Analysing brand personality building on social media and its effect on brand loyalty in indian fast food industry?

Abstract

Growth is poised for the future in Indian market due to India’s young population under 25 yrs as well as penetration of these brands in Tier-II cities. India and China are seen by these brands as next big opportunities after market saturation in US and European markets. Vegetarian fast food market constitutes 45% of the overall market also growing at 18% and all major brands are focusing on this sub-segment as well customizing their offerings but introducing several ethnic options. Eating out frequency for the Indian market is still less at an average of 4-5 times as compared to US which is around 28 times which represents huge head room to grow. TV advertising comprises the main channel for communicating with consumers due to high penetration. However, smartphone penetration is around 45% and thus the reach of social media is increasing in India. Online ordering has increased due to convenience factors and sprawling food tech startups. Moreover, affordability is also favorable especially with brands rolling out frequent promotional offers. However, the clutter is increasing and India is seeing an over-supply of global brands with ever narrowing differentiation. In terms of the global perspective, McD has the highest brand equity globally in fast food brands while Subway, KFC and Pizza Hut occupy positions from 3rd to 5th positions. In US fast foods industry revenues are at $225Billion with McD having over 14k stores just in North American region. Global market is expected to reach $690Billion which grew due to increased urbanization and hectic lifestyles. Europe which is the second largest market has seen major shift towards healthier options. Brands such as McD have recognized these challenges and are making strides to stay relevant in the transforming food market. Growth is poised for the future in Indian market due to India’s young population under 25 yrs as well as penetration of these brands in Tier-II cities. India and China are seen by these brands as next big opportunities after market saturation in US and European markets. Vegetarian fast food market constitutes 45% of the overall market also growing at 18% and all major brands are focusing on this sub-segment as well customizing their offerings but introducing several ethnic options. Eating out frequency for the Indian market is still less at an average of 4-5 times as compared to US which is around 28 times which represents huge head room to grow. TV advertising comprises the main channel for communicating with consumers due to high penetration. However, smartphone penetration is around 45% and thus the reach of social media is increasing in India. Online ordering has increased due to convenience factors and sprawling food tech startups. Moreover, affordability is also favorable especially with brands rolling out frequent promotional offers. However, the clutter is increasing and India is seeing an over-supply of global brands with ever narrowing differentiation. In terms of the global perspective, McD has the highest brand equity globally in fast food brands while Subway, KFC and Pizza Hut occupy positions from 3rd to 5th positions. In US fast foods industry revenues are at $225Billion with McD having over 14k stores just in North American region. Global market is expected to reach $690Billion which grew due to increased urbanization and hectic lifestyles. Europe which is the second largest market has seen major shift towards healthier options. Brands such as McD have recognized these challenges and are making strides to stay relevant in the transforming food market.