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Summer Internship Project

IDENTIFICATION OF MARKET

OPPORTUNITY TO IMPLEMENT BRANDING

STRATIGIES IN CHAIN DEVELOPMENT OF

RESTAURANT AND CAFÉ

Submitted in partial fulfillment of PGDM program

2014-16

Submitted by

SHUBHENDU VATSA

22/067

Corporate Mentor Faculty Mentor

Mr. Mukesh Rana Prof. Shalini Duggal

Director Faculty

Quetzal Luxury Café Apeejay School of

Management

Apeejay School of Management

New Delhi

July 2015

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CERTIFICATE

This is to certify that the project work done on “Identification of Market opportunity to

implement branding strategies in the chain development of restaurant and café“Submitted

to Apeejay School of Management, Dwarka by ShubhenduVatsa in partial fulfillment of

the requirement for the award of PG Diploma in Business Management, is to the best of

my knowledge a bona fide work carried out by him under my supervision and guidance.

This work has not been submitted anywhere else for any other degree/diploma. The

original work was carried out during 01st April 2015 to 30

th June 2015 in Quetzal luxury

café (A Venture of Plenum capital management India Pvt. Ltd.)

Date:

Seal/Stamp of the Organization

Signature & Name of the Corporate Mentor

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CERTIFICATE

This is to certify that I Shubhendu Vatsa Roll No. 22/067 have carried out my summer

internship in Quetzal Luxury Café in the area of Marketing. It is also certified that the

work done by me is original with due references of sources, and has not been submitted

elsewhere for the award of any diploma or degree.

_____________________

Signature

Shubhendu Vatsa

Date: _________________________

Countersigned by Faculty Mentor

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ACKNOWLEDGMENT

A work is never a work of an individual. I owe a sense of gratitude to the intelligence

and co-operation of those people who had been so easy to let us understand what I

needed from time to time for completion of this exclusive project. I want to express my

gratitude towards Mr. Mukesh Ranafor giving me opportunity to do this project.

I also want to express my gratitude towards Prof. Shalini Duggal, of Apeejay School of

management for helping me in the project andmaking it successful.

Last but not the least, I would like to forward my gratitude to faculty members who

always guided meand stood by me and without whom I could not have envisaged the

completion of our project.

Shubhendu Vatsa

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TABLE OF CONTENT

1) Executive Summery

Page 07-08

2) Chapter 1

Area of Internship And Learning Objectives

Page 09 - 16

3) Chapter 2

Profile of the Organization

Page 17 – 32

4) Chapter 3

Job Description And Functional Profile

Page 33– 39

5) Chapter 4

Learning Experience And Insight Gained

Page 40– 57

6) Chapter 5

Conclusion and Recommendations

Page 58– 60

7) Annexure Page 61– 63

8) Bibliography

Page 66

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LIST OF GRAPHS

Market share of HospitalityIndustry

Page 11

Indian luxury hotels on social media Page 12

Contribution of Hospitality industry in GDP of India Page 13

Segmenting, Targeting and Positioning Page 35

Perceptual Map Page 37

Data Analysis outcomes Page 60-65

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EXECUTIVE SUMMARY

The working purpose and overall goal of the Internship project was to uncover the

untapped market for Restaurants and café in Delhi-NCR region and to find the potential

customers that may serve as future prospects for Alternate Channel Development (ACD)

of the Company.

The marketing project opens with an analysis of the company's current situation,

including a review of its internal and external environment, which yields information

regarding company‟s current strengths and weakness along with the opportunities and

threats present. The primary threat is a large number of competing firms.The marketing

strategy will begin with offering high quality food and on-time service. The branding

strategy will help to sell via direct sales and to expand via word of mouth endorsements

and corporate tie-up.

Duringinternship, various functionalities related to the working of the organizationlike its

distribution system, types of product and services offered by the company were explored.

Amarketing tool called as S.T.P (Segmenting, Targeting and Positioning)& IBM SPSS

(Ver. 21) was used to conduct the marketing research and statistical analysis.

While doing the prospective search for Alternate Channel Development for Restaurants

and café,more than 50 companies including kafe Fontana, Di Ghent café, Café Lota, Mc

Donald, Star Bucks, Pizza Hut, Burger King etc. were visited by me where lot of data on

various parameterssuch as purchasing pattern, monthly marketing budget allocation,

consumer preferences, Quality maintaining process and a Market research etc. were

gathered.In this report all the aspects related to prospecting of business opportunities in

untapped are discussed below in detail.

My process of summer internship includes some of the aspects of marketing research,

sales, finance and logistics. As Quetzal luxury café is a startup company the roles of

lower level management were versatile. There was a lot of learning experience involved

in the entire summer internship process. As a marketing intern I was responsible for over

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all marketing strategies formulation and execution. My mentor Mr. Mukesh Rana

(Director of Quetzal Luxury Café) had always encouraged me to bring in new ideas for

the growth of the business.

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CHAPTER 1

AREA OF INTERNSHIP AND LEARNING OBJECTIVES

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I had done my Summer Internship in Hospitality Industry (Quetzal luxury café) which is

a start-up brand in Hospitality Sector.

Hospitality Industry

The hospitality industry is a broad category of fields within the service

industry that includes lodging, event planning, theme parks, transportation, cruise

line, and additional fields within the tourism industry. The hospitality industry is a

multi-billion dollar industry that depends on the availability of leisure time

and disposable income.

A hospitality unit such as a restaurant, Café‟, Hotel, or an amusement park

consists of multiple groups such as facility maintenance and direct operations

(servers, housekeepers, porters, kitchen workers, bartenders, management,

marketing, and human resources etc.).

Usage rate, or its inverse "vacancy rate", is an important variable for the

hospitality industry. Just as a factory owner would wish a productive asset to be in

use as much as possible (as opposed to having to pay fixed costs while the factory

is not producing), so do restaurants, Café, Hotels, and theme parks seek to

maximize the number of customers they "process" in all sectors.

This led to formation of services with the aim to increase usage rate provided

by hotel consolidators. Information about required or offered products is brokered

on business networks used by vendors as well as purchasers.

In looking at various industries, "barriers to entry" by newcomers and competitive

advantages between current players are very important. Among other things,

hospitality industry players find advantage in old classics (location), initial and

ongoing investment support (reflected in the material upkeep of facilities and the

luxuries located therein), and particular themes adopted by the marketing arm of

the organization in question (for example at theme restaurants). Also very

important are the characteristics of the personnel working in direct contact with

the customers. The authenticity, professionalism, and actual concern for the

happiness and well-being of the customers that is communicated by successful

organizations are a clear competitive advantage

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Modern Café and Hotels

Cafés may have an outdoor section (terrace, pavement or sidewalk cafe) with seats, tables

and parasols. This is especially the case with European cafes. Cafes offer a more open

public space compared to many of the traditional pubs they have replaced, which were

more male dominated with a focus on drinking alcohol.

One of the original uses of the cafe, as a place for information exchange and

communication, was reintroduced in the 1990s with theInternet café or Hotspot (Wi-

Fi). The spread of modern style cafes to many places, urban and rural, went hand in hand

with computers. Computers and Internet access in a contemporary-styled venue helps to

create a youthful, modern, outward-looking place, compared to the traditional pubs or

old-fashioned diners that they replaced.

In China, an abundance of recently started domestic coffeehouse chains may be seen

accommodating business people for conspicuous consumption, with coffee prices are

sometimes even higher than in the West.

In India, many coffee culture has gained a lot of ground in last twenty years, Indian

coffeehouse chains like: Indian Coffee House, Café Coffee Day, Barista Lavazza have

become very popular in recent years. Cafes are considered good venues to conduct office

meetings and friends hang about

Coffeehouse and coffee shop are related terms for an establishment which primarily

serves prepared coffee and other hot beverages. Café in continental Europe refers to a

traditional type of coffeehouse, but elsewhere "cafe" may refer to a tea room, small and

cheap restaurant, transport cafe, or other casual eating and drinking place. A coffeehouse

may share some of the same characteristics of a bar or restaurant, but it is different from

a cafeteria. As the name suggests, coffeehouses focus on providingcoffee and tea as well

as light snacks. Many coffee houses in the Middle East, and in West Asian immigrant

districts in the Western world, offer shisha (nargile in Turkish and Greek), flavored

tobacco smoked through a hookah. Espresso bars are a type of coffeehouse that

specializes in serving espresso and espresso-based drinks.

From a cultural standpoint, coffeehouses largely serve as centers of social interaction: the

coffeehouse provides social members with a place to congregate, talk, write, read,

entertain one another, or pass the time, whether individually or in small groups of two or

three people. A coffeehouse can serve as an informal club for its regular members.

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Industry Segments

The main segments of the HOSPITALITY sector are:

Lodging Segment: This includes hotels, motels, Inn‟s and Resorts

Food and Beverage Segment: Restaurants, Cafés, Catering companies, Fast-food

joints

Entertainment and Recreation: Clubs, Amusement Parks, Gaming

Travel and Tourism: Travel agencies, Transportation and Tour operators

As I had done my Internship in Quetzal Luxury Café which is a start-up company in Café

segment of Restaurants .It was important to know about Hospitality Industry in India.

.

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HOSPITALITY INDUSTRY IN INDIA

The Hospitality Industry in India witnessed annual growth as below

2010-11 - 16%

2011-12 -19%

2012-13-21%

2013-14 -24%

Federation of Hotel & Restaurant Association of India (FHRAI)

According to FHRAI an association which promote Restaurant segment of Hospitality

industry in India

The contribution rate of Hotels & Restaurants of Hospitality Industry in Indian GDP

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LEARNING OBJECTIVE

Learning Objectives during Internship were

Conducting a SWOT analysis for the organisation

By conducting the SWOT analysis I was able to gather internal and external information

of the organization which helped me to mark those factors that can affect the business.

Content writing for the organisation

I learned how to write effectively about the various products of the company. I also used

this skill to promote the company on social media and print media.

Data Analysis

The company had hired a firm to provide filtered data of customers based on certain

parameters; I learned how to use that data in predicting and drafting strategies for

marketing campaigns, designing the pricing of various products, introducing offers and

discounts. I used SPSS ver. 18 for the data analysis process.

Understanding the selling procedure from prospecting for new customer to

closing a sale

While prospecting I had to gather information about the existing purchase pattern of the

companies visited, along with the margins at which they are getting their products and

then only, offers and benefits were told to the customerso that they can be converted.

Understanding presentation skills

Conducting seminars for the corporates and presenting the presentations to individuals

for taking the franchisee of the company helped me to use my managerial skills

effectively. I also learned how to interact and be presentable.

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Gaining knowledge of the field sales team through participating in sales calls

and trade shows

While collecting data of the prospective customer I have learned the way sales team

works on the field. What are the challenges a team has to face while doing afieldwork.

Conducting market research

This was a major research work through which I had gathered information about the

untapped market in this particular region. Through this I had learned a lot like how the

questionnaires are prepared, how to conduct interviews, how to conduct research work

etc.

Conducting interviews and observing sessions, analyzing data, and

presenting findings in a formal report

A report was made when a particular area was covered, which gave an overview about

the prospective clients who can be targeted for information gathering for conversion.

Developing and enhancing collaborative and teamwork skills

While working as an Intern I inculcated these skills as only a team work can lead to a

successful assignment.

To understand how the distribution channel works at Distributor Point

While working as an intern I learned about the distribution channel at distributor point

which includes how the goods are dispatched, how delivery of products took place etc.

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Chapter 2

Company Profile

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COMPANY’S BACKGROUND

Quetzal Luxury Café is owned by Plenum Capital Services Pvt. Ltd. Basically the parent

company is a financial firm which deals in financial management, portfolio management,

wealth management, corporate finance and real-estate advisory. The venture of Quetzal

café started on 15th

December 2014. The name Quetzal is derived from a species of long

tail bird from the natives of North-America. The idea is to promote the concept of luxury

in the café segment of restaurants. A harmonious blend of traditional and contemporary

sophistication bought up for the customers.

Quetzal Luxury Café LOCATION:

Quetzal Luxury Cafés are located in Delhi-NCR region of North India: –

NOIDA, Uttar Pradesh

Greater Kailash, New Delhi

And the company is still expanding the chain. According to the insights gained by me,

there will be seven outlets in the prime locations of Delhi-NCR by the end of FY2016,

the company has also started the process of franchising there outlets. A set of conditions

that are outlined by the company for franchising there outlet.

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Quetzal Luxury Café LOGO:

Quetzal Logo is designed by a domestic advertisement agency, The logo had two

objectives:

1. To Introduce the various color of modern cooking for the customer, like the bird

Quetzal has a colored tail

2. Create an atmosphere of Bird nest in all the interior themes of Quetzal Luxury

Café

BOARD OF DIRECTORS

Name and Designation

Mr.Khalid Mohamad Chairman

Mr. Mukesh Rana Director/Promoter/Legal Advisor

Ms. EshaRaina Director

Dr. Asif Iqbal CMO

Mr. Bijender Singh CFO

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Vision:

To dominate the luxury restaurant market in India with adistinctive range of “Class Yet

Quantity”

Mission:

To make Quetzal as a brand in the luxury café segment of restaurants.

Short-term Objective of company:

o distribute franchisee in North India

internal processes and controls

Quality control:

Quality Policy in Quetzal Luxury Caféis:

• Customer Satisfaction

• Total quality management

• Continuous up gradation of technology

• Improvement in processes

• Focus to meet emerging needs of the customers

• Environment responsibility

• Development of human resources

• Improving the working conditions of the kitchen and washing area.

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BUSINESS PROFILE:

Quetzal Luxury Café core businesses constitute of Al-a-carte and Fast food products. Al-

a-carte products account for 60% of the revenues and includes some selected cuisines

from around the world. The specialty is restricted to Italian cuisines, Mughlai Cuisines,

Chinese cuisines and Continental cuisines. Fast food products contribute to 40% of

Quetzal cafés half yearly turnover of Rs.10 lakhs. Throughout its existence, Quetzal

Cafés has operated on the principles of providing products to the consumers that are

healthy and authentic. This is brought about by the use of high quality ingredients with a

strong focus on „naturalness‟ and modern processing & storing practices. The company

today has a wide range of Al-a-carte products and fast food products. Now the company

wish to expand itself bakery products in the biscuit, bread and cake segment. It has

trimmed down its wide product portfolio by reducing the products from 35 to around 25

and began to focus on value-added instead of low-margin products.BIL (Quetzal Luxury

Cafe‟ Industries Ltd.) has decided to focus on seven corebrands in the biscuits and bakery

category.

Quetzal Luxury Café

Quetzal Quick Meal

Fast Food& Al-a-carte

(30% revenue contribution) (70% revenue contribution)

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Marketing Mix of company

A mixture of several ideas and plans followed by a marketing representative to promote a

particular product or brand is called marketing mix .elements of Marketing Mix are

Product, Price, Place and Promotion

Marketing Mix of Quetzal Luxury Caféis as follows:

Product

Quetzal Café has a wide range of products.

Quetzal café introduced a range of exclusively available cuisines from around the

world.

The product is prepared by chefs who have special specialization.

Price

Market-Penetration Pricing for the products like Pizza, Burgers and French Fries

Special-Event Pricing in festive seasons.

The pricing of the menu is set according to the competition in the market.

Place

Quetzal Luxury Café uses both i.e. pullstrategy as well as push strategy to persuade the

demand of Products

Promotion

Quetzal Luxury Café promotes itself through:

Sales Promotion – Small goodie bags are given to the customers, Special

discounts and special arrangements for regular customers on there big day like

anniversaries, Birthday‟s etc.

Events – Quetzal Student discounts, Ladies Night, Live Sufi Night etc.

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Outdoor Promotion- such as flyer distribution, road show by guitarist, sticker

advertisements, hoardings and banners on major metro stations and on road.

SWOT ANALYSIS OF Quetzal Luxury Café

STRENGHTS

Experienced and trained chefs and stewards picked from hotel industry

Wide Range of products covering major fast food cuisines

Special Cuisines that have an availability only in 5 star rated hotels

Focus on Luxury in the restaurant segment of Café

Terrace segments in café

WEAKNESSES

High cost of inventory for raw material

Packaging of food and take away option is still not introduced by the café

OPPORTUNITIES

Vast untapped market for luxury café segment

Rising income level of targeted customer

Potential to expand

Take away options are yet to be introduced

THREATS

Domestic fast food chains

International fast food chains

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5 star hotels

Rising input costs

These are the Strengths,Weaknesses, Opportunities and Threats of the Company

Corporate Social Responsibility

Quetzal Luxury Café had shown its CSR as

A Company to reduce sodium and sugar levels in most of the cuisines

Dieting-snacks menu specially created for people who are diet conscious

Support several NGOs by donating funds

Solar energy is used as the source of power for lights during night

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COMPETITORS of Company:

Generally all organizations have competitors in the market. A particular

organization always comprises with other same business and according to market share

we clarify the brand of product is giving more challenge to the product.

In brand reach Quetzal Luxury Café is yet to scores much above other brands in the

restaurant market with a reach to 1000 stores, as against Pizza Hut reach to 10,000 stores

and Haldiram‟s reach to 4650 stores.

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CHAPTER 3

JOB DISCRIPTION AND FUNCTIONAL PROFILE

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JOB DESCRIPTION

Job Title: Marketing Manager (Intern)

Location: Delhi/NCR

Reporting Manager: Mr. Mukesh Rana

Date of Joining: 01st April 2015

Job Family: Marketing and Sales

Job Summary:

As an intern with Quetzal Luxury café my major responsibility was to do the market

based research and also to do prospecting of the un trapped market for the company ,

which includes talking to the concerned person who deals in purchase and

understanding their purchasing pattern. My job also included to bind the non-clients to

the company, by not losing their trust ,communicating with them effectively, focus on

their queries ,to solve their queries effectively by demonstrating high integrity and at

last to convert them into clients, so that the company can supply goods and services to

them and they can contribute to the organization profits.

Job Responsibilities and Duties:

To Prepare Questionnaire

While doing the research work during Summer Internship a questionnaire was

prepared on various parameters like dining pattern of customers, buying habits,

preferred timing to dine in etc. on the basis of which information was gathered.

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To Interact with client

Client interaction was the part of project work which helped alot in my personnel

grooming.

Develop a strong understanding of company’s products and services

As client interaction was a part of research work and for that our knowledge about

products and services offered by company was must, as on the same basis the

whole range of products are represented to the clients and it also shows them how

knowledgeable the company representative is.

Sell to current customers and prospect for new business

To find the prospecting clients and new business was the main focus area of

Internship.

Coordinate with internal departments to respond quickly to customer needs,

requests and problems

While conducting survey sometimes such a situation arises where customer had to

be responded back as soon as possible, by contacting to the manager, problem

were solved so that the client become satisfied and can be converted soon

Perform market research through interviews, focus groups and surveys

Conducting a market survey was a task through which potential client can be

found and after data analysis these potential clients are interviewed and can be

converted.

Collect and analyze data on customer demographics, preferences, needs, and

buying habits to identify potential markets and factors affecting product

demand.

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Data collected was analyzed on the basis of client‟s consumption pattern keeping

in mind the other factor such as their buying habits which includes how frequently

they purchase fast food and other products.This helped me to convert the non-

clients in to clients

Gather data on competitors and analyze their prices, sales, and method of

marketing.

At the time of research work apart from gathering the information about the

buying behavior and consumption, other important information was also collected

about the products and services offered by the competitors and on that basis more

discounts are offered to the prospective clients so that they can be converted in to

the clients of Quetzal Luxury Café

Job Activities

Communicating with Supervisors and Peers

Providing information to supervisors, and co-interns by telephone and e-mail so

that queries and problem during calls can be solved.

Documenting/Recording Information

Data collected was stored in the form of records which act as the evidence of our

work and could also be used by the company for future references.

Establishing and Maintaining Interpersonal Relationships

Developing constructive and cooperative working relationships with others at the

time of meeting and building trust with them was an essential part of the working.

Getting Information

Observing, receiving, and otherwise obtaining information from all relevant

sources to know about the buying behavior and other aspects so that the analysis

can be done easily.

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Processing Information

While collecting all the relevant information data was Compiled, categorized,

tabulated, and verified so that information should become meaningful and

analysis can be done.

Communicating with Persons Outside Organization

Research work was all about Communicating with people outside the

organization, representing the organization to customers and external sources so

that information can be gathered easily.

Making Decisions and Solving Problems

After analyzing and evaluating the information gathered best solution was to be

adopted to solve the queries of the prospective clients so that they can be

converted in to clients.

Organizing, Planning, and Prioritizing Work

Developing specific goals and plans to prioritize, organize, and accomplish the

work made the research work easy.

Selling or Influencing Others

Convincing others to buy merchandise/goods or to otherwise change their minds

or actions was the main task during conversion.

Analyzing Data orInformation

Identifying the underlying principles, reasons, or facts of information by breaking

down information partially into separate parts so thatit could be analyzed

properly.

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Skills Required

Decision Making

As a marketing manager, it is very much important to take decisions. Proper

analysis of the situation and keeping in mind the mission and vision of the

company a decision to benefit the company from all aspects was important. I

learned to take managerial decisions.

Time Management

As it was a difficult task to collect data and do meeting with clients

simultaneously I learned the time management skill.

Writing

Communicating effectively and appropriately in writing, so that the information

gathered was understandable and can be interpreted with no difficulties. I also

learned how effectively one should write the report.

Active Listening

The work profile given to me demands good active listening skills which I have

learnt while talking to the prospecting clients at the time of information

gathering

Critical Thinking

Using logic and reasoning to identify the strengths and weaknesses of alternative

solutions, conclusions or approaches to problems was also required to convince

the clients

Negotiation

Bringing others together and trying to reconcile differences is negotiation and this

skill was required during the conversion stage which I inculcate during Internship.

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Persuasion

Persuading others to change their minds or behavior was needed as various clients

are only purchasing biscuits of other brand and to convince them to go with

Quetzal Luxury Café was the major challenge.

Working Hours:

Working hour was from 11 in the morning till 8 but some time it got extended due to

meeting.

Initially I had to work seven days a week and on every Saturday there was a scheduled

meeting at main office Barakambha Road, where a weekly report was submitted. But

after one month one day off was given.

Qualification Required:

Educational Qualification required by the company to be an intern was

Senior Secondary with more than 60%

Graduation with more than 60%

Higher education with more than 60% in all Trimester

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CHAPTER 4

BUSINESS PROCESS AND INSIGHT GAINED

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BUSINESS PROCESS

Business process at Quetzal Luxury Cafe‟ was to find the untapped Sector (Market) for

the Alternate Channel development of the company.

As there are three Channels in which company deals in

General trade

Modern trade

Alternate channel development

General Trade

General trade refers toretailing the products and services through kirana stores and

through other retail outlet

Modern Trade

Modern trade as opposed to traditional retail shops refers to retailing the products and

services to big stores likeBig Bazar

Alternate Channel Development

Alternative Channel Development refers to retailing goods and services to offices and

HORECA (Hospitals, Restaurants, Educational Institutes and Caterers)

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My project was to find the untapped market for the company by gathering in information,

analyzing the findings, then focus on the potential groups of clients and finally convert

them.

What is Untapped Market?

Untapped Market is that portion of market that has been untouched or left unnoticed by

the sellers.

Identification of untapped Market is very much important from company‟s point of view,

as it leads to the following points:

Expanding customer base

Increasing Sales

Increase in Market Share

STP (Segmenting, Targeting and Positioning) Analysis is done to find the untapped

market (Refer fig 1)

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The first rule of STP is Segmenting.

SEGMENTING

Segmenting is the process of dividing the market into segments based on customer

characteristics and needs.

The main activities in segmenting consist of four sub activities. These are:

Figure 2

The first, second and fourth steps are described as Market Segmentation. The third step of

analyzing the intensity of the competitors is added to the process of segmenting. When

different segments are identified, it is not necessary that these segments are attractive to

target. A company is almost never alone in a market; competitors have a great influence

on the attractiveness of entering a certain market. When there is a high intensity of

competitors, it is hard to obtain a profitable market share and a company may decide not

to enter a certain market. The third step of segmenting is the first part of the topic of

competitor analysis.

By following the above segmenting rule and sub activities I was able to come across that

Offices and Horeca are best Segments to be focused on (Refer Figure 3)

Determining the actual and potential customers

Identifying segments

Analyzing the intensity of competitors in the market

Selecting the attractive customer segments

SEGMENTING

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.Figure 3

The need for segmenting a market is based on the fact that no market is homogeneous.

For one product the market can be divided in different customer groups. The variables

used for this segmenting in these groups are usually geographical, psycho graphical,

behavioral and demographic variables. This results in segments which are homogeneous

within and heterogeneous between each other. When these segments are known, it is

important to decide on which market to target. Not every market is an attractive market to

enter. A little filtering has been done in this activity, but there are more factors to take in

account before targeting a certain market segment. This process is called targeting.

The Second Rule of STP is Targeting

Targeting

The Second step is of targeting. After the most attractive segments are selected, a

company should not directly start targeting all these segments, other important factors

come into play in defining a target market.

Four sub activities form the basis for deciding on which segments will actually be

targeted.

Determining the actual and potential customers-

Students and HNI's

Identifying segment-

Geographical

Analyzing the intensity of competitors in the market-

Mc Donald, Haldiram

Selecting the attractive customer segments

Where there is Cafetaria

SEGMENTING-

Un tapped Market

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Figure 4

The first three sub activities are described as the topic competitor analysis. The last sub

activity of deciding on the actual target market is an analysis of the company's abilities to

those of its competitors. The results of this analysis lead to a list of segments which are

most attractive to target and have a good chance of leading to a profitable market share.

Figure 5

Defining the abilities of the company and resources needed to enter a market

Analyzing competitors on their resources and skills

Considering the company’s abilities compared to the competitors' abilities

Deciding on the actual target markets.

Targeting

Defining the abilities of the company and resources needed to enter a market-

Benifits and services provided by Quetzal Luxury Cafe

Analyzing competitors on their resources and skills

Discounts and Services offered by Competitors

Considering the company’s abilities compared to the competitors' abilities

Discounts and services given by Quetzal Luxury Cafe

Deciding on the actual target markets.

Students and HNI's

Targeting

Un tapped Market

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Obviously, targeting can only be done when segments have been defined, as these

segments allow firms to analyze the competitors in this market. When the process of

targeting is ended, the markets to target are selected, but the way to use marketing in

these markets is not yet defined. To decide on the actual marketing strategy, knowledge

of the differential advantages of each segment is needed.

Positioning:

The third step is of Positioning. Positioning helps in identifying who you are in the

marketplace vis-à-vis the competitors

When the list of target markets is crated then the company will try to identify its products

image in the mind of consumer or image of its brand in the mind of the customer. Every

segment is different from the others, so different customers with different ideas of what

they expect from the product. In the process of positioning the company

Positioning is done on the Basis of Awareness level and Product Preference

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The above figure shows the positioning of business in reference to Awareness and

Preference.

Quetzal Luxury Cafe‟ is Facing its Major Competition from McDonald‟s, pizza hut,

dominos and they are not facing any trouble from any brands like café coffee day,

Haldiram, Bikaner and un register local restaurants which are also promoting their

products by spending more towards creating their brand awareness

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INSIGHT GAINED

Insight Gained during the Business Process are

Develop a strong understanding of company‟s products and services

Perform market research through interviews, focus groups and surveys

Collect and analyze data on customer demographics, preferences, needs, and

buying habits to identify potential markets and factors affecting product demand.

Prepare reports of findings, illustrating data graphically and translating complex

findings into written text.

Gather data on competitors and analyze their prices, sales, and method of

marketing and distribution.

Establishing and Maintaining Interpersonal Relationships

Develop a strong understanding of company’s products and services:

While working as an Intern for Quetzal Luxury Cafe‟ I got full knowledge regarding the

products and Services offered by the company which helped me in getting knowledge not

only about the products offered by us but also about the products offered by the

Competitors

Perform market research through interviews, focus groups and surveys:

Conducting a market survey was a task through which potential client can be found and

after data analysis these potential clients are interviewed for conversion

41

Collect and analyze data on customer demographics, preferences, needs, and buying

habits to identify potential markets and factors affecting product demand:

While doing Surveys and collecting information through interviews my major challenge

was to identify the buying habits of potential clients.

Prepare reports of findings, illustrating data graphically and translating complex

findings into written text:

After every week a reportwas prepared on the basis of information gathered and then it

was analyzed. This helped me in strengthening my analytical skills.

Gather data on competitors and analyze their prices, sales, and method of

marketing and distribution:

While gathering information I also learned how to gather information about discounts

which are offered by the competitors so that we can give them a better deal.

Establishing and Maintaining Interpersonal Relationships

I had learned how to maintain Interpersonal skills with the Managers in Purchase and

interpersonal skills enhanced my -

Communication skills

Personality Development

Confidence

Problem Solving and Decision making Skills

Listening Skills

42

EVALUATION OF BUSINESS PROCESS

Work given to me was more Customer Oriented. Customer Orientation means

A group of actions taken by a business to support its sales and servicestaff in considering

clientneeds and satisfaction their major priorities. Business strategies that tend to reflect a

customer orientation might include: developing a qualityproduct appreciate by

consumers; responding promptly and respectfully to consumer complaints and queries;

and dealing sensitively with communityissues.

Advantages of doing a customer orientation business:

Product Development

A customer-centric focus helps throughout the marketing process, which includes product

research and development as well as promotional communication. A customer-centric

focus typically leads to companies maintaining closer contact with core customers. Focus

groups and other research methods are used to maintain awareness of customer feedback

on products and desires for improvements. Tailoring products and services to fit the

strongest desires of your target market helps you establish a more marketable product

concept.

Build Loyalty

Running a customer-focused business helps organizations build a loyal customer base.

Customers are more willing to purchase from companies that they feel consider their

needs when they create products and services. Customers also are frequent patrons to

businesses that place a high value on training their staffs to emphasize customer service

Increase company’s business credibility

Business credibility is the amount of trustworthiness or expertise that a company has in

the eyes of its clients, customers, business partners, and financial resources. Customer

oriented business increases business credibility.

43

Increase in sales

One of the biggest advantages of having customer orientated market is increase in sales

as business can only grow if it can attract more customers.

When I visited the company I came to know that there was a package meal for the

company and they are purchasing products from a whole seller at discounted Prizes. I

talked to the concern person who deals in purchase and try to gather as much information

as I can and while gathering the information I came to know that it can be converted but

the major challenge was that they are already getting their products at a good Margin

Now my main focus was to convert that client,for this I had talked with my corporate

mentor he understood my point and gave me the permission to gave him some extra

benefits.

By this way I convert that client and realize that company cares about existing and new

client.

After the delivery of products when the feedback was taken he was satisfied from the

way he was introduced with the company and he has also appraise me for the deal

This was an incidence of one ofmy client who is know dealing with the company and had

given a business of approximately around 12000 1n fifteen days and can give more

business in future. This also shows that how customer oriented is the company.

Disadvantages of Customer oriented business

Lack of Innovation

Customer-focused businesses operate solely on customers' needs and wants, which can

have a negative impact on a company's creativity. When companies are customer-

focused, they may resist coming up with ideas to improve products or create new

products, so they begin to lack innovation. While customers may know what they want,

companies should use research and development to come up with ideas customers may

not think of on their own when surveyed about their needs.

44

Ever-Changing Customer Needs

Customers' needs are ever-changing, which means your customer-focused business needs

to have the resources, such as financing, staffing and time, to constantly keep up with

customer demands. This may be problematic for small business, as it can be expensive

and lead to employee burnout

Time Consuming and Expensive

The activities involved in carrying out a customer-focused business operation add time

and expense. Research before, during and after product or service launches takes

significant time and investment. Product-oriented companies are often using this time to

further product research and development. Additionally, customer-focused businesses

often invest in customer care and service activities such as follow up, returns and other

efforts to satisfy customer demands. While the hope is that these efforts garner more

customers and greater loyalty, they take time and money to manage.

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RESEARCH METHODOLOGY

Research

Research is an investigation in any field of inquiry that is Systematic, Patient and Careful.

Research Process:

Define Problem- Findingun tapped Market and converting prospective

Research Plan - Preparing of Questionnaire

Research Design Formulation –Segmenting, Targeting and Positioning

Collect Information - Survey

Present Finding – Analysis of Finding

Make Decision - Conversion

46

Type of Study:

The Research was based on Primary Data Analysis. Primary Data is a data originated by

the researcher for some specific purpose

Advantages of Primary Data Analysis

Accuracy in information

Information is Genuine

Primary data are of Two types

In the research Quantitative Research Data is used

Quantitative Research is done where

Sample size is large

Data is structured

Statistical Data Analysis

Recommend Final course of action

In the research work done I had applied Quantitative Research Data because the sample

size of untapped market is big and the questionnaire prepared is in structured form and on

the basis of the analysis of the report we have to decide whether the prospective clients

can become our client or not.

Qualitative Research Data Quantitative Research Data

47

Methods for conducting Quantitative Research Data are

Survey Methods

Telephonic Interview

Personal Interview

Mail Interview

Electronic Interview

Observational Method

Personal Observation

Mechanical Observation

Audit

Content Analysis

Trace Analysis

Survey Method

Personnel Interview and

Telephonic Interview are adopted during survey

Personal Interview: In Personal interview information was gathered personally. Like I

had collected the information by visiting personally at the client side

Telephonic Interview: In telephonic interview Information is collected with the help of

telephone. As when clients are not available at their office then I used to call them and

gather information through phone

In Observational Method

Audit and Trace Analysis are adopted during survey

Audit: In Audit data are collected on the basis of count of Physical products. Like some

time I had to analyze the potential of the customer by seeing their Food and Beverages

storage room.

48

Trace Analysis: In trace Analysis data collected was based on physical trace or evidence,

of past behavior. Like some time I had to see the bills of clients to know about their

consumption pattern.

Sampling Design

Probability Sampling Design was used at the time of research work.In Probability

sampling design each and every Segment had an equal chance of being selected without

any biasness.

Simple Random Technique was used doing the survey. As in Simple random Probability

sampling each element in population has a known and equal probability of Selection

49

PROFESSIONAL SKILLS

Professional skills acquired through internship are

Time Management Skill

As it was a difficult task to collect data and do meeting with clients simultaneously I

learned the time management skill.

Writing Skill

Communicating effectively and appropriately in writing, so that the information gathered

was understandable and can be interpreted with no difficulties. I also learned how

effectively one should write the report.

Active Listening Skill

The work profile given to me demands good active listening skills which I have learnt

while talking to the prospecting clients at the time of information gathering

Critical Thinking

Using logic and reasoning to identify the strengths and weaknesses of alternative

solutions, conclusions or approaches to problems was also required to convince the

clients.

Negotiation Skills

Bringing others together and trying to reconcile differences is negotiation and this skill

was required during the conversion stage which I inculcated during Internship.

Persuasive Skills

Persuading others to change their minds or behavior was needed as various clients are

only purchasing biscuits of other brand and to convince them to go with Quetzal Luxury

Cafe‟ was the major challenge. I learned Persuasion skill at the time conversion.

50

CHAPTER 5

RECOMMENDATION AND CONCLUSION

51

RECOMMENDATIONS

According to my finding I would like to recommend the following points:

As Quetzal Luxury Cafe‟ has expertise in biscuit manufacturing hence Quetzal

Luxury Cafe‟ should concentrate more on business apart from other products.

Since Quetzal Luxury Cafe‟ has fast food and Al-a-carte in every category and

price range so it should stress on reaching to the customers in every section of the

Delhi-NCR and this can be done using effective servicing.

Consumers in Delhi-NCR generally go for dining on weekends. Thus weekends

are the most appropriate time for outdoor advertisement at malls and areas like

offices where there is more crowd as these are the hot spots.

The way products are kept on display in the facility, mostly affects the sale of the

product as product should be vastly and easily available to the customer.

Proper advertisement is the key to tap potential consumers. Innovative ways

of advertisements like outdoor marketing, print media advertisements and flyer

distribution should be used by the company toachieve its goals.

52

CONCLUSION

After doing the summer internship for two months my experience with Quetzal Luxury

Cafe‟ was great and learning one. For those three months I thought as if I was a regular

employee of Quetzal Luxury Café not a student as I got a thorough real world experience

of the environment which prevails in the industry. I learned various aspects while doing

the internship such as – how to deal with people, how the management of the

organization works, what are the servicesof a company, how the distribution channels

works and many others.

As per my project was considered I had to find the business opportunities in untapped

market for Quetzal Luxury Café. Marketing research software called IBM SPSS® version

18 was used for making the work easier.

While talking about Quetzal Luxury Cafe‟ as an organization, I would say that it was a

well organized industry where in each and every employee knows his/her role and what

exactly is expected from him. Quetzal Luxury Cafe‟ is having high volume assets

among its competitors. Company preserves the non-seasonal food and makes it

available all throughout the year. Company distributed dividend and company‟s

profits have been increases year by year. Company h a s w e l l d ed i ca t ed

m an agem ent t e am to e f f i c i en t l y l e ad th e com p an y always to the next level.

Quetzal Luxury Cafe‟ has well developed services through which it meets its distribution

and selling demands.

Overall all I would like to say that it was a learning journey for me as an intern with

Quetzal Luxury Café .Where I inculcated lots of skills like Negotiation, Persuasion,

Analytical etc which will definitely going to help me in future.

53

BIBLIOGRAPHY

http://www.business-standard.com/article/companies/restaurant-will-be-significant-for-s-

growth-md-110053100202_1.htmlaccessed on 17 June 2013

http://en.wikipedia.org/wiki/Hospitality/Industriesaccessed on 17 June 2013

http://www.rediff.com/money/2006/jun/28spec.htmaccessed on 23 June 2013

www.iseindia.com/ResearchPDF/FMCG_Update1.pdf accessed on 23 June 2013

http://smallbusiness.chron.com/advantages-disadvantages-company-becoming-

customerfocused-business-26150.htmlaccessed on 23 June 2013

Marketing Research book Sixth Edition by Naresh k. Malhotra and Satyabhushan Dash

Marketing Management book Fourteen Edition by Philip Kotler

http://www.hindu.com/fline/fl2322/stories/20061117004812200.htm

http://www,quetzalcafe.in on 26th

June

http://www.expresshospitality.com/20071130/market22.shtml

54

ANNEXURE

Market survey Questionnaire

Data analysis using IBM SPSS ver.18

55

Sample Questionnaire

The questionnaire distributed by the researchers is as follows:

Dear Respondents,

I am the marketing intern at Quetzal Luxury Café, as per the research requirements of my

summer internship project I wish to conduct a feasibility survey of setting up a Luxury

Café outlet, here in Hauz Khas Village, New Delhi. Being a future customer, I would be

greatly obliged if you could spare some time for us and fill this questionnaire.

Quetzal Luxury Café is an existing fast food and luxury fine dine establishment which is

quite famous and we feel that Hauz Khas Village needs such an establishment so as to

cater to the needs of the growing consumer trend as exhibited by the people.

This survey is purely educational. We assure you that your personal information will not

be disclosed under any circumstances. Please feel free to attach your business card below.

Thank you,

Shubhendu Vatsa

Marketing Intern

56

Name: ……………………………………………………………………………………..

Occupation: ……………………………………………………………………………….

Gender: …………………………………………………………………………………….

Age: ……………………………………………………………………………………….

Contact No.: ……………………………………………………………………………….

57

1. Which age group do you fall

under?

o 12-24 years

o 25-35 years

o 35-50 years

2. What is your income like? (Not applicable for

students) o Upto 5000

o 5000 – 10000 o

10000 – 15000

o 15000 and above

3. What is your pocket money like? (Students please tick the applicable option)

o Less than 500

o 500 – 1000

o1000 – 1500

o1500 – 2000

4. How would you categorize you’re eating habits?

o Vegetarian

o Non-Vegetarian

o Both

58

5. How often do you visit any fast food establishment?

o Once a week

o Twice a week

o Thrice a week

o More than twice

6. How much time do you spend in a fast food establishment?

o Less than 30 Minutes

o 30 Minutes – 1 Hour

o More than 1 Hour

o More than 2 Hours

7. How much money do you spend in a fast food establishment on an average?

o 100 – 200 Rupees

o 200 – 300 Rupees

o 300 – 400 Rupees

59

8. How would you rank any fast food joint of your choice based on: (Rank them

from 1-6)

Ambience Service Food Entertainment Hygiene Location

Quality & Parking

9. With whom do you generally visit the fast food establishment?

o Friends

o Spouse

o Family

o Alone

10. When you visit a fast food joint, the reason is….

o Occasion

o General

o To Break Monotony

o Habitual

11. At what time do you generally prefer going to fast food establishments?

o 11am – 3pm

o 3pm – 6pm

o 6pm – 10pm

60

12. When do you visit fast food establishments?

o Weekday

o Weekend

13. What kind of advertising media do you prefer?

o Print

o Television & Theatre

o Radio FM

o Word of Mouth

14. How far do you agree with this statement:

``I love to try out new and different places``

Strongly Disagree Strongly Agree

1 2 3 4 5

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15 Which other fast food establishments in Delhi-NCR Area do you visit? Rank

them on a scale of 1-5 based on which you prefer going to the most. (1 being

lowest, 5 being highest).

My favorite eating place 1 2 3 4 5

1.

2.

3.

4.

5.

16. How far do you usually travel to visit a fast food establishment?

o Less than 2 km

o 2km – 4km

o 4km – 6km

o 6km – 8km

o More than 8km

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Data Analysis

1. Which age group do you fall under?

Correspondents

50

40

30 Value in %

20 Correspondents

10

0 12-24 years 25-35 years 36-50 years

Age Group

Observation: Correspondents of the age group 12-24 have responded more in comparison

to the other age groups.

Inference: The age group of 12-24 is the age group that is dominating the food &

beverage market of Hauz Khaz Village, New Delhi

3. Which Income Bracket do you fall in?

Income Distribution

50

40

30 Value in %

20 Correspondents

10

0 <5000 5000 – 10000 11000 - 150000 15001 >

Income Brackets

63

Observation: A high amount of correspondents fall in the less than Rs.5000 bracket,

followed by those in the range from Rs.5000 and onwards.

Inference: The average income distribution is less than Rs.5000 in the city of New Delhi

4. What are your Eating Habits?

Eating Habits

60

50

40

Value in %30 Correspondents

20

10

0 Vegetarian Non-Vegetarian

Preference

Observation: More vegetarian consumers in comparison to non-vegetarian consumers

Inference: The people of Delhi-NCR prefer to have vegetarian products more in food and

beverage outlets.

5. How often do you visit any fast food establishment?

Frequency of Visit

45 40 35

30

Value in %

25

20 Correspondents

15

10

5

0 Thrice Twice Once

Frequency

64

Observation: The frequency of visits by a major share of the populous is once a week.

Inference: The people of Hauz khaz village visit most frequently to the current food &

beverage establishments.

6. How much time do you spend in a fast food establishment?

Time Spent

40 35

30

25

Valuein%20

15 Correspondents

10

5

0 <30 Minutes 30 Mins to 1 Hrs. More than 1 Hr

Time

Observation: Most correspondents have the tendency to spend 30 minutes to an hour at

the food and beverage establishments.

Inference: The turnover at the current food and beverage outlets is greatly hampered

because of the prolonged duration of stay by most guests.

65

7. How much money do you spend in a fast food establishment on an average?

Average Per Cover

35

30

25 20

Valuein%

15 Correspondents

10

5

0 Rs.200 Rs.300 Rs.400

APC

Observation: Most correspondents seem to spend around Rs.200 on an average

Inference: The average expenditure on food & beverage establishments is majorly from

middle class families which prefer to spend a little amount of their money on outside

food.

8. At what time do you generally prefer going to fast food establishments?

Time Slot

70 60

50 40

Value in %

30

20 Correspondents

10

0 1100 hrs.- 1500 1500 hrs- 1800 1800 hrs- 2200

hrs Hrs hrs

Hour of Visit

66

Observation: The correspondents don’t seem keen on visiting fast food establishments in

the morning or the afternoon.

Inference: The outlets must have more manpower in the evening to be able to cope with

the rush hour time preference of 1800hrs – 2200 hrs.

9. When do you visit fast food establishments?

Time of the Week

70 60

50 40

Valuein%30 Correspondents 20

10

0 Weekday Weekend

Week Slot

Observation: Very few people visit fast food establishments during weekdays.

Inference: The outlet must ensure that there are enough resources available to cater to the

weekend rush of the guest.

67

10. How far do you usually travel to visit a fast food establishment?

Distance Travelled

30

25

20

Valuein%15

10 Correspondents

5

0 Less Than 2 to 4 Km 4 to 6 Km 6 to 8 Km 2 Kms

Distances

Observation: There is a general distribution of the will to travel amongst the correspondents

Inference: The people in Aurangabad will and can travel in order to access good fast food

establishments across the city

Guest Perception Analysis

I 40

30 Ambience VI

II 20 Service

10

Food Quality

0

Entertainment

V

III Hygiene

Location &Parking

IV

Fig.3 Guest Perceptions from Fast Food Establishments