Research Paper on Fast Food Essay

1. 1 INTRODUCTION Fast food is generally food or a meal which is pre-prepared, or which can be quickly cooked when you order it. You can buy fast food almost anywhere. Although fast food trend is quite new in Pakistan yet it is growing very fast, this indicate that such type of fast food restaurant have a very bright future in Pakistan . The two major fast food restaurants that have their outlets in the whole world, are giving tough competition to each other in Pakistan. Our research is based on the hypothesis that why people in Pakistan prefer KFC over Macdonald and we found that due to good quality and taste of food people prefer KFC . When KFC was introduced in Pakistan the prices was not affordable by people but now they have lower their prices. One reason was also the impressive packages due to which people prefer KFC over McDonald’s. While conducting our research we also came to know that KFC is more advertised this is one of the reasons that people prefer KFC over McDonald’s. We are going to discuss all of this in our research. 1. 2 HYPOTHESIS KFC is a spot light and McDonald’s is a side show. 1. 3 AIMS AND OBJECTIVES The trend of fast food is increasing day by day in Pakistan, this research is designed to generate knowledge about fast food restaurant in Pakistan, and hence this research is based upon two leading fast food brands in Pakistan. The main objective is to know that which brand is popular among majority. Which among the two brands is of higher quality. Which brand is more economical . Hence in general we conducted this research because we wanted to know that which brand is preferred and what is the reason behind it. 1. 4 SAMPLING In sampling plan we draw sample, sample is basically a segment of the population selected for research to represent the population as a whole. In our research we targeted people from 18 to 30 . So we approached people who visit KFC and McDonald’s . Our sample size is 40 from the whole population . Our research instrument for collecting primary data is Questionnaire in which we ask twenty questions, all are close ended for accessing people’s preference. 1. 5 METHODOLOGY The empirical analysis of the â€Å"International fast food chains in Pakistan† was based on the primary data collected through personal observations by visiting KFC and McDonald’s located in the twin cities of Rawalpindi and Islamabad. The data were collected by filling questionnaire during rush hours in the afternoon between 12:00 noon to 2:00 p. m. In all, 40 customers were accounted for during the survey time period in KFC and McDonald’s. The data were collected during the first week of January 2010. 1. 6 LITERATURE REVIEW First we will take into account the history of KFC. The company was founded as Kentucky Fried Chicken by Colonel Harland Sanders in 1952, though the idea of KFC’s fried chicken actually goes back to 1930. The company adopted the abbreviated form of its name in 1991. Perfecting its secret recipe of 11 herbs and spices in 1939, KFC has come a long way. With over 10,000 outlets in the world, KFC has maintained its title, for the last 60 years, of being the chicken Experts. Now we will discuss the history of McDonald . At one time it was the largest global restaurant chain, but it has since been surpassed by multi-brand operator, in the competitor KFC is on top of the list. The business began in 1940, with a restaurant opened by brothers Dick and Mac McDonald in San Bernardino, California. The present corporation dates its founding to the opening of a franchised restaurant by Ray Kroc, in Des Plaines, Illinois, on April 15, 1955. Now McDonald’s is present in 120 countries with about 32000 outlets. Market entry in Pakistan was not a big problem for KFC as it is a well-known international brand. In that stage they did promoted through their own brand. Their promotion statement was â€Å"KFC in Pakistan†. Opening the first KFC outlet in Gulshan-e- Iqbal in 1997. KFC wore the title of being the market leader in its industry. Serving delicious and hygienic food in a relaxing environment made KFC everyone’s favorite. Since then, KFC has been constantly introducing new products and opening new restaurants for its customers. Presently KFC is branched out in nine major cities of Pakistan (Karachi, Lahore, Gujranwala, Sukkur & Muree) with more than 45 outlets nation-wide. Apart from fulfilling our commitment of serving delicious, fresh and hygienic food and at the same time providing our customer with the ultimate entertainment; KFC also plays in the economics development of our country. Presently KFC has provided to over 1200 Pakistanis, which adds up to 6000 individuals directly dependent in KFC Pakistan. In introduction stage KFC entered the market using market-skimming strategy. Their products were high price and targeted only upper class. Later they introduced packages which were affordable by many people. McDonald’s Pakistan opened its doors in September 1998 at Lahore and presently operating in seven major cities with a network of 20 restaurants. With a strong belief in the Ray Krock phrase when you are green you are growing, McDonald’s Pakistan has an aggressive plan to expand in all other cities of Pakistan and is rapidly growing with the focus to provide friendly and quick service restaurant experience to their customers. Today millions of Pakistanis place their trust in McDonald’s everyday to provide them with food of a very high standard as well as good service. In the past five years, the response to McDonald’s coming to Pakistan has been overwhelming. McDonald’s located in Pakistan are currently employing about 1,000 Pakistanis and each store is managed by Pakistani managers. They have also contributed in other ways than food service. McDonalds has investment of over Rs 300 crore in the country and payment of taxes and duties amounting to more than Rs 100 crore. Since McDonald’s is doing so well in Pakistan they will continue to grow and add more stores in more cities in the future. But in Pakistan McDonald’s is facing a tough competition by KFC. KFC and McDonald’s serve to dominate the fast food business in Pakistan. Both fast food chains serve all their customers effectively, given the different categories and factors that determine the success of restaurants and fast food chains in Pakistan. However, based on the findings of the previous research, it can be perceived that KFC is running a more successful business in Pakistan, compared to the business run by McDonald’s. This was given proof in the article, based on the many and varied responses of customers to surveys, which involve their evaluation of both fast food restaurants, based on a number of factors, namely, food, service, environment, price, convenience, brand, and promotion. In terms of food, although both fast food restaurants almost have the same varieties, certain differences can still be recognized. Both KFC and McDonald’s offer chicken and hamburger meals including snacks, desserts, and drinks. However, only KFC offers a wide range of healthy side dishes, such as mashed potato, carrot muffin, and lotus fresh vegetable side dishes. In this sense, KFC aims to uphold healthy eating and nutrition of their customers. In addition, it has been emphasized in the case study that KFC appeared to have the upper hand over McDonald’s in terms of introducing new products in the market. Most of the new products of KFC, such as its lunch items, suit the tastes of the Pakistani. KFC has also been introducing new products in the market in a regular rate. In terms of environment and service, although both fast food restaurants appeal to their market due to their convenient lighting, cleanliness, music, and decorations, still, KFC serves to have the upper hand over McDonald’s. Based on the survey, more customers are â€Å"Very Satisfied† with the services and environment of KFC over McDonald’s. This is because the waiting time in McDonald’s is too long, compared to KFC. In addition, it can also be perceived that KFC has more advantage than McDonald’s, as the employees in KFC have less time to interact with customers than its counterpart, as the volume of its business is larger. The prices of food offered by both restaurants equally serve each other. However, the food offered by KFC is slightly higher, being able to offer some meals that are not offered by McDonald’s, such as the Family Bucket, Garden Chicken Burger Meal, and Hot & Spicy Wing Meal. Nevertheless, the volume of customers in all given times of day, in both weekdays and weekends is still higher in KFC than in McDonald’s. Given such figures, it can be perceived that more customers prefer KFC to McDonald’s, thus, indicative of the fact that KFC runs a more successful business than its counterpart does. Moreover, the findings of the study indicate â€Å"More low income and high income customers prefer KFC to McDonald’s, while average income customers prefer McDonald’s more than KFC† In this sense, it can be observed that KFC has a wider range of customers compared to McDonald’s, thus, indicating that more customers patronizes KFC. Furthermore, for the finale, the proof that KFC is running a more successful business than McDonald’s is indicated that not just in Pakistan KFC has an upper hand but in all over the world. 1. 7 DELIMITATIONS. The problem which we faced while conducting our research are firstly the people were not very co operative in order to fill our questionnaire and we have to convince them. Another problem was that people were hesitating to fill our questionnaire. 1. 8 DATA COLLECTION Q1) What is your age group? As we have taken our sample between 18-32. So the people who have filled the form have age between 18 to 32. Q2) What is the reason of eating fast food? Q3) How often do you use fast-food services? Q4) What’s your favorite fast food place? Q5) Rate the fast food you have visited the most? (3 being high and 1 being low). Q6) Which one is your favorite meal? Q7) What fast food restaurants do you think is most advertised? Q8) Which fast food chain is in your opinion is more healthy? Q 9) How favorable is your attitude towards the fast food brands you have eaten? (3 being high and 1 being low) Q10) How well the following brands satisfy your needs? (3 being high and 1 being low) Q11) Which brand packaging has an attractive look? (3 being high and 1 being low) Q12) Which fast food restaurant has an eye-catching outlook? Q13) Which brand do you think bring pleasant memory? (3 being high and being low) Q14) Which brand do you think earns pleasant money? Q15) On Average how much would you expect to pay for a fast food meal? Q16) Apart from food which place is more enjoyable? Q17) Which fast food restaurant is more accessible? Q18) Which brand offer deals which have attractive prices? Q19) If you owned your own fast food restaurant, then which fast food restaurant attribute you want to follow-up? 20) Do you think the future of international fast-food chains in Pakistan is bright? 1. 9 DATA ANALYSIS Q1) What is your age group? As we have taken our sample between 18-32. So the people who have filled the form have age between 18 to 32. Q2) what is the reason of eating fast food? The main reason that people eat at fast food restaurants is because they like the taste. Customer wouldn’t keep coming back to a restaurant if the taste of food does not satisfy their tongue. As pie graph shows that 82% prefer taste, 13% prefer convenience and 5% price, hence price and convenience element occupies a very small part of it, only the good taste allows and agree people to spend their money on food. Q3) How often do you use fast-food services? 54% visit once a month 12% visit once a year and once a week. 17% twice a week and 5% visit other time. It looks like most of the people go out and eat fast food once a month. In a close second place people visit fast food restaurants twice a week. So pie graph result shows that people like to eat fast food, but just at different interval of time. Q4) What’s your favorite fast food place? There are tons of different fast food restaurants around the world, but we narrowed down the choices to McDonald’s and KFC. According to the people’s choice 80% people like KFC while only 20% McDonald’s. KFC dominates over McDonald’s, other questions also represent that people are more likely towards KFC services. Q5) Rate the fast food you have visited the most? (3 being high and 1 being low) 62%of the people prefer to visit KFC while only 15% prefer McDonald’s. KFC are the first movers of fast food restaurant in Pakistan hence they have first mover advantage. They were the pioneer of fast food in Pakistan. The position of KFC in the mind of people is very strong. Q6) Which one is your favorite meal? We gave various choices of food offered by both restaurants. We restrict people only to choose one food item which is one of their most favorite According to the result 52% people like KFC chicken and 43%burger and 5% salad. While McDonald’s salads were liked by 45%, 30% burger and 25% chicken pieces. Q7) What fast food restaurants do you think is most advertised? The survey shows a slight difference between the advertisements of both restaurants. As they are leading fast food restaurants in Pakistan so they advertised almost equally to make their roots strong in promoting their service. According to the data 57% people think KFC is more advertised and 43% found McDonald’s is more advertised. Q8) Which fast food chain is in your opinion is more healthy? 67% people think that KFC is healthier. People have positive approach towards KFC because KFC food has less chronic health risks because its meal involves appropriate amount of nutrients. Q9) How favorable is your attitude towards the fast food brands you have eaten? (3 being high and 1 being low) 55% people rated KFC at 3 place, 37% people at second and 8% people at first place. But MacDonald’s result differ 13% people rated KFC at 3 place, 37% people at second and 50% people at first place. As results undoubtedly shows the people have favorable attitude towards KFC. Q10) How well the following brands satisfy your needs? (3 being high and 1 being low) 50% people are fully satisfied with KFC, 40% people satisfied and 10% people are just satisfied. But MacDonald’s result differ 15% people are fully satisfied, 35% people are satisfied and 50% people are just satisfied. Q11) Which brand packaging has an attractive look? (3 being high and 1 being low) In brand packaging McDonald’s took prize over KFC. The surveys result shows that 62%people like McDonald’s packaging style while only 27% people like KFC packaging style. Q12) Which fast food restaurant has an eye-catching outlook? Although in other aspects KFC has surpass McDonald’s but when it comes to the outlook of the restaurant 63% people like the outlook of McDonald’s and only 37% people rated KFC. Q13) Which brand do you think bring pleasant memory? (3 being high and being low) Pleasant memory associated with good environment of the place and taste of the food. After analysis it was found that 60% people’s pleasant memory is associated with KFC. 32% people have KFC. 8% do not have as much pleasant memories as others. Q14) Which brand do you think earns pleasant money? 55% people views show that KFC earns pleasant money. And in a close second place 45%rated McDonald’s. Q15) On Average how much would you expect to pay for a fast food meal? 55% people expect to pay an amount of at least Rs. 500 on fast food meal. 30% agreed on paying Rs. 1000 while only 15% want to spend Rs. 1500. Q16) Apart from food which place is more enjoyable? The popularity of any restaurant is just not dependent upon the taste and price of food but it also depend upon the enjoyable environment which include play area for kids, happy meal and gifts. 52% people consider McDonald’s is more enjoyable but 48% people like the environment of KFC. Q17) Which fast food restaurant is more accessible? The result of this question shows an even split among both options. The increasing trend of fast food leads both restaurant branches to multiply in order to make them easy to get to. 53% people think KFC is more accessible while 47% think that McDonald’s is more accessible. Q18) Which brand offer deals which have attractive prices? The higher percentage of people found the prices of KFC more attractive than McDonald’s. According to the data 55% people found prices of KFC affordable and attractive. While that of 45% found McDonald’s prices smart. Q19) If you owned your own fast food restaurant, then which fast food restaurant Attribute you want to follow-up? The majority results show that KFC has won the race in our fast food survey. It is found that KFC fulfill the needs of its customers to some extent, so considering KFC as their ideal people would like to follow the success tracks of KFC in order to have bright future of their restaurant ahead. 75% people like to follow the attributes of KFC for their own restaurant and only 25% consider McDonald’s as their ideal. Q20) Do you think the future of International fast food chains in Pakistan is bright? Based on people answers, 85%agreed with the statement that the future of international fast-food chains in Pakistan is bright, 5% were not agreed on bright future and 10% people have no idea about this. With today’s hectic lifestyles, time-saving products are increasingly in demand; one of the most obvious examples is fast food. People want quick and convenient meals as a result, consumers rely on fast food . Knowing this, fast food providers are coming up with new ways to market their products that save time for consumers. All that make sense though because that is what â€Å"fast food† is supposed to mean†¦cheap, fast, and tasty. 1. 10 CONCLUSION The conclusion we have drawn after conducting our research is that the problem statement which we consider in our research is confirmed . Our hypothesis that KFC is in spotlight and McDonald’s is a side show was right and people prefer KFC over McDonald’s because of their good quality food and their reasonable price, hence KFC capture a large market than McDonald’s in Pakistan. 1. 11 RECOMMENDATION AND SUGGESTION After conducting our research we come to a point that about 80% people prefer KFC over McDonald’s here are some suggestions and recommendations to both the brands. Based on our research we suggest that McDonald’s should improve the quality of their food because majority of people found McDonald’s a less healthy option. It was also found that Macdonald’s satisfies the need of people to lesser extent, so McDonald’s should try hard to make up to the expectations of people. It was found by our research that although people prefer KFC over McDonald’s but they found the packing of McDonald’s more attractive than that of KFC, so KFC should work on their packing and make it more attractive. When it comes to outlook of the restaurant, majority of people like the outlook of KFC, so McDonald’s should improve their outlook. It was also found that KFC is better advertised; hence McDonald’s should work to promote their brand in order to capture a large volume of customer. Pakistan is a price sensitive market for many items and competition is intense, so McDonald’s should maintain their price packages. REFERENCES ? 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