Analysis of Indian Food in the UK Food Industry

Analysis of Indian Food in the UK Food Industry decision maker SUMMARYEating out in U.K has become a haute gastronomical adventure with lip smacking results. Curry houses be a British institution, as much a part of the national fabric as the local pub. Surprisingly there ar more(prenominal)(prenominal) Indian restaurants in capital of the United Kingdom than in Delhi ( cracking of India) (Hemisphere Magazine, 2005). The examine was obtained at discovering the various problems that besiege the sedulousness in UK. The dissertation weaves d unrivalled various problem scenarios and the search to start out it solutions.The three master(prenominal) problems which were discovered through face to face interviews wereoccupation of retaining client through serve up QualityProblem of retaining guest collect to limited workforceProblem of promotion policy advertising and sales promotionFor these problems deuce theories of Hospitality marketplaceing were chosen. These two theor ies i.e. Theory of gain forest and furtherance policy in restaurant industry were imageed in conjunction with the fieldwork analysis of the restaurants in capital of the United Kingdom. Problems were and so talk ofed in gibe to the theories. The discussion gave rise to come uply hypothetical situations which were again tribulationed in raise search.The methodology utilize in the s female genital organ was selected after prudent consideration of the investigate interrogation and the limitations. Using the usurp inquiry tools, an in-depth theater was done and it was known that exclusively three problems were not isolated in themselves rather they were headspring connected. The c erstwhilept of Ser fault Quality was seen missing extensively in the philosophies of the Restau measureurs.In a nutshell, it can be mentioned that nearly from each one problems seem to stem from deficiencies in supporter tone. However at this point, it should be noted that no single p roblem can be the of import culprit nor a special solution, a panacea for all ills. It is with this in mind that this study should be viewed.CHAPTER 1INTRODUCTIONFor the purposes of this search, the term Indian food covers food from the Indian, Bengali and Pakistani traditions. The market take ons sales through restaurants, pubs and takea flairs. ready meals (both frozen and chilled) sauces yesterye ars, accompaniments and get dressed powder. The introductory part of this look for contains set ScenarioThe largest ethnic minority group in Britain are Indians (approx 10,000,000 race) (Crown,2004) with over 40% of them (approx 800,000) living in the Capital i.e. capital of the United Kingdom which contri thoe to 6% of the do population of London (LFC,2004). These facts justify the existence of over 1000 Indian restaurants in UK and 4000 only in London and the South east (Grove International,2004). The excerption of these Curry Houses is a blessing for the true Indian food co nnoisseur. only if recently the Indian Food Industry in UK ready undergone some study structural changes. With the popping up of Giant restaurants in the Capital akin the Cinnamon Club (Westminster), Tamarind (Queen Street) and Zaika (Kensington High Street) in the past couple of years, this has invited the interest of lot of the professional bodies like Time egress Guide, Evening Standards, Daily Telegraph, Financial Times and so forth The various reviews (Iqbal Wahab,2004) disposed by them to the acclaimed Indian restaurants in London speak of their varied interests.Indian food is a 3.2 billion industry in Britain, accounting for two-thirds of all eating out (Geraldine Bedell, May2004). This modern evolved Indian Cuisine in London has sparkled since the time when Tamarind and Zaika, Indian restaurants in London, were awarded the Michelin star. The famous dish complainer Tikka Masala is now an au sotic English national dish (Robin Cook,2004) All these facts well-nigh this I ndustry makes it big and at the same time it evolves more an separate(prenominal) prospects and problems in itself. Importance of Indian RestaurantsIn the expire half-century, curry has become more traditionalisticly English than English breakfast. Some fitting facts in this surroundings areAccording to Mintel reports, Indian restaurants is 1733 million industry in Britain which is more than two third of the aggregate food industry in Britain.(App poleix 1)In an exclusive consumer survey commissioned by Mintel, 42% of the respondents stated that Indian/Bengali/Pakistani food was among the types of food that they nigh enjoyed, up from 38% in 1999. Indian food is most popular with 25-54-year-olds and, in rail line to Chinese food, shows a strong up market bias (Mintel, 05/2004)It is one of the biggest industries in Britain employing over 60,000 people (menu2menu, 2005)There are over 8500 Indian restaurants in UK and 3500 only in London (Grove International, 2004). Indian res taurants are the study players in Brits ethnic cuisines overshadowing Chinese outlets which are around 7400. (Mintel,2005)Indian restaurants serves 2.5 millions Brits all week besides David Beckham celebrated after scoring the goal that able England for the World Cup, at Manchesters Shimla Pinks, with his favorite chicken korma. Madonna, more and more the Anglophile, has obviously interpreted to ordering the taxi curry takeout from the Noor Jahan restaurant near her London home in Westbourne Grove (Guardian,2004, Issue 2). Every lofty street has its Star of India or Taj Mahal. Surprisingly twice as much Indian food is sold in Britain as fish and chips (Economist, 1999) and McDonalds bewilder had to adapt their British menus to include curry and spice.These ubiquitous curry houses are coming up in the world. They are no monthlong consigned to the ranks of post-pub grub besides there is a gradual growth rate in the Indian restaurant market since 1999. (Appendix 1) Also the fact that Indian restaurants commit a strong influence on the retail sphere of influence is undeniable. They puddle provided most of the recipes and are the sole benchmark for au then(prenominal)ticity for products like Indian ready meals, sauces, pastes and accompaniments.UK Food IndustryThe food industry in the UK has undergone dramatic change over the last few decades, a phenomenon which has been named the manipulation revolution Ritson, C. and R. Hutchins (1991). Fragmentation of demand has been coupled with concentration in supply, so that the majority of food expenditure is now channeled through five major supermarket groups Waterson, M. J. (1995). This has posed threats to the small agrifood producer, who is typically unable to meet the volume and agreement of supply assumements of the large retailers. However, opportunities live with as well as arisen many small producers have successfully targeted nook markets, often through direct marketing or distribution through in pendant outlets. Their offerings ordinarily carry the typical characteristics of niche products, in that they possess added mensurate, are differentiated from competitive offerings and charge a premium price. With such(prenominal) characteristics it is possible for small producers to succeed within a highly competitive environment Phillips, M. (1994).However, recent opportunities have also arisen in the food five-fold sectors, as supermarket groups show an increase interest in stocking specialty and revalue-added food products. This interest stems in part from a bank to improve product range and enhance consumer choice. However, it could also be viewed as a response to public criticisms of the negative sociable and environmental personal effects of concentration in food distribution in particular, the development of centralized distribution systems which mitigate against the use of smaller, local suppliers by food multiple arrange. Some supermarket groups in the UK are now a ttempting to improve links with such suppliers, by, for example, devolving decision-making power to store directors, improving purchasing technology and creating opportunities for buyers and producers to meet and discuss one anothers need Carter, . Shaw (1993).There was a Greek community in Greek Street, London as long ago as 1677 so Greek cuisine is not exactly new to Britain. The influx of Cypriots started in the 1920s and 1930s and they began opening restaurants after the Second World War.Greek Cypriots tended to settle in Hackney, Palmers Green, Islington and Haringey and Turkish Cypriots in Stoke Newington. Greek Cypriots appeared in Soho in 1930s then Camden Town after the war and then Fulham by the mid sixties. The main influx of Turkish Cypriots was in the 1960s and by 1971 the Greek Cypriot community had turned its attention to timberland Green, Palmers Green and Turnpike Lane.Only around one third of the 550 or so Greek restaurants in Britain are in London, most of th ese macrocosm in North and West London. Some 40% of the 150 or so Turkish restaurants are in the capital with a expectant concentration in North London. Turkish cuisine is also well represented in Scotland. One of the earliest Greek restaurants was not in London at all but Georges in St Michael Street, Southampton in 1940, moderately pre-dated by The White Tower in Londons West End in 1939. Kalamaras in London W2 opened in 1966 and remains popular today. The most successful of the Turkish restaurants at present is the Efes Group which started in London but is now in several locations throughout the country.Aims and objectives of the researchThe mechanisms of globalisation has made the world a smaller place and, while this has helped to discover various cuisines to new fields, it has subsequently resulted in the development of fusion foods, which has implications for the Indian restaurant market. The image of men behaving badly, gulping downing super-hot curries with several pi nts of lager, are long gone. Today, a trip out for a curry is a posh affair, with some of the countrys top chefs cooking up sophisticated dishes of complexity and variety. (LFC,2004)With these growing fashion of globalization, there is a huge threat to Indian restaurants which are traditionally managed by the family members. According to the Economist-But once trends become clichs they have a expression of nose-diving. Open the pages of the dandy Curry Guide, and you result discover that all is not well. According to the guide, last year there were at least 300 closures of Indian restaurants in Britain, compared with just over a hundred openings. Indian restaurants, while muted the biggest players in the industry, are losing market share eastern cuisine, such as Thai and Japanese food. (Economist, 2005)The main aim of the research is To assess the major issues that determines the performance and competency of the Indian foods/restaurants in UK.The Objectives are to To Assess t he dish up quality and the fork out train Management. To Assess the consumer Perception towards Indian Foods and the applicable Marketing pleat to exploit the opportunitiesRationaleIndian Cuisine which the westerners commonly call Curry is highly popularized by the Indian restaurants in UK. These restaurants which are primarily owned by Indians reflect the specialty of every region of India. The spread of curry beyond its home in the sub-continent is inextricably cerebrate to the presence of the British Raj in India. Army personnel and civil servants acquired a taste for spicy food whilst in India and brought their newly found dishes home. Since then spicy Indian dishes are highly liked by the people in UK.London is a hub of Indian foods and restaurants. With the growing area of distinctiveness and people trying new and creative things in their restaurants in London the problems have started increasing. Problems of not only external environment like increasing competition , strict food and health policies or inflation, etc but also the internal problems which relate to the marketing strategies, sourcing of raw materials or inefficient management, etc.This study leave behind explore SCM issues with reference to market fragility and market access purchasing power purchasing decisions and relationships rendering of client needs barriers and frustrations and strengths and successes. This report is premised on the belief that supply chains are grand for maximizing efficiency. But supply chains are farthermost more important than that the management of supply chains increasingly influences the nature, outdo and confederacy in enterprise development and sustainability. In other words, supply chains are re-structuring the lines of business development in knowledge-based economies. This study allow further high light the consumer perception and the Marketing mix.CHAPTER 2 Literature revue2.0 Chapter OverviewAs Indian Restaurants are a part of the hospit ality industry, this chapter contains the books taken from the subject of marketing in hospitality industry. Two main theories are used to analyze the three main problems stated in the previous chapters. They are* service Quality and Supply concatenation* Promotion Policy Advertising and Sales promotionThe two theories are then analyzed in light of the problems. A relationship is developed among the industry and theories by researching the trends. These theories are then used for drawing conclusions and recommendations in further chapters. For the reader, this chapter will be the base of agreement the ongoing trends in the Indian Restaurant industry.2.1 Introduction to Hospitality Marketing in Restaurants today marketing isnt simply another function of business rather its a philosophy, a way of thinking and a way of organizing your business and your mind. The customer is the king (Iverson, 1989). According to Kotler (2000, Ch. 1), satisfying the customer is a priority in most businesses. But all customers cannot be satisfied. There has to be a proper selection of customers which enable the restaurants to meet its objectives.In the Restaurant industry, many people confuse marketing with advertising and sales promotion. It is not crotchety to hear restaurant managers say that they do not believe in marketing, when they actually mean that they are disappointed with the impact of their advertising. In reality, sell and advertising are only two marketing functions, and often not the most important. As Kotler said in his book, Marketing for Hospitality and tourism (1996, Chapter-1), advertising and sales are components of the promotional element of the marketing mix. separate marketing mix elements include product, price and distribution. Marketing also includes research, randomness systems and planning.The aim of the marketing is to make selling superfluous. The aim is to know and understand customers so well that the product or go fits them and sells it self.(Drucker,1973,p. 64-65) The only way selling and promoting will be effective is if we first define customer targets and needs and then prepare an easily accessible and available value package.The purpose of a business is to create and maintain profitable customers. customers are attracted and retained when their need are met. Not only do they turn in to the same restaurants but they also talk favorably to others near their satisfaction. Customer satisfaction leading to profit is the central goal of Hospitality Marketing.(Kotler Bowen Makens, 1996, Chapter- 1) less repeat customers and bad words of mouth are deeds of the manager who interprets profits above customer satisfaction. A successful manager will consider profits only as the result of running a business well, rather then its sole purpose. So in this improvement based industry (Indian restaurants) the entrance of corporate giants with mesmerizing marketing skills have increased the splendor of marketing within the industry. Now lest see how far these Hospitality marketing stunts can save the appalling scene in the industry.2.2 Service QualityDaryl Wyckoff has defined operate quality as, Quality is the academic degree of excellence intended, and the control of variability in achieving that excellence, in meeting customers requirements. ( Wyckoff, 1984, p 81) This theorem of quality is however not accurate as experts says Quality is whatsoever the customer says it is and the quality of a particular product or service is whatever the customer perceives it to be (Powers,2000, p 179). So the main accent is on the customer and perceived quality.A more professional way of looking at quality is by conceptualizing it broadly along the two critical proportions i.e. technical quality and interpersonal quality. Technical Quality is generally the minimum expected from a hospitality operation.(Did things go right, Was the food hot) (Powers, 1997). This dimension of quality is relatively objective in nature and is thus measurable.Interpersonal Quality is a comparatively difficult dimension (Was the waiter favourable? Did the service staff go out of their way to be assistive? Did the customer feel welcome or out of place?) As Gronroos (1980) points out Even when an excellent solution is achieved, the firm may be unsuccessful, if the excellence in technical quality is counteracted by badly managed buyer-seller interactions. And vice versa the charm in this world will not make up for bad food or a lost reservation. So each dimension is critical.2.3 Concept of building customer satisfaction through qualityThe fundamental strategic decision to be taken by the Indian Food manufactures at the outset is to consider the service system any standardized or routine/customized. In the former, more importance is addicted to technical quality, operation goes by the book and little importance is compensable to employees discretion. While the later gives importance to both qualities and mor e discretion is prone to the employee.Customized system of service is recommended to the restaurants as consumers go to the restaurant that they believe offers the highest customer delivered value or customer satisfaction i.e. the difference surrounded by total customer value and total customer cost* The customer derives value from the core products, the service delivery system and restaurants image.* The costs to the customer include money, time, energy and physic costs.Quality is made up of two components that is to say technical and interpersonal. Managers must keep in mind that in the end the customer perceptions of the delivered quality are what is important. Customers assess delivered services against their expectations. If perceived service meets expectations, they view the service as good quality. If perceived service fall short of expectations, they view the service as poor. Expectations are formed by past experiences with the restaurants, word of mouth, the restaurants external communication and publicity.A widely used model of service quality is known as the five flutter model. This model defines service quality as meeting customer expectations. The prescript behind the formation of this model was to discover the expectation of the customer which is perhaps the most critical step in delivering service quality. This model is closely think to marketing since it is customer based. This model has five gaps, fault 1 Consumer expectations versus Management PerceptionGap 2 Management Perception versus Service Quality SpecificationsGap 3 Service Quality Specifications versus Service preservationGap 4 Service Delivery versus External CommunicationsGap 5 Expected Service versus Perceived ServiceThe detail study of this 5 gap model is out of the boundary of this research. But the question is whether this aspect can solve the issue, can it benefits the industry? The answer is discussed in Chapter 4.2.4 Supply ChainMost Important aspect for increasing s ervice Quality performance is Supply Chain Integration. Effective Supply Chain Management can-* Cut Down The Total Cost Significantly.* addition the productivity and Performance.* Improve time and labour economy.* Can differentiate Service quality.* Can provide optimum Speed and comfort in quality Service delivery.In other words it provides better economy of scale and competitive advantage.The Value ChainSource Johnshon and Scholes, 2004The Value Chain will be discussed in the essence of the Supply Chain Management Issues.These elements of a snitch are illustrated in 1.It has long been recognized that products have meanings for consumers beyond providing mere functional utility. Symbolic consumption was recognized by Veblen (1899) in his Theory of the Leisure Class and termed conspicuous consumption. Noth (1988) quotes Karl Marx and his metaphor of the language of commodities in which the linen conveys its thoughts (p. 175) while Barthes (1964) discussed a semiotic threshold with the semiotic quick above the utilitarian or functional aspects of objects.Given the symbolic practice of brands it is no surprise that semiotics, as the study of signs in society, is increasingly creation used in understanding consumer behavior. Initially used in facilitating understanding of the consumption behavior surrounding cultural products such as put down and other works of art (Holbrook and Grayson, 1986) and fashion (Barthes, 1983), its widespread usage to interpret symbolic consumption in all aspects of consumer behavior is anticipated (Mick, 1986).The possibility behind this research technique is that brand equity is built on consumers perception of the emotional benefits or brand affinity, combined with physical orConcrete benefits The performance delivered by the product or service offered. The technique attempts to evaluate each of these two aspects in detail, providing a clear understating of its importance for the category under investigation as well as for th e brands in that category.During the development of this technique we identified and coded the emotional factor that repeatedly appeared in all markets in the study, allowing us to conclude thatThey are valid for close to any product or service category when the subject is brand equity evaluation. These aspects can be classified into three groups brand causationity, take aim of identification that the substance abuser or consumer has with its positioning, and level of social approval it offers to its user or consumer.Authority might be defined by the brands heritage or long-standing reputation and leadership, by the trust or confidence it inspires to consumers, and by aspects associated to innovation or technological development as perceived by consumers.Thus all the branding theories leads to the consumers Perception.3.2 Consumer Perceptions Of FoodsInvestigation and analysis of food get and consumption is well-documented within the discipline of consumer behavior. Studies in this area tend to taste the complexity of factors which drive food-related tastes and preferences, and some authors have proposed models which attempt to categories and integrate these factors and so offer insights into the formation of food preferences and choices. Shepherd. R, (1989) provides a review of such models, from Yudkin, J. (1956), which lists physical, social and physiological factors, to Booth and Shepherd (1988) which summarizes the procedurees influencing, and resulting from food acceptance, and lists factors relating to the food, the individual and the environment. However, none of these models incorporated a consideration of the role of place in food, and consumer perceptions of this attribute.It may be noted that, by their very nature, food products have a land-based geographical origin (Brard, L. and P. Marchenay 1995), which would suggest that people readily make strong associations between certain foods and geographical locations. On the other hand, the proc ess of delocalization of the food system in the twentieth century, as described by Montanari , (1994) has weakened the traditional territorial and symbolic links between foods and places. The inference is that the concept of Indianity in foods may no longer be important or lovely to the modern food consumer, who is faced with such a wide raiment of exotic and international products all year round. Thus it may be that in the mind of the consumer, specific names, production methods or presentational forms of particular foods are no longer associated with the geographic areas from which they originate. An opposing view is taken by Driver, (1983) however, who describes resurgence in the interest in traditional Indian dishes in the UK, which perhaps reflects the symbolic importance that particular foods have in our lives and culture. These debates highlight the need for empirical investigation of peoples perceptions and understandings of Indianity in food. Linked to this debate of the p erceived meaning of Indianity in foods is the concept of authenticity. If Indian foods are linked in some way to origins and tradition, it implies that producers of Indian foods are involved in providing and communicating intangible attributes of heritage, tradition and authenticity in their product offerings. These require careful management, particularly in view of authors such as MacCannell 1989, Hughes, (1995) and Urry, (1995), who, in relation primarily to tourist experiences, point out the difficulty in defining what is authentic, and in communicating this to an increasingly sophisticated and diverse consultation of consumers. In relation to Indian foods, information is needed on consumer perceptions of allot attributes of products, which are the most attractive and why.CHAPTER 4METHODOLOGY A-RESEARCH PHILOSOPHY onslaughtIn the previous chapters, author has outlined research aim and objectives with examining the pertinent literature review. However, the successful complet ion of any study is heavily dependent on the choice of an appropriate research method and come near. Moreover, the appropriate research methodology provides guidance for the development and evaluation process of study. Wit the appropriate methodology the author can justify the achievement of the objective. question processThe research process adopted is based on exploratory betterment, but prior to that it is necessary to highlight upon the methodological pen work.The recognized exponents in this field are Hussey Hussey (1997), Zikmund (2000), Saunders et al (1997, 2000) and others who presented different methodological framework from which investigators can conduct their research. Most of these frameworks follow certain similar central theme. The author has adapted the below-illustrated methodological framework to fulfill the research aim and objectives. This is chosen, as it supports the author research design and process, Furthermore, methodology has been designed where inf o is stash away and interpreted. The findings and analysis with conclusions and recommendations at the end follow this.METHODOLOGYResearch aimThe main aim of the research is To assess the major issues that determines the performance and efficiency of the Indian foods/restaurants in UK.Research objectives To Assess the Service quality and the Supply Chain Management. To Assess the consumer Perception towards Indian Foods and the relevant Marketing Mix to exploit the opportunitiesResearch PhilosophyEasterby-Smith et al (1993) states three reasons why it is utile to state the research philosophy about proposed research before aggregation selective information* To clarify the research design-the method by which data is sedate and analyzed-taking a holistic view of overall configuration.* To help recognize which designs will work and which will not* To help identify and create research design to adopt research approach according to the required research aim and objectives.There are t wo main types of research philosophies in existing literature. They are Positivism and Phenomenological. They are different, if not mutually exclusive, views about the way in which knowledge is developed and judged as being acceptable. They have an important part to play in business and management research. (Saunders et al, 2005, p 83) The positivistic philosophy which seeks the facts or arouses of social phenomena(Hussey Hussey,1998) is more objective, uninflected and structured and the researcher is independent of the subject. (Remenyi et al., 199833). In addition, the quantitative data should be collected and statistical analyzed when test the certain theories.(Saunders et al, 2005, Hussey Hussey,1998)On the other hand phenomenological philosophy which understanding human behavior from the participants own frame of reference (Hussey Hussey, 1998) is more subjective and the researcher is dependent on their mind. qualitative method can be used such as a case study.It is import ant that which philosophy is better for my project. Saunders et al. (2005) state that no philosophy is better than others so choosing philosophy depends on the research question. Having considered the aims of this research project, I will choose phenomenological philosophy because this research question is How the Supply Chain helps the Indian Food Industry in UK in achieving efficiency and the meaning of Consumer perception to the marketing mix.The research will be qualitative. In order to answer the research question, I would do case study on Chinese and UK textile and clothing firms and collect data by using interviews.Research ApproachInductive or Deductive ResearchUndoubtedly the research approach is very important for the project. There are two research approaches, which is the deductive approach and the inductive approach.As mentioned in Saunders et al (2000), the major differences between the deductive and inductive approaches to research are as followsDeduction emphasisIndu ction emphasis Scientific principles romp an understanding of the meaning humans attach to eventsThe need to explain cause and effect relationship between variablesA close understanding of the research stage settingThe collection of quantitative dataThe collection of qualitative dataThe application of controls to ensure clarity of definition and highly structuredA more flexible structure to permit changes of research emphasis as the research progressResearchers independence of what is being researchedA realization that the researchers is a part of research progressThe necessity to select sample of satisfactory size in order to generalize conclusion Less bear on with the need to generalizeDeductive approach aims to develop a possibleness and or hypothesis and design a research strategy to test it. Deductive approach is a rigid methodology, which not permits alternative explanation. It emphasizes on scientific principles and moving from theory to data. It is a highly structured ap proach and need more operationalisation of concepts to ensure definition. Oppositely inductive approach is which the researcher would collect data and develop a theory as a result of data analysis. It is an alternative approach and theory building followed data collection. In addition, it is the better way to study the small sample because of concerning with the context in which the events are taking place. (Saunders et al, 2005, p 85) Easterby-Smith et al. (2004) state that if the researcher have interested in understanding why something happening the inductive approach is more appropriate. Having considered the aims of this research project, it seems that inductive approach is more suitable. Firstly, according to Saunders et al (2005), inductive approach is closely related to phenomenology. Secondly, although there are many author contributed to theories about international branding but not specifi