Marketing Assignment WOWMomos [PDF]

Zitiervorschau

Marketing Management Case study Project Team members 1. 2. 3. 4. 5.

Mitali Boro, PGP23/29 Nikhil S, PGP23/033 Nilay Jaiswal, PGP23/034 Parthay Shah, PGP23/36 Prashant Yadav, PGP23/37

1. Segmentation: Customer segmentation

Demographic

Psychographic

a) Customers who eat at premium outlets b) Customers who eat at sub premium outlets c) Customers who eat at economy oulets

a) Students b) working professionals (especially IT)

a) Customers who are always looking to try new exotic cuisines b) Customers who try new exotic cuisines once they become popular/ suggestion from friends C) Customers who only eat local cuisines

c) Others

Targeting: The target segments are highlighted in black. Combining all , we will get a person who is a student or a working professional (13-35 years) who eats at sub premium outlets and is always looking to try new exotic cuisines as our primary target segment.

Segment Customers who prefer affordable and quality food (sub premium) Students Working professionals (especially IT) Customers who readily try new cuisines (innovators)

Basis of Segmentation Demographic (economic)

Wants/needs Authentic, hygienic, healthy as well as affordable food

Demographic (age/occupation) Demographic (age/occupation)

Fun and economical No time to cook food at home, appetizing and quickly available Exotic, new flavors, unique experience

Psychographic

Positioning: Target Problem

Sub premium Healthy, hygienic and affordable Low fat content, hygienically prepared momos at affordable rates

Students Fun time at a low cost

Professionals No time to cook, eat

Innovators Lack of new choices

Cheaper momos available through Momos on wheels, kiosks

Vartiety of momos, company keeps on adding new items and removing old items from the menu

Competition Momos-dumpling and non momos- like Box8 Positioning The largest chain of statement branded Momos that makes healthy and hygienic Momos for the conscious customer mostly in India who wants both affordability and quality in an era of decreasing food quality

KFC, McD (low prices) & road side eateries including momos The largest chain of branded Momos that provides a fun eating experience for the students mostly in India who wants excitement in an era of increasing boredom

Available at breakfast, lunch and dinner (all time), prepared before, only require heating/frying Subway & other ready to eat (less preparation time) The largest chain of branded Momos that makes quick and filling Momos for the professionals mostly in India who wants to satisfy their hunger quickly when you have no time to eat

POD

New exotic foods like Dimsums (see reference doc) The largest chain of branded Momos that makes varied and exotic Momos for the novelty seeking customer mostly in India who are always looking for variety in an era of decreasing new food choices

Our marketing strategy is based on 4Cs instead of 4Ps i)

ii)

iii)

iv)

Customer – we have different offerings for our customer segments as discussed above. Unlike Pizzas and Burger chains, wow Momos are healthy (low fat content), hygienic, more variety and affordable as well. A large number of individuals in India are vegetarians, hence more vegetarian options in momos would also expand the customer base. They should include a meal option with drinks. Cost- Currently WOW Momos follow a cost plus pricing strategy ( around 30% commensurate of the total cost ). They should shift to a value-based pricing because different geographies or customers visiting different store formats may have different willingness to pay which can be found out via market research. Offering special discounts to students (price discrimination) is also a good idea as they can bring in more customers as well (their families too). Offering special packages for business functions can also help in getting more customers from the professional segment. Communication: Current used communication channels are informal like word of mouth and guerilla marketing. They should invest in formal channels of communication like online advertising (which is cheaper than Newspapers and TV ads). Different communication channels should be used for different segments. Convenience: Different store format should be used for targeting different segments. For example, kiosks near corporate parks like infopark would be ideal for working professionals as they can run down and get a quick bite. Momos on wheels would be preferable for students because of cheaper cost. So promotions at different store

formats should be targeted towards the ideal segment. They should also expand its distribution channels via online food platforms like swiggy and Zomato.

2.

We would compare McD and Wow Momos on the basis of 7 parameters i)

ii)

iii) iv) v) vi)

vii)

Health: nutritious content of momos is better than that of burgers (low fat content). The processing that happens in the preparation of momos is lesser than that of burgers. Eating processed meat have been shown to have strong linkages with stomach cancer. Hence momos are much better in terms of health quotient Hygiene: The hygiene at wow momos and McD is comparable. McD being a global brand has borrowed hygienic practices from abroad and if not the same should be higher than that of wow momos Filling: A McD aloo tikki burger has calories of 300-400 same as that of a plate of momos, hence both are filling. Taste: WoW momos tend to use more spices which is favorable to the Indian palate Affordability: Burgers from MCD is in the range of Rs. 60-200 similar to that of a plate of wow momos, hence affordability wise both area comparable Exciting (variety, exotic): The WOW momos have a large number of versions as compared to McD. Also, momos allow for better fusion of Indian flavors to make new variety of momos as compared to burgers. Quickness (preparation time): Both require less time for preparation and hence score similar on this parameter. Wow Momos also have more store formats as compare to McD and hence can cater to more variety of customers as compared to McD, but McD has backing of huge institutional investors like JP Morgan and can spend a lot on advertisements and promotions.

3. Wow Momo can specialize into a new brand of Cafes which cater to a niche market.

Cafes, Lounges and Bar, as per Exhibit 4 have a CAGR of over 25% which can be exploited by Wow Momos. As per market research, the consumers preferred to eat Wow Momos in the restaurant/ café rather than getting them delivered online. They were attracted to the ambience and experience of eating fresh Momos if seating was available. This segment had developed a liking towards Wow Momos which could be used by them for the cafes. The consumers prefer café on the basis of ambience and fresh fusion snacks which Wow Momo could provide. This would also help them expand from a low-cost business to cater to a niche crowd. The brand could cater to fusion fast food like Momo lasagna, coffee with flavors as well as sandwich momos. The direct competition that Wow Momos could face from is Café chains like CCD which has a market share of about 8% FY17 as well as internal collaborations like McCafe. The product innovation of Wow Momo in this case could be in a category which doesn’t just serve as snacks, but a full meal. Wow Momo should look into different types of Momo Pizzas, Lasagnas, Momo Spaghetti, Momo Pasta etc. The focus should be on the ambience and healthy food in this case rather than quick delivery. This would help Wow Momos with the increased capital expenses as the margins in this case would be pretty high. Wow Momo should target the youth, constitutes majority of the consumers of QSR and CDR. The higher purchasing power would help their cause. The target audience should be the one which is willing to hang out with their friends in café to eat food which has different flavors and eccentric choices. The positioning should be that of a café with a high-end service driven chain with a good variety of food and good music. The brand should cater to an audience who care more about the variety in food rather than costs. (3C1P and STP)