Marketing Management Case study Project

Team members

1. Mitali Boro, PGP23/29

2. Nikhil S, PGP23/033
3. Nilay Jaiswal, PGP23/034
4. Parthay Shah, PGP23/36
5. Prashant Yadav, PGP23/37

1.

Segmentation:

Customer
segmentation

Demographic Psychographic

a) Customers who eat at premium outlets

b) Customers who eat at sub premium outlets
c) Customers who eat at economy oulets
a) Students
b) working professionals (especially IT)
c) Others
a) Customers who are always looking to try new
exotic cuisines
b) Customers who try new exotic cuisines once
they become popular/ suggestion from friends
C) Customers who only eat local cuisines

Targeting: The target segments are highlighted in black. Combining all , we will get a person who is
a student or a working professional (13-35 years) who eats at sub premium outlets and is always
looking to try new exotic cuisines as our primary target segment.

Segment Basis of Segmentation Wants/needs

Customers who prefer Demographic (economic) Authentic, hygienic, healthy as well as affordable
affordable and quality food
food (sub premium)
Students Demographic (age/occupation) Fun and economical
Working professionals Demographic (age/occupation) No time to cook food at home, appetizing and
(especially IT) quickly available
Customers who readily Psychographic Exotic, new flavors, unique experience
try new cuisines
(innovators)
 Positioning:

Target Sub premium Students Professionals Innovators

Problem Healthy, hygienic and Fun time at a low cost No time to cook, eat Lack of new choices
affordable
POD Low fat content, Cheaper momos Available at Vartiety of momos,
hygienically prepared available through breakfast, lunch and company keeps on
momos at affordable Momos on wheels, dinner (all time), adding new items and
rates kiosks prepared before, only removing old items
require from the menu
heating/frying
Competition Momos-dumpling KFC, McD (low prices) Subway & other New exotic foods like
and non momos- like & road side eateries ready to eat (less Dimsums (see
Box8 including momos preparation time) reference doc)
Positioning The largest chain of The largest chain of The largest chain of The largest chain of
statement branded Momos that branded Momos that branded Momos that branded Momos that
makes healthy and provides a fun eating makes quick and makes varied and
hygienic Momos for experience for the filling Momos for the exotic Momos for the
the conscious students mostly in professionals mostly novelty seeking
customer mostly in India who wants in India who wants to customer mostly in
India who wants both excitement in an era satisfy their hunger India who are always
affordability and of increasing quickly when you looking for variety in
quality in an era of boredom have no time to eat an era of decreasing
decreasing food new food choices
quality

Our marketing strategy is based on 4Cs instead of 4Ps

i) Customer – we have different offerings for our customer segments as discussed

above. Unlike Pizzas and Burger chains, wow Momos are healthy (low fat content),
hygienic, more variety and affordable as well. A large number of individuals in
India are vegetarians, hence more vegetarian options in momos would also
expand the customer base. They should include a meal option with drinks.
ii) Cost- Currently WOW Momos follow a cost plus pricing strategy ( around 30%
commensurate of the total cost ). They should shift to a value-based pricing because
different geographies or customers visiting different store formats may have different
willingness to pay which can be found out via market research. Offering special
discounts to students (price discrimination) is also a good idea as they can bring in
more customers as well (their families too). Offering special packages for business
functions can also help in getting more customers from the professional segment.
iii) Communication: Current used communication channels are informal like word of
mouth and guerilla marketing. They should invest in formal channels of
communication like online advertising (which is cheaper than Newspapers and TV
ads). Different communication channels should be used for different segments.
iv) Convenience: Different store format should be used for targeting different segments.
For example, kiosks near corporate parks like infopark would be ideal for working
professionals as they can run down and get a quick bite. Momos on wheels would be
preferable for students because of cheaper cost. So promotions at different store
 formats should be targeted towards the ideal segment. They should also expand its
distribution channels via online food platforms like swiggy and Zomato.

2.

We would compare McD and Wow Momos on the basis of 7 parameters

i) Health: nutritious content of momos is better than that of burgers (low fat content).
The processing that happens in the preparation of momos is lesser than that of
burgers. Eating processed meat have been shown to have strong linkages with
stomach cancer. Hence momos are much better in terms of health quotient
ii) Hygiene: The hygiene at wow momos and McD is comparable. McD being a global
brand has borrowed hygienic practices from abroad and if not the same should be
higher than that of wow momos
iii) Filling: A McD aloo tikki burger has calories of 300-400 same as that of a plate of
momos, hence both are filling.
iv) Taste: WoW momos tend to use more spices which is favorable to the Indian palate
v) Affordability: Burgers from MCD is in the range of Rs. 60-200 similar to that of a plate
of wow momos, hence affordability wise both area comparable
vi) Exciting (variety, exotic): The WOW momos have a large number of versions as
compared to McD. Also, momos allow for better fusion of Indian flavors to make new
variety of momos as compared to burgers.
vii) Quickness (preparation time): Both require less time for preparation and hence score
similar on this parameter.

Wow Momos also have more store formats as compare to McD and hence can cater to
more variety of customers as compared to McD, but McD has backing of huge
institutional investors like JP Morgan and can spend a lot on advertisements and
promotions.
3. Wow Momo can specialize into a new brand of Cafes which cater to a niche market.

Cafes, Lounges and Bar, as per Exhibit 4 have a CAGR of over 25% which can be exploited
by Wow Momos.
As per market research, the consumers preferred to eat Wow Momos in the restaurant/
café rather than getting them delivered online. They were attracted to the ambience and
experience of eating fresh Momos if seating was available. This segment had developed a
liking towards Wow Momos which could be used by them for the cafes. The consumers
prefer café on the basis of ambience and fresh fusion snacks which Wow Momo could
provide. This would also help them expand from a low-cost business to cater to a niche
crowd.
The brand could cater to fusion fast food like Momo lasagna, coffee with flavors as well
as sandwich momos. The direct competition that Wow Momos could face from is Café
chains like CCD which has a market share of about 8% FY17 as well as internal
collaborations like McCafe. The product innovation of Wow Momo in this case could be in
a category which doesn’t just serve as snacks, but a full meal. Wow Momo should look
into different types of Momo Pizzas, Lasagnas, Momo Spaghetti, Momo Pasta etc. The
focus should be on the ambience and healthy food in this case rather than quick delivery.
This would help Wow Momos with the increased capital expenses as the margins in this
case would be pretty high.
Wow Momo should target the youth, constitutes majority of the consumers of QSR and
CDR. The higher purchasing power would help their cause. The target audience should be
the one which is willing to hang out with their friends in café to eat food which has
different flavors and eccentric choices. The positioning should be that of a café with a
high-end service driven chain with a good variety of food and good music. The brand
should cater to an audience who care more about the variety in food rather than costs.
(3C1P and STP)