A new fast food chain enterprise and the Porter’s Five Forces Model

By: 168, 169,170,171,173

Introduction Nishanth Raghuram

173

“We, within the next 10 years aspire to become the largest sellers of fresh pizzas in

India “

Our Vision

To serve our guests with

A healthy

A happy&

A huge meal

Our Mission

To break even in 4 months To double outlets in 6 months Clear the bank loan at the end of the next

year Double advertising spends in the third year A new product every 3 months

OBJECTIVES

STRATEGIES

Garner more investments Restrict marketing spends Diversify into complementary categories

The Business strategy

3 cooks/restaurant 2 customer managers 6 tables/restaurant Home delivery only in locality

The Operations strategy

Sell pizzas and complementary products 50% discounts for orders between 11am

and 2pm (only weekdays) Subscription for coupons A referral system Catering in parties (dominos does it)

Revenue Model

Flyers to local societies Inaugural offers Buy 4 pizzas in a month and get the 5th free

Advertising

Comparison of StrategiesMitika Verma

171

Dominos-strong service facilities like ’30 min’s NAHI TO FREE’ (otherwise FREE)

Low price menu Variety of Pizza’s More outlets- Quick service Excellent offers Leader in online ordering of pizzas

Comparison of strategies

Pizza Hut: Emphasizes more on the ambience Good Quality Makes the customer feel important  Dine in facility in their outlets

Think Global Act Local Provide a decent ambience Good quality Pizzas and beverages Gain atleast 55% revenue from our supply

chain Efficient e business with atleast 90% ontime

delivery rate “Yes u will get this free but after 25

minutes!”

Our strategy

Use of the HeatWave insulated delivery bag Make choices Flexible Distribution Channels: Speedy and reliable

channels are essential Build up consumer loyalty

Product Focused menu enables quality consistency

and operational efficiency. Total operational process is completed within 12-15 minutes.

Place : Focussed near college campuses and offices

Price: Competitively priced product Promotion: Great online deals, tie up with

Groupon, telecommunication by messages, application. New deals per week.

Marketing Mix

Differentiation

-Differentiation in this industry can be focused more towards your atmosphere and unique menu items

-Brand and product advertisement can also be major players in becoming a brand name and bringing customers in to your industry

Key Success Factors

Competing on Low Cost-In a synonymous industry, consumers can find a good pizza at a comparable price from just about any of the competitors -It is important to cut down on overhead cost of our firm in order to make the most off of our sales

Key Success Factors

Bargaining Power of Customers

Anukriti Kothari168

◦Even though customer switching costs are nearly zero, the fast food industry does not worry about loyalty because significant number of people eats in a fast-food restaurant each day.

◦It is this volume that keeps customer bargaining power

low by diluting the effect of a few picky customers.

Bargaining can be encompassed throughout the process of deal. The following are some these areas where a customer can bargain :

1) On the product price or any package of products what they buy:

• For this there will be 5 sizes of pizzas available

• Accordingly they will be competitively priced.

2. On provision of services whether it is pre deal service or post deal. communicating offers, options on online order, home delivery.

3. On taste and quality. – We Don’t make it till u order it.

4. On completion of schedule - This includes reducing the time of delivery of pizza and ensuring its hot.

5. On product modification according to the changing trends – customized pizzas based on toppings , base ,etc.

Bargaining Power Of Suppliers

◦Since. We have limited number of suppliers to choose from as standardization is to be maintained.

◦Good relationship with the suppliers and that’s why we can negotiate and receive bulk discounts.

◦Since we tend to make up a large portion of the supplier’s revenue, this severely limits the bargaining power of suppliers.

We have located our distribution centers near to suppliers location so as to reduce operating cost.

Rivalry from Competitive seller

Threat from competitive rivalry Our major competitors for fast food market

would be Dominoes , Pizza Hut and other pizza chains.

Our strategy would comprise of Lower cost strategy : Better product quality :Creating better brand image through advertisements New product innovations Potentials to provide buyers with custom made

products.

Lower cost strategy We follow Red ocean strategy .

Already existing ,fast growing market. Competitors occupy better position. Strategy of dominoes : Lower Cost & Quick delivery Our Strategy further lower cost by reducing

manufacturing cost. Managing database of each customer.

Threat of a substitute product

Strategy against Substitute product Food industry is growing in a very wider

range There are food outlets at every corner , at

gas stations , which are much cheaper especially as per Indian markets.

So a low cost strategy wont be the best option rather a differentiation strategy would work.

Pizzas has more filling , saucy and kids attraction.

The End !!