Prepared By

Md Ifthakharul Alam Nagendra Koirala Faisal

ABOUT OPORTO

Established in 1986

Founder- Antonio Cerqueira 

Over 140+ stores in operation in the world

Only in Australia, New Zealand, the U. K and the U .S).

COUNTRY FACTOR ANALYSIS

REASONS TO EXPAND OPORTO IN INDIA

India’s growing economy

Increase in the fast working population

Changing lifestyle and spending habits

Economic factors

Benefits:

Due to their growing economic status, purchasing powers have increase for fast-food.

Due to busy lifestyle, trend of going to favourite restaurant is increasing.

Cost:

Initial cost will be higher.

Higher competitions among other multinational fast food restaurants

Risk:

Due to frequent changing of interest rate, currency exchange rate can affect the business of Oporto.

Pressure to reduce the price of the product

LEGAL FACTORS

Benefits:

Gives them better control for Oporto over management of the organization

New Export-Import Policy provides substantial tax incentives for investments in Export.

Costs:

Many Fast food companies prefer to have their own setup in India so high competitors for Oporto.

Indian law enforcement is weak

Risk:

Frequent change of law can affect the business.

Double tax

POLITICAL FACTORS

Benefits

Stability of the government

Trade policies

Costs:

Laws of different governments and judicial systems might conflict.

Indian politics is tough and dirty

 

Risks:

Number of parties has states control with insignificant presence at national level.

SOCIAL AND CULTURAL FACTORS

Benefits:

Indian community like spicy food like spicy Bondi burger.

Chicken product is culturally accepted

Costs:

Some culture doesn’t eat chicken products.

Business that sells a lot of junk and unhealthy food and the nation is becoming more health conscious

Language barrier. 

Risks:

Racism

Vandalism

RELIGIOUS FACTOR

Benefits:

Chicken product and most of Oporto product is religiously accepted.

Majority of religion prefer chicken product and burger.

Costs:

Eating chicken is forbidden in some Hinduism

Conservative thinking about fast food restaurant.

Risks:

Franchise may not order any beef due to the lack of demand so business deficit.

Shutting down of meat restaurant on Tuesday, can attribute to high loss.

Market analysis for OPORTO in India

Market Segmentation Demographical: Basis of the income factors

Behaviour: Basis of quality, taste and price

Geographical: On the basis of areas: urban and suburban

Psychological: Influences customer buying behaviour

Target Market Strategy Targeting the youth of 15-25 years

Cities areas where people have high income and busy

Workers in the boutiques and shopping malls

Comparative advantages for OPORTO

Its unique dipping sauce concept

Spicy burgers and chickens with piripiri sauce.

Its friendly staff gives the atmosphere energy and an enthusiastic air, which makes the restaurant fun, reflecting the company’s culture and target market

OPORTO’S SWOT ANALYSIS

Strength of OPORTO:

quality of food is a key strength to

Oporto

Oporto serves the spices recipes

which suits in Indian community

Its unique dipping sauce

Weakness:

increasing price competition

driven by too many

competitors

Lack of product innovation

High employee turnover

Lack of knowledge about their

customers

Opportunity:

Targeting to growing ethnic Indian

markets

Updating restaurants

Balanced menu

Threats:

International Exchange Rates

Health Trend away from fried foods

Changing customer’s demand

Oporto’s business strategy

Global standardization

Allows Oporto to sell a standardized product worldwide with centralized control

Global customer satisfaction, lowest labour

weak pressures for local responsiveness

faster product development and coordinate activities

High competition

Lack of strong brand

ProductsBurgers

Bondi Burger

Veggie burger

Oprego burger

Wraps

Chicken wraps

Veggie wraps

Chicken

Grilled breast chicken

Grilled whole chicken

Extras

Chips

Piripiri Sauce

Industry CharacteristicsFast food restaurants provide limited table service in India.

Customers order, pay and collect their food at the counter instantly.

Food and beverages are served quickly after the order is placed.

Food and beverages may be consumed at the premises or “taken out”

Advantages of OportoOporto Business is based on a proven idea.

Oporto is a recognized brand name and trade marks.

The franchisor gives the support.

Relationship with supplier

Bank Support

Exclusive rights in the territory

Disadvantages of OportoCosts 

Restrictions 

Might go out of business

Bad reputation

Difficult to sale

FDI in India10th largest city in the world

Economy is the third largest

GDP of US $800.8 billion

GDP growth rate of 8.9%

Diverse work force

Opened FDI in the 90’s

Market PotentialInfrastructural hassles 

Indian Bureaucracy

Diverse Market

Entry Strategies and Modes

“a method of doing business by which the franchisee is granted the right to engage in offering, selling, or distributing goods or services under a marketing format which is designed

by the franchisor. The franchisor permits the franchisee to use the franchisor’s trademark, name, and advertising”

Which Type FranchiseName and process franchise

Product franchise

Why FranchiseLess Risk

Researched investment

Know how skills

Proven business method

Better Training

Brand Name

Management facility

Develop business plan

Why not Joint-venture Less risky than join-venture

Communication problem

Share the loss

Trust building problem

Political issue

“Joint venture model can be adopted in manufacturing businesses but in retail outlets or food industry the franchising is the best way to expand business” Amoha Education

Marketing Strategy

Product Piripiri Sauce

Unique packaging

Better quality

Hot and warm

Marketing Strategy (Con’t)

Place East Delhi

Quality Outlet

Drive Through

Marketing Strategy (Con’t)

PriceAus $4 for meal deal

Lunch Special

Family Deal

Marketing Strategy (Con’t)

Promotion Logo

News paper ad

Radio Ad

Billboard

Web marketing (Coupon)