Capstone Project
Content
Introduction to project
A major task of the management is to recognize up diagnose problems. No problem exist until someone deserts that it does all though the particular situation may have existed for sometime unrecognized. Problems discovery is the first stage of any decision process and is the main objective of monitoring research. There is a problem when a decision maker faces uncertainty, which may concern either difficulties or opportunities. Difficulties are situation or developments that have negative or counterproductive consequences opportunities, on the other hand are the situations with positive potentials that, if recognized and capitalized on are profitable to the enterprise. Competitors may have recognized and moved them on earlier and their preemption of opportunity. Opportunities are more difficult to identify and challenge to solve but they may lead to profitable innovations.
1. Objectives of preliminary research
After discovering the problem, it needs to be defined and this should be a statement in the terms used by the decision maker.
The objective of preliminary research is to gather data on the
situation surroundings the supposed problem to determine. A correct definition of the problem. An understanding of its environment. Whether the initial feedback data, which triggered problem recognition accurately, pictured the situation. Preliminary Research has no standard Techniques.
2. Exploratory research
The next Question is that whether there is sufficient need to conduct an exploratory study such a study’s main purpose/objective would be to determine the approximate area where the problem’s rise and also to identify since attractive courses of action to solve it. It may incidentally also enable a sharper definition of the problem to be made. If an Exploratory study of alternatives were conducted. It would begin with identifying a number of hypotheses that are already known to the firm. BPCBA/TY/CP/2012-13 | 1
Discussion with managers in the company would probably bring out a number of hypotheses without having to leave the office/firm.
RESEARCH METHODOLOGY
1. Research objectives
To try and understand advertisement concept in India To analyze the T.V commercial of various products To find out whether people tend to buy the Fast Food products after viewing its T.V commercial Comparison of International Advertisements with the National Advertisement (service,style,music,concept) Comparison of different Fast Food Brands with reference to their T.V commercial’s and sales.
2. Research Scope
S.G. Highway, Ahmedabad
3. Secondary Data
Catalogues, Browsers, Support materials Websites Newspapers, Magazines
4. Primary Data
Survey of 80 respondents/youngsters/consumers
5. Sampling
Probability Sampling method was used Simple Random Sampling method was used for primary survey in Ahmadabad The sample size of 80 was also chosen to support the analysis
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6. Time Frame
6 Months 1st Two Months = Data Collection Next Month = Preparing Draft Last Three Months= Questionnaire, Analysis, Recommendations & Suggestions.
7. Age Group
15 years – 27 years We consider the youngsters as people aged between 15 yrs – 27 yrs and also those who are Unmarried.
8. Data analysis and tools used
After the data was collected through the Questionnaire, Data table was prepared and an analysis was doing using Pie-Charts and Briefing a little Description about the analysis.
9. Limitations
Sample size of 80 may be unreasonable Most of the secondary data was collected from the company websites. There was no tools available, which would measure and give the effectiveness of fast food advertisements on the Youngsters The outlets of K.F.C are still not launched in Gujarat but people are aware about it and are hoping for its early arrival.
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TABLE OF CONTENT
Chapter No.
I II III
No.
PREFACE
Particulars
Page No.
ACKNOWLEDGEMENT EXECUTIVE SUMMARY INTRODUCTION TO PROJECT RESEARCH METHODOLOGY
1
1 1.1 1.2 1.3 1.4 1.5 1.5.1 1.5.2 1.5.3 1.5.4 1.5.5 1.5.6 1.5.7 1.5.8 1.5.9
INTRODUCTION TO ADVERTISING INDUSTRY INDIAN ADVERTISING INDUSTRY ADVERTISING ADVERTISING, DIRECT MARKETING & TRADE PROMOTION BRAND RECOGNITION WILL CHANGE CUSTOMER PERCEPTION HISTORY THE 1900’S INDIAN AGENCIES, FOREIGN ADVERTISING IN THE THIRTIES INDIANISING ADVERTISEMENTS IN THE FOURTIES CORPORATE ADVERTISING IN THE FIFTIES CREATIVE REVOLUTION IN THE SIXTIES THE PROBLEMATIC SEVETIES GLUED TO THE TELEVISION IN THE EIGHTIES TECH SAVVY IN THE NINETIES IN THE NEW MILLINNIUM
9 10 11 12 14 15 16 17 18 19 20 22 23 25 27
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1.6 1.6.1
ADVERTISING COMPANIES TOP ADVERTISING COMPANIES OF INDIA
28 28
2
2 2.1 2.1.1 2.1.2 2.1.3 2.2 2.2.1 2.2.2 2.2.3 2.3 2.3.1 2.4 2.5
FAST FOOD INDUSTRY WHAT IS FAST FOOD? ON THE GO CUISINE GLOBALIZATION FAST FOOD ADVERTISING CAMPAIGN INTENTIONS TARGET AUDIENCE SPONSORSHIP METHODS OF ADVERTISING COMMON METHODS OF ADVERTISING TELEVISION COMMERCIALS FAST FOOD ADVERTISING UP BY 22%
31 32 33 33 34 35 35 35 36 37 37 38 40
3
3 3.1 3.1.1 3.1.2 3.1.3 3.1.4
TOP FAST FOOD OUTLETS Mc DONALD’S HISTORY PRODUCTS GLOBAL OPERATIONS Mc DONALD’S ADVERTISING
41 42 43 44 45 46
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3.2 3.2.1 3.2.2 3.2.3 3.2.4
SUBWAY PRODUCTS GLOBAL LOCATIONS SUBWAY ADVERTISING SLOGANS
48 49 51 52 52
3.3 3.3.1 3.3.2 3.3.3 3.3.4
PIZZA HUT HISTORY PRODUCTS PIZZA HUT ADVERTISING PASTA HUT
54 55 56 57 58
3.4 3.4.1 3.4.2 3.4.3 3.4.4 3.4.5
DOMINO’S PIZZA HISTORY FRANCHISEES 30 MINUTES GURANTEE DOMINO’S PIZZA ADVERTISING GLOBAL LOCATION
59 60 61 63 64 66
3.5 3.5.1 3.5.2
K.F.C HISTORY THE SECRET RECIPE
67 68 69
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3.5.3 3.5.4 3.5.5 3.5.6
PACKAGING MENU ITEMS (PRODUCTS) K.F.C. ADVERTISING INTERNATIONAL OPERATIONS
71 73 79 81
4
4 4.1 4.2 4.3 4.4 4.5 4.6 4.7
FACTORS AFFECTING PERCEPTIONS AFFORDABLE MEALS DRIVE SALES AT FAST FOOD CHAINS RIVALS DOMINO’S, PIZZA HUT EACH LARGE INDIAN MARKET ABSTRACTS FACTORS AFFECTING CONSUMER BEHAVIOUR CONSUMER BEHAVIOUR (7 P’S) THREAT OF ENTRY RIVALRY AMONG EXITING COMPETITORS
82 83 86
86 89 93 93
5
5 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8
TV AND ITS EFFECT TV TRANSMISSION AND RECEPTION SATELLITE TELEVISISON TV’S EFFECT TV VERSES OTHER MEDIA
94 95 96 97 98
MERITS AND DEMERITS OF TV ADVERTISING 99 SPECIAL MERITS OF TV MILESTONES OF A GLOBAL VILLAGE TV AS MEDIUM OF FUTURE 100 102 103
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6
6 6.1 6.2 6.3 6.3.1
RESEARCH FINDINGS INTRODUCTION INTRODUCTION TO RESEARCH ANALYSIS RESEARCH QUESTIONS DOUGHNUT PIE-CHART
104 105 106 107 107
RECOMMENDATIONS / SUGGESTIONS CONCLUSION IV V V.1 VI BIBLIOGRAPHY ANNEXURE QUESTIONNAIRE DEFINITIONS
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CHAPTER 1 INTRODUCTION TO ADVERTISING INDUSTRY
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Indian advertising industry
The Indian advertising industry is talking business today. It has evolved from being a small-scale business to a full-fledged industry. It has emerged as one of the major industries and tertiary sectors and has broadened its horizons be it the creative aspect, the capital employed or the number of personnel involved. Indian advertising industry in very little time has carved a niche for itself and placed itself on the global map. Indian advertising industry with an estimated value of es13, 200-crore has made jaws drop and set eyeballs gazing with some astonishing pieces of work that it has given in the recent past. The creative minds that the Indian advertising industry incorporates have come up with some mind-boggling concepts and work that can be termed as masterpieces in the field of advertising. Advertising agencies in the country too have taken a leap. They have come a long way from being small and medium sized industries to becoming well known brands in the business. Mudra, Ogilvy and Mathew (O&M), Mccann Ericsonn, Rediffussion, Leo Burnett are some of the top agencies of the country. Indian economy is on a boom and the market is on a continuous trail of expansion. With the market gaining grounds Indian advertising has every reason to celebrate. Businesses are looking up to advertising as a tool to cash in on lucrative business opportunities. Growth in business has lead to a consecutive boom in the advertising industry as well. The Indian advertising today handles both national and international projects. This is primarily because of the reason that the industry offers a host of functions to its clients that include everything from start to finish that include client servicing, media planning, media buying, creative conceptualization, pre and post campaign analysis, market research, marketing, branding, and public relation services. Keeping in mind the current pace at which the Indian advertising industry is moving the industry is expected to witness a major boom in the times ahead. If the experts are to be believed then the industry in the coming times will form a major contribution to the GDP. With al this there is definitely no looking back for the Indian advertising industry that is all set to win accolades from the world over.
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ADVERTISING
Advertising is a form of communication used to help sell products and services. Typically it communicates a message including the name of the product or service and how that product or service could potentially benefit the consumer. However, advertising does typically attempt to persuade potential customers to purchase or to consume more of a particular brand of product or service. Modern advertising developed with the rise of mass production in the late 19th and early 20th centuries. Many advertisements are designed to generate increased consumption of those products and services through the creation and reinvention of the "brand image". For these purposes, advertisements sometimes embed their persuasive message with factual information. There are many media used to deliver these messages, including traditional media such as television, radio, cinema, magazines, newspapers, video games, the carrier bags, billboards, mail or post and Internet marketing. Today, new media such as digital signage is growing as a major new mass media. Advertising is often placed by an advertising agency on behalf of a company or other organization. Organizations that frequently spend large sums of money on advertising that sells what is not, strictly speaking, a product or service include political parties, interest groups, religious organizations, and military recruiters. Non-profit organizations are not typical advertising clients, and may rely on free modes of persuasion, such as public service announcements. Money spent on advertising has increased dramatically in recent years. In 2007, spending on advertising has been estimated at over $150 billion in the United States and $385 billion worldwide, and the latter to exceed $450 billion by 2010. While advertising can be seen as necessary for economic growth, it is not without social costs. Unsolicited Commercial Email and other forms of spam have become so prevalent as to have become a major nuisance to users of these services, as well as being a financial burden on internet service providers. Advertising is increasingly invading public spaces, such as schools, which some critics argue is a form of child exploitation. In addition, advertising frequently uses psychological pressure (for example, appealing to feelings of inadequacy) on the intended consumer, which may be harmful.
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Advertising, Direct Marketing & Trade Promotion
English-language advertising in India is among the most creative in the world. TV advertising (especially in the Hindi language) has made major headway in the past 10 years, especially with the advent of satellite TV. Hindi TV channels - such as ZEE and Sony TV - have fashioned themselves on lines of Western channels, and most advertising on such channels are glitzy, smart and tailored for the middle classes. Such channels have forced the state-owned channel, Doordarshan, to add spice to their programmes which, earlier, were quite drab. The importance of the Hindi-speaking market (which is also fluent in English) is borne out from the fact that STAR TV, once an all-English channel, is now rich in Hindi programmes. Even the British Broadcasting Corporation is reportedly toying with the idea of airing Hindi programmes. Most major international advertising firms have chosen local Indian partners for their work in this market. Mumbai (formerly Bombay) remains the centre of the advertising business in India. India has a diverse and growing number of daily newspapers. Since 1991, the increase of business and financial news reports in English-language and vernacular dailies has paralleled the economic reform programme and the movements of the stock markets. Most leading publications have their circulation audited by the Audit Bureau of Circulation which has an India-dedicated office in Mumbai (formerly Bombay). Leading business newspapers include Business Standard and Economic Times. Magazines include India Today, Business India, Business Today, and Business World. In addition to advertising, other kinds of trade promotion activities are also well-developed in India. A large of exhibitions is held all over India, the most prominent ones at Pragati Maidan in New Delhi. Conferences and seminars are also widespread.
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Direct marketing
The mail service in India is slow though generally reliable. Telephone service is poor, but rapidly improving. While private courier services are growing strongly and the telecommunications sector is opening up for a range of modern services, until goods can be ordered conveniently and delivered with certainty, direct marketing will be limited to door-to-door sales. An inefficient stateowned banking system also prevents prompt transfers of funds from consumers to retailers. Credit card companies are increasingly targeting India's one million cardholders through directly-mailed offers of goods and services. The most successful direct marketers in India today are the millions of door-to-door sales representatives who visit neighborhoods and villages across India. From ice cream vendors to carpet sellers, India’s residential neighbourhoods are frequently visited by merchants offering a variety of products. Some soft-drink companies have used beauty queens to make surprise knocks on the doors!
Trade promotions
Trade promotion is a key activity in every marketing plan. It is aimed at increasing sales in the short term by employing promotion schemes which effectively increases the customer awareness of the business and its products. The response of consumers to trade promotions is not straight forward and is the subject of much debate. Non-linear models exist to simulate the response. Using MMM we can understand the impact of trade promotion at generating incremental volumes. It is possible to obtain an estimate of the volume generated per promotion event in each of the different retail outlets by region. This way we can identify the most and least effective trade channels. If detailed spend information is available we can compare the Return on Investment of various trade activities like Every Day Low Price, Off-Shelf Display etc. We can use this information to optimize the trade plan by choosing the most effective trade channels and targeting the most effective promotion activity
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Brand Recognition Will Change Customer Perception
Brand recognition is one of the best ways to build your business and using this method of business building can really offer you much success in whatever venture you are pursuing. Big Businesses know this and use it to their advantage. Understanding brand recognition will allow you to alter the perception of your business in the eyes of the general public. What sort of Advertising have you done until now? Do people at the very least know your name and what you have to offer? If the answer is a no then you have some work to do. People in the general are of your business need to know who you are. You don't have to push everyone into your door, but having them remember the name is an issue. Getting your name recognized is the beginning of new growth. To become recognized and remembered takes some time. You don't want to build false hype and rush through this. People will never forget the false part of the hype. That will give a bad case of long term brand rejection. My parents had a bad experience at a chain fast food type place over 10 years ago. Even though they have probably changed the entire staff several times over they will not go back for fear of something similar happening again. It is stuck in their minds. Brand recognition is accomplished only by people seeing your logo and business name over and over again. So therefore, if you are just beginning in business or are running a Marketing Campaign, then you need to make sure that you have everything imprinted with your custom logo and business name. This will create the repetition that your customers and future customers need to pick your product out of a crowd time and time again. Advertising is tricky. It can be really expensive and then it is all done so fast, and you have to do it all over again. With promotional products you get something in hand. It gets passed onto a possible customer. It will get worn or used and then others see it. There are many inexpensive products to use. There are coolers that will advertise for you on the beach. Frisbee's that will show off your name at the park. It will work for some good brand recognition.
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HISTORY
Indian Advertising starts with the hawkers calling out their wares right from the days when cities and markets first began Shop front signage’s from street side sellers to press ads the first trademarks Handbills distributed separately from the products 18th Century Concrete advertising history begins with classified advertising Ads appear for the first time in print in Hickey's Bengal Gazette, India’s first newspaper (weekly). Studios mark the beginning of advertising created in India (as opposed to imported from England) Studios set up for bold type, ornate fonts, more fancy, larger ads Newspaper studios train the first generation of visualizes & illustrators Major advertisers: Retailers like Spencer's, Army & Navy and White away & Laid law Marketing promotions: Retailers' catalogues provided early example Ads appear in newspapers in the form of lists of the latest merchandise from England Patent medicines: The first brand as we know them today were a category of advertisers Horlicks becomes the first 'malted milk' to be patented on 5th June 1883 (No. 278967).
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The 1900s
1905 - B Dattaram & Co claims to be the oldest existing Indian agency in Girgaum in Bombay 1912 - ITC (then Imperial Tobacco Co. Ltd.) launches Gold Flake 1920s - Enter the first foreign owned ad agencies - Gujarat Advertising and Indian Advertising set up - Expatriate agencies emerge: Alliance Advertising, Tata Publicity - LA Stronach's merges into today's Norvicson Advertising - D J Keymer gives rise to Ogilvy & Mather and Clarion 1925 - LR Swami & Co, Madras 1926 - LA Stronach & Co (India) Pr. Ltd, Bombay starts - Agency called National set up for American rather than British Advertisers - American importers hire Jagan Nath Jaini, then advertising manager of Civil and Military Gazette, Lahore. National today is still run by Jaini's family - Beginning of multinational agencies - J Walter Thompson (JWT) opened to service General Motors business 1928 - BOMAS Ltd (Formerly DJ Keymer & Co Ltd) set up 1929 - J Walter Thompson Co Pr. Ltd formed
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Indian agencies, foreign advertising in the thirties
1931 - National Advertising Service Pr. Ltd. Bombay set up - Universal Publicity Co, Calcutta formed
1934 - Venkatrao Sista opens Sista Advertising and Publicity Services as first full service Indian agency 1935 - Indian Publicity Bureau Pr Ltd, Calcutta established 1936 - Krishna Publicity Co Pr. Ltd, Kanpur begins operations - Studio Ratan Batra Pr. Ltd, Bombay established - Indian Broadcasting Company becomes All India Radio (AIR) 1938 - Jayendra Publicity, Kolhapur started 1939 - Lever's advertising department launches Dalda - the first major example of a brand and a marketing campaign specifically developed for India - The Press Syndicate Ltd, Bombay set up
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Indianising advertisements in the forties
1940 - Navanitlal & Co., Ahmedabad set up 1941 - Lux signs Leela Chitnis as the first Indian film actress to endorse the product - Hindustan Thompson Associates (HTA), the current incarnation of JWT, coins the Balanced Nourishment concept to make Horlicks more relevant to India - Green's Advertising Service Agents, Bombay formed 1943 - Advertising & Sales Promotion Co (ASP), Calcutta established 1944 - Dazzal, Bombay comes into existence - Ranjit Sales & Publicity Pr. Ltd, Bombay started 1945 - Efficient Publicities Pr. Ltd, Madras set up - Tom & Bay (Advertising) Pr. Ltd., Poona begins operations in India 1946 - Eastern Psychograph Pr. Ltd., Bombay set up - Everest Advertising Pr. Ltd, Bombay established 1947 - Grant Advertising Inc, Bombay formed - Swami Advertising Bureau, Sholapur started 1948 - RC Advertising Co, Bombay set up - Phoenix Advertising Pr. Ltd, Calcutta formed BPCBA/TY/CP/2012-13 | 18
Corporate advertising in the fifties
1950s - Radio Ceylon and Radio Goa become the media option 1951 - Vicks VapoRub: a rub for colds, causes ripples with its entry in the balm market 1952 - Shantilal G Shah & Co, Bombay 1954 - Advertising Club, Mumbai set up - Express Advertising Agency, Bombay - India Publicity Co. Pr. Ltd., Calcutta
1956 - Aiyars Advertising & Marketing, Bombay - Clarion Advertising Services Pr. Ltd, Calcutta 1957 - Vividh Bharati kicks off 1958 - Shree Advertising Agency, Bombay 1959 - Associated Publicity, Cuttack
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Creative revolution in the sixties
1960 - Advertising Accessories, Trichur started - Marketing Advertising Associates, Bombay set up 1961 - Industrial Advertising Agency, Bombay comes into existence - Bal Mundkur quits BOMAS to set up Ulka the same year 1962 - India's television's first soap opera - Teesra Rasta enthralls viewers 1963 - BOMAS changes names to SH Benson's - Stronach's absorbed into Norvicson - Lintas heading for uncertainty - Levers toying with giving its brands to other agencies - Nargis Wadia sets up Interpub - Wills Filter Tipped cigarettes launched and positioned as made for each other, filter and tobacco match 1965 - Kersey Katrak sets up Mass Communication and Marketing (MCM) 1966 - Government persuaded to open up the broadcast media - Ayaz Peerbhoy sets up Marketing and Advertising Associates (MAA) 1967 - First commercial appears on Vividh Bharati
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1968 - Nari Hira sets up Creative Unit - India wins the bid for the Asian Advertising Congress 1969 - Sylvester daCunha left Stronach's to run ASP; later sets up daCunha Associates 1970 - Frank Simoes sets up Frank Simoes Associates
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The problematic seventies
1970-1978 - National Readership Studies provided relevant data on consumers' reading habits 1970 - Concept of commercial programming accepted by All India Radio - Hasan Rezavi gives the very first spot on Radio Ceylon 1971 - Benson's undergo change in name to Ogilvy, Benson & Mather 1972 - Western Outdoor Advertising Pvt Ltd (WOAPL) introduces first closed circuit TV (CCT) in the country at the race course in Mumbai 1973 - RK Swamy/BBDO established 1974 - MCM goes out of business - Arun Nanda & Ajit Balakrishnan set up Rediffusion 1975 - Ravi Gupta sets up Trikaya Grey 1976 - Commercial Television initiated 1978 - First television commercial seen 1979 - Ogilvy, Benson & Mather's name changes to Ogilvy & Mather
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Glued to the television in the eighties
1980 - Mudra Communications Ltd set up - King-sized Virginia filter cigarette enters market with brand name of 'Charms' 1981 - Network, associate of UTV, pioneers cable television in India 1982 - The biggest milestone in television was the Asiad '82 when television turned to colour transmission - Bombay Dyeing becomes the first colour TV ad - 13th Asian Advertising Congress in New Delhi - Media planning gets a boost 1983 - Maggi Noodles launched to become an overnight success - Canco Advertising Pvt. Ltd. founded - Manohar Shyam Joshi's Hum Log makes commercial television come alive - Mudra sponsors first commercial telecast of a major sporting event with the India-West Indies series 1984 - Hum Log, Doordarshan's first soap opera in the colour era is born - Viewers still remember the sponsor (Vicco) of Yeh Jo Hai Zindagi! 1985 - Mudra makes India's first telefilm, Janam 1985-86 - 915 new brands of products and services appearing on the Indian Market BPCBA/TY/CP/2012-13 | 23
1986 - Sananda is born on July 31. The Bengali magazine stupefies India by selling 75,000 copies within three hours of appearing on the newsstands. - Mudra Communications creates India's first folk-history TV serial Buniyaad. Shown on DD, it becomes the first of the mega soaps - Price quality positioning of Nirma detergent cakes boost sales 1988 - AAAI's Premnarayan Award instituted 1989 - Advertising Club Bombay begins a biennial seminar called 'Advertising that Works' - Advertising & Marketing (A&M) magazine launched
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Tech savvy in the nineties
1990 - Marks the beginning of new medium Internet - Agencies open new media shops; go virtual with websites and Internet advertising - Brand Equity (magazine) of The Economic Times is born 1991 - First India-targetted satellite channel, Zee TV starts broadcast - Close on the throes of the Gulf War enters STAR (Satellite Transmission for Asia Region) 1992 - Spectrum, publisher of A&M, constitutes its own award known as 'A&M Awards' - Scribes and media planners credit The Bold And The Beautiful serial on STAR Plus channel as a soap that started the cultural invasion 1993 - India's only advertising school, MICA (Mudra Institute of Communications Ahmedabad), is born - Tara on Zee TV becomes India's first female-centric soap 1995 - Advertising Club of Bombay calls its awards as Abby - Country's first brand consulting firm, SABRE (Strategic Advantage for Brand Equity) begins operations 1996 - The ad fraternity hits big time for the first time by bagging three awards at the 43rd International Advertising Festival, Cannes - Sun TV becomes the first regional TV channel to go live 24 hours a day on all days of the week
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1997 - Media boom with the growth of cable and satellite; print medium sees an increase in titles, especially in specialized areas - Government turns towards professional advertising in the private sector for its VDIS campaigns - Army resorts to the services of private sector agencies - Advertising on the Internet gains popularity - Equitor Consulting becomes the only independent brand consultancy company in the country - Several exercises in changing corporate identity - For the first time ever, Indians stand the chance of winning the $ 1million booty being offered by Gillette as part of its Football World Cup promo 1998 - Events assume important role in marketing mix - Rise of software TV producers banking on ad industry talent - Reinventing of cinema -advertising through cinema begins 1998 - Lintas becomes Ammirati Puri Lintas (APL) 1999 - B2B site agencyfaqs.com launched on September 28, 1999 - The Advertising Club Bombay announces the Ad Works Trophy
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In the new millennium
2000 - Mudra launches magindia.com - India's first advertising and marketing Gallery - Lintas merges with Lowe Group to become Lowe Lintas and Partners (LLP) - bigideasunlimited.com - a portal offering free and fee ideas for money launched by Alyque Padamsee and Sam Mathews - Game shows like Kaun Banega Crorepati become a rage; media buying industry is bullish on KBC - Kyunki Saas Bhi Kabhi Bahu Thi marks the return of familyoriented soap on TV - French advertising major Publicis acquires Maadhyam 2001 - Trikaya Grey becomes Grey Worldwide - Bharti's Rs 2.75-crore corporate TV commercial, where a baby girl is born in a football stadium, becomes the most expensive campaign of the year 2002 - Lowe Lintas & Partners rechristened Lowe Worldwide - For the first time in the history of HTA, a new post of president is created. Kamal Oberoi is appointed as the first president of HTA
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Advertising Companies
Advertising is a big business in this era in India. Indian Advertising industry has witnessed a prominent globalization. With the inception of various divisions, the advertising industry has undergone a sea change. Indian consumer's deepening pocket and blooming markets for ad-spends have touched new heights in India. The Indian Advertising Companies are creating stories and brand experiences in a way that engages and involves.
Top Advertising Companies of India:
Ogilvy and Mather: This is one of the leading advertising companies in India. This organization believes that devotion to the brand defines the profile of their company. This company has offices across the globe. The objective of the company is to build brands. I t is a subsidiary of WPP Group plc. The headquarter of the company is in New York. J Walter Thompson India: One of the most popular companies in the advertising industry is J Walter Thompson India. Their objective is to make advertising a part of the life of the consumers. This is also world's best advertising brand with about 200 offices in 90 countries. This company is the first one to introduce pioneer careers in ad for women, sex-appeal ads and also produced the first ever sponsored -TV program. Mudra Communication Pvt. Ltd: This is one of the renowned advertising companies of India. This advertising organization was founded in the year 1980 at Mumbai. Recently the Ad company declared the addition of public relations, rural marketing, events etc. The head office of the company is in Bombay Area.
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FCB-Ulka Advertising Ltd: One of the best companies in India in the advertising arena is FCB-Ulka Advertising Ltd. In US, this advertising company ranks third and tenth in the world having about 188 offices in 102 countries. Their aim is to reflect the needs of the brand and not the personality of the brand. It has about 500 professionals and no prima donnas. Rediffusion-DY&R: This Advertising Company of India has made a benchmark in the field of creativity. India's 5th largest advertising company is Rediffusion. This advertising agency offers a wide array of integrated pr services for external and internal communications. The primary strength of the company lies in the media relations. McCann-Erickson India Ltd: The prominent name among the best advertising companies of India is McCann-Erickson India Ltd. They define work in relation to the impact that advertising has on the lives of masses. The testimony of the company in which it firmly believes is the campaign of Coca -cola-'Thanda Matlab Coca Cola'. RK Swamy/BBDO Advertising Ltd: It maintained the record of remaining consistently among the top ten advertising agencies in India. Established in 1973, this advertising reached great heights. This is also India's No.1 research company in the market sector and is fully run by Indians. Brand Equity is an integral part of the company. Grey Worldwide (I) Pvt. Ltd: A significant name in India in the world of advertising agencies is Grey Worldwide (I) Pvt Ltd.The company is primarily based in Mumbai and has offices in Kolkata, Ahmedabad, Bangalore and New Delhi. It is a subsidiary of Grey Worldwide. The company specializes in advertising and marketing services.
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Leo Burnett India Pvt. Ltd : It has a significant presence in about 96 offices in 10 countries. This advertising agency was awarded the 'Worldwide Agency of the Year' in 2004.They are proficient in explaining how a single image is worth thousand words and can break the barriers of language but not at the cost of the ad's emotional power. Contract Advertising India Ltd:
This advertising company of India is one of the leading advertising agencies in India. It is one-to-one customer lifecycle management advertising agency. It was founded in 1992 and is situated in Mumbai. It offers a wide range of services like online marketing and strategy and many others.
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CHAPTER 2 FAST FOOD INDUSTRY
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What is Fast Food?
Fast food is the term given to food that can be prepared and served very
quickly. While any meal with low preparation time can be considered to be fast food, typically the term refers to food sold in a restaurant or store with low quality preparation and served to the customer in a packaged form for take-out/take-away. The term "fast food" was recognized in a dictionary by Merriam–Webster in 1951 Outlets may be stands or kiosks, which may provide no shelter or seating, or fast food restaurants (also known as quick service restaurants). Franchise operations which are part of restaurant chains have standardized foodstuffs shipped to each restaurant from central locations. The capital requirements involved in opening up a fast food restaurant are relatively low. Restaurants with much higher sit-in ratios, where customers tend to sit and have their orders brought to them in a seemingly more upscale atmosphere may be known in some areas as fast casual restaurants.
> A Big Mac meal with French fries and Coca-Cola served at a McDonald's.
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On the go
Fast food outlets are take-away or take-out providers, often with a "drivethrough" service which allows customers to order and pick up food from their cars; but most also have a seating area in which customers can eat the food on the premises. Nearly from its inception, fast food has been designed to be eaten "on the go", often does not require traditional cutlery, and is eaten as a finger food. Common menu items at fast food outlets include fish and chips, sandwiches, pastas, hamburgers, fried chicken, French fries, chicken nuggets, tacos, pizza, hot dogs, and ice cream, although many fast food restaurants offer "slower" foods like chili, mashed potatoes, and salads.
>McDonald's first two-lane drive-through was at the Rock N Roll McDonald's in Chicago.
Cuisine
Modern commercial fast food is often highly processed and prepared in an industrial fashion, i.e., on a large scale with standard ingredients and standardized cooking and production methods. It is usually rapidly served in cartons or bags or in a plastic wrapping, in a fashion which minimizes cost. In most fast food operations, menu items are generally made from processed ingredients prepared at a central supply facility and then shipped to individual outlets where they are reheated, cooked (usually by microwave or deep frying) or assembled in a short amount of time. This process ensures a consistent level of product quality, and is key to being able to deliver the order quickly to the customer and eliminate labor and equipment costs in the individual stores.
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Because of commercial emphasis on speed, uniformity and low cost, fast food products are often made with ingredients formulated to achieve a certain flavor or consistency and to preserve freshness.
Globalization
>McDonald's in Moscow.
In 2006, the global fast food market grew by 4.8% and reached a value of 102.4 billion and a volume of 80.3 billion transactions. In India alone the fast food industry is growing by 40% a years. McDonald's is located in 120 countries and on 6 continents and operates over 31,000 restaurants worldwide. On January 31, 1990 McDonald’s opened a restaurant in Moscow, and broke opening day records for customers served. The Moscow restaurant is the busiest in the world. The largest McDonald’s in the world is located in Beijing, People's Republic of China. There are numerous other fast food restaurants located all over the world. Burger King has more than 11,100 restaurants in more than 65 countries. KFC is located in 25 countries. Subway is one of the fastest growing franchises in the world with approximately 31,129 restaurants in 90 countries as of May 2009, the first non-US location opening in December 1984 in Bahrain.] Pizza Hut is located in 26 countries, with 100 locations in China. Taco Bell has 278 restaurants located in 12 countries besides the United States.
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Fast Food Advertising
Fast Food advertising is the promotion of fast food products and ventures through a variety of media. Fast food advertising campaigns are not as highly regulated as some other products, such as those imposed on alcohol advertising, but there are often public calls for their promotion to be minimized.
Campaign intentions
Advertising campaigns for fast food restaurants have changed in their intent over time. Many modern campaigns stress the availability of healthy options after years of criticism for the harmful effects of a fast food diet. The rise in awareness of healthy eating and obesity has negatively impacted the business of these establishments, and their marketing campaigns have attempted to rectify this.
Target audience
Some fast food chains target their advertising at children and students - an important market for them. McDonald's Happy Meals are one example, which includes a toy often tied in with a newly-released children's film. Ronald McDonald, first introduced in 1963, is a clown-like advertising mascot designed to appeal to young children. From 1996, Disney was an exclusive partner with McDonald's, linking their products together. They announced the end of this deal in May 2006, with some reports saying that Disney was worried about childhood obesity McDonald's has since been in talks with rival animation studios.
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Sponsorship
Sport
Several international fast food companies have sponsored sporting events, teams and leagues. McDonald's is one of the largest sponsors, having affiliations with the NHL, Olympic Games, and the FIFA World Cup. Several companies, including McDonald's, Burger King and Pizza Hut, have a history of sponsoring NASCAR teams.
Television
Some fast food companies sponsor television programmes. Domino's Pizza has sponsored Sky One's screenings of The Simpson’s in the UK for many years (But reported because of new regulation on advertising that the deal may end). In 2005 Pizza Hut sponsored the same program when it was shown on Channel 4 – the Sky/Domino's deal continued.
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Methods of Advertising
>Neighboring fast food restaurant advertisement signs in Bowling Green, Kentucky
Common methods of advertising include:
Television commercial campaigns Print media campaigns Billboard campaigns Event Sponsorship (sporting events and others) Product placement in films and television programs Various forms of branding, including clothing Direction signs and posters, telling people how far the restaurant is.
In February 2005 McDonald's used a viral marketing campaign during Super Bowl XXXIX - the Lincoln Fry. Two Pizza Hut marketing ploys have involved spaceflight. In 2001 they were the first to deliver pizzas to outer space when their vacuum-sealed food arrived at the International Space Station, just a year after agreeing a deal to have a 30-foot Pizza Hut logo placed on the side of an unmanned rocket.
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Television Commercials
A Television Advertisement or Television Commercial (often just commercial, advertisemnts or ad-film (India)) is a span of television programming produced and paid for by an organization that conveys a message. Advertisement revenue provides a significant portion of the funding for most privately owned television networks. The vast majority of television advertisements today consist of brief advertising spots, ranging in length from a few seconds to several minutes (as well as program-length infomercials). Advertisements of this sort have been used to sell every product imaginable over the years, from household products to goods and services, to political campaigns.
Print Media
Printing is a process for reproducing text and image, typically with ink on paper using a printing press. It is often carried out as a large-scale industrial process, and is an essential part of publishing and transaction printing.
Billboard
A Billboard is a large outdoor advertising structure (a billing board), typically found in high traffic areas such as alongside busy roads. Billboards present large advertisements to passing pedestrians and drivers. Typically showing large, ostensibly witty slogans, and distinctive visuals, billboards are highly visible in the top designated market areas. Bulletins are the largest, most impactful standard-size billboards. Located primarily on major highways, expressways or principal arterials, they command high-density consumer exposure (mostly to vehicular traffic). Bulletins afford greatest visibility due not only to their size, but because they allow creative "customizing" through extensions and embellishments. Billboards are a great place to advertise business because rather than you having to find your customers, your customers will find your advertising. Posters are the other common form of billboard advertising, located chiefly in commercial and industrial areas on primary and secondary arterial roads. Posters are a smaller format than bulletins and are viewed principally by residents and commuter traffic, with some pedestrian exposure.
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Brand
A Brand is a name or trademark connected with a product or producer. Brands have become increasingly important components of culture and the economy, now being described as "cultural accessories and personal philosophies".
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Fast food advertising up by 22%
The European Commission may be planning to ban junk food ads to tackle obesity problems; in India advertising by fast food outlets is on the rise. Advertising by fast-food outlets in India went up 22% on television in 2004 over the previous year. Combined ad spends by fast-food outlets went up to Rs 33.3 crore last year, against Rs 27.3 crore in 2003. Individually, McDonald’s topped spends on TV last year, with 47% of the overall fast food advertising pie, followed by Tricon (which owns the Pizza Hut chain) at 32%. Domino’s came third with 16% spends, followed by Smokin’ Joe’s (3%) and Subway (1%). In the print medium, McDonald’s led advertising for fast food outlets with a 28% share. Tricon was ranked second with 23% share and the homegrown Pizza Corner came third with 9% advertising. Subway (8%) and KFC (7%) followed as the fourth and fifth largest advertisers. Junk food advertising, directed at children specially, is under severe pressure in Western countries. The European Union has issued warnings to food firms to stop advertising junk food to children, stating that either the industry should apply self-regulation or face legislation. However, in India, the organised fast food industry is only about one decade old, and firms are still in expansion phase. "Compared to countries in the west, and even China and Singapore, in India chains like McDonald’s, Pizza Hut and Domino’s are very small — both in terms of number of stores and profitability. India is an emerging market for this industry, and firms want to create consumer pull through advertising," said an industry official. A recent global AC Nielsen study on foods and beverages points out that Indians eat more snacks, chips, juices, biscuits and noodles than their global counterparts. According to the study, while foods and beverages grew 5% in India, the global average rate of growth was 4% across global markets.
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CHAPTER 3 TOP FAST FOOD OUTLETS
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McDonald's
McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving nearly 47 million customers daily. At one time it was the largest global restaurant chain; it has since been surpassed by multibrand operator Yum! (KFC, Taco Bell and others) and sandwich chain Subway. Each McDonald's restaurant is operated by a franchisee, an affiliate, or the corporation itself. The corporations' revenues come from the rent, royalties and fees paid by the franchisees, as well as sales in company-operated restaurants. McDonald's revenues grew 27% over the three years ending in 2007 to $22.8 billion, and 9% growth in operating income to $3.9 billion. McDonald's primarily sells hamburgers, cheeseburgers, chicken products, French fries, breakfast items, soft drinks, milkshakes, and desserts. In response to obesity trends in western nations and in the face of criticism over the healthiness of its products, the company has modified its menu to include such healthier alternatives as salads, wraps and fruit.
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History
>"Speedee" The business began in 1940, with a restaurant opened by brothers Dick and Mac McDonald in San Bernardino, California. Their introduction of the "Speedee Service System" in 1948 established the principles of the modern fast-food restaurant. The original mascot of McDonald's was a man with a chef's hat on top of a hamburger shaped head whose name was "Speedee." Speedee was eventually replaced with Ronald McDonald in 1963. The first McDonald's restaurants opened in the United States, Canada, Costa Rica, Japan, the Netherlands, Germany, Australia, France, El Salvador and Sweden in order of openings.
The present corporation dates its founding to the opening of a franchised restaurant by Ray Kroc, in Des Plaines, Illinois on April 15, 1955, the ninth McDonald's restaurant overall. Kroc later purchased the McDonald brothers' equity in the company and led its worldwide expansion and the company became listed on the public stock markets in 1965. Kroc was also noted for aggressive business practices, compelling the McDonald brothers to leave the fast food industry. The McDonald brothers and Kroc feuded over control of the business, as documented in both Kroc's autobiography and in the McDonald brothers' autobiography. The site of the McDonald brothers' original restaurant is now a monument. With the expansion of McDonald's into many international markets, the company has become a symbol of globalization and the spread of the American way of life. Its prominence has also made it a frequent topic of public debates about obesity, corporate ethics and consumer responsibility.
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Products
McDonald's predominantly sells hamburgers, various types of chicken sandwiches and products, French fries, soft drinks, breakfast items, and desserts. In most markets, McDonald's offers salads and vegetarian items, wraps and other localized fare. Portugal is the only country with McDonald's restaurants serving soup. This local deviation from the standard menu is a characteristic for which the chain is particularly known, and one which is employed either to abide by regional food taboos (such as the religious prohibition of beef consumption in India) or to make available foods with which the regional market is more familiar (such as the sale of Mc Rice in Indonesia).
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Global operations
>Countries with McDonald's stores McDonald's has become emblematic of globalization, sometimes referred to as the "Mc Donaldization" of society. The Economist magazine uses the "Big Mac Index": the comparison of a Big Mac's cost in various world currencies can be used to informally judge these currencies' purchasing power parity. Scandinavian countries lead the Big Mac Index with four of the five most expensive Big Mac's. Norway has the most expensive Big Mac in the world as of July 2008, whilst the cheapest country is Malaysia. Thomas Friedman once said that no country with a McDonald's had gone to war with another. However, the "Golden Arches Theory of Conflict Prevention" is not strictly true. Careful historians point to the 1989 United States invasion of Panama, NATO's bombing of Serbia in 1999, the 2006 Lebanon War, and the 2008 South Ossetia War as exceptions. Some observers have suggested that the company should be given credit for increasing the standard of service in markets that it enters. A group of anthropologists in a study entitled Golden Arches East looked at the impact McDonald's had on East Asia and Hong Kong in particular. When it opened in Hong Kong in 1975, McDonald's was the first restaurant to consistently offer clean restrooms, driving customers to demand the same of other restaurants and institutions. In East Asia in particular, McDonald's have become a symbol for the desire to embrace Western cultural norms. McDonald's have recently taken to partnering up with Sinopec, China's second largest oil company, in the People's Republic of China, as it begins to take advantage of China's growing use of personal vehicles by opening numerous drive-thru restaurants.
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McDonald's advertising
"I'm lovin' it" redirects here. For the Justin Timberlake single, see I'm Lovin' It. McDonald's has for decades maintained an extensive advertising campaign. In addition to the usual media (television, radio, and newspaper), the company makes significant use of billboards and signage, sponsors sporting events ranging from little League to the Olympic Games, and makes coolers of orange drink with their logo available for local events of all kinds. Nonetheless, television has always played a central role in the company's advertising strategy. To date, McDonald's has used 23 different slogans in United States advertising, as well as a few other slogans for select countries and regions. At times, it has run into trouble with its campaigns.
History
There have been many McDonald's advertising campaigns and slogans over the years. The company is one of the most prevalent fast food advertisers. McDonald's Canada's corporate website states that the commercial campaigns have always focused on the "overall McDonald's experience", rather than just product. The purpose of the image has always been "portraying warmth and a real slice of every day life.‖ Its TV ads, showing various people engaging in popular activities, usually reflect the season and time period. Finally, they have never in their advertising history used negative or comparison ads pertaining to any of their competitors; the ads have always focused only on McDonalds alone.
Slogan
India I'm lovin' it (1989-present)
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Current campaign
i'm lovin' it is an international branding campaign by McDonald's Corporation. It was created by Heye & Partner, a longtime McDonald's agency based in Unterhaching, Germany, near Munich, and a member of the DDB Worldwide Communications Group, Inc. It was the company's first global advertising campaign and was launched in Munich, Germany on September 2, 2003, under the German title ich liebe es. The English part of the campaign was launched on September 29, 2003 with the music of Tom Batoy and Franco Tortora (Mona Davis Music) and vocals by Justin Timberlake, in which the slogan appears. In 2007, after a public casting call which received 15,000 submissions, McDonald's selected 24 people to appear as part of the campaign. Images of those chosen, who had submitted a story and digital photograph which "capture[d] ... themes of inspiration, passion and fun," appear on McDonald's paper bags and cups worldwide. In Spring/summer 2008, McDonald's underwent the first phase of their new image and slogan: 'What we're made of.' This was to promote how McDonald's products are made. Packaging was tweaked a little to feature this new slogan. In fall 2008, McDonald's introduced new packaging, eliminating the previous design stated above with new, inspirational messages, the "I'm lovin it" slogan. (Appearing only once on most packages). McDonald's also updated their menu boards with darker, yet warmer colors, more realistic photos of the products featured on plates and the drinks in glasses. In 2009 they expect to have this entire nation wide.
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Subway
Subway is a fast food franchise that primarily sells submarine sandwiches, salads and single dish pizzas. It is owned and operated by Doctor's Associates, Inc. (DAI). Subway is one of the fastest growing franchises in the world with approximately 31,697 restaurants in 91 countries as of September 2009. It is the largest single-brand restaurant chain globally and is the second largest restaurant operator globally after Yum! Brands (35,000 locations) Subway's main operations office is in Milford, Connecticut, and five regional centers support Subway's growing international operations. The regional offices for European franchises are located in Amsterdam, Netherlands. Australia and New Zealand are supported from Brisbane, Australia, the Middle Eastern locations are supported from offices located in Beirut, Lebanon, the Asian locations from Singapore, and the Latin America support center is in Miami, Florida. In the UK and Ireland the company hopes to expand to 2,010 restaurants by the year 2010. Many restaurant analysts attribute Subway's fast growth to the growing concern on health by restaurant customers, a trend that Subway has taken advantage of in its marketing. In 1999, an Indiana University student named Jared Fogle lost 245 pounds (110 kg) with a diet made up mostly of Subway
BPCBA/TY/CP/2012-13 | Subway's main operations office is in Milford, 48 Connecticut, and five regional centers support Subway's growing international operations. The regional offices for European franchises are located in Amsterdam, Netherlands. Australia and New Zealand are suppo
sandwiches combined with exercise. The story is used by Subway as a large part of their marketing campaign to this day...
Products
A Sub Sandwich
A 6-inch ham sandwich
Subway's main product is the submarine sandwich, or "Sub". Many stores also offer Cookies, muffins, and Danishes which may be purchased in a variety of flavors. In 2001, Subway added seasoned breads and a line of specialty items to its menu and in 2003, most Subway markets switched their beverage contracts to supply Coca-Cola products exclusively, having previously left it up to the individual market to decide whether to serve Coke or Pepsi. In order to ink the current deal with Coca-Cola, Coca-Cola helped pay for the initial rollout of toaster ovens to all existing restaurants in North America. Subway gave customers the option to have their sandwiches toasted in response to increased competition from a rival sandwich chain, Quiznos, which popularized toasted submarine sandwiches. In Australia, the introduction of Fresh Toasting enabled the Subway Franchise to prevent Quiznos from gaining market share. The Turbo Chef and Merry chef toaster ovens are a microwave and convection oven hybrid. The deal with Coca-Cola led to Quiznos switching to Pepsi chain wide, except in Canada. One of the chain's best-known sandwiches is the BMT, which originally stood for Brooklyn Manhattan Transit, but now stands for Biggest, Meatiest, and Tastiest. The sandwich contains salami, pepperoni and ham. BPCBA/TY/CP/2012-13 | Many restaurant analysts attribute Subway's fast 49 growth to the growing concern on health by restaurant customers, a trend that Subway has taken advantage of in its marketing. In 1999, an Indiana University student named Jared Fogle lost 245 pounds (110 kg)
As of 2004, it was Subway's most popular cold sandwich in the United Kingdom. In 2006, the first kosher Subway restaurant in the United States opened in a suburb of Cleveland, Ohio. Subway spokesman Jared Fogle was in attendance at the opening. "With slight modifications, such as no porkbased products, and the use of soy-based cheese, the menu is virtually identical to that of any other Subway restaurant.‖ Since then, kosher Subways have opened in New York, Los Angeles, Kansas City, and Baltimore, as well as Livingston, NJ, and plans have been announced for Milwaukee, Boston, and one inside the JCC in West Bloomfield, Michigan, a suburb of Detroit. Some of these locations serve soy cheese, but most don't serve any form of cheese at all. All Subway restaurants in Muslim countries serve a halal menu. There are also at least two Subway restaurants in the United States that do the same, three in Canada, and a growing number in the United Kingdom. The success of these stores has been mixed, but the company will open more halal stores.
Subway also offers items other than sandwiches; breakfast items include such baked goods as bagels, egg & sausage sandwiches, and as of July and August 2006, "personal pizzas" are available in select markets to their menu. The personal pizzas are made upon order (as with their sandwiches) and heated "in less than 90 seconds" (cooking for 85 seconds) as advertised on televised commercials. Breakfast and pizza items are only available in some stores. Most stores offer additional toppings upon request.
BPCBA/TY/CP/2012-13 | Many restaurant analysts attribute Subway's fast 50 growth to the growing concern on health by restaurant customers, a trend that Subway has taken advantage of in its marketing. In 1999, an Indiana University student named Jared Fogle lost 245 pounds (110 kg)
Global locations
Subway is present in 91 countries and territories 31751 Restaurants in 91 Countries
BPCBA/TY/CP/2012-13 | Many restaurant analysts attribute Subway's fast 51 growth to the growing concern on health by restaurant customers, a trend that Subway has taken advantage of in its marketing. In 1999, an Indiana University student named Jared Fogle lost 245 pounds (110 kg)
Subway Advertising
Subway uses the advertising slogan "Eat Fresh" to explain how every sandwich is made on freshly baked bread, using fresh ingredients, in front of the customer to their exact specification, by employees who Subway terms "Subway Sandwich Artists". BPCBA/TY/CP/2012-13 | Many restaurant analysts attribute Subway's fast 52 growth to the growing concern on health by restaurant customers, a trend that Subway has taken advantage of in its marketing. In 1999, an Indiana University student named Jared Fogle lost 245 pounds (110 kg)
In 2008, Subway began to offer "Five Dollar Foot-long" submarine sandwiches in the United States as a limited time only promotion. Customer response prompted Subway to make a "Five Dollar Foot-long Everyday Value Menu" that includes 8 foot long sandwiches (Spicy Italian, Cold Cut Combo, Tuna, BLT, Black Forest Ham, Meatball, Veggie Delite & Oven Roasted Chicken) a permanent menu item.] The jingle from the commercials advertising Five Dollar Foot-longs has gained some popularity. In 2009, Subway brought back the "Five Dollar Foot-Long" sandwiches for a limited time. These sandwiches included every sub excluding Double Meat and Premium subs. In November 2007, Subway's US commercials featured the Peter Griffin character from Family Guy in which he extols the virtues of its new Subway Feast sandwich. 31751 Restaurants in 91 Countries Subway has also used instant win competitions based on the game Scrabble as promotional tools. Subway also notably has a product placement television advertisement campaign for the US series Chuck, ongoing since its first season. As ratings dwindled in the second season, a campaign to "save Chuck" was launched by fans, which involves purchasing a foot-long sandwich from Subway on April 27, 2009, the date of the season finale. Tony Pace, Subway's marketing officer, reportedly called it the best product placement the restaurant chain has done "in several years."
Slogans
"Eat Fresh", first used in 2000 is the Subway chain's current worldwide slogan. Past slogans and regional variations include:
"When You're Hungry, Make Tracks for Subway" (1979-1985) "My Way" (1985–1990) "The Place Where Fresh is the Taste" (1990–1995) "What a Sandwich" (1994–1995) "Right Before Your Eyes" (1995-96) "The Way A Sandwich Should Be" (1996–2000) "Eat Fresh." (2001-present) "Choose Well." (2004–present) "I feel good" (2009-present in Australia/New Zealand) "You can have it my way, or Subway" (2005-present in Edinburgh SAS)
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"Subway, Where Winners Eat" (2009-present, During the 2009 Little League World Series) "We've Got A Sub For That" (2009 in the UK and Ireland)
Pizza Hut
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Pizza Hut is an American restaurant chain and international franchise based in Addison, Texas (a northern suburb of Dallas), offering different styles of pizza along with side dishes including pasta, buffalo wings, breadsticks, and garlic bread. Pizza Hut is a subsidiary of Yum! Brands, Inc., the world's largest restaurant company, with approximately 34,000 restaurants, delivery-carry out units, and kiosks in 100 countries.
History
The chain was founded in 1958 by Dan and Frank Carney. The Original Pizza Hut building was later relocated to the Wichita State University campus. Additional restaurants were opened, with the first franchise unit BPCBA/TY/CP/2012-13 | Pizza Hut 55
opening in 1959 in Topeka, Kansas. At the same time Pizza Hut was growing in and around Kansas, Shakey's Pizza was developing a stronghold along the West Coast. The competition provided Pizza Hut the impetus to evaluate its mission and direction. Dan and Frank Carney saw Shakey's expanding into their territory and realized that they needed to determine if Pizza Hut should be in the entertainment business or if it should be a neighborhood pizza restaurant. They decided to stick with the neighborhood business and realized that they needed to have a good standard image. The Carney brothers began to systematize operations and building designs to counter the competition from Shakey's. The franchise network continued to grow through friends and business associates, and by 1964 a unique standardized building appearance and layout was established for franchised and company-owned stores, creating a universal look that customers easily recognized. By 1972, with 314 stores nationwide, Pizza Hut went public on the New York Stock Exchange under the stock ticker symbol PIZ. In 1977, Pizza Hut was acquired by Pepsico, who later also bought KFC and Taco Bell. In 1997, the three restaurant chains were spun off into Tricon, and in 2002 joined with Long John Silver's and A&W Restaurants to become Yum! Brands. The oldest continuously operating Pizza Hut in the world is in Manhattan, Kansas, in a shopping and tavern district known as Aggieville near Kansas State University.
> Pizza Hut's prototype version of a restaurant (1950–1961). This was only used at four prototype Pizza Hut locations. There are only a few menu items on this version.
Products
Pizza Hut sells pizzas in four different sizes: personal (an individual serving), small, medium and large, though most stores have done away BPCBA/TY/CP/2012-13 | Pizza Hut 56
with the small size. A variety of toppings are available, plus "specialty" styles, including Meat Lovers, Pepperoni Lovers, Cheese Lovers, Veggie Lovers, Double Cheeseburger, Supreme, Super Supreme and the newly introduced Pizza Mia. The pan pizza has a thicker crust than most other commercially available pizzas. Pizza Hut also sells Stuffed Crust pizza, with the outermost edge wrapped around a coil of mozzarella cheese; Hand-Tossed, more like traditional pizzeria crusts; Thin 'N Crispy, a thin, crispy dough which was Pizza Hut's original style; Dipping' Strips pizza, a pizza cut into small strips that can be dipped into a number of sauces; and The Edge pizza, where the toppings nearly reach to the edge of the pizza. There was also formerly a crust that was not as thick as Pizza Hut's pan pizza, and not as thin as its thin crust. This crust was used on the Full House XL pizza and discontinued in 2007. In addition to pizza, also sold is garlic cheese bread (not in all locations), plus a number of side dishes including bread sticks, cheese sticks, cinnamon sticks, mozzarella sticks, onion rings, chicken wings (some stores have integrated with another chain known as WingStreet which offers a wide variety, such as Buffalo Burning Hot, Buffalo Medium, Buffalo Mild, Honey BBQ, Spicy BBQ, Garlic Parmesan, Cajun, Spicy Asian) boneless wings, chicken munchers, jalapeño poppers, Quepapas (potato bites filled with cheese and jalapeño flavor),a basket of taters or tater tots and fried apple pies. Depending on the individual restaurant size, Pizza Huts also may offer pasta dinners such as spaghetti and Cavatina – a mixture of Cavatelli (shells), Rotini (spirals), and Rotelle (wheels).
Pizza Hut Advertising
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Pizza Hut's very first ad was "Putt Putt to Pizza Hut". It starts with a man apparently ordering take-out and driving his 1965 Mustang JR to Pizza Hut, while some of the townspeople start chasing him. He picks up his pizza and goes to his house, when all of the people who were chasing him start eating all the pizza except the man who ordered it. Frustrated, he calls Pizza Hut again. Until early 2007, Pizza Hut's main advertising slogan was "Gather 'round the good stuff", and is currently "Now You're Eating!". Pizza Hut does not have an official international mascot, but at one time, there were commercials in the United States called 'The Pizza Head Show.' These commercials ran from 1993 to 1997 and were based loosely on the Mr. Bill shorts from Saturday Night Live in the 1970s. The ads featured a slice of pizza with a face made out of toppings called 'Pizza Head'. In the 1970s Pizza Hut used the signature red roof with a jolly man named "Pizza Hut Pete". Pete was on the bags, cups, balloons and hand puppets for the kids. In Australia during the Mid to late 1990s, the advertising mascot was a delivery boy named Dougie, with boyish good looks who, upon delivering pizza to his father, would hear the catchphrase "Here's a tip: be good to your mother". Early 2007 saw Pizza Hut move into several more interactive ways of marketing to the consumer. Utilizing mobile phone SMS technology and their My Hut ordering site, they aired several television commercials (commencing just before the Super Bowl) containing hidden words that viewers could type into their phones to receive coupons. Other innovative efforts included their "MySpace Ted" campaign, which took advantage of the popularity of social networking, and the burgeoning user-submission marketing movement via their Vice President of Pizza contest. Pizza Hut is also advertised in anime such as Code Geass and Darker Than Black, though in the translated versions of Code Geass the logo was removed, leaving only the red roof logo.
Pasta Hut
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Pasta Hut logo (2008–present)
On April 1, 2008, Pizza Hut in America sent emails to customers advertising that they now offer pasta items on their menu. The email (and similar advertising on the company's website) stated "Pasta so good we've changed our name to 'Pasta Hut'." The name change was a publicity stunt held in conjunction with April Fools' Day, extending through the month of April, with the company's Dallas headquarters changing its exterior logo to Pasta Hut. This name change was also used to promote the new Tuscani Pasta line and new Pizza Hut dine-in menu. The first Pasta Hut advertisement has the original Pizza Hut restaurant being imploded and recreated, but when they construct the new building, the sign saying "Pasta Hut" is placed on the building.
Australia
On January 19, 2009, Pizza Hut started a six-week online vote in Australia as to whether Pizza Hut should become Pasta Hut. They are also cobranding two stores with the Pasta Hut logo. Advertising for the new brand involved the production team creating a set of a restaurant called "Toscani's". As the TVC suggests, the diners in the fictional restaurant, complete with signage and secret recording equipment; the customers were unaware they were eating pasta from Pizza Hut.
Domino's Pizza
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Domino's Pizza, is an international' fast food pizza delivery corporation, whose headquarter is just outside Ann Arbor, Michigan, United States. It was founded by Tom Monaghan. There are currently about 8,500 corporate and franchised stores in all 50 states in 55 countries. It was the secondlargest pizza chain behind Pizza Hut in the United States when it went public in 2004 for just under $15 a share.
From a Game to an Famous Outlet Name ―Domino’s‖
History
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Early years
In 1960, Tom Monaghan and his brother, James, purchased Dominick’s, a small pizza store in Ypsilanti, Michigan. The deal was secured by a $75 down payment and the brothers borrowed $500 to pay for the store. Eight months later, James traded his half of the business to Tom for a used Volkswagen Beetle. As sole owner of the company Tom Monaghan, renamed the business Domino's Pizza, Inc. in 1965. In 1967, the first Domino's Pizza franchise store opened in Ypsilanti. Domino’s continued to grow and in 1978 opened its 200th store. In 1975, Domino's faced a lawsuit by Amstar Corporation, maker of Domino Sugar, alleging trademark infringement and unfair competition. On May 2, 1980, a federal appeals court found in favor of Domino's Pizza.
International expansion
On May 13, 1983, Domino's opened its first international store, in Winnipeg, Canada. That same year, Domino's opened its 1,000th store overall, and by 1995 Domino's had 1,000 international locations. In 1997, Domino's opened its 1,500th international location, opening seven stores per continent on consecutive days.
Sale of company
In 1998, after 38 years of ownership, Domino's Pizza founder Tom Monaghan announced his retirement and sold 93 percent of the company to Bain Capital, Inc. for about $1 billion and ceased being involved in dayto-day operations of the company. A year later, the company named David A. Brandon Chairman and Chief Executive Officer.
Current era
In 2001, Domino’s launched a two-year national partnership with the MakeA-Wish Foundation of America. That same year, the company's stores in New York City and Washington D.C. provided more than 12,000 pizzas to relief workers following the September 11 attacks on the World Trade Center and The Pentagon. Through a matching funds program, the corporation donated $350,000 to the American Red Cross' disaster relief effort.
Leading industry publication Pizza Today magazine named Domino’s Pizza "Chain of the Year" in 2003. That same year, Domino’s teamed up with BPCBA/TY/CP/2012-13 | Pizza Hut 61
NASCAR for a multi-year partnership to become the "Official Pizza of NASCAR." In 2004, after 44 years as a privately held company, Domino's Pizza rang the opening bell at the New York Stock Exchange and began trading common stock on the NYSE under the ticker symbol "DPZ". That year, Domino's also began its current partnership with St. Jude Children's Research Hospital, participating in the hospital's "Thanks and Giving" campaign since it began in 2004, raising more than $1.3 million in 2006. In a simultaneous celebration in 2006, Domino's opened its 5,000th U.S. store in Huntley, Illinois and its 3,000th international store in Panama City, making 8,000 total stores for the system. Also that year, the Domino's Pizza store in Tallaght, Dublin, Ireland, became the first in Domino's history to hit a turnover of $3 million (€2.35 million) per year. As of September 2006, it has 8,238 stores which totaled US$1.4 billion in gross income. In 2007, Domino's introduced its Veterans and Delivering the Dream franchising programs and also rolled out its online and mobile ordering sites.
Franchisees
>The exterior of a Domino's Pizza store in Spring Hill, Florida.
> A make line at a Domino's
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The rights to own, operate and franchise branches of the chain in Australia, New Zealand, France, Belgium, the Netherlands and the Principality of Monaco are currently owned by Domino's Pizza Enterprises, having been sold off by the parent company between 1993 and 2007. The master franchises for the UK and Ireland were purchased by Domino's Pizza Group in 1993.
Major franchises
Domino's Pizza Enterprises Domino's Pizza UK & IRL
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30 minute guarantee
Starting in 1973, Domino's Pizza had a guarantee that customers would receive their pizzas within 30 minutes of ordering, or they would receive the pizzas free. The guarantee was reduced to $3 off in the mid 1980s. In 1992, the company settled a lawsuit brought by the family of an Indiana woman who had been killed by a Domino's delivery driver, paying the family US$ 2.8 million. In 1993, Domino's settled another lawsuit; this one brought by a woman who was injured when a Domino's delivery driver ran a red light and rear-ended her. The woman was paid nearly US$ 80 million. The guarantee was dropped that same year because of the "public perception of reckless driving and irresponsibility", according to Monaghan. In December 2007 Domino's introduced a new slogan, "You Got 30," alluding to the earlier pledge but stopping short of promising delivery in a half hour. However, in Brazil, Chile, India, Indonesia, Lebanon, Mexico and Turkey, Domino's still guarantees delivery within 30 minutes, or the order is free but online orders are not available. In Israel, late delivery results in cash back on the spot anywhere from a fifth to half the price of the order (depending on the delay).
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Domino’s Pizza Advertising
In the 1980s, Domino's Pizza was well known for its advertisements featuring The Noid. That concept was created by Group 243 Inc. who then hired Will Vinton Studios to produce the television commercials that they created. The catch phrase associated with the commercials was "Avoid the Noid."
Due to a glitch on the Domino's website, the company gave away nearly 11,000 free medium pizzas in March 2009. The company had planned the campaign for December 2008 but dropped the idea and never promoted it. The code was never deactivated though and resulted in the free giveaway of the pies across the United States after someone discovered the promotion on the website by typing in the word "bailout" as the promotion code and then shared it with others on the Internet. Domino's deactivated the code on the morning of Tuesday, March 31, 2009 and promised to reimburse store owners for the pies.
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Global locations
>Dominos restaurant in Oaxaca de Juarez, Oaxaca, Mexico
>Domino's coloured motorcycles used for home delivery in Goa, India
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KFC
KFC Corporation, or KFC, founded and also known as Kentucky Fried Chicken, is a chain of fast food restaurants based in Louisville, Kentucky. KFC has been a brand and operating segment, called a "concept", of Yum! Brands since 1997 when that company was spun off from PepsiCo as Tricon Global Restaurants Inc. KFC primarily sells chicken in form of pieces, wraps, salads and sandwiches. While its primary focus is fried chicken, KFC also offers a line of roasted chicken products, side dishes and desserts. Outside North America, KFC offers beef based products such as hamburgers or kebabs, pork based products such as ribs and other regional fare. The company was founded as Kentucky Fried Chicken by Colonel Harland Sanders in 1952, though the idea of KFC's fried chicken actually goes back to 1930. The company adopted the abbreviated form of its name in 1991, Starting in April 2007, the company began using its original name, Kentucky Fried Chicken, for its signage, packaging and advertisements in the United States as part of a new corporate re-branding program; newer and remodeled restaurants will have the new logo and name while older stores will continue to use the 1980s signage. Additionally, Yum! Continues to use the abbreviated name freely in its advertising
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History
>The restaurant in North Corbin, Kentucky where Colonel Sanders developed Kentucky Fried Chicken
>World's first KFC in South Salt Lake, Utah, since replaced by a new KFC on the same site Born and raised in Henryville, Indiana, Sanders passed through several professions in his lifetime. Sanders first served his fried chicken in 1930 in the midst of the Great Depression at a gas station he owned in North Corbin, Kentucky. The dining area was named "Sanders Court & Café" and was so successful that in 1936 Kentucky Governor Ruby Laffoon granted Sanders the title of honorary Kentucky Colonel in recognition of his contribution to the state's cuisine. The following year Sanders expanded his restaurant to 142 seats, and added a motel he bought across the street. When Sanders prepared his chicken in his original restaurant in North Corbin, he prepared the chicken in an iron skillet, which took about 30 minutes to do, too long for a restaurant operation. In 1939, Sanders altered the cooking process for his fried chicken to use a pressure fryer, resulting in a greatly reduced cooking time comparable to that of deep frying. In 1940 Sanders devised what came to be known as his Original Recipe. The Sanders Court & Café generally served travelers, often those headed to Florida, so when the route planned in the 1950s for what would become Interstate 75 bypassed Corbin, he sold his properties and traveled the U.S. to sell his chicken to restaurant owners. The first to take him up on the offer was Pete Harman in South Salt Lake, Utah; together, they opened the first "Kentucky Fried Chicken" outlet in 1952. By the early 1960s Kentucky Fried Chicken was sold in over 600 franchised outlets in both the United States and Canada. One of the longest-lived franchisees of the older Col. Sanders' chicken concept, as opposed to the KFC chain, was the Kenny Kings chain. BPCBA/TY/CP/2012-13 | Pizza Hut 69
The company owned many Northern Ohio diner-style restaurants, the last of which closed in 2004. Sanders sold the entire KFC franchising operation in 1964 for $2 million USD Since that time, the chain has been sold three more times, most recently to PepsiCo, which made it part of its Tricon Global Restaurants division, which in turn was spun off in 1997, and has now been renamed to Yum! Brands. Additionally, Colonel Sanders' nephew, Lee Cummings, took his own Kentucky Fried Chicken franchises (and a chicken recipe of his own) and converted them to his own "spin-off" restaurant chain, Lee's Famous Recipe Chicken. Today, some of the older KFC restaurants have become famous in their own right. One such restaurant is located in Marietta, Georgia. This store is notable for a 56-foot (17 m) tall sign that looks like a chicken. The sign, known locally as the Big Chicken, was built for an earlier fast-food restaurant on the site called Johnny Reb's Chick, Chuck and Shake. It is often used as a travel reference point in the Atlanta area by locals and pilots.
The secret recipe
The Colonel's secret flavor recipe of 11 herbs and spices that creates the famous "finger lickin' good" chicken remains a trade secret. Portions of the secret spice mix are made at different locations in the United States, and the only complete, handwritten copy of the recipe is kept in a vault in corporate headquarters. On September 9, 2008, the one complete copy was temporarily moved to an undisclosed location under extremely tight security while KFC revamped the security at its headquarters. Before the move, KFC disclosed the following details about the recipe and its security arrangements:
The recipe, which includes exact amounts of each component, is written in pencil on a single sheet of notebook paper and signed by Sanders. The recipe was locked in a filing cabinet with two separate combination locks. The cabinet also included vials of each of the 11 herbs and spices used. Only two executives had access to the recipe at any one time. KFC refuses to disclose the names and titles of either executive. One of the two executives said that no one had come close to guessing the contents of the secret recipe, and added that the actual recipe would include some surprises.
On February 9, 2009, the secret recipe returned to KFC's Louisville headquarters in a more secure, computerized vault.
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In 1983, writer William Poundstone examined the recipe in his book Big Secrets. He reviewed Sanders' patent application, and advertised in college newspapers for present or former employees willing to share their knowledge. From the former he deduced that Sanders had diverged from other common fried-chicken recipes by varying the amount of oil used with the amount of chicken being cooked, and starting the cooking at a higher temperature (about 400 °F (200 °C)) for the first minute or so and then lowering it to 250 °F (120 °C) for the remainder of the cooking time. Several of Poundstone's contacts also provided samples of the seasoning mix, and a food lab found that it consisted solely of sugar, flour, salt, black pepper and monosodium glutamate (MSG). He concluded that it was entirely possible that, in the years since Sanders sold the chain, later owners had begun skimping on the recipe to save costs. Following his buyout in 1964, Colonel Sanders himself expressed anger at such changes, saying: "That friggin' ... outfit .... They prostituted every goddamn thing I had. I had the greatest gravy in the world and those sons of bitches they dragged it out and extended it and watered it down that I'm so goddamn mad.‖ Ron Douglas, author of the book "America's Most Wanted Recipes," also claims to have figured out KFC's secret recipe.
Products
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Packaging
The famous paper bucket that KFC uses for its larger sized orders of chicken and has come to signify the company was originally created by Wendy's restaurants founder Dave Thomas. Thomas was originally a franchisee of the original Kentucky Fried Chicken and operated several outlets in the Columbus, Ohio area. His reasoning behind using the paper packaging was that it helped keep the chicken crispy by wicking away excess moisture. Thomas was also responsible for the creation of the famous rotating bucket sign that came to be used at most KFC locations in the US.
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Menu items
This is a list of menu items sold at KFC.
Chicken
KFC's specialty is fried chicken served in various forms. KFC's primary product is pressure-fried pieces of chicken made with the original recipe. The other chicken offering, extra crispy, is made using a garlic marinade and double dipping the chicken in flour before deep frying in a standard industrial kitchen type machine. Kentucky Grilled Chicken - This marinated grilled chicken is targeted towards health-conscious customers. It features marinated breasts, thighs, drumsticks, and wings that are coated with the Original Recipe seasonings before being grilled. It has less fat, calories, and sodium than the Original Recipe fried chicken. Introduced in April 2009. KFC has two lines of sandwiches: its "regular" chicken sandwiches and its Snackers line. The regular sandwiches are served on either a sesame seed or corn dusted roll and are made from either whole breast fillets (fried or roasted), chopped chicken in a sauce or fried chicken strips. The Snackers line are value priced items that consist of chicken strips and various toppings. In the UK, Australia and New Zealand, sandwiches are referred to as "burgers"; there is the chicken fillet burger (a chicken breast fillet coated in an originalrecipe coating with salad garnish and mayonnaise) and a Zinger Burger (as with the former but with a spicier coating and salsa). Both BPCBA/TY/CP/2012-13 | Pizza Hut 74
of these are available as "tower" variants, which include a slice of cheese and a hash brown. A variety of smaller finger food products are available at KFC including chicken strips, wings, nuggets and popcorn chicken. These products can be ordered plain or with various sauces, including several types of barbecue sauces and buffalo sauce. They also offer potato wedges. Several pies have been made available from KFC. The Pot Pie is a savory pie made with chicken, gravy and vegetables. In the second quarter of 2006, KFC introduced its variation on Shepherd's pie called the Famous Bowl. Served in a plastic bowl, it is layered with mashed potatoes or rice, gravy, corn, popcorn chicken, and cheese, and is served with a biscuit. The bowl had been available at KFC's special test market store in Louisville since the third quarter of 2005. The KFC Twister is a wrap that consists of either chicken strips or roasted chicken, tomato, lettuce and (pepper) mayonnaise wrapped in a tortilla. In Europe, the Twister is sold in two varieties: 1) the Grilled Twister (chicked strips and 2) the Grilled Mexican twister/Spicy Toasted Twister (chicken breast supplemented by tortilla chips and salsa, adds only salsa to pepper mayonnaise.) KFC Fillers are a 9 in (23 cm) sub, available in four varieties over the summer period in Australia. Shish kebab - in several markets KFC sells kebabs.
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Other products
Coleslaw
In some international locations, KFC may sell hamburgers, pork ribs or fish. In the U.S., KFC began offering the Fish Snacker sandwich during Lent in 2006. The Fish Snacker consists of a rectangular patty of Alaskan Pollock on a small bun, and is the fifth KFC menu item in the Snacker category.
Three types of salads (which can be topped with roasted or fried chicken) are available at KFC: Caesar, house, and BLT salads (in the US). The Boneless Banquet Zinger Burger – A regular sized burger which regularly consists of a boneless fillet of hot and spicy chicken, lettuce and mayonnaise in a burger bun. Cheese, tomato, bacon and pineapple can be added upon request. Barbecue sauce can also replace/join the mayonnaise.
Parfait desserts – "Little Bucket Parfaits" in varieties such as Fudge Brownie, Chocolate Crème (once called the Colonel's Little Fudge
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Bucket), Lemon Crème and Strawberry Shortcake are available at most locations in the US. Sara Lee Desserts – Available in either Cookies and Cream Cheesecake or Choc Caramel Mousse
Sides
Other than fried chicken, many KFC restaurants serve side dishes like coleslaw, various potato-based items (including potato wedges, french fries and mashed potatoes with gravy), biscuits, baked beans, macaroni and cheese, macaroni salad, rice, steamed vegetables and corn on the cob.
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Discontinued products
The Colonel's Rotisserie Gold – This product was introduced in the 1990s as a response to the Boston Market chain's roasted chicken products, and a healthier mindset of the general public avoiding fried food. Purportedly made from a "lost" Col. Sanders recipe, it was sold as a whole roaster or a half bird. Tender Roast Chicken – This product was an off-shoot of 'The Colonel's Rotisserie Gold'. Instead of whole and half birds, customers were given quarter roasted chicken pieces. For a time, customers could request chicken "original", "Extra Tasty Crispy", or "Tender Roast". Chicken Little sandwich – a value oriented sandwich during the late 1980s and early 1990s. It was a small chicken patty with mayonnaise on a small roll, similar to White Castle's mini chicken sandwich. Extra Tasty Crispy (ETC) – Chicken much like the Extra Crispy served today, except ETC was prepared using chicken that had been soaking for 15 minutes in a special marinade machine. There is some speculation that the marinade may have been made with trans-fats, and KFC boasts to no longer use trans-fats in their chicken, the known ingredients were garlic and chicken stock. In the summer of 2007, KFC started marketing the chicken just as "Extra Crispy" without the marinade. Kentucky Nuggets were a chicken nugget product available at KFC until 1996. No reason has been given for their discontinuation. Smokey Chipotle – Introduced in April 2008. The chicken was dipped in chipotle sauce then doubled breaded and fried. It has been discontinued since August 2008.
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Nutritional value
KFC formerly used partially hydrogenated oil in its fried foods. This oil contains relatively high levels of trans fat, which increases the risk of heart disease. The Center for Science in the Public Interest (CSPI) filed a court case against KFC, with the aim of making it use other types of oils or make sure customers know about trans fat content immediately before they buy food. In October 2006, KFC announced that it would begin frying its chicken in Tran’s fat-free oil. This would also apply to their potato wedges and other fried foods, however, the biscuits, macaroni and cheese, and mashed potatoes would still contain Trans fat. Trans fat-free soybean oil was introduced in all KFC restaurants in the U.S. by April 30, 2007. CSPI announced that it would immediately drop its lawsuit against KFC and was hopeful that this would create a ripple effect on other restaurants or fast food chains that prepare food rich in Tran’s fat. "If KFC, which deep-fries almost everything, can get the artificial Trans fat out of its frying oil, anyone can," CSPI executive director Michael Jacobson said in a statement.
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KFC Advertising
> KFC's logo used from 1997 until November 2006 Early television advertisements for KFC regularly featured Colonel Sanders licking his fingers and talking to the viewer about his secret recipe. Despite his death in 1980 Sanders remains a key symbol of the company in its advertising and branding. Throughout the mid 1980s, KFC called on Will Vinton Studios to produce a series of humorous, claymation ads. These most often featured a cartoonlike chicken illustrating the poor food quality of competing food chains, mentioning prolonged freezing and other negative aspects. TV ads also featured Foghorn Leghorn advising Henery Hawk to visit the restaurant for better chicken. In the 80s, KFC was an associate sponsor for Junior Johnson's NASCAR Winston Cup Series cars, with such drivers as Darrell Waltrip, Neil Bonnett, and Terry Labonte. In 1997 KFC briefly re-entered the NASCAR Winston Cup Series as sponsor of the #26 Darrell Waltrip Motorsports Chevrolet with driver Rich Bickle at the Brickyard 400.
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By the late 1990s, the stylized likeness of Colonel Sanders as the KFC logo had been modified. KFC ads began featuring an animated version of "the Colonel" voiced by Randy Quaid with a lively and enthusiastic attitude. He would often start out saying "The Colonel here!" and moved across the screen with a cane in hand. The Colonel was often shown dancing, singing, and knocking on the TV screen as he spoke to the viewer about the product. The animated Colonel is uncommon today. Still using a humorous slant, the current KFC campaign revolves mostly around customers enjoying the food. It also features a modified version of Lynyrd Skynyrd's "Sweet Home Alabama" as the theme song for practically all its commercials, though the restaurant actually hails from Kentucky. In 2006, KFC claimed to have made the first logo visible from outer space, though Readymix has had one since 1965. KFC says "It marked the official debut of a massive global re-image campaign that will contemporize 14,000-plus KFC restaurants in over 80 countries over the next few years." The logo was built from 65,000 one-foot-square tiles, and it took six days on site to construct in early November. The logo was placed in the Mojave Desert near Rachel, Nevada. It is located in the northern section of Rachel, Nevada at 37°38′46″N 115°45′03″W37.6460°N 115.7507°W . Many KFC locations are co-located with one or more of Yum! Brands restaurants, Long John Silver's, Taco Bell, Pizza Hut, or A&W Restaurants. Many of these locations behave like a single restaurant, offering a single menu with food items from both restaurants.
>The resurrected Kentucky Fried Chicken logo One of KFC's latest advertisements is a commercial advertising its "wicked crunch box meal". The commercial features a fictional black metal band called "Hellvetica" performing live, the lead singer then swallows fire. The commercial then shows the lead singer at a KFC eating the "wicked crunch box meal" and saying "Oh man that is hot". In 2007, the original, non-acronymic Kentucky Fried Chicken name was resurrected and began to reappear on company marketing literature and food packaging, as well as some restaurant signage.
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International operations
Global locations
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CHAPTER 4 Factors Affecting Perceptions
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Affordable meals drive sales at fast-food chains
Value-for-money deals offered by fast-food chains are driving up sales as the economic downturn bites price-sensitive Indian customers and force them to choose affordable eating-out and ordering-in meal options. For chains such as Domino’s Pizza, McDonald’s, KFC and Pizza Hut, the downturn is no cause for applying the brakes on expansion, as most other industries are doing, but an opportunity to tap new markets and customers. In August last year, Domino’s introduced a range called Pizza Mania, offering personal-sized pizzas at Rs35 apiece. Two months later, Pizza Hut offered Magic Times pizza meals for as low as Rs99. ―The decision to introduce Pizza Mania was not driven by the slowdown, but the timing simply coincided with the slowdown in the market,‖ said Dev Amritesh, senior vice-president for marketing at Domino’s. The range already makes up 25% of overall orders and 15-16% of revenue for the chain, which plans to boost sales by launching new advertisements plugging it. ―If we do a good job pushing this, it could cross 30% of overall transactions this summer,‖ says Amritesh, who expects revenue from the range to reach at least one-fifth of the total. (The promoters of HT Media Ltd, which publishes Mint, and promoters of Domino’s Pizza India Ltd are closely related. The companies have no promoter cross-holding.) Consumers are skimping and saving as they weather the economic downturn, which has brought with it job losses and salary cuts, and are avoiding lavish dining options and expensive purchases. That’s prompting companies to devise value-for-money deals to drive sales. Pizza Hut’s Magic Times range now makes up 10% of sales. ―This is one reason we’ll be able to grow this year,‖ said Anup Jain, marketing director of Pizza Hut. He said there was a 10% increase in the number of customers at the chain’s restaurants when the range was introduced in October.
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KFC and McDonald’s have always sw orn by the value-for-money concept. KFC’s snacks are priced between Rs25 and Rs35. In India, because people often go out to eat in large groups, KFC introduced the Chicken Bucket concept. ―The meal bundles, with sides and beverages thrown in, cost about Rs100 per head and are therefore extremely popular,‖ said Unnat Verma, director of marketing at KFC. Currently, during the downturn, snacks make up 15% of KFC’s sales while another 25-30% comes from the Chicken Bucket. McDonald’s value meals, that have an entry price of Rs49 going up to Rs119, makes up 20% of sales. ―We are increasingly looking recessionresistant for our affordability,‖ says Vikram Bakshi, managing director of McDonald’s for the northern and eastern regions. McDonald’s has seen sales growth of 25-28% every year. With the value strategy reaping dividends, fast-food chains are working to expand business both in existing markets and newer geographies in a country where eating out is a Rs26,000 crore industry, according to the retail consultancy Technopak. The so-called organized sector that includes chain restaurants makes up just 10% of the pie, and is growing about 2025% annually. Domino’s Pizza is trying to dispel the impression that it is a premium brand and expand its customer base. Amritesh says he found a security guard from a neighbourhood shop peeping into a Domino’s outlet, but hesitant to enter. The executive wants workers earning a monthly salary as low as Rs4, 000-5,000 to regularly walk in on payday to get a taste of the Rs35 pizza. Traditionally, taste and a service delivery guarantee of 30 minutes have been the two pillars of Domino’s sales strategy. It has now added a third— value perception. The idea is to make the pizza a product for the masses. On the back of the value strategy, Dominos increased sales by about 45% year-on-year at the company level (which includes both new stores and existing stores). The same-store growth rate was about 20%. Same-store sales are defined as sales at stores open for at least one calendar year. ―Last year we have seen that number come down to about 12% or so,‖ Amritesh says. ―Similarly, where overall company growth was about 45% last year, we’re seeing that come down to about 35% this year.‖
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Amritesh doesn’t attribute the dip to the economic slowdown. ―When you’ve grown for three years at that type of rate, irrespective of what’s going on in the external environment, you expect some of that growth to catch up,‖ he says. ―You would expect it to come down a bit.‖ Pizza Hut, which has been in India for 12 years, is in the process of upgrading its restaurants to provide customers with an enhanced dining experience. ―The prices remain the same but what changes is your money’s worth,‖ says Jain. ―Now, the service is much better and touchpoints like the crockery you eat out of and the kind of interaction you have with the staff —that’s much better.‖ In February 2008, Pizza Hut introduced a large variety of menu options at a fixed price for some platinum and gold credit card holders. That now accounts for 7% of its sales. ―I think we will see some sales shifting here,‖ says Jain. ―What we’ve seen is that consumers are ordering more because they feel like they are saving money.‖ Fifty per cent of the sales are paid for through credit cards. Pizza Hut has posted 20% year-on-year growth since its entry into the Indian market. KFC has been growing at a compounded annual growth rate of 65% since it re-launched in 2004 and expects to maintain the pace for the next two years. December saw KFC post same-store sales growth of 30% and combined sales of both new and same stores of 80%. January alone saw same-store sales growth at 40% and combined growth at 80-85%. ―These last few months have been fantastic for us‖, says Varma.
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Rivals Domino's, Pizza Hut each target Indian market
Domino's Pizza India Ltd. has teamed up with Baskin-Robbins to test ice cream at its 147 restaurants in India. The four flavors are vanilla, "very berry strawberry," butterscotch ribbon and chocolate--all offered in three portion sizes. Domino's Pizza India Ltd. is the master franchisee for India and Nepal of Domino's Pizza International Inc., based here. Separately, rival Pizza Hut, which has more than 130 restaurants in India, launched its first television advertising campaign there. The full-service brand, which is owned by Yum! Brands Inc., offers some locally popular pizza flavors, including tandoori and masala. Pizza Hut also carries a line of vegetarian dishes because many Indians do not eat meat.
Abstract
The case discusses the localization strategies adopted by the multinational fast food chains - McDonald's, Domino's and KFC in India. Initially, these fast food chains found it tough to cater to Indian tastes. Soon, they customized their menu, positioned their products and advertised to appeal to Indian customers. McDonald's and Domino's succeeded to a certain extent, while KFC still had a long way to go. And the factors that forced the fast food chains to understand the local market and modify their strategies to suit local requirements.
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Factor Affecting Consumer Behavior
Culture
Culture Subculture Social Class
Social
Reference Group Family Role & Status
Personal
Age & Life cycle Economics Lifestyle & Personality
Psychological
Motivation Perception Caring, Beliefs & Attitude
Cultural Factors
1. Culture: - The set of Basic Values perception wants and behaviors reared by a member of society from family and other important institutions.
2. Subculture: - A group of people with shared value system based on common life experience and situations.
3. Social Class: - Relatively permanent and ordered decisions in a society choose members share similar values, interest and behaviors.
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Social Factors
1. Group: - To or more people who interact to accomplice individual or mutual goods.
2. Family
3. Roles and Status: - A person belongs to many group family, clubs etc…
Personal Factors
1. Motivation: - A need that is sufficiently pressing to direct the person to seek satisfaction of the need.
2. Perception: - The processes by which people select organization and interact information to form a meaningful picture of the world.
3. Leaning: - Changes in an individual behavior from experience.
4. Belief: - A descriptive thought that a person holds about something.
5. Attitude: - A person’s consistently favorable or unfavorable evaluation feeling and tendencies towards and object to idea.
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CONSUMER BEHAVIOUR
1. PRODUCT:
Services are products, even though intangible, they are service marketers must always remember that consumers do not buy any product; they but attributes that are converted into benefits. Legal services, medical care, hair styling, or brokerage services are more likely to be specialty services and for these customers may be wiling to go to considerable lengths to acquire the special attributes or benefits they deem essential for full and complete satisfaction. Many services are custom designed products. Services are intangible and heterogeneous and cannot easily be separated from their producers. Neither intangible dominants products like services cannot be stored nor can they are transported. It is difficult to brand.
2. PRICE:
Most services marketers follow competitive price policies, pricing their services either at the market price or slightly below. Pricing about the market price is generally employed by larger services firms or by all firms who wish to use price as a means of rationing the supply of their service offerings. The market for tangible dominant products may actually consist of three or four separate segment which is price sensitive & responsive. Flexible pricing seems much more prevalent in the marketing way vary, but typically the pricing goal of market is to maximize profits of goals of marketers are to increase sales volume. In summary, pricing in service-oriented enterprises is usually demand oriented with many sellers charging what the traffic bear. But in general pricing in particular may be their weakest and least developed marketing skill.
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3. PROMOTION:
Promotion is an important part of the marketing mix for many marketers. The key to successful promotion, whether it is advertising or personal selling is beneficing the product. Intangible dominant products such as services offer a challenge to the promotion manager. To successfully promote such as service, they are often personalized. To successfully promote service, they must be made to have a favorable positive image constructed to project attributes of the service. Promoting the service marketer’s image is a bit like ―Selling the sizzles & not the steak‖. Sellers are often expected to be know ledgeable professionals can give needed advice & counseling market oriented sporting events. No service marketer would overlook the opportunity to positively affect public opinion through its news releases or its staged activity design in past to alter public perception on other wise modify behaviours.
4. PLACE:
Channels for instant dominant product such as services are generally limited to the buyer and seller channels of distribution for services are direct and short, this is from market direct to ultimate consumers. In a service oriented ―product‖ however, it may be more fitting to consider that any extra corporate entity between the producer of service and prospective users which is utilized o make the service available and or more convenient is a marketers should perhaps take a fresh look at the channels of distribution for service as distinct from the channel concepts employed for goods.
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5. PEOPLE:
The people factor in the service marketing mix is perhaps the least they can rely on its getting their marketing mix ―right‖ and the most important. One they have to get right. Service personnel are present at two levels within the organization. Contact personnel and support personnel are those individuals whom the customer sees such as waiters or receptionists and whom the customer judge the service upon when they search for tangible clues as to the quality of service. The value they attribute to the service relies a great deal on the conduct of the contact personnel. Employees need to become ambassadors for the organization as the quality of the service and the quality of the service providers are inseparable.
6. PROCESS:
The process element of the service marketing mix is concerned with way in which the service is delivered to the customer. The inseparability characteristics of service has an important implication for how the service company personnel deliver the service to the customer and how the customer participates in the service delivery process. The ―auxiliary‖ aspect of the service that is the added value of the service, become an important competitive weapon in differentiating the service from competious when the service is experienced by the customer. Therefore, the overall effectiveness of the service process fundamentally depends on how the consumers use the service which have been defined as acts rather than things and this casts some light on the concept of ―process‖ many benefits from service occur not so much as a result of what is offered, as in the way of which it is offered.
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7.
PHYSICAL EVIDENCE:
Since a service is intangible, it is important for the company to search for tangible or physical clues which enable them to evaluate the opportunities. Service firms must be in Gandhinagar and Ahmadabad was that every aspect of the company will affect the consumer when he comes into contact with the service. There are two types of Physical evidence Peripheral Evidence: It is usually possessed as part of the purchase of a service but it has little or no independent value. Essential Evidence: Unlike peripheral evidence it cannot be possessed by the consumer. However, essential evidence may be so dominant in its impact on service purchase and use that it must be considered virtually an element in its own right.
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Threat of Entry
A growing Industry often faces threats of new entrants that can alter the competitive environment. There may, however be a number of barriers to entry. Potential competitive tends to be high industry is profitable or critical, entry barriers are low and expected retaliation form the exiting firms is not serious. The following are some of the important common entry barriers 1. 2. 3. 4. 5. 6. Government policy. Economies of scale. Cost disadvantages independent of scale. Product differentiation. Monopoly elements. Capital requirements.
Rivalry among exiting competitors
Rivalry among exiting competitors is often the most conspicuous of the competitions, firms in industry are ―mutually dependent‖ – competitive moves of a firm usually affects others and may be retaliated. Common competitive actions include price changes, promotional measures, customers service, warranties, product improvements new product introduction channel promotion etc… There are number of factor, which influence the intensity of rivalry these includes: 1. Number of firms and their relative market share strengths. 2. State of growth of industry. 3. Fixed or storage costs. 4. Indivisibility of capital augmentation. 5. Product standardization and switching costs. 6. Strategic stake. 7. Exit barrier. 8. Diverse competitors. 9. Switching costs. 10. Expected retaliation.
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CHAPTER 5 TV & Its Effect
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TV Transmission and Reception
TV brings us images from far and wide. A TV camera converts a stream of pictures into electric wires, which are received by our TV sets where these are again reconverted into pictures. The whole transmission is so fast that we see the events as they happen. The TV camera scans a picture from left to right as lines. These optical pictures are projected on the target screen inside the TV camera. The screen is made up of cells of care cesium. A needle – sharp beam is emitted through an electric gun. The beam sweeps the target screen. In the process is comparable to reading. This is called scanning, as observed earlier. The cells are then electrically charged. The charge is strong when the cell is in the light part of the picture, and weak when it is in the dark part. These charges form electromagnetic impulses. As TV is audiovisual, we have to use a microphone which converts sound into electricity. Both audio and video waves spread outwards in straight lines. As the earth is curved, terrestrial transmission is possible over a large area by putting many transmitters & aerials. A transmitter sends continuous electro magnetic waves. These continuous waves are called carrier waves. It is of high frequency (in the other words it alternates rapidly). Its pattern is constant. The picture worm and carrier wave pass through a modulator which superimposes pictures on the carrier wave. Another carrier wave is that of the sound. Its wave length is not the same as that of the cable-lines on land. Across the oceans, pictures are sent by a satellite link. Receiving TV signals at home is exactly the reverse process. The antenna collets the signals both audio and video, in the TV set; they are taken from their carrier waves and amplified. The sound impulses go to the loud speakers. The picture signals activate a thin electron beam of varying strength. When the beam strikes the screen, the tiny dots glow, & trace the lines from left to right. Some 30 seconds appear rapidly. It gives the illusion of motion. In colour TV, three basic colours are used. They are red, blue & green. The light is split up into these colours in TV camera by a set of prismatic mirrors. They separate out the colours and send them to its own electron gun with its own target plate. The dark-light information is sent by each target plate but it combined when passed to the carrier wave. In our TV sets, the dc-coder separates these colours signals, and leads each of its own electric beams housed in a single tube. The screen carrier the grid of phosphoric dots arranged ii; group of three; red, blue & green. BPCBA/TY/CP/2012-13 | Pizza Hut 96
The perforated mask receives the beams. The beams are directed by the mask through different angles. In this way, they activate one of the Three colours.
Satellite Television
India is a pioneering country in satellite TV. Rura programmes were beamed experimentally by satellite TV in the seventies. India successfully scattered images over formidable distances using a satellite transponder. The seeds for a new technology were sown. The agency which conducted this experiment was ISRO: India space research organization. People who persuaded Indira Gandhi were not politicians or advertisers or bureaucrats but our space scientists – Vikram Sarabhai, Yash Pal, E.V.chitins & their team. They launched satellite instructional TV experiment called SITE. It used communicators, intelligence agencies & scientists. The experiment of STV faded out in India. The World took over where India had left off. What India did in the seventies became a communication revolution later.
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TV’s Effect
TV effects the behavior its effects were debatable since most of the studies so far conducted are laboratory swdies consisting of experiments but their findings contra, field studies. TV is considered a prime suspect playground behavior it is often quoted as evidence of the adverse effects of TV. Research does points out some advertise effects but points out a host of causes for this and refuses to isolate TV. Some people argue if TV can persuade us to buy products by airing commercials it can affect us in many other ways too. However selling products does not necessarily mean changing behavior.
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TV Verses Other Media
The ad revenue has increased from Rs1, 504/- crores in 1991 to expected Rs3, 300/- crores in 1995. This is due to Satellite TV, and the availability of Foreign Brands. The value of ads in press have grown up by about Rs800/crore (from Rs1, 142/- crore in 1991) However, the share of the print medium in total ad revenue has fallen from about 70 to under 60 p.c Television has been the single biggest factor in opening up a huge rural market for consumer products and creating a higher level of aspiration among the huge Indian medium class estimated at over 150 million people. Ads of low-priced consumer products formed 20 p.c of print media’s Advertising. This segment is fast shifting to TV. DD’s ad revenue grew by an average 62.5 p.c over a period of 8 years, bringing it to Rs.361/- crores in 1992-93. Since 1993-94 the satellite TV ate up DD’s revenue and it could reach only Rs.371/- crore, with an increase of 2 %. The satellite channels grew by about 50 crore to Rs.180/- crore, a 12 times increase from Rs.15 crore in 1992, this is expected to reach Rs.300/crore by 1995. The broadcasting companies have organized themselves under the banner of the Indian Broadcasting Society on the lines of the Indian Newspapers Society (INS).
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Merits and Demerits of TV Advertising
1st let us consider some special characteristics of commercial TV. Here on National network the advertisers reach the National mark. On 2 nd channel they reach the regional market on Satellite channels they reach markets of several countries TV is a home and family medium, viewing on TV effortlessly. There is a movement and so the product is close to reality. For Example, an aircraft acquires a beauty not seen when flying above in the sky or static as in print ads. The expression of Ankita Jhaveri, the child model Rasna as signifies the Rasna is very delicious. Malavika really conveyed what Frooti is all about in her Rustic outfit. In India also, we get now viewer ship data and rating of different programmes.
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Special Merits of TV
TV has immense impact, no other medium can ever compete TV as far as effective presentation, is concerned. It attracts attention immediately. Computer graphics has made it still more effective. It arouses interest in the produce print ads, these two steps require deliberation. Here it comes spontaneously TV commercials and Spondered program are impactive even when the viewer is temporarily not before he set. Excellent Quality of Production TV’s sponsored programmes and DD programmes have been improving in terms of quality-content wise as well as production wise consistently over a period of time. The agency exercises overall supervision. We have cadre of TV producers now. Sometimes the movie Moghuls themselves produce a TV serial, so skilled hands handle this medium. Some Sponsored programmes are lavishly made. They do a lot of Outdoor shooting. But most of the Programmes are Indoor shot Programmes.
Retailers also watch TV:-Both consumers and distributors are TV
viewers. The retailers might miss out the ads in print media. But they are exposed to TV ads. Thus they fell inclined to stock these products. Nada Kishore & Sons, a local firm making Homacol liquid soaps has definitely improved its distribution after TV-47- advertising. The single medium does a double job.
It is a Comprehensive Technique: - In TV, there is a unique blend of
sight, colour, movement, sound, timing, repetition and presentation in the home. Put together it has more attributes than any other medium. It therefore produces quick results. Only the product should be a nationally marketed Consumer Product.
Demonstration: -Product benefits can be shown most effectively by TV.
Benefits may accrue over a period of time. But by using the technique of time compression product benefits can be shown in a 10 second spot.
Creative use of Environment & Menial Make-up of Viewers: - The
editorial environment of a Sponsored programme can be shown using ACTION shoes before the teleserial of Circus.
Animation: - It is possible to vest the product/logo with human quality.
Animated characters do not alienate us.
Image Building: -TV succeeds in building a powerful image of the
company and its products. It can also project an image of the users rendering it excellent for life-style advertising. BPCBA/TY/CP/2012-13 | Pizza Hut 101
Emotional Content: - TV triggers off nostalgia, tenderness, generosity
kindness and such other emotions. The special effects enhance the impact.
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MILESTONES OF A GLOBAL VILLAGE
TERRESTRIAL TRANSMISSION OF TV
DIRECT BROADCAST SATELLITE (DBS) MULTI-CHANNEL TV
MULTI MEDIA SET COMPTER DATABASE, PAY TV, FM BROADCAST
FIBRE OPTICS INTEGRATED SWITCHING DIGITAL NETWORKING (ISDN)
HIGH DEFINITION TV (HDTV)
TV LIKE WALL TILES USES LCDS OR LEDS
INTERACTIVE DIFITAL TV
3-D TV, TV ON GLASSES
VIRTUAL REALITY LASER IMAGES WITHOUT SCREEN
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TV as Medium of Future
Though both TV and films are audio and visual media, TV technology is Dolt—t from that of film electronic signals is transmitted at the speed of light- and reach right into our homes. Cinema however uses films. These require development and physical distribution of prints. One major advantage of cinema is the quality of prices it producers. TV however has not matched cinema yet in picture quality. Though it’s timeless Scores over the cinema. HDTV (High Definition TV) however in future many gives the same sharpness and clarity which 35mm films give today. TV screen produces images which are dots actually. The closely spaced dots produce a finer grained picture. Deification is used in the sense of resolution. In low definition system as of today, the dots merge with each other. Americans use 525lines on screen and cameras used to produce a T programme and those used to produce 35mm films. It results into superior quality of programmes.
Rechargeable LCD
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CHAPTER 6 RESEARCH FINDINGS
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INTRODUCTION
INTRODUCTION TO RESEARCH
Research can be defined as ―logical & systematic application of the fundamental of science to the general and overall questions of a study and scientific techniques which provides previous tools, specific procedures and technical, rather than philosophical means for getting ordering the data prior their logical manipulation‖. Research seeks to find explanation to unexplained social phenomena to clarify doubtful and correct the misconceived facts of social life. Research represents ―A systematic method of exploring actual persons and groups, focused preliminary on their experience with in their social circle which permit stating proposition in the form, thus the research defined as logical and systemized means or techniques to discover new facts and verify old facts and analyze their sequence, interrelationship and explanation which were derived with an appraise theoretical frame of reference, develop new scientific tools concept and new theories which would facilitate reliable and valid study of human behaviour about any thing. To study the effect of Fast Food Advertisement on the customers/consumers of the Fast Foods we did a survey of the youngsters/consumers through a questionnaire and a study of the Top Six Fast Food Outlets. In this survey we took 80 customers so the total sample size is 80.
Topic: - Macro analysis of advertisements industry with special focus on
effectiveness of advertising on Youngster’s perception towards Fast Food Advertising.
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INTRODUCTION TO RESEARCH ANALYSIS
After the collection of the data the next task of the research process is the analysis of collected information from the customers and dealers. The questionnaire form, its process and eddied to analyzing purpose.
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Research Questions
Doughnut Pie-Chart
Q.1 Do you recognize advertisement as an industry?
Description: 70% percent people surveyed knew about advertisement industry; whereas around 17% people surveyed never heard about this industry. 13% people surveyed were not sure about its existence.
Q.2 Are you a regular fast food eater?
Description: There were 52% people who were regular fast food eater and 48% people were not still a regular customer of fast food industry
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Q.3 From where do you get your fast food prepared?
Description: Around 48% of surveyed people get their fast food prepared at fast food outlet and nearly 22% people get their fast food from ready to eat packets; while 20% people still opt for local wheels and rest 10% get their fast food delivered from fast food restaurants.
Q.4 Do you get influenced by fast food advertisements shown on the television/media?
Description: 32% people get influenced by fast food advertisements and tend to visit the place, 20% people said that fast food outlet is far from their place but still are influenced by its advertisements. 20% people think that advertisements are promising and while 28% people still do not have any kind of influence on them.
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Q.5 How often do you visit a fast food outlet/restaurant?
Description: There were only 12% people who regularly visit the fast food restaurant/outlet, 42% people visit fast food centre occasionally and 18% people visit more than twice a week. Lastly only 28% people visit fast food outlet once weekly.
Q.6 Of which of the following fast food restaurant/outlet`s advertisements is your favorite?
Description: Around 40% people surveyed have McDonalds’ as their favorite advertisement, KFC has 12% favorite, and 11% goes for Dominos’, 28% people surveyed have Pizza Hut as their favorite and remaining 8%, 8% goes for Subway and other brands.
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Q.7 Why is that advertisement your favorite?
Description: 20% of surveyed people believe that advertisements shown are tempting, 32% people think that advertisements has appealing affect on perception, 26% people like a advertisement because of their favorite celebrity endorsement and 22% people believes in simplicity of advertisements.
Q.8 What is your opinion on fast food advertisements shown on televisions/media?
Description: 12% people surveyed believe that fast food advertisements shown on T.V./media lack Indian touch, 16% believe that advertisements are superficial while 24% think that advertisements are promising and good. But there were 32% people who find advertisement very attractive and interesting and lastly about 16% are inclined on other reasons.
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Q.9 What is the most attractive part that you like the most in any fast food advertising shown on television/media?
Description: 16% of surveyed people believe that music of the advertisement plays a crucial role, whereas 31% people believe that the fast food itself is the most attractive part of the advertisement. Around 35% people think that the concept is attractive, 25% people think that models/actress are attractive part of advertisement; 8% think different colors used for display is more important. And around 6% think that punch line/tag line plays important in advertisement and another 6% likes prices in the advertisement and lastly 5% people had other reasons.
Q.10 Do you wish to visit any fast food outlet/restaurant after watching their relevant advertisement?
Description: 63% people visit fast food outlet/restaurant after watching their relevant advertisement on T.V. 63% people would delay for next time and 24% were not interested.
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Q.11 Do you find the food as tempting and tasty as in the advertisement?
Description: 2% people think that fast food is tempting and tasty as in the advertisement, 40% people believe fast food is a bit good as in advertisement. 32% people do not find fast food as tempting and tasty as in the advertisement. 26% people haven’t tried as yet.
Q.12 If no then, what is stopping you from doing that?
Description: Around 39% had health problems, 29% did not have time to visit any fast food outlet, and 13% people had a familial biasness. 1% people did not have trust on fast food and whereas 18% other reasons.
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Q.13 Are advertisements of fast food outlet/restaurants successful enough in establishing their market?
Description: 35% people think that fast food industry is increasing their market slowly and steadily, while 26% did not have any clue about the market of fast food companies. 18% believed that fast food outlets are successful in establishing their market because of their subsequent revenue increase and 5% don’t see any improvement in their market.
Q.14 Would you prefer any celebrity to endorse any fast food outlet/restaurant?
Description: 38% believed that celebrity endorsement is definitely a good idea, 22% said that it would be easy to relate to them after celebrity endorsement and 12% think that fast food itself is promising, so need to endorse a celebrity. 25% opposed celebrity endorsement and 3% believed in any newer concept apart from this. BPCBA/TY/CP/2012-13 | Pizza Hut 114
Q.15 Tick any one of the following: Serial Particulars no./Qs. 1 Homemade fast food is better than the fast food restaurant 2 Fast food is unhealthy 3 Advertisements of fast food shown on T.V. are waste 4 Fast food advertisements should be shown during lunch/dinner time 5 Do you like the concept of fast food in India? Yes 26% 78% 14% 88% 44% No 68% 16% 75% 8% 47% Don`t know 6% 6% 11% 4% 9%
Description: For Q.1 26% believed in homemade fast food and 65% opposed the same, while 6% didn’t had any inclination. For Q.2 78% believed that fast food is unhealthy and 16% found fast food healthy, while 6% had no response. For Q.3 14% found fast food advertisement as waste and 75% clearly contradicted the statement, while 11% still had confusion about it. For Q.4 88%agreed with the statement and 8% opposed it, while 4% did not know anything. For Q.5 44% liked the concept of advertisement in India and 47$% did not liked the concept, while 9% had a doubt about the question. BPCBA/TY/CP/2012-13 | Pizza Hut 115
Q.16 Does your health permit to have the fast food?
Description: 48% had sound health to have fast food, 32% people had health concerns and 20% were not aware about their health problems.
Q.17 Have you seen KFC`s new advertisements for its new product ―Krushers‖?
Description: 48% were aware about KFCs’ new advertisement and 37% were not aware about KFCs’ advertisement, while 15% did not remember the advertisement.
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Q.18 What did you liked the most about the advertisement?
Description: 20% liked the way of presentation of the advertisement, 22% liked the background score, 11% liked the model/actress, and 28% liked the concept and 9% liked something unique in advertisement.
Q.19 Does your budget stop you from buying/visiting any fast food restaurant?
Description: 28% had a restricted budget and 72% did not have any budgetary problems.
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Q.20 According to general tendency, a typical Indian would not prefer going to any fast food restaurant; select one option of the following.
Description: 32% agreed with the assumption, 15% strongly agreed with assumption, 20% did not agree with the assumption, 12% strongly disagree with the assumption and 21% didn’t had any response.
Q.21 Which is your Favorite Fast Food? Why?
Description: 28% had cheese burger as their favorite fast food, 53% liked cheese pizza the most, and 11% liked cheese rolls. 8%, 8% people liked special fast food of the outlet and other food respectively.
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Q.22 Of which Fast food company does it belong to?
Description: 36% McDonalds’, 8% Dominos’, 5% Subway, 9% KFC, 20% Pizza Hut, 16% U.S. Pizza and 4% other brands.
Q.23 Would you appreciate, if fast food becomes cheaper in terms of price?
Description: 24% strongly agreed with the statement, 46% agreed with the statement, 28% were neutral, 6% disagreed with the statement and 1% strongly disagreed with the statement.
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Q.24 Does your religion/culture/tradition allow you to have fast food?
Description: 75% had religious/cultural/tradition problem and 25% did not have any such problem.
Q.25 Why would you not go for fast food after watching its relevant advertisement shown on T.V.?
Description: 22% had financial constraint, 13% were influenced by relatives, and 23% were unwilling to visit the fast food outlet. 8% thought that ineffective advertising stopped them to visit the place, 25% feared the change of taste, 8% had digestive problems and 11% had other problems.
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Q.26 Do you become addict of fast food after trying it?
Description: 57% agreed with the statement, 43% did not become addict of fast food.
Q.27 what is the effect on your perception after watching fast food advertisements on T.V.?
Description: 46% tend to be attracted to the nearest fast food outlet, 18% were unsure about the advertisement, 20% tried to ignore the advertisement, 8% showed unwillingness and rest 3% like to describe the experience.
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Q.28 Does fast food advertisement literally influence your perception?
Description: 46% got influenced by the advertisement, 36% do not have any influence of the advertisement and 18% did not know in exact words/expression.
Q.29 Does the fast food outlets’ space/environment/ambience affect your choice to visit the place?
Description: 44% agreed that fast food outlets’ ambience affected their choice to visit the place while, 7% had some other reason. 16% believed that less crowded environment is essential and 33% people did not have much influence on their visit to fast food outlet.
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Q.30 Which one of the categories below do you belong to?
Description: 44% people surveyed were under graduate student, 28% were post graduate, 10% were diploma student and 18% were school students.
*THANKS FOR YOUR TIME AND ASSISTANCE IN TAKING PART IN THIS REPORT*
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A major task of the management is to recognize up diagnose problems. No problem exist until someone deserts that it does all though the particular situation may have existed for sometime unrecognized. Problems discovery is the first stage of any decision process and is the main objective of monitoring research. There is a problem when a decision maker faces uncertainty, which may concern either difficulties or opportunities. Difficulties are situation or developments that have negative or counterproductive consequences opportunities, on the other hand are the situations with positive potentials that, if recognized and capitalized on are profitable to the enterprise. Competitors may have recognized and moved them on earlier and their preemption of opportunity. Opportunities are more difficult to identify and challenge to solve but they may lead to profitable innovations.
1. Objectives of preliminary research
After discovering the problem, it needs to be defined and this should be a statement in the terms used by the decision maker.
The objective of preliminary research is to gather data on the
situation surroundings the supposed problem to determine. A correct definition of the problem. An understanding of its environment. Whether the initial feedback data, which triggered problem recognition accurately, pictured the situation. Preliminary Research has no standard Techniques.
2. Exploratory research
The next Question is that whether there is sufficient need to conduct an exploratory study such a study’s main purpose/objective would be to determine the approximate area where the problem’s rise and also to identify since attractive courses of action to solve it. It may incidentally also enable a sharper definition of the problem to be made. If an Exploratory study of alternatives were conducted. It would begin with identifying a number of hypotheses that are already known to the firm. BPCBA/TY/CP/2012-13 | 1
Discussion with managers in the company would probably bring out a number of hypotheses without having to leave the office/firm.
RESEARCH METHODOLOGY
1. Research objectives
To try and understand advertisement concept in India To analyze the T.V commercial of various products To find out whether people tend to buy the Fast Food products after viewing its T.V commercial Comparison of International Advertisements with the National Advertisement (service,style,music,concept) Comparison of different Fast Food Brands with reference to their T.V commercial’s and sales.
2. Research Scope
S.G. Highway, Ahmedabad
3. Secondary Data
Catalogues, Browsers, Support materials Websites Newspapers, Magazines
4. Primary Data
Survey of 80 respondents/youngsters/consumers
5. Sampling
Probability Sampling method was used Simple Random Sampling method was used for primary survey in Ahmadabad The sample size of 80 was also chosen to support the analysis
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6. Time Frame
6 Months 1st Two Months = Data Collection Next Month = Preparing Draft Last Three Months= Questionnaire, Analysis, Recommendations & Suggestions.
7. Age Group
15 years – 27 years We consider the youngsters as people aged between 15 yrs – 27 yrs and also those who are Unmarried.
8. Data analysis and tools used
After the data was collected through the Questionnaire, Data table was prepared and an analysis was doing using Pie-Charts and Briefing a little Description about the analysis.
9. Limitations
Sample size of 80 may be unreasonable Most of the secondary data was collected from the company websites. There was no tools available, which would measure and give the effectiveness of fast food advertisements on the Youngsters The outlets of K.F.C are still not launched in Gujarat but people are aware about it and are hoping for its early arrival.
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TABLE OF CONTENT
Chapter No.
I II III
No.
PREFACE
Particulars
Page No.
ACKNOWLEDGEMENT EXECUTIVE SUMMARY INTRODUCTION TO PROJECT RESEARCH METHODOLOGY
1
1 1.1 1.2 1.3 1.4 1.5 1.5.1 1.5.2 1.5.3 1.5.4 1.5.5 1.5.6 1.5.7 1.5.8 1.5.9
INTRODUCTION TO ADVERTISING INDUSTRY INDIAN ADVERTISING INDUSTRY ADVERTISING ADVERTISING, DIRECT MARKETING & TRADE PROMOTION BRAND RECOGNITION WILL CHANGE CUSTOMER PERCEPTION HISTORY THE 1900’S INDIAN AGENCIES, FOREIGN ADVERTISING IN THE THIRTIES INDIANISING ADVERTISEMENTS IN THE FOURTIES CORPORATE ADVERTISING IN THE FIFTIES CREATIVE REVOLUTION IN THE SIXTIES THE PROBLEMATIC SEVETIES GLUED TO THE TELEVISION IN THE EIGHTIES TECH SAVVY IN THE NINETIES IN THE NEW MILLINNIUM
9 10 11 12 14 15 16 17 18 19 20 22 23 25 27
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1.6 1.6.1
ADVERTISING COMPANIES TOP ADVERTISING COMPANIES OF INDIA
28 28
2
2 2.1 2.1.1 2.1.2 2.1.3 2.2 2.2.1 2.2.2 2.2.3 2.3 2.3.1 2.4 2.5
FAST FOOD INDUSTRY WHAT IS FAST FOOD? ON THE GO CUISINE GLOBALIZATION FAST FOOD ADVERTISING CAMPAIGN INTENTIONS TARGET AUDIENCE SPONSORSHIP METHODS OF ADVERTISING COMMON METHODS OF ADVERTISING TELEVISION COMMERCIALS FAST FOOD ADVERTISING UP BY 22%
31 32 33 33 34 35 35 35 36 37 37 38 40
3
3 3.1 3.1.1 3.1.2 3.1.3 3.1.4
TOP FAST FOOD OUTLETS Mc DONALD’S HISTORY PRODUCTS GLOBAL OPERATIONS Mc DONALD’S ADVERTISING
41 42 43 44 45 46
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3.2 3.2.1 3.2.2 3.2.3 3.2.4
SUBWAY PRODUCTS GLOBAL LOCATIONS SUBWAY ADVERTISING SLOGANS
48 49 51 52 52
3.3 3.3.1 3.3.2 3.3.3 3.3.4
PIZZA HUT HISTORY PRODUCTS PIZZA HUT ADVERTISING PASTA HUT
54 55 56 57 58
3.4 3.4.1 3.4.2 3.4.3 3.4.4 3.4.5
DOMINO’S PIZZA HISTORY FRANCHISEES 30 MINUTES GURANTEE DOMINO’S PIZZA ADVERTISING GLOBAL LOCATION
59 60 61 63 64 66
3.5 3.5.1 3.5.2
K.F.C HISTORY THE SECRET RECIPE
67 68 69
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3.5.3 3.5.4 3.5.5 3.5.6
PACKAGING MENU ITEMS (PRODUCTS) K.F.C. ADVERTISING INTERNATIONAL OPERATIONS
71 73 79 81
4
4 4.1 4.2 4.3 4.4 4.5 4.6 4.7
FACTORS AFFECTING PERCEPTIONS AFFORDABLE MEALS DRIVE SALES AT FAST FOOD CHAINS RIVALS DOMINO’S, PIZZA HUT EACH LARGE INDIAN MARKET ABSTRACTS FACTORS AFFECTING CONSUMER BEHAVIOUR CONSUMER BEHAVIOUR (7 P’S) THREAT OF ENTRY RIVALRY AMONG EXITING COMPETITORS
82 83 86
86 89 93 93
5
5 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8
TV AND ITS EFFECT TV TRANSMISSION AND RECEPTION SATELLITE TELEVISISON TV’S EFFECT TV VERSES OTHER MEDIA
94 95 96 97 98
MERITS AND DEMERITS OF TV ADVERTISING 99 SPECIAL MERITS OF TV MILESTONES OF A GLOBAL VILLAGE TV AS MEDIUM OF FUTURE 100 102 103
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6
6 6.1 6.2 6.3 6.3.1
RESEARCH FINDINGS INTRODUCTION INTRODUCTION TO RESEARCH ANALYSIS RESEARCH QUESTIONS DOUGHNUT PIE-CHART
104 105 106 107 107
RECOMMENDATIONS / SUGGESTIONS CONCLUSION IV V V.1 VI BIBLIOGRAPHY ANNEXURE QUESTIONNAIRE DEFINITIONS
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CHAPTER 1 INTRODUCTION TO ADVERTISING INDUSTRY
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Indian advertising industry
The Indian advertising industry is talking business today. It has evolved from being a small-scale business to a full-fledged industry. It has emerged as one of the major industries and tertiary sectors and has broadened its horizons be it the creative aspect, the capital employed or the number of personnel involved. Indian advertising industry in very little time has carved a niche for itself and placed itself on the global map. Indian advertising industry with an estimated value of es13, 200-crore has made jaws drop and set eyeballs gazing with some astonishing pieces of work that it has given in the recent past. The creative minds that the Indian advertising industry incorporates have come up with some mind-boggling concepts and work that can be termed as masterpieces in the field of advertising. Advertising agencies in the country too have taken a leap. They have come a long way from being small and medium sized industries to becoming well known brands in the business. Mudra, Ogilvy and Mathew (O&M), Mccann Ericsonn, Rediffussion, Leo Burnett are some of the top agencies of the country. Indian economy is on a boom and the market is on a continuous trail of expansion. With the market gaining grounds Indian advertising has every reason to celebrate. Businesses are looking up to advertising as a tool to cash in on lucrative business opportunities. Growth in business has lead to a consecutive boom in the advertising industry as well. The Indian advertising today handles both national and international projects. This is primarily because of the reason that the industry offers a host of functions to its clients that include everything from start to finish that include client servicing, media planning, media buying, creative conceptualization, pre and post campaign analysis, market research, marketing, branding, and public relation services. Keeping in mind the current pace at which the Indian advertising industry is moving the industry is expected to witness a major boom in the times ahead. If the experts are to be believed then the industry in the coming times will form a major contribution to the GDP. With al this there is definitely no looking back for the Indian advertising industry that is all set to win accolades from the world over.
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ADVERTISING
Advertising is a form of communication used to help sell products and services. Typically it communicates a message including the name of the product or service and how that product or service could potentially benefit the consumer. However, advertising does typically attempt to persuade potential customers to purchase or to consume more of a particular brand of product or service. Modern advertising developed with the rise of mass production in the late 19th and early 20th centuries. Many advertisements are designed to generate increased consumption of those products and services through the creation and reinvention of the "brand image". For these purposes, advertisements sometimes embed their persuasive message with factual information. There are many media used to deliver these messages, including traditional media such as television, radio, cinema, magazines, newspapers, video games, the carrier bags, billboards, mail or post and Internet marketing. Today, new media such as digital signage is growing as a major new mass media. Advertising is often placed by an advertising agency on behalf of a company or other organization. Organizations that frequently spend large sums of money on advertising that sells what is not, strictly speaking, a product or service include political parties, interest groups, religious organizations, and military recruiters. Non-profit organizations are not typical advertising clients, and may rely on free modes of persuasion, such as public service announcements. Money spent on advertising has increased dramatically in recent years. In 2007, spending on advertising has been estimated at over $150 billion in the United States and $385 billion worldwide, and the latter to exceed $450 billion by 2010. While advertising can be seen as necessary for economic growth, it is not without social costs. Unsolicited Commercial Email and other forms of spam have become so prevalent as to have become a major nuisance to users of these services, as well as being a financial burden on internet service providers. Advertising is increasingly invading public spaces, such as schools, which some critics argue is a form of child exploitation. In addition, advertising frequently uses psychological pressure (for example, appealing to feelings of inadequacy) on the intended consumer, which may be harmful.
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Advertising, Direct Marketing & Trade Promotion
English-language advertising in India is among the most creative in the world. TV advertising (especially in the Hindi language) has made major headway in the past 10 years, especially with the advent of satellite TV. Hindi TV channels - such as ZEE and Sony TV - have fashioned themselves on lines of Western channels, and most advertising on such channels are glitzy, smart and tailored for the middle classes. Such channels have forced the state-owned channel, Doordarshan, to add spice to their programmes which, earlier, were quite drab. The importance of the Hindi-speaking market (which is also fluent in English) is borne out from the fact that STAR TV, once an all-English channel, is now rich in Hindi programmes. Even the British Broadcasting Corporation is reportedly toying with the idea of airing Hindi programmes. Most major international advertising firms have chosen local Indian partners for their work in this market. Mumbai (formerly Bombay) remains the centre of the advertising business in India. India has a diverse and growing number of daily newspapers. Since 1991, the increase of business and financial news reports in English-language and vernacular dailies has paralleled the economic reform programme and the movements of the stock markets. Most leading publications have their circulation audited by the Audit Bureau of Circulation which has an India-dedicated office in Mumbai (formerly Bombay). Leading business newspapers include Business Standard and Economic Times. Magazines include India Today, Business India, Business Today, and Business World. In addition to advertising, other kinds of trade promotion activities are also well-developed in India. A large of exhibitions is held all over India, the most prominent ones at Pragati Maidan in New Delhi. Conferences and seminars are also widespread.
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Direct marketing
The mail service in India is slow though generally reliable. Telephone service is poor, but rapidly improving. While private courier services are growing strongly and the telecommunications sector is opening up for a range of modern services, until goods can be ordered conveniently and delivered with certainty, direct marketing will be limited to door-to-door sales. An inefficient stateowned banking system also prevents prompt transfers of funds from consumers to retailers. Credit card companies are increasingly targeting India's one million cardholders through directly-mailed offers of goods and services. The most successful direct marketers in India today are the millions of door-to-door sales representatives who visit neighborhoods and villages across India. From ice cream vendors to carpet sellers, India’s residential neighbourhoods are frequently visited by merchants offering a variety of products. Some soft-drink companies have used beauty queens to make surprise knocks on the doors!
Trade promotions
Trade promotion is a key activity in every marketing plan. It is aimed at increasing sales in the short term by employing promotion schemes which effectively increases the customer awareness of the business and its products. The response of consumers to trade promotions is not straight forward and is the subject of much debate. Non-linear models exist to simulate the response. Using MMM we can understand the impact of trade promotion at generating incremental volumes. It is possible to obtain an estimate of the volume generated per promotion event in each of the different retail outlets by region. This way we can identify the most and least effective trade channels. If detailed spend information is available we can compare the Return on Investment of various trade activities like Every Day Low Price, Off-Shelf Display etc. We can use this information to optimize the trade plan by choosing the most effective trade channels and targeting the most effective promotion activity
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Brand Recognition Will Change Customer Perception
Brand recognition is one of the best ways to build your business and using this method of business building can really offer you much success in whatever venture you are pursuing. Big Businesses know this and use it to their advantage. Understanding brand recognition will allow you to alter the perception of your business in the eyes of the general public. What sort of Advertising have you done until now? Do people at the very least know your name and what you have to offer? If the answer is a no then you have some work to do. People in the general are of your business need to know who you are. You don't have to push everyone into your door, but having them remember the name is an issue. Getting your name recognized is the beginning of new growth. To become recognized and remembered takes some time. You don't want to build false hype and rush through this. People will never forget the false part of the hype. That will give a bad case of long term brand rejection. My parents had a bad experience at a chain fast food type place over 10 years ago. Even though they have probably changed the entire staff several times over they will not go back for fear of something similar happening again. It is stuck in their minds. Brand recognition is accomplished only by people seeing your logo and business name over and over again. So therefore, if you are just beginning in business or are running a Marketing Campaign, then you need to make sure that you have everything imprinted with your custom logo and business name. This will create the repetition that your customers and future customers need to pick your product out of a crowd time and time again. Advertising is tricky. It can be really expensive and then it is all done so fast, and you have to do it all over again. With promotional products you get something in hand. It gets passed onto a possible customer. It will get worn or used and then others see it. There are many inexpensive products to use. There are coolers that will advertise for you on the beach. Frisbee's that will show off your name at the park. It will work for some good brand recognition.
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HISTORY
Indian Advertising starts with the hawkers calling out their wares right from the days when cities and markets first began Shop front signage’s from street side sellers to press ads the first trademarks Handbills distributed separately from the products 18th Century Concrete advertising history begins with classified advertising Ads appear for the first time in print in Hickey's Bengal Gazette, India’s first newspaper (weekly). Studios mark the beginning of advertising created in India (as opposed to imported from England) Studios set up for bold type, ornate fonts, more fancy, larger ads Newspaper studios train the first generation of visualizes & illustrators Major advertisers: Retailers like Spencer's, Army & Navy and White away & Laid law Marketing promotions: Retailers' catalogues provided early example Ads appear in newspapers in the form of lists of the latest merchandise from England Patent medicines: The first brand as we know them today were a category of advertisers Horlicks becomes the first 'malted milk' to be patented on 5th June 1883 (No. 278967).
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The 1900s
1905 - B Dattaram & Co claims to be the oldest existing Indian agency in Girgaum in Bombay 1912 - ITC (then Imperial Tobacco Co. Ltd.) launches Gold Flake 1920s - Enter the first foreign owned ad agencies - Gujarat Advertising and Indian Advertising set up - Expatriate agencies emerge: Alliance Advertising, Tata Publicity - LA Stronach's merges into today's Norvicson Advertising - D J Keymer gives rise to Ogilvy & Mather and Clarion 1925 - LR Swami & Co, Madras 1926 - LA Stronach & Co (India) Pr. Ltd, Bombay starts - Agency called National set up for American rather than British Advertisers - American importers hire Jagan Nath Jaini, then advertising manager of Civil and Military Gazette, Lahore. National today is still run by Jaini's family - Beginning of multinational agencies - J Walter Thompson (JWT) opened to service General Motors business 1928 - BOMAS Ltd (Formerly DJ Keymer & Co Ltd) set up 1929 - J Walter Thompson Co Pr. Ltd formed
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Indian agencies, foreign advertising in the thirties
1931 - National Advertising Service Pr. Ltd. Bombay set up - Universal Publicity Co, Calcutta formed
1934 - Venkatrao Sista opens Sista Advertising and Publicity Services as first full service Indian agency 1935 - Indian Publicity Bureau Pr Ltd, Calcutta established 1936 - Krishna Publicity Co Pr. Ltd, Kanpur begins operations - Studio Ratan Batra Pr. Ltd, Bombay established - Indian Broadcasting Company becomes All India Radio (AIR) 1938 - Jayendra Publicity, Kolhapur started 1939 - Lever's advertising department launches Dalda - the first major example of a brand and a marketing campaign specifically developed for India - The Press Syndicate Ltd, Bombay set up
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Indianising advertisements in the forties
1940 - Navanitlal & Co., Ahmedabad set up 1941 - Lux signs Leela Chitnis as the first Indian film actress to endorse the product - Hindustan Thompson Associates (HTA), the current incarnation of JWT, coins the Balanced Nourishment concept to make Horlicks more relevant to India - Green's Advertising Service Agents, Bombay formed 1943 - Advertising & Sales Promotion Co (ASP), Calcutta established 1944 - Dazzal, Bombay comes into existence - Ranjit Sales & Publicity Pr. Ltd, Bombay started 1945 - Efficient Publicities Pr. Ltd, Madras set up - Tom & Bay (Advertising) Pr. Ltd., Poona begins operations in India 1946 - Eastern Psychograph Pr. Ltd., Bombay set up - Everest Advertising Pr. Ltd, Bombay established 1947 - Grant Advertising Inc, Bombay formed - Swami Advertising Bureau, Sholapur started 1948 - RC Advertising Co, Bombay set up - Phoenix Advertising Pr. Ltd, Calcutta formed BPCBA/TY/CP/2012-13 | 18
Corporate advertising in the fifties
1950s - Radio Ceylon and Radio Goa become the media option 1951 - Vicks VapoRub: a rub for colds, causes ripples with its entry in the balm market 1952 - Shantilal G Shah & Co, Bombay 1954 - Advertising Club, Mumbai set up - Express Advertising Agency, Bombay - India Publicity Co. Pr. Ltd., Calcutta
1956 - Aiyars Advertising & Marketing, Bombay - Clarion Advertising Services Pr. Ltd, Calcutta 1957 - Vividh Bharati kicks off 1958 - Shree Advertising Agency, Bombay 1959 - Associated Publicity, Cuttack
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Creative revolution in the sixties
1960 - Advertising Accessories, Trichur started - Marketing Advertising Associates, Bombay set up 1961 - Industrial Advertising Agency, Bombay comes into existence - Bal Mundkur quits BOMAS to set up Ulka the same year 1962 - India's television's first soap opera - Teesra Rasta enthralls viewers 1963 - BOMAS changes names to SH Benson's - Stronach's absorbed into Norvicson - Lintas heading for uncertainty - Levers toying with giving its brands to other agencies - Nargis Wadia sets up Interpub - Wills Filter Tipped cigarettes launched and positioned as made for each other, filter and tobacco match 1965 - Kersey Katrak sets up Mass Communication and Marketing (MCM) 1966 - Government persuaded to open up the broadcast media - Ayaz Peerbhoy sets up Marketing and Advertising Associates (MAA) 1967 - First commercial appears on Vividh Bharati
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1968 - Nari Hira sets up Creative Unit - India wins the bid for the Asian Advertising Congress 1969 - Sylvester daCunha left Stronach's to run ASP; later sets up daCunha Associates 1970 - Frank Simoes sets up Frank Simoes Associates
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The problematic seventies
1970-1978 - National Readership Studies provided relevant data on consumers' reading habits 1970 - Concept of commercial programming accepted by All India Radio - Hasan Rezavi gives the very first spot on Radio Ceylon 1971 - Benson's undergo change in name to Ogilvy, Benson & Mather 1972 - Western Outdoor Advertising Pvt Ltd (WOAPL) introduces first closed circuit TV (CCT) in the country at the race course in Mumbai 1973 - RK Swamy/BBDO established 1974 - MCM goes out of business - Arun Nanda & Ajit Balakrishnan set up Rediffusion 1975 - Ravi Gupta sets up Trikaya Grey 1976 - Commercial Television initiated 1978 - First television commercial seen 1979 - Ogilvy, Benson & Mather's name changes to Ogilvy & Mather
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Glued to the television in the eighties
1980 - Mudra Communications Ltd set up - King-sized Virginia filter cigarette enters market with brand name of 'Charms' 1981 - Network, associate of UTV, pioneers cable television in India 1982 - The biggest milestone in television was the Asiad '82 when television turned to colour transmission - Bombay Dyeing becomes the first colour TV ad - 13th Asian Advertising Congress in New Delhi - Media planning gets a boost 1983 - Maggi Noodles launched to become an overnight success - Canco Advertising Pvt. Ltd. founded - Manohar Shyam Joshi's Hum Log makes commercial television come alive - Mudra sponsors first commercial telecast of a major sporting event with the India-West Indies series 1984 - Hum Log, Doordarshan's first soap opera in the colour era is born - Viewers still remember the sponsor (Vicco) of Yeh Jo Hai Zindagi! 1985 - Mudra makes India's first telefilm, Janam 1985-86 - 915 new brands of products and services appearing on the Indian Market BPCBA/TY/CP/2012-13 | 23
1986 - Sananda is born on July 31. The Bengali magazine stupefies India by selling 75,000 copies within three hours of appearing on the newsstands. - Mudra Communications creates India's first folk-history TV serial Buniyaad. Shown on DD, it becomes the first of the mega soaps - Price quality positioning of Nirma detergent cakes boost sales 1988 - AAAI's Premnarayan Award instituted 1989 - Advertising Club Bombay begins a biennial seminar called 'Advertising that Works' - Advertising & Marketing (A&M) magazine launched
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Tech savvy in the nineties
1990 - Marks the beginning of new medium Internet - Agencies open new media shops; go virtual with websites and Internet advertising - Brand Equity (magazine) of The Economic Times is born 1991 - First India-targetted satellite channel, Zee TV starts broadcast - Close on the throes of the Gulf War enters STAR (Satellite Transmission for Asia Region) 1992 - Spectrum, publisher of A&M, constitutes its own award known as 'A&M Awards' - Scribes and media planners credit The Bold And The Beautiful serial on STAR Plus channel as a soap that started the cultural invasion 1993 - India's only advertising school, MICA (Mudra Institute of Communications Ahmedabad), is born - Tara on Zee TV becomes India's first female-centric soap 1995 - Advertising Club of Bombay calls its awards as Abby - Country's first brand consulting firm, SABRE (Strategic Advantage for Brand Equity) begins operations 1996 - The ad fraternity hits big time for the first time by bagging three awards at the 43rd International Advertising Festival, Cannes - Sun TV becomes the first regional TV channel to go live 24 hours a day on all days of the week
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1997 - Media boom with the growth of cable and satellite; print medium sees an increase in titles, especially in specialized areas - Government turns towards professional advertising in the private sector for its VDIS campaigns - Army resorts to the services of private sector agencies - Advertising on the Internet gains popularity - Equitor Consulting becomes the only independent brand consultancy company in the country - Several exercises in changing corporate identity - For the first time ever, Indians stand the chance of winning the $ 1million booty being offered by Gillette as part of its Football World Cup promo 1998 - Events assume important role in marketing mix - Rise of software TV producers banking on ad industry talent - Reinventing of cinema -advertising through cinema begins 1998 - Lintas becomes Ammirati Puri Lintas (APL) 1999 - B2B site agencyfaqs.com launched on September 28, 1999 - The Advertising Club Bombay announces the Ad Works Trophy
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In the new millennium
2000 - Mudra launches magindia.com - India's first advertising and marketing Gallery - Lintas merges with Lowe Group to become Lowe Lintas and Partners (LLP) - bigideasunlimited.com - a portal offering free and fee ideas for money launched by Alyque Padamsee and Sam Mathews - Game shows like Kaun Banega Crorepati become a rage; media buying industry is bullish on KBC - Kyunki Saas Bhi Kabhi Bahu Thi marks the return of familyoriented soap on TV - French advertising major Publicis acquires Maadhyam 2001 - Trikaya Grey becomes Grey Worldwide - Bharti's Rs 2.75-crore corporate TV commercial, where a baby girl is born in a football stadium, becomes the most expensive campaign of the year 2002 - Lowe Lintas & Partners rechristened Lowe Worldwide - For the first time in the history of HTA, a new post of president is created. Kamal Oberoi is appointed as the first president of HTA
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Advertising Companies
Advertising is a big business in this era in India. Indian Advertising industry has witnessed a prominent globalization. With the inception of various divisions, the advertising industry has undergone a sea change. Indian consumer's deepening pocket and blooming markets for ad-spends have touched new heights in India. The Indian Advertising Companies are creating stories and brand experiences in a way that engages and involves.
Top Advertising Companies of India:
Ogilvy and Mather: This is one of the leading advertising companies in India. This organization believes that devotion to the brand defines the profile of their company. This company has offices across the globe. The objective of the company is to build brands. I t is a subsidiary of WPP Group plc. The headquarter of the company is in New York. J Walter Thompson India: One of the most popular companies in the advertising industry is J Walter Thompson India. Their objective is to make advertising a part of the life of the consumers. This is also world's best advertising brand with about 200 offices in 90 countries. This company is the first one to introduce pioneer careers in ad for women, sex-appeal ads and also produced the first ever sponsored -TV program. Mudra Communication Pvt. Ltd: This is one of the renowned advertising companies of India. This advertising organization was founded in the year 1980 at Mumbai. Recently the Ad company declared the addition of public relations, rural marketing, events etc. The head office of the company is in Bombay Area.
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FCB-Ulka Advertising Ltd: One of the best companies in India in the advertising arena is FCB-Ulka Advertising Ltd. In US, this advertising company ranks third and tenth in the world having about 188 offices in 102 countries. Their aim is to reflect the needs of the brand and not the personality of the brand. It has about 500 professionals and no prima donnas. Rediffusion-DY&R: This Advertising Company of India has made a benchmark in the field of creativity. India's 5th largest advertising company is Rediffusion. This advertising agency offers a wide array of integrated pr services for external and internal communications. The primary strength of the company lies in the media relations. McCann-Erickson India Ltd: The prominent name among the best advertising companies of India is McCann-Erickson India Ltd. They define work in relation to the impact that advertising has on the lives of masses. The testimony of the company in which it firmly believes is the campaign of Coca -cola-'Thanda Matlab Coca Cola'. RK Swamy/BBDO Advertising Ltd: It maintained the record of remaining consistently among the top ten advertising agencies in India. Established in 1973, this advertising reached great heights. This is also India's No.1 research company in the market sector and is fully run by Indians. Brand Equity is an integral part of the company. Grey Worldwide (I) Pvt. Ltd: A significant name in India in the world of advertising agencies is Grey Worldwide (I) Pvt Ltd.The company is primarily based in Mumbai and has offices in Kolkata, Ahmedabad, Bangalore and New Delhi. It is a subsidiary of Grey Worldwide. The company specializes in advertising and marketing services.
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Leo Burnett India Pvt. Ltd : It has a significant presence in about 96 offices in 10 countries. This advertising agency was awarded the 'Worldwide Agency of the Year' in 2004.They are proficient in explaining how a single image is worth thousand words and can break the barriers of language but not at the cost of the ad's emotional power. Contract Advertising India Ltd:
This advertising company of India is one of the leading advertising agencies in India. It is one-to-one customer lifecycle management advertising agency. It was founded in 1992 and is situated in Mumbai. It offers a wide range of services like online marketing and strategy and many others.
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CHAPTER 2 FAST FOOD INDUSTRY
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What is Fast Food?
Fast food is the term given to food that can be prepared and served very
quickly. While any meal with low preparation time can be considered to be fast food, typically the term refers to food sold in a restaurant or store with low quality preparation and served to the customer in a packaged form for take-out/take-away. The term "fast food" was recognized in a dictionary by Merriam–Webster in 1951 Outlets may be stands or kiosks, which may provide no shelter or seating, or fast food restaurants (also known as quick service restaurants). Franchise operations which are part of restaurant chains have standardized foodstuffs shipped to each restaurant from central locations. The capital requirements involved in opening up a fast food restaurant are relatively low. Restaurants with much higher sit-in ratios, where customers tend to sit and have their orders brought to them in a seemingly more upscale atmosphere may be known in some areas as fast casual restaurants.
> A Big Mac meal with French fries and Coca-Cola served at a McDonald's.
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On the go
Fast food outlets are take-away or take-out providers, often with a "drivethrough" service which allows customers to order and pick up food from their cars; but most also have a seating area in which customers can eat the food on the premises. Nearly from its inception, fast food has been designed to be eaten "on the go", often does not require traditional cutlery, and is eaten as a finger food. Common menu items at fast food outlets include fish and chips, sandwiches, pastas, hamburgers, fried chicken, French fries, chicken nuggets, tacos, pizza, hot dogs, and ice cream, although many fast food restaurants offer "slower" foods like chili, mashed potatoes, and salads.
>McDonald's first two-lane drive-through was at the Rock N Roll McDonald's in Chicago.
Cuisine
Modern commercial fast food is often highly processed and prepared in an industrial fashion, i.e., on a large scale with standard ingredients and standardized cooking and production methods. It is usually rapidly served in cartons or bags or in a plastic wrapping, in a fashion which minimizes cost. In most fast food operations, menu items are generally made from processed ingredients prepared at a central supply facility and then shipped to individual outlets where they are reheated, cooked (usually by microwave or deep frying) or assembled in a short amount of time. This process ensures a consistent level of product quality, and is key to being able to deliver the order quickly to the customer and eliminate labor and equipment costs in the individual stores.
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Because of commercial emphasis on speed, uniformity and low cost, fast food products are often made with ingredients formulated to achieve a certain flavor or consistency and to preserve freshness.
Globalization
>McDonald's in Moscow.
In 2006, the global fast food market grew by 4.8% and reached a value of 102.4 billion and a volume of 80.3 billion transactions. In India alone the fast food industry is growing by 40% a years. McDonald's is located in 120 countries and on 6 continents and operates over 31,000 restaurants worldwide. On January 31, 1990 McDonald’s opened a restaurant in Moscow, and broke opening day records for customers served. The Moscow restaurant is the busiest in the world. The largest McDonald’s in the world is located in Beijing, People's Republic of China. There are numerous other fast food restaurants located all over the world. Burger King has more than 11,100 restaurants in more than 65 countries. KFC is located in 25 countries. Subway is one of the fastest growing franchises in the world with approximately 31,129 restaurants in 90 countries as of May 2009, the first non-US location opening in December 1984 in Bahrain.] Pizza Hut is located in 26 countries, with 100 locations in China. Taco Bell has 278 restaurants located in 12 countries besides the United States.
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Fast Food Advertising
Fast Food advertising is the promotion of fast food products and ventures through a variety of media. Fast food advertising campaigns are not as highly regulated as some other products, such as those imposed on alcohol advertising, but there are often public calls for their promotion to be minimized.
Campaign intentions
Advertising campaigns for fast food restaurants have changed in their intent over time. Many modern campaigns stress the availability of healthy options after years of criticism for the harmful effects of a fast food diet. The rise in awareness of healthy eating and obesity has negatively impacted the business of these establishments, and their marketing campaigns have attempted to rectify this.
Target audience
Some fast food chains target their advertising at children and students - an important market for them. McDonald's Happy Meals are one example, which includes a toy often tied in with a newly-released children's film. Ronald McDonald, first introduced in 1963, is a clown-like advertising mascot designed to appeal to young children. From 1996, Disney was an exclusive partner with McDonald's, linking their products together. They announced the end of this deal in May 2006, with some reports saying that Disney was worried about childhood obesity McDonald's has since been in talks with rival animation studios.
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Sponsorship
Sport
Several international fast food companies have sponsored sporting events, teams and leagues. McDonald's is one of the largest sponsors, having affiliations with the NHL, Olympic Games, and the FIFA World Cup. Several companies, including McDonald's, Burger King and Pizza Hut, have a history of sponsoring NASCAR teams.
Television
Some fast food companies sponsor television programmes. Domino's Pizza has sponsored Sky One's screenings of The Simpson’s in the UK for many years (But reported because of new regulation on advertising that the deal may end). In 2005 Pizza Hut sponsored the same program when it was shown on Channel 4 – the Sky/Domino's deal continued.
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Methods of Advertising
>Neighboring fast food restaurant advertisement signs in Bowling Green, Kentucky
Common methods of advertising include:
Television commercial campaigns Print media campaigns Billboard campaigns Event Sponsorship (sporting events and others) Product placement in films and television programs Various forms of branding, including clothing Direction signs and posters, telling people how far the restaurant is.
In February 2005 McDonald's used a viral marketing campaign during Super Bowl XXXIX - the Lincoln Fry. Two Pizza Hut marketing ploys have involved spaceflight. In 2001 they were the first to deliver pizzas to outer space when their vacuum-sealed food arrived at the International Space Station, just a year after agreeing a deal to have a 30-foot Pizza Hut logo placed on the side of an unmanned rocket.
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Television Commercials
A Television Advertisement or Television Commercial (often just commercial, advertisemnts or ad-film (India)) is a span of television programming produced and paid for by an organization that conveys a message. Advertisement revenue provides a significant portion of the funding for most privately owned television networks. The vast majority of television advertisements today consist of brief advertising spots, ranging in length from a few seconds to several minutes (as well as program-length infomercials). Advertisements of this sort have been used to sell every product imaginable over the years, from household products to goods and services, to political campaigns.
Print Media
Printing is a process for reproducing text and image, typically with ink on paper using a printing press. It is often carried out as a large-scale industrial process, and is an essential part of publishing and transaction printing.
Billboard
A Billboard is a large outdoor advertising structure (a billing board), typically found in high traffic areas such as alongside busy roads. Billboards present large advertisements to passing pedestrians and drivers. Typically showing large, ostensibly witty slogans, and distinctive visuals, billboards are highly visible in the top designated market areas. Bulletins are the largest, most impactful standard-size billboards. Located primarily on major highways, expressways or principal arterials, they command high-density consumer exposure (mostly to vehicular traffic). Bulletins afford greatest visibility due not only to their size, but because they allow creative "customizing" through extensions and embellishments. Billboards are a great place to advertise business because rather than you having to find your customers, your customers will find your advertising. Posters are the other common form of billboard advertising, located chiefly in commercial and industrial areas on primary and secondary arterial roads. Posters are a smaller format than bulletins and are viewed principally by residents and commuter traffic, with some pedestrian exposure.
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Brand
A Brand is a name or trademark connected with a product or producer. Brands have become increasingly important components of culture and the economy, now being described as "cultural accessories and personal philosophies".
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Fast food advertising up by 22%
The European Commission may be planning to ban junk food ads to tackle obesity problems; in India advertising by fast food outlets is on the rise. Advertising by fast-food outlets in India went up 22% on television in 2004 over the previous year. Combined ad spends by fast-food outlets went up to Rs 33.3 crore last year, against Rs 27.3 crore in 2003. Individually, McDonald’s topped spends on TV last year, with 47% of the overall fast food advertising pie, followed by Tricon (which owns the Pizza Hut chain) at 32%. Domino’s came third with 16% spends, followed by Smokin’ Joe’s (3%) and Subway (1%). In the print medium, McDonald’s led advertising for fast food outlets with a 28% share. Tricon was ranked second with 23% share and the homegrown Pizza Corner came third with 9% advertising. Subway (8%) and KFC (7%) followed as the fourth and fifth largest advertisers. Junk food advertising, directed at children specially, is under severe pressure in Western countries. The European Union has issued warnings to food firms to stop advertising junk food to children, stating that either the industry should apply self-regulation or face legislation. However, in India, the organised fast food industry is only about one decade old, and firms are still in expansion phase. "Compared to countries in the west, and even China and Singapore, in India chains like McDonald’s, Pizza Hut and Domino’s are very small — both in terms of number of stores and profitability. India is an emerging market for this industry, and firms want to create consumer pull through advertising," said an industry official. A recent global AC Nielsen study on foods and beverages points out that Indians eat more snacks, chips, juices, biscuits and noodles than their global counterparts. According to the study, while foods and beverages grew 5% in India, the global average rate of growth was 4% across global markets.
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CHAPTER 3 TOP FAST FOOD OUTLETS
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McDonald's
McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving nearly 47 million customers daily. At one time it was the largest global restaurant chain; it has since been surpassed by multibrand operator Yum! (KFC, Taco Bell and others) and sandwich chain Subway. Each McDonald's restaurant is operated by a franchisee, an affiliate, or the corporation itself. The corporations' revenues come from the rent, royalties and fees paid by the franchisees, as well as sales in company-operated restaurants. McDonald's revenues grew 27% over the three years ending in 2007 to $22.8 billion, and 9% growth in operating income to $3.9 billion. McDonald's primarily sells hamburgers, cheeseburgers, chicken products, French fries, breakfast items, soft drinks, milkshakes, and desserts. In response to obesity trends in western nations and in the face of criticism over the healthiness of its products, the company has modified its menu to include such healthier alternatives as salads, wraps and fruit.
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History
>"Speedee" The business began in 1940, with a restaurant opened by brothers Dick and Mac McDonald in San Bernardino, California. Their introduction of the "Speedee Service System" in 1948 established the principles of the modern fast-food restaurant. The original mascot of McDonald's was a man with a chef's hat on top of a hamburger shaped head whose name was "Speedee." Speedee was eventually replaced with Ronald McDonald in 1963. The first McDonald's restaurants opened in the United States, Canada, Costa Rica, Japan, the Netherlands, Germany, Australia, France, El Salvador and Sweden in order of openings.
The present corporation dates its founding to the opening of a franchised restaurant by Ray Kroc, in Des Plaines, Illinois on April 15, 1955, the ninth McDonald's restaurant overall. Kroc later purchased the McDonald brothers' equity in the company and led its worldwide expansion and the company became listed on the public stock markets in 1965. Kroc was also noted for aggressive business practices, compelling the McDonald brothers to leave the fast food industry. The McDonald brothers and Kroc feuded over control of the business, as documented in both Kroc's autobiography and in the McDonald brothers' autobiography. The site of the McDonald brothers' original restaurant is now a monument. With the expansion of McDonald's into many international markets, the company has become a symbol of globalization and the spread of the American way of life. Its prominence has also made it a frequent topic of public debates about obesity, corporate ethics and consumer responsibility.
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Products
McDonald's predominantly sells hamburgers, various types of chicken sandwiches and products, French fries, soft drinks, breakfast items, and desserts. In most markets, McDonald's offers salads and vegetarian items, wraps and other localized fare. Portugal is the only country with McDonald's restaurants serving soup. This local deviation from the standard menu is a characteristic for which the chain is particularly known, and one which is employed either to abide by regional food taboos (such as the religious prohibition of beef consumption in India) or to make available foods with which the regional market is more familiar (such as the sale of Mc Rice in Indonesia).
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Global operations
>Countries with McDonald's stores McDonald's has become emblematic of globalization, sometimes referred to as the "Mc Donaldization" of society. The Economist magazine uses the "Big Mac Index": the comparison of a Big Mac's cost in various world currencies can be used to informally judge these currencies' purchasing power parity. Scandinavian countries lead the Big Mac Index with four of the five most expensive Big Mac's. Norway has the most expensive Big Mac in the world as of July 2008, whilst the cheapest country is Malaysia. Thomas Friedman once said that no country with a McDonald's had gone to war with another. However, the "Golden Arches Theory of Conflict Prevention" is not strictly true. Careful historians point to the 1989 United States invasion of Panama, NATO's bombing of Serbia in 1999, the 2006 Lebanon War, and the 2008 South Ossetia War as exceptions. Some observers have suggested that the company should be given credit for increasing the standard of service in markets that it enters. A group of anthropologists in a study entitled Golden Arches East looked at the impact McDonald's had on East Asia and Hong Kong in particular. When it opened in Hong Kong in 1975, McDonald's was the first restaurant to consistently offer clean restrooms, driving customers to demand the same of other restaurants and institutions. In East Asia in particular, McDonald's have become a symbol for the desire to embrace Western cultural norms. McDonald's have recently taken to partnering up with Sinopec, China's second largest oil company, in the People's Republic of China, as it begins to take advantage of China's growing use of personal vehicles by opening numerous drive-thru restaurants.
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McDonald's advertising
"I'm lovin' it" redirects here. For the Justin Timberlake single, see I'm Lovin' It. McDonald's has for decades maintained an extensive advertising campaign. In addition to the usual media (television, radio, and newspaper), the company makes significant use of billboards and signage, sponsors sporting events ranging from little League to the Olympic Games, and makes coolers of orange drink with their logo available for local events of all kinds. Nonetheless, television has always played a central role in the company's advertising strategy. To date, McDonald's has used 23 different slogans in United States advertising, as well as a few other slogans for select countries and regions. At times, it has run into trouble with its campaigns.
History
There have been many McDonald's advertising campaigns and slogans over the years. The company is one of the most prevalent fast food advertisers. McDonald's Canada's corporate website states that the commercial campaigns have always focused on the "overall McDonald's experience", rather than just product. The purpose of the image has always been "portraying warmth and a real slice of every day life.‖ Its TV ads, showing various people engaging in popular activities, usually reflect the season and time period. Finally, they have never in their advertising history used negative or comparison ads pertaining to any of their competitors; the ads have always focused only on McDonalds alone.
Slogan
India I'm lovin' it (1989-present)
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Current campaign
i'm lovin' it is an international branding campaign by McDonald's Corporation. It was created by Heye & Partner, a longtime McDonald's agency based in Unterhaching, Germany, near Munich, and a member of the DDB Worldwide Communications Group, Inc. It was the company's first global advertising campaign and was launched in Munich, Germany on September 2, 2003, under the German title ich liebe es. The English part of the campaign was launched on September 29, 2003 with the music of Tom Batoy and Franco Tortora (Mona Davis Music) and vocals by Justin Timberlake, in which the slogan appears. In 2007, after a public casting call which received 15,000 submissions, McDonald's selected 24 people to appear as part of the campaign. Images of those chosen, who had submitted a story and digital photograph which "capture[d] ... themes of inspiration, passion and fun," appear on McDonald's paper bags and cups worldwide. In Spring/summer 2008, McDonald's underwent the first phase of their new image and slogan: 'What we're made of.' This was to promote how McDonald's products are made. Packaging was tweaked a little to feature this new slogan. In fall 2008, McDonald's introduced new packaging, eliminating the previous design stated above with new, inspirational messages, the "I'm lovin it" slogan. (Appearing only once on most packages). McDonald's also updated their menu boards with darker, yet warmer colors, more realistic photos of the products featured on plates and the drinks in glasses. In 2009 they expect to have this entire nation wide.
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Subway
Subway is a fast food franchise that primarily sells submarine sandwiches, salads and single dish pizzas. It is owned and operated by Doctor's Associates, Inc. (DAI). Subway is one of the fastest growing franchises in the world with approximately 31,697 restaurants in 91 countries as of September 2009. It is the largest single-brand restaurant chain globally and is the second largest restaurant operator globally after Yum! Brands (35,000 locations) Subway's main operations office is in Milford, Connecticut, and five regional centers support Subway's growing international operations. The regional offices for European franchises are located in Amsterdam, Netherlands. Australia and New Zealand are supported from Brisbane, Australia, the Middle Eastern locations are supported from offices located in Beirut, Lebanon, the Asian locations from Singapore, and the Latin America support center is in Miami, Florida. In the UK and Ireland the company hopes to expand to 2,010 restaurants by the year 2010. Many restaurant analysts attribute Subway's fast growth to the growing concern on health by restaurant customers, a trend that Subway has taken advantage of in its marketing. In 1999, an Indiana University student named Jared Fogle lost 245 pounds (110 kg) with a diet made up mostly of Subway
BPCBA/TY/CP/2012-13 | Subway's main operations office is in Milford, 48 Connecticut, and five regional centers support Subway's growing international operations. The regional offices for European franchises are located in Amsterdam, Netherlands. Australia and New Zealand are suppo
sandwiches combined with exercise. The story is used by Subway as a large part of their marketing campaign to this day...
Products
A Sub Sandwich
A 6-inch ham sandwich
Subway's main product is the submarine sandwich, or "Sub". Many stores also offer Cookies, muffins, and Danishes which may be purchased in a variety of flavors. In 2001, Subway added seasoned breads and a line of specialty items to its menu and in 2003, most Subway markets switched their beverage contracts to supply Coca-Cola products exclusively, having previously left it up to the individual market to decide whether to serve Coke or Pepsi. In order to ink the current deal with Coca-Cola, Coca-Cola helped pay for the initial rollout of toaster ovens to all existing restaurants in North America. Subway gave customers the option to have their sandwiches toasted in response to increased competition from a rival sandwich chain, Quiznos, which popularized toasted submarine sandwiches. In Australia, the introduction of Fresh Toasting enabled the Subway Franchise to prevent Quiznos from gaining market share. The Turbo Chef and Merry chef toaster ovens are a microwave and convection oven hybrid. The deal with Coca-Cola led to Quiznos switching to Pepsi chain wide, except in Canada. One of the chain's best-known sandwiches is the BMT, which originally stood for Brooklyn Manhattan Transit, but now stands for Biggest, Meatiest, and Tastiest. The sandwich contains salami, pepperoni and ham. BPCBA/TY/CP/2012-13 | Many restaurant analysts attribute Subway's fast 49 growth to the growing concern on health by restaurant customers, a trend that Subway has taken advantage of in its marketing. In 1999, an Indiana University student named Jared Fogle lost 245 pounds (110 kg)
As of 2004, it was Subway's most popular cold sandwich in the United Kingdom. In 2006, the first kosher Subway restaurant in the United States opened in a suburb of Cleveland, Ohio. Subway spokesman Jared Fogle was in attendance at the opening. "With slight modifications, such as no porkbased products, and the use of soy-based cheese, the menu is virtually identical to that of any other Subway restaurant.‖ Since then, kosher Subways have opened in New York, Los Angeles, Kansas City, and Baltimore, as well as Livingston, NJ, and plans have been announced for Milwaukee, Boston, and one inside the JCC in West Bloomfield, Michigan, a suburb of Detroit. Some of these locations serve soy cheese, but most don't serve any form of cheese at all. All Subway restaurants in Muslim countries serve a halal menu. There are also at least two Subway restaurants in the United States that do the same, three in Canada, and a growing number in the United Kingdom. The success of these stores has been mixed, but the company will open more halal stores.
Subway also offers items other than sandwiches; breakfast items include such baked goods as bagels, egg & sausage sandwiches, and as of July and August 2006, "personal pizzas" are available in select markets to their menu. The personal pizzas are made upon order (as with their sandwiches) and heated "in less than 90 seconds" (cooking for 85 seconds) as advertised on televised commercials. Breakfast and pizza items are only available in some stores. Most stores offer additional toppings upon request.
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Global locations
Subway is present in 91 countries and territories 31751 Restaurants in 91 Countries
BPCBA/TY/CP/2012-13 | Many restaurant analysts attribute Subway's fast 51 growth to the growing concern on health by restaurant customers, a trend that Subway has taken advantage of in its marketing. In 1999, an Indiana University student named Jared Fogle lost 245 pounds (110 kg)
Subway Advertising
Subway uses the advertising slogan "Eat Fresh" to explain how every sandwich is made on freshly baked bread, using fresh ingredients, in front of the customer to their exact specification, by employees who Subway terms "Subway Sandwich Artists". BPCBA/TY/CP/2012-13 | Many restaurant analysts attribute Subway's fast 52 growth to the growing concern on health by restaurant customers, a trend that Subway has taken advantage of in its marketing. In 1999, an Indiana University student named Jared Fogle lost 245 pounds (110 kg)
In 2008, Subway began to offer "Five Dollar Foot-long" submarine sandwiches in the United States as a limited time only promotion. Customer response prompted Subway to make a "Five Dollar Foot-long Everyday Value Menu" that includes 8 foot long sandwiches (Spicy Italian, Cold Cut Combo, Tuna, BLT, Black Forest Ham, Meatball, Veggie Delite & Oven Roasted Chicken) a permanent menu item.] The jingle from the commercials advertising Five Dollar Foot-longs has gained some popularity. In 2009, Subway brought back the "Five Dollar Foot-Long" sandwiches for a limited time. These sandwiches included every sub excluding Double Meat and Premium subs. In November 2007, Subway's US commercials featured the Peter Griffin character from Family Guy in which he extols the virtues of its new Subway Feast sandwich. 31751 Restaurants in 91 Countries Subway has also used instant win competitions based on the game Scrabble as promotional tools. Subway also notably has a product placement television advertisement campaign for the US series Chuck, ongoing since its first season. As ratings dwindled in the second season, a campaign to "save Chuck" was launched by fans, which involves purchasing a foot-long sandwich from Subway on April 27, 2009, the date of the season finale. Tony Pace, Subway's marketing officer, reportedly called it the best product placement the restaurant chain has done "in several years."
Slogans
"Eat Fresh", first used in 2000 is the Subway chain's current worldwide slogan. Past slogans and regional variations include:
"When You're Hungry, Make Tracks for Subway" (1979-1985) "My Way" (1985–1990) "The Place Where Fresh is the Taste" (1990–1995) "What a Sandwich" (1994–1995) "Right Before Your Eyes" (1995-96) "The Way A Sandwich Should Be" (1996–2000) "Eat Fresh." (2001-present) "Choose Well." (2004–present) "I feel good" (2009-present in Australia/New Zealand) "You can have it my way, or Subway" (2005-present in Edinburgh SAS)
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"Subway, Where Winners Eat" (2009-present, During the 2009 Little League World Series) "We've Got A Sub For That" (2009 in the UK and Ireland)
Pizza Hut
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Pizza Hut is an American restaurant chain and international franchise based in Addison, Texas (a northern suburb of Dallas), offering different styles of pizza along with side dishes including pasta, buffalo wings, breadsticks, and garlic bread. Pizza Hut is a subsidiary of Yum! Brands, Inc., the world's largest restaurant company, with approximately 34,000 restaurants, delivery-carry out units, and kiosks in 100 countries.
History
The chain was founded in 1958 by Dan and Frank Carney. The Original Pizza Hut building was later relocated to the Wichita State University campus. Additional restaurants were opened, with the first franchise unit BPCBA/TY/CP/2012-13 | Pizza Hut 55
opening in 1959 in Topeka, Kansas. At the same time Pizza Hut was growing in and around Kansas, Shakey's Pizza was developing a stronghold along the West Coast. The competition provided Pizza Hut the impetus to evaluate its mission and direction. Dan and Frank Carney saw Shakey's expanding into their territory and realized that they needed to determine if Pizza Hut should be in the entertainment business or if it should be a neighborhood pizza restaurant. They decided to stick with the neighborhood business and realized that they needed to have a good standard image. The Carney brothers began to systematize operations and building designs to counter the competition from Shakey's. The franchise network continued to grow through friends and business associates, and by 1964 a unique standardized building appearance and layout was established for franchised and company-owned stores, creating a universal look that customers easily recognized. By 1972, with 314 stores nationwide, Pizza Hut went public on the New York Stock Exchange under the stock ticker symbol PIZ. In 1977, Pizza Hut was acquired by Pepsico, who later also bought KFC and Taco Bell. In 1997, the three restaurant chains were spun off into Tricon, and in 2002 joined with Long John Silver's and A&W Restaurants to become Yum! Brands. The oldest continuously operating Pizza Hut in the world is in Manhattan, Kansas, in a shopping and tavern district known as Aggieville near Kansas State University.
> Pizza Hut's prototype version of a restaurant (1950–1961). This was only used at four prototype Pizza Hut locations. There are only a few menu items on this version.
Products
Pizza Hut sells pizzas in four different sizes: personal (an individual serving), small, medium and large, though most stores have done away BPCBA/TY/CP/2012-13 | Pizza Hut 56
with the small size. A variety of toppings are available, plus "specialty" styles, including Meat Lovers, Pepperoni Lovers, Cheese Lovers, Veggie Lovers, Double Cheeseburger, Supreme, Super Supreme and the newly introduced Pizza Mia. The pan pizza has a thicker crust than most other commercially available pizzas. Pizza Hut also sells Stuffed Crust pizza, with the outermost edge wrapped around a coil of mozzarella cheese; Hand-Tossed, more like traditional pizzeria crusts; Thin 'N Crispy, a thin, crispy dough which was Pizza Hut's original style; Dipping' Strips pizza, a pizza cut into small strips that can be dipped into a number of sauces; and The Edge pizza, where the toppings nearly reach to the edge of the pizza. There was also formerly a crust that was not as thick as Pizza Hut's pan pizza, and not as thin as its thin crust. This crust was used on the Full House XL pizza and discontinued in 2007. In addition to pizza, also sold is garlic cheese bread (not in all locations), plus a number of side dishes including bread sticks, cheese sticks, cinnamon sticks, mozzarella sticks, onion rings, chicken wings (some stores have integrated with another chain known as WingStreet which offers a wide variety, such as Buffalo Burning Hot, Buffalo Medium, Buffalo Mild, Honey BBQ, Spicy BBQ, Garlic Parmesan, Cajun, Spicy Asian) boneless wings, chicken munchers, jalapeño poppers, Quepapas (potato bites filled with cheese and jalapeño flavor),a basket of taters or tater tots and fried apple pies. Depending on the individual restaurant size, Pizza Huts also may offer pasta dinners such as spaghetti and Cavatina – a mixture of Cavatelli (shells), Rotini (spirals), and Rotelle (wheels).
Pizza Hut Advertising
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Pizza Hut's very first ad was "Putt Putt to Pizza Hut". It starts with a man apparently ordering take-out and driving his 1965 Mustang JR to Pizza Hut, while some of the townspeople start chasing him. He picks up his pizza and goes to his house, when all of the people who were chasing him start eating all the pizza except the man who ordered it. Frustrated, he calls Pizza Hut again. Until early 2007, Pizza Hut's main advertising slogan was "Gather 'round the good stuff", and is currently "Now You're Eating!". Pizza Hut does not have an official international mascot, but at one time, there were commercials in the United States called 'The Pizza Head Show.' These commercials ran from 1993 to 1997 and were based loosely on the Mr. Bill shorts from Saturday Night Live in the 1970s. The ads featured a slice of pizza with a face made out of toppings called 'Pizza Head'. In the 1970s Pizza Hut used the signature red roof with a jolly man named "Pizza Hut Pete". Pete was on the bags, cups, balloons and hand puppets for the kids. In Australia during the Mid to late 1990s, the advertising mascot was a delivery boy named Dougie, with boyish good looks who, upon delivering pizza to his father, would hear the catchphrase "Here's a tip: be good to your mother". Early 2007 saw Pizza Hut move into several more interactive ways of marketing to the consumer. Utilizing mobile phone SMS technology and their My Hut ordering site, they aired several television commercials (commencing just before the Super Bowl) containing hidden words that viewers could type into their phones to receive coupons. Other innovative efforts included their "MySpace Ted" campaign, which took advantage of the popularity of social networking, and the burgeoning user-submission marketing movement via their Vice President of Pizza contest. Pizza Hut is also advertised in anime such as Code Geass and Darker Than Black, though in the translated versions of Code Geass the logo was removed, leaving only the red roof logo.
Pasta Hut
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Pasta Hut logo (2008–present)
On April 1, 2008, Pizza Hut in America sent emails to customers advertising that they now offer pasta items on their menu. The email (and similar advertising on the company's website) stated "Pasta so good we've changed our name to 'Pasta Hut'." The name change was a publicity stunt held in conjunction with April Fools' Day, extending through the month of April, with the company's Dallas headquarters changing its exterior logo to Pasta Hut. This name change was also used to promote the new Tuscani Pasta line and new Pizza Hut dine-in menu. The first Pasta Hut advertisement has the original Pizza Hut restaurant being imploded and recreated, but when they construct the new building, the sign saying "Pasta Hut" is placed on the building.
Australia
On January 19, 2009, Pizza Hut started a six-week online vote in Australia as to whether Pizza Hut should become Pasta Hut. They are also cobranding two stores with the Pasta Hut logo. Advertising for the new brand involved the production team creating a set of a restaurant called "Toscani's". As the TVC suggests, the diners in the fictional restaurant, complete with signage and secret recording equipment; the customers were unaware they were eating pasta from Pizza Hut.
Domino's Pizza
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Domino's Pizza, is an international' fast food pizza delivery corporation, whose headquarter is just outside Ann Arbor, Michigan, United States. It was founded by Tom Monaghan. There are currently about 8,500 corporate and franchised stores in all 50 states in 55 countries. It was the secondlargest pizza chain behind Pizza Hut in the United States when it went public in 2004 for just under $15 a share.
From a Game to an Famous Outlet Name ―Domino’s‖
History
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Early years
In 1960, Tom Monaghan and his brother, James, purchased Dominick’s, a small pizza store in Ypsilanti, Michigan. The deal was secured by a $75 down payment and the brothers borrowed $500 to pay for the store. Eight months later, James traded his half of the business to Tom for a used Volkswagen Beetle. As sole owner of the company Tom Monaghan, renamed the business Domino's Pizza, Inc. in 1965. In 1967, the first Domino's Pizza franchise store opened in Ypsilanti. Domino’s continued to grow and in 1978 opened its 200th store. In 1975, Domino's faced a lawsuit by Amstar Corporation, maker of Domino Sugar, alleging trademark infringement and unfair competition. On May 2, 1980, a federal appeals court found in favor of Domino's Pizza.
International expansion
On May 13, 1983, Domino's opened its first international store, in Winnipeg, Canada. That same year, Domino's opened its 1,000th store overall, and by 1995 Domino's had 1,000 international locations. In 1997, Domino's opened its 1,500th international location, opening seven stores per continent on consecutive days.
Sale of company
In 1998, after 38 years of ownership, Domino's Pizza founder Tom Monaghan announced his retirement and sold 93 percent of the company to Bain Capital, Inc. for about $1 billion and ceased being involved in dayto-day operations of the company. A year later, the company named David A. Brandon Chairman and Chief Executive Officer.
Current era
In 2001, Domino’s launched a two-year national partnership with the MakeA-Wish Foundation of America. That same year, the company's stores in New York City and Washington D.C. provided more than 12,000 pizzas to relief workers following the September 11 attacks on the World Trade Center and The Pentagon. Through a matching funds program, the corporation donated $350,000 to the American Red Cross' disaster relief effort.
Leading industry publication Pizza Today magazine named Domino’s Pizza "Chain of the Year" in 2003. That same year, Domino’s teamed up with BPCBA/TY/CP/2012-13 | Pizza Hut 61
NASCAR for a multi-year partnership to become the "Official Pizza of NASCAR." In 2004, after 44 years as a privately held company, Domino's Pizza rang the opening bell at the New York Stock Exchange and began trading common stock on the NYSE under the ticker symbol "DPZ". That year, Domino's also began its current partnership with St. Jude Children's Research Hospital, participating in the hospital's "Thanks and Giving" campaign since it began in 2004, raising more than $1.3 million in 2006. In a simultaneous celebration in 2006, Domino's opened its 5,000th U.S. store in Huntley, Illinois and its 3,000th international store in Panama City, making 8,000 total stores for the system. Also that year, the Domino's Pizza store in Tallaght, Dublin, Ireland, became the first in Domino's history to hit a turnover of $3 million (€2.35 million) per year. As of September 2006, it has 8,238 stores which totaled US$1.4 billion in gross income. In 2007, Domino's introduced its Veterans and Delivering the Dream franchising programs and also rolled out its online and mobile ordering sites.
Franchisees
>The exterior of a Domino's Pizza store in Spring Hill, Florida.
> A make line at a Domino's
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The rights to own, operate and franchise branches of the chain in Australia, New Zealand, France, Belgium, the Netherlands and the Principality of Monaco are currently owned by Domino's Pizza Enterprises, having been sold off by the parent company between 1993 and 2007. The master franchises for the UK and Ireland were purchased by Domino's Pizza Group in 1993.
Major franchises
Domino's Pizza Enterprises Domino's Pizza UK & IRL
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30 minute guarantee
Starting in 1973, Domino's Pizza had a guarantee that customers would receive their pizzas within 30 minutes of ordering, or they would receive the pizzas free. The guarantee was reduced to $3 off in the mid 1980s. In 1992, the company settled a lawsuit brought by the family of an Indiana woman who had been killed by a Domino's delivery driver, paying the family US$ 2.8 million. In 1993, Domino's settled another lawsuit; this one brought by a woman who was injured when a Domino's delivery driver ran a red light and rear-ended her. The woman was paid nearly US$ 80 million. The guarantee was dropped that same year because of the "public perception of reckless driving and irresponsibility", according to Monaghan. In December 2007 Domino's introduced a new slogan, "You Got 30," alluding to the earlier pledge but stopping short of promising delivery in a half hour. However, in Brazil, Chile, India, Indonesia, Lebanon, Mexico and Turkey, Domino's still guarantees delivery within 30 minutes, or the order is free but online orders are not available. In Israel, late delivery results in cash back on the spot anywhere from a fifth to half the price of the order (depending on the delay).
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Domino’s Pizza Advertising
In the 1980s, Domino's Pizza was well known for its advertisements featuring The Noid. That concept was created by Group 243 Inc. who then hired Will Vinton Studios to produce the television commercials that they created. The catch phrase associated with the commercials was "Avoid the Noid."
Due to a glitch on the Domino's website, the company gave away nearly 11,000 free medium pizzas in March 2009. The company had planned the campaign for December 2008 but dropped the idea and never promoted it. The code was never deactivated though and resulted in the free giveaway of the pies across the United States after someone discovered the promotion on the website by typing in the word "bailout" as the promotion code and then shared it with others on the Internet. Domino's deactivated the code on the morning of Tuesday, March 31, 2009 and promised to reimburse store owners for the pies.
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Global locations
>Dominos restaurant in Oaxaca de Juarez, Oaxaca, Mexico
>Domino's coloured motorcycles used for home delivery in Goa, India
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KFC
KFC Corporation, or KFC, founded and also known as Kentucky Fried Chicken, is a chain of fast food restaurants based in Louisville, Kentucky. KFC has been a brand and operating segment, called a "concept", of Yum! Brands since 1997 when that company was spun off from PepsiCo as Tricon Global Restaurants Inc. KFC primarily sells chicken in form of pieces, wraps, salads and sandwiches. While its primary focus is fried chicken, KFC also offers a line of roasted chicken products, side dishes and desserts. Outside North America, KFC offers beef based products such as hamburgers or kebabs, pork based products such as ribs and other regional fare. The company was founded as Kentucky Fried Chicken by Colonel Harland Sanders in 1952, though the idea of KFC's fried chicken actually goes back to 1930. The company adopted the abbreviated form of its name in 1991, Starting in April 2007, the company began using its original name, Kentucky Fried Chicken, for its signage, packaging and advertisements in the United States as part of a new corporate re-branding program; newer and remodeled restaurants will have the new logo and name while older stores will continue to use the 1980s signage. Additionally, Yum! Continues to use the abbreviated name freely in its advertising
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History
>The restaurant in North Corbin, Kentucky where Colonel Sanders developed Kentucky Fried Chicken
>World's first KFC in South Salt Lake, Utah, since replaced by a new KFC on the same site Born and raised in Henryville, Indiana, Sanders passed through several professions in his lifetime. Sanders first served his fried chicken in 1930 in the midst of the Great Depression at a gas station he owned in North Corbin, Kentucky. The dining area was named "Sanders Court & Café" and was so successful that in 1936 Kentucky Governor Ruby Laffoon granted Sanders the title of honorary Kentucky Colonel in recognition of his contribution to the state's cuisine. The following year Sanders expanded his restaurant to 142 seats, and added a motel he bought across the street. When Sanders prepared his chicken in his original restaurant in North Corbin, he prepared the chicken in an iron skillet, which took about 30 minutes to do, too long for a restaurant operation. In 1939, Sanders altered the cooking process for his fried chicken to use a pressure fryer, resulting in a greatly reduced cooking time comparable to that of deep frying. In 1940 Sanders devised what came to be known as his Original Recipe. The Sanders Court & Café generally served travelers, often those headed to Florida, so when the route planned in the 1950s for what would become Interstate 75 bypassed Corbin, he sold his properties and traveled the U.S. to sell his chicken to restaurant owners. The first to take him up on the offer was Pete Harman in South Salt Lake, Utah; together, they opened the first "Kentucky Fried Chicken" outlet in 1952. By the early 1960s Kentucky Fried Chicken was sold in over 600 franchised outlets in both the United States and Canada. One of the longest-lived franchisees of the older Col. Sanders' chicken concept, as opposed to the KFC chain, was the Kenny Kings chain. BPCBA/TY/CP/2012-13 | Pizza Hut 69
The company owned many Northern Ohio diner-style restaurants, the last of which closed in 2004. Sanders sold the entire KFC franchising operation in 1964 for $2 million USD Since that time, the chain has been sold three more times, most recently to PepsiCo, which made it part of its Tricon Global Restaurants division, which in turn was spun off in 1997, and has now been renamed to Yum! Brands. Additionally, Colonel Sanders' nephew, Lee Cummings, took his own Kentucky Fried Chicken franchises (and a chicken recipe of his own) and converted them to his own "spin-off" restaurant chain, Lee's Famous Recipe Chicken. Today, some of the older KFC restaurants have become famous in their own right. One such restaurant is located in Marietta, Georgia. This store is notable for a 56-foot (17 m) tall sign that looks like a chicken. The sign, known locally as the Big Chicken, was built for an earlier fast-food restaurant on the site called Johnny Reb's Chick, Chuck and Shake. It is often used as a travel reference point in the Atlanta area by locals and pilots.
The secret recipe
The Colonel's secret flavor recipe of 11 herbs and spices that creates the famous "finger lickin' good" chicken remains a trade secret. Portions of the secret spice mix are made at different locations in the United States, and the only complete, handwritten copy of the recipe is kept in a vault in corporate headquarters. On September 9, 2008, the one complete copy was temporarily moved to an undisclosed location under extremely tight security while KFC revamped the security at its headquarters. Before the move, KFC disclosed the following details about the recipe and its security arrangements:
The recipe, which includes exact amounts of each component, is written in pencil on a single sheet of notebook paper and signed by Sanders. The recipe was locked in a filing cabinet with two separate combination locks. The cabinet also included vials of each of the 11 herbs and spices used. Only two executives had access to the recipe at any one time. KFC refuses to disclose the names and titles of either executive. One of the two executives said that no one had come close to guessing the contents of the secret recipe, and added that the actual recipe would include some surprises.
On February 9, 2009, the secret recipe returned to KFC's Louisville headquarters in a more secure, computerized vault.
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In 1983, writer William Poundstone examined the recipe in his book Big Secrets. He reviewed Sanders' patent application, and advertised in college newspapers for present or former employees willing to share their knowledge. From the former he deduced that Sanders had diverged from other common fried-chicken recipes by varying the amount of oil used with the amount of chicken being cooked, and starting the cooking at a higher temperature (about 400 °F (200 °C)) for the first minute or so and then lowering it to 250 °F (120 °C) for the remainder of the cooking time. Several of Poundstone's contacts also provided samples of the seasoning mix, and a food lab found that it consisted solely of sugar, flour, salt, black pepper and monosodium glutamate (MSG). He concluded that it was entirely possible that, in the years since Sanders sold the chain, later owners had begun skimping on the recipe to save costs. Following his buyout in 1964, Colonel Sanders himself expressed anger at such changes, saying: "That friggin' ... outfit .... They prostituted every goddamn thing I had. I had the greatest gravy in the world and those sons of bitches they dragged it out and extended it and watered it down that I'm so goddamn mad.‖ Ron Douglas, author of the book "America's Most Wanted Recipes," also claims to have figured out KFC's secret recipe.
Products
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Packaging
The famous paper bucket that KFC uses for its larger sized orders of chicken and has come to signify the company was originally created by Wendy's restaurants founder Dave Thomas. Thomas was originally a franchisee of the original Kentucky Fried Chicken and operated several outlets in the Columbus, Ohio area. His reasoning behind using the paper packaging was that it helped keep the chicken crispy by wicking away excess moisture. Thomas was also responsible for the creation of the famous rotating bucket sign that came to be used at most KFC locations in the US.
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Menu items
This is a list of menu items sold at KFC.
Chicken
KFC's specialty is fried chicken served in various forms. KFC's primary product is pressure-fried pieces of chicken made with the original recipe. The other chicken offering, extra crispy, is made using a garlic marinade and double dipping the chicken in flour before deep frying in a standard industrial kitchen type machine. Kentucky Grilled Chicken - This marinated grilled chicken is targeted towards health-conscious customers. It features marinated breasts, thighs, drumsticks, and wings that are coated with the Original Recipe seasonings before being grilled. It has less fat, calories, and sodium than the Original Recipe fried chicken. Introduced in April 2009. KFC has two lines of sandwiches: its "regular" chicken sandwiches and its Snackers line. The regular sandwiches are served on either a sesame seed or corn dusted roll and are made from either whole breast fillets (fried or roasted), chopped chicken in a sauce or fried chicken strips. The Snackers line are value priced items that consist of chicken strips and various toppings. In the UK, Australia and New Zealand, sandwiches are referred to as "burgers"; there is the chicken fillet burger (a chicken breast fillet coated in an originalrecipe coating with salad garnish and mayonnaise) and a Zinger Burger (as with the former but with a spicier coating and salsa). Both BPCBA/TY/CP/2012-13 | Pizza Hut 74
of these are available as "tower" variants, which include a slice of cheese and a hash brown. A variety of smaller finger food products are available at KFC including chicken strips, wings, nuggets and popcorn chicken. These products can be ordered plain or with various sauces, including several types of barbecue sauces and buffalo sauce. They also offer potato wedges. Several pies have been made available from KFC. The Pot Pie is a savory pie made with chicken, gravy and vegetables. In the second quarter of 2006, KFC introduced its variation on Shepherd's pie called the Famous Bowl. Served in a plastic bowl, it is layered with mashed potatoes or rice, gravy, corn, popcorn chicken, and cheese, and is served with a biscuit. The bowl had been available at KFC's special test market store in Louisville since the third quarter of 2005. The KFC Twister is a wrap that consists of either chicken strips or roasted chicken, tomato, lettuce and (pepper) mayonnaise wrapped in a tortilla. In Europe, the Twister is sold in two varieties: 1) the Grilled Twister (chicked strips and 2) the Grilled Mexican twister/Spicy Toasted Twister (chicken breast supplemented by tortilla chips and salsa, adds only salsa to pepper mayonnaise.) KFC Fillers are a 9 in (23 cm) sub, available in four varieties over the summer period in Australia. Shish kebab - in several markets KFC sells kebabs.
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Other products
Coleslaw
In some international locations, KFC may sell hamburgers, pork ribs or fish. In the U.S., KFC began offering the Fish Snacker sandwich during Lent in 2006. The Fish Snacker consists of a rectangular patty of Alaskan Pollock on a small bun, and is the fifth KFC menu item in the Snacker category.
Three types of salads (which can be topped with roasted or fried chicken) are available at KFC: Caesar, house, and BLT salads (in the US). The Boneless Banquet Zinger Burger – A regular sized burger which regularly consists of a boneless fillet of hot and spicy chicken, lettuce and mayonnaise in a burger bun. Cheese, tomato, bacon and pineapple can be added upon request. Barbecue sauce can also replace/join the mayonnaise.
Parfait desserts – "Little Bucket Parfaits" in varieties such as Fudge Brownie, Chocolate Crème (once called the Colonel's Little Fudge
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Bucket), Lemon Crème and Strawberry Shortcake are available at most locations in the US. Sara Lee Desserts – Available in either Cookies and Cream Cheesecake or Choc Caramel Mousse
Sides
Other than fried chicken, many KFC restaurants serve side dishes like coleslaw, various potato-based items (including potato wedges, french fries and mashed potatoes with gravy), biscuits, baked beans, macaroni and cheese, macaroni salad, rice, steamed vegetables and corn on the cob.
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Discontinued products
The Colonel's Rotisserie Gold – This product was introduced in the 1990s as a response to the Boston Market chain's roasted chicken products, and a healthier mindset of the general public avoiding fried food. Purportedly made from a "lost" Col. Sanders recipe, it was sold as a whole roaster or a half bird. Tender Roast Chicken – This product was an off-shoot of 'The Colonel's Rotisserie Gold'. Instead of whole and half birds, customers were given quarter roasted chicken pieces. For a time, customers could request chicken "original", "Extra Tasty Crispy", or "Tender Roast". Chicken Little sandwich – a value oriented sandwich during the late 1980s and early 1990s. It was a small chicken patty with mayonnaise on a small roll, similar to White Castle's mini chicken sandwich. Extra Tasty Crispy (ETC) – Chicken much like the Extra Crispy served today, except ETC was prepared using chicken that had been soaking for 15 minutes in a special marinade machine. There is some speculation that the marinade may have been made with trans-fats, and KFC boasts to no longer use trans-fats in their chicken, the known ingredients were garlic and chicken stock. In the summer of 2007, KFC started marketing the chicken just as "Extra Crispy" without the marinade. Kentucky Nuggets were a chicken nugget product available at KFC until 1996. No reason has been given for their discontinuation. Smokey Chipotle – Introduced in April 2008. The chicken was dipped in chipotle sauce then doubled breaded and fried. It has been discontinued since August 2008.
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Nutritional value
KFC formerly used partially hydrogenated oil in its fried foods. This oil contains relatively high levels of trans fat, which increases the risk of heart disease. The Center for Science in the Public Interest (CSPI) filed a court case against KFC, with the aim of making it use other types of oils or make sure customers know about trans fat content immediately before they buy food. In October 2006, KFC announced that it would begin frying its chicken in Tran’s fat-free oil. This would also apply to their potato wedges and other fried foods, however, the biscuits, macaroni and cheese, and mashed potatoes would still contain Trans fat. Trans fat-free soybean oil was introduced in all KFC restaurants in the U.S. by April 30, 2007. CSPI announced that it would immediately drop its lawsuit against KFC and was hopeful that this would create a ripple effect on other restaurants or fast food chains that prepare food rich in Tran’s fat. "If KFC, which deep-fries almost everything, can get the artificial Trans fat out of its frying oil, anyone can," CSPI executive director Michael Jacobson said in a statement.
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KFC Advertising
> KFC's logo used from 1997 until November 2006 Early television advertisements for KFC regularly featured Colonel Sanders licking his fingers and talking to the viewer about his secret recipe. Despite his death in 1980 Sanders remains a key symbol of the company in its advertising and branding. Throughout the mid 1980s, KFC called on Will Vinton Studios to produce a series of humorous, claymation ads. These most often featured a cartoonlike chicken illustrating the poor food quality of competing food chains, mentioning prolonged freezing and other negative aspects. TV ads also featured Foghorn Leghorn advising Henery Hawk to visit the restaurant for better chicken. In the 80s, KFC was an associate sponsor for Junior Johnson's NASCAR Winston Cup Series cars, with such drivers as Darrell Waltrip, Neil Bonnett, and Terry Labonte. In 1997 KFC briefly re-entered the NASCAR Winston Cup Series as sponsor of the #26 Darrell Waltrip Motorsports Chevrolet with driver Rich Bickle at the Brickyard 400.
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By the late 1990s, the stylized likeness of Colonel Sanders as the KFC logo had been modified. KFC ads began featuring an animated version of "the Colonel" voiced by Randy Quaid with a lively and enthusiastic attitude. He would often start out saying "The Colonel here!" and moved across the screen with a cane in hand. The Colonel was often shown dancing, singing, and knocking on the TV screen as he spoke to the viewer about the product. The animated Colonel is uncommon today. Still using a humorous slant, the current KFC campaign revolves mostly around customers enjoying the food. It also features a modified version of Lynyrd Skynyrd's "Sweet Home Alabama" as the theme song for practically all its commercials, though the restaurant actually hails from Kentucky. In 2006, KFC claimed to have made the first logo visible from outer space, though Readymix has had one since 1965. KFC says "It marked the official debut of a massive global re-image campaign that will contemporize 14,000-plus KFC restaurants in over 80 countries over the next few years." The logo was built from 65,000 one-foot-square tiles, and it took six days on site to construct in early November. The logo was placed in the Mojave Desert near Rachel, Nevada. It is located in the northern section of Rachel, Nevada at 37°38′46″N 115°45′03″W37.6460°N 115.7507°W . Many KFC locations are co-located with one or more of Yum! Brands restaurants, Long John Silver's, Taco Bell, Pizza Hut, or A&W Restaurants. Many of these locations behave like a single restaurant, offering a single menu with food items from both restaurants.
>The resurrected Kentucky Fried Chicken logo One of KFC's latest advertisements is a commercial advertising its "wicked crunch box meal". The commercial features a fictional black metal band called "Hellvetica" performing live, the lead singer then swallows fire. The commercial then shows the lead singer at a KFC eating the "wicked crunch box meal" and saying "Oh man that is hot". In 2007, the original, non-acronymic Kentucky Fried Chicken name was resurrected and began to reappear on company marketing literature and food packaging, as well as some restaurant signage.
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International operations
Global locations
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CHAPTER 4 Factors Affecting Perceptions
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Affordable meals drive sales at fast-food chains
Value-for-money deals offered by fast-food chains are driving up sales as the economic downturn bites price-sensitive Indian customers and force them to choose affordable eating-out and ordering-in meal options. For chains such as Domino’s Pizza, McDonald’s, KFC and Pizza Hut, the downturn is no cause for applying the brakes on expansion, as most other industries are doing, but an opportunity to tap new markets and customers. In August last year, Domino’s introduced a range called Pizza Mania, offering personal-sized pizzas at Rs35 apiece. Two months later, Pizza Hut offered Magic Times pizza meals for as low as Rs99. ―The decision to introduce Pizza Mania was not driven by the slowdown, but the timing simply coincided with the slowdown in the market,‖ said Dev Amritesh, senior vice-president for marketing at Domino’s. The range already makes up 25% of overall orders and 15-16% of revenue for the chain, which plans to boost sales by launching new advertisements plugging it. ―If we do a good job pushing this, it could cross 30% of overall transactions this summer,‖ says Amritesh, who expects revenue from the range to reach at least one-fifth of the total. (The promoters of HT Media Ltd, which publishes Mint, and promoters of Domino’s Pizza India Ltd are closely related. The companies have no promoter cross-holding.) Consumers are skimping and saving as they weather the economic downturn, which has brought with it job losses and salary cuts, and are avoiding lavish dining options and expensive purchases. That’s prompting companies to devise value-for-money deals to drive sales. Pizza Hut’s Magic Times range now makes up 10% of sales. ―This is one reason we’ll be able to grow this year,‖ said Anup Jain, marketing director of Pizza Hut. He said there was a 10% increase in the number of customers at the chain’s restaurants when the range was introduced in October.
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KFC and McDonald’s have always sw orn by the value-for-money concept. KFC’s snacks are priced between Rs25 and Rs35. In India, because people often go out to eat in large groups, KFC introduced the Chicken Bucket concept. ―The meal bundles, with sides and beverages thrown in, cost about Rs100 per head and are therefore extremely popular,‖ said Unnat Verma, director of marketing at KFC. Currently, during the downturn, snacks make up 15% of KFC’s sales while another 25-30% comes from the Chicken Bucket. McDonald’s value meals, that have an entry price of Rs49 going up to Rs119, makes up 20% of sales. ―We are increasingly looking recessionresistant for our affordability,‖ says Vikram Bakshi, managing director of McDonald’s for the northern and eastern regions. McDonald’s has seen sales growth of 25-28% every year. With the value strategy reaping dividends, fast-food chains are working to expand business both in existing markets and newer geographies in a country where eating out is a Rs26,000 crore industry, according to the retail consultancy Technopak. The so-called organized sector that includes chain restaurants makes up just 10% of the pie, and is growing about 2025% annually. Domino’s Pizza is trying to dispel the impression that it is a premium brand and expand its customer base. Amritesh says he found a security guard from a neighbourhood shop peeping into a Domino’s outlet, but hesitant to enter. The executive wants workers earning a monthly salary as low as Rs4, 000-5,000 to regularly walk in on payday to get a taste of the Rs35 pizza. Traditionally, taste and a service delivery guarantee of 30 minutes have been the two pillars of Domino’s sales strategy. It has now added a third— value perception. The idea is to make the pizza a product for the masses. On the back of the value strategy, Dominos increased sales by about 45% year-on-year at the company level (which includes both new stores and existing stores). The same-store growth rate was about 20%. Same-store sales are defined as sales at stores open for at least one calendar year. ―Last year we have seen that number come down to about 12% or so,‖ Amritesh says. ―Similarly, where overall company growth was about 45% last year, we’re seeing that come down to about 35% this year.‖
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Amritesh doesn’t attribute the dip to the economic slowdown. ―When you’ve grown for three years at that type of rate, irrespective of what’s going on in the external environment, you expect some of that growth to catch up,‖ he says. ―You would expect it to come down a bit.‖ Pizza Hut, which has been in India for 12 years, is in the process of upgrading its restaurants to provide customers with an enhanced dining experience. ―The prices remain the same but what changes is your money’s worth,‖ says Jain. ―Now, the service is much better and touchpoints like the crockery you eat out of and the kind of interaction you have with the staff —that’s much better.‖ In February 2008, Pizza Hut introduced a large variety of menu options at a fixed price for some platinum and gold credit card holders. That now accounts for 7% of its sales. ―I think we will see some sales shifting here,‖ says Jain. ―What we’ve seen is that consumers are ordering more because they feel like they are saving money.‖ Fifty per cent of the sales are paid for through credit cards. Pizza Hut has posted 20% year-on-year growth since its entry into the Indian market. KFC has been growing at a compounded annual growth rate of 65% since it re-launched in 2004 and expects to maintain the pace for the next two years. December saw KFC post same-store sales growth of 30% and combined sales of both new and same stores of 80%. January alone saw same-store sales growth at 40% and combined growth at 80-85%. ―These last few months have been fantastic for us‖, says Varma.
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Rivals Domino's, Pizza Hut each target Indian market
Domino's Pizza India Ltd. has teamed up with Baskin-Robbins to test ice cream at its 147 restaurants in India. The four flavors are vanilla, "very berry strawberry," butterscotch ribbon and chocolate--all offered in three portion sizes. Domino's Pizza India Ltd. is the master franchisee for India and Nepal of Domino's Pizza International Inc., based here. Separately, rival Pizza Hut, which has more than 130 restaurants in India, launched its first television advertising campaign there. The full-service brand, which is owned by Yum! Brands Inc., offers some locally popular pizza flavors, including tandoori and masala. Pizza Hut also carries a line of vegetarian dishes because many Indians do not eat meat.
Abstract
The case discusses the localization strategies adopted by the multinational fast food chains - McDonald's, Domino's and KFC in India. Initially, these fast food chains found it tough to cater to Indian tastes. Soon, they customized their menu, positioned their products and advertised to appeal to Indian customers. McDonald's and Domino's succeeded to a certain extent, while KFC still had a long way to go. And the factors that forced the fast food chains to understand the local market and modify their strategies to suit local requirements.
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Factor Affecting Consumer Behavior
Culture
Culture Subculture Social Class
Social
Reference Group Family Role & Status
Personal
Age & Life cycle Economics Lifestyle & Personality
Psychological
Motivation Perception Caring, Beliefs & Attitude
Cultural Factors
1. Culture: - The set of Basic Values perception wants and behaviors reared by a member of society from family and other important institutions.
2. Subculture: - A group of people with shared value system based on common life experience and situations.
3. Social Class: - Relatively permanent and ordered decisions in a society choose members share similar values, interest and behaviors.
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Social Factors
1. Group: - To or more people who interact to accomplice individual or mutual goods.
2. Family
3. Roles and Status: - A person belongs to many group family, clubs etc…
Personal Factors
1. Motivation: - A need that is sufficiently pressing to direct the person to seek satisfaction of the need.
2. Perception: - The processes by which people select organization and interact information to form a meaningful picture of the world.
3. Leaning: - Changes in an individual behavior from experience.
4. Belief: - A descriptive thought that a person holds about something.
5. Attitude: - A person’s consistently favorable or unfavorable evaluation feeling and tendencies towards and object to idea.
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CONSUMER BEHAVIOUR
1. PRODUCT:
Services are products, even though intangible, they are service marketers must always remember that consumers do not buy any product; they but attributes that are converted into benefits. Legal services, medical care, hair styling, or brokerage services are more likely to be specialty services and for these customers may be wiling to go to considerable lengths to acquire the special attributes or benefits they deem essential for full and complete satisfaction. Many services are custom designed products. Services are intangible and heterogeneous and cannot easily be separated from their producers. Neither intangible dominants products like services cannot be stored nor can they are transported. It is difficult to brand.
2. PRICE:
Most services marketers follow competitive price policies, pricing their services either at the market price or slightly below. Pricing about the market price is generally employed by larger services firms or by all firms who wish to use price as a means of rationing the supply of their service offerings. The market for tangible dominant products may actually consist of three or four separate segment which is price sensitive & responsive. Flexible pricing seems much more prevalent in the marketing way vary, but typically the pricing goal of market is to maximize profits of goals of marketers are to increase sales volume. In summary, pricing in service-oriented enterprises is usually demand oriented with many sellers charging what the traffic bear. But in general pricing in particular may be their weakest and least developed marketing skill.
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3. PROMOTION:
Promotion is an important part of the marketing mix for many marketers. The key to successful promotion, whether it is advertising or personal selling is beneficing the product. Intangible dominant products such as services offer a challenge to the promotion manager. To successfully promote such as service, they are often personalized. To successfully promote service, they must be made to have a favorable positive image constructed to project attributes of the service. Promoting the service marketer’s image is a bit like ―Selling the sizzles & not the steak‖. Sellers are often expected to be know ledgeable professionals can give needed advice & counseling market oriented sporting events. No service marketer would overlook the opportunity to positively affect public opinion through its news releases or its staged activity design in past to alter public perception on other wise modify behaviours.
4. PLACE:
Channels for instant dominant product such as services are generally limited to the buyer and seller channels of distribution for services are direct and short, this is from market direct to ultimate consumers. In a service oriented ―product‖ however, it may be more fitting to consider that any extra corporate entity between the producer of service and prospective users which is utilized o make the service available and or more convenient is a marketers should perhaps take a fresh look at the channels of distribution for service as distinct from the channel concepts employed for goods.
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5. PEOPLE:
The people factor in the service marketing mix is perhaps the least they can rely on its getting their marketing mix ―right‖ and the most important. One they have to get right. Service personnel are present at two levels within the organization. Contact personnel and support personnel are those individuals whom the customer sees such as waiters or receptionists and whom the customer judge the service upon when they search for tangible clues as to the quality of service. The value they attribute to the service relies a great deal on the conduct of the contact personnel. Employees need to become ambassadors for the organization as the quality of the service and the quality of the service providers are inseparable.
6. PROCESS:
The process element of the service marketing mix is concerned with way in which the service is delivered to the customer. The inseparability characteristics of service has an important implication for how the service company personnel deliver the service to the customer and how the customer participates in the service delivery process. The ―auxiliary‖ aspect of the service that is the added value of the service, become an important competitive weapon in differentiating the service from competious when the service is experienced by the customer. Therefore, the overall effectiveness of the service process fundamentally depends on how the consumers use the service which have been defined as acts rather than things and this casts some light on the concept of ―process‖ many benefits from service occur not so much as a result of what is offered, as in the way of which it is offered.
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7.
PHYSICAL EVIDENCE:
Since a service is intangible, it is important for the company to search for tangible or physical clues which enable them to evaluate the opportunities. Service firms must be in Gandhinagar and Ahmadabad was that every aspect of the company will affect the consumer when he comes into contact with the service. There are two types of Physical evidence Peripheral Evidence: It is usually possessed as part of the purchase of a service but it has little or no independent value. Essential Evidence: Unlike peripheral evidence it cannot be possessed by the consumer. However, essential evidence may be so dominant in its impact on service purchase and use that it must be considered virtually an element in its own right.
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Threat of Entry
A growing Industry often faces threats of new entrants that can alter the competitive environment. There may, however be a number of barriers to entry. Potential competitive tends to be high industry is profitable or critical, entry barriers are low and expected retaliation form the exiting firms is not serious. The following are some of the important common entry barriers 1. 2. 3. 4. 5. 6. Government policy. Economies of scale. Cost disadvantages independent of scale. Product differentiation. Monopoly elements. Capital requirements.
Rivalry among exiting competitors
Rivalry among exiting competitors is often the most conspicuous of the competitions, firms in industry are ―mutually dependent‖ – competitive moves of a firm usually affects others and may be retaliated. Common competitive actions include price changes, promotional measures, customers service, warranties, product improvements new product introduction channel promotion etc… There are number of factor, which influence the intensity of rivalry these includes: 1. Number of firms and their relative market share strengths. 2. State of growth of industry. 3. Fixed or storage costs. 4. Indivisibility of capital augmentation. 5. Product standardization and switching costs. 6. Strategic stake. 7. Exit barrier. 8. Diverse competitors. 9. Switching costs. 10. Expected retaliation.
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CHAPTER 5 TV & Its Effect
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TV Transmission and Reception
TV brings us images from far and wide. A TV camera converts a stream of pictures into electric wires, which are received by our TV sets where these are again reconverted into pictures. The whole transmission is so fast that we see the events as they happen. The TV camera scans a picture from left to right as lines. These optical pictures are projected on the target screen inside the TV camera. The screen is made up of cells of care cesium. A needle – sharp beam is emitted through an electric gun. The beam sweeps the target screen. In the process is comparable to reading. This is called scanning, as observed earlier. The cells are then electrically charged. The charge is strong when the cell is in the light part of the picture, and weak when it is in the dark part. These charges form electromagnetic impulses. As TV is audiovisual, we have to use a microphone which converts sound into electricity. Both audio and video waves spread outwards in straight lines. As the earth is curved, terrestrial transmission is possible over a large area by putting many transmitters & aerials. A transmitter sends continuous electro magnetic waves. These continuous waves are called carrier waves. It is of high frequency (in the other words it alternates rapidly). Its pattern is constant. The picture worm and carrier wave pass through a modulator which superimposes pictures on the carrier wave. Another carrier wave is that of the sound. Its wave length is not the same as that of the cable-lines on land. Across the oceans, pictures are sent by a satellite link. Receiving TV signals at home is exactly the reverse process. The antenna collets the signals both audio and video, in the TV set; they are taken from their carrier waves and amplified. The sound impulses go to the loud speakers. The picture signals activate a thin electron beam of varying strength. When the beam strikes the screen, the tiny dots glow, & trace the lines from left to right. Some 30 seconds appear rapidly. It gives the illusion of motion. In colour TV, three basic colours are used. They are red, blue & green. The light is split up into these colours in TV camera by a set of prismatic mirrors. They separate out the colours and send them to its own electron gun with its own target plate. The dark-light information is sent by each target plate but it combined when passed to the carrier wave. In our TV sets, the dc-coder separates these colours signals, and leads each of its own electric beams housed in a single tube. The screen carrier the grid of phosphoric dots arranged ii; group of three; red, blue & green. BPCBA/TY/CP/2012-13 | Pizza Hut 96
The perforated mask receives the beams. The beams are directed by the mask through different angles. In this way, they activate one of the Three colours.
Satellite Television
India is a pioneering country in satellite TV. Rura programmes were beamed experimentally by satellite TV in the seventies. India successfully scattered images over formidable distances using a satellite transponder. The seeds for a new technology were sown. The agency which conducted this experiment was ISRO: India space research organization. People who persuaded Indira Gandhi were not politicians or advertisers or bureaucrats but our space scientists – Vikram Sarabhai, Yash Pal, E.V.chitins & their team. They launched satellite instructional TV experiment called SITE. It used communicators, intelligence agencies & scientists. The experiment of STV faded out in India. The World took over where India had left off. What India did in the seventies became a communication revolution later.
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TV’s Effect
TV effects the behavior its effects were debatable since most of the studies so far conducted are laboratory swdies consisting of experiments but their findings contra, field studies. TV is considered a prime suspect playground behavior it is often quoted as evidence of the adverse effects of TV. Research does points out some advertise effects but points out a host of causes for this and refuses to isolate TV. Some people argue if TV can persuade us to buy products by airing commercials it can affect us in many other ways too. However selling products does not necessarily mean changing behavior.
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TV Verses Other Media
The ad revenue has increased from Rs1, 504/- crores in 1991 to expected Rs3, 300/- crores in 1995. This is due to Satellite TV, and the availability of Foreign Brands. The value of ads in press have grown up by about Rs800/crore (from Rs1, 142/- crore in 1991) However, the share of the print medium in total ad revenue has fallen from about 70 to under 60 p.c Television has been the single biggest factor in opening up a huge rural market for consumer products and creating a higher level of aspiration among the huge Indian medium class estimated at over 150 million people. Ads of low-priced consumer products formed 20 p.c of print media’s Advertising. This segment is fast shifting to TV. DD’s ad revenue grew by an average 62.5 p.c over a period of 8 years, bringing it to Rs.361/- crores in 1992-93. Since 1993-94 the satellite TV ate up DD’s revenue and it could reach only Rs.371/- crore, with an increase of 2 %. The satellite channels grew by about 50 crore to Rs.180/- crore, a 12 times increase from Rs.15 crore in 1992, this is expected to reach Rs.300/crore by 1995. The broadcasting companies have organized themselves under the banner of the Indian Broadcasting Society on the lines of the Indian Newspapers Society (INS).
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Merits and Demerits of TV Advertising
1st let us consider some special characteristics of commercial TV. Here on National network the advertisers reach the National mark. On 2 nd channel they reach the regional market on Satellite channels they reach markets of several countries TV is a home and family medium, viewing on TV effortlessly. There is a movement and so the product is close to reality. For Example, an aircraft acquires a beauty not seen when flying above in the sky or static as in print ads. The expression of Ankita Jhaveri, the child model Rasna as signifies the Rasna is very delicious. Malavika really conveyed what Frooti is all about in her Rustic outfit. In India also, we get now viewer ship data and rating of different programmes.
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Special Merits of TV
TV has immense impact, no other medium can ever compete TV as far as effective presentation, is concerned. It attracts attention immediately. Computer graphics has made it still more effective. It arouses interest in the produce print ads, these two steps require deliberation. Here it comes spontaneously TV commercials and Spondered program are impactive even when the viewer is temporarily not before he set. Excellent Quality of Production TV’s sponsored programmes and DD programmes have been improving in terms of quality-content wise as well as production wise consistently over a period of time. The agency exercises overall supervision. We have cadre of TV producers now. Sometimes the movie Moghuls themselves produce a TV serial, so skilled hands handle this medium. Some Sponsored programmes are lavishly made. They do a lot of Outdoor shooting. But most of the Programmes are Indoor shot Programmes.
Retailers also watch TV:-Both consumers and distributors are TV
viewers. The retailers might miss out the ads in print media. But they are exposed to TV ads. Thus they fell inclined to stock these products. Nada Kishore & Sons, a local firm making Homacol liquid soaps has definitely improved its distribution after TV-47- advertising. The single medium does a double job.
It is a Comprehensive Technique: - In TV, there is a unique blend of
sight, colour, movement, sound, timing, repetition and presentation in the home. Put together it has more attributes than any other medium. It therefore produces quick results. Only the product should be a nationally marketed Consumer Product.
Demonstration: -Product benefits can be shown most effectively by TV.
Benefits may accrue over a period of time. But by using the technique of time compression product benefits can be shown in a 10 second spot.
Creative use of Environment & Menial Make-up of Viewers: - The
editorial environment of a Sponsored programme can be shown using ACTION shoes before the teleserial of Circus.
Animation: - It is possible to vest the product/logo with human quality.
Animated characters do not alienate us.
Image Building: -TV succeeds in building a powerful image of the
company and its products. It can also project an image of the users rendering it excellent for life-style advertising. BPCBA/TY/CP/2012-13 | Pizza Hut 101
Emotional Content: - TV triggers off nostalgia, tenderness, generosity
kindness and such other emotions. The special effects enhance the impact.
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MILESTONES OF A GLOBAL VILLAGE
TERRESTRIAL TRANSMISSION OF TV
DIRECT BROADCAST SATELLITE (DBS) MULTI-CHANNEL TV
MULTI MEDIA SET COMPTER DATABASE, PAY TV, FM BROADCAST
FIBRE OPTICS INTEGRATED SWITCHING DIGITAL NETWORKING (ISDN)
HIGH DEFINITION TV (HDTV)
TV LIKE WALL TILES USES LCDS OR LEDS
INTERACTIVE DIFITAL TV
3-D TV, TV ON GLASSES
VIRTUAL REALITY LASER IMAGES WITHOUT SCREEN
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TV as Medium of Future
Though both TV and films are audio and visual media, TV technology is Dolt—t from that of film electronic signals is transmitted at the speed of light- and reach right into our homes. Cinema however uses films. These require development and physical distribution of prints. One major advantage of cinema is the quality of prices it producers. TV however has not matched cinema yet in picture quality. Though it’s timeless Scores over the cinema. HDTV (High Definition TV) however in future many gives the same sharpness and clarity which 35mm films give today. TV screen produces images which are dots actually. The closely spaced dots produce a finer grained picture. Deification is used in the sense of resolution. In low definition system as of today, the dots merge with each other. Americans use 525lines on screen and cameras used to produce a T programme and those used to produce 35mm films. It results into superior quality of programmes.
Rechargeable LCD
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CHAPTER 6 RESEARCH FINDINGS
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INTRODUCTION
INTRODUCTION TO RESEARCH
Research can be defined as ―logical & systematic application of the fundamental of science to the general and overall questions of a study and scientific techniques which provides previous tools, specific procedures and technical, rather than philosophical means for getting ordering the data prior their logical manipulation‖. Research seeks to find explanation to unexplained social phenomena to clarify doubtful and correct the misconceived facts of social life. Research represents ―A systematic method of exploring actual persons and groups, focused preliminary on their experience with in their social circle which permit stating proposition in the form, thus the research defined as logical and systemized means or techniques to discover new facts and verify old facts and analyze their sequence, interrelationship and explanation which were derived with an appraise theoretical frame of reference, develop new scientific tools concept and new theories which would facilitate reliable and valid study of human behaviour about any thing. To study the effect of Fast Food Advertisement on the customers/consumers of the Fast Foods we did a survey of the youngsters/consumers through a questionnaire and a study of the Top Six Fast Food Outlets. In this survey we took 80 customers so the total sample size is 80.
Topic: - Macro analysis of advertisements industry with special focus on
effectiveness of advertising on Youngster’s perception towards Fast Food Advertising.
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INTRODUCTION TO RESEARCH ANALYSIS
After the collection of the data the next task of the research process is the analysis of collected information from the customers and dealers. The questionnaire form, its process and eddied to analyzing purpose.
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Research Questions
Doughnut Pie-Chart
Q.1 Do you recognize advertisement as an industry?
Description: 70% percent people surveyed knew about advertisement industry; whereas around 17% people surveyed never heard about this industry. 13% people surveyed were not sure about its existence.
Q.2 Are you a regular fast food eater?
Description: There were 52% people who were regular fast food eater and 48% people were not still a regular customer of fast food industry
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Q.3 From where do you get your fast food prepared?
Description: Around 48% of surveyed people get their fast food prepared at fast food outlet and nearly 22% people get their fast food from ready to eat packets; while 20% people still opt for local wheels and rest 10% get their fast food delivered from fast food restaurants.
Q.4 Do you get influenced by fast food advertisements shown on the television/media?
Description: 32% people get influenced by fast food advertisements and tend to visit the place, 20% people said that fast food outlet is far from their place but still are influenced by its advertisements. 20% people think that advertisements are promising and while 28% people still do not have any kind of influence on them.
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Q.5 How often do you visit a fast food outlet/restaurant?
Description: There were only 12% people who regularly visit the fast food restaurant/outlet, 42% people visit fast food centre occasionally and 18% people visit more than twice a week. Lastly only 28% people visit fast food outlet once weekly.
Q.6 Of which of the following fast food restaurant/outlet`s advertisements is your favorite?
Description: Around 40% people surveyed have McDonalds’ as their favorite advertisement, KFC has 12% favorite, and 11% goes for Dominos’, 28% people surveyed have Pizza Hut as their favorite and remaining 8%, 8% goes for Subway and other brands.
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Q.7 Why is that advertisement your favorite?
Description: 20% of surveyed people believe that advertisements shown are tempting, 32% people think that advertisements has appealing affect on perception, 26% people like a advertisement because of their favorite celebrity endorsement and 22% people believes in simplicity of advertisements.
Q.8 What is your opinion on fast food advertisements shown on televisions/media?
Description: 12% people surveyed believe that fast food advertisements shown on T.V./media lack Indian touch, 16% believe that advertisements are superficial while 24% think that advertisements are promising and good. But there were 32% people who find advertisement very attractive and interesting and lastly about 16% are inclined on other reasons.
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Q.9 What is the most attractive part that you like the most in any fast food advertising shown on television/media?
Description: 16% of surveyed people believe that music of the advertisement plays a crucial role, whereas 31% people believe that the fast food itself is the most attractive part of the advertisement. Around 35% people think that the concept is attractive, 25% people think that models/actress are attractive part of advertisement; 8% think different colors used for display is more important. And around 6% think that punch line/tag line plays important in advertisement and another 6% likes prices in the advertisement and lastly 5% people had other reasons.
Q.10 Do you wish to visit any fast food outlet/restaurant after watching their relevant advertisement?
Description: 63% people visit fast food outlet/restaurant after watching their relevant advertisement on T.V. 63% people would delay for next time and 24% were not interested.
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Q.11 Do you find the food as tempting and tasty as in the advertisement?
Description: 2% people think that fast food is tempting and tasty as in the advertisement, 40% people believe fast food is a bit good as in advertisement. 32% people do not find fast food as tempting and tasty as in the advertisement. 26% people haven’t tried as yet.
Q.12 If no then, what is stopping you from doing that?
Description: Around 39% had health problems, 29% did not have time to visit any fast food outlet, and 13% people had a familial biasness. 1% people did not have trust on fast food and whereas 18% other reasons.
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Q.13 Are advertisements of fast food outlet/restaurants successful enough in establishing their market?
Description: 35% people think that fast food industry is increasing their market slowly and steadily, while 26% did not have any clue about the market of fast food companies. 18% believed that fast food outlets are successful in establishing their market because of their subsequent revenue increase and 5% don’t see any improvement in their market.
Q.14 Would you prefer any celebrity to endorse any fast food outlet/restaurant?
Description: 38% believed that celebrity endorsement is definitely a good idea, 22% said that it would be easy to relate to them after celebrity endorsement and 12% think that fast food itself is promising, so need to endorse a celebrity. 25% opposed celebrity endorsement and 3% believed in any newer concept apart from this. BPCBA/TY/CP/2012-13 | Pizza Hut 114
Q.15 Tick any one of the following: Serial Particulars no./Qs. 1 Homemade fast food is better than the fast food restaurant 2 Fast food is unhealthy 3 Advertisements of fast food shown on T.V. are waste 4 Fast food advertisements should be shown during lunch/dinner time 5 Do you like the concept of fast food in India? Yes 26% 78% 14% 88% 44% No 68% 16% 75% 8% 47% Don`t know 6% 6% 11% 4% 9%
Description: For Q.1 26% believed in homemade fast food and 65% opposed the same, while 6% didn’t had any inclination. For Q.2 78% believed that fast food is unhealthy and 16% found fast food healthy, while 6% had no response. For Q.3 14% found fast food advertisement as waste and 75% clearly contradicted the statement, while 11% still had confusion about it. For Q.4 88%agreed with the statement and 8% opposed it, while 4% did not know anything. For Q.5 44% liked the concept of advertisement in India and 47$% did not liked the concept, while 9% had a doubt about the question. BPCBA/TY/CP/2012-13 | Pizza Hut 115
Q.16 Does your health permit to have the fast food?
Description: 48% had sound health to have fast food, 32% people had health concerns and 20% were not aware about their health problems.
Q.17 Have you seen KFC`s new advertisements for its new product ―Krushers‖?
Description: 48% were aware about KFCs’ new advertisement and 37% were not aware about KFCs’ advertisement, while 15% did not remember the advertisement.
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Q.18 What did you liked the most about the advertisement?
Description: 20% liked the way of presentation of the advertisement, 22% liked the background score, 11% liked the model/actress, and 28% liked the concept and 9% liked something unique in advertisement.
Q.19 Does your budget stop you from buying/visiting any fast food restaurant?
Description: 28% had a restricted budget and 72% did not have any budgetary problems.
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Q.20 According to general tendency, a typical Indian would not prefer going to any fast food restaurant; select one option of the following.
Description: 32% agreed with the assumption, 15% strongly agreed with assumption, 20% did not agree with the assumption, 12% strongly disagree with the assumption and 21% didn’t had any response.
Q.21 Which is your Favorite Fast Food? Why?
Description: 28% had cheese burger as their favorite fast food, 53% liked cheese pizza the most, and 11% liked cheese rolls. 8%, 8% people liked special fast food of the outlet and other food respectively.
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Q.22 Of which Fast food company does it belong to?
Description: 36% McDonalds’, 8% Dominos’, 5% Subway, 9% KFC, 20% Pizza Hut, 16% U.S. Pizza and 4% other brands.
Q.23 Would you appreciate, if fast food becomes cheaper in terms of price?
Description: 24% strongly agreed with the statement, 46% agreed with the statement, 28% were neutral, 6% disagreed with the statement and 1% strongly disagreed with the statement.
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Q.24 Does your religion/culture/tradition allow you to have fast food?
Description: 75% had religious/cultural/tradition problem and 25% did not have any such problem.
Q.25 Why would you not go for fast food after watching its relevant advertisement shown on T.V.?
Description: 22% had financial constraint, 13% were influenced by relatives, and 23% were unwilling to visit the fast food outlet. 8% thought that ineffective advertising stopped them to visit the place, 25% feared the change of taste, 8% had digestive problems and 11% had other problems.
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Q.26 Do you become addict of fast food after trying it?
Description: 57% agreed with the statement, 43% did not become addict of fast food.
Q.27 what is the effect on your perception after watching fast food advertisements on T.V.?
Description: 46% tend to be attracted to the nearest fast food outlet, 18% were unsure about the advertisement, 20% tried to ignore the advertisement, 8% showed unwillingness and rest 3% like to describe the experience.
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Q.28 Does fast food advertisement literally influence your perception?
Description: 46% got influenced by the advertisement, 36% do not have any influence of the advertisement and 18% did not know in exact words/expression.
Q.29 Does the fast food outlets’ space/environment/ambience affect your choice to visit the place?
Description: 44% agreed that fast food outlets’ ambience affected their choice to visit the place while, 7% had some other reason. 16% believed that less crowded environment is essential and 33% people did not have much influence on their visit to fast food outlet.
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Q.30 Which one of the categories below do you belong to?
Description: 44% people surveyed were under graduate student, 28% were post graduate, 10% were diploma student and 18% were school students.
*THANKS FOR YOUR TIME AND ASSISTANCE IN TAKING PART IN THIS REPORT*
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