QMR Assignment

Jubilant FoodWorks wants to sell more than donuts

Submitted By,

Nadia Mohammed Arif,

2012PGP214

ContentsIntroduction...........................................................................................................................................2

Research Problem..................................................................................................................................2

Research Objectives..............................................................................................................................2

Qualitative Techniques for Data Collection...........................................................................................2

Rationale for Choice of Techniques.......................................................................................................2

Detailed Respondent Profile..................................................................................................................3

Detailed Interview Guide.......................................................................................................................4

Plan for Data Analysis............................................................................................................................4

Secondary Research..............................................................................................................................5

Major Competitors................................................................................................................................6

Expected Output from the Study...........................................................................................................6

Conclusion.............................................................................................................................................6

IntroductionJubilant Foodworks Ltd wants to establish a strong presence for their brand Dunkin Donuts in India by opening more outlets and offering a more diversified menu suited to the Indian palette. The company wants to sell more than just donuts. They are considering selling coffee, sandwiches, milkshakes etc. The company has already invested about Rs 9 crore to establish the state-of-the-art factory and back-end processes and are experimenting with different formats to chalk out the future expansion strategy. After Delhi, the company is planning to expand its chains in Mumbai and expects to open 80-100 more stores in the next 5 years. JFL will be facing stiff competition from a host of international chains like Starbucks getting into joint ventures with their Indian counterparts.

Research ProblemHow to keep alive the Dunkin’ Donut Brand considering the varied Indian tastes and establish a strong foothold presence in India?

Research Objectives1. Identifying preference for sugary snacks and patterns of consumption among Indian

Consumers2. Devising a future expansion strategy for Dunkin’ Donuts both in terms of product

variety and number of stores

Qualitative Techniques for Data CollectionPrimary Data Collection

1. Observational Research2. In – Depth Interviews

Secondary Data Collection

Secondary Data has to be gathered regarding the following:

Existing Dunkin Donut Store locations in India Current items on the menu and their price ranges Preferable locations for new store establishment Competitor presence in major cities in India Income streams Spending patterns Existing preferences for established brands

Rationale for Choice of Techniques

Observational Research is very useful as it helps in capturing the respondents’ behaviour in real life situations. Given the problem at hand, observing the purchasing behaviours of customers at different times of the day can throw light into their preferred snacking patterns this can also be known from the sales records available with the outlet. Why observe it?. This will help us in finding a correlation between the kind of snacks and beverages which are consumed together. Observational Research is generally strong on validation and in-depth understanding of situations.

Qualitative interviews are unstructured and focus more on the interviewee’s perspective. They are flexible and can bring out rich insights into the respondent’s brand preference, snacking choices etc. The non-traditional line of questioning enables honest data collection. It permits the interviewer to gather not only factual data, but emotional data as well. The interviewee can respond freely and the interviewer need not stick to a fixed set of questions. Interviews also help in overcoming bias which can creep up in other techniques such as Focus Group Discussions. With all such chains providing similar experience, what makes a chain unique needs to be found out.

FGD would be better way to start the work after having insights from secondary data. Then if needed you can venture into interviews of selected respondents who are considered as opinion leaders.

Detailed Respondent ProfileThe respondents would be divided into 4 main categories:

Age : 15 – 20 yrsOccupation: Student

Age : 21 – 30 yrsOccupation: Post graduate students/Young working professionals

Age : 31 – 40 yrsOccupation: Working professionals

The respondent profile was decided based on the above split of fast food consumption in India age wise. Indians above the age of 40 generally cut short on calories and fast food. Hence, they will not be included in our sample for the purpose of research.

Detailed Interview Guide1. Introducing Questions

o What is your opinion about the Dunkin’ Donut Brand?o How often do you visit a Dunkin’ Donut outlet?

2. Follow – Up Questions o What are your favourite snacking items?o What is your favourite item in the current Dunkin Donut menu?o Do you have any special preference for beverages?o What is it that you like about Dunkin’ Donuts?

3. Probing Questions o Would you like to see any other snacks on the Dunkin’ Donut menu?o What type of hot/cold beverages would you like to have along with your

snacks?o Would you recommend Dunkin Donut as a preferred hangout place to a

friend? Why?o Are you comfortable with the current pricing of items in the menu? Which

items do you think are overpriced?

o Do you have any suggestions to improve the ambience of Dunkin Donut outlets?

o Most of these questions are survey questions where you get one word or line answers. You need to know more details about preferences of customers, how they are shaped and is there anything unique that they see in Dunkin which can be enhanced? Will they be comfortable with additional items in the menu? Or do they have preferences for each of the item / timing of day. If so are they willing to shift provided such service is offered in Dunkin outlets?

Plan for Data Analysis Read the interview response notes and look for common consumption patterns/trends

among the participants. Common trends can also be obtained through the information gathered by

observational research Draw out meaningful groupings from the gathered data like similarity in preference

with respect to age groups, gender or occupation Tabulate the findings to draw meaningful conclusions

15-20 yrs 21-30 yrs 31-40 yrs% having visited Dunkin Donuts outletsReasons for preferring Dunkin’ DonutsSnack Items Preferred

Preference for beverages

Average frequency of visit

Preference for sugary snacks/ice-cream etc

Data emerging from the studies and fitted into the above tabular format can be used to make judgements regarding the additional products which can be included in the menu. This can help diversify the menu to suit Indian snacking preferences and help increase the footfalls and profitability.

The data obtained through secondary research will provide a detailed understanding of the competitive scenario and thereby we can identify the favourable locations for new store establishment.

Secondary ResearchExisting Dunkin Donut Outlets in India

Location No: of Outlets

New Delhi 11Gurgaon 5Noida 1

Dunkin Donuts outlets in India are currently present only in Delhi, Gurgaon and Noida. The next major expansion plan is in Mumbai. JFL can also consider opening stores in major cities like:

Bangalore Chennai Hyderabad Calcutta Cochin Ahmedabad Pune Lucknow Allahabad Bhopal

Current Menu Offerings

Item Price RangeDonuts 52 - 500Dunkin’ Burgers 65-175Sandwiches 60-110Salads 120Dunkin’ Bites 59Hot Beverages 50 - 130Cold Beverages 60 - 135

Major CompetitorsCompetitor Food SegmentStarbucks CoffeeMc Donalds BurgerBaskin Robbins Ice - Cream

Expected Output from the Study Emergence of common snacking patterns within a particular age group Analysing the preference of Dunkin’ Donuts in comparison to other sugary snacks Tracking down the kind of beverages preferred by the respondents along with their

snacks

Designing a diversified product menu by analysing consumption patterns among different age groups

Introducing more items suited to the Indian Palette Secondary research can provide insights into the ideal cities for new store locations

ConclusionThis research study will help us in identifying the common Indian preferences for snacks, beverages etc. This aids in identifying gaps in the current product offerings and helps in coming up with a new and diversified product menu suited more to the Indian tastes. This will help in strengthening the brand image of Dunkin Donuts through their specialised offerings. The secondary research will reveal the most suitable cities where new stores can be located.