DESCRIPCIÓN DE LA ESTRATEGIA PARA LA GESTIÓN DEL CONOCIMIENTO EN EL CENTRO DE

The percentage share held by foodservice of total consumer expenditure on food has increased from a very low base to stand at 2.6% in 2001. Eating at home remains very much ingrained in Indian culture and changes in eating habits are very slow moving with barriers to eating out entrenched in certain sectors of Indian society.. The growth in nuclear families, particularly in urban India, exposure to global media and Western cuisine and an increasing number of women joining the workforce have had an impact on eating out trends.

Facts and figures:

Fast food is one of the world‘s largest growing food type. India‘s fast food industry is growing by 40% a year and is expected to generate a billion dollars in sales by 2005.The multinational segment of Indian fast food industry is up to Rs. 6 billion, a figure expected to zoom to Rs.70 billion by 2005. By 2005, the value of Indian dairy products is expected to be Rs.1, 00,000 million. In last 6 years, foreign investment in this sector stood at Rs. 3600 million which is about one-fourth of total investment made in this sector. Because of the availability of raw material for fast food, Global chains are flooding into the country.

Market size and major players:

a) Dominated by McDonalds having as many as 75 outlets.

b) Domino‘s pizza is present in around 100 locations.

c) Pizza hut is also catching up and it has planned to establish 125 outlets at the end of 2005.

d) Subways have established around 40 outlets.

e) Nirulas is established at Delhi and Noida only. However, it claims to cater 50,000 guests every day.

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Major players in fast food are:

 MCDONALDS

 KFC

 PIZZA HUT

 DOMINOS PIZZA.

 COFFEE DAY

 BARISTA.

The main reason behind the success of the multinational chains is their expertise in product development, sourcing practices, quality standards, service levels and standardized operating procedures in their restaurants, a strength that they have developed over years of experience around the world. The home grown chains have in the past few years of competition with the MNCs, learnt a few things but there is still a lot of scope for improvement.

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3.5 DOMINO’S

Size of the market:

Domino's Pizza is one of the biggest and fastest growing international food joints in South Asia. The very first Domino's Pizza outlet in India opened in Jan, 1996 at New Delhi. Today, Domino's Pizza India has become a wide network of Pizza delivery and food chain. There are close to 220 outlets in 42 cities of India and the brand is the top most among the food delivery business. Domino‘s Pizza outlets can be seen at major locations of Delhi and NCR. Their home delivery is free with a guarantee of ―Thirty Minutes Nahi to Free‖. Although they are expert in delivering Pizzas on time, their eating joints and outlets are also good. We plan to have a total of 500 stores in 75-80 cities by 2010 to 2011. It would entail an investment of Rs 200 million during the period Market growth:

During last four months, dominoes have opened outlets in Jammu, Panipat, Surat, Baroda, Nashik, Trivandum, Meerut and Patiala. While earlier, 70 percent of our business used to be in metros and mini-metros, now the ratio is 50:50 between big cities and smaller Tier II and III cities. Domino‘s Pizza is expanding its base in India by opening 500 outlets to add to its current tally of 156 outlets, across 50 cities in India by 2011 with an investment of Rs.1, 000 crore.

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Market strategies:

 Promotional and Advertisement Campaigns(Coupons and discounts)

 The '30 Minutes' Promise

 Use of Technology(Digital interactive Television, Internet on the PC, Mobile telephony)

 Premium Pricing Strategy

 Indian fast food industry and entry of multinational players

 Distribution strategies of fast food chains in India Market share:

The organized pizza market in India is worth Rs.500 crore and Domino‘s has a substantial 45% market share, and registered a healthy growth of 60% over last year. The main target for new outlets shall be metro cities though Tier II cities would also receive a fair amount of attention. Currently Domino‘s sells around 35,000 pizza every day, of which around 1% are given free on account of its ―30 minutes or free‖ model. 65 percent of its revenue comes from home delivery service; around 35 percent is from sales in premise.

Competitors:

Fast food is one of the world's fastest growing food types. It now accounts for roughly half of all restaurant revenues in the developed countries and continues to expand there and in many other industrial countries in the coming years. But some of the most rapid growth is occurring in the developing world; where it's radically changing the way people eat. People buy fast food because it's cheap, easy to prepare, and heavily promoted. This paper aims at providing information about fast food industry, its trend, reason for its emergence and several other factors that are responsible for its growth. India is a developing country with 2 percent of organized and 98 percent of unorganized sector. So most of the fast foods came into Indian market as India has a high growth in every sector.

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Some of the competitors of domino‘s are

 McDonald's food: Generally, Hindus avoid all foods that are believed to inhibit physical and spiritual development. Eating meat is not explicitly prohibited, but many Hindus are vegetarian because they adhere to the concept of ahimsa. Those seeking spiritual unity may avoid garlic and onions. The concept of purity influences Hindu food practices. Products from cows (e.g., milk, yogurt, ghee-clarified butter) are considered pure. Pure foods can improve the purity of impure foods when they are prepared together. Some foods, such as beef or alcohol, are innately polluted and can never be made pure. But now, Indians are switching to fast food that contain all those things that are considered impure or against there beliefs.

Some traditional and fundamentalist are against this transformation of food habit and number of times they provoke their counterparts to revolt against such foods.

And that is what happened when McDonald‘s decided to enter the complexity of Indian business landscape, counting only on its “fast food global formula”, without any apparent previous cultural training.

 Emphasis on the usage of bio-degradable products: Glasses, silverware, plates and cloth napkins are never provided with fast food. Instead, paper plates and napkins, polyurethane containers, plastic cups and tableware, drinking cartons or PET (polyethylene terephthalate) bottles are used, and these are all disposable.

Many of these items are tossed in the garbage instead of being recycled, or even worse, merely thrown on the ground. This burdens nature unnecessarily and