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 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 Oporto  Oporto serves the spices recipes which suits in Indian community  Its unique dipping sauce Weakness:  increasing price competition driven by too many competitors  Lack of product innovation  High employee turnover  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  10 th 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)