CB Caselet- Rishika Omer

Consumer Behavior Assignment Caselet By

Rishika Omer A0101909155 MBA Class of 2011 C-13

Submitted to:

Mr. V.S. Tomar

Caselet In a restaurant meals are generally served and eaten on premises, but many restaurants also offer take-out and food delivery services. Restaurants vary greatly in appearance and offerings, including a wide variety of cuisines and service models. Over the last decade, several Indians have relocated to satellite towns and Tier-II cities in search for better job opportunities. This, coupled with increasing employment of women in the workforce has led to manifold increase in households with no parents at home to act as caretakers. As a result, working couples and bachelors seek refuge in food offerings at restaurants. The increasing consumption of the food category has, obviously, lured restaurants who have come up with unique offerings over the years. What makes the competition more interesting is a diverse consumer segment that looks for an increasing set of options to suit their unique preferences. The menu of Aromas restaurant which is located in Kanpur consisted of different variety of product like burger, pizzas, Indian items like Kebab Meals, Dals, Rice and Breads, Rajma Rice & Pickle, Masala Channa with Bakery Kulcha, snacks like French Fries, Pao Bhaji, coke combos, buddy meals etc. In an interview with the owner Mr. Rahul Laharya of restaurant Aromas, he talked about some issues related to consumer behavior. The major issues of concern are consumers are now preferring the food items which are basically the low calorie items so they have to include more number of low calorie items like baked food items in their menu as consumers wants the restaurant industry to respond more aggressively to nutritional concerns. Secondly, How will hungry customers react to new menu items? Restaurant adds new dish to its menu every eight weeks to boost sales and satisfy loyal customers who seek variety. When restaurant’s product development head created new salad, he noticed that consumer interest is growing in whole grains. He got the favorable response from the consumers and now the salad is added on the menu items. The way a restaurant develops and market new menu items illustrates some of the factors that influence consumer’s behavior about innovative offerings.

Third, they have to keep in mind that customer group is heterogeneous in nature, they must keep in mind the taste of heterogeneous group so as to offer them food items and snacks according to the need. And last but not the least the quality factor is of the major concern at affordable price. At standard restaurant customer wants value for their money and if they are paying for something they don’t want to compromise with the quality of the product. As there are many competitors in the market so to have competitive edge and for being first choice of the consumer they must keep these points into consideration. Case Questions: Q1.)

What factors influence the choice of consumers to select between different alternatives?

Q2.)

How consumer adopt an innovation and why they might resist adoption? Explain.

Q3.)

Throw some light on the growth of food service industry.

Q4.)

What major challenges a restaurant has to face to have competitive advantage?

Interviewed Person: Mr. Rahul Laharya (Aromas Restaurant) Ph. No. - 9250543863