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Why have the sales of Sharma Restaurant declined in the 2008-2011 period ?

Group 10 2008A4PS325 2008B2A1751 2008B3A1626 2009A1PS400

Sayid Islam Saurabh Bhardwaj Nayak K Akash Shashi Shekhar Mahajan

160

140

120

Sharma

100 Nobel 80 ANC 60

40

20

0 2008 2009 2010 2011 (projected)

Annual Sales Data in lakhs of Rupees.

Find out the business problem/management decision problem. Formulate marketing research problems, research objectives and hypothesis. Prepare questionnaire, select sample size, collect data through primary and secondary research. Data interpretation and analysis.

What should be done to increase the sales of Sharma Restaurant at Cnot ?

To examine the reasons that have led to decline in the sales of Sharma Restaurant during the 20082011 period. To analyze the various factors that can contribute to the sales and to suggest recommendations for the improvement of the same.

To determine the various factors that contribute to desirability of a particular restaurant over others in BITS campus. To determine the areas that Sharma ji can improve upon and his strengths over other competitors as well.

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2.

3.

4.

Who are the main competitors that have emerged during the last three years? What criteria customers keep in mind while selecting a restaurant ? How does Sharma Restaurant fare in the above criteria ? Keeping in mind the constraints, what can Sharma ji do to improve his sales ?

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The target population for the study is the student population of BITS. Qualitative research was conducted using a focus group, 12 participants-all 4th year undergraduates, where they were asked to highlight the main factors that were responsible for selection of a restaurant in BITS. The various factors that came up as a result were price, quality and service, timings, mode of payment, variety and location.

Two questionnaires were administered to a sample of 30 respondents chosen by convenience sampling. In the first questionnaire, respondents were asked to rank their preferences in order of importance.

18.0 26.2

Quality Variety Price

20.3 18.3

Location Payment Timing

6.2 11.0

Ho : there is no difference in quality between Sharmas and Nobels. H1 : there is difference in quality between Sharmas and Nobels. Ho : there is no difference in variety between Sharmas and Nobels. H1 : there is difference in variety between Sharmas and Nobels. Ho : there is no difference in price between Sharmas and Nobels. H1 : there is difference in price between Sharmas and Nobels.

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Ho : there is no difference in quality between Sharmas and ANCs. H1 : there is difference in quality between Sharmas and ANCs. Ho : there is no difference in variety between Sharmas and ANCs. H1 : there is difference in variety between Sharmas and ANCs. Ho : there is no difference in price between Sharmas and ANCs. H1 : there is difference in price between Sharmas and ANCs. Ho : there is no difference in mode of payment between Sharmas and ANCs. H1 : there is difference in mode of payment between Sharmas and ANCs. Ho : there is no difference in timings between Sharmas and ANCs. H1 : there is difference in timings between Sharmas and ANCs. Ho : there is no difference in location between Sharmas and ANCs. H1 : there is difference in timing between Sharmas and ANCs.

BAD

UNSATISFACT ORY

SATISFACTO RY

GOOD

EXCELLEN T

RATING

On the basis of the above rating scale, please rate Sharmas, Nobels and ANC on the basis of the following factors Quality Variety Price Location Mode of payment Timings

Restauran t Sharma Nobel ANC

Quality

Variety

Price

Location

Payment

Timing

2.53 3.93 3.37

2.00 4.27 4.43

3.57 1.57 4.30

2.60 2.60 3.97

2.23 2.23 4.87

2.53 2.53 4.00

We conducted a pooled t-test for hypothesis verification. We have summarized the results in the following table.

Null Hypothesis
Sharma Nobel Quality Sharma Nobel Variety Sharma Nobel Price Sharma ANC Quality Sharma ANC Variety Sharma ANC Price Sharma ANC Location Sharma ANC Payment Sharma ANC Timing

Accepted/Reject ed

Critical t value

Calculated t value

Accepted Rejected Rejected Accepted Rejected Rejected Accepted Rejected Accepted

1.96 1.96 1.96 1.96 1.96 1.96 1.96 1.96 1.96

1.38 2.89 2.20 0.96 3.60 2.04 0.90 3.11 1.54

Sharma has a competitive advantage over Nobel in terms of price. Nobel has a competitive advantage over Sharma in terms of variety. ANC has a competitive advantage over Sharma in terms of variety. ANC has a competitive advantage over Sharma in terms of price. ANC has a competitive advantage over Sharma in terms of mode of payment.

Sharma has to improve the variety of items on his menu to include items like confectionaries, bakes, South Indian food. Sharma need to market his existing items better such as his Hyderabadi Biryani, Gulabjamun with Ice-cream, Cheese Tomato and MNB.