CHAPTER 1 INTRODUCTION

1.1 OVERVIEW OF THE INDUSTRY

Industry Composition: Deriving from the agriculture industry in our definition, the food and beverage industry is divided into two major segments. Those two segments

are production and distribution of edible goods. Production includes the processing of meats and cheeses and the creating of soft drinks, alcoholic beverages, packaged foods, and other modified foods. The production segment of this industry excludes foods that were directly produced via farming and other forms of agriculture, as those are encompassed by our definition of the agriculture industry. Distribution involves transporting the finished food product into the hands of consumers. The industry is much more focused on technology and mechanical manipulation of raw foods to create more value-added food products than the agricultural industry. Under our definition of these industries, grocery stores are excluded as they are considered a retail store by the definition. Distribution includes companies that ship food to retail outlets, restaurants, or directly to consumers. History: Food has been processed for nearly as long as it has been used. In early times, humans used to dry or smoke meat or other foodstuff in order to preserve it for longer periods of time. Salt preservation was also very common in the diet of sailors and soldiers during those times. Food processing essentially remained unchanged until the 19th century with the invention of canning by Nicholas Appert and pasteurization by Louis Pasteur. Both of these innovations changed the way that food was processed into a longer lasting food product that was canned or bottled. During wartime, the food and beverage industry shifted, as food is often a precious commodity. Prices were determined by availability and regulation. Most countries involved in World War II rationed food and regulated prices in order to stabilize the economy. This increased innovation in the food processing segment with the inventions
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of food coloring, juice concentrates, artificial sweeteners, and more advanced preservatives, such as sodium benzoate. These innovations led to the current food processing market in place today with convenience foods, such as frozen TV dinners and instant meals, prepared snacks, and other instantly available foods. The food distribution segment of this industry is fairly new. Prior to the industrial revolution, consumers typically ate what foods were available to them in their regional market. Foods were processed from these markets and used for journeys out of them. With the increased transportation of the industrial revolution, such as railroads and barges, as well as the concurrent rise in technology such as canning, it became feasible to transport food from one regional market for sale in another. Today, the industry segment has evolved even further due to increased transportation technology such as airplanes. Leaders: In the distribution segment of this industry; SYSCO, US Foodservice, and McLane Company are the major companies. In the processing segment; diversification and expansion has led to companies being involved in many different markets. PepsiCo is a major part of the beverage and, with their Frito-Lay brand, food processing segment. Nestle is the worlds largest food conglomerate and Kraft and its subsidiaries are very involved as well. In addition to PepsiCo, the nonalcoholic beverage is dominated by Coca-Cola and Dr. Pepper-Snapple. The big companies in the alcoholic beverage market are Anheuser-Busch InBev, MillerCoors, and Diageo. Trends: Due to the recent economic meltdown, consumers are looking to save as much money as possible. One major way that consumers are doing so is by purchasing more generic foods and making their own meals, not going out to eat. This is causing food processing companies to become more innovative to decrease the cost of goods sold, attract more customers, and increase profit margins.

The large amount of obesity in the world has a major effect on the food and beverage industry. There has been an increase in demand for health foods and more informative nutritional labeling. Both of these trends have caused companies to release lower calorie foods and to better control how their brand is viewed. Companies want to be viewed as a healthy brand and are promoting activities, such as youth sports, that show this healthy image. There also is mention of a tax on foods known to lead to obesity in order to curb consumers usage of them. Rising costs of factors of production are a major factor to this industry as well. Since commodity prices went up in the past year, food companies have had to increase prices of the final product as well. With the economic collapse, this affected them two-fold, as consumers were less likely to want or even have the money to pay the higher prices. Fortunately, commodity costs have been decreasing in the last few months, which forecasts a lower final price for the products in this industry is to come. The industry also has to deal with their reputation, as there have been incidents of unsafe food being released in the past. These outbreaks have to major potential consequences: loss of consumer confidence and increased regulation. Already, research has shown that consumers do not trust their food suppliers as much as they used to and nearly half of them have switched brands in the past year, either to save money or because they believe the new food will be safer. Government control of the food process has increased with the passage of new laws as well. Future Outlook: The food and beverage industry has seen their profit margins decrease recently. However, due to the falling cost of commodities, these margins should increase in the coming years. Food is a necessary part of life and will always be needed. Those are some reasons why this industry has an above average future outlook. In addition, corporate and brand reputations are expected to become increasingly important, as consumers are trying to stretch their dollar further and competition is increasing. With the increase in competition, the only way companies can separate
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themselves from others is by brand recognition. Consumers are now very concerned with the reputation of a company, or their brand image, with respect to the safety and quality of product. Increased innovation in the industry will lead to newer, healthier products and lower production costs, both of which should increase profit margins. India is fervently poised for the Food Revolution This will ensure agricultural diversification and large investments in food processing. The concept of food security has two dimensions availability of food and access to food. 30% of the food produced in the country is wasted. There is a need to increase the range of foods available to improve overall nutrition. Special foods for patients suffering from hypertension, diabetes gives health benefits. Packaging of food products has become important to ensure safety and hygiene. Indian food and beverage sector comprises of diverse segments and each segment has large number of product categories. Majority of the segments have been recording double digit growth rates in the last few years with some of them even growing by 30% annually. India is fast emerging as a leading producer and consumer of packaged food products, non-alcoholic beverages, alcoholic beverages, dairy products and meat and poultry products. The young Indian consumers backed by higher purchasing power have also created a fast-food revolution in the country since the last decade. This phenomenon is fast attracting the global major fast food chains to the second most populous country in the world. Global major chains like McDonalds, Yum Brands (KFC and Pizza Hut), Dominos Pizza and Subway have already established their presence in India. Other majors like Starbucks and Dunkin Donuts entered the market in 2012. Many others like Burger King are planning to enter the Indian market after the government announced foreign investment reforms in the retail sector.

1.2 ABOUT THE ORGANIZATION 1.2.1 Profile of the Organization

Devyani International Limited (An associate company of 3000 crore RJ Corp- largest bottler for Pepsico- with interests in Beverages/Food/ Beer/Milk/ Ice-cream/ Stem-cell/ Real Estate/ Education) is the fastest growing, customer centric, profitable player in the Indian retail F&B sector, with presence in different space zones cutting across Indian subcontinent, Nepal and Nigeria. Devyani International Limited currently has a visibility of 300+ outlets of Pizza Hut, KFC, Costa, Vaango Swensen's, and many other brands.

Devyani International Limited is the largest franchisee for Pizza Hut and KFC in India. It also has Pan India franchisee rights for Costa Coffee and also and now Swensen's Ice creams. With this distinguished track record and expertise in the QSR segment, Devyani International Limited has launched its own brand Vaango a world class south Indian QSR chain and plans to take it across India. Vaango offers authentic South Indian food in a genX ambience.

Every operation at Devyani International Limited is governed, regulated and activated by our Mission Statement: "To be a people centric, customer focused and process driven operations, striving for excellence, day in day out with a beat year ago and turnaround mentality".

Devyani International Limited envisions to be the best restaurant company in India for customers and employee alike. Devyani International Limited has a passionate and committed team; and it has strong intentionality and method to realize this vision, for sure. Devyani International Limited leverages some powerful management tools to drive its' operations. Some of these tools and processes include Balance Score Card, Employee P&L, Bench-planning and Voice of Champions.

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

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committed to being a "people centric, customer focused and process driven operations, striving for excellence with a turnaround mentality. Devyani International Limited will continue to vigorously pursue its journey to be the best for customers- both internal and external.

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

Mission To be people centric,customer focused & process driven operations striving for excellence day in and day out with a beat year ago & Turnaround Mentality.

Devyani International Limited VALUES: Ownership This Devyani International Limited value encourages demonstration of proactive approach, care and concern for utilization of all available resources, recurring personal initiatives and information sharing.

Customer First This Devyani International Limited Value is about delighting- not only satisfying- both internal and external customers, walking an extra mile to meet customer's expectations; By being passionate about maniacal service delivery and recognizing and fulfilling interests of all stakeholders.

Profitability

This value is aligned to enhance resource efficiency and effectiveness.

Growth At Devyani International Limited the continuous focus is towards visible action for overall development; leveraging opportunities to enhance 'canvas' of operations.

1.2.2 Competitive Status

The industry is highly competitive with respect to price, value and promotions, service, location, and food quality. There are a substantial number of restaurant operations that compete with us for customer traffic, some of which have significantly greater resources to aggressively market to consumers, which could result in our concepts losing market share. Consumers are highly focused on value and if other restaurants are able to promote and deliver a higher degree of value, our guest traffic levels may suffer, impacting revenues. In addition, with improving product offerings at quick-service restaurants and grocery stores, coupled with the present state of the economy, consumers may choose to trade down to these alternatives, which could also negatively affect revenues. Restaurant companies are essentially retailers of prepared foods, and their operating performance is influenced by many of the same factors that affect traditional retail stores. For the most part, restaurants have business models that are relatively easy to understand, and the array on the Value Line page is the same as that of a standard industrial company. Nonetheless, there are a number of unique factors to consider when making investment decisions regarding this large and segmented industry. Competition between restaurants is intense, since dining options abound. And, while there are certainly dominant players in this industry (especially among fast-food purveyors), no one company has the market cornered. Indeed, virtually every restaurant location must compete not only against other publicly traded chains, but also a wide array

of small, local establishments. Competitors include everything from delis and pizzerias to fine-dining restaurants. And, of course, it is relatively easy to forgo prepared foods, altogether, in favor of home cooking, which is usually a less expensive option. Thus, restaurant meals are discretionary purchases, and the industry tends to be highly cyclical. Sales Top-line growth is typically generated in two ways, opening locations and boosting same-store sales. Opening new doors is a straightforward strategy, and usually the main driver of revenue when a company is in its early stages. As a chain grows in size, however, it becomes increasingly difficult to capture benefits. The best, most profitable locations are established first, and then managers must be careful not to place restaurants too close together, lest they cannibalize each other's sales. Comparable-store sales, or "comps", is a valuable metric to examine when analyzing restaurants. Comps are particularly important once a company reaches maturity, since they become the primary driver of growth. Product innovations and menu-price increases are two of the most common ways to increase same-store sales. Remodeling existing locations is another way to boost guest traffic. Furthermore, promotions and limited-time offers are widely used to attract diners. Investors should also pay attention to trends in the dollar value of the average guest check, as this can shed additional light on what exactly is driving sales. Margins Management's execution and ability to deliver a menu that appeals to a wide range of palates go a long way toward determining a restaurant's margins. Most companies in this industry have operating margins in the mid- to upper teens, and net profit margins in the mid- to high-single digits. Food costs are obviously an important line item and, at times, can fluctuate wildly. Prices for staples, such as corn, chicken, beef and dairy, can move greatly, depending on factors like crop yields, feed costs and other external demand factors.

Labor is another major cost for service-oriented restaurants. Typically, workers earn modest salaries, often at or just slightly above government-mandated minimum wages. Employees that fall into this category are usually fast-food workers, dishwashers and bus boys. Servers, who make the lion's share of their money through tips, are usually paid even less. Consequently, changes to federal or state minimum-wage laws can have a noticeable impact on a restaurant's costs and margins. Fast Food vs. Casual Dining Restaurants can be loosely broken down into two broad categories: fast food and casual sit-down establishments. The same general factors discussed above dictate the performance of each group, but sit-down restaurants tend to be more expensive, making them even more sensitive to consumer budgets and the health of the economy. Fast-food restaurants, being less dependent on macroeconomic conditions, are better defensive investment plays. In a recessionary environment, their convenience and value make them attractive options for diners seeking inexpensive meals or for those trading down from casual-dining establishments. Convenience is a major part of the fast-food business model, so a vast network of stores is essential to success. In addition to expansive hamburger chains, there are a number of large players that focus on niches, such as sandwiches and pizza. Fast food is responsible for most of the industry's international sales. Foreign markets offer vast growth potential for companies willing to take on the challenge of finding a successful formula that appeals to a wide array of customs and tastes. A well-know brand name provides a huge leg up when expanding overseas, which is one reason why fastfood makers dominate the international arena. The convenience of these restaurants and their typically inoffensive menus, which appeal to most diners, are other pluses. Investment Considerations Restaurant stocks have a number of attractive attributes. Their business models are easy to understand, as are the factors that effect their performance. Most are cyclical, so broad
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economic conditions often play an outsized roll in the group's overall performance. However, fast-food retailers can sometimes provide more shelter in a down economy. Conservative investors might find the stocks of mature operators appealing as growthand-income holdings. Conversely, fledgling companies, with new or unique formats, use most of their cash flow for expansion, and their stocks may offer attractive 3- to 5-year appreciation potential to the more venturesome.

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1.2.3 SWOT Analysis of the Organization

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1.3 ABOUT THE TOPIC

Delhi offers a variety of Indian as well as global cuisines in diverse ambiances to go well with various budgets. The growing classiness of the Delhiites palate is apparent in the ever-increasing number of specialty restaurants. Eating dinner in the best south Indian restaurant is a delight. All luxury hotels in the metropolitan have one such Restaurant, while nearly all of the markets in Delhi have a medium budget self-service restaurant. The fame of this cuisine can be determined by the countless south Indian fast food outlets on wheels found all over, in the capital. South Indian food, a favorite of many is enjoyed in the best specialty restaurants. These restaurants offer exceptional vegetarian dishes from south India. Introducing Vaango, a unique concept where one can enjoy authentic South Indian food in a contemporary ambience. It is the new South Indian restaurant chain launched by Devyani International as a part of its expansion journey. Vaango, which means come in in Tamil, will soon redefine the South Indian culinary experience. It is an aspirational and experiential brand.

Vaango is a first-of-its kind restaurant where authentic South Indian food is offered in an unusually contemporary ambience. Built on the QSR model, the menu has traditional delicacies from South India, its list of options has long-established delicacies from states across South India, comprising an extensive variety of Dosas, Vada, Idlis, Rice preparations like Curd Rice, Tamarind Rice with deserts like Rawa Kesari and Kasi Halwa. The Menu moreover has a particular health section that consists of Neer dosas and Appams and Ishtew. One is able to have the benefit of a visual delight of getting to
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observe crispy dosas being prepared at the Live Kitchen. All at a reasonable price choice. It serves authentic vegetarian South Indian food in a modern ambience, and caters to all age groups whore willing to try something new, fun, but with an authentic taste. The above unique brand features have been designed keeping in mind consumer insights and preferences authenticated in our internal research that was conducted among our target audience in key markets. Their consumers are those with a progressive lifestyle, who enjoy eating out, but clearly prefer good value. Those for whom eating out is a social statement. People who consider eating as an enjoyment will form the core of the brand.

Besides serving one of the healthiest cuisines in the country, Vaango offers warm, quick, efficient and friendly customer service and highest quality food. Our outlets are designed with an open kitchen concept thats been based on the principle of world class quality & hygiene: You can now enjoy watching your Dosa being made right in front of you. Also, a special health section on the menu includes neer dosas & appams. There are seating zones for friends, family, and comfort seating with soothing music to enhance the overall experience. In a unique effort, Vaango makes the eating experience more interactive and fun: It engages customers with Facebook, which offer fun contests, menu updates, reviews, discussion forums. As a part of the fun experience they made the experience instantly transferable through a touch screen based Facebook app. A customer can simply click his photo through the touch screen and upload it on facebook within seconds, recording his Vaango moment at their Live web station. Being a part of the Vaango club makes their consumer feel special and privileged. Customers are also welcome to join the Mobile Loyalty programme where they avail special offers as a part of their loyalty club. They also encourage people to use sms and engaging touchscreen as a feedback mechanism, and they are very responsive to suggestions and ideas shared by their guests. At Vaango, they do all that can make every guest feel comfortable and welcome. They have friendly and efficient services with great value prices and provide a cheerful, interactive ambience for their guests.

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Their aim is to passionately deliver the highest levels of experiential services, maintain consistency in serving the highest quality products and become a globally competitive organization one that is driven by an insatiable thirst for excellence. Their focus will be on innovation and continuously providing guest relevant experiences to keep things fresh for their customers. At present, Vaango has 8 outlets in delhi-NCR. It is the perfect place for the youngsters, if the mood is to have south Indian food. Unlike many other restaurants, Vaango isnt old-fashioned. The place is full of energy and there is an open kitchen with neatly clad chefs, making it look like a cool college dining hall more than anything else. And naturally, in a place like this you wont be blamed for expecting the experience to be just passable. Vaango astonishes you with its detail to accuracy of flavor and appearance. The Dal Vada is just like you dreamt of and doesnt have a single mark of oil showing. The side dishes like sambar as well as the chutneys, particularly the coconut option, are exceptionally fresh and tasty.

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CHAPTER 2 RESEARCH METHODOLOGY

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Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. In it we study the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them. It is necessary for the researcher to know not only the research methods/techniques but also the methodology. Researchers not only need to know how to develop certain indices or tests, how to calculate the mean, the mode, the median or the standard deviation or chi-square, how to apply particular research techniques, but they also need to know which of these methods or techniques, are relevant and which are not, and what would they mean and indicate and why. Researchers also need to understand the assumptions underlying various techniques and they need to know the criteria by which they can decide that certain techniques and procedures will be applicable to certain problems and others will not. All this means that it is necessary for the researcher to design his methodology for his problem as the same may differ from problem to problem. For example, an architect, who designs a building, has to consciously evaluate the basis of his decisions, i.e., he has to evaluate why and on what basis he selects particular size, number and location of doors, windows and ventilators, uses particular materials and not others and the like. Similarly, in research the scientist has to expose the research decisions to evaluation before they are implemented. He has to specify very clearly and precisely what decisions he selects and why he selects them so that they can be evaluated by others also. From what has been stated above, we can say that research methodology has many dimensions and research methods do constitute a part of the research methodology. The scope of research methodology is wider than that of research methods. Thus, when we talk of research methodology we not only talk of the research methods but also consider the logic behind the methods we use in the context of our research study and explain why we are using a particular method or technique and why we are not using others so that research results are capable of being evaluated either by the researcher himself or by others. Why a research study has been undertaken, how the research problem has been defined, in what way and why the hypothesis has been formulated, what data have been collected and what particular method has been adopted, why particular technique of

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analysing data has been used and a host of similar other questions are usually answered when we talk of research methodology concerning a research problem or study.

2.1 OBJECTIVE OF THE STUDY

1. To study the customer perception of Vaango Restaurants. 2. To study the overall consumer behavior with respect to dining out. 3. To develop strategies for Vaango to increase its customer satisfaction & market Share. 4. To explore those attributes that customers perceive as meet their expectation level in their selection of a restaurant. 5. To determine the influence of food quality, atmosphere, service quality, convenience, and price and value on customer satisfaction, return intention, and word-of-mouth endorsement.

2.2 SCOPE OF STUDY

The research was carried out to know the customer behavior and perception of customers about Vaango Restaurant. The main motive was to find: Attitude of the customer. General perception of the customer about the products and services offered by Vaango Restaurant. How did they come to know about Vaango Restaurant? Experiences while dining in Vaango Restaurant. Suggestions and scope of improvement for brand Vaango.

This data is very important for Vaango Restaurant in order to know the customers preference and thus help in increasing the Number of Transactions.

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2.3 METHODOLOGY
Methodology is the systematic, theoretical analysis of the methods applied to a field of study, or the theoretical analysis of the body of methods and principles associated with a branch of knowledge. It, typically, encompasses concepts such as paradigm, theoretical model, phases and quantitative or qualitative techniques. A Methodology does not set out to provide solutions but offers the theoretical underpinning for understanding which method, set of methods or so called best practices can be applied to a specific case. It has been defined also as follows: 1. "the analysis of the principles of methods, rules, and postulates employed by a discipline"; 2. "the systematic study of methods that are, can be, or have been applied within a discipline"; 3. "the study or description of methods". A methodology is the design process for carrying out research or the development of a procedure and is not in itself an instrument for doing those things. Using it as a synonym for method or set of methods, leads to misinterpretation and undermines the proper analysis that should go into designing research. Generally for any research study both primary and secondary research are done which facilitates in the better understanding of the entire study. Primary research helps garner relevant and adequate data of the current state of affairs pertaining to any subject and provides an insight into the exact nature of the problem.

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2.3.1 Type of Research

Quantitative Research Quantitative research is based on the measurement of quantity or amount. It is applicable to phenomena that can be expressed in terms of quantity. It usually involves collecting and converting data into numerical form so that statistical calculations can be made and conclusions drawn. Data is collected by various means following a strict procedure and prepared for statistical analysis. Qualitative Research Qualitative research is concerned with qualitative phenomenon, i.e., phenomena relating to or involving quality or kind. It is about recording, analysing and attempting to uncover the deeper meaning and significance of human behaviour and experience, including contradictory beliefs, behaviours and emotions. Researchers are interested in gaining a rich and complex understanding of peoples experience and not in obtaining information which can be generalized to other larger groups.

A Qualitative Research has been adopted to carry out the study.

2.3.2 Research Design

A research design is the arrangement of conditions for the collection and analyses of data in a manner that aims to combine relevance to the research purpose with economy in procedure. The research design is the conceptual structure within which research is conducted; it constitutes the blueprint for the collection, measurement and analyses of the data. Descriptive vs. Analytical: Descriptive research includes surveys and fact-finding enquiries of different kinds. The major purpose of descriptive research is description of the state of affairs as it exists at present. The main characteristic of this method is that the
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researcher has no control over the variables; he can only report what has happened or what is happening. Most ex post facto research projects are used for descriptive studies in which the researcher seeks to measure such items as, for example, frequency of shopping, preferences of people, or similar data. Ex post facto studies also include attempts by researchers to discover causes even when they cannot control the variables. The methods of research utilized in descriptive research are survey methods of all kinds, including comparative and correlational methods. In analytical research, on the other hand, the researcher has to use facts or information already available, and analyze these to make a critical evaluation of the material.

Exploratory vs. Conclusive: Exploratory research seeks to develop initial hunches or insights and to provide direction for any further research needed. Initial research is often needed to properly identify the problem to be researched. Exploratory research is used for preliminary investigation. The primary purpose is to identify objectives and needs. Conclusive research aims to verify insights and to aid decision makers in selecting a specific course of action. Conclusive research is sometimes called confirmatory research, as it is used to "confirm" a hypothesis. This research focuses on obtaining and analyzing specific data to address specific questions. Conclusive research is often used to reach final decisions. The primary purpose of conclusive research is to help decision makers choose the best course of action. This research tends to be more formal and rigorous. The research is based on sampling design which deals with the method of selecting items to be observed for the given study. The research is Exploratory & Descriptive in nature.

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2.3.3 Sources of Data Collection

Primary Data: The primary data are those which are collected afresh and for the first time, and thus happen to be original in character. In primary data collection, the data is collected by the researcher himself using methods such as interviews and questionnaires. The key point here is that the data collected is unique to researcher and his research and, no one else has access to it. Advantages: Addresses specific research issues as the researcher controls the search design to fit their needs Great control, not only does primary research enable the marketer to focus on specific subjects, it also enables the researcher to have a higher control over how the information is collected. Taking this into account, the researcher can decide on such requirements as size of project, time frame and location of research. Efficient spending for information, primary data collection focus on issues specific to the researcher, improving the chances that the research funds are spent efficiently. Proprietary information, primary data collected by the researcher is their own. Disadvantages: Compared to secondary research, primary data may be very expensive in preparing and carrying out the research. In order to be done properly, primary data collection requires the development and execution of a research plan. It is longer to undertake primary research than to acquire secondary data. Some research projects, while potentially offering information that could prove quite valuable, may not be within the reach of a researcher. May be very expensive because many people need to be confronted. By the time the research is complete it may be out of date.

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People may have to be employed or avoid their primary duties for the duration of the research. People may not reply if emails or letters are used. There are many methods of collecting primary data and the main methods include: Questionnaires Interviews Observation Case-studies

Questionnaires Questionnaires are a popular means of collecting data, but are difficult to design and often require many rewrites before an acceptable questionnaire is produced. Advantages: Can be used as a method in its own right or as a basis for interviewing or a telephone survey. Can be posted, e-mailed or faxed. Can cover a large number of people or organisations. Wide geographic coverage. Relatively cheap. Disadvantages: Design problems. Questions have to be relatively simple. Historically low response rate (although inducements may help). Time delay whilst waiting for responses to be returned. Require a return deadline
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Interviews Interviewing is a technique that is primarily used to gain an understanding of the underlying reasons and motivations for peoples attitudes, preferences or behaviour. Interviews can be undertaken on a personal one-to-one basis or in a group. They can be conducted at work, at home, in the street or in a shopping centre, or some other agreed location. Types: Personal Telephone interviews

Case-studies The term case-study usually refers to a fairly intensive examination of a single unit such as a person, a small group of people, or a single company. Case-studies involve measuring what is there and how it got there. In this sense, it is historical. It can enable the researcher to explore, unravel and understand problems, issues and relationships. It cannot, however, allow the researcher to generalise, that is, to argue that from one casestudy the results, findings or theory developed apply to other similar case-studies. The case looked at may be unique and, therefore not representative of other instances.

Secondary Data: It refers to the statistical material which is not originated by the investigator himself but obtained from someone else's records, or when Primary data is utilised for any other purpose at some subsequent enquiry it is termed as Secondary data. This type of data is generally taken from newspapers, magazines, bulletins, reports, journals etc. e.g. if the data published by RBI on currency, National Income, Exports or Imports, is used in some other statistical enquiry, it will be termed as Secondary data. According to M.M. Blair, "Secondary data are those already in existence for some other purpose than the answering of the question in hand.
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Sources of secondary data Business journals Quality manuals Magazines broachers Internet books

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

Disadvantages It is very difficult to find sufficiently accurate secondary data. It is very difficult to find secondary data which exactly fulfils the need of present investigation. Extra caution is required to use secondary data. These are not available for all types of enquiries

2.3.4 Sample Design & Sample Size

A sample design is a definite plan for obtaining a sample from a given population. It refers to the technique or the procedure the researcher would adopt in selecting items for the sample. Sample design may as well lay down the number of items to be included in the sample i.e., the size of the sample. Sample design is determined before data are collected. There are many sample designs from which a researcher can choose. Some designs are relatively more precise and easier to apply than others.

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Convenience Sampling is used in analyzing consumer behavior and perception. Initially the questionnaire was administered to 114 respondents, randomly selected by mall intercepts.

Scaling Technique
Rating Scaling Technique is used in doing the survey. When we use rating scales (or categorical scales), we judge an object in absolute terms against some specified criteria i.e., we judge properties of objects without reference to other similar objects. These ratings may be in such forms as like-dislike, above average, average, below average, or other classifications with more categories such as like very muchlike somewhatneutraldislike somewhatdislike very much; excellentgoodaveragebelow averagepoor, alwaysoften

occasionallyrarelynever, and so on. There is no specific rule whether to use a two-points scale, three-points scale or scale with still more points. In practice, three to seven points scales are generally used for the simple reason that more points on a scale provide an opportunity for greater sensitivity of measurement.

2.3.5 Tool of Primary and Secondary Data Collection

The source of data used in this project was the primary source of data using following instruments: Observation Questionnaires Face-to-Face interaction

Data was collected through primary and secondary sources: Use of PRIMARY DATA in project Primary Data has been collected by Observation, using structured questionnaire, to be filled up by the customers coming to Vaango.
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Face to Face interaction is being done to know more about customer perception.

Observation SWOT Analysis

Use of SECONDARY DATA in project Secondary data has been collected from the company manuals and documents, internet, past sales trends.

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CHAPTER 3 FINDING & ANALYSIS

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Q1. Is this your first visit?

First Visit
Yes 42% No 58%

Fig. 3.1 Interpretation As Vaango, a South Indian Chain is a New Brand so its visibility is quite less. A lot of people are unaware about the Brand. Out of respondents, 42% of people are first time visitor and rests of them are visiting regularly. This shows that the people who are coming first time like the food and they prefer Vaango over other South Indian Restaurants. As the Brand focuses on Quality & Consistency, this means that the Brand is capable of retaining the customers.

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Q2. How frequently do you visit Vaango?

Visit to Vaango
Once a week 10% Daily 11% Occasionally 31%

Once a month 48%

Fig. 3.2 Interpretation Out of the respondents who are coming regularly, the question highlights how frequently they do come to Vaango. Only 10% are coming once a week & 11% are coming on daily basis, this shows; this includes the people who are working in the mall as South Indian Cuisine is light & healthy to have as compared to other food. Any change in the food quality, they could easily tell. 31% of people are coming occasionally. This means they like the food but they might not have the time, or the place is unreachable, or they are not much into South Indian food. 48% are coming once a month. They also like the food and enjoy coming to Vaango.

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Q3. How do you come to know about Vaango?

Come to Know about

Online 4% Others 41% Friends 30%

Flyers 25%

Fig. 3.3 Interpretation As the brand visibility is low, so it is very important to know how they come to know about Vaango. They have flyers distribution outside the mall, tie ups with big bazaar, easy day, lifestyle etc. at different outlets to distribute offer coupons along with their any purchase. 41% come to know through other sources which includes staying nearby, just passing by, word of mouth corporate tie ups & through their promotional activities. Only a few got to know through online.

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Q4. Do you like our food?

Like the Food

No 7%

Yes 93%

Fig. 3.4 Interpretation Almost everybody likes the food. This increases their customer retention and also make loyal to the brand. South Indian Cuisine is available anywhere so what the customer aspires is good quality & authenticity. 93% said Yes & 7% said No. According to the survey, food is upto the mark but still some people dint like the food because of their different tastes.

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

Difference in Food Taste

Slightly Different 11% Very Different 2%

Same 87%

Fig. 3.5 Interpretation Consistency is very important to retain the customer. They remain attached to the brand until they are getting same or improved taste everytime. Only a very few said that the taste was not upto the mark. So it is necessary to look into the problem & solve it immediately. 87% found the same taste every time they visit. 11% found it slightly different but it was acceptable.

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Q6. How was your overall experience?

Overall Experience
120 100 80 60 40 20 0 Variety Taste Quality of Sevice Music Good Average Needs Improvement

Fig. 3.6 Interpretation Variety: 76 said its good, 32 said average & 6 said it needs improvement. This shows that Vaango needs to add up more variety to increase their customer footfall. As this focuses only on South Indian food so they need to bring more varieties in their menus. Taste: 79 said its good, 24 said average & 11 said it needs improvement. Taste is the key factor that builds the image of any food brand. They have to take serious steps to improve the taste otherwise they will lose their customer. Quality of Service;
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78 said its good, 27 said average & 9 said it needs improvement. Customer delight is the most important aspect in order to retain them. Good service makes them a loyal customer and hence, improves the brand image. Music is good.

Q7. What changes would you like to see at Vaango to make you visit again & again? No self service Better food quality Home delivery More corporate tie ups Include more varities Improved Services

Q8. Please share 3 things you like and 3 things you don't like? Things that are liked by the customers are: Good environment Instant order placed & recvd, Great music Good quality food Smiling associates, Portion size Ambience, food, price

Things that are not liked:

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Self service No home delivery

Q9. Which other south Indian restaurant do you visit?

which other south Indian restaurant do you visit?

Others 33% Sarvana Bhawan 25%

Sagar Ratna 42%

Fig. 3.7

Sagar Ratna & Sarvana Bhawan are the core competitors of Vaango. According to the above analysis, 42% visited the Sagar ratna, 25% sarvana bhavan & others were 33% which included restaurants like Haldirams, dosa xpress etc. When the customers were asked about their preferences, they preferred Vaango over Sagar Ratna & others restaurants. Sarvana Bhawan remained the major threat.

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CHAPTER 4 LIMITATIONS OF THE STUDY

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Limitations: 1) Time During the internship, time was the main constraint. It was only 2 months, Due to this we were not able to take more samples and hence the sample size has to be restrained. 2) Vast area of study As there are 8 outlets, so it was not possible to get feedback from every outlet. Every outlet has its own problems. To understand the customer perception of Vaango, it is necessary to pin down the customer response from each outlet. 3) Lack of Interest Some respondents are not interested in giving the proper feedback so this has to take into consideration.

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CHAPTER 5 SUGGESTION/ RECOMMENDATION

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1. Brand Differentiation and Consumer Relevance to Drive Revenue Growth In the past, restaurants competed largely on the basis of food and operations. As the competition for stomach-share plays out, restaurants across and within segments will be competing more on brand management and loyalty, and their ability to make themselves more relevant to todays consumers. With increasing competition from convenience stores and Fast Casual, brand differentiation will be especially critical for fast-food restaurants, QSR concepts begin to step up and innovate by testing and implementing interesting tactics, including new daypart food strategies, kiosks and new delivery options. Diversified beverage offerings are also being explored. Winning restaurants are drawing in diners with happy-hour promotions and incentivizing increased spending by featuring exciting options such as krushers, coolers etc 2. Convenience, Value and Quality are Key As restaurants pursue new strategies, it is important to keep in mind that food quality is still No. 1 for consumers. But the packing order is their demand for a balance of highquality, on-the-go options with convenience, value-pricing and variety. Food quality is still king, and will need to be a central focus of any restaurants strategy and brand positioning but convenience stores are necessary. 3. Healthy Menu is Tablestakes Though food quality and price remain the key drivers of restaurant choice, the desire to eat healthy has become an increasingly important factor in consumers decision-making. Healthy menu options are no longer just good to have healthy is now tablestakes. Restaurants are beginning to recognize this, and while some have responded with new offerings such as healthy menu options for kids, diet conscious people.

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4. Mobile and Local Marketing are Great Untapped Opportunities To win in the coming brand wars, restaurants will need to employ a diverse media strategy to include social media, mobile marketing and local marketing. Many restaurants are exploring differentiated marketing tactics, but as a whole, says the firm, restaurants are underdeveloped in this area.. Digital and especially mobile marketing is the great untapped opportunity for restaurants to build brand loyalty and capture share. Its not just about TV, big ads and mass media anymore; its more about knowing diners, connecting through new media and then connecting on the local level as well. 5. Discounting & Promotions Will Continue But New Techniques Will Also Emerge With consumers unwilling to move on price, the meal deal, promotions, limited-timeoffers and discounts that have flooded the market for the past few years are necessary to stay, When it comes to pricing, restaurants need to be just as creative as consumers have been in figuring out ways to lower the bill. Some restaurants are already becoming better at pricing menus in a way that allows them to manage their margins. Advanced techniques include tiered pricing for example, charging higher prices for appetizers and drinks instead of for popular, center-of-the-plate items. Pricing should be a combined effort of the finance, marketing and product-development departments. But the foundation has to be analytics that take into account factors such as demographics, local competition, margin targets and costs.

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ANNEXURE

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Questionnaire

1. Is this your 1st visit to VAANGO? 2. How frequently do you visit Vaango? a) Daily b) Once a week c) Once a Month d) Occasionally 3. How did you come to know about Vaango? Online Friends Flyers Others

Yes

No

4. Do you like our food?

Yes

No

5. Did you find any difference in the food taste when compared to your earlier visits? Same Slightly Different Very Different

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

Variety Taste Quality of service Music

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7. What changes would you like to see at Vaango to make u visit Vaango again & again? ______________________________________________________________________ 8. Please share 3 things you Like & 3 things you dont like about Vaango? Likes 1) ..................................... 2) ..................................... 3) ..................................... Dislikes 1)..................................... 2)..................................... 3).....................................

9. Which other south Indian restaurant do you visit and what do you like the most about it? Sagar Ratna Sarvana Bhawan Any Other (Please Specify).................................................

Help us know you better: Name:... DOB.. Email:.. Anniversary. Phone no

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BIBLIOGRAPHY

BOOKS:
Kumar Ranjit (2009) Research Methodology, 2nd edition, Pearson Education, New Delhi Cooper Donald and Schindler P.S. (2009) Business Research Methods, 9th edition, Tata McGraw Hill, New Delhi Kotler Philips, Marketing Management Analysis, Planning Implementations & Control Edition, 1998. Prentice Hall of India Ltd. New Delhi. Zeithaml V.A., Bitner M. J. and Pandit A. (2008), Services Marketing, 5th Edition, Tata McGraw Hill Publishing Co. Ltd. New Delhi.

WEBSITES:
Company Website:

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

Other References: www.fnbnews.com www.foodmarketresearch.com www.facultyjournal.com

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