Fast Food in Rural Market a Study of Motives & Changing Consumption Patterns

Topics: Fast food, Food, Nutrition Pages: 15 (2866 words) Published: April 6, 2009
Term Paper



Submitted by:

Sunil Asija

University Registration No.2020070066

MBA-(310) D

Submitted to

Mr. Harpreet Singh








1. Introduction To The Topic3-4
1. Fast Food
2. Fast Food Industry in India
1.2 Review of Literature5-6
1.3 Objectives7
1.4 Research methodology7
1.5 Interpretation & analysis8-13
1.6 Findings14
1.7 Conclusion14
1.8 Bibliography15
1.9 Annexure16

1.1 Introduction to Topic
With the increase in purchasing power and demand for a wide variety of products by the rural consumers, the rural markets offer new and greater opportunities to manufacturers of several FMCG products in India. To tap the vast and expanding market, companies are developing effective marketing and strategies based on their study and understanding of rural consumer behaviour. There are certainly significant differences in the buying behaviour of the rural consumers from the stand point of product development, pricing policies, distribution and after sales services, which create differences in requirements for marketing strategies in rural India. (Sarangapani & Mamtha, 2008)

Consumer Behaviour

The study of consumers helps firms and organizations improve their marketing strategies by understanding issues such as how

• The psychology of how consumers think, feel, reason, and select between different alternatives (e.g., brands, products);

• The psychology of how the consumer is influenced by his or her environment (e.g., culture, family, signs, media);

• The behaviour of consumers while shopping or making other marketing decisions;

• How consumer motivation and decision strategies differ between products that differ in their level of importance or interest that they entail for the consumer; and

• How marketers can adapt and improve their marketing campaigns and marketing strategies to more effectively reach the consumer.

One "official" definition of consumer behaviour is "The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society." (Lars Perner, 1999)

Fast food

Fast food is one of the world's fastest growing food types. Fast foods are quick, reasonably priced, and readily available alternatives to home cooked food. While convenient and economical for a busy lifestyle, fast foods are typically high in calories, fat, saturated fat, sugar, and salt. (Singh & Goyal, 2007)

Fast food industry in India

India's fast-food industry is growing by 40 percent a year and before the entry of multinational fast food outlets, Nirula's was a popular domestic fast food provider for eating-out. Nirula's started with ice-cream parlours and later moved on the range of fast food including burgers, pizzas, sandwiches etc. Wimpy was another fast food provider besides Nirula's in Indian market. Wimpy was the only multinational fast food outlet in India before 1990s with one outlet in New Delhi. After the liberalization policy that came in force in 1991, fast food industry grown in India as multinational fast food providers have set up their business either jointly with Indian partners or independently. McDonald's, Domino's, Pizza Hut and Nirula's are the most popular and frequently visited fast food outlets. KFC has limited outlets and has faced number of problems since entry in India. Besides these, there is Pizza Express and Pizza Corner of which are not so popular. With...
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