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MARKETING MANAGEMENT
FOOD AND BEVERAGES SECTOR
&
COMPANY REPORT
GROUP- 8
 GREESHMA SHARATH -21018
 VARSHA US – 21058
 SHREYANK W- 21048
 NANDU Krishnan – 21028
 S ALOKA - 21008
INTRODUCTION
Food and Beverages is one of the fastest growing sectors with numerous
opportunities which are encapsulated by peer competitiveness.
Developing valuable products and marketing them proficiently have
become an integral part of this industry. As people in this modern world
has been updating themselves quickly, food and beverages also has a
great task of evolving with time to come up with the changing needs of
customers. The companies who finally turn the raw materials into
consumer food products are included in this industry. They always find
innovative ways to produce the food consumers wantforthe bestpossible
rate. The supply chain here is very sensitive to time and should be
handled efficiently along with safety and hygiene.
Food and beverages industry in India stands 5th in terms of production,
consumption and exported growth. According to different statistics, food
production in India will be doubled in the next 10 years. India also has
the 6th largest food and grocery market with a 70% sales contribution
from the retail sector. 14% of manufacturing GDP, 13% of exports in
India and 6% of total industrial investments are headed by the food
processing industries. Even in the pandemic times, without stepping
back new offerings and covid 19 regulations are being implemented in
the industry to gain the trust of customers.
INDUSTRY TRENDS
Past
 The liberalization of economyin 1991 gave break through to the
food and beverage industryand the retail chain system like
super-marts gave lot of support to the food and beverage
industry by improving transportation and logistics
 The beverage like health drinks, energy drinks were not
growing at steadyphase due to lack of promotions
Present
 Demand has soared for packaged foods and beverages due to
busy lifestyles
 People have become more health conscious and are changing
their food habits accordingly. Ex: Coke diet and protein shakes
 Due to recent pandemicmany food and beverage startups have
been founded and are innovatingto produce new products
 People have also become interested towards fresh and healthy
grown organic foods
Future
 Consumers who are changingtheir food habits are more
conscious abouttheir food and diet and people are now looking
for content of nutrition value in their food as the food trackers
are easily accessible on the internettoday
 With the technologymovingin fast phase,drones can be seen
deliveringfood in near future
 Innovationand Structural changes in the agricultural system
can bring the maximum outputs by protecting the crops so
opportunityfor investments in innovatingfood and beverage
technologycan bring better health to our food eco system via
better food distribution
Porter’s Five Force Model
Porter's Five Forces is a framework for examining the competitive
environment of a company. To gain a competitive edge, a Five Forces
analysis can be used to influence business strategy. illustrate why
different industries can maintain varying revenues and profits. In 1980,
Michael E. Porter's book "Competitive Strategy: Techniques for
Analyzing Industries and Competitors" introduced the concept. The five
forces involve:rivalryin existingfirms, Potential ofnew entrants into the
industry,Powerofsuppliers,Powerofcustomers andThreatofsubstitute
products.
With respect to Domino’s:
Rivalry in existing firms:
If there is fierce competition among current participants in a sector,
prices will fall, and the industry's overall profitability will suffer. This
competition has a negative impacton the organization's overall long-term
profitability. Major corporations as well as smaller brands such as food-
joints and cafés, sell a variety of snacks and fast food, make up the
crowded business and ourcompetitors.The enormous numberofeateries
offering high-quality products is the competition's highlight. The
beverage industry's growth rate is not particularly high. Newcomers
have a minimal possibilityof breakinginto the field because ofthis trait.
Due to the dignity and promotion of the product among consumers,
current items in the market generate a competitive atmosphere for all
the players.
Negotiation power of buyers:
Buyers can be a demanding bunch. They aim to get the greatest deal
possible by paying the least amount of money feasible. Consumers have
a lot of negotiatingpowerin an area with a lot of places to eat and drink
since they can choose from any of them. If a store is overly crowded, for
example, a customer may prefer another business across the street. In
this context, the power of consumers to negotiate is determined by the
large number of vendors willing to accommodate them. However, in a
fast-paced restaurant operating in this location, a high consumer
negotiation approach is not a negative thing. Consumers switch items
based on how much they cost when it comes to beverage prices.
Negotiation power of suppliers:
The main suppliers in the food industry are dough, dairy products, and
meatretailers and the beverages are coffee,tea, and alcoholicbeverages.
Their negotiation power is less because there will be many suppliers for
these products. What determines negotiating power of small suppliers
here is the absence of distinction between supplierproducts. In the case
of the beverage industry, it is very easy to change to providers, so the
negotiating power of providers does not apply in this situation.
Potential new entrants:
New restaurantentrants bringinnovation and new ways ofdoingthings,
putting pressure on all the players of the market to lower prices, cut
costs, and provide new value propositions to customers. To maintain its
competitive advantage a companymusthandle all these issues and erect
effective barriers. To open a restaurant, an entrepreneur must get a
complex series of permits. In addition, a high-quality interior must be
installed.Thenthere's the workofcreatingmeals thatsetthis restaurant
apart from its competitors, which could involve international
connections. The most difficult aspect of launching a beverage business
is establishing distribution channels, as existing corporations maintain
important channels such as malls, restaurants, and gas stations.
Threatof substitute products:
Industry profitabilitydecreases when a new product or service meets
comparable clientwants in different ways. If a substitute product or
service offers a value proposition that is significantly different from the
industry's current offerings, it poses a significant threat. The absence of
isolation between accessibleitems is what defines the high dangerto
successors.The customers are differentwhen they have a choice. As a
result, participants had a significantimpact on the food sector. The
same price factor and qualitysupplied by two products at the same time
is the reason why clients do not switch from one drink to another.
However,most clients are hesitantto switch companies because ofthe
brand name and pride that businesses have built up in the industry
over the years.
PESTEL ANALYSIS
IndustryPestel Analysis forFoods and Beverages.The food and beverage
sector are the world's strongest business because all must eat and
survive. Its length is the same as the whole population of the earth.
Hotels, cafés, restaurants, tuck stores, potable bars and the company
serve food and drink. In other words, each other has its own hotel, food,
and beverage sectors. They are both aimed at nurturing customers and
fulfilling their desires.
FACTORS IMAPCTING ON PESTEL
POLITICAL
GovernmentRegulations
Manygovernments throughoutthe world have determinedthe scope and
framework for food sector operations. It takes labour rules, minimum
wages, food transportation, food storage, expiration dates, and kitchen
hygiene into account.
According to these and other standards, the food and beverage business
is one of the most strictly regulated industries in the world. The goal is
to preserve the safety and nutrition of ordinary people who just want to
eat and satisfy their appetite.
ECONOMICAL
Growth Rate
As per Statista, the food industry's global annual sales will be around
$8,049,240 million dollars in 2021,with a 3.14 percent annual growth
rate. The food industry's market share for snacks and confectionary
goods in 2021 is estimated to be $1,399,815million dollars.
High LaborCost
Labourunions and governmental legislators are debatingthe basicwage.
Certain countries have already increased the minimum wage. Workers
will profit from the salary raise.It is not, however,beneficial for the food
sector because it causes them to forgo earnings.
EconomicRecession
The outbreakCovid-19 broughtthe world market to a recession,leading
to higher high unemployment and low consumer buying power.
Consequently, with their spending, humans have become incredibly
thrifty. They now avoid spending extra money on fantastic foods and
beverages because of their constrained incomes. The sale of food and
drink companies has been limited.
SOCIAL
Diet Caution
Food and beverage industries and companiesshould be familiarwith the
current dietary habits in which they plan to launch their product.
Several people are now aware of their diet and avoid salty, spicy, oily, or
sweet food. This helps to develop diabetes, high blood pressure and
certain other health issues. Food and beverage companies should
however investigate the tastes of their customers.
HealthyTrends
People seem to be getting more interested in diet and physical activity.
Many use smartwatches and other technology devices to keep track of
their health and eating.People avoid unhealthyand quickmeals because
of such practices. To keep up with health trends, numerous food
businesses are changingtheir cooking ways and transitioningto a plant
diet.
Halal Meat
Ensure your meat in the Muslim consumer market is Halal. In
accordance with Islamic religious views, the animal should be executed.
Numerous worldwide businesses have meet Halal meat in Muslim
nations. Business firms also need to understand the views and values of
their potential consumers.
TECHNOLOGICAL
E-Commerce
The covid-19 epidemic, disguise, and social isolation have hastened the
growth of e-commerce and online enterprises. Many millennials and
members of Generation Z prefer to shop online. A food company should
follow these trends and create its own internet platform to attract more
clients.
LEGAL
Safety Regulations
Food firms have very severe health and food safety regulations to follow.
For example,the amountof oil and salt you use, the correct temperature,
properlyground grilled food storage,the expirydate, cleanliness,and the
transportation of food should be clarified. Therefore, food companies
must operate in accordance with health and safety requirements.
The meat sector has a significant environmental impact. It's because
meat producers are increasingtheir ranches to feed their animals.It has
led in forest destruction. That is why many people are turning to
vegetarian diets. In any case, it will have no effect on the food industry,
buttheymustbe aware ofthe environmental dimensionofsustainability.
ZOMATO
PROFILE
 Zomato is an online website which provides restaurant search
and discovery service
 Deepinder Goyal and Pankaj Chaddah founded Zomato in 2010
and its headquarters located at Gurugram
 Zomato has a current market valuation of $5.4 billion
 Majorstake holders of companyare Info Edge (18.6%)and Uber
(9.1%)
 Zomato is named among top 25 most promising internet
companies in India by smart techie magazine because of its
consistent performance and success
HISTORY
 The service started as Foodiebay in the cafeteria of bain and
company in 2008
 In November 2010, the company was renamed as Zomato
 In 2011,Zomato started to cover in Bangalore, Pune,Delhi,and
they launched application for IOS, Android and Blackberry
 In 2012, company began its operation in the countries like
United Arab Emirates, United Kingdom and Srilanka
 In 2013, Zomato started its services in Brazil, Turkey, and
Indonesia
 In 2020, contactless diningwas introduced to get ready for post
lockdown world
 On 23rd July 2021, Zomato made stellar debut in stock market
listing at price of Rs 115
MISSION
To ensure nobody has a bad meal
VISION
Zomato want to be GOOGLE of food
STRATEGIC BUSINESS UNIT
Food Delivery
 The major revenue of the company comes from restaurant
advertisement
 The company earns through restaurants who pay a commission
for each delivery,which is split amongthe delivery partners and
company
 The revenue ofZomato in food deliveryin FY19 was $115million
Subscription Programs
 Zomato gold is a premium subscription service, which was
started in 2018
 The benefit of Zomato gold is that it allows customers to get
complimentary food and drink at the time of ordering from
partner restaurants
Live Events
 Zomato recently introduced Zomaland in 2019
 Zomato charges users an entry fee to attend Zomaland where
people can witness live musical performance and have food
SWOT ANALYSIS
Strengths
 Zomato is market leader of its sector, and it has gained trust of
customers
 Zomato has crossed market cap of 1 billion
 Zomato provides most user-friendly app for smartphones
 Zomato has 90 million monthly users and acquired multiple
companies
Weakness
 Service of Zomato in rural areas is limited
 Usage of online food could limit home cooking
 Fast development infers weakness to ruin content
Opportunities
 Opportunity to extend business in more nations
 Coverage to more rustic region
 Zomato can acquire more small players in this space
Threats
 Securing the client information due to cyber attack
 Intense contentionfrom other food services such as swiggy,
foodpanda
 Different players can easily emulate the business model affecting
the business in long run
DOMINO’S PIZZA
PROFILE
With more than 18,000 locations in 90 countries or more, Domino'sis the
world's largest pizza restaurantchain in terms of retail sales worldwide.
The roots of the company date back in 1960, lie in easy pizza delivery,
while carryout consumers are responsible fora substantial portion ofthe
business. Even after the fact that the company is a globally renowned
brand, they are committed to assisting the communities in which they
live and work.
HISTORY
Domino’s is one of the most famous and reputed brands when it comes to
pizzas. I do not think one can talk about pizza without taking the name
of this reputed and widespread brand. As we know a lot of corporate
success stories start small and Dominos is one of them. The company
started in 1960 with single store in Michigan. The brothers Tom
Monaghan and James started this store by borrowing $900 and initially
named it"Dominick’s.”The companywasjointlyrun bythe brothers until
James Monaghan gave up on half of his shares to go for a second-hand
cars business. Tom wanted to rename the company in 1965 and that is
when “Dominick’s” changed into "Domino's Pizza, Inc." The company
started with fast and free delivery which was huge success and
reputation started growing out of one’s imagination, the first ever
Domino’s franchise store opened in Ypsilanti, Mich.
The company faced lot of hurdles on its way to success, the company
headquarters and commissarygot destroyed by fire, but they did not give
up, they notonly builtthe headquarters backfrom ashes butalso opened
the first store outside Michigan in 1968.Theyalso faced a lawsuitagainst
the company for infringement of trademark from Amstar Corporation,
maker of Domino Sugar in 1972 but by 1980 the court ruled in the favor
of Domino’sresultingin not havingto pay damages or change the name.
Dominos kepton growing and building its reputation by the product and
the free fast delivery provided. The 200th franchise store opened in 1978
making it one the biggest franchise of that time. The first ever
international store opened in Winnipeg, Canada. The first store on the
Australian continent,in Queensland and manymore started, taking the
company to new heights. In 1983, the company celebrated and thanked
its customers all over the world on opening of 1000th store. A lot more
countries like Japan, England, South American Columbia were very
welcoming of the company. In 1985 Domino’s by opening more than 900
units in single year became the fastest growing pizza company in the
entire world.
In 1989 the company opened its 5000th store along with which they
introduced a new product called ‘pan pizza’. In early nineties with more
than 1000 stores all over the world, they started coming with bread
sticks, the first ever non pizza item. They came up with different
marketing techniques like 30 minutes guarantee delivery, if the
experience of dining is not good then we refund and many more,
attracting huge customers and franchisees.The growth of companyset a
benchmark in the industry of food. The expansion and market
penetration this company made in early to mid-nineties is huge. The
company went online in 1996 by launching its website
www.dominos.com.In 1997,Dominos redesigned its entire chainofstores
giving it modern look with brighter colors.
The companymade a lotof technological developments in packingso that
the delivered pizzas are hot and crisp, they called it “Domino’s heat
wave”. In the year 1998 Tom announced his retirement, giving up the
ownership to Bain Capital, Inc naming David A. Brando as the new
chairman and CEO of the company. Domino's Pizza is celebrating 40
years of pizza delivery to homes across the world. Dominos has blazed
the path for businesses involved in food delivery over the last four
decades, utilizing procedures that have set the industry standard.
Domino's Pizza has announced record-breakingresults forthe year 2000.
Sales have surpassed $3.54 billion globally. In comparison to 1999,
revenue climbed by 5.3 percent.
The company got into lot of different campaigns and corporate social
responsibilityprograms like ‘make a wish’, red cross societies, charity of
choice and more building the social reputation for betterment. The
companygot recognized as world leaderof pizza and went public on New
York Stock Exchange in July 2004. After numerous innovations,
advancement, and top management changes it reached a new global
height. In 2011, Patrick Doyle was awarded the best CEO by CNBC.
In 2012, Dominos came up with logo and pizza theater store design
changing huge part of customer experience. They also came up with
android apps to order pizza online. They had huge celebrations by
opening the 10,000th store in turkey adding up more and more feathers
to its crown. The companymade a few agreements and partnerships with
different companies in various sectors to increase the width of the
company.
Even in tough year like 2020, the company did great. They came with
differentstrategic plans and marketingtechniques to reach out to all the
customers and satisfy all the needs in the market. The lockdown and
quarantine acted as positives to the company with such good delivery
systems and retails in place, the company did not have much trouble in
adjusting to the new normal.
DOMINOS IN INDIA
In 1996, the first ever Domino's Pizza location in India opened in New
Delhi. In 2019, India was Domino's second-largest market, after the
United States, which surpassed the United Kingdom. In the year 2014
December, India overtook the United States as Domino's second-largest
market. As of December 31, 2019, Domino's Pizza had 1,325 locations
across 282 Indian cities. Domino's started taking online orders in 2011,
and they now account for almosta third of all orders. To saythe least it’s
one of the most loved and respect brands in the country, looking at the
sales its evident that Indian customers absolutely love the service
provided by the company.
MISSION
To redefine conveniencebycreatinginspired food,pickedup in 3 minutes
or safely delivered in 10.
VISION
To lead the internet of food in every neighborhood.
VALUES
 Treat others the way you want to be treated.
 Produce the finest for the least amount of money.
 What's important is measured, managed, and shared.
 Think big and expand your horizons.
 Motivate yourself to make the changes you wish to make.
 Set a high bar, train hard, and never stop learning.
 Internal promotion is a good idea.
 We are not ordinary; rather, we are extraordinary.
STRATEGIC BUSINESS UNITS
A strategic business unit, or SBU for short, is a completely functional
businessunitwith its own vision and strategy. A SBU is typically run as
a separate entity, but it is also an integral aspect of the organization. It
communicates its operational activities to the headquarters time to time
and takes responsibility of its working by separate management.
As we know Domino’s is franchisee chain which cannotbe considered as
a separate strategic business unit because even tough each franchisee
have its own management, they have no freedom to take any major
decisions and will have to follow the main strategy taken by the
headquarters. Strategic business units are formed based on product
segmentation which cannot in done in the area Dominos work.
SWOT ANALYSIS
Strengths
 Domino's is a very well-known brand with a high level of
customer loyalty.
 Apart than pizzas, Domino's provides a wide selection of items.
 They offer food that is both hygienic and served quickly.
 When comparedto its competitors,it is numberone in online and
mobile ordering.
 Dominos has a greatbrand equitythat is backed up by extensive
advertising and marketing activities.
 More than 3,500 franchise businesses in more than 50 countries
 It can preserve its goodwill and promises with efficient and
effective supply chain management.
 Dominos employs almost 200,000 people worldwide.
 The stores don’t require a posh environment or amusement in
the shop,which makes setup costs affordable to the dealers,and
the pizza is priced quite reasonably for the customers.
 Dominos is working towards modification of its dough to add in
better fats, which can be done by makingwhole wheatbreads, to
support customer health awareness. Pizza toppings are made
healthier as well, and some stores are also trying to add salads
to their menus.
Weakness
 Health-consciouspeople considerhigh-fatand high-calorie foods to
be unhealthy.
 Because of the fierce competition,Domino's is only gaininga little
percentage of the market.
 Domino's is branded for its pizza, but it also offers a wide variety
of side dishes which are ignored by majority of its customers.
 The large numberof stores locations makes it harderto operate.
Quality control is challengingas well. As a result, numerous
Domino’s locationshave shutdown,makinga negative impact on
brand image.
 Dominos is a companyhaving majorattrition problem as a result
of a lack of sufficient trainingand development.The personnel
utilized is untrained,they frequentlychange employmentif they
are not able to acclimate to the fast-paced workplace.
Opportunities
 Improve home delivery service and efficiency, which is a major
differentiation factor for Dominos.
 Dominos may take a big step forward by making available new
taste enhancers and tailor pizza toppings in accordance with
region.
 The distribution network should be strengthened much more in
order to make sure maximum market penetration in already
existing markets.
 Growing visibility and availability in emerging markets,
especially India and China.
 By coming up with health-conscious menu with brand new and
different varieties of taste enhancers that are low in fat helping
in future revenue growth.
 Introducing unique and exclusive Domino’s restaurants in posh
regions helpingthe firm in increasingbrand recognition as well
as attract clients who prefer to dine in luxury places.
Threats
 Dominos' business may be harmed by intense rivalry from a
smattering of small competitors who offer a range of pizzas.
 Dynamic consumer habits focused towards eating healthier
foods.
 Governmentrules,regulations andlaws thatcan have an impact
on global enterprises.
 The expense of sustaining the chain stores rises along with the
cost of veggies and other raw materials. Furthermore,
competition has an impact on the company's working. Which
results in challenging cash flow management.
MTR FOOD COMPANY
COMPANY PROFILE/HISTORY
MTR foods was founded by “Yagna Narayana Maiya” in 1924.Today,
MTR foods stands tall as one of the country's legacy brands. The firm
name was drawn from a well-known name. Mavalli Tiffin Rooms began
as a single restaurantin Bangalore. Tiffin is an Indian term for a small
meal or lunch that dates to old times and members of the Maiya family
ran the place. It was one of the small restaurants where guests paid a
single sum to the cashierand were served a five-course vegetarian meal.
It showed no favoritism; VIPs stood in line with the rest of us. The
restaurantis still open;however,it is no longeraffiliated with MTR Food
Ltd. MTR Foods has taken significant steps to relaunch its brand and
establish itselfin the homes ofmodern customersacross the country. The
venture's fresh brand identity and distinctive innovation. The company
aspires to be the country's leader in the quick food sector, with spices
flowingfreely throughoutthe southern region. Itis one of India's largest
packaged food distributors. The company aspires to be the country's
leaderin the quick food sector, with spices flowing freely throughoutthe
southern region. It is one of India's largest packaged food distributors.
The company has solidified its market leadership in the country's south
and is on track to achieve substantial pan-India growth. Its products
include vegan snack items, chips, ready-to-eat meals, and pre-cooked
entrees,with a focus on southern INDIA cuisine. Pickles,vermicelli,and
over 30 flavors of ice cream and ice cream cones were among the
alternative offerings.
STRATEGIC BUSINESS UNITS
Market Segmentation and Product Offering
MTR foods operates in the food sectorwith qualityas a product to attract
and keep customers. Any corporation is effective in strategy when it can
map its internal resources with the external environment and generate
value forcustomers while alsogeneratingrevenue forthe company. MTR
has a tradition of “Marketing strategy thinking” in the food industry
dating back seven and a half decades. MTR is a marketing marvel
because it understands the industry environment demand drivers that
influence the food sector such as food preferences, food consumption of
clients. MTR claims the global record for being the first fast food
restaurant to serve 21000 people in under seven hours. The MTR food
product company supplied a wide variety of packaged food items. It
primarily concentrated on traditional recipes, high-quality oil, and a
variety of other top components to maintain and ensure the scent, taste,
and flavor of homemade food. The packaging met high hygiene
standards, and the packs remained crisp and fresh. Breakfast, meals,
and snacks,such as frozen foods,were amongthe goods itprepared. This
business specialized in “product and quality certifications” from various
food safety authorities. The company's product mix can produce enough
moneyto keep the business afloat. The items were first sold through the
company's own MTR tiffin centers, and thereafter through other retail
outlets. Starting in Bengaluru, Karnataka, as its headquarters, the
company's products were shipped to many countries throughout the
world, including the United States, the United Kingdom, the Middle
East, and many other Asian countries. They started a franchise called
SuperShops. It offers a robustand comprehensivedistributionnetwork,
which comprises distributor and retailer services. The products can be
found in bargain stores, hypermarkets, and grocery stores, among other
places. JP Morgan andMagnus Capital Corporationown up to 28 percent
and 14 percentof MTR, respectively. MTR was one of the earliestIndian
restaurants to open in the global markets.
MTR's parent business, Orkla, also made a significant change. Their
brand underwent a makeover, including a new logo and packaging, as
well as a shift in advertisingtone. Orkla has agreed to pay Rs 2000 crore
for a majority stake in Kerala's largest spice company, Eastern
Condiments, with the goal of doubling its spice footprint in India.
The sector is also now regularly generating more than 20% of the
company's morningsales and has assisted them in gaininga 5% share of
the breakfast market. In the breakfast arena, the North is also their
largest market, indicatingthat it is not just the south region. Outside of
south India, they account for more than 20-22 percent of total domestic
sales. MTR also invested in Timios, a local entrepreneur brand in the
nutrition market; this is their first investment in that category, and it
continues to operate as a separate organization. MTR foods pvt ltd
recently joined with online food and grocery delivery service “SWIGGY.”
Customers will be able to purchase MTR products via this channel.
MISSIONAND VISION
MTR's mission is to become an important partner in every kitchen,
assisting in the preparation of genuine and delectable Indian cuisine
while also embracing cultural shifts throughout time. MTR invests in
developing people's capability and competence to build an organization
capable of delivering on the vision. To strengthen and promote chances
for the company's future, the company has invested in many
organizational development initiatives.
The first step was to create the necessary organisational frameworks to
carry out the approach. They also worked methodically to engage their
employees and develop solid organizational values, as well as to set
direction for the firm and integrate the personnel with the overarching
mission. The process was dubbed "Building our Future." It has also
organised a wide range of instructional programmes for managers and
employees to raise awareness, boost functional knowledge, and grow
professionally. Managerial developmentprogrammes,food safety,health
and safety at work, interpersonal teamwork, and life skills were among
the topics covered during the course. MTR established campus activities
in 2010 to recruit exceptional students.
SWOT ANALYSIS
Strength
 Understanding of industrial environment demand drivers that
influence the food sector, such as consumer food habits and food
consumption.
 It serves onlyvegetarian food and places a premium on hygiene and
food quality.
 It introduced packaging method in which no preservatives were
added to the food during packaging. It also ensures thatthe food in
the packets stays crisp and fresh.
 It ensures thatthe homemade aroma,taste,and flavorare retained.
 Pocket friendly and affordable rates will help the companyin
reachingfurther markets.
Weakness
 Non-vegetarians would be unable to select this option because it is
100% vegetarian.
 Manyindividuals believe thatstore-boughtfood is inferiorto home-
cooked cuisine.
 It can be a significant challenge because it is supplying packaging
technology without preservatives.
Opportunities
 The Indian food processing business represents for 32% of the
country's overall food market, hence MTR has a sizable market.
 There is a lot of promise and a bright future in the organized food
business.
 MTR's entry into the e-commerce platform benefits them because
the online delivery market is developing at a rate of 150 percent
year on year.
Threats
 Competition from othercompanies operatingin the same segments
as MTR poses a threat to the company. As a result of this, MTR
will have to increase its promotion and its costs, and it will no
longer be able to provide the same prices as before.
Nestlé
INDUSTRY: FOOD AND BEVERAGES
FOUNDER: Henri Nestlé
FOUNDED: 1866
HEADQUARTERS: VEVEY, SWITZERLAND
PROFILE
“Nestlé” is a Swiss-German wordwhich means “Little Nest” which is its trademark.
Itis the world’s largestand leading food, nutrition, health, and wellness company.
According to the turnover, nestle stands in the 5th
position among its competitors.
Nestle has set its foot in 81 countries with 522 factories running all around the
world. Nestle has spread widely with 280,0000peoplefrom almost 120 countries.
HISTORY
Nestlé was founded in 1866 in Vevey,Switzerland.Thelogo ofnestle was
introduced by Henri Nestle which had a German meaning ‘Little Nest’
and included his family emblem. Henri Nestle at the initial days of his
career itself identified the prominence of branding and collaboration.
After all these years, his dream has grown into a well-established
nutrition, health, and wellness company with an attractive mission
statement of “Good food, Good life.” Their motto is to provide the
customers with good quality food and beverages with a wide range of
choices to suitanyoccasion.". Nestle has been flourishingits marketover
117 countries and depending upon the food habits of the regions, they
have shaped their entire system.
From 1912, nestle has a good connection with India as they started
trading The Nestle Anglo Swiss Condensed Milk Company. After being
independent,Indian governmentinsisted on local production with a new
set of economicpolicies.Thereby Nestle formed its first companyin India
by establishing a factory in 1961 at Moga, Punjab.
MISSION
Nestle’s mission is to deliversafe consumerfoods which are of very high
qualityand with propernutrients.Nestle has a wide variety of selections
for different individual tastes and preferences. Their motto is: "Good
Food, Good Life."
VISION
Nestle’s aim is to achieve the different interests of consumers everyday
by marketingand sellingvery high-qualityproducts.To be recognized as
the leadingcompanyofthis sectorin a global perspective is theirultimate
vision.
STRATEGIC BUSINESS UNIT
They have a total of seven different strategic business units. These
individual units devise the strategies forbusiness developmentand high-
level decision makings including market strategies. Apart from this,
there is also a regional organization that divides the world into 5
geographic zones. They regulate the regional strategies which helps in
the overall developmental processes. devising regional strategies and
helping in the overall strategy development process. Nestle is also
focusing on four main areas from 2017 which includes bottled water,
coffee, infant nutrition, and pet care.
SWOT ANALYSIS
Strength
 Nestle’s specialty is implementinguniquemarketingstrategies
that can grab the attention of customers across the globe.
 Theyalso conduct research periodicallyto analyze the market
trend and use it effectively for financial,marketingand sales
strategies.
 Nestle’s effective strategy is “ThinkGlobally,Act Locally” which
formulates products according to various diversities.
 Moreover,they use the desirable languagesuitable foreach
country.
 Ultimately Nestle has the commendablebrand image to attract
customers globally.
Weakness
 Companyhas faced criticism because of not balancingtheir
nutritional value,international standards,and demand for
standardization.
 They also must be equipped with a strong strategic move for
getting accepted to different cultural backgrounds.
 Nestle has also faced backlashes overhigh usage of water,
negative unionism,forced child laborand usage of other
unethical processes and contaminated food recalls.
Opportunities
 To widen the cold diary product’s range, nestle has made a new
addition of Nestle fruit yogurt. This market opens a wide
variety of opportunities as they can investon it with the best
qualitymilk.
 Yet anotherperk is the coffee brand which attract the
customers vibrantly.
 Nestle has also made credit policies for the expansion of sales.
Threats
 One threat is the price swings due to devaluationof rupee
which can affect the imported raw materials.
 The unpredictabilityof economicscenario stands as a major
concern as the investments in India are flowingfrom foreign
countries.
 The present economicinstabilityin the world, resulted in the
withdrawal of foreign investments from the companywhich
lead to a stagnantposition.
 Different seasonality’s also affects the sales to a certain extent.
KFC
INTRODUCTION
 KFC is an American fast-food +restaurantchain its headquarters
is in Kentucky.
 YUM brands are a parent companyof KFC.
 It was founded by Harland Sanders.
MISSION
 To maximize profitability, improve shareholdervalue and deliver
sustainable growth year after year.
VISION
 To be integrated food services group in ASEAN region and
deliveringconsistentqualityproducts.
SWOTANALYSIS
Strengths
 KFC has a strong international presence as it is having 18875
outlets around the world.
 KFC has a fast growth rate as it has expanded its business in
Asian countries.
 KFC has a strong revenue of $16 billion.
Weakness
 KFC has faced lot of criticism on food.
 KFC has a lot of issues on franchise operation.
Opportunities
 KFC has a huge opportunityon expandingits business.
 KFC should have a vegetarian menu to gain more revenue.
Threats
 KFC has a lot of competitions like Dominos and McDonald’s.
 Rising cost of resources such as raw material and labour

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Sdmimd mm report (2)

  • 1. MARKETING MANAGEMENT FOOD AND BEVERAGES SECTOR & COMPANY REPORT GROUP- 8  GREESHMA SHARATH -21018  VARSHA US – 21058  SHREYANK W- 21048  NANDU Krishnan – 21028  S ALOKA - 21008
  • 2. INTRODUCTION Food and Beverages is one of the fastest growing sectors with numerous opportunities which are encapsulated by peer competitiveness. Developing valuable products and marketing them proficiently have become an integral part of this industry. As people in this modern world has been updating themselves quickly, food and beverages also has a great task of evolving with time to come up with the changing needs of customers. The companies who finally turn the raw materials into consumer food products are included in this industry. They always find innovative ways to produce the food consumers wantforthe bestpossible rate. The supply chain here is very sensitive to time and should be handled efficiently along with safety and hygiene. Food and beverages industry in India stands 5th in terms of production, consumption and exported growth. According to different statistics, food production in India will be doubled in the next 10 years. India also has the 6th largest food and grocery market with a 70% sales contribution from the retail sector. 14% of manufacturing GDP, 13% of exports in India and 6% of total industrial investments are headed by the food processing industries. Even in the pandemic times, without stepping back new offerings and covid 19 regulations are being implemented in the industry to gain the trust of customers.
  • 3. INDUSTRY TRENDS Past  The liberalization of economyin 1991 gave break through to the food and beverage industryand the retail chain system like super-marts gave lot of support to the food and beverage industry by improving transportation and logistics  The beverage like health drinks, energy drinks were not growing at steadyphase due to lack of promotions Present  Demand has soared for packaged foods and beverages due to busy lifestyles  People have become more health conscious and are changing their food habits accordingly. Ex: Coke diet and protein shakes  Due to recent pandemicmany food and beverage startups have been founded and are innovatingto produce new products  People have also become interested towards fresh and healthy grown organic foods Future  Consumers who are changingtheir food habits are more conscious abouttheir food and diet and people are now looking for content of nutrition value in their food as the food trackers are easily accessible on the internettoday  With the technologymovingin fast phase,drones can be seen deliveringfood in near future  Innovationand Structural changes in the agricultural system can bring the maximum outputs by protecting the crops so opportunityfor investments in innovatingfood and beverage technologycan bring better health to our food eco system via better food distribution
  • 4. Porter’s Five Force Model Porter's Five Forces is a framework for examining the competitive environment of a company. To gain a competitive edge, a Five Forces analysis can be used to influence business strategy. illustrate why different industries can maintain varying revenues and profits. In 1980, Michael E. Porter's book "Competitive Strategy: Techniques for Analyzing Industries and Competitors" introduced the concept. The five forces involve:rivalryin existingfirms, Potential ofnew entrants into the industry,Powerofsuppliers,Powerofcustomers andThreatofsubstitute products. With respect to Domino’s: Rivalry in existing firms: If there is fierce competition among current participants in a sector, prices will fall, and the industry's overall profitability will suffer. This competition has a negative impacton the organization's overall long-term profitability. Major corporations as well as smaller brands such as food- joints and cafés, sell a variety of snacks and fast food, make up the crowded business and ourcompetitors.The enormous numberofeateries offering high-quality products is the competition's highlight. The beverage industry's growth rate is not particularly high. Newcomers have a minimal possibilityof breakinginto the field because ofthis trait. Due to the dignity and promotion of the product among consumers, current items in the market generate a competitive atmosphere for all the players.
  • 5. Negotiation power of buyers: Buyers can be a demanding bunch. They aim to get the greatest deal possible by paying the least amount of money feasible. Consumers have a lot of negotiatingpowerin an area with a lot of places to eat and drink since they can choose from any of them. If a store is overly crowded, for example, a customer may prefer another business across the street. In this context, the power of consumers to negotiate is determined by the large number of vendors willing to accommodate them. However, in a fast-paced restaurant operating in this location, a high consumer negotiation approach is not a negative thing. Consumers switch items based on how much they cost when it comes to beverage prices. Negotiation power of suppliers: The main suppliers in the food industry are dough, dairy products, and meatretailers and the beverages are coffee,tea, and alcoholicbeverages. Their negotiation power is less because there will be many suppliers for these products. What determines negotiating power of small suppliers here is the absence of distinction between supplierproducts. In the case of the beverage industry, it is very easy to change to providers, so the negotiating power of providers does not apply in this situation. Potential new entrants: New restaurantentrants bringinnovation and new ways ofdoingthings, putting pressure on all the players of the market to lower prices, cut costs, and provide new value propositions to customers. To maintain its competitive advantage a companymusthandle all these issues and erect effective barriers. To open a restaurant, an entrepreneur must get a complex series of permits. In addition, a high-quality interior must be installed.Thenthere's the workofcreatingmeals thatsetthis restaurant
  • 6. apart from its competitors, which could involve international connections. The most difficult aspect of launching a beverage business is establishing distribution channels, as existing corporations maintain important channels such as malls, restaurants, and gas stations. Threatof substitute products: Industry profitabilitydecreases when a new product or service meets comparable clientwants in different ways. If a substitute product or service offers a value proposition that is significantly different from the industry's current offerings, it poses a significant threat. The absence of isolation between accessibleitems is what defines the high dangerto successors.The customers are differentwhen they have a choice. As a result, participants had a significantimpact on the food sector. The same price factor and qualitysupplied by two products at the same time is the reason why clients do not switch from one drink to another. However,most clients are hesitantto switch companies because ofthe brand name and pride that businesses have built up in the industry over the years.
  • 7. PESTEL ANALYSIS IndustryPestel Analysis forFoods and Beverages.The food and beverage sector are the world's strongest business because all must eat and survive. Its length is the same as the whole population of the earth. Hotels, cafés, restaurants, tuck stores, potable bars and the company serve food and drink. In other words, each other has its own hotel, food, and beverage sectors. They are both aimed at nurturing customers and fulfilling their desires. FACTORS IMAPCTING ON PESTEL POLITICAL GovernmentRegulations Manygovernments throughoutthe world have determinedthe scope and framework for food sector operations. It takes labour rules, minimum wages, food transportation, food storage, expiration dates, and kitchen hygiene into account. According to these and other standards, the food and beverage business is one of the most strictly regulated industries in the world. The goal is to preserve the safety and nutrition of ordinary people who just want to eat and satisfy their appetite.
  • 8. ECONOMICAL Growth Rate As per Statista, the food industry's global annual sales will be around $8,049,240 million dollars in 2021,with a 3.14 percent annual growth rate. The food industry's market share for snacks and confectionary goods in 2021 is estimated to be $1,399,815million dollars. High LaborCost Labourunions and governmental legislators are debatingthe basicwage. Certain countries have already increased the minimum wage. Workers will profit from the salary raise.It is not, however,beneficial for the food sector because it causes them to forgo earnings. EconomicRecession The outbreakCovid-19 broughtthe world market to a recession,leading to higher high unemployment and low consumer buying power. Consequently, with their spending, humans have become incredibly thrifty. They now avoid spending extra money on fantastic foods and beverages because of their constrained incomes. The sale of food and drink companies has been limited. SOCIAL Diet Caution Food and beverage industries and companiesshould be familiarwith the current dietary habits in which they plan to launch their product.
  • 9. Several people are now aware of their diet and avoid salty, spicy, oily, or sweet food. This helps to develop diabetes, high blood pressure and certain other health issues. Food and beverage companies should however investigate the tastes of their customers. HealthyTrends People seem to be getting more interested in diet and physical activity. Many use smartwatches and other technology devices to keep track of their health and eating.People avoid unhealthyand quickmeals because of such practices. To keep up with health trends, numerous food businesses are changingtheir cooking ways and transitioningto a plant diet. Halal Meat Ensure your meat in the Muslim consumer market is Halal. In accordance with Islamic religious views, the animal should be executed. Numerous worldwide businesses have meet Halal meat in Muslim nations. Business firms also need to understand the views and values of their potential consumers. TECHNOLOGICAL E-Commerce The covid-19 epidemic, disguise, and social isolation have hastened the growth of e-commerce and online enterprises. Many millennials and members of Generation Z prefer to shop online. A food company should follow these trends and create its own internet platform to attract more clients.
  • 10. LEGAL Safety Regulations Food firms have very severe health and food safety regulations to follow. For example,the amountof oil and salt you use, the correct temperature, properlyground grilled food storage,the expirydate, cleanliness,and the transportation of food should be clarified. Therefore, food companies must operate in accordance with health and safety requirements. The meat sector has a significant environmental impact. It's because meat producers are increasingtheir ranches to feed their animals.It has led in forest destruction. That is why many people are turning to vegetarian diets. In any case, it will have no effect on the food industry, buttheymustbe aware ofthe environmental dimensionofsustainability.
  • 11. ZOMATO PROFILE  Zomato is an online website which provides restaurant search and discovery service  Deepinder Goyal and Pankaj Chaddah founded Zomato in 2010 and its headquarters located at Gurugram  Zomato has a current market valuation of $5.4 billion  Majorstake holders of companyare Info Edge (18.6%)and Uber (9.1%)  Zomato is named among top 25 most promising internet companies in India by smart techie magazine because of its consistent performance and success HISTORY  The service started as Foodiebay in the cafeteria of bain and company in 2008  In November 2010, the company was renamed as Zomato  In 2011,Zomato started to cover in Bangalore, Pune,Delhi,and they launched application for IOS, Android and Blackberry  In 2012, company began its operation in the countries like United Arab Emirates, United Kingdom and Srilanka  In 2013, Zomato started its services in Brazil, Turkey, and Indonesia  In 2020, contactless diningwas introduced to get ready for post lockdown world
  • 12.  On 23rd July 2021, Zomato made stellar debut in stock market listing at price of Rs 115 MISSION To ensure nobody has a bad meal VISION Zomato want to be GOOGLE of food STRATEGIC BUSINESS UNIT Food Delivery  The major revenue of the company comes from restaurant advertisement  The company earns through restaurants who pay a commission for each delivery,which is split amongthe delivery partners and company  The revenue ofZomato in food deliveryin FY19 was $115million Subscription Programs  Zomato gold is a premium subscription service, which was started in 2018  The benefit of Zomato gold is that it allows customers to get complimentary food and drink at the time of ordering from partner restaurants
  • 13. Live Events  Zomato recently introduced Zomaland in 2019  Zomato charges users an entry fee to attend Zomaland where people can witness live musical performance and have food SWOT ANALYSIS Strengths  Zomato is market leader of its sector, and it has gained trust of customers  Zomato has crossed market cap of 1 billion  Zomato provides most user-friendly app for smartphones  Zomato has 90 million monthly users and acquired multiple companies Weakness  Service of Zomato in rural areas is limited  Usage of online food could limit home cooking  Fast development infers weakness to ruin content Opportunities  Opportunity to extend business in more nations  Coverage to more rustic region  Zomato can acquire more small players in this space Threats  Securing the client information due to cyber attack  Intense contentionfrom other food services such as swiggy, foodpanda
  • 14.  Different players can easily emulate the business model affecting the business in long run
  • 15. DOMINO’S PIZZA PROFILE With more than 18,000 locations in 90 countries or more, Domino'sis the world's largest pizza restaurantchain in terms of retail sales worldwide. The roots of the company date back in 1960, lie in easy pizza delivery, while carryout consumers are responsible fora substantial portion ofthe business. Even after the fact that the company is a globally renowned brand, they are committed to assisting the communities in which they live and work. HISTORY Domino’s is one of the most famous and reputed brands when it comes to pizzas. I do not think one can talk about pizza without taking the name of this reputed and widespread brand. As we know a lot of corporate success stories start small and Dominos is one of them. The company started in 1960 with single store in Michigan. The brothers Tom Monaghan and James started this store by borrowing $900 and initially named it"Dominick’s.”The companywasjointlyrun bythe brothers until James Monaghan gave up on half of his shares to go for a second-hand cars business. Tom wanted to rename the company in 1965 and that is when “Dominick’s” changed into "Domino's Pizza, Inc." The company started with fast and free delivery which was huge success and reputation started growing out of one’s imagination, the first ever Domino’s franchise store opened in Ypsilanti, Mich.
  • 16. The company faced lot of hurdles on its way to success, the company headquarters and commissarygot destroyed by fire, but they did not give up, they notonly builtthe headquarters backfrom ashes butalso opened the first store outside Michigan in 1968.Theyalso faced a lawsuitagainst the company for infringement of trademark from Amstar Corporation, maker of Domino Sugar in 1972 but by 1980 the court ruled in the favor of Domino’sresultingin not havingto pay damages or change the name. Dominos kepton growing and building its reputation by the product and the free fast delivery provided. The 200th franchise store opened in 1978 making it one the biggest franchise of that time. The first ever international store opened in Winnipeg, Canada. The first store on the Australian continent,in Queensland and manymore started, taking the company to new heights. In 1983, the company celebrated and thanked its customers all over the world on opening of 1000th store. A lot more countries like Japan, England, South American Columbia were very welcoming of the company. In 1985 Domino’s by opening more than 900 units in single year became the fastest growing pizza company in the entire world. In 1989 the company opened its 5000th store along with which they introduced a new product called ‘pan pizza’. In early nineties with more than 1000 stores all over the world, they started coming with bread sticks, the first ever non pizza item. They came up with different marketing techniques like 30 minutes guarantee delivery, if the experience of dining is not good then we refund and many more,
  • 17. attracting huge customers and franchisees.The growth of companyset a benchmark in the industry of food. The expansion and market penetration this company made in early to mid-nineties is huge. The company went online in 1996 by launching its website www.dominos.com.In 1997,Dominos redesigned its entire chainofstores giving it modern look with brighter colors. The companymade a lotof technological developments in packingso that the delivered pizzas are hot and crisp, they called it “Domino’s heat wave”. In the year 1998 Tom announced his retirement, giving up the ownership to Bain Capital, Inc naming David A. Brando as the new chairman and CEO of the company. Domino's Pizza is celebrating 40 years of pizza delivery to homes across the world. Dominos has blazed the path for businesses involved in food delivery over the last four decades, utilizing procedures that have set the industry standard. Domino's Pizza has announced record-breakingresults forthe year 2000. Sales have surpassed $3.54 billion globally. In comparison to 1999, revenue climbed by 5.3 percent. The company got into lot of different campaigns and corporate social responsibilityprograms like ‘make a wish’, red cross societies, charity of choice and more building the social reputation for betterment. The companygot recognized as world leaderof pizza and went public on New York Stock Exchange in July 2004. After numerous innovations, advancement, and top management changes it reached a new global height. In 2011, Patrick Doyle was awarded the best CEO by CNBC.
  • 18. In 2012, Dominos came up with logo and pizza theater store design changing huge part of customer experience. They also came up with android apps to order pizza online. They had huge celebrations by opening the 10,000th store in turkey adding up more and more feathers to its crown. The companymade a few agreements and partnerships with different companies in various sectors to increase the width of the company. Even in tough year like 2020, the company did great. They came with differentstrategic plans and marketingtechniques to reach out to all the customers and satisfy all the needs in the market. The lockdown and quarantine acted as positives to the company with such good delivery systems and retails in place, the company did not have much trouble in adjusting to the new normal. DOMINOS IN INDIA In 1996, the first ever Domino's Pizza location in India opened in New Delhi. In 2019, India was Domino's second-largest market, after the United States, which surpassed the United Kingdom. In the year 2014 December, India overtook the United States as Domino's second-largest market. As of December 31, 2019, Domino's Pizza had 1,325 locations across 282 Indian cities. Domino's started taking online orders in 2011, and they now account for almosta third of all orders. To saythe least it’s one of the most loved and respect brands in the country, looking at the sales its evident that Indian customers absolutely love the service provided by the company.
  • 19. MISSION To redefine conveniencebycreatinginspired food,pickedup in 3 minutes or safely delivered in 10. VISION To lead the internet of food in every neighborhood. VALUES  Treat others the way you want to be treated.  Produce the finest for the least amount of money.  What's important is measured, managed, and shared.  Think big and expand your horizons.  Motivate yourself to make the changes you wish to make.  Set a high bar, train hard, and never stop learning.  Internal promotion is a good idea.  We are not ordinary; rather, we are extraordinary. STRATEGIC BUSINESS UNITS A strategic business unit, or SBU for short, is a completely functional businessunitwith its own vision and strategy. A SBU is typically run as a separate entity, but it is also an integral aspect of the organization. It communicates its operational activities to the headquarters time to time and takes responsibility of its working by separate management. As we know Domino’s is franchisee chain which cannotbe considered as a separate strategic business unit because even tough each franchisee have its own management, they have no freedom to take any major
  • 20. decisions and will have to follow the main strategy taken by the headquarters. Strategic business units are formed based on product segmentation which cannot in done in the area Dominos work. SWOT ANALYSIS Strengths  Domino's is a very well-known brand with a high level of customer loyalty.  Apart than pizzas, Domino's provides a wide selection of items.  They offer food that is both hygienic and served quickly.  When comparedto its competitors,it is numberone in online and mobile ordering.  Dominos has a greatbrand equitythat is backed up by extensive advertising and marketing activities.  More than 3,500 franchise businesses in more than 50 countries  It can preserve its goodwill and promises with efficient and effective supply chain management.  Dominos employs almost 200,000 people worldwide.  The stores don’t require a posh environment or amusement in the shop,which makes setup costs affordable to the dealers,and the pizza is priced quite reasonably for the customers.  Dominos is working towards modification of its dough to add in better fats, which can be done by makingwhole wheatbreads, to support customer health awareness. Pizza toppings are made healthier as well, and some stores are also trying to add salads to their menus.
  • 21. Weakness  Health-consciouspeople considerhigh-fatand high-calorie foods to be unhealthy.  Because of the fierce competition,Domino's is only gaininga little percentage of the market.  Domino's is branded for its pizza, but it also offers a wide variety of side dishes which are ignored by majority of its customers.  The large numberof stores locations makes it harderto operate. Quality control is challengingas well. As a result, numerous Domino’s locationshave shutdown,makinga negative impact on brand image.  Dominos is a companyhaving majorattrition problem as a result of a lack of sufficient trainingand development.The personnel utilized is untrained,they frequentlychange employmentif they are not able to acclimate to the fast-paced workplace. Opportunities  Improve home delivery service and efficiency, which is a major differentiation factor for Dominos.  Dominos may take a big step forward by making available new taste enhancers and tailor pizza toppings in accordance with region.  The distribution network should be strengthened much more in order to make sure maximum market penetration in already existing markets.  Growing visibility and availability in emerging markets, especially India and China.  By coming up with health-conscious menu with brand new and different varieties of taste enhancers that are low in fat helping in future revenue growth.  Introducing unique and exclusive Domino’s restaurants in posh regions helpingthe firm in increasingbrand recognition as well as attract clients who prefer to dine in luxury places.
  • 22. Threats  Dominos' business may be harmed by intense rivalry from a smattering of small competitors who offer a range of pizzas.  Dynamic consumer habits focused towards eating healthier foods.  Governmentrules,regulations andlaws thatcan have an impact on global enterprises.  The expense of sustaining the chain stores rises along with the cost of veggies and other raw materials. Furthermore, competition has an impact on the company's working. Which results in challenging cash flow management.
  • 23. MTR FOOD COMPANY COMPANY PROFILE/HISTORY MTR foods was founded by “Yagna Narayana Maiya” in 1924.Today, MTR foods stands tall as one of the country's legacy brands. The firm name was drawn from a well-known name. Mavalli Tiffin Rooms began as a single restaurantin Bangalore. Tiffin is an Indian term for a small meal or lunch that dates to old times and members of the Maiya family ran the place. It was one of the small restaurants where guests paid a single sum to the cashierand were served a five-course vegetarian meal. It showed no favoritism; VIPs stood in line with the rest of us. The restaurantis still open;however,it is no longeraffiliated with MTR Food Ltd. MTR Foods has taken significant steps to relaunch its brand and establish itselfin the homes ofmodern customersacross the country. The venture's fresh brand identity and distinctive innovation. The company aspires to be the country's leader in the quick food sector, with spices flowingfreely throughoutthe southern region. Itis one of India's largest packaged food distributors. The company aspires to be the country's leaderin the quick food sector, with spices flowing freely throughoutthe southern region. It is one of India's largest packaged food distributors. The company has solidified its market leadership in the country's south and is on track to achieve substantial pan-India growth. Its products include vegan snack items, chips, ready-to-eat meals, and pre-cooked entrees,with a focus on southern INDIA cuisine. Pickles,vermicelli,and over 30 flavors of ice cream and ice cream cones were among the alternative offerings.
  • 24. STRATEGIC BUSINESS UNITS Market Segmentation and Product Offering MTR foods operates in the food sectorwith qualityas a product to attract and keep customers. Any corporation is effective in strategy when it can map its internal resources with the external environment and generate value forcustomers while alsogeneratingrevenue forthe company. MTR has a tradition of “Marketing strategy thinking” in the food industry dating back seven and a half decades. MTR is a marketing marvel because it understands the industry environment demand drivers that influence the food sector such as food preferences, food consumption of clients. MTR claims the global record for being the first fast food restaurant to serve 21000 people in under seven hours. The MTR food product company supplied a wide variety of packaged food items. It primarily concentrated on traditional recipes, high-quality oil, and a variety of other top components to maintain and ensure the scent, taste, and flavor of homemade food. The packaging met high hygiene standards, and the packs remained crisp and fresh. Breakfast, meals, and snacks,such as frozen foods,were amongthe goods itprepared. This business specialized in “product and quality certifications” from various food safety authorities. The company's product mix can produce enough moneyto keep the business afloat. The items were first sold through the company's own MTR tiffin centers, and thereafter through other retail outlets. Starting in Bengaluru, Karnataka, as its headquarters, the company's products were shipped to many countries throughout the world, including the United States, the United Kingdom, the Middle East, and many other Asian countries. They started a franchise called SuperShops. It offers a robustand comprehensivedistributionnetwork, which comprises distributor and retailer services. The products can be found in bargain stores, hypermarkets, and grocery stores, among other places. JP Morgan andMagnus Capital Corporationown up to 28 percent and 14 percentof MTR, respectively. MTR was one of the earliestIndian restaurants to open in the global markets.
  • 25. MTR's parent business, Orkla, also made a significant change. Their brand underwent a makeover, including a new logo and packaging, as well as a shift in advertisingtone. Orkla has agreed to pay Rs 2000 crore for a majority stake in Kerala's largest spice company, Eastern Condiments, with the goal of doubling its spice footprint in India. The sector is also now regularly generating more than 20% of the company's morningsales and has assisted them in gaininga 5% share of the breakfast market. In the breakfast arena, the North is also their largest market, indicatingthat it is not just the south region. Outside of south India, they account for more than 20-22 percent of total domestic sales. MTR also invested in Timios, a local entrepreneur brand in the nutrition market; this is their first investment in that category, and it continues to operate as a separate organization. MTR foods pvt ltd recently joined with online food and grocery delivery service “SWIGGY.” Customers will be able to purchase MTR products via this channel. MISSIONAND VISION MTR's mission is to become an important partner in every kitchen, assisting in the preparation of genuine and delectable Indian cuisine while also embracing cultural shifts throughout time. MTR invests in developing people's capability and competence to build an organization capable of delivering on the vision. To strengthen and promote chances for the company's future, the company has invested in many organizational development initiatives. The first step was to create the necessary organisational frameworks to carry out the approach. They also worked methodically to engage their employees and develop solid organizational values, as well as to set direction for the firm and integrate the personnel with the overarching
  • 26. mission. The process was dubbed "Building our Future." It has also organised a wide range of instructional programmes for managers and employees to raise awareness, boost functional knowledge, and grow professionally. Managerial developmentprogrammes,food safety,health and safety at work, interpersonal teamwork, and life skills were among the topics covered during the course. MTR established campus activities in 2010 to recruit exceptional students. SWOT ANALYSIS Strength  Understanding of industrial environment demand drivers that influence the food sector, such as consumer food habits and food consumption.  It serves onlyvegetarian food and places a premium on hygiene and food quality.  It introduced packaging method in which no preservatives were added to the food during packaging. It also ensures thatthe food in the packets stays crisp and fresh.  It ensures thatthe homemade aroma,taste,and flavorare retained.  Pocket friendly and affordable rates will help the companyin reachingfurther markets. Weakness  Non-vegetarians would be unable to select this option because it is 100% vegetarian.  Manyindividuals believe thatstore-boughtfood is inferiorto home- cooked cuisine.  It can be a significant challenge because it is supplying packaging technology without preservatives.
  • 27. Opportunities  The Indian food processing business represents for 32% of the country's overall food market, hence MTR has a sizable market.  There is a lot of promise and a bright future in the organized food business.  MTR's entry into the e-commerce platform benefits them because the online delivery market is developing at a rate of 150 percent year on year. Threats  Competition from othercompanies operatingin the same segments as MTR poses a threat to the company. As a result of this, MTR will have to increase its promotion and its costs, and it will no longer be able to provide the same prices as before.
  • 28. Nestlé INDUSTRY: FOOD AND BEVERAGES FOUNDER: Henri Nestlé FOUNDED: 1866 HEADQUARTERS: VEVEY, SWITZERLAND PROFILE “Nestlé” is a Swiss-German wordwhich means “Little Nest” which is its trademark. Itis the world’s largestand leading food, nutrition, health, and wellness company. According to the turnover, nestle stands in the 5th position among its competitors. Nestle has set its foot in 81 countries with 522 factories running all around the world. Nestle has spread widely with 280,0000peoplefrom almost 120 countries. HISTORY Nestlé was founded in 1866 in Vevey,Switzerland.Thelogo ofnestle was introduced by Henri Nestle which had a German meaning ‘Little Nest’ and included his family emblem. Henri Nestle at the initial days of his career itself identified the prominence of branding and collaboration. After all these years, his dream has grown into a well-established nutrition, health, and wellness company with an attractive mission statement of “Good food, Good life.” Their motto is to provide the customers with good quality food and beverages with a wide range of choices to suitanyoccasion.". Nestle has been flourishingits marketover 117 countries and depending upon the food habits of the regions, they have shaped their entire system.
  • 29. From 1912, nestle has a good connection with India as they started trading The Nestle Anglo Swiss Condensed Milk Company. After being independent,Indian governmentinsisted on local production with a new set of economicpolicies.Thereby Nestle formed its first companyin India by establishing a factory in 1961 at Moga, Punjab. MISSION Nestle’s mission is to deliversafe consumerfoods which are of very high qualityand with propernutrients.Nestle has a wide variety of selections for different individual tastes and preferences. Their motto is: "Good Food, Good Life." VISION Nestle’s aim is to achieve the different interests of consumers everyday by marketingand sellingvery high-qualityproducts.To be recognized as the leadingcompanyofthis sectorin a global perspective is theirultimate vision. STRATEGIC BUSINESS UNIT They have a total of seven different strategic business units. These individual units devise the strategies forbusiness developmentand high- level decision makings including market strategies. Apart from this, there is also a regional organization that divides the world into 5 geographic zones. They regulate the regional strategies which helps in the overall developmental processes. devising regional strategies and helping in the overall strategy development process. Nestle is also focusing on four main areas from 2017 which includes bottled water, coffee, infant nutrition, and pet care.
  • 30. SWOT ANALYSIS Strength  Nestle’s specialty is implementinguniquemarketingstrategies that can grab the attention of customers across the globe.  Theyalso conduct research periodicallyto analyze the market trend and use it effectively for financial,marketingand sales strategies.  Nestle’s effective strategy is “ThinkGlobally,Act Locally” which formulates products according to various diversities.  Moreover,they use the desirable languagesuitable foreach country.  Ultimately Nestle has the commendablebrand image to attract customers globally. Weakness  Companyhas faced criticism because of not balancingtheir nutritional value,international standards,and demand for standardization.  They also must be equipped with a strong strategic move for getting accepted to different cultural backgrounds.  Nestle has also faced backlashes overhigh usage of water, negative unionism,forced child laborand usage of other unethical processes and contaminated food recalls. Opportunities  To widen the cold diary product’s range, nestle has made a new addition of Nestle fruit yogurt. This market opens a wide variety of opportunities as they can investon it with the best qualitymilk.
  • 31.  Yet anotherperk is the coffee brand which attract the customers vibrantly.  Nestle has also made credit policies for the expansion of sales. Threats  One threat is the price swings due to devaluationof rupee which can affect the imported raw materials.  The unpredictabilityof economicscenario stands as a major concern as the investments in India are flowingfrom foreign countries.  The present economicinstabilityin the world, resulted in the withdrawal of foreign investments from the companywhich lead to a stagnantposition.  Different seasonality’s also affects the sales to a certain extent.
  • 32. KFC INTRODUCTION  KFC is an American fast-food +restaurantchain its headquarters is in Kentucky.  YUM brands are a parent companyof KFC.  It was founded by Harland Sanders. MISSION  To maximize profitability, improve shareholdervalue and deliver sustainable growth year after year. VISION  To be integrated food services group in ASEAN region and deliveringconsistentqualityproducts. SWOTANALYSIS Strengths  KFC has a strong international presence as it is having 18875 outlets around the world.  KFC has a fast growth rate as it has expanded its business in Asian countries.  KFC has a strong revenue of $16 billion. Weakness  KFC has faced lot of criticism on food.  KFC has a lot of issues on franchise operation. Opportunities  KFC has a huge opportunityon expandingits business.  KFC should have a vegetarian menu to gain more revenue.
  • 33. Threats  KFC has a lot of competitions like Dominos and McDonald’s.  Rising cost of resources such as raw material and labour