Analysis of fast food industry

1. Consumer Behavior FinalAssignment 1
Consumer Behavior
Final Assignment # 4
Fast Food Industry
Sundus Mumtaz
Sidra Tul Muntaha
Naveed Khan
Adeel Riaz
Waleed Khan
Talib Hussian
Date December08,2014.
Total words 2617

2. Consumer Behavior FinalAssignment 2
Acknowledgement
All Praise And Thanks To Allah Almighty, Without Whose Help This Report Could Not Have
Been Completed. We All Are Thankful To Our Parents Who Helped Us In Boosting Our Morale.
We Are Appreciative Of Our Kind Lecturer Sir Muhammad Waqas For His Assistance And
Guidance, Without His Wonderful Support The Report Could Not Have Been Accomplished.
Executive Summary
This Composition Enlightens The Decision Making Procedure And The Criteria That A
Customer Reflects On While Selection Of Fast Food. Further More, It Put in Plain Words the
Characteristics That Are Consider While Acquisition of Such Objects and Their Significance on
Customer’s Choice.
Purpose of this study
The Study Introduce the Subject Matter And Provide A General Idea of How Consumers Make
Decision while Purchase of Fast Food Restaurants. All The Material Included In This Document
Is Based On Data/Information Gathered From Various Sources And Is Based On Certain
Assumptions. Although Care And Diligence Has Been Taken To Compile This Document.

3. Consumer Behavior FinalAssignment 3
Fast Food Industry
Introduction
Definition :
The food that is prepared and consumed very quickly also termed as quick service food which
has its origin from United States. The food that has Quick preparation time because of its
ingredients they are pre cooked that provide ease of cooking in minimum time and is sold to the
consumers immediately that may be comply with Take with or take away services as well.
Recently there has been a great trend has been evident in the fast food industry that the
production is shifted to large scale production with standardize cooking methodologies and
production methods.

4. Consumer Behavior FinalAssignment 4
Fast Food Industry Analysis World Wide
In recent times it has been seen that this industry has gone magnificent revolution in
command and making available of Fast food therefore the industry leaders have now
shifted themselves towards modern technology systems, standardize production and
adopted latest cooking techniques. The world economy depicts a large figure of
opportunities and threats in this particular industry as well as a driving source of revenue
and growth. What so ever the crisis economies have gone through in these years, the last
5 year data depicts that this industry has only managed to grow. Even the threat of health
associated issues that might be high salt, high sugar or high calories food the demand of
this product in this industry haven’t lacked rather this industry has receive d a great
response in the last 5 years. Now the leaders of this industry understand the preferences
of their customers and know that this follow me home approach will take their revenues
to skies. According to IBIS World, forecasts that this industry will continue to move
further despite of any economic tensions. This industry has been and will be one of the
most highlighted industry that will continue to drive for higher and higher revenues as the
customer wont be reluctant on spending on small luxuries such as going out and
preferring fast food. Rising international expansion of US-based fast food chains will
continue to be the primary driver of industry growth as emerging economies increasingly
demands more fast food with greater options. Despite of consumer changes this industry
has seen going up and driving higher in growth and revenues. If we look over different
countries growth in this sector we can see that Japan fast foods increased by 4%,
similarly US has an 4% increase in their sales in year 2013 in this food industry.
Likewise Newlands, Spain, Chile, Australia, India and many other had increasing number
of multichannel chains of fast food industry.
Trends in Fast Food Industry Pakistan
Realizing the changing tastes and behaviors of customers many international and
multinational brands have shifted towards the Pakistan’s Industry offering a wide range
of food items. This has not only made consumption of fast food an increasing habit but
also appeals to the masses and helps diminish the cultural taste barriers. If we analyze the
Pakistan’s food industry trend, it is largely evident that the revenue and growth in this
industry has been rising regardless of the changing fondness in society that is the reason
many major multi nationals have moved towards Pakistan to grab the market share. The
franchises of KFC, Nandos, Hardees, Jonny Rocket, Burger King, Pizza Hut, McDonalds
all have tried their best to understand the consumer behavior so that they could attract
them and have their High involvement, we have seen in Pakistan it is quite evident that
fast food is a product of High involvement and by the moving time it is becoming the
product of High Involvement and customers now put efforts in drawing decisions as well
in elaborating what others are providing and what they are not.

5. Consumer Behavior FinalAssignment 5
Pakistan Fast Food Online Research
In terms of Age Group Percentages %
Fast Food Chains Teenagers & Below
(20 and Below)
Fast Food Chains Above Teenagers
(Above 20)
KFC 33 KFC 35
Mc Donalds 38 Mc Donalds 45
Subway 18 Subway 17
Hardees 18 Hardees 18
Jonny Rocket 13 Jonny Rocket 20
Burger King 28 Burger King 35
Analyzing the online research we draw the conclusion that people in Pakistan in both the age
groups prefer Mc Donalds over other brands. inclination towards Mc Donalds in all age groups
show that there may differentiation factors that would have affected the perception, attitude,
cognition and motivation of the consumers.
According to the ResearchofSoyeonKim
Department of Consumer Sciences
Ohio State University As the Consumers are fragmenting the Fast Food Restaurants must be
aware of Restaurants differentiating customer segment and appeal targeted customers by
focusing on their important restaurant attributes. This research explains the food selection
attributes and criteria that are significant, that are
“Advertisement” – “Décor” – “Fast Service” – “Options” – “Location” – “Price” – “Quality
of Food” – “Value Menu” – “Environment”
Evaluation Chart survey of Criteria for Selection
Out of 10.
Service
Speed
Familiarity Variety Quality Pric
e
Sensory
appeal
Customer
Service
Ads Distance Offers
7.5 7 9 10 9 10 6 6.72 4.1 3


6. Consumer Behavior FinalAssignment 6
Quality of Fast Food
Quality is one of the most important aspects in making product publicity. Majority of the surveys
depicted that quality is the most crucial aspect in selection of any item for consumption as in
particular in the concern of fast food as it’s associated with the health apprehension.
Price
Price is important selection criteria of individuals purchase regarding any product. Consumers
living on low budget may not turn towards the fast food. The changes in prices do effect the
demand of fast food items. Especially in the country like Pakistan the economic changes and the
fluctuation in prices affect the choice of consumers.
Speed Service
As the name suggest of Fast food industry, it’s the quick service world where the customer tend
to have a clear expectation that they will get the desired product in little time. “Speed of service
is in direct correlation to your overall retail sales,” says John Scardapane, founder and CEO of
Philadelphia Salad-works.
Advertisement
The promotion persuades the customers to be aware of the provider offering the items. There is
beneficial effect of the promotion. It is true that program of promotion and its affiliate techniques
can obtain the customers believe in and commitment and can appreciate the benefit of its
business. The moment of promotion is also important and the known organizations in the study
are already on Television and press reviews. Their ads through catalogues sent in everyday
magazines add to their promotion. The viewpoint of the 45% of the individuals is in line with the
industry pattern. Only 29% individuals feel that it allows sometimes.
Customer Service
One of the most concern is the customer dealing, all the long term relationship between the
customer and company are the result of good and fair dealings of the company people and
providing value to their customers.
Offers
One of that aspect that if included may become the differentiating factor and induce many of the
customers towards you, if no offers are provided, this may nor may not affect the customer.
Distance
If you are providing the unique product with the best quality people will not be concerning more
about distance but at a poit it really does matter, location is the most important aspect but if you
are good enough then your customer will do efforts to reach you.
Familiarity
Giving a sense of relationship with the customer that they find an association with you is also
one of the most important and if you are successful enough to built that association in the mind
of your customer, it will be difficult for them to shift.

7. Consumer Behavior FinalAssignment 7
Presentation of Food
The demonstration of the foods in any restaurants makes the service agency as unique selling
point (USP). Most of the people give their opinion as highly believe the fact with the preference
to the demonstration of the foods.
Taste
Yet again people are having fast food for its quick availability and its taste. The individuals
match the taste of food wit their taste when they first time have food, so many brands try to build
such an appealing taste that they cant resist it. As its said, . Flavor becomes addiction.
Sensory Appeal
Yet the most important factor but ignored by many. Many brands try to include all the sense and
involve the customers all senses in their products so that the image of product in customer mind
is strong enough to be remembered. In the industry like fast food, the leaders have full potential
to make involve all the senses of their customers so that they soon develop the feeling of
association.

8. Consumer Behavior FinalAssignment 8
DecisionMaking ProcessforFastFoodSelection
The consumers go through various situations while making a decision, these are also called the
heuristics or decision rules. The consumer usually while making decision undergoes the
evaluation of alternatives, but that also depends upon the level of decision making and the nature
of product. In the case of Pakistan the fast food is the product that lies between Medium to High
involvement product, therefore the people do draw inferences among brands while decision
making.
The results of survey showed that Majority of people considered the sum of attributes of a
Particular Brand to be high over other brands rather than accepting and rejecting brands on the
basis of 1 Attribute, that’s the Compensatory Decision Making Rule.
Decision Making Rule
FastFood Price
9
Quality
10
Sensory
Appeal
7
Familiarity
6
Service
Speed
6
Home
Delivery
3
Distance
4
Customer
Service
5
Parking
2
Offers
1
Subway 8 8 4 4 5 1 2 3 1 0
KFC 7 8 6 6 5 3 1 4 1 1
Mc
Donald
8 10 7 5 6 3 2 4 2 1
Jonny
Rocket
6 6 5 4 3 1 2 2 1 0
Burger
King
6 7 6 4 4 1 1 5 1 1
Hardees 7 8 6 3 3 0 1 5 2 1
It is evident from the survey that the customer on average was willing to purchase that Brand
whose perceived attributes in sum were Highest, i.e. MC DONALDS 48 /53

9. Consumer Behavior FinalAssignment 9
Advertisement & Marketing
Advertisement & promotions always have been one of the most critical and important part in the
success and failure of any businesses. Advertisement brings the awareness that what actually we
are selling and that’s actually you need at that moment. The content of any ad can actually
persuade customers with their commitments, long term relationship. The companies can go for
marketing through either printed or non printed medium. None printed includes broadcast media
and whereas the printed medium includes newspapers, catalogs, leaflets etc. A search conducted
on the influences on individuals through printed media explains that the printed media or the
leaflets that are sent through Magazine do affect the customer thinking and decision making
process.
MC Donald’s Marketing Efforts
After gathering the data and its analysis we conclude that MC Donald’s is actually full filling all
the requirement that leave a long lasting effect on the minds of customers. Their sensory appeal
was highly rated as compared to other brands. They have successful in bringing the change in
attitude of people and changing it to their will and making it positive for their brand. Moreover
they have been successful in developing right strategies.

10. Consumer Behavior FinalAssignment 10
AD # 1

11. Consumer Behavior FinalAssignment 11
Ad # 2
Descriptionof Advertisements
As the customer is exposed to many of the ads of fast food, he generally positions them in his
mind according to the way he perceives the. He evaluates each of them & compares them
through the advertisement they were exposed of. Initially people were only concern about the
price, quality & the taste but soon they are realizing the importance of fats and calories in these
fast food products. The customer usually gets expose of and gives his pre attention to these items
and the associations are built. They marketers use Peripheral Route of advertisement for such
products that don’t push customers to exert effort on drawing differences among brands, evaluate
them rank wise or compare their each and every attribute. And the customers gets satisfied as he
finalizes his decision and goes to buy from McDonald’s gets the same perfection of shape, size
and taste and also the service shown in the advertisement. They marketers position this product
in the 3rd level of Maslow explaining that if you have this you will have friends around you
praising your choice of food, your loved one as its shown in the above advertisement. The

12. Consumer Behavior FinalAssignment 12
combination of color shows that we are confident about our product that you will definitely love
it.
Color Scheme
In generally understanding the ads of MC Donald’s, they have been very confident in using the
bold color that’s yellow and red. Red and bright yellow depict the success of any product, these
color speak out for them.
Their Brand Name
The brand name of Mc Donald’s ads is also used as M. in bold yellow and bold red color. They
have somehow managed their position in the customer’s minds that whenever they see M. They
know this is MC Donald’s.
Their Figure & Ground
They background is usually in bold colors with lining that attracts the attention of customers
towards them immediately. The Figure is usually their products that are beautifully presented
that make them increase our temptation, a burger or their fries with their different meal offers.
The customer doesn’t have to think and put efforts in understanding the ads rather they just have
their attention and associations are build.
Their Fictional Character
They have been using fictional cartoon that have been successful in getting the attention of many
children and have been successful in making a solid image in the minds of customers. Just by
seeing that fictional character we can have the idea that it is MC Donalds. This represents their
strong positioning in our minds.
Slogan
“’m loving it” They have spoke that if you eat this you will definitely be in love with it and this
fast food eating will not be for one time rather it will turn out to be a strong addiction. You will
be unable to resist the tempting taste as it’s of best quality.
Conclusion
The consumers consider different attributes in decision making while purchase of fastfood.
Fastfood is a low to medium involvment product for people of Pakistan and that why they more
focus on attributes of price, quality and sensory appeal over others.
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13. Consumer Behavior FinalAssignment 13
References
http://www.ibisworld.com/industry/global/global-fast-food-restaurants.html
http://www.euromonitor.com/fast-food
http://www.globalresearch.ca/the-globalization-of-fast-food-behind-the-brand-mcdonald-s/25309
Auty, S. (1992). Consumer choice and segmentation in the restaurant industry. The Service
Industries Journal, 12(3), 324-339