PRELIMINARY CASELET

The Indian Burger

Fast food is one of the fastest growing food types. It now accounts for roughly half of all
restaurants in the world. People buy fast food because it is cheap, easy to prepare & heavily
promoted. The fast food can be divided into the following types:

Fast Food

Burgers Continental

Pizzas Sandwiches

Chinese Sizzlers

Indian

Would you resist delicious roadside food – if it were hygienic? Deeraj Gupta, The Jumbo
Vada pav king bet you couldn’t. Now everyday at least one lakh consumers prove him right.
Ironically, it was not the Mumbai-ite's love of the vada pav that initially inspired Dheeraj
Gupta. Though biting into one of the piping-hot treats, consisting of deep fried potato
dumpling served in a lightly buttered bun, may be elevating, Dheeraj's original inspiration
for Jumbo King Vada Pav was much more prosaic.

While visiting London, Dheeraj stayed with a friend who owned a Burger King franchise.
"That's when I saw how their business worked," he says. Dheeraj was fascinated by the fast
food franchise business. "Back in India, I happened to come across a book about the person
who set up McDonald's. It inspired me tremendously and I decided to follow the same
model."

K.J.SOMAIYA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

©SIMSR CASESTUDY RESEARCH CELL
Dheeraj took his idea further - he was willing to bet that, for snacks they knew were
hygienic, people would pay him more than twice the price than they would pay for a vada
pav from a traditional street stall.

It turns out that vada pavs are a young person's food. In fact, a feasibility study performed
by Jumbo King showed that 75% of vada pav purchasers are 16 to 25 years old. Also,
surprisingly, the majority of people purchasing the snack hail from the higher income
brackets.

Mumbai based Jumbo King Foods has planned investment of Rs 75 crore in the next three
years for expansion that would include establishing franchised stores, company owned
stores and kiosks. The Indian food retail chains also thinking of expanding its footprints by
foraying into malls and establishing its presence in retail chains such as Reliance Fresh,
More, Spencer & Big Bazaar through kiosks. The company has started importing the kiosks
from China, each of these costing around Rs. 2.25 lakh. Jumbo King plans to put up at least
280 such kiosks by 2011. The company is also in talks with Indian Railways for setting up its
stalls on railway station and in near future, it would like make its presence felt at airports
too. Jumbo King has already tied up with BPCL for establishing its outlets at the latter’s
petrol pump. Jumbo King is targeting a turnover of Rs 30 crore this fiscal and expects to up it
to Rs 150 crore by 2011. Presently, Jumbo King has around 45 operational stores and plans
to expand them rapidly.

Jumbo King wants to have pan India presence. Based on the above-mentioned data, prepare
a retail marketing strategy & suggest a mode of entry??

K.J.SOMAIYA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

©SIMSR CASESTUDY RESEARCH CELL
 RULES & REGULATIONS

- The responses should be submitted only through email on the following email address:

o Kurukshetra.nrs09@gmail.com

o oprachi@yahoo.com

- The responses should be submitted only in “MS Power Point” format.

- Do not exceed more than six slides.

- Slide 1 should provide information of all the three participant’s names, email ids, mobile
number & Institute / Management college name.

- No existing business / Management models E.g. Michel Porter’s five forces, BCG matrix
etc. are allowed to be used strictly. However, the team can devise their own business
model. Applying existing business models would reject the team from entering the
finals.

- Six teams would make it to the final from the large number of entries received.

WISHING YOU ALL THE BEST!!!

K.J.SOMAIYA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

©SIMSR CASESTUDY RESEARCH CELL