MANAGEMENT IN ACTION - SOCIAL ECONOMIC AND ETHICAL ISSUES

CONSULTING PROPOSAL ASSIGNMENT 3

PROBLEM BRIEFING ON

COMPREHENSIVE ANALYSIS OF FAST FOOD MARKET IN

INDIA FOR WHITE CASTLE

SUBMITTED BY:

SUKRIT VIG A0101911010 A-47 MBA (G) Class of 2013

What White Castle needs? White Castle is a major American Fast food hamburger restaurant chain headquartered in Columbus, Ohio, USA. White Castle plans to enter into India, for this purpose they aim to study the Indian fast food market and the Indian consumers. We at SV consultants aim at the following problems and provide a comprehensive study for these problems: 1. White Castle is unaware of the Indian customers buying behavior and their choices.

2. Being an American brand, our offerings are not the same as the needs of the Indian consumer.

3. White Castle is keen to understand the core of the Indian culture and value system, in order to blend into the countrys modern culture.

4. To identify the following heads: Market Potential Market share analysis Major Competitors Geography of interest

5. White Castle would also like to know the major events in the Indian Calendar, which would include the major festivals and shopping seasons and also any special spending patterns.

6. Also to study the Indian market on the following grounds: Per Capita income Median Age Population divide among rural and urban areas Major urban amalgamations.

Methodology:

The methodology to perform this major task would require collection, study and analysis of secondary and primary data. We at SV consultants would be following the following pattern of primary data collection:

1. Identifying a population consisting of 3,500 respondents throughout 7 major cities in India namely, New Delhi, Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, Chandigarh. 2. These respondents would be divided into stratas on the basis of gender, occupation, annual income and other demographic factors, in order to gain a holistic view of the Indian consumers.

3. Further we would collect this data and present it in to White castle with the major outcomes about the likings and disliking of the Indian consumers.

Secondary data would be used to collect data such as:

1. Per Capita income 2. Median Age 3. Population divide among rural and urban areas 4. Major urban amalgamations.

Diagnosis: The major problems that were identified during the research include: 1. Unstructured market:

The Indian market is unstructured and White Castle would face a great deal of competition from local burger vendors and other fast food joints. Since the Indian consumers prefer cheap and easy to have fast food, they would prefer a burger from any place that is easily accessible and provides low cost options to eat.

2. Urban and rural divide: The divide between urban and rural India is great and hence White Castle can only focus on urban areas for the time being, since the rural areas do not have such a great disposable income level and the rural areas are scarcely populated in comparison to urban areas.

3.

Existing competition:

White Castle would face a lot of competition from already existing fast food companies and mainly burger companies like McDonalds, KFC, Wimpys and Burger King and others as well. White Castle would have to position itself accordingly.

Market Research: In order to study the Indian fast food market and the Indian consumers, SV consultants have used secondary data and conducted a primary research in order to know the likes and dislikes of the Indian consumers. Existing competition in the Indian market includes: 1. McDonalds: McDonalds began operations in India in the year 1996 and has since become the largest burger and fast food providing brand in India with its presence in all major cities and also all major national highways and other routes. The network of McDonalds is the most widely spread in India and is known as a pocket friendly and family restaurant. Prices start from Rs.20 for a vegetarian burger and offer a wide variety of vegetarian and non-vegetarian options to the customers. McDonalds have changed a lot with respect to the Indian market; they have adopted Indian tastes and other cultures like no use of beef and pork.

The McDonalds menu in India is as follows:

2. KFC:

KFC is another American brand that entered into India in the year 1995, following a similar model of low cost pricing menu and focusing on vegetarian options as well. KFC introduced its street wise price menu. It focuses more on the youth rather than focusing on being a family restaurant.

The following is a KFC menu in India:

3. Subway: Subway is another major competitor in the Indian fast food market. It offers fresh sandwiches with a wide variety of breads, fillings and sauces. It focuses on the youth with a USP of fresh and healthy food. It is fairly priced and has also adjusted according to the Indian market and its needs.

A primary research was conducted by our marketing research team and the following results were published in our report:

The Indian consumer is very price conscious and wants pocket friendly prices when it comes to fast food.

Majority of Indian consumers are vegetarian and when it comes to non vegetarian food, the most common choices are chicken followed by fish and mutton.

A vast majority of the Indian consumers do not eat beef and pork.

Combo offers are a great hit with Indian consumers as they offer more options in fewer prices.

White castle should also see that an average Indian household is most affected by the choices of kids in the family, hence menus focused on children is a hit in India.

Geography of interest: White Castle can focus on the following cities as they have more than 1 million population and also have purchasing power: 1. New Delhi 2. Mumbai 3. Chennai 4. Kolkata 5. Hyderabad 6. Bangalore 7. Chandigarh 8. Ahmadabad 9. Ludhiana 10. Lucknow

Recommendations: White castle should try to position itself as a family restaurant offering family fun and food at low costs, and it should take into consideration the following results: The Indian consumer is very price conscious and wants pocket friendly prices when it comes to fast food. Majority of Indian consumers are vegetarian and when it comes to non vegetarian food, the most common choices are chicken followed by fish and mutton. A vast majority of the Indian consumers do not eat beef and pork. Combo offers are a great hit with Indian consumers as they offer more options in fewer prices. White castle should also see that an average Indian household is most affected by the choices of kids in the family, hence menus focused on children is a hit in India.

INVOICE SV Consultants E-215 New Rajinder Nagar, New Delhi -110060 Phone: 011-28744731 Bill To: White Castle Pvt Ltd. 3000 Hanover Street Palo Alto, CA 94304-1185 USA Invoice date- 12/3/2013 Invoice :45406

The cost of employee survey to judge their attitude and preference 500Rs/Survey Total no. of respondents to be surveyed 3,500 Rs. 17,50,000 For secondary data research and report Rs. 1,00,00,000 Consultancy Fees Rs. 30,00,000 Total - Rs 1,47,50,000 Consultant Signature: Date: Prepared by: Date: THIS INVOICE HAS BEEN REVIEWED FOR TIME EXPENDED, NATURE OF THE WORK AND RECEIPT OF THE DELIVERABLES AND IS APPROVED FOR PAYMENT.

Signature:________________________________ Date: 12/ 3 /12