Transcript Presentation

Prepared By
Md Ifthakharul Alam
Nagendra Koirala
Faisal
ABOUT OPORTO
 Established in 1986
 Founder- Antonio Cerqueira
 Over 140+ stores in operation in the world
 Only in Australia, New Zealand, the U. K and
the U .S).
COUNTRY FACTOR ANALYSIS
REASONS TO EXPAND OPORTO IN INDIA
 India’s growing economy
 Increase in the fast working population
 Changing lifestyle and spending habits
Economic factors
Benefits:
 Due to their growing economic status, purchasing powers have increase
for fast-food.
 Due to busy lifestyle, trend of going to favourite restaurant is increasing.
Cost:
 Initial cost will be higher.
 Higher competitions among other multinational fast food restaurants
Risk:
 Due to frequent changing of interest rate, currency exchange rate can
affect the business of Oporto.
 Pressure to reduce the price of the product
LEGAL FACTORS
Benefits:
 Gives them better control for Oporto over management of the
organization
 New Export-Import Policy provides substantial tax incentives for
investments in Export.
Costs:
 Many Fast food companies prefer to have their own setup in India so
high competitors for Oporto.
 Indian law enforcement is weak
Risk:
 Frequent change of law can affect the business.
 Double tax
POLITICAL FACTORS
Benefits
 Stability of the government
 Trade policies
Costs:
 Laws of different governments and judicial systems might
conflict.
 Indian politics is tough and dirty
Risks:
 Number of parties has states control with insignificant
presence at national level.
SOCIAL AND CULTURAL FACTORS
Benefits:
 Indian community like spicy food like spicy Bondi burger.
 Chicken product is culturally accepted
Costs:
 Some culture doesn’t eat chicken products.
 Business that sells a lot of junk and unhealthy food and the
nation is becoming more health conscious
 Language barrier.
Risks:
 Racism
 Vandalism
RELIGIOUS FACTOR
Benefits:
 Chicken product and most of Oporto product is religiously accepted.
 Majority of religion prefer chicken product and burger.
Costs:
 Eating chicken is forbidden in some Hinduism
 Conservative thinking about fast food restaurant.
Risks:
 Franchise may not order any beef due to the lack of demand so
business deficit.
 Shutting down of meat restaurant on Tuesday, can attribute to high
loss.
Market analysis for OPORTO in India
Market Segmentation
 Demographical: Basis of the income factors
 Behaviour: Basis of quality, taste and price
 Geographical: On the basis of areas: urban and suburban
 Psychological: Influences customer buying behaviour
Target Market Strategy
 Targeting the youth of 15-25 years
 Cities areas where people have high income and busy
 Workers in the boutiques and shopping malls
Comparative advantages for OPORTO
 Its unique dipping sauce concept
 Spicy burgers and chickens with piripiri sauce.
 Its friendly staff gives the atmosphere energy and
an enthusiastic air, which makes the restaurant fun,
reflecting the company’s culture and target market
OPORTO’S SWOT ANALYSIS
Strength of OPORTO:

quality of food is a key strength to
Weakness:

Oporto


i n c r e a si n g p r i c e c o m p e ti t i o n
d r i v e n b y t o o m a n y competitors
Oporto serves the spices recipes

Lack of product innovation
which suits in Indian community

High employee turnover
Its unique dipping sauce

Lack of knowledge about their
customers
Opportunity:

Targeting to growing ethnic Indian
markets

Updating restaurants

Balanced menu
Threats:

International Exchange Rates

Health Trend away from fried foods

Changing customer’s demand
Oporto’s business strategy
Global standardization
 Allows Oporto to sell a standardized product worldwide with
centralized control
 Global customer satisfaction, lowest labour
 weak pressures for local responsiveness
 faster product development and coordinate activities
 High competition
 Lack of strong brand
Products
Burgers
 Bondi Burger
 Veggie burger
 Oprego burger
Wraps
 Chicken wraps
 Veggie wraps
Chicken
 Grilled breast chicken
 Grilled whole chicken
Extras
 Chips
 Piripiri Sauce
Industry Characteristics
Fast food restaurants provide limited table service in India.
Customers order, pay and collect their food at the counter
instantly.
Food and beverages are served quickly after the order is
placed.
Food and beverages may be consumed at the premises or
“taken out”
Advantages of Oporto
Oporto Business is based on a proven idea.
Oporto is a recognized brand name and trade marks.
The franchisor gives the support.
Relationship with supplier
Bank Support
Exclusive rights in the territory
Disadvantages of Oporto
Costs
Restrictions
Might go out of business
Bad reputation
 Difficult to sale
FDI in India
10th largest city in the world
Economy is the third largest
GDP of US $800.8 billion
GDP growth rate of 8.9%
 Diverse work force
 Opened FDI in the 90’s
Market Potential
Infrastructural hassles
Indian Bureaucracy
Diverse Market
Entry Strategies and Modes
“a method of doing business by which the franchisee is
granted the right to engage in offering, selling, or distributing
goods or services under a marketing format which is designed
by the franchisor. The franchisor permits the franchisee to use
the franchisor’s trademark, name, and advertising”
Which Type Franchise
Name and process franchise
Product franchise
Why Franchise
Less Risk
Researched investment
Know how skills
 Proven business method
 Better Training
 Brand Name
 Management facility
 Develop business plan
Why not Joint-venture
 Less risky than join-venture
 Communication problem
 Share the loss
 Trust building problem
 Political issue
“Joint venture model can be adopted in manufacturing
businesses but in retail outlets or food industry the
franchising is the best way to expand business”
Amoha Education
Marketing Strategy
Product
 Piripiri Sauce
 Unique packaging
 Better quality
 Hot and warm
Marketing Strategy (Con’t)
Place
 East Delhi
 Quality Outlet
 Drive Through
Marketing Strategy (Con’t)
Price
Aus $4 for meal deal
 Lunch Special
 Family Deal
Marketing Strategy (Con’t)
Promotion
 Logo
 News paper ad
 Radio Ad
 Billboard
 Web marketing (Coupon)