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Fast food is generally food or a meal which is 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 Mumbai yet it is growing very fast, this indicate that
such type of fast food restaurant have a very bright future in Mumbai because
people have busy schedule and need fast services. The two major fast food
restaurants that have their outlets in the whole world, are giving tough
competition to each other in Mumbai. Our research is based on the hypothesis
that whether people in Mumbai prefer McDonald or KFC and we found that due
to reasonable price and taste of food people prefer McDonald. When KFC was
introduced in Mumbai the price was not affordable by people but now they have
lower their prices. It was also found that due to impressive packages people
prefer KFC over McDonald͛s. While conducting our research we also came to
know that McDonald is more advertised this is one of the reasons that people
prefer McDonald over KFC. We are going to discuss all of this in our research.



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The trend of fast food is growing day by day in Mumbai. This research is designed
to generate knowledge about fast food restaurants in Mumbai and hence this
research is based upon two leading fast food brands in Mumbai. The main
objective is to know which brand is popular in 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.




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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 different age groups like 10-20,20-30,30-40,40-50 and 50&
above. So we approached people who visit KFC and McDonald͛s .Our sample size
is 47 from the whole population .Our research instrument for collecting primary
data is å

in which we ask fifteen questions, includes a mixture of
both open ended and close ended questions for accessing people͛s preference.

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The empirical analysis of the ͞International fast food chains in Mumbai͟ was
based on the primary data collected through personal observations by visiting KFC
and McDonald͛s located in Chembur KStar (Near Diamond Garden).The data were
collected by filling questionnaire during rush hours in the afternoon. In all, 47
customers were accounted for during the survey time period in KFC and
McDonald͛s.

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 |
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.

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KFC entered India in 1995. KFC is the largest brand of Yum Restaurants, a
company that owns other leading brands like Pizza Hut, Taco Bell, A&W and Long
John Silver. But a controversy surrounding the levels of MSG in its preparations
and subsequent protests from farmers͛ groups and animal rights activists spelt
trouble for the company. Ultimately, the company had to shut all but one outlet
in the country. Only recently in 2003 it made a quiet re-entry into the Indian
market. Then came up with the strategies and menu that is desirable by the
Indian consumers. And since 2003 it is expanding successfully its business in
India.


 
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McDonald͛s have been very successful in India. Though KFC and McDonald͛s
entered Indian market in gap of one year (KFC was first to enter in India), but
today McDonald͛s have around 170 outlets and KFC about 72 in 13 cities.

The controversy surrounding the KFC have not let them march forward and they
have been struggling with there expansion plans. Only recently they have
included vegetarian food in there menu which McDonald͛s managed to do with
there launch in India. The delay in adapting to Indian customs has cost KFC a great
deal.

But with the change in marketing strategy and there communication revolving
around the Veg menu, will KFC manage to march past McDonald͛s?

It we look the recent developments and communication, I feel yes they can. KFC
has the potential and that freshness in them while McDonald͛s looks very old and
tired.

The recent advertisements and communication from McDonald͛s are not funny at
all and only manage to convey the sorry state of creative and marketing team.
The services of McDonald͛s have degraded to greater extent. The people behind
counters look like bunch of losers made to stand forcibly, where as KFC has that
freshness and employee are more cheerful and vibrant. The McDonald͛s have
become very crowded over the years and they have sitting arrangement which
are very cramped and you feel suffocated inside the restaurants. And if you are
sitting for too long, then the floor keeper gives you a very disgusting look.
Whereas at KFC, they have more space and you feel more relaxed and not in
hurry to vacate the seat.

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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.

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21% of people think KFC is reasonable in terms of cost and 70% of people think
McDonalds.
 35
1
2
30
3

25

50&above
20 15
40-50
30-40
15
20-30
10-20
10

8 12
5
1
1
2 2
0
KFC McDONALDS OTHERS

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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 people͛s
choice 29% people like KFC,While only 53% McDonald͛s. McDonald͛s dominates
over KFC.
 30

1
25 2
1

20
50&above
13 40-50
15
2 30-40
20-30
10
7 10-20
1
2
5 10
5 4
0 1
KFC McDONALDS OTHERS

å


  


 (3 being high and 1 being low)

2%of the people prefer to visit KFC while only 15% prefer McDonald͛s. KFC are the
first movers of fast food restaurant in Mumbai hence they have first mover
advantage. They were the pioneer of fast food in Mumbai. The position of KFC in
the mind of people is very strong.

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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
McDonald͛s salads were liked by 45%, 30% burger and 25% chicken pieces.

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The survey shows a difference between the advertisements of both restaurants.

As they are leading fast food restaurants in Mumbai so they advertised almost
equally to make their roots strong in promoting their service. According to the
data 19% people think KFC is more advertised and 78% found McDonald͛s is more
advertised.

35

30

25
3

20 50&above
40-50
30-40
15
20-30
18
10-20

10
0

5
5

4 5
0
1
0 0
KFC McDonalds Others

å
    

 

30% people think that KFC is healthier and 52% people think McDonalds. People
have positive approach towards McDonalds because McDonalds food has less
chronic health risks because its meal involves appropriate amount of nutrients.
 30

25
1
1
1
20
50
40-50
15 12
0 30-40

10 20-30
9
1 10-20
2
5 9 2
5 3
0 1
kfc mcdonals others

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5% people rated KFC at 3 place, 37% people at second and 8% people at first
place. But MacDonald͛s result differ13% 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.

å


 

 (3 being high and 1 being
low)
50% people are fully satisfied with KFC, 40% people satisfied and 10% people are
just satisfied. But MacDonald͛s result differ 15% people are fully satisfied, 35%
people are satisfied and 50%people are just satisfied.

å !
   


In brand packaging McDonalds took prize over KFC. The survey results show that
many people like McDonalds packaging style over KFC.
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McDonalds surpass KFC and the outlook of the restaurant 51% of people like the
outlook of McDonalds and only 49% people rated KFC.

30

25
0
1 2
1 2
20 1

50&above
40-50
15 11
13 30-40
20-30
10 10-20

5 9
7

0
KFC McDONALDS OTHER

å #
  
 




The result of this question shows an 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. 15% people think KFC is more accessible while 85% think that
McDonald͛s is more accessible.
 45

40 1
3
35 3

30
50&above
25
40-50
20
20 30-40
20-30
15 10-20

10
0 13
5 4
3
0
KFC McDONALDS OTHER

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The higher percentage of people found the prices of McDonald͛s more attractive
than KFC. According to the data 27% people found prices of KFC are attractive.
While that of 73% found McDonald͛s prices smart.
 40

35
1
3
30
3

25
50&above
40-50
20
16 30-40

15 20-30
10-20
2
10
2.4

5 11
8

0
KFC McDONALDS

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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
McDonald͛s is in spotlight and KFC is a side show was right and people prefer
McDonald͛s over KFC because of their good quality food and their reasonable
price, hence McDonald͛s capture a large market than KFC in Mumbai.

6%

32%
KFC
McDONALDS
OTHERS

62%

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After conducting our research we come to a point that about 62% people prefer
McDonald͛s over KFC here are some suggestions and recommendations to both
the brands. Based on our research we suggest that KFC should improve the cost of
their food because majority of people found KFC expensive. It was also found that
McDonald͛s satisfies the need of people to greater extent, so KFC should try hard
to make up to the expectations of people. It was found by our research that
although people prefer McDonald over KFC but they found the packing of KFC
more attractive than that of McDonald, so McDonald 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 McDonald, so KFC should improve their
outlook. It was also found that McDonald is better advertised; hence KFC should
work to promote their brand in order to capture a large volume of customer.
Mumbai is a price sensitive market for many items and competition is intense, so
KFC should maintain their price packages.