made and served. This rapid
dish is enjoyable to the mouth when it is being made quickly. The fast-food industry in India is
expanding daily, which is causing certain benefits as well as some downsides.
Even though India's economy has been growing over the past few decades, poverty and food
inefficiencies are still widespread throughout the nation. Along with other factors, its frequent
consumption of fast food is increasing its disease burden. In place of a healthy, home-cooked diet,
fast food is increasingly being consumed by adults as well as children. These high-calorie foods
seriously harm human health by slowing down metabolism.
The public can unwind while enjoying a meal, a snack, or just a drink. Fast food restaurants are
expertly created to involve, engage, and immerse the patrons. Fast food outlets with a western
influence are now common in cities all throughout India, and they are setting a trend by becoming a
hangout for young people. On the other hand, fast food outlets have largely replaced restaurants as a
convenient and relaxed hangout for business people, who frequent them often, especially on the
weekends. Fast food restaurants place a high priority on providing excellent customer service and
consistent service quality. As a result, they continuously push their fast food restaurant by focusing on
the key elements like consistent quality of the food and drink, a clean and elegant environment, an
affordable price, friendly service from the staff, personal relationships, and others in order to raise the
level of overall service quality.
The fast food sector in India has developed over time and has consistently kept up with the demands
of people of all ages. Businesses can be anything from a one-room establishment to a nationwide
franchise with thousands of locations, like McDonald's. Our nation is fortunate to have one of the
world's fastest expanding fast food markets, according to the Indian Fast Food Market Analysis
(IFFMA). The fast food industry in our nation is expanding at a yearly rate of 30-35 percent. Practically
all of the major fast food companies in the world have succeeded in making their presence felt in the
nation and are poised for significant development. Although the market has grown significantly over
the last few years, it is still mostly untapped and concentrated in large urban areas. In the mostly
untapped II- and III-tier cities, there is significant room for expansion. Because of this, the population
in II- and III-tier cities represents the fast food industry's future in India.
1.1 Fast Food Chains in India
Operators of international chains like McDonald's, KFC, and Subway have altered their menus to
appeal to Indian consumers' palates, particularly expanding the vegetarian selections. This is partly
due to India's sizable vegetarian population. The first vegetarian McDonald's opened in 2013 in
northern India, close to the well-known Golden Temple in Amritsar. Following the same approach,
Yum! Brands Inc., the parent company of KFC, is expanding its vegetarian menu options.
International fast-food restaurants have long included Indian menus to accommodate regional tastes,
offering a wide variety of vegetarian and three-spice dishes. By releasing sandwiches geared towards
the nation's vegetarian population, Subway has also advanced this trend.
Overall, KFC and Subway, both run by franchisees, were in close second place to McDonald's in the
fast-food category with a value share of 2%.
In India, McDonald's now has 270 locations and is rapidly growing its network of eateries. At Great
India Place in Noida, the company opened its biggest restaurant in the nation. The restaurant's 325
seats are distributed over 8,000 square feet on two stories. By 2018, Hardcastle Restaurants Ltd, the
McDonald's master franchisee for West and South India, intends to invest 3 billion rupees and open
75 new locations. Nevertheless, as more businesses enter the market and there are an increasing
number of outlets, the brand is losing market share within the chained fast-food industry.
2. REVIEW OF LITREATURE
According to Cravens (2000), marketing plays a big role in the introduction of new products. Supply-
chain management, customer management, and value chain management are all combined in
marketing. by using rivalry to communicate increased significance to the customers.
Organizations, according to Ferrell and Hartline (2007), need to comprehend the constantly changing
environment and know how to respond to it. It is acknowledged that the Indian fast food market is
competitive and that changes impact the sector. Therefore, it is crucial to develop fresh marketing
strategies for economic driving forces in order to combat changes in the business environment and
competitiveness. The factors that advance any strategy are the organisational structure, performance,
customer environment, business competitiveness, political inclinations, and economic growth. All of
the factors at play satisfy the demands and desires of the customer. Thereafter, research in related
fields was conducted on a global scale, including India.
Hooley, Piercy, and Nicoulaud (2008) explained that different market situations require different
marketing techniques. They discuss the market categories and brand positioning in the report. They
also assert that businesses operating within a market framework ought to use a variety of marketing
strategies to meet their objectives. In order to overcome these obstacles, the company needs adopt
significant and strategic marketing strategy.
According to Trefor Griffith's (2018) research, there have been several modifications for food and
beverage organisations over the years, always fueled by shifting consumer preferences. The long-
standing need for settlement has coincided with a desire for more advantageous choices, and
acceptance of more plant-set up together food for a flexible start. At the other end of the spectrum,
however, improvements in free objects with smaller parts have emerged as a crucial current example
for the industry.
Alfa (2018)- The author stated that if you are planning to open your own restaurant, you must be
aware of the intense competition in the area and strive to be the best to earn your customers'
confidence. Serving your customers well will encourage them to come back to your restaurant.
Making delicious food is an essential part of owning a restaurant, but it doesn't end there. In order to
have a successful business, you also need to ensure the loyalty of your final customers.
Z. Hattingh, H.J. Moolman, and O. Mhlanga (2014) - In this study, the author argues that, in contrast
to other types of eateries where food is valued most, customers in formal full-service restaurants want
far more than just food. Even though amazing food is an essential component of a wonderful supper,
formal full-service restaurants place a lot of emphasis on the level of administration. In a formal
restaurant with full administration, good administration can save a bad meal, but bad administration
cannot be saved by a good dinner. Even though the food at a formal full-service restaurant may not
be as delicious as at other well-known restaurants, if the service is excellent, the customer will
recognise the restaurant and will generally be satisfied (Cheng, 2006).
Hugh Wilkins, Michael Davidson, and Russell Cox (2014) - This exploration introduction will further
expand these findings and provide a framework outlining the essential task of advancement in
developing and sustaining a workable restaurant enterprise. Although the text discusses both
dramatic and slow advances, the investigation's findings definitely show that gradual developments
are the primary factors that affect how well restaurants perform. The restaurant executives,
managers, and staff we have spoken with so far have all stated that consistent growth is essential for
an eatery to succeed in four critical areas. Advertising, forms, hierarchical culture, and item and
administration are some of these main development areas. Unmistakably, one of the main sources of
progress for restaurants is advancements in the kitchen and the menu.
(2012) Soultana (Tania) Kapiki Both the number of travellers entering the country and the courtesy of
the travel sector have increased globally. The trends that are most significantly affecting the
restaurant industry include the increased concern for patrons' safety and well-being, the increased
diversity of the workforce, and the relevance of exceptional services creating more opportunities for
increased revenue. the new developments that contribute to improved visitor services, increase
competitiveness, and the relationship between cost and value, which is important for today's
discerning tourists. The trend is an increase in restaurants using environmentally friendly methods.
2.1 Objective of the study
To analyze marketing strategies adopted by the select RTS food chains.
To suggest measures for evolving marketing strategies.
3. RESEARCH METHDOLOGY
To determine the marketing techniques used by the international fast food chains in India, an
exploratory and descriptive study is conducted. Based on the findings of the study, appropriate steps
are suggested for strengthening the marketing strategies of the fast food chains. The following is a
summary of the study's research methodology:
3.1 Research Design
The research is carried out using the descriptive methodology. A practical sample technique is used
to collect information from patrons and staff of certain fast food establishments for the study.
3.2 Source of the Data
Primary Data: The structured questionnaire is used to gather primary information on the marketing
tactics used by international corporations that operate fast food chains. Customers and corporate
personnel, including marketing managers, eight restaurant/outlet managers, team leaders, and
executives of particular ready-to-serve restaurants, are the key sources of the data.
Secondary Data: The secondary information is gathered from a number of published sources,
including Euro monitor International, research papers, manuals, reports, publications, voice and data
magazine, books, and websites.
3.3 Sampling Design
Fast food patrons and staff from a few fast food businesses in Mysore and Bangalore make up the
survey's respondents. 50 employees and 100 consumers of particular fast food businesses are used
as the study's sample size. The workers received 25 samples each from Domino's Pizza, McDonald's,
Kentucky Fried Chicken (KFC), Café Coffee Day, and Pizza Hut.
3.4 Data Analysis Tools and Techniques
Several statistical techniques and methodologies have been employed in the study to analyse the
consumer and employee data and to test the hypothesis. Various tables and charts are employed for
the data analysis. Mean, Standard Deviation, and Correlation are utilised for the descriptive analysis,
and Cronbach's Alpha is used to assess the questionnaires' predictive validity and reliability.
The hypothesis is tested using ANOVA, Contingency Coefficient, P value, and Pearson correlation.
With the aid of SPSS, the information gathered from clients and a few firm personnel is examined.
4. DATA ANLYSIS AND INTERPERTITON
The data analysis and interpretation gathered for the study are presented in this paper
For the study, opinions from both consumers and employees of five different fast food chains are
gathered.
The criteria for choosing sample respondents, the framework for statistical analysis of food quality,
customer preferences for buying ready-to-serve food products, and the marketing tactics used by the
chosen fast food outlets are presented in this paper in seven sections as follows:
4.1 Demography of the Customer Respondents
Table 1: Demographical Profile
Gender
Customer
Percentage
Male
40
40%
Female
60
60%
Age
20-30
50
50%
30-40
20
20%
40-50
20
20%
50 above
10
10%
Qualification
Intermediate and Below
25
25%
Graduation
50
50%
Post Graduation
25
25%
Occupation
Student
20
20%
Employed
20
20%
Self- Employed
20
20%
Others
40
40%
Figure 1: Demographical Profile
The table above shows that out of 100 consumers, 40 men and 60 women, representing a range of
ages, answered to the questionnaire. Out of 100 responses, 11 are between the ages of 10 and 18
years, 63 are between 19 and 25 years, 181 are between 26 and 35 years of age, 37 are between 36
and 49 years of age, and 8 are over the age of 50. There were 93 students, 134 postgraduates, 60
professionals with professional degrees, and 13 school level responders among the survey's
respondents.
4.2 Customer’s Favourite Fast Food Restaurants:
Earlier, our nation had a bad image for being hostile to foreign fast food companies, but today,
practically all of them are warmly accepted by our younger population. Because it takes an entire
generation to alter tastes, the young and middle-aged population is developing new tastes rather than
changing their existing ones. As a result, these fast food establishments have even gained popularity
among the general public.
Table 2: Favourites Fast Food Restaurants among Customers
Particular
McDonald’s
KFC
Pizza Hut
CCD
10-20
10
08
11
10
20-30
15
15
25
28
30-40
12
18
29
25
40-50
16
22
12
19
50 above
20
19
10
10
Figure 2: Favourites Fast Food Restaurants among Customers
KFC is the preferred fast food restaurant, with 92 respondents (30.7%) preferring it, followed by
McDonald's with 64 respondents in the above Customer's Favorite Fast Food Restaurant with
Respect to Age table of 300 respondents (21.3 percent). Following Domino's Pizza, with 57
respondents (19.0 percent), are Café Coffe Day with 46 respondents (15.3 percent), and Pizza Hu
with 41 respondents (13.7 percent), who prefer to eat and drink there.
5. CONCLUSION
Over time, the idea of fast food has changed in India. Indian restaurants have developed into a
thriving industry from humble beginnings as stand-alone stores and street sellers. Franchise owners
and fast food chains that were able to recognise the potential for growth in this industry have made
significant investments and are now reaping the rewards. There are currently 700 million people in
India under the age of 30 who make enormous salaries and are quickly acquiring a taste for western
cuisine and multinational fast food chains. Growing disposable income, favourable demographics, an
increase in the number of working women, increased urbanisation, modernization, and
commercialization, an ever-increasing number of nuclear families, and busy work schedules have all
contributed to this change in the Indian food industry, where previously home-cooked meals and
traditional curries had the upper hand. This has made the increasingly popular tendency of eating
outalmost a habit among working peopleone of the key factors in the growth of the fast food
restaurant sector in India.
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