Project report
By
And
Student Id 3717537
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Initial Marketing Plan – Long John Silver’s in India
EXECUTIVE SUMMARY
Located in the southern part of Asia and bordered by sea on three sides, India is a
land of rich cultural heritage. Having A population of more than 1.15billion which speak
more than different races and religion and peoples speaking more 1600 Languages, different
dressing styles and food diets India is truly a land of diversity. India is a has a collective
culture and which is visible in the Indian family and the Indian style of business. Even though
some parts of the country is developed, most regions still are underdeveloped. The literacy
rate of India is 65.38% and thus the main form of media is television, radio and newspaper. In
communication is done more with voice and picture than with words. Words would be use in
the developed area of the country. Hinglish is the mix of English and Hindi has become a
subculture in India. India is an emerging market in today’s world with a GDP growth of 6.5%
in 2009 and industrial growth rate of 7.6%.
In 1969, Long John Silver’s was incorporated by Kentucky, U.S.A. The theme behind
the restaurant was stimulated by Stevenson's classic story Treasure Island. The name itself is
adapted from a pirate known as Long John Silver in the story. The company is a quick-
service seafood restaurant. In May, 2002, Long John Silver's was acquired by Yum! Brands.
The target market in India is Mumbai, and we aim to target the families, working
class and college students. McDonalds and KFC are the main competitors for Long John
Silver’s in Mumbai. With the growing market size, consumer buying habits and taste in
Mumbai along with the government support, Mumbai is the place to be in India for Fast Food
Industry.
In the Marketing Plan of our report we have written in detail about Long John Silver’s
Product Strategy, Promotion Mix, Distribution Network and Pricing Strategy. The estimation
and breakup of the budget for the Marketing Strategy along with the various resource needed
to establish Long John Silver’s in Mumbai is stated.
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Initial Marketing Plan – Long John Silver’s in India
CONTENTS
I. CULTURAL ANALYSIS 6
1. History 6
2. Geographical Setting 6
A. LOCATION 6
B. CLIMATE 6
C. TOPOGRAPHY 7
3. Social Institution 7
A. INDIAN FAMILY 7
B. INDIAN EDUCATION 7
C. POLITICAL SYSTEM 7
D. LEGAL SYSTEM 8
E. SOCIAL ORGANIZATIONS 8
F. BUSINESS CUSTOMS AND PRACTICES 8
4. Religion 9
5. Living Conditions: 9
A. DIET AND NUTRITION 9
B. HOUSING AND CLOTHING 9
6. Language: 10
1. Introduction 11
2. Population 11
3. Economic Statistics And Activity (CIA - World Fact Book, 2009) 11
4. Agriculture and Industry 12
5. Export – Import 12
6. Transport System 12
7. Communication 12
8. Media 13
1. Introduction 14
2. The Product 14
A. EVALUATION 14
B. PROBLEMS 15
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Initial Marketing Plan – Long John Silver’s in India
3. The Market 15
A. DESCRIPTION OF THE MARKET 15
B. COMPETITORS 16
C. MARKET SIZE 18
D. GOVERNMENT PARTICIPATION 18
V. REFERENCES 23
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Initial Marketing Plan – Long John Silver’s in India
I. CULTURAL ANALYSIS
1. History
India is a land of rich cultural heritage dating back more than 4000 years.
Indian history and culture have evolved with the integration of various peoples who
have migrated and brought along their influences into the Indian melting pot. One of
the earliest cultures of the Indus Valley Civilization developed along the banks of the
Indus River, due to the availability of fertile soil that nourished farming communities.
Great emperors such as Asoka who was responsible for the spread of Buddhism and
Akbar who brought Mughal influences to architecture have ruled the nation in periods
of history. Dynasties such as the Cholas, Lodhis and Tughlaqs have flourished in
India. Due to its favourable sea routes that facilitated trade and commerce, European
powers such as Portugal, France, the Netherlands and the U.K established trading
posts and colonies in India in the 16th century. Their influences can be found in
architecture, urban planning and the Indian legal system. India achieved independence
in 1947. (Indian History.com, 2008 and India Child, 2004)
2. Geographical Setting
A. Location – India is located in the southern part of Asia and is bordered by the
Arabian Sea in the west, the Bay of Bengal in the east and the Indian Ocean in
the South. It is bordered by Bangladesh in the east, Pakistan and Afghanistan
in the north -west and Sri-Lanka in the south. It covers an area of 3287263
sqkm which is more than one third size of the USA and the length of its
coastline is 7000km. (Megrisoft - India Book, 2003)
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Initial Marketing Plan – Long John Silver’s in India
a. The Himalayas
3. Social Institution
A. Indian Family – Indian family is close knit and people prefer to stay in a Joint
family under one roof. People like to work, eat in a group and support each
other. Even though with westernization, urbanization and secularization the
Indian values and culture keep people close to each other in a joint family.
People are generally very loyal towards their family. The role of Women in
Indian society has changed to a great extent and today women and men are
given equal rights and Indian women has stepped out to work and have
achieved great success. (U.S. Library of Congress, 1995)
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Initial Marketing Plan – Long John Silver’s in India
Vice President and the Council of ministers led by the Prime Minister.
(Oracale Education Foundation, 2009)
Political Parties in India Congress, Bharatiya Janata Party (BJP), Janata Dal,
Communist Party of India (Marxist) and the Communist Party of India are the
main and prominent national Parties of the Country. There are several other
state parties. (Oracale Education Foundation, 2009)
The government of India is fairly stable and is currently under the power of
the Congress party with support from other parties.
D. Legal system – The Constitution, legislation, customary law and the case law
form the main source of Indian legal structure. The Supreme Court of India is
the highest body in the Indian Judicial system. Every state has a High Court
under which there is Subordinate court. India follows s the common law
system along with the code law for some of its acts. In India patents and
trademarks atc are not followed strictly. (Mongabay.com, 2010)
E. Social Organizations – The social class in India can be divided into 5 classes
namely Brahman, Kshatriya, Vaishya, Shudra and Dalit. Each of the Indian
caste have sub caste or jatis that are correlated to the class. There are above
2000 ethnic groups in India. The Indian race is classified as: Turko- Iranian,
Indo- Aryan, Scytho Dravidian type, Aryo Dravidian type, Mongolo Dravidian
type, Mongolo type n Dravidian type. (Mongabay.com, 2010) The major sun
culture seen in India is the Hinglish Subculture - Hinglish is the mix of
English and Hindi most commonly used by college and school children in
their daily lives. (Abhi, 2004) Its gaining popularity.
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Initial Marketing Plan – Long John Silver’s in India
4. Religion
India is a multi religious race. There are several religions in India like:
5. Living Conditions:
A. Diet and Nutrition – Indian are mostly Vegans thus The per capita vegetable
consumption in India is 86 g a day while the per capita meat consumption in
India is 5.35 pg/ annum and the per capita meat availability is 14.65 grams/
day. Food in India is known for its different types of spices and is prepared in
a unique way. There are many categories within the Indian cuisine North
Indian food, West Indian food, South Indian food and the Fast Indian food.
(Indian Food Forever Webesite, 2008) About 35% of the population in India
face the problem of food scarcity as they consume less than 80% of the
minimum energy requirements. According to a census around 50% of the
world’s hungry live in India. (Shukla, 2008)
B. Housing and Clothing – In the rural areas in India people live in small
villages and build their houses close to each other so that they can help each
other. Whereas in the urban areas, which are more developed we see people
living in buildings and villas. (Michigan State University Extensiion, 2000)
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Initial Marketing Plan – Long John Silver’s in India
As far as the clothing is concern, the traditional Indian dress for women is Sari
for women and Dhoti and Kurta for men. Senior executives in India wear
suites at work and women wear Salwar kameez or suites for work. (Maps of
India, 2009)
6. Language:
India has 1652 languages spoken within the country. (CLP, 2009 ) The
popular languages spoken within the country are Hindi, Sanskrit, English, Bengali,
Gujarati, Kannada, Kashmiri, Malayalam, Marathi, Tamil, Oriya, Telugu, Punjabi and
Urdu. (Oracale Education Foundation, 2009) Even though Hindi is the local language,
the language Hindi also differs from state to state Mumbai Hindi would differ from
Delhi Hindi.
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Initial Marketing Plan – Long John Silver’s in India
The Indian economy is primarily agricultural with 75% of the work force
depending on agriculture for its livelihood. The services sector is also an important
contributor to growth and employment in the country. Indian industries include
textiles, chemicals, food processing, steel, transportation equipment, cement, mining,
petroleum, machinery and software. India is an open market economy whose growth
has accelerated due to the liberalization in the 1990s which resulted in the inflow of
foreign investment and boosted foreign trade. (India Online, 2010)
2. Population
India is the second largest populated country in the world after China. As per
the July 2010 census the population has increased over 1.15billion out of which
531,277,078 are Males and 495,738169 are females. Migration rates: -0.05
migrant(s)/1000 population (India Online, 2010)
• Agriculture- 17.5%
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Initial Marketing Plan – Long John Silver’s in India
• Industry: 20%
• Services: 62.6%
The major agricultural products in India are rice, potatoes, onion, oilseed,
wheat, tea, cotton, jute, sugarcane, lentils, onions, ; dairy products, sheep, goats,
poultry; fish. Major industries in India are textiles, chemicals, steel, food processing,
cement, petroleum, pharmaceuticals, software, transportation and mining industry.
Industrial production Growth rate: 7.6% (2009) (CIA - World Fact Book, 2009)
5. Export – Import
India export includes petroleum products, machinery, iron and steel, spices,
apparel, precious stones and chemicals. Exports in India in 2009 accounted to $165
billion and the major export partners of India are: UAE-12.3%, USA- 11.7%, China-
5.4% and Singapore- 4.5%.Major Import commodities: India mainly imports crude
oil, machinery, fertilizer, chemicals, iron and steel.Imports in India accounted for
$253.9 billion and the major Import partners of India are: China- 10.8%,Saudi Arabia-
6.9%, USA- 6.7%, UAE-6.7% and Iran-4.2%. (CIA - World Fact Book, 2009)
6. Transport System
7. Communication
Communication system in India is well developed and there are various forms
of communication used across the country. The most popular form of communication
is the mobile phone which is used extensively throughout the country. The Public
phone booth (PCO) is also very commonly used which enables people to make local,
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Initial Marketing Plan – Long John Silver’s in India
STD and even ISD calls. One can also use postal services, Cyber-cafes as a means of
communication in India. (India Travel Agent, 2010)
8. Media
Media plays a vital role. Different forms of Media available in India are,
Television, Radio, Print and Internet. With a literacy rate of 52% there are 398 daily
newspapers being circulated in the country. There are 562 television stations and 312
radio stations across the country. 4,600,000 people have personal computers with
above 5,000,000 people have access to the Internet. (Advameg Inc, 2010)
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Initial Marketing Plan – Long John Silver’s in India
In 1969, Long John Silver’s was incorporated by Kentucky, U.S.A. The theme
behind the restaurant was stimulated by Stevenson's classic story Treasure Island. The
name itself is adapted from a pirate known as Long John Silver in the story. The
company is a quick-service seafood restaurant. In May, 2002, Long John Silver's was
acquired by Yum! Brands, Inc and became a part of the brand family along with Taco
Bell, Pizza Hut, KFC and A&W Restaurants. The meals that the restratuant serves are
batter-dipped fish, chicken and shrimp, along with fries, coleslaw and hushpuppies.
Recently the company has also introduced a new Freshside Grille menu, which has a
delicious premium seafood selection that is more toward the health conscious
consumer. (Long John Silver's, 2008)
2. The Product
A. Evaluation – Long John Silver’s is a fast food sea food restaurant. Based on
the five product characteristics that influence how attitudes are created
towards new products, let see where Long John Silver’s Stands
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Initial Marketing Plan – Long John Silver’s in India
B. Problems – Based on the above evaluation, the major problem Long John
Silver’s would face would be that the restaurant cannot give a trial for the
service and food it renders. The restaurant may also have a resistance from
consumers who are Vegans as it portraits it’s self as a sea food restaurant.
3. The Market
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Initial Marketing Plan – Long John Silver’s in India
relax and dine. Due to the increase of mall in the city, consumers
prefer a place where they can dine after they have shopped within the
mall. Thanks to the media Indian consumer habits are also becoming
more westernised day by day. (USDA, 2008)
B. Competitors
The two major competitors for Long John Silver’s in Mumbai are Mc
Donald’s and KFC
a. Mc Donald’s
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Initial Marketing Plan – Long John Silver’s in India
scheme along with the Happy Price Menu – offers certain products at
affordable price of 25 Rs. In terms of distribution the company only
sells through it franchisee outlet. (Mc Donald's India, 2010)
Beside the above core brand, Mc Donald’s Offer various add on like
French Fries , Potato Wedges, Hot and Cold Beverages and Deserts.
(Mc Donald's India, 2010)
b. KFC
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Initial Marketing Plan – Long John Silver’s in India
Package Paper Bucket or Box In a paper box In a paper box In a paper box
(depending on the
quantity)
C. Market Size - The market size has had a 42% growth in the previous five years.
The fast food industry sales estimates for 2010 is seven lakh crores rupees
compared to its five lakh crores rupees annually estimation in 2008 by Indian Food
Report 2008. Estimated sales for Long John Silver’s in 2011 would be five crores
(estimating that the individual in Mumbai eat out 6 times a month with majority
spending 150 – 200 Rs per outing). (Nahar, 2010)
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Initial Marketing Plan – Long John Silver’s in India
A. Marketing Objective – The market has been segment for the purpose of target
market. We mainly are targeting the seafood lovers in Mumbai. Along with
that we have three main target markets - The family, working people and
College Students. Our expected sales for year 2011 would be Rs 3 Lakh
Crores. After eliminating the total cost of production, we would be left with a
profit estimate of Rs 1 Lakh Crores. At the start our market penetration would
be low, but we plan to increase it by 2012.
B. Product – Our core component of the product is the food we serve along with
our hospitality. In terms of the core product we have modified the Menu to
attract a more Indian crowd, the menu will include some vegetation burgers
and other vegetation add – ons. We plan to introduce a little spicier brand
along with the original as Indian love spicy food. In terms of hospitality, we
will have to appoint staff would know the local language plus English. The
packaging component of our product would be the brand Long John Silver’s
itself. This component will also be modified in terms of price of the products,
it would be much cheaper in terms of dollars in India, and the food would be
wrapped in paper and served in paper plates. The supported services
component of the product would be the employees, the ambience of the
restaurant, along with local food suppliers and local logistic company
Radhkrishna Foodland Pvt.
C. Promotion Mix – For Long John Silver’s In India we has chosen the following
Promotion Mix
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Initial Marketing Plan – Long John Silver’s in India
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Initial Marketing Plan – Long John Silver’s in India
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Initial Marketing Plan – Long John Silver’s in India
2. Budget
Amount
Particulars
(00,00,000 Rupees)
Selling Expense 5
Adverting Expense 3
Promotion Expense 3
Distribution Expense 4
Other cost 25
Total 140
3. Resource Requirement
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Initial Marketing Plan – Long John Silver’s in India
V. REFERENCES
Abhi. (2004, November 23). India's Hinglish Subculture - Sepia Mutiny. Retrieved
June 23, 2010, from Sepia Mutiny Blog Website:
http://www.sepiamutiny.com/sepia/archives/000732.html
Advameg Inc. (2010). India Press - Press Reference. Retrieved June 23, 2010, from
Press Reference Website: http://www.pressreference.com/Gu-Ku/India.html
CIA - World Fact Book. (2009). CIA - World Fact Book - India. Retrieved June 23,
2010, from CIA - World Fact Book: https://www.cia.gov/library/publications/the-
world-factbook/geos/in.html
CLP. (2009 , January 1). The CLP - India Fact Sheet. Retrieved June 23, 2010, from
http://clpmag.org/article.php?article=India-Fact-Sheet_200
Daniel, A. (2005, April 21). Religion In India - Adaneil. Retrieved June 23, 2010,
from Adaneil Info Site: http://adaniel.tripod.com/religions.htm
Gartenstein, D. (2008, April 2). What Licenses are Required to Start a Restaurant in
Maharashtra, India? - eHow.com. Retrieved June 21, 2010, from eHow.com:
http://www.ehow.com/way_5567085_licenses-start-restaurant-maharashtra-india.html
I Love India. com. (2004, June 3). Literacy Rate in India - iloveindia.com. Retrieved
June 24, 2010, from I Love India.com: http://www.iloveindia.com/population-of-
india/literacy-rate.html
India Child. (2004, January 1). History Of India - Indiachild.com. Retrieved June 20,
2010, from India child: http://www.indianchild.com/history_of_india.htm
India Education. (2009, December 3). Home - India Education. Retrieved June 23,
2010, from India Education: http://www.indiaedu.com/education-india/
India Online. (2010). Indian Economy & Industry of India - India Online. Retrieved
June 23, 2010, from India Online Website:
http://www.indiaonline.in/Profile/Economy/
India Travel Agent. (n.d.). Local Transportation in India. Retrieved June` 23, 2010,
from India Travel Agent Wensite: http://www.india-travel-agents.com/india-
guide/local-transport.html
India Travel Agent. (n.d.). Modes of Communication in India. Retrieved June` 23,
2010, from India Travel Agent Wensite: http://www.india-travel-agents.com/india-
guide/communication.html
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Initial Marketing Plan – Long John Silver’s in India
Indian Food Forever Webesite. (2008, April 23). Indian Food - Foods Of India.
Retrieved June 23, 2010, from Indian Food Forever Webesite:
http://www.indianfoodforever.com/food-guide/indian-food-cuisine.html
Indian History.com. (2008, January 1). Home - Indian History.com. Retrieved June
20, 2010, from Indian History : http://www.indhistory.com/
KFC Restaurant . (2008, January 1). KFC Menu India. Retrieved June 20, 2010, from
KFC India: http://www.kfc.co.in/KFCAllMenu.aspx
Krishnan, D. (2007, April 16). Mumbai Magic - The Races Of India. Retrieved June
23, 2010, from Mumbai Magic Blogspot: http://mumbai-
magic.blogspot.com/2007/04/races-of-india.html
Long John Silver's. (2008, January 1). Long John Silver's: The Tale of Long John
Silver's. Retrieved June 25, 2010, from The Tale of Long John Silver's Coporate
Website: http://www.longjohnsilvers.com/about/
Maps of India. (2009, December 31). India Dress - Mapsofindia.com. Retrieved June
23, 2010, from Maps of India Website: http://www.mapsofindia.com/india-dress.html
Maps Of The World. (2008, January 1). Mumbai Geogrphy - Maps of the World.
Retrieved June 20, 2010, from Maps Od The World:
http://www.mapsofworld.com/cities/india/mumbai/geography.html
Mc Donald's India. (2010, January 1). Menu - Mc Donald's India. Retrieved June 20,
2010, from Mc Donald's India: http://www.mcdonaldsindia.com/menu.html
Megrisoft - India Book. (2003, June 1). India Geography. Retrieved June 19, 2010,
from Indiabook.com: http://www.indiabook.com/india-information/indian-
geography.html
Mongabay.com. (2010, January 2). India - The Judiciary. Retrieved June 23, 2010,
from Mongobay.com: http://www.mongabay.com/history/india/india-
the_judiciary.html
Nahar, A. (2010, May 17). Growth Of The India Fast Food Industry and The
Opportunities it offers. Retrieved June 21, 2010, from THE INDIA FRANCHISE
BLOG: http://franchiseinindia.blogspot.com/2010/05/growth-of-india-fast-food-
industry-and.html
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Plan Travel. (2009, April 3). India Topography - Plantravel.in. Retrieved June 22,
2010, from Plan Travel .in: http://www.plantravel.in/html/traveling-in-india/india-
topography.html
Radhakrishna Foodland Pvt. Ltd. (2009, January 1). Food Service - Radhakrishna
Foodland Pvt. Ltd. Retrieved June 25, 2010, from Radhakrishna Foodland Pvt. Ltd:
http://www.rkfoodland.com/?q=foodservice
Shukla, S. (2008, October 13). Assam Times - World food scarcity and the challenges
of climate change and bio energy. Retrieved June` 23, 2010, from Assam Times
Website: http://www.assamtimes.org/editorial/2192.html
U.S. Library of Congress. (1995, December 20). Family - India - Country Studies.
Retrieved June 20, 2010, from Country Studies : http://countrystudies.us/india/83.htm
USDA. (2008, January 1). Passage to India - USDA. Retrieved June` 20, 2010, from
Usda: http://www.fas.usda.gov/htp/highlights/2001/india.pdf
Wang Hospitality Equipment Pvt. Ltd. (2005, January 1). Company Profile - Wang
Hospitality Equipment Pvt. Ltd. Retrieved June 25, 2010, from Wang Hospitality
Equipment Pvt. Ltd: http://www.wanghospitality.com/company_profile.htm
World Wide Tax.com. (2009, January 18). India Business Practice and Business
Etiquette Tips - The World-Wide Tax.com. Retrieved June 23, 2010, from The
World-Wide Tax Website: http://www.worldwide-tax.com/india/indpractice.asp
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