Nirula’s

A study of market entry in Dubai

International Marketing(MIB)
“In the past we have had
successful operations in
Nepal and Oman. We
have plans to expand in
markets outside India by
2013 fiscal. We would
look at the SAARC
countries such as Sri
Lanka, Bangladesh,
Nepal, Pakistan and
also the Middle East,”
Sameer Kuckreja, CEO
and MD, Nirula’s
Nirula’s: An introduction
 Established in New Delhi in
1934 by Nirula brothers as
Nirula’s Corner House Pvt.
Ltd.
 Acquired in 2006 by
Malyasian Navis Capital
 Over 75 outlets in Delhi itself
 Types:
Family Restaurants
Pastry shops, ice- cream
parlors
UAE: Target Market Analysis
Government and
Politics
Foreign Relations
Culture
History
Economic
Development
Technology
Education
Competitive Market Analysis
Service

Delicious food at low

price

Market

Challenges
(Disputes with neighbor
consumer buying behavi
Competitive Offering
 Narrow down the market to Dubai
 Most of the restaurants based in Dubai, only a few come
from foreign markets; leaving the market wide open for
foreign investment
 Majority of the competing restaurants on the higher end
of the price range,
 couple restaurants with lower to middle price ranges
present
 The main competition for Nirula’s will be the
McDonalds & KFC
Mode of Entry
Franchisee Services
Contract (FSC)

payment terms:
revenue per course of
meal (RevPcm) 30%
Strategic Marketing Plan
Product Price

Core Service Reasonable

Supplement Services
Strategic Marketing Plan…cntd..
Promotion
Adv: focus on online &
print media
Message: great taste,
affordable price, and
great service
Sales promotion: discount
for bigger orders
Sponsoring Business
conferences
Contd…
Place

Presentation

People

Process
Timeline
2011 May: Enter Dubai’s market and find potential franchisee.

2011 Dec: Begin restaurent construction in Dubai and being to

promote and market the opening of the restaurants.
 
2012 March: Grand opening of the restaurants.

2013 March: Financially evaluate the performance of the hotel

and weigh the possibility of opening an another restaurant in
Dubai

2013 May: find a franchisee for the new restaurants

Survey Report
Primary as well as secondary research
Primary Research: 2 phases
Major Findings
Composition of fast food market in UAE

Texas Chicken; 6
others; 29

McDonald's; 23

Durger king; 5

Pizza-Hut; 11

KFC; 19
Domino's pizza; 7
Dietary Habits

11%
13%

vegetarian

76%
nonvegetarian

vegetarian with egg

Most likely choice in fast food joints

PEOPLE FOR BURGER

45%

other food stuff

55%
Bureger
 PEOPLE FOR PIZZAS

37% other food stuff

Pizzas

63%
PEOPLE FOR DESSERTS AND DRINKS

15%

other food stuff desserts and drinks

85%
People for Meals

23%

other food stuff

meals

77%
 Cost Comparison
Major Most Favored Fast Foods in UAE among Indians
Food
Chain
Desserts & Pizzas Burgers Sandwiche Meals Salads Chicken Pastas
Drinks s Items

Pizza Hut 5-9 Dhs 17-23 Dhs 5-12 Dhs 19 Dhs 19-85 Dhs 11- 13 Dhs 18-75 Dhs 15-40
Dhs

KFC 4-10 Dhs - 7- 15 Dhs 18 Dhs 24- 112 - 20-100 -

Dhs Dhs

DOMINO 4- 8 Dhs 12-30 Dhs - - - - - -

S

McDonald 4- 7 Dhs - 4- 18 Dhs - 12-60 Dhs - 8-35 -

s