www.domainofhope.com Nirulas Case Study A case study on Nirulas by Sushant Kumar. Contact: Email: sushant.kumar@iiml.ac.in Web: www.domainofhope.com www.domainofhope.

com A report by Sushant Kumar Page 1

www.domainofhope.com Contents Nirulas History ................................................................. ...................................................................... 3 Brand P ositioning ..................................................................... .............................................................. 3 Tagline ....... ................................................................................ ............................................................. 3 Quality Statemen t .............................................................................. .................................................... 3 Nirulas Business ......... ................................................................................ ............................................ 4 Recent Developments ............. ................................................................................ ................................ 4 Nirulas Menu ................................. ................................................................................ ......................... 4 SWOT Analysis ...................................... ................................................................................ ................. 4 Strengths .................................................. ................................................................................ .......... 4 Weaknesses ........................................................ ................................................................................ 5 Opportunities ............................................................... ....................................................................... 5 Threat s .............................................................................. .................................................................. 5 Way Ahead f or Nirulas ...................................................................... ..................................................... 5 References and further r eadings ........................................................................ ..................................... 5 Disclaimer ............................. ................................................................................ .................................. 6 www.domainofhope.com A report by Sushant Kumar Page 2

www.domainofhope.com Nirulas History Nirula s is a well-known brand in the hospitality industry. The Nirula s Family came to Delhi in 1928. The Nirula brothers began "HOTELINDIA" in 1934 at Connaug ht Place, Delhi with 12 rooms, a restaurant and a bar license. Chinese Room Re staurant and espresso coffee was first introduced in India in the 1950 s by Niru la s. In the 60 s two specialty restaurants came up- La Boheme a modern restaura nt serving Hungarian food & Gufa an Indian specialty restaurant. The company ven tured into the fast food business in 1970 s with the Pastry Shop, Snack Bar, Hot Shoppe,Potpourri restaurant (with the first Salad Bar) and Ice Cream Parlour. T oday, the production facilities in Noida, Uttar Pradesh, India include the Baker y, Confectionery, Cheese Plant, Ice cream Plant, Food Processing Unit and Hot Ki tchen. Nirula s has increased its presence in North India with the opening of re staurants in Panipat, Dehradun, Chandigarh, Lucknow, Jaipur, Meerut and Pathanko t. Its association with Indian Oil Corporation (IOCL) in 2005 has seen the openi ng of new Outlets at fuel stations in New Delhi and Chandigarh. Its tie-up with HPCL and has opened more projects in Delhi, Jaipur and Pathankot. The company pl ans to venture into a large number of quick service restaurants in every major c ity in India with an aggressive expansion strategy.

Brand Positioning Nirula s is warm, contemporary, accessible, eating place for families including children and young adults, serving the widest variety of Indian and Internationa l food, beverages and desserts, at affordable prices. Tagline its desilicious! Quality Statement Quality consciousness is the e company is responsible for duct, service and an overall ement process with long term www.domainofhope.com A report by Sushant Kumar Page 3 foundation of our business and every employee of th delivering the same in terms of good quality of pro experience.It is a measurable and continuous improv returns in terms of goodwill and revenue growth.

www.domainofhope.com Nirulas Business Hotels Pastry Shops Potpourri Nirulas Ice Cream Kiosks Pegasus Bar Family Style Restaurants

Recent Developments Navis capital bough Nirulas from its founders for Rs 90 crore in 2006 Navis Capi al has hired Deloitte for improving operations Implemented SAP at backend Facili ty upgradation Total investment of 50 crore on modernization Nirulas Menu Nirulas menu contains over 500 items to choose from

SWOT Analysis Strengths Nirulas is a strong brand. A very old name in the food and hospitality industry. A strong presence in Northern India, especially the NCR region Tie ups with IOCL and HPCL improve its reach Operational effectiveness with Deloitte as consultan t Page www.domainofhope.com A report by Sushant Kumar 4

www.domainofhope.com Weaknesses A weak brand differentiation. Wide menu with wide range of price levels. The low est being Rs 15 and the maximum Rs 4299. Lack of brand positioning rather an unc lear product positioning. Ineffective utilization of high demand outlets that re sult in long queues. Opportunities Increase in buying power of youth. Exploring markets in Haryana, Punjab, and Nor th East. Threats Aggressive players in fast food segment like KFC, Mc Donalds , Pizza Hut, Domino s with a strong product differentiation and renowned niche products such as burg er, pizza, chicken. Competition from gourmet restaurants such as Sagar Ratna, No t Just Paranthas etc. Competition in Ice cream segment from Gianis, Baskin Robbi ns etc. Competition in Caf segment from caf Coffee day, Barista. Way Ahead for Nirulas The basic problem in Nirulas case is weak product differentiation. By standing fo r quick service they have increased the number of competitors. Fast food is a hi ghly segmented industry with strong brands in every segment such as KFC for chic ken,Mc Donalds for burgers, Baskin Robbins for ice creams or Sagar ratna for gou rmet food. Hence, rather than improving network, Nirulas needs a differentiated p roduct. Being a very old brand, it has a name in the minds of north Indian peopl e and it can capitalize it differentiating its product from others. In terms of service and quality, all its competitors fair very highly. Hence differentiation is not possible. Indianization of food is again done by almost everybody, be it the Mc Aloo Tikke burger of Mc Donalds or Chicken Thali of KFC. Hence Nirulas ne eds to look into what it is best at, focus on a niche product, have a small pric e level range rather than a highly diversified menu and cater to the needs of a smaller set of people so that they identify the brand with a product. References and further readings Nirulas website - http://www.nirulas.com/ Suggest read and reference o Business T oday case study. [Suggested read] http://businesstoday.intoday.in/index.php?opti on=com_content&task=view&id=12153 &Itemid=1&issueid=73&sectionid=45&limit=1&limi tstart=0 www.domainofhope.com A report by Sushant Kumar Page 5

www.domainofhope.com Disclaimer The contents of this report are based on information generally available to the public from sources believed to be reliable. No representation is made that it i s timely, accurate or complete. I have taken due care and caution in compilation of data as this has been obtained from various sources including which it consi ders reliable and first hand. However, I do not guarantee the accuracy, adequacy or completeness of any information and it is not responsible for any errors or omissions or for the results obtained from the use of such information and espec ially states that it has no financial liability whatsoever to the subscribers / users of this report. The information herein, together with all estimates and fo recasts, can change without notice. This report does not purport to be a solicit ation of any advice pertaining to trade and business and readers are advised to consult experts or study / evaluate individual business prospectus and other rel evant legal documents before taking any decisions based on information provided in the site. I do not accept any liability whatsoever nor any responsibility for any financial consequences arising from the use of the research or information provided herein. www.domainofhope.com A report by Sushant Kumar Page 6