A PROJECT REPORT

ON

“COMPARATIVE STUDY OF CONSUMER BEHAVIOUR

PREFERANCE TO PIZZA HUT, MCDONALD & KFC IN NOIDA &
GREATER NOIDA (NCR)”

FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENT OF DEGREE

OF B.B.A. FROM C.C.S. UNIVERSITY, MEERUT

UNDER THE GUIDANCE OF SUBMITTED BY:-

MS. AISHWARYA SINGH ABHISHEK SHARMA

FACULTY CB Roll No. 8795595
BBA: 2011-2014

HIERANK BUSINESS SCHOOL, NOIDA

 ACKNOWLEDGEMENT

I am highly indebted to Ms. Aishwarya Singh, for her valuable inputs at the various
stages of the project and for providing valuable advice in designing and implementing
various research tools to collect relevant data.

I am thankful to those individuals who gave in their precious time in filling the
questionnaire and providing their immense cooperation without which the project would
not have been possible.

Finally, I would like to state that the project not only fulfilled an academic requirement,
but would also help me in future endeavors in the years to come

ABHISHEK SHARMA
 DECLARATION

I, Abhishek Sharma of Bachelor of Business Administration from Hierank Business

School, Noida, Uttar Pradesh hereby declare that I have completed project on
“COMPARATIVE STUDY OF CONSUMER BEHAVIOUR PREFERANCE TO
PIZZA HUT, MCDONALD & KFC IN NOIDA & GREATER NOIDA (NCR)” as
part of the course requirement.

I further declare that the information presented in this project is true and original to the
best of my knowledge.

ABHISHEK SHARMA
 CONTENTS

TITLE PAGE NO.

1. Preface ------------------------------------------

2. Executive Summary ------------------------------------------

3. Introduction ------------------------------------------

4. Company Profile ------------------------------------------

5. Comparative Analysis ------------------------------------------

6. Objective -------------------------------------------

7. Marketing Mix -------------------------------------------

8. SWOT Analysis -------------------------------------------

9. Research Methodology -------------------------------------------

10. Project Activity & Sequence -------------------------------------------

11. Data Analysis -------------------------------------------

12. Finding -------------------------------------------

13. Recommendation -------------------------------------------

14. Conclusion -------------------------------------------

15. Photo Gallery -------------------------------------------

16. Bibliography -------------------------------------------

17. Questionnaire -------------------------------------------

 PREFACE

Summer training is a very important aspect in the study curriculum of our institute

Marketing Research is an essential tool in the marketing planning and process and

plays in the business decision-making process. Its application is effective in all

industrial, commercial and consumer markets. More importantly, the results that

can be achieved from the marketing research process are the real objective of the

business.

In the recent time the market sentiments has completely changed and it has become

completely a buyer market. In the Retail sector especially there is a lot stress on who

provides better services and of course at a better price. Since Indian market is perhaps

very much price conscious market in the world. In the retail sector there are many players

that are increasing their market share by boosting their sell and try to get more popular

between consumers. Since retail sector was less effected by the recession I was assigned

the job to work out a model on retail.

 EXECUTIVE SUMMARY

This research report is based on the topic “Consumer Behavior - Pizza Hut,

McDonald, KFC, & Others in Noida & Greater Noida (NCR)”.Unlike any other

previous studies conducted by others researchers, this research is conducted not only in

an overall Indian context but more on the reality grounds of a newly emerging or

transforming rural area into a highly urbanized area and also focuses on low-

involvement, non-durable products rather than high-involvement purchases of consumers.

Furthermore, this research is characterized by its investigation of purchase situations by

various sections / groups of the society ranging from children’s - teenage - a typical

consumer. The research also examines the role of social similarity and dissimilarity in

consumers’ evaluations of a non durable product. Some preliminary findings are also

reported which was selected as the primary data.

The outcomes of this research will provide marketers with valuable insights into the

extent of influence of the non-durable products on various sections of the consumer &

also provide a valuable guideline to the medical representatives of its ill effects on the

health of the consumers which are highly

addicted to such junk lifestyle, thus helping them to plan their medical attention on these

highly susceptible groups to the health ailments like obesity, high blood pressure etc.
Research Highlights

The Indian food retail industry generated total revenues of $168 billion in 2008, this

representing a compound annual growth rate (CAGR) of 5.7% for the period spanning

2002-2008.

The food specialists were the industry's most lucrative segment in 2008, generating

total revenues of $48.3 billion, equivalent to 28.8% of the industry's overall value.

The performance of the industry is forecast to follow a similar pattern, with an

anticipated CAGR of 5.4% for the period 2006-2011 expected to drive the industry to

a value of $218.2 billion by the end of 2011.

 INTRODUCTION

Traditionally retailing in India can be traced to :

The emergence of the neighborhood ‘Kirana’ stores catering to the convenience of the

consumers era of government support for rural retail: Indigenous franchise model of store

chains run by Khadi & Village Industries Commission 1980s experienced slow change as

India began to open up economy.

Textiles sector with companies like Bombay Dyeing, Raymond's, S Kumar's and Grasim

first saw the emergence of retail chains.

Later Titan successfully created an organized retailing concept and established a series of

showrooms for its premium watches.

The latter half of the 1990s saw a fresh wave of entrants with a shift from Manufactures

to Pure Retailers.

For e.g. Food World, Subhiksha and Nilgiris in food and FMCG; Planet M and Music

World in music; Crossword and Fountainhead in books.

Post 1995 onwards saw an emergence of shopping centers, mainly in urban areas, with

facilities like car parking targeted to provide a complete destination experience for all

segments of society.

Emergence of hyper and super markets trying to provide customer with 3 V’s - Value,

Variety and Volume.

Expanding target consumer segment: The Sachet revolution - example of reaching to the

bottom of the pyramid. At year end of 2000 the size of the Indian organized retail

industry is estimated at Rs. 13,000 crore

 RECENT TREND

 Retailing in India is witnessing a huge revamping exercise

as can be seen in the graph

 India is rated the fifth most attractive emerging retail

market: a potential goldmine.

 Estimated to be US$ 200 billion, of which organized

retailing (i.e. modern trade) makes up 3 percent or US$ 6.4

billion

 As per a report by KPMG the annual growth of department

stores is estimated at 24%

 Ranked second in a Global Retail Development Index of 30

developing countries drawn up by AT Kearney.

 DISTRIBUTION NETWORK

McDonald
& others
PP

Connaught
Place & other

C&F

Agencies

Sub Distributor Retailers

Retailers
Selected Factors Affecting Consumer Perceptions of Service
Retailing
Lessons in Service Retailing
Elements Contributing to Effective Channel Relationships
 The wheel of retailing of Non –Durable Products

The wheel of retailing lies on following principles:

1. There are many price sensitive shoppers who will trade customer service, wide
selection and convenient locations for lower price.

2. Price sensitive buyers are not loyal.

3. New institution have lower operating cost than existing institution..

4. As one move up the wheel, they typically do so to increase sales, broaden

the target market, improve their image.

High-end strategy
• High price
• Excellent facilities
• Upscale consumers

Medium strategy
• Moderate pricing
• Improved facilities
• Broader base of value
• and service
• conscious consumers

Low-end strategy
• Low price
• Limited facilities
• Price sensitive consumers
 COMPANY PROFILE

Type Wholly owned subsidiary

Founded Wichita, Kansas, USA(1958)

Headquarters Addison, Texas, USA

Dan and Frank Carney (founders)

Key people David C Novak (Chairman)
Scott Bergren (President)

Industry Restaurants

Italian-American cuisine
Products
pizza · pasta · desserts

Revenue Unknown

Employees 30,000+

Parent Yum! Brands (1997-present)

Pizza Hut is a restaurant chain and international franchise based in Addison, Texas, USA
(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 the world's
largest pizza restaurant chain and is a subsidiary of Yum! Brands, Inc., who has
approximately 34,000 restaurants, delivery-carry out units, and kiosks in 100 countries.

It is one of three major pizza chains headquartered in suburbs of Dallas. Mr. Jim's Pizza
and Pizza Inn are the others.
 Type Public (NYSE: MCD)

May 15, 1940 in San Bernardino, California;

Founded
McDonald's Corporation, 1955 in Des Plaines, Illinois

Dick and Mac McDonald McDonald's restaurant concept;

Founder(s)
Ray Kroc, McDonald's Corporation founder.

Headquarters Oak Brook, Illinois, USA

Number of
31,000+ worldwide[1]
locations

Area served Worldwide

James A. Skinner
Key people
(Chairman) & (CEO)

Industry Restaurants

Fast Food
Products (hamburgers • chicken • french fries • soft drinks • coffee • milkshakes • salads • desserts •
breakfast)

Revenue ▲ US$ 22.79 billion (2007)[2]

Operating ▼ US$ 3.879 billion (2007)[2]

 income

Net income ▼ US$ 2.359 billion (2007)[2]

Total assets ▲ US$ 29.391 billion (2007)

Total equity ▼ US$ 15.279 billion (2007)

Employees 400,000 (2008)[2]

McDonalds.com
Website
This box: view • talk • edit

McDonald's Corporation is the world's largest chain of fast food restaurants, serving

nearly 47 million customers daily. McDonald's primarily sells hamburgers,

cheeseburgers, chicken products, french fries, breakfast items, soft drinks, milkshakes,

and desserts. More recently, it has begun to offer salads, wraps and fruit. Many

McDonald's restaurants have included a playground for children and advertising geared

toward children, and some have been redesigned in a more 'natural' style, with a

particular emphasis on comfort: introducing lounge areas and fireplaces, and eliminating

hard plastic chairs and tables.

In addition to its signature restaurant chain, McDonald’s Corporation held a minority

interest in Pret A Manger (a UK-based sandwich retailer) until 2008, and owned the

Chipotle Mexican Grill until 2006 and the restaurant chain Boston Market until 2007.

The company has also expanded the McDonald's menu in recent decades to include
alternative meal options, such as salads and snack wraps, in order to capitalize on

growing consumer interest in health and wellness.

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.

 Type Wholly owned subsidiary

Genre Southern fried chicken

1929 (original) (North Corbin, Kentucky)

Founded
1952 (franchise) (South Salt Lake, Utah)

Founder(s) Harland Sanders

Headquarters Louisville, Kentucky

Gregg R. Derrick President

Key people
Harvey R. Brownlea COO

Industry Fast food

Products Fried Chicken and related Southern foods

Revenue $520.3 million USD (2007)[1]

Employees 24,000 (2007)[1]

Website http://www.kfc.com

KFC, founded and also known as Kentucky Fried Chicken, is a chain of fast food

restaurants based in Louisville, Kentucky. KFC was a wholly owned subsidiary of Tricon
from 1997–2002, but changed hands to Yum! Brands in 2002. Due to strict laws

regarding public signs in the 1970s, the chain is advertised as Poulet Frit Kentucky or

PFK in the province of Quebec in Canada. (In France, however, the chain is known as

KFC.)

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, sides

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, KFC, in 1991. Starting in April 2007, the

company began using its original appellation of Kentucky Fried Chicken again 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, the company

continues to use the abbreviation KFC freely in its advertising. Internationally the

company is still known as KFC.

 1. MARKET SHARE

Market analysis showed that McDonald has a 50% market share in Noida & Gr. Noida

region compared to 30% of Pizza Hut & 20% by KFC. This shows clearly that

McDonald has the biggest market share and it works for them as a major strength as

they have a large group of influencers for them who can affect the potential customer's

decision. Analysis also clearly shows that brand name too plays an important role in

deciding the preference by the customer .

MARKET SHARE

KFC, 20%
PIZZA HUT, 30%
Pizza hut
McDonald
KFC
McDONALD, 50%
 1. CUSTOMER SATISFACTION

If we see at McDonald and other food major retail together we see that McDonald has

a larger base of satisfied customer across NCR belt. But Pizza Hut is fast catching up.

Customer satisfaction is a major strength for Idea because of the service they provide

with their product. Customer satisfaction level for Pizza Hut & Other non- durable

products retailers is not very good as there were lot of complaints of errors in billing

and customer services etc., which on overall level is not good because even a satisfied

customer is not a loyal customer when it comes to switching over to another.

CUSTOMER SATISFACTION

OTHERS
43%
McD
others
McD
57%
 2. Comparative Analysis of Consumer Preference on weekends.

Comparative Analysis was carried between the non-durable outlets & was found that

most of the consumers would to prefer to visit the McDonald than to visit in other outlet.

Also it was also found that the second preference was given or voted to the Pizza Hut

brand & KFC was liked to a limited visitors because of the non-veg Flavor it serves.

CONSUMER PREFERANCE

OTHERS, 10%
KFC, Pizza Hut, 30%
10% Pizza Hut
McDonald
KFC
OTHERS

McDonald, 50%
3. Classifying Customer Services
Following are some of the objectives enlisted below:

1. To analyze the customers perception about food retail industry.

2. To find out the competitive edge of the company over the competitors.

3. To analyze the market size of the food retail industry.

4. To study the consumer preference about different non- durable products.

5. To study the urban / modern food habit/lifestyle trend.

 FOUR P’S OF THE PRODUCT

PRODUCT: Non-durable Products has wide range of variety that consists of more than

hundred variety available in the market.

PRICE: The price of these non durable is very economical & affordable. In novelty item

the price of the flavors varies from Rs.20 to Rs250. The pricing strategy of most retailers

is, to target each income group of the society. The cheaper price of products is meant for

targeting the people with low income. Along with the low income group the retailers are

also targeting medium as well as the premium segment by providing different flavors at

different prices.

PLACE: Widely distributed in urban important locations like Greater Noida (NCR) &

Noida. All the locations had the same outlets & standard & showed hardly any variance

from the other outlets of the same company.

PROMOTION: McDonald, KFC, Pizza Hut are well-established brands & highly

recognized. For promotion of the products the company gives advertisement in

newspaper and magazines & also uses the other mass media like television.
 SWOT ANALYSIS

STRENGTH:

1. Famous among teen & youngsters which contributes the bulk of the sale.

2. Takes less serving time period & hence saves time.

3. Instant service.

4. Highly delicious.

WEAKNESS:

1. Less or No sale during Morning hrs also termed as dead hrs.

2. Less Nutritious value.

3. Quality of service poor at some locations due to lack of training.

OPPORTUNITY:

a) Noida & Greater Noida (NCR) is one of the fastest growing place with people

having good income, hence one of the best place for the marketers to tap the

untouched market place.

 b) There is ample scope in the low priced segment as also in other categories where

consumers presently are dissatisfied with the quantity being provided i.e the price

being charged.

c) Food retails have the opportunity to capture the more evolved young adults and

children who are open to new products provided they meet their expectations.

THREAT:

a) New companies are entering the food retail industry.

b) Local retailers are growing at an alarming rate.

c) Good advertisement campaign from competitors.

RESEARCH DESIGN:

The research design prepared with great care keeping in mind the research objective. The

project was divided into two parts—parts ‘A’, part ‘B’.

RESEARCH APPROACH:

In the part ‘A’ the research was conducted by visiting to the various existing outlets of

McDonald, KFC, Pizza Hut & other retail outlet.

In the part ‘B’ the research was conducted by observation & through internet.

RESEARCH INSTRUMENTS:

The primary data collected for this study was done through detailed market survey by

means of unstructured interaction. The secondary data is collected through Internets &

details provided by the retailers.

SAMPLE PROCEDURE:

Sample Size: Approx. 150.

Universe: Noida & Greater Noida (NCR).

Time Period: Conducted Between 02nd April to 12th April’09.

The procedure adopted for sampling was on the basis of judgmental sampling.

LIMITATIONS:

 The study limit to Noida & Greater Noida (NCR) selected retail outlets.

 In many residential blocks shops located in corners of by lanes were difficult to

locate.

 The time duration was short for the completion of all activities.
 PROJECT ACTIVITY SEQUENCING

Start

Developing open and Collecting some

structured secondary
questionnaire data/informatio
n from various
sources

Conduct survey in
Noida & Gr. Noida
Study the
(NCR)
information

Compile and analyze

the collected
information

Do report Final Report

writing
This table shows the interested to take retailership for Non-durable
Products.
 Dealers Number YES NO

100 70 30

From the above graph it is found that 70% retailers are interested in non-durable

products. Only 30% retailers are not interested.

If yes, which brand would you like to go for:

Retailers McDonalds KFC Pizza Hut Others

100 40 20 30 10

The graph shows that out of hundred percent retailers 40% retailers favored Mc Donald

which was the max compared to the others & was followed by Pizza Hut which was 2nd

favourite while KFC was least preferred at 2%.

 Comparison of preference given by the customers to the different Non-

Durable Food Products:

160

140

120

100

80

60

40

20

0
Price Margin Quality Variety Pack. Avail. Taste CS Services

McDonald KFC Pizza Hut Others

From the above graph it is conclude that Amul is leading in the price and variety

preference but giving equivalent competition to other companies in quality, packaging

and availability. Amul is way behind in terms of services.

Mode of payment by customers :

Customers Cash Debit/Credit Card Security

100 60 20 20

The above graph shows that most of the customers prefer to pay by cash which occupies

most of the Pie Chart followed by the installment & security payment during big Party

Events.
Segmentation on the basis of the Gender:

Sample Gents Women Children/Teen

100 30 20 50

The above graph shows that the Teen/ Children’s were the most frequently visited

customers than gents or women coming individually.

Mode of purchase:

Retailers Cash down Installment Security

30 22 1 7

23%

3%

74%

Cash down Instalm. security

The graph shows that the 74% of existing retailers purchased their deep freezer form

Amul by paying cash. Only 23% of the retailers who have their shops on prime location

got deep freezer on security basis.

Which product is sold most?

Sample McAllo McFrench Pizza Chicken Roll Cold drinks &

Tikki Fries Ice-cream
150 48 12 28 11 51

The graph shows that McAllo Tikki & Cold Drink & Ice-cream were mostly preferred
By the consumers & the chicken roll (Non-veg) occupied the bottom position.
At what period of time customers comes in bulk:

Sample Morning Afternoon Evening Night

150 12 28 85 25

In the evening between 1800 hrs to 200 hrs the sale of the non- durable products reached
to its optimum level.
 FINDINGS

After analyzing all the data given by retailers & customers I found certain key finding

which is listed below:

1. Margin of Profit is more.

2. Service is expensive.

3. Trend of fast food among teenage is more than other age group.

4. Teenage are more crazy for such fast food & an alamaring signal of obesity, high

blood pressure etc are growing.

5. Popular among college going students.

6. Sale is higher in evening on weekdays & on weekends.

7. Also retail outlets in others areas did not showed more variance in product,

service & design.

 RECOMMENDATION

1. Relationship with retailers and customers should be kept under a close watch due

to increasing competition.

2. Service is expensive hence should not be compromised on the type of class of a

consumer i.e all costumers should be treated equally.

3. More attention should be paid on the teenage class because they are the most

frequent visitors, hence they cannot be ignored.

4. Generally nutrition part is mostly ignored which should be paid more attention

due its increasing consumption.

5. Hygiene should be properly maintained.

6. Business in the morning hrs is very poor, strategies should be made to utilize that

time period for some other purposes to generate more revenue &profit.
7. Special discount can be given during non-peak or dead hrs to boost sales.

8. Special security arrangement should be kept during rush hrs to avoid any

unnecessary mess.

9. Special attention should be paid on hard core loyal customers with some special

discount given to them to increase their visits.

 CONCLUSION

There is an ample scope for non-durable products making companies to do progress in

this lush green environment. The market size is increasing day by day and the demand for

new flavours is arising. The brands like McDonald, KFC and Pizza Hut are trying to

capture more market share with their new ideas and plan. Also it was also found that

these kinds of outlets was more famous in the urban areas or in the metros due to the

rapid urbanization & changing lifestyle compared to the rural areas.

 BIBLIOGRAPHY

1. BOOKS.

 Retail Management by Saroj Kumar (Vikas Edition).

 The art of retailing by Lamba (Tata McGraw-Hill,2001)

 Retailing management by Michael Lervy M & Weitz B W (Tata McGraw-

Hill,2004)

2. INTERNET.

 www.mcdonaldsindia.com

 www.kfc.com

 www.pizzahut.com

3. NEWSPAPER.

 Times Of India, 23rd January’ 09 –Business Edition (Page No- 18)

 SAMPLE QUESTIONNAIRE

1) NAME:

2) ADDRESS:

3) TELEPHONE: (LL) (M)

4) OCCUPATION:

a) STUDENT ‫ٱ‬ b) BUSINESS ‫ٱ‬

c) PROFESSIONAL ‫ٱ‬ d) OTHERS ‫ٱ‬

5) COMPANY NAME:

6) DESIGNATION:

7) YOUR ANNUAL INCOME (Rs):

a) 0-50,000 ‫ٱ‬

b) 50,000-1,00,000 ‫ٱ‬

c) 1,00,000-2,50,000 ‫ٱ‬

d) 2,50,000-5,00,000 ‫ٱ‬

e) Above 5,00,000 ‫ٱ‬

8) WHICH IS YOUR FAVOURITE DISH?

a) McAllo Tikki ‫ٱ‬

b) McFrench Fries ‫ٱ‬

c) Pizza ‫ٱ‬

d) Chicken Roll ‫ٱ‬

e) Cold drinks ‫ٱ‬

f) Ice-cream ‫ٱ‬
 9) HOW FREQUENTLY YOU VISIT THEM IN A WEEK?

a) 1-3
b) 4-7
c) 7-10
d) <10

10) WHICH RETAIL OUTLET DO YOU PREFER MOST TO LEAST

LIKING?

1.

2.

3.

4.

11) ON WHICH OCASSION DO YOU VISIT THEM?

a) WEEKENDS
 b) FRIENDS BIRTHDAY

c) ANNIVERSARY

d) OTHERS

12.) MODE OF PAYMENT YOU PREFER TO PAY YOUR BILLS?

a) CASH
b) DEBIT/CREDIT CARDS
c) OTHERS

13.) ANY EXPECTATIONS FROM THE RETAILERS?

a.) BETTER SERVICE

b.) QUALITY
c.) QUANTITY
d.) GOOD HYGINIC CONDITIONS
e.) DISCOUNT

14.) ANY SUGESTIONS FOR IMPROVEMENT…?

_____________________________________________________________

_____________________________________________________________

_____________________________________________________________

_____________________________________________________________
DATE:
PLACE: SIGNATURE: