Fakruddin Food: Which Way to Go?

A Report On

A Case Study About

Fakruddin Food: Which Way to Go?

Introduction: Catering is a booming industry in Bangladesh and the ever so rising demand for food and more importantly differentiated food makes the industry more lucrative than before. Fakruddin was ushered by late Haji. Md. Fakruddin in the 60s and it started its journey as tiffin supplier at the canteen of Viqurunnisa Noon School. The story goes on as Haji. Fakruddin Munshi who received apprenticeship from Muslim Miah, an aspiring in the cooking for Nawabs of Murshidabad. However, Fakruddin always had the heart for the people of his country and come back to Bangladesh to make them taste, uniqueness. It is also one of the oldest and famous catering service in Bangladesh. It is maintaining its consistency until today where nowadays there are various types of products available for food lovers. Fakruddin Foods Ltd can expand their business in the foreign market due to developing a good strategy and business plan, established a beachhead team, Product readiness, establish a go to market strategy.

Goal and Objective of Fakruddin

The main goal of the Fakruddin Foods Ltd is to expand its business in the other parts of the world and the other cities in Bangladesh. It is not an easy task for the Fakruddin to expand their business, because the Fakruddin Food needs to develop product diversification to expand their market with distinctive competence. The Fakruddin Food should follow the market condition and forecast about the changes in the market, because the changes can become threats or opportunities for the business organization.

Businesses:

• Small Scale Retailing
• Cooking
• Catering

Product List:

• Kattchi Biryni
• Chicken Biryni
• Beef Tehari
• Chicken Roast
• Shahi borhani
• Shahi firni
• Jail kabab
• Mineral water
• Soft drinks

Market Development:

Fakruddin tries to develop both the domestic and foreign market for the business organization. The Fakruddin has a plan to develop its business in the top cities in Bangladesh, because the most of the cities in Bangladesh have a huge population. But the Fakruddin has only 6 branches in Bangladesh, 4 locates in Dhaka and only one in Chittagong, so the Fakruddin has only one branch outside the Dhaka. Most of the restaurant in Dhaka is in the busy place, so the people can easily take foods. But, the Fakruddin also tries to expand their food market in the different parts of the worlds like, UK, USA, UAE, KSA, Oman, Bahrain, Western Europe, Malaysia etc. In the most of the countries, a huge number of Asian people live, so the countries show a huge opportunity for the Fakruddin to expand its business in those countries. Fakruddin already has their business in Singapore, UK and Australia. The company tries to build more branches in those countries. So, there are two types of market expansion describe for the Fakruddin, which are:

1. Local Market Expansion
2. Foreign Market Expansion

Local Market Expansion:

For the local market, the Fakruddin has huge opportunities to expand its market in the every city area of the country. For example, increasing the women empowerment, provide the jobs for the women, so it is very difficult for the people to get home food. The jam in the city areas is also miserable for the people, because it may cut more than 3-4 hours of our life. So, the outside food may be the great solution for the people to get the food for dinner or lunch. But, the customer sometime found that the foods were half boiled, so the customer need quality food. The Fakruddin provides quality foods for its customer

Problems: Local Market Expansion

Fakruddin Food is one of the prominent restaurant in Bangladesh and it is the first food restaurant to expand its business in the overseas. But, the Fakruddin faced a huge problem when it wants to expand its market in the different local areas of our country, which are:

1. Competitors: In our country, there are a huge number of direct and indirect competitors of Fakruddin, so it is not a very easy idea for the Fakruddin to expand its business. Like, Local Restaurant, Fast Food shop etc.
2. Economic Condition: Most of the people who are living outside the Dhaka, the people do not want to spend more money for food. So, the quality doesn’t become a factor to choose a restaurant.
3. Culture: People who live in the Dhaka city, they celebrate many functions, like Marriage anniversary, Birthday, Corporate occasion, Break of Fasting etc. The people need catering service for different occasion to reduce their effort on kitchen. But, the Fakruddin does not have those opportunities in the outside cities.
4. Home Food: People love to eat home food and traditional Bengali food like Boiled rice, Dal, Fish, Vegetables etc. So, it is difficult for the Fakruddin to adopt the food items for the customers.

Opportunities: Local Market Expansion

• Do not have enough time to provide afford in preparing food
• Change of life style made the expectation higher
• Spending time in the kitchen or grocers is becoming unbearable
• Pre-cooked concept becomes popular
• Lack of domestic help (high wage rate of maid or “Bua”)
• People are concerned about quality food

Solution: Local Market Expansion

It is not a good decision for the Fakruddin to quite the expansion idea after seeing the problems, because every problem recovered by alternative or solution. So, the Fakruddin should focus on this part to find out a way to solve its problem.

1. STP (Segmentation, Targeting and Positioning) Method: By using the STP method, the Fakruddin find out a lucrative market to operate their business in a profitable way, because every city is not profitable for the Fakruddin food to operate its business. When the Fakruddin target a city, the company tries to build its position to capture the customer.
2. Traditional Food Item: Fakruddin should provide the traditional food item with different flavor, so the customer come again and again to taste the food.
3. Support Service: Fakruddin should provide different support service in the outside cities to promote its food quality and service quality, because most of the function has a huge number of people.
4. Local Manu: Fakruddin should also provide the local food for the people, because the people always love the local food. For example, Mezban which very famous in the Chittagong. So, the Fakruddin Branch in Chittagong should have this menu.
5. Cheap Cost: The Fakruddin should maintain the supply chain activities efficiently to low the cost of the food. If the Fakruddin charges competitively high price, it does not get enough customer.

Foreign Market Expansion

Every company wants to expand its business in the different part of the world. When the business wants to expand into the overseas, it finds different obstacles in that area. So, the business organization needs to find out the problems and develop solution and implement a way to solve the problem. The Fakruddin is the first Bangladeshi restaurant who expands its business in the foreign area that is Singapore. In the next two years, the Fakruddin wants to expand its business in the USA, UK, Dubai and Malaysia.

...