Hang-er-ing Out?

Part of The Secret of Success In Life Is To Eat What You Like...

-Mark Twain

Hang-er-ing Out Is The New Fad!

Don't Believe Us? We Give You A Reason To! Read On!

What It Is

The Indian Food Industry has got the Economy wiggling with tiny squirts of Optimism in the form of its Immense Potential for Growth as demonstrated in its Value Addition!

The $65 Bn. Industry got swiggy with Annual Sales in Restaurant Industry hitting $783Bn.!

The Traction gained by the Online Food Ordering Business is mind boggling with the likes of Zomato, FoodPanda & Swiggy upscaling their Profit Margins & Ambitions by a multiplicity of Partnerships in the Organised Food Space.

Usher in the Era of Food Aggregators, Convenience & Value are delivered at your doorstep like never before! With dropping costs of Customer Acquisition, the competition amongst Food Brands has intensified to delivering promising value through highly efficient distribution channels with a fancier package, draped with Cashbacks & BOGOs!

We conducted a survey to understand customer insights for the same through a sample of 50 Random Customers asking them about their Food Joint Preferences & Reasons for the same.

Here is an Infographic presenting the main points we deducted as far as the survey was concerned.

Where Are The Traditional Players?

The Indian Food Industry is adapting to changing times & so is the Indian Restaurant Industry. In the times of 'Insta-Worthy-ness', we need our serve of Grub Insta-ntaneously!

About 50% of those surveyed reported to share their Food Escapades & Discoveries on Instagram Stories & Feed

Do we like waiting for food when our stomachs are rumbling with Hunger? Do we make Insta-ntaneous decisions regarding where to eat? Why do we behave the way we do? What drives our behaviour?

Consumer Profiling

With more than 50% of India's Population below the age of 25, brands that are able to strike a cord with the Youth would not only grab a greater share of the Market but generate higher call to action through acquiring Customers' 'Mindspace' & extracting through the same, a greater share of their wallets. The key is to influence them at the very junction that they spend the most time at & the ball is in Instagram's Court!

Do you know that India ranks second in the list of nations with the largest Instagram Audiences globally with a whopping 71 Million Monthly Active Users?

Of which, 67% are aged below 34!

This presents a tremendous ground for pathbreaking Marketing to be carried out as far as the Food Brands are concerned, as also the Aggregators to influence at the right place, at the right time.

What we are talking about are The Millenials.

In order to target them better, we need to delve deeper into their psyche.

So who are the Millenials?

The Millenials

Goldman Sachs discovered 57% of Millenials are Price Picky with a high incidence of Comparison across the brands basis Price. The Catch is that Quality is not compromised either!

The Millenials seek the best value for their buck & the same has been demonstrated through our analysis wherein Happy Hours, Easy On The Pocket, Cost are parameters used extensively while choosing food joints while Good Food & Hygiene remaining equivocal as parameters to convey choice decisions. The Pocket Spend Per Person per Hangout does not exceed a sum of 1000 bucks in 86% of those surveyed.

This amplifies the observation discussed above.

Another Important observation is that Millenials are Advice Seekers.

When making decisions, they seek opinions of others & trust the same more than standard brand advocacies. We observed that 70% of those surveyed made use of filters like Popularity & user generated Ratings on Food Aggregator Platforms like Zomato when deciding on food joints.

A whopping 46% made use of Zomato Reviews to decide where to eat!

Millenials are Browsers, Not Buyers. Thus the propensity of buying products that they love to look at is on the higher side & Instagram can play the cards well for any Food Brand as far as this trend is concerned.

According to a Morgan Stanley Report (April 2017)

India will have 410 Mn. Millenials by 2020 who will spend $330 Bn. Annually

What Cues Can We Take From This Trend?

In this Competitive Environment, what are the cues the analysis gives to existing players?

It has become Imperative for Brands to constantly 'Listen' to their Macro Environment to continuously evolve, develop & innovate ceaselessly in order to retain the Competitive Edge & Maintain the proverbial Points Of Differentiation! Let's See What The Trend Unfolds!

As far as our survey is concerned, the Youth of India prefers to make choices that are not only Cost-Effective but also value maximizing so as to achieve the optimum leverage on comparative price analysis & cost benefit analysis across a plethora of Food Brands!

They hang out very regularly with friends & look forward to Innovation & Experimentation which puts the Brands on guard for Poor Loyalty even amongst heavy users.

Though the Food Industry is known for repeat purchases, are the levers of Digital Media & Innovation bringing about changes in the way customers perceive products?