Project Report on f&B

8/13/2019 Project Report on f&B

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CHAPTER 1

INTRODUCTION


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1.1OVERVIEW OF THE INDUSTRYIndustry Composition:

Deriving from the agriculture industry in our definition, the food and beverage industry

is divided into two major segments. Those two segments

are production and distribution of edible goods. Production includes the processing of

meats and cheeses and the creating of soft drinks, alcoholic beverages, packaged foods,

and other modified foods. The production segment of this industry excludes foods that

were directly produced via farming and other forms of agriculture, as those are

encompassed by our definition of the agriculture industry. Distribution involves

transporting the finished food product into the hands of consumers.

The industry is much more focused on technology and mechanical manipulationof raw

foods to create more value-added food products than the agricultural industry. Under our

definition of these industries, grocery stores are excluded as they are considered a retail

store by the definition. Distribution includes companies that ship food to retail outlets,

restaurants, or directly to consumers.

History:

Food has been processed for nearly as long as it has been used. In early times, humans

used to dry or smoke meat or other foodstuff in order to preserve it for longer periods of

time. Salt preservation was also very common in the diet of sailors and soldiers during

those times. Food processing essentially remained unchanged until the 19th century with

the invention of canning by Nicholas Appert and pasteurizationby Louis Pasteur. Both

of these innovations changed the way that food was processed into a longer lasting food

product that was canned or bottled.

During wartime, the food and beverage industry shifted, as food is often a precious

commodity. Prices were determined by availability and regulation. Most countries

involved in World War II rationed food and regulated prices in order to stabilize the

economy. This increased innovation in the food processing segment with the inventions


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of food coloring, juice concentrates, artificial sweeteners, and more advanced

preservatives, such as sodium benzoate. These innovations led to the current food

processing market in place today with convenience foods, such as frozen TV dinners and

instant meals, prepared snacks, and other instantly available foods.

The food distribution segment of this industry is fairly new. Prior to the industrial

revolution, consumers typically ate what foods were available to them in their regional

market. Foods were processed from these markets and used for journeys out of them.

With the increased transportationof the industrial revolution, such as railroads and

barges, as well as the concurrent rise in technology such as canning, it became feasible to

transport food from one regional market for sale in another. Today, the industry segment

has evolved even further due to increased transportation technology such as airplanes.

Leaders:

In the distribution segment of this industry; SYSCO, US Foodservice, and McLane

Companyare the major companies. In the processing segment; diversification and

expansion has led to companies being involved in many different markets. PepsiCo is a

major part of the beverage and, with their Frito-Laybrand, food processing

segment. Nestle is the worlds largest food conglomerate andKraft and its subsidiariesare very involved as well. In addition to PepsiCo, the nonalcoholic beverage is dominated

by Coca-Colaand Dr. Pepper-Snapple. The big companies in the alcoholic beverage

market are Anheuser-Busch InBev, MillerCoors, and Diageo.

Trends:

Due to the recent economic meltdown, consumers are looking to save as much money as

possible. One major way that consumers are doing so is by purchasing more generic

foodsand making their own meals, not going out to eat. This is causing food processing

companies to become more innovative to decrease the cost of goods sold, attract more

customers, and increase profit margins.


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The large amount of obesity in the world has a major effect on the food and beverage

industry. There has been an increase in demand for health foodsand more informative

nutritional labeling. Both of these trends have caused companies to release lower calorie

foods and to better control how their brand is viewed. Companies want to be viewed as a

healthy brand and are promoting activities, such as youth sports, that show this healthy

image. There also is mention of a tax on foods known to lead to obesity in order to curb

consumers usage of them.

Rising costsof factors of production are a major factor to this industry as well. Since

commodity prices went up in the past year, food companies have had to increase prices of

the final product as well. With the economic collapse, this affected them two-fold, as

consumers were less likely to want or even have the money to pay the higher prices.Fortunately, commodity costs have been decreasing in the last few months, which

forecasts a lower final price for the products in this industry is to come.

The industry also has to deal with their reputation, as there have been incidents of unsafe

food being released in the past. These outbreaks have to major potential

consequences: loss of consumer confidenceand increased regulation. Already,

research has shown that consumers do not trust their food suppliers as much as they used

to and nearly half of them have switched brands in the past year, either to save money or

because they believe the new food will be safer. Government control of the food process

has increased with the passage of new laws as well.

Future Outlook:

The food and beverage industry has seen their profit margins decrease recently. However,

due to the falling cost of commodities, these margins should increase in the coming years.

Food is a necessary part of life and will always be needed. Those are some reasons why

this industry has an above averagefuture outlook.

In addition, corporate and brand reputationsare expected to become increasingly

important, as consumers are trying to stretch their dollar further and competition is

increasing. With the increase in competition, the only way companies can separate


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themselves from others is by brand recognition. Consumers are now very concerned with

the reputation of a company, or their brand image, with respect to the safety and quality

of product. Increased innovation in the industry will lead to newer, healthier products and

lower production costs, both of which should increase profit margins.

India is fervently poised for the Food Revolution This will ensure agricultural

diversification and large investments in food processing. The concept of food security has

two dimensions availability of food and access to food. 30% of the food produced in

the country is wasted. There is a need to increase the range of foods available to improve

overall nutrition. Special foods for patients suffering from hypertension, diabetes gives

health benefits. Packaging of food products has become important to ensure safety and

hygiene.

Indian food and beverage sector comprises of diverse segments and each segment has

large number of product categories. Majority of the segments have been recording double

digit growth rates in the last few years with some of them even growing by 30%

annually. India is fast emerging as a leading producer and consumer of packaged food

products, non-alcoholic beverages, alcoholic beverages, dairy products and meat and

poultry products.

The young Indian consumers backed by higher purchasing power have also created a

fast-food revolution in the country since the last decade. This phenomenon is fast

attracting the global major fast food chains to the second most populous country in the

world. Global major chains like McDonalds, Yum Brands (KFC and Pizza Hut),

Dominos Pizza and Subway have already established their presence in India. Other

majors like Starbucks and Dunkin Donuts entered the market in 2012. Many others like

Burger King are planning to enter the Indian market after the government announced

foreign investment reforms in the retail sector.


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1.2ABOUT THE ORGANIZATION1.2.1 Profile of the Organization

Devyani International Limited (An associate company of 3000 croreRJ Corp- largest

bottler for Pepsico- with interests in Beverages/Food/ Beer/Milk/ Ice-cream/ Stem-cell/

Real Estate/ Education) is the fastest growing, customer centric, profitable player in the

Indian retail F&B sector, with presence in different space zones cutting across Indian

subcontinent, Nepal and Nigeria. Devyani International Limited currently has a visibility

of 300+ outlets of Pizza Hut, KFC, Costa, Vaango Swensen's, and many other brands.

Devyani International Limited is the largest franchisee for Pizza Hut and KFC in India. It

also has Pan India franchisee rights for Costa Coffee and also and now Swensen's Ice

creams. With this distinguished track record and expertise in the QSR segment, Devyani

International Limited has launched its own brand Vaangoa world class south Indian

QSR chain and plans to take it across India. Vaango offers authentic South Indian food in

a genX ambience.

Every operation at Devyani International Limited is governed, regulated and activated by

our Mission Statement: "To be a people centric, customer focused and process driven

operations, striving for excellence, day in day out with a beat year ago and turnaround

mentality".

Devyani International Limited envisions to be the best restaurant company in India for

customers and employee alike. Devyani International Limited has a passionate and

committed team; and it has strong intentionality and method to realize this vision, for

sure. Devyani International Limited leverages some powerful management tools to drive

its' operations. Some of these tools and processes include Balance Score Card, Employee

P&L, Bench-planning and Voice of Champions.

With aggressive growth strategy in place, Devyani International Limited is irrevocably


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committed to being a "people centric, customer focused and process driven operations,

striving for excellence with a turnaround mentality. Devyani International Limited will

continue to vigorously pursue its journey to be the best for customers- both internal and

external.

Vision

To be the most preferred restaurant company for people and customer alike.

MissionTo be people centric,customer focused & process driven operations striving for

excellence day in and day out with a beat year ago & Turnaround Mentality.

Devyani International Limited VALUES:

Ownership

This Devyani International Limited value encourages demonstration of proactive

approach, care and concern for utilization of all available resources, recurring personal

initiatives and information sharing.

Customer First

This Devyani International Limited Value is about delighting- not only satisfying- both

internal and external customers, walking an extra mile to meet customer's expectations;

By being passionate about maniacal service delivery and recognizing and fulfilling

interests of all stakeholders.

Profitability


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This value is aligned to enhance resource efficiency and effectiveness.

Growth

At Devyani International Limited the continuous focus is towards visible action for

overall development; leveraging opportunities to enhance 'canvas' of operations.

1.2.2 Competitive Status

The industry is highly competitive with respect to price, value and promotions, service,

location, and food quality. There are a substantial number of restaurant operations that

compete with us for customer traffic, some of which have significantly greater resources

to aggressively market to consumers, which could result in our concepts losing market

share. Consumers are highly focused on value and if other restaurants are able to

promote and deliver a higher degree of value, our guest traffic levels may suffer,

impacting revenues. In addition, with improving product offerings at quick-service

restaurants and grocery stores, coupled with the present state of the economy, consumers

may choose to trade down to these alternatives, which could also negatively affect

revenues.

Restaurant companies are essentially retailers of prepared foods, and their operating

performance is influenced by many of the same factors that affect traditional retail stores.

For the most part, restaurants have business models that are relatively easy to understand,

and the array on the Value Line page is the same as that of a standard industrial company.

Nonetheless, there are a number of unique factors to consider when making investment

decisions regarding this large and segmented industry.

Competition between restaurants is intense, since dining options abound. And, while

there are certainly dominant players in this industry (especially among fast-food

purveyors), no one company has the market cornered. Indeed, virtually every restaurant

location must compete not only against other publicly traded chains, but also a wide array


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of small, local establishments. Competitors include everything from delis and pizzerias to

fine-dining restaurants. And, of course, it is relatively easy to forgo prepared foods,

altogether, in favor of home cooking, which is usually a less expensive option. Thus,

restaurant meals are discretionary purchases, and the industry tends to be highly cyclical.

Sales

Top-line growth is typically generated in two ways, opening locations and boosting

same-store sales. Opening new doors is a straightforward strategy, and usually the main

driver of revenue when a company is in its early stages. As a chain grows in size,

however, it becomes increasingly difficult to capture benefits. The best, most profitable

locations are established first, and then managers must be careful not to place restaurants

too close together, lest they cannibalize each other's sales.

Comparable-store sales, or "comps", is a valuable metric to examine when analyzing

restaurants. Comps are particularly important once a company reaches maturity, since

they become the primary driver of growth. Product innovations and menu-price increases

are two of the most common ways to increase same-store sales. Remodeling existing

locations is another way to boost guest traffic. Furthermore, promotions and limited-time

offers are widely used to attract diners. Investors should also pay attention to trends in thedollar value of the average guest check, as this can shed additional light on what exactly

is driving sales.

Margins

Management's execution and ability to deliver a menu that appeals to a wide range of

palates go a long way toward determining a restaurant's margins. Most companies in this

industry have operating margins in the mid- to upper teens, and net profit margins in the

mid- to high-single digits. Food costs are obviously an important line item and, at times,

can fluctuate wildly. Prices for staples, such as corn, chicken, beef and dairy, can move

greatly, depending on factors like crop yields, feed costs and other external demand

factors.


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Labor is another major cost for service-oriented restaurants. Typically, workers earn

modest salaries, often at or just slightly above government-mandated minimum wages.

Employees that fall into this category are usually fast-food workers, dishwashers and bus

boys. Servers, who make the lion's share of their money through tips, are usually paid

even less. Consequently, changes to federal or state minimum-wage laws can have a

noticeable impact on a restaurant's costs and margins.

Fast Food vs. Casual Dining

Restaurants can be loosely broken down into two broad categories: fast food and casual

sit-down establishments. The same general factors discussed above dictate the

performance of each group, but sit-down restaurants tend to be more expensive, making

them even more sensitive to consumer budgets and the health of the economy. Fast-food

restaurants, being less dependent on macroeconomic conditions, are better defensive

investment plays. In a recessionary environment, their convenience and value make them

attractive options for diners seeking inexpensive meals or for those trading down from

casual-dining establishments.

Convenience is a major part of the fast-food business model, so a vast network of stores

is essential to success. In addition to expansive hamburger chains, there are a number oflarge players that focus on niches, such as sandwiches and pizza.

Fast food is responsible for most of the industry's international sales. Foreign markets

offer vast growth potential for companies willing to take on the challenge of finding a

successful formula that appeals to a wide array of customs and tastes. A well-know brand

name provides a huge leg up when expanding overseas, which is one reason why fast-

food makers dominate the international arena. The convenience of these restaurants and

their typically inoffensive menus, which appeal to most diners, are other pluses.

Investment Considerations

Restaurant stocks have a number of attractive attributes. Their business models are easy

to understand, as are the factors that effect their performance. Most are cyclical, so broad


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economic conditions often play an outsized roll in the group's overall performance.

However, fast-food retailers can sometimes provide more shelter in a down economy.

Conservative investors might find the stocks of mature operators appealing as growth-

and-income holdings. Conversely, fledgling companies, with new or unique formats, use

most of their cash flow for expansion, and their stocks may offer attractive 3- to 5-year

appreciation potential to the more venturesome.


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1.2.3 SWOT Analysis of the Organization


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observe crispy dosas being prepared at the Live Kitchen. All at a reasonable price choice.

It serves authentic vegetarian South Indian food in a modern ambience, and caters to all

age groups whore willing to try something new, fun, but with an authentic taste. The

above unique brand features have been designed keeping in mind consumer insights and

preferences authenticated in our internal research that was conducted among our target

audience in key markets.

Their consumers are those with a progressive lifestyle, who enjoy eating out, but clearly

prefer good value. Those for whom eating out is a social statement. People who consider

eating as an enjoyment will form the core of the brand.

Besides serving one of the healthiest cuisines in the country, Vaango offers warm, quick,

efficient and friendly customer service and highest quality food. Our outlets are designedwith an open kitchen concept thats been based on the principle of world class quality &

hygiene: You can now enjoy watching your Dosa being made right in front of you.

Also, a special health section on the menu includes neer dosas & appams. There are

seating zones for friends, family, and comfort seating with soothing music to enhance the

overall experience. In a unique effort, Vaango makes the eating experience more

interactive and fun: It engages customers with Facebook, which offer fun contests, menu

updates, reviews, discussion forums. As a part of the fun experience they made the

experience instantly transferable through a touch screen based Facebook app.

A customer can simply click his photo through the touch screen and upload it on

facebook within seconds, recording his Vaango moment at their Live web station. Being

a part of the Vaango club makes their consumer feel special and privileged. Customers

are also welcome to join the Mobile Loyalty programme where they avail special offers

as a part of their loyalty club. They also encourage people to use sms and engaging

touchscreen as a feedback mechanism, and they are very responsive to suggestions and

ideas shared by their guests. At Vaango, they do all that can make every guest feel

comfortable and welcome. They have friendly and efficient services with great value

prices and provide a cheerful, interactive ambience for their guests.


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Their aimis to passionately deliver the highest levels of experiential services, maintain

consistency in serving the highest quality products and become a globally competitive

organizationone that is driven by an insatiable thirst for excellence. Their focus will be

on innovation and continuously providing guest relevant experiences to keep things fresh

for their customers.

At present, Vaango has 8 outlets in delhi-NCR. It is the perfect place for the youngsters,

if the mood is to have south Indian food. Unlike many other restaurants, Vaango isnt

old-fashioned. The place is full of energy and there is an open kitchen with neatly clad

chefs, making it look like a cool college dining hall more than anything else. And

naturally, in a place like this you wont be blamed for expecting the experience to be justpassable. Vaango astonishes you with its detail to accuracy of flavor and appearance. The

Dal Vada is just like you dreamt of and doesnt have a single mark of oil showing. The

side dishes like sambar as well as the chutneys, particularly the coconut option, are

exceptionally fresh and tasty.


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CHAPTER 2

RESEARCH METHODOLOGY


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Research methodology is a way to systematically solve the research problem. It may be

understood as a science of studying how research is done scientifically. In it we study the

various steps that are generally adopted by a researcher in studying his research problem

along with the logic behind them. It is necessary for the researcher to know not only the

research methods/techniques but also the methodology. Researchers not only need to

know how to develop certain indices or tests, how to calculate the mean, the mode, the

median or the standard deviation or chi-square, how to apply particular research

techniques, but they also need to know which of these methods or techniques, are

relevant and which are not, and what would they mean and indicate and why. Researchers

also need to understand the assumptions underlying various techniques and they need to

know the criteria by which they can decide that certain techniques and procedures will be

applicable to certain problems and others will not. All this means that it is necessary for

the researcher to design his methodology for his problem as the same may differ from

problem to problem. For example, an architect, who designs a building, has to

consciously evaluate the basis of his decisions, i.e., he has to evaluate why and on what

basis he selects particular size, number and location of doors, windows and ventilators,

uses particular materials and not others and the like. Similarly, in research the scientist

has to expose the research decisions to evaluation before they are implemented. He has to

specify very clearly and precisely what decisions he selects and why he selects them so

that they can be evaluated by others also.

From what has been stated above, we can say that research methodology has many

dimensions and research methods do constitute a part of the research methodology. The

scope of research methodology is wider than that of research methods. Thus, when we

talk of research methodologywe not only talk of the research methods but also consider

the logic behind the methods we usein the context of our research study and explain why

we are using a particular method ortechnique and why we are not using others so that

research results are capable of beingevaluated either by the researcher himself or by

others. Why a research study has been undertaken, how the research problem has been

defined, in what way and why the hypothesis has been formulated, what data have been

collected and what particular method has been adopted, why particular technique of


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analysing data has been used and a host of similar other questions are usually answered

when we talk of research methodology concerning a research problem or study.

2.1 OBJECTIVE OF THE STUDY

1. To study the customer perception of Vaango Restaurants.2. To study the overall consumer behavior with respect to dining out.3. To develop strategies for Vaango to increase its customer satisfaction & market

Share.

4. To explore those attributes that customers perceive as meet their expectationlevel in their selection of a restaurant.

5. To determine the influence of food quality, atmosphere, service quality,convenience, and price and value on customer satisfaction, return intention, and

word-of-mouth endorsement.

2.2 SCOPE OF STUDY

The research was carried out to know the customer behavior and perception of customers

about Vaango Restaurant. The main motive was to find:

Attitude of the customer. General perception of the customer about the products and services offered by

Vaango Restaurant.

How did they come to know about Vaango Restaurant? Experiences while dining in Vaango Restaurant. Suggestions and scope of improvement for brand Vaango.

This data is very important for Vaango Restaurant in order to know the customers

preference and thus help in increasing the Number of Transactions.


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2.3 METHODOLOGY

Methodology is the systematic, theoretical analysis of the methods applied to a field of

study, or the theoretical analysis of the body of methods and principles associated with a

branch of knowledge. It, typically, encompasses concepts such as paradigm, theoretical

model, phases and quantitative or qualitative techniques.

A Methodology does not set out to provide solutions but offers the theoretical

underpinning for understanding which method, set of methods or so called best

practices can be applied to a specific case.

It has been defined also as follows:

1. "the analysis of the principles of methods, rules, and postulates employed by adiscipline";

2. "the systematic study of methods that are, can be, or have been applied within adiscipline";

3. "the study or description of methods".A methodology is the design process for carrying out research or the development of a

procedure and is not in itself an instrument for doing those things. Using it as a synonym

for method or set of methods, leads to misinterpretation and undermines the proper

analysis that should go into designing research. Generally for any research study both

primary and secondary research are done which facilitates in the better understanding of

the entire study. Primary research helps garner relevant and adequate data of the current

state of affairs pertaining to any subject and provides an insight into the exact nature of

the problem.


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2.3.1 Type of Research

Quantitative Research

Quantitative research is based on the measurement of quantity or amount. It is applicable

to phenomena that can be expressed in terms of quantity. It usually involves collecting

and converting data into numerical form so that statistical calculations can be made and

conclusions drawn. Data is collected by various means following a strict procedure and

prepared for statistical analysis.

Qualitative Research

Qualitative research is concerned with qualitative phenomenon, i.e., phenomena relating

to or involving quality or kind. It is about recording, analysing and attempting to uncover

the deeper meaning and significance of human behaviour and experience, including

contradictory beliefs, behaviours and emotions. Researchers are interested in gaining a

rich and complex understanding of peoples experience and not in obtaining information

which can be generalized to other larger groups.

A Qualitative Researchhas been adopted to carry out the study.

2.3.2 Research Design

A research design is the arrangement of conditions for the collection and analyses of data

in a manner that aims to combine relevance to the research purpose with economy in

procedure. The research design is the conceptual structure within which research is

conducted; it constitutes the blueprint for the collection, measurement and analyses of thedata.

Descriptive vs. Analytical: Descriptive research includes surveys and fact-finding

enquiries of different kinds. The major purpose of descriptive research is description of

the state of affairs as it exists at present. The main characteristic of this method is that the


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researcher has no control over the variables; he can only report what has happened or

what is happening. Most ex post facto research projects are used for descriptive studies in

which the researcher seeks to measure such items as, for example, frequency of shopping,

preferences of people, or similar data. Ex post facto studies also include attempts by

researchers to discover causes even when they cannot control the variables. The methods

of research utilized in descriptive research are survey methods of all kinds, including

comparative and correlational methods. In analytical research, on the other hand, the

researcher has to use facts or information already available, and analyze these to make a

critical evaluation of the material.

Exploratory vs. Conclusive:

Exploratory research seeks to develop initial hunches or insights and to provide direction

for any further research needed. Initial research is often needed to properly identify the

problem to be researched. Exploratory research is used for preliminary investigation. The

primary purpose is to identify objectives and needs.

Conclusive research aims to verify insights and to aid decision makers in selecting a

specific course of action. Conclusive research is sometimes called confirmatory research,

as it is used to "confirm" a hypothesis. This research focuses on obtaining and analyzing

specific data to address specific questions. Conclusive research is often used to reach

final decisions. The primary purpose of conclusive research is to help decision makers

choose the best course of action. This research tends to be more formal and rigorous.

The research is based on sampling design which deals with the method ofselecting items to be observed for the given study.

The research is Exploratory& Descriptivein nature.


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2.3.3 Sources of Data Collection

Primary Data: The primary data are those which are collected afresh and for the first

time, and thus happen to be original in character. In primary data collection, the data is

collected by the researcher himself using methods such as interviews and questionnaires.

The key point here is that the data collected is unique to researcher and his research and,

no one else has access to it.

Advantages:

Addresses specific research issues as the researcher controls the search design to fit theirneeds

Great control, not only does primary research enable the marketer to focus on specificsubjects, it also enables the researcher to have a higher control over how the information

is collected. Taking this into account, the researcher can decide on such requirements as

size of project, time frame and location of research.

Efficient spending for information, primary data collection focus on issues specific to theresearcher, improving the chances that the research funds are spent efficiently.

Proprietary information, primary data collected by the researcher is their own.Disadvantages:

Compared to secondary research, primary data may be very expensive in preparing andcarrying out the research.

In order to be done properly, primary data collection requires the development andexecution of a research plan. It is longer to undertake primary research than to acquire

secondary data.

Some research projects, while potentially offering information that could prove quitevaluable, may not be within the reach of a researcher.

May be very expensive because many people need to be confronted. By the time the research is complete it may be out of date.


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People may have to be employed or avoid their primary duties for the duration of theresearch.

People may not reply if emails or letters are used.There are many methods of collecting primary data and the main methods include:

Questionnaires Interviews Observation Case-studies

Questionnaires

Questionnaires are a popular means of collecting data, but are difficult to design and

often require many rewrites before an acceptable questionnaire is produced.

Advantages:

Can be used as a method in its own right or as a basis for interviewing or a telephonesurvey.

Can be posted, e-mailed or faxed. Can cover a large number of people or organisations. Wide geographic coverage. Relatively cheap.

Disadvantages:

Design problems. Questions have to be relatively simple. Historically low response rate (although inducements may help). Time delay whilst waiting for responses to be returned. Require a return deadline


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Sources of secondary data

Business journals Quality manuals Magazines broachers Internet books

Advantages

Use of secondary data is very convenient. It saves time and finance. In some enquiries primary data cannot be collected. Reliable secondary data are generally available for many investigations.

Disadvantages

It is very difficult to find sufficiently accurate secondary data. It is very difficult to find secondary data which exactly fulfils the need of present

investigation.

Extra caution is required to use secondary data. These are not available for all types of enquiries

2.3.4 Sample Design & Sample Size

A sample design is a definite plan for obtaining a sample from a given population. It

refers to the technique or the procedure the researcher would adopt in selecting items for

the sample. Sample design may as well lay down the number of items to be included inthe sample i.e., the size of the sample. Sample design is determined before data are

collected. There are many sample designs from which a researcher can choose. Some

designs are relatively more precise and easier to apply than others.


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Convenience Samplingis used in analyzing consumer behavior and perception. Initially

the questionnaire was administered to 114 respondents, randomly selected by mall

intercepts.

Scaling Technique

Rating Scaling Techniqueis used in doing the survey. When we use rating scales

(or categorical scales), we judge an object in absolute terms against some specified

criteria i.e., we judge properties of objects without reference to other similar objects.

These ratings may be in such forms as like-dislike, above average, average,

below average, or other classifications with more categories such as like very

muchlike somewhatneutraldislike somewhatdislike very much;

excellentgoodaveragebelow averagepoor, alwaysoften

occasionallyrarelynever, and so on. There is no specific rule whether to use a

two-points scale, three-points scale or scale with still more points. In practice, three

to seven points scales are generally used for the simple reason that more points on a

scale provide an opportunity for greater sensitivity of measurement.

2.3.5 Tool of Primary and Secondary Data Collection

The source of data used in this project was the primary source of data using following

instruments:

Observation Questionnaires Face-to-Face interaction

Data was collected through primary and secondary sources:

Use of PRIMARY DATA in project

Primary Data has been collected by Observation, using structured questionnaire,to be filled up by the customers coming to Vaango.


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Face to Face interaction is being done to know more about customer perception.Observation

SWOT Analysis

Use of SECONDARY DATA in project

Secondary data has been collected from the company manuals and documents,

internet, past sales trends.


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CHAPTER 3

FINDING & ANALYSIS


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Q1. Is this your first visit?

Fig. 3.1

Interpretation

As Vaango, a South Indian Chain is a New Brand so its visibility is quite less. A lot of

people are unaware about the Brand. Out of respondents, 42% of people are first time

visitor and rests of them are visiting regularly. This shows that the people who are

coming first time like the food and they prefer Vaango over other South Indian

Restaurants. As the Brand focuses on Quality & Consistency, this means that the Brand is

capable of retaining the customers.

Yes

42%

No

58%

First Visit


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Q2. How frequently do you visit Vaango?

Fig. 3.2

Interpretation

Out of the respondents who are coming regularly, the question highlights how frequently

they do come to Vaango.

Only 10% are coming once a week & 11% are coming on daily basis, this shows; this

includes the people who are working in the mall as South Indian Cuisine is light &

healthy to have as compared to other food. Any change in the food quality, they could

easily tell.

31% of people are coming occasionally. This means they like the food but they might not

have the time, or the place is unreachable, or they are not much into South Indian food.

48% are coming once a month. They also like the food and enjoy coming to Vaango.

Daily

11%

Occasionally

31%Once a month

48%

Once a week

10%

Visit to Vaango


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Q3.How do you come to know about Vaango?

Fig. 3.3

Interpretation

As the brand visibility is low, so it is very important to know how they come to know

about Vaango. They have flyers distribution outside the mall, tie ups with big bazaar,

easy day, lifestyle etc. at different outlets to distribute offer coupons along with their any

purchase.

41% come to know through other sources which includes staying nearby, just passing by,

word of mouth corporate tie ups & through their promotional activities.

Only a few got to know through online.

Online4%

Friends

30%

Flyers

25%

Others

41%

Come to Know about


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Q4. Do you like our food?

Fig. 3.4

Interpretation

Almost everybody likes the food. This increases their customer retention and also make

loyal to the brand. South Indian Cuisine is available anywhere so what the customer

aspires is good quality & authenticity.

93% said Yes & 7% said No.

According to the survey, food is upto the mark but still some people dint like the food

because of their different tastes.

Yes

93%

No

7%

Like the Food


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Q5. Did you find any difference in the food taste when compared to your earlier visits?

Fig. 3.5

Interpretation

Consistency is very important to retain the customer. They remain attached to the brand

until they are getting same or improved taste everytime. Only a very few said that the

taste was not upto the mark. So it is necessary to look into the problem & solve it

immediately.

87% found the same taste every time they visit.

11% found it slightly different but it was acceptable.

Same

87%

Slightly Different11%

Very Different

2%

Difference in Food Taste


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Q6. How was your overall experience?

Fig. 3.6

Interpretation

Variety:

76 said its good, 32 said average & 6 said it needs improvement.

This shows that Vaango needs to add up more variety to increase their customer footfall.

As this focuses only on South Indian food so they need to bring more varieties in their

menus.

Taste:


Taste is the key factor that builds the image of any food brand. They have to take serious

steps to improve the taste otherwise they will lose their customer.

Quality of Service;

0

20

40

60

80

100

120

Variety Taste Quality of Sevice

Music

Overall Experience

Good

Average

Needs Improvement


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Customer delight is the most important aspect in order to retain them. Good service

makes them a loyal customer and hence, improves the brand image.

Music is good.

Q7. What changes would you like to see at Vaango to make you visit again & again?

No self service Better food quality Home delivery More corporate tie ups Include more varities Improved Services

Q8. Please share 3 things you like and 3 things you don't like?

Things that are liked by the customers are:

Good environment Instant order placed & recvd, Great music Good quality food Smiling associates, Portion size Ambience, food, price

Things that are not liked:


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Self service No home delivery

Q9. Which other south Indian restaurant do you visit?

Fig. 3.7

Sagar Ratna & Sarvana Bhawan are the core competitors of Vaango.

According to the above analysis, 42% visited the Sagar ratna, 25% sarvana bhavan & others were

33% which included restaurants like Haldirams, dosa xpress etc.

When the customers were asked about their preferences, they preferred Vaango over Sagar Ratna

& others restaurants. Sarvana Bhawan remained the major threat.

Sarvana

Bhawan

25%

Sagar Ratna

42%

Others

33%

which other south Indian restaurant

do you visit?


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CHAPTER 4

LIMITATIONS OF THE STUDY


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Limitations:

1) Time

During the internship, time was the main constraint. It was only 2 months, Due to this wewere not able to take more samples and hence the sample size has to be restrained.

2) Vast area of study

As there are 8 outlets, so it was not possible to get feedback from every outlet. Every

outlet has its own problems. To understand the customer perception of Vaango, it is

necessary to pin down the customer response from each outlet.

3) Lack of Interest

Some respondents are not interested in giving the proper feedback so this has to take into

consideration.


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CHAPTER 5

SUGGESTION/ RECOMMENDATION


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1. Brand Differentiation and Consumer Relevance to Drive Revenue Growth

In the past, restaurants competed largely on the basis of food and operations. As the

competition for stomach-share plays out, restaurants across and within segments will be

competing more on brand management and loyalty, and their ability to make themselves

more relevant to todays consumers.

With increasing competition from convenience stores and Fast Casual, brand

differentiation will be especially critical for fast-food restaurants, QSR concepts begin to

step up and innovate by testing and implementing interesting tactics, including new day-

part food strategies, kiosks and new delivery options.

Diversified beverage offerings are also being explored. Winning restaurants are drawing

in diners with happy-hour promotions and incentivizing increased spending by featuring

exciting options such as krushers, coolers etc

2. Convenience, Value and Quality are Key

As restaurants pursue new strategies, it is important to keep in mind that food quality is

still No. 1 for consumers. But the packing order is their demand for a balance of high-

quality, on-the-go options with convenience, value-pricing and variety. Food quality is

still king, and will need to be a central focus of any restaurants strategy and brand

positioning but convenience stores are necessary.

3. Healthy Menu is Tablestakes

Though food quality and price remain the key drivers of restaurant choice, the desire to

eat healthy has become an increasingly important factor in consumers decision-making.

Healthy menu options are no longer just good to have healthy is now tablestakes.

Restaurants are beginning to recognize this, and while some have responded with new

offerings such as healthy menu options for kids, diet conscious people.


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4. Mobile and Local Marketing are Great Untapped Opportunities

To win in the coming brand wars, restaurants will need to employ a diverse media

strategy to include social media, mobile marketing and local marketing. Many restaurants

are exploring differentiated marketing tactics, but as a whole, says the firm, restaurants

are underdeveloped in this area..

Digital and especially mobile marketing is the great untapped opportunity for restaurants

to build brand loyalty and capture share. Its not just about TV, big ads and mass media

anymore; its more about knowing diners, connecting through new media and then

connecting on the local level as well.

5. Discounting & Promotions Will Continue But New Techniques Will Also

Emerge

With consumers unwilling to move on price, the meal deal, promotions, limited-time-

offers and discounts that have flooded the market for the past few years are necessary to

stay, When it comes to pricing, restaurants need to be just as creative as consumers have

been in figuring out ways to lower the bill. Some restaurants are already becoming better

at pricing menus in a way that allows them to manage their margins. Advanced

techniques include tiered pricingfor example, charging higher prices for appetizers and

drinks instead of for popular, center-of-the-plate items.

Pricing should be a combined effort of the finance, marketing and product-development

departments. But the foundation has to be analytics that take into account factors such as

demographics, local competition, margin targets and costs.


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Questionnaire

1. Is this your 1stvisit to VAANGO? Yes No2. How frequently do you visit Vaango?

a) Dailyb) Once a weekc) Once a Monthd) Occasionally

3. How did you come to know about Vaango?

Online Friends Flyers Others

4. Do you like our food? Yes No

5. Did you find any difference in the food taste when compared to your earlier

visits?

Same

Slightly Different

Very Different

6. How was your overall experience? Please rate us on the following criterion:

Variety

Taste

Quality of service

Music

Needs

Im rovement

AverageGood


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7. What changes would you like to see at Vaango to make u visit Vaango again &

again?

______________________________________________________________________

8. Please share 3 things you Like & 3 things you dont like about Vaango?

Likes Dislikes

1) ..................................... 1).....................................2) ..................................... 2).....................................3) ..................................... 3).....................................9. Which other south Indian restaurant do you visit and what do you like the most

about it?

Sagar Ratna

Sarvana Bhawan

Any Other (Please Specify).................................................

Help us know you better:

Name:...

DOB.. Anniversary.

Email:.. Phone no


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BIBLIOGRAPHY

BOOKS:

Kumar Ranjit (2009) Research Methodology, 2nd edition, Pearson Education,New Delhi

Cooper Donald and Schindler P.S. (2009) Business Research Methods, 9thedition, Tata McGraw Hill, New Delhi

Kotler Philips, Marketing Management Analysis, Planning Implementations &Control Edition, 1998. Prentice Hall of India Ltd. New Delhi.

Zeithaml V.A., Bitner M. J. and Pandit A. (2008), Services Marketing, 5thEdition, Tata McGraw Hill Publishing Co. Ltd. New Delhi.

WEBSITES:

Company Website:

www.rjcorp.in www.dil-rjcorp.com www.vaango.in

Other References:

www.fnbnews.com www.foodmarketresearch.com www.facultyjournal.com
http://www.dil-rjcorp.com/http://www.fnbnews.com/http://www.foodmarketresearch.com/http://www.facultyjournal.com/http://www.facultyjournal.com/http://www.foodmarketresearch.com/http://www.fnbnews.com/http://www.dil-rjcorp.com/

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