Ruby Tuesday Summer Internship Project

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					              Summer Internship Project Report
                            On
     “Consumer Awareness towards RubyTuesday
                            &
Customers’ Response to the Launch of Loyalty Program”
                      Undertaken At




                     A brand managed by

      RTC Restaurants India Limited
        Submitted towards the partial fulfillment of

      Post Graduate Diploma in Business Management


                       Submitted By
                    Robin Kumar Jindal
                    PGDBM 2008-2010
                      Roll No. 28098



 Submitted To:                                Submitted To:
 Mr. Vikas Pall                               N. Meenakshi
 Industry Guide                               Faculty Guide
                       CERTIFICATE OF ORIGIN

       This is to certify that Mr. Robin Kumar Jindal, a student of Post Graduate Diploma
in Business Management at NIILM-CMS has worked in the RTC Restaurants (India)
Limited, New Delhi under the guidance and supervision of Mr. Vikas Pall, General Manager-
Operations.
       The period for which he was on training was for 8 weeks, starting from 3rd May 2009
to 30th June 2009. This Summer Internship report has the requisite standard for the partial
fulfillment of the PGDBM. To the best of our knowledge, no part of this report has been
reproduced from any other report and the contents are based on original research.




Signature                                                          Signature




N. Meenakshi                                                       Robin Kumar Jindal
(Faculty Guide)                                                    (Student)




                                              2
                                DECLARATION

        This is to certify that the project report entitled “Consumer Awareness Towards
Ruby Tuesday and their response to the launch of Loyalty Program” submitted by Mr.
Robin Kumar Jindal, a student of PGDBM at NIILM-CMS, New Delhi, is a bonafide record
of work carried out by him at RTC Restaurants (India) Limited in lieu of completion of the
Summer Internship Project. All the information of confidential nature has not been disclosed
in the report.




Signature                                                 Signature




Vikas Pall                                                Robin Kumar Jindal
(Industry Guide)                                          (Management Trainee)




                                             3
                              ACKNOWLEDGEMENT

It takes immense pleasure for me to express my sincere gratitude to all the helping hands
who have guided me in the completion of this project. It was a great learning experience for
me to work on my project for two months in such a charged and highly motivated
organisation. As a student of NIILM-Centre for Management Studies, I got an opportunity
for doing my summer internship in Ruby Tuesday, a part of RTC Restaurants (India) Ltd. I
would like to thank NIILM-CMS, New Delhi, for giving me the platform to work with one of
the most renowned organizations.

I would like to express my deep gratitude to RTC Restaurants (India) Limited, for giving me
the opportunity to hone my skills and learning through a practical approach with this
Summer Internship Project. I would like to give my regards to Mr. Vikas Pall, General
Manager (Operations) who was my mentor and a continuous source of inspiration during
these two months. Without him this project could never be succeeded. His guidance and
vision helped us in exploring different ways to complete this challenging task.

I am deeply indebted to my faculty guide Mrs. N. Meenakshi, who has supported me
immensely throughout the project through discussions and by always showing me the right
course to pursue. The information and suggestions provided by her proved to be most
valuable.

I owe special thanks to all the employees at RTC Restaurants (I) Ltd, 703, Chiranjiv Towers,
43, Nehru Place, New Delhi, for their support during the training period.

Last but not the least, my effort will remain incomplete if I do not express my indebtedness to
my teachers, friends and family members for their love and blessings and whose assistance
and support are instrumental in the successful completion of this project.
                                                                        Robin Kumar Jindal
                                                                          PGDBM 2008-2010
                                                                    NIILM-CMS, New Delhi




                                               4
                                    A WORD ON
               NIILM-Centre for Management Studies

Beginning life in 1996, NIILM-CMS is scaling new heights and making rapid strides thanks
to its highest standards of academic excellence. Today, NIILM ranks among the country’s
top business schools. It’s flagship Post Graduate Diploma in Business Management
(PGDBM), approved by the All India Council for Technical Education (AICTE) and the
Human Resource Development (HRD) Ministry, Government of India, is also recognized
by the Association of Indian Universities (AIU) as per equivalent to an MBA degree.


This summer training is a part of the curriculum and it is as an interface between the
industry and the college so as to impart a deep learning to the students.


To develop a pedagogy based on learning-through-action, the institution has floated a
unique concept called Action Learning Laboratory (ALL). Using a plethora of techniques
such as role-playing, simulations, workshops and skill-building exercises, ALL helps the
students to communicate better and conduct themselves appropriately in a business
environment. Similarly, other activity-based platforms like the CEO Forum and Osmosis
seeks to increase students’ exposure to the industry and organize more interactions with top
management people.




                                               5
                            EXECUTIVE SUMMARY

This project is based on my learning and research that I underwent during my training at
Round The Clock (RTC) Restaurants (India) Ltd. It consists of the procedures involving the
collection and analysis of various information required to wholly understand the customer
awareness of Ruby Tuesday, whose master franchise in India is with RTC Restaurants (I)
Ltd, and also to assess the response of customers towards the launch of its new loyalty
program.

This project was completed using primary data, gathered directly from potential and existing
customers of Ruby Tuesday. A complete analysis of findings are compiled and classified into
appropriate sub modules. Various interesting findings from the interview of customers have
led to the culmination of this report.

The primary objective of the project is to find out the level of customer awareness of Ruby
Tuesday brand, especially in the areas nearby the Ruby Tuesday outlets, like Nehru Place,
Janakpuri, Greater Kailash- II, Saket, to name a few. Also, the project aims at gauging the
customer response to the launch of a loyalty program by Ruby Tuesday and whether it can
get converted to actual increase in footfall in the restaurant outlets.

To begin with, the research was conducted on 462 respondents on the basis of Mall-Intercept
to find out the awareness of the brand Ruby Tuesday. Out of 462 respondents, 106
respondents gave a favorable response for Ruby Tuesday. So the further research was
conducted on those 106 respondents.


Telephonic survey was conducted at the corporate office of RTC Restaurants (I) Ltd. After
the distribution of Neighborhood Loyalty Card, the customers were given a telephone call to
know the status of loyalty card and a general purpose questionnaire is filled by asking eight
questions from the targeted 139 respondents. Out of 139, those who (80) gave a positive
response to the first question (Have you dined at Ruby Tuesday?) were preceded further with
the entire questionnaire.



                                                 6
From the study and with the help of the survey I concluded that the loyalty program can be a
better mode of increasing customer loyalty, brand awareness, brand recall, brand priorities &
repeat purchase behavior.

As Loyalty programs only have a limited range, so it should be clubbed with other marketing
programs to make a more effective tool of marketing brands. Proper ground work must be
done before launching these programs so as to avoid any irregularities & wastage of time &
resources.

The project has helped me immensely to get insight into the workings and trends in the
restaurant and hospitality industry. I got to know about other restaurant brands under RTC
Restaurant (I) Ltd as well and their different USPs in the market.




                                               7
Chapter 1: Introduction………………………………....…9
          RTC Restaurants (I) Ltd……………………….…………......10
          Brands Managed by RTC……………….………………...….12
          Operations at RTC Restaurants (I) Ltd……………….............20
          Ruby Tuesday International…………………………………..26
          Ruby Tuesday Franchise……………………………………...33
          Ruby Tuesday India…………………………………………..36
          SWOT Analysis of Ruby Tuesday India……………………..39

Chapter 2: Literature Survey…………………………….40
          Introduction to Consumer Behavior……...…………………..41
          Introduction to Loyalty Programs……………………………44
          Ruby Tuesday Loyalty Program……………………………...50

Chapter 3: Research Methodology……………………….52
          Research Objectives…………………………………………53
          Research Design……………………………………………..53
          Sample Design……………………………………………….54
          Scope of the Study…………………………………………...55
          Limitations…………………………………………………....55

Chapter 4: Data Analysis and Interpretation…………...56
          Data Analysis…………………………………………………57
          Fieldwork...…………………………………………………...57
          Data Representation…………………………………………..57
          Comparative Analysis of Ruby Tuesday……………………..80
          Analysis of Customers’ Response to Loyalty Program………84

Chapter 5: Recommendations and Conclusion……….....96
          Recommendations………...…………………………………..97
          Conclusion……………………………………………………98




                               8
Bibliography………….……………………………………99
Annexure.............................................................................101
Annexure I - Consumer Awareness towards Ruby Tuesday….……..…...…..102
Annexure II - Customer’s Response to Ruby Tuesday Loyalty Program……105
Annexure III - Locations of RTC’s Outlets in Delhi & NCR…………….….106




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10
  ROUND THE CLOCK RESTAURANTS (INDIA) LTD
             AN INTRODUCTION
Round The Clock Restaurants (India) Ltd is the master franchise of Ruby Tuesday with
exclusive rights for India. Beginning from the year 2000, the company has set up fourteen
very successfully running restaurants in Delhi & NCR (national capital regions), Chandigarh,
Mumbai and Bangalore. The company has setup many more restaurants in Delhi, Mumbai,
Bangalore, Ludhiana, Kolkata and many major metros in India.


The very first restaurant in India Started in the year 2000, at Connaught Place, New Delhi In
India the company is headed by Mr. Gaurav Jain, who is the Managing Director. RTC has
employee strength of around 650.Within the last 7 years the company has spread to many
restaurants all over India.


Corporate Office-
RTC Restraunts (India) Ltd
705, Chiranjeev Towers, Nehru Place,
New Delhi – 110 0019
Tel No: 011 – 26447971-76
Fax No: 011 – 26447963
Website: www.rtcindia.co.in




                                             11
                         RTC Restaurants (I) Ltd.
                          Organisation Structure




Various Authorities & Their Designation at RTC
Mr. Gaurav Jain                          Mr. Vikas Pall
Managing Director,                       General Manager (Operations)


Mr. Deepak Talwar                        Mr. Prasoon M Tripathi
COO, RTC Restaurants (I) Ltd.            GM-HR, RTC Restaurants (I) Ltd.


Mr. Anil Rao                             Mr. Naveen Jindal
GM - Corporate Finance                   GM – Projects & Maintenance


Mr. Supender Goel                        Ms. Nidhi Kuchhal
GM – Supply Chain Management             Senior Brand Markating Manager




                                    12
Brands Managed By RTC




                    13
                        RTC




       Ruby                                  New
      Tuesday                              Concepts




                                    Mandarin Trail        World Cuisine
Food Junction     Polka Bar        (High End- Chinese       (High End
 (Food Court)      & Grill             Restaurant)      Restaurant-Chinese,
                                                          Italian & Thai




                Mandarin Express
                   (Chinese)




                 Indian Express
                 (Indian & South
                      Indian)




                Corn on the run
                 (Corn Carts) In
                    Pipeline




                                   14
Ruby Tuesday is an all Simple Fresh American Dining Restaurant chain with over 1000
restaurants worldwide and has been running successful operations since 1972. Ruby
Tuesday, a publicly owned company, traded in NYSE and is spread all over North America,
South America, Europe and Asia. Ruby Tuesday was launched in India in the year 2000, with
its first outlet in the heart of Delhi – Connaught Place. After that there was no looking back!
Today there are proudly owned restaurants in Saket, Nehru Place, GK- II, Raja Garden,
Gurgaon, Noida, Mumbai (Nariman Point, Malad, Mulund), Bengaluru and Chandigarh1.


Ruby Tuesday serves an extravagant salad bar along with its mouth-watering delights:
Platters, Fajitas, Enchiladas, Stackers, Burgers, Pastas, Sandwiches and the range of Indian
Kebabs and Curries and complimenting these delicacies is an elaborate Bar, serving a spirited
range of Ruby Classic, Frozen Specialties, Shooters, Cocktails and a large variety of Classic
and Incredible Mocktails….


The goal, at Ruby Tuesday, is to provide you with WOW!! Food and WOW!! Service in
WOW!! Surroundings. From the freshness of hand cut vegetables on its awesome salad bar
to the smiles on its server’s faces, from the time it takes to season and slow – bake our
famous “PREMIUM BABY BACK RIBS” to the last bite of our Chocolate Tall Cake, we
take care about details, about getting things right and we are committed to consistency and
quality.


Named after the Rolling Stone’s chart buster ‘Ruby Tuesday’, the spirit of 70’s permeates the
atmosphere and music at Ruby Tuesday. Dressed up in warm inviting colors, with
memorabilia like upended tiffany, style lamps, base ball and basketball legends on the wall
and evergreen rock classics setting the mood for…. The WOW Casual Dining Experience…


Come experience…. SIMPLE FRESH AMERICAN DINING!!



1
    Annexure III: Number of outlets and their locations operated by RTC in India


                                                        15
SBARRO’s roots go back to Naples, Italy where for Gennaro and Carmela SBARRO, the art
of crafting Italian cuisine was a way of life. The couple and their three sons, Mario, Joseph
and Anthony, immigrated to America in 1956 to pursue their dream of owning a successful
business in the U. S. Their SBARRO Italian Delicatessen in Brooklyn, N.Y. was well
received by the local community and was the first of what would grow to become some
1,000 SBARRO restaurants. Today, SBARRO is owned by MidOcean Partners, a premier
riveted equity firm.

The SBARRO name is synonymous with delicious Italian food that customers can count on
for quality and taste. The company’s 8,000 employees continue Gennaro and Carmela’s
tradition of providing authentic Italian dishes and flavors in SBARRO restaurants all around
the world.

Over the past five decades, SBARRO has grown into the world’s leading quick service
Italian Restaurant Company with close to 1,600 units across 47 countries. The company
offers an extensive menu of more than 200 items based on authentic Southern Italian recipes
passed down through the SBARRO family. SBARRO restaurants can be found in malls,
airports, universities, rest stops, hotels and stadiums throughout the world. For five out of six
years, SBARRO has been ranked by Entrepreneur magazine as the #1 quick service Italian
restaurants. Other brands owned by the company include Mama SBARRO and Carmela’s of
Brooklyn. SBARRO is in a joint venture under the name Boulder Creek Venture, operating
steakhouses including Boulder Creek Steakhouse, Rothmann’s Steakhouse, Sagamore
Steakhouse, Blackstone Steakhouse and Burton & Doyle.


JOINT VENTURE OF SBARRO & RTC:

SBARRO, the world’s leading quick service Italian Restaurant Company, announced on 7th
September, 2006 a joint venture with RTC Restaurants India ltd to open 100 restaurants in
India. SBARRO’s joint venture with RTC Restaurants (India) Ltd, SBARRO Restaurants



                                               16
(India) Ltd, developed and operated India’s first SBARRO restaurants in New Delhi in 2007,
with 10 units opening every year over the next 10 years. The majority of the restaurants are
located within shopping malls in major metropolitan areas such as New Delhi and Mumbai.
Earlier this year, SBARRO announced agreements to open more than 75 units in regions
across the globe, including Mexico, Egypt, Romania, Central America and The Bahamas.

According to Peter Beaudrault, president and CEO of SBARRO, the joint venture with RTC
would result in SBARRO’s largest international expansion to date and allowed to introduce
the authentic Italian food to yet another culture. Again he said that with 250 malls in
development, India presents a huge opportunity for SBARRO and efforts are underway of the
work with RTC Restaurants (I) Ltd to establish the brand in the Indian market place.

SBARRO serves fresh, traditional Italian cuisine that the cooks prepare in exhibition kitchens
while the guests relax in a casual atmosphere. Their famous pizza is only the beginning of the
SBARRO culinary adventure. They offer sumptuous entrees, pastas, salads, sandwiches, and
homemade desserts - tastes to fit every palate.

The USP of SBARRO is that it offers “PIZZA BY SLICE”. The stuffed pizza, Stromboli,
Ziti Pasta, Penne with black olives, Garlic Bread and Roasted Potatoes are some of the
extremely popular dishes available. One can also enjoy these mouth watering delights on
various occasions like: corporate parties, kitty parties, birthday parties, get together, private
functions.

SBARRO is the first restaurant in India to offer pizza by the slice and a full Italian menu.
Menu items are tailored to the religious and ethnic preferences of the Indian culture and
exclude beef products and meat-based pasta sauces. Additionally, SBARRO chefs have
created a variety of new vegetarian dishes to appeal to the largely vegetarian population.

SBARRO’s contemporary Italian design, with sleek finishes, bright lighting, and an open
kitchen is offset by cozy seating to create an environment that is interesting, lively and
comfortable. Friendly, attentive service is what makes SBARRO the perfect place for social,
business and group dining.




                                               17
Chinese cuisine is defined by carefully balanced flavors and time tested recipes that call for
minimal cooking of finest ingredients. Mandarin Trail offers a truly upscale dining
experience with an authentic oriental ambience. It relishes a gargantuan menu that comprises
of rare recipes and cuisine from far Eastern China and a well-endowed stylish live kitchen.

Mandarin Tail is truly an Authentic Chinese Cuisine fine-dine restaurant, traces its roots from
the Mandarin region of China. It has tried to capture some of the traditional cooking style
that exists in the Mandarin region of China.

Situated at 3rd Floor in The Great India Place Mall, Noida, Mandarin Trial boasts a spacious,
contemporary setting space for over 82 diners including a stylish lounge bar and live kitchen,
beautifully design by Mr. Sumit Nath. While the furniture mainly constitutes of comfortable
couches and relaxed chairs, the walls furnished with pictures to give ambience a perfect look
and the hanging lights at the lounge goes with its theme.

Such an enormous restaurant deserves a gargantuan menu to match and Mandarin Trail
certainly has this. A menu that boasts of a range of soups, starters, dim sums, and a wide
variety of mains from the vegetarian or non-vegetarian a-la-carte menu. Some of the special
dishes include silken tofu lai style, tangy eggplant with sesame seeds, crispy conjee lamb,
and sautéed prawns butter garlic. The list is endless.

Dishes such as Wok-fried noodles, seasonal vegetables, spicy garlic sauce, Wok fried
noodles with slice fish in xo sauce, sautéed prawns in lemon coriander sauce, are some of the
other tempting dishes on the menu.

The main menu is based on culinary delights from Mandarin regions of China and would
leave you spoil for choice with over 107 dishes to choose from, including a selection of
mouth watering appetizers, lamb, chicken, seafood and vegetarian dishes.




                                               18
To compliment the food, mandarin trail offers a wide array of spirits and cocktails specially
crafted by our bartender.




Polka is a bar and restaurant renowned for its culinary appeal. The food at polka is light,
contains minimal oil and apposite quantities of spices. Polka rediscovers the flavors and
attempts to preserve its essence and at the same time embellishes it with a taste of the new
trends.

The lounge exudes sophistication not only in its contemporary yet the pop art movement of
its great Roy Lichtenstein, but also its plush and soothing ambience. While the furniture
mainly constitute of comfortable couches and relaxed chairs. The bar aims to be young and
trendy.

One can both heads for the bar and make his/her presence felt over the wide array of wine
and spirits. The house DJ plays mesmerizing music that is specially created for Polka. The
tracks are spun masterfully and exclusively for the place especially for the different nights.

Polka Bar & Grill is a tribute to people who are warm, expressive and in love with life itself.
Polka symbolizes all this and much more, bringing with it an element of fun, warmth and
freedom.

Polka rediscovers the flavors with the veritable spirit of Indian and Chinese cuisine. With
signature dishes including vegetarian entrees, tandoori dishes and kebabs, the customers
palate will never be the same. Furthermore, enjoy the multi-level experience of Chinese
cuisine with Chinese dish name (description like: refined flour stuffed with ground lamb and
baked in a clay oven) Chinese dish name (description like: long-grain Basmati rice cooked
with lamb, Hyderabadi style), or Chinese dish name, flavored with aromatic herbs, to name a
few.

The Polka bar offers a selection of the finest wines & spirits, carefully handpicked by their
beverage experts. The Polka bar promises to exhilarate the customer’s senses and give a


                                               19
relaxed space to unwind with friends and colleagues. Polka is assuredly the only bar in town
offering a classic experience within the ambience of an Island bar and restaurant. The house
DJ spins mesmerizing music masterfully & exclusively for Polka patrons.

Polka has a very huge range of imported flavored sheesha. In today’s fast changing world,
Polka provides a place where people can get together for a corporate launch or chill at night
in a fun place. May it be the food, the drinks, the décor or the music, everything is unique
and truly a mix of old and the new.




                                             20
                          OPERATIONS AT
        RTC RESTAURANTS INDIA LIMITED

Restaurant Hierarchy

                                  Area Manager



                          Restaurant General Manager



                     Assistant Restaurant General Manager



                              Restaurant Manager



                          Assistant Restaurant Manager




       Shift Leader FOH                            Shift Leader BOH




            FOH                                             BOH




 SPG       Server     Bartender             Prep    Pantry        Grill   Sauté




                                       21
FOH: FOH means Front of the House. This is the team of people who happen to have direct
interaction with the customers that is why they are called people at the front of the house.


FOH is headed by a Shift Leader (FOH) and he is responsible for ensuring normal operations
at the FOH.


FOH has following types of positions
      SPG
      Server
      Bartender


BOH: BOH means Back of the House. This is the team of people who generally do not have
direct interaction with the customers that is why they are called people at the Back of the
house. Instead they co-ordinate and respond to the activities and actions of FOH team which
are in turn directed by the requests of the customers.


BOH is also headed by a Shift Leader (BOH) and he is responsible for ensuring normal
operations at the BOH.


BOH has following types of positions
      Prep
      Pantry
      Grill
      Sauté & QA




                                               22
General interaction structure among Customer-FOH-BOH




CPU: CPU is the abbreviation of Central Production Unit of the restaurants. There is one
common CPU which internally segregated to ensure supply of food & beverage items and
raw materials to all the restaurant units of north India without interfering with each others
requirements.

The Central Production Unit is headed by CDP Mr. Shirish Singh.

Few Facts about CPU Northern Region
    Located at Greater Noida, Uttar Pradesh
    Backbone of units located in and around Delhi and NCR
    Provides all supplies of raw materials- vegetables, cut meats, sauces, gravies

Main Function(s)
    To ensure uninterrupted supply of processed & raw materials for food & beverages.
    To standardize operations and products.
    To maintain consistency.
    To make the production cost effective.




                                             23
                                     Uninterrupted
                                        Supply




                                                                Standardized
           Cost Effective               CPU                     Operation &
            Production                                           Production




                                      Consistency




CPU Structure:
Just as a UPS has the role of providing regulated power supply to a computer system and
prevents it from fluctuations of external power supply, likewise the CPU ensures timely
supply of materials (food and beverages) by acting as a buffer between the market and the
restaurants.

CPU has four major sections
      Receiving
      Stores
      Pantry/Kitchen
      Shipping and Distribution




                                           24
                                            CPU




     Receiving                 Stores            Pantry/Kitchen          Shipping and
                                                                         Distribution



Receiving: The receiving section takes up requisitions sent by Restaurant Support Center for
various materials to be supplied at various units on daily basis.

Stores: This is the real warehouse of the CPU. It keeps and records all the raw materials to
be used for further preparations. The major items include various sauces, condiments, herbs,
special high glutenin flour, gravies etc. The amount of inventory to be kept is based on the
consumption pattern of last three months (3 months moving average)

Pantry/ Kitchen: Here the raw materials are processed, cooked, seasoned, garnished,
packaged, vacuumized, and sealed and transformed into a state and portions in which they
are readily consumable at the BOH of the restaurants.

The raw as well as prepared food items are classified into perishable and fast perishable
items and refrigerators and deep freezers respectively.

 Item Nature                Stored in                        Temperature Range
 Non Perishables            Cool & Dry Rooms                 (25 to 15) Degree Celsius

 Perishables                Refrigerator Rooms               (5 to 0) Degree Celsius

 Fast Perishables           Deep Freezer Rooms               (-5 to -20) Degree Celsius




                                               25
The temperatures are continuously monitored and logged by electronic thermometers. There
is also fairly good backup of heavy generators in case of power failure


Shipping
Shipping at CPU refers to all the inbound logistics. Just as the restaurants are the internal
customers of the items internally produced by the CPU, likewise CPU is the external
customer for the external supplies of raw materials.


All the raw material from those external suppliers is received at the shipping bay. It is then
compared against the set standards or measures like weight, dimensions, color, taste, smell,
lean, cut, temperature etc. In case the samples do not meet up to the standards the lot is
rejected. This becomes fairly important in case of fast perishable items like meat and milk
products.


 Item                         Provider                          Source Country

 Cheese                       Amul                              India

 Chicken                      Venky’s                           India

 Pork Ribs                    Not Disclosed                     Brazil



Distribution
Distribution at CPU refers to all the outbound logistics to the restaurants. The Receipt section
forwards the list of all the items to store and pantry, for which the request had arrived from
the RSC. They transport the materials to distribution section, internally after making the
necessary entries. The distribution section loads those items into transport vehicles /
Refrigerated Trucks and they are then dispatched from CPU for delivery at the restaurants.
All supplies are transported in refrigerated vans to units at night after operations are over.




                                               26
INTERNATIONAL




      27
Brief History
The first restaurant was founded in 1972 by five University of Tennessee students, and is
now headquartered in Maryville, Tennessee. The first location was adjacent to UT's
Knoxville campus on Twentieth Avenue near Cumberland Avenue. The building still stands,
but it is now occupied by a bar called the Roaming Gnome, next door to Stefano's Pizza, on
the corner of Cumberland, both of which are local institutions in their own right.

In April 1982, Ruby Tuesday became part of the Specialty Restaurant Division of Morrison,
Inc. The merger provided the chain with additional financial support to continue its growth.

In March 1996, the shareholders of Morrison's approved a distribution and divided Morrison
Restaurants, Inc. into three separate companies: Ruby Tuesday, Inc. (RTI); Morrison Health
Care, Inc., (subsequently purchased by Compass Group); and Morrison's Fresh Cooking,
Inc., (now owned by Piccadilly). Ruby Tuesday, Inc., therefore, is the successor of Morrison
Restaurants, Inc. and is now one of America's largest casual dining companies. At the time of
the distribution, Ruby Tuesday, Inc. operated many other restaurant brands in addition to
their flagship Ruby Tuesday brand, including L&N Seafood Grill, Silver Spoon Cafe,
Mozzarella's Cafe, The American Cafe, and Tia's Tex-Mex.

In the summer of 1998, Ruby Tuesday relocated its Restaurant Support Center from Mobile,
Alabama to Maryville, Tennessee, where the company built an on-site training facility,
WOW-U, in addition to a lodging and dining facility, RT Lodge. These facilities are used
daily as a training and development center for the Company's restaurant managers.

In November 2000, Ruby Tuesday completed the sale of The American Cafe, Silver Spoon,
L&N Seafood, and Tia's Tex-Mex restaurants to Specialty Restaurant Group, LLC. This
divestiture allowed Ruby Tuesday to concentrate exclusively on the growth and development
of its flagship brand.

Many of the locations in the Midwestern and Northern US can be found in mall locations,
while many of the Southern stores, such as those in Kentucky and Tennessee, are stand-alone
stores.


                                              28
On April 12, 2007, the Ruby Tuesday, Inc. changed its NYSE ticker symbol from RI to RT.

In August 2007, Ruby Tuesday acquired a local self-serve Fresh Asian Dining Restaurant,
Wok Hay. In October 2008, a second location was opened in a recently converted Ruby
Tuesday restaurant building.


Size and expanse of chain

Currently, Ruby Tuesday, Inc. has Company-owned and/or franchise Ruby Tuesday brand
restaurants in 44 states, the District of Columbia, Puerto Rico, Guam and 13 foreign
countries. As of 5 June 2007, the Company owned and operated 680 Ruby Tuesday
restaurants, while domestic and international franchisees (including Hawaii, Mexico and
India) operated 199 and 54 restaurants, respectively. In February 2008, the 1st branch in the
Philippines opened in TriNoma. Ruby Tuesday, Inc. is traded on the New York Stock
Exchange (Symbol: RT).


No more "Bar-and-Grill"
In 2007, the Company began re-branding itself, moving out of the "bar-and-grill" segment of
the industry, with changes including higher-quality menu items and handcrafted beverages.

As a part of re-branding, the company began remodeling its restaurants as a part of "a three
year plan to reposition, reinvent and reinvigorate the Ruby Tuesday brand". Ruby Tuesday
CEO and Chairman Sandy Beall explains the re-branding in his letter to shareholders, found
in the company's FY2007 Annual Report:

Elevating Ruby Tuesday above the crowd to a memorable, high-quality dining experience is
critical to our growth and success. ... We began by bringing our guests fresh, exciting new
menu choices, then raised our standards of service, and are now creating an innovative new
look and style for each and every restaurant. This revitalization will appeal to our loyal core
guests while attracting a new generation of consumers.




                                              29
"Implosion"
In August 2008, Ruby Tuesday created a campaign to show how radical these changes would
be. On August 5, over "live" streaming internet video, a demolition crew was supposed to
implode the final "old Ruby Tuesday" in where they said was Mount Holly, Ohio but was
actually in Harriman, Tennessee, to show their commitment of change in front of a small
crowd. However, to the crowd's shock, the restaurant next door called "Cheeky's Bar and
Grill" (which looked like any other casual dining chain) was imploded. After the events, the
senior VP of marketing for Ruby Tuesday (in actuality, an actor) posted a formal apology
and a video of said apology on the Ruby Tuesday website and on TV. The idea was merely
an elaborate marketing ploy to raise attention to the newly remodeled restaurants. In
actuality, the implosion was a miniature done by a Hollywood special effects crew, and then
edited into the footage of the pre-recorded webcast to make it look like an accident.




                                              30
Story
"Ruby Tuesday" is a song recorded by The Rolling Stones in 1966, released in January
1967. The song was a number-one hit in the US and a number three in the UK.


              "Ruby Tuesday"                                "Ruby Tuesday"




           Single by The Rolling Stones                 Single by The Rolling Stones

      from the album ”Between the Buttons”               from the album Flashpoint




Over 30 years ago, a young man named Sandy
Beall called together four college buddies from the
University of Tennessee and hatched an idea that
would become one of America's favorite casual
dining restaurants.                                                  Sandy Beall, Chairman,
                                                                         Ruby Tuesday




Ruby Tuesday is driven by uncompromising freshness and quality, gracious hospitality and a
growing list of Five-Star restaurants destined to be the envy of the casual dining business.




                                              31
At Ruby Tuesday, we're fully committed to preparing and serving food of uncompromising
freshness and quality - with signature choices like our premium Handcrafted Burgers and our
bountiful, Fresh Garden Bar - and we're grateful that our restaurants are made possible by
passionate employees who make it their business to delight each and every guest with an
excellent dining experience. From our ongoing efforts to bring you the best menu in casual
dining and the best Handcrafted Burgers anywhere, to the gracious smiles and genuine
hospitality that greet you at our doors, Ruby Tuesday wants to make our Simple Fresh
American Dining your favorite dining anywhere.


Mission
Quality. Passion. Pride.

Quality means freshness. It's fresh 100% USDA Choice or Prime ground beef formed into
perfectly grilled, Handcrafted Burgers that redefine an American classic. Quality is seasonal
vine ripened tomatoes and crisp leaf lettuce still glistening with garden dew. It’s applewood
smoked bacon and premium cheeses and an uncompromising commitment to providing you
the best.

Passion is people. People who love what they do and take your enjoyment personally.
Passion is what to expect from the people who take your order, the people who craft your
meal (and peek out from the kitchen to see your delight) and the people who are designing
our comfortable, stylish Five-Star restaurants that are destinations in themselves. Everyone
you meet here is happy you've come, and they're genuinely dedicated to having you visit with
us frequently.

Pride makes us a family. This is our home. You are our guest. And we will attend to your
dining experience with a degree of care and attention to detail unrivaled anywhere. A deep
desire to serve others is the secret weapon of a gracious host. And it's why, at Ruby Tuesday,
we want you to always leave with a smile.




                                             32
This trio of "non-negotiable" sets Ruby Tuesday apart. They fuel us, bind us and compel us.
They are the tools of a business culture comprised of talented, committed individuals focused
on the same thing: consistently delighting our Guests.

A primary goal of Ruby Tuesday is to find and select investors who are seeking a
powerhouse franchising investment. We are looking for proven business people who share
our values of quality, passion and pride and can translate these values into success.

In the next five years, Ruby Tuesday is anticipating rapid growth and high returns. By
joining the franchise family now you will open the door to a passionate culture that yields
sweet returns.


Locations around the World
Our quality, passion and pride won't be hard for you to find
Canada                        Chile
Egypt                         Guam
Greece                        Hawaii
Hondura                       Hong Kong
Iceland                       India
Kuwait                        Puerto Rico
Romania                       Saudi Arabia
Trinidad




                                              33
Ruby Tuesday Franchise
The franchise philosophy at Ruby Tuesday is to leverage the strength of the proven, casual
dining restaurant2 and culture to deliver a lower risk, solid return offering to select
investment partners.

Since beginning the franchise program in 1997, they have created a franchise structure that
not only attracts qualified franchisees to Ruby Tuesday, but supports them in strategic ways
that allow them to make solid returns on their investment.

They must be doing something right. They have signed agreements for the development of
new franchised Ruby Tuesday restaurants with 46 franchisees throughout the United States
and in 16 foreign countries. Ruby Tuesday believes that the goals and objectives they share
with their franchisees can be achieved when they share a common vision and both possess
the necessary experience and financial strength.

Joining the Ruby Tuesday franchise family will open the door to an exciting future. Since
1972, they have set the highest standards in culinary excellence and restaurant innovations.
Ruby Tuesday have positioned them as a leader in restaurant technology, have been
recognized for their commitment to and the effectiveness of ongoing training, and achieved
the highest level of operational expertise. Franchise opportunities are now available for
interested investors and potential restaurant franchisees in many areas of the world, both
internationally and domestically.


Franchise Profile
     Multiple restaurant and/or hospitality experience
     Solid financial backing
     Successful business experience in the desired market
     Time and development commitment
     Aligned goals and values with Ruby Tuesday
     A passion to successfully operate a proven brand

2
  A casual dining restaurant is a restaurant that serves moderately-priced food in a casual atmosphere. Except
for buffet-style restaurants, casual dining restaurants typically provide table service.


                                                       34
Ruby Tuesday knows what it takes to build and sustain a successful business.
Their franchise support team has many years of restaurant experience that they share with
franchisees during every phase of development - from inception, to restaurant establishment
and ongoing operations.


Ruby Tuesday believes in One Brand, One Standard and One System. To maintain and
protect the Ruby Tuesday brand, the same tools, processes and procedures that have created
the successful brand are leveraged across the franchise family. Services include
owner/operator training, real estate assistance, facility design, management training, new
restaurant opening procedures and ongoing operational support. The Ruby Tuesday Support
Team Covers All the Bases.


Real Estate Development
The Real Estate department provides guidance to franchisees on matters related to real estate,
development and the design and construction of restaurants. At Ruby Tuesday, the selection
of real estate is so important that their Founder and/or Vice President of Real Estate visits
and approves every location that is built in the United States. In addition, they provide
assistance in the design and construction of restaurants based upon their innovative building
prototypes.


Operations Support
Ruby Tuesday accepts only the best franchise operators. To support their efforts, they
provide Vice President-level support, communication and consultation for every franchisee.
They work with their franchise community to develop strategies for building sales,
optimizing profits and ensuring the strategic development of the market.


Marketing
The Marketing department makes certain that the Ruby Tuesday brand stays top of mind with
Guests from coast to coast. In addition, building brand awareness and spending over $75
million in nationwide advertising, the Marketing department also provides local restaurant
marketing materials and support materials designed specifically for the franchise community.


                                             35
World-Class Culinary Department
By leveraging their over 900+ restaurants and 35+ years of menu research and development
experience for the brand, the restaurant operators can be assured that every menu item will
meet or exceed the Guests' expectations as part of an incredible dining experience.


Every menu update and promotional item is introduced to the restaurants by seasoned,
trained operators. Complete roll out manuals and materials are created to ensure smooth
implementation of every menu item.


World-Class Information Technology Department
Ruby Tuesday's Information Technology Department has created the tools necessary to
provide real-time access to virtually any information one needs to successfully manage their
business anywhere in the world. From downloading pricing to ones Point of Sale systems, to
creating proprietary tools that improve Guest satisfaction and ones bottom line, like KDS
(Kitchen Display System), BDS (Bar Display System) and their legendary BOSS (Back
Office Store System), the IT Department provides you with the real-time operational reports
and statistical information one needs to maximize success.




                                             36
Ruby Tuesday INDIA
Ruby Tuesday began operations in India in the year 2000. RTC Restaurants (India) Ltd is
the master franchisee with exclusive rights for India. Since its inception in India, 14 very
successful restaurants have become operational and many more are planned in all the major
cities nationwide.


The very first restaurant in India Started in the year 2000, at Connaught Place, New Delhi In
India the company is headed by Mr. Gaurav Jain, who is the Managing Director. RTC has
employee strength of around 650.Within the last 7 years the company has spread to 14 outlets
all over India.


Ruby Tuesday is driven by uncompromising freshness and quality, gracious hospitality and a
growing list of Five-Star restaurants destined to be the envy of the casual dining business.




                                              37
Food & Drinks




 Chicken Fresco

                                  Chocolate Tall Cake




                  Combo - Minis




Premium Baby Back Ribs


                      38
SWOT Analysis of Ruby Tuesday India
INTERNAL ENVIRONMENT
  Strength:
    “Tex-Mex” (short for Texas-Mexican) cuisine, its USP.
    High class services - quality, ambience, and music.
    A blend of international standards with an Indian touch.
    It adheres to Ruby Tuesday International standards, which includes all aspects
      of menus, clothes, ambience, music, etc.
    Ability to import high quality international non perishable raw materials like
      flour, sauces, etc.
    Biggest variety in the bar menu in its class of restaurants.
  Weakness:
    Lack of advertising through the visual media and promotional activities.
    Lower number of outlets as compared to its competitors.
    Highly priced items as compared to its competitors like TGIF, Geoffrey’s.


EXTERNAL ENVIRONMENT
  Opportunity:
    Fast growing market of the restaurant business.
    Lack of competitors in the fine dining market.
    Abolition of Fringe Benefit Tax (FBT) and Commodity Transaction Tax
      (CTT).
    Huge untapped market constituting of the neo rich Indian middle class.
  Threat:
    Lesser brand awareness in the market.
    Stiff competition from the lower priced restaurants like McDonalds, KFC, etc.
    High rate of attrition in the industry.




                                        39
40
Introduction to Consumer Behavior
Who is a consumer – Traditionally consumer have been defined very strictly in terms of
economic goods & services i.e., where a monetary transaction is involved. However, this
concept has been widened to include goods & services where monetary exchange is not
involved.

Example: the services of a voluntary organization have been included in this definition &
users of the service of this organization are also viewed as consumers.

So a consumer is one who actually purchases a product or services from a particular
organization or shop. However, the customer is an individual, for wider term that
includes not only the actual buyer or customer but also all its users.

The term consumer behavior is defined as the behavior that consumers display in
searching for, purchasing, using, evaluating and disposing of products and services that
they expect will satisfy their needs.


Consumer Awareness
The study of consumer awareness is the study of how individuals make aware to take
decisions and to send their available resources i.e., time money and efforts on
consumption related items. It includes the study of what they buy, when they buy it,
where they buy it, how often they buy it and how often they use it.


Take the simple product toothpaste consumer resources want to know what type of
toothpaste consumer buy (gel, regular, striped in a tube, with a pump); which brand
(national brand, private brand, generic brand), why they buy it (to prevent cavities, to
remove strains, to brighten or whiten teeth); where they buy it (in a super-market, drug
store, convenience store) etc.


The term Consumer Behavior describes two different kinds of consuming entities: the
personal consumers and the organizational consumers.



                                             41
                                            CONSUMER




      PERSONAL                                                           ORGANISATIONAL




The personal consumer buys goods                          The second category of consumers-
and services for his or her own use                       the       orgainsational          consumers-
(for e.g. Shaving cream, shampoo),                        encompasses for profit and not-for-
for the use of household (a V.C.R.),                      profit       businesses,          government
or as a gift for a friend (a book).                       agencies (local, state, and national),
                                                          and      institutions       (e.g.,      schools,
                                                          hospitals, and prisons) all of which
                                                          must buy products, equipment &
                                                          services      in order to             run   their
                                                          organisation.

Note: - The whole study of my project is based on personal consumer because
consumer buys goods & services for their own use or consumption.


Customer Values, Attitude and Life-Style
Customer value is defined as the ratio between the customers’ perceived benefits
(economic, functional and psychological) and the resources (monetary, time, effort,
psychological) used to obtain those benefits3. Perceived value is relative and subjective.
For example, diners at Ruby Tuesday, where meal with beverages may be very
expensive, may expect unique and delicious food, immaculate service, and beautiful
3
    Leon G. Schiffman & Leslie Lazar Kanuk- Consumer Behavior, 8th Edition, Pearson Education


                                                   42
décor. Some diners may receive even more than they had expected and will leave the
restaurant feeling that the experience was worth the money and other resources expended
(such as a month-long wait for a reservation). Other diners may go with expectations so
high that they leave the restaurant disappointed.


Consumer’s attitude toward a product or specific brands off a product is a function of
the presence (or absence) and evaluation of certain product-specific beliefs and/or
attributes. In other words, consumers generally have favorable attitudes toward those
brands that they believe have an adequate level of attributes that they evaluate as positive,
and they have unfavorable attitudes toward those brands they feel do not have an
adequate level of desired attributes or have too many negative or undesired attributes.


Conducting consumer attitude research with children, especially gauging their attitudes
toward products and brands is an ongoing challenge. What is needed are new and
effective measurement approaches that allow children to express their attitudes toward
brands. To this end, researchers have labored to develop an especially simple and short
attitude measurement instrument of questioning children between 8 and 12 years of age.




                                             43
INTRODUCTION TO LOYALTY PROGRAMS
Loyalty programs are structured marketing efforts that reward, and therefore encourage,
loyal buying behavior — behavior which is potentially of benefit to the firm.


In marketing generally and in retailing more specifically, a loyalty card, rewards card,
point’s card, advantage card, or club card is a plastic or paper card, visually similar to
a credit card or debit card, that identifies the card holder as a member in a loyalty
program. Loyalty cards are a system of the loyalty business model. In the United
Kingdom it is typically called a loyalty card, in Canada a rewards card or a points card,
and in the United States either a discount card, a club card or a rewards card. Cards
typically have a barcode or magnetic strip that can be easily scanned, and some are even
chip cards. Small key ring cards (also known as key tags) which serve as key fobs are
often used for convenience in carrying and ease of access.


A retail establishment or a retail group may issue a loyalty card to a consumer who can
then use it as a form of identification when dealing with that retailer. By presenting the
card, the purchaser is typically entitled to either a discount on the current purchase, or an
allotment of points that can be used for future purchases. Hence, the card is the visible
means of implementing a type of what economists call a two-part tariff.


The card issuer requests or requires customers seeking the issuance of a loyalty card to
provide a usually minimal amount of identifying or demographic data, such as name and
address. Application forms usually entail agreements by the store concerning customer
privacy, typically non-disclosure (by the store) of non-aggregate data about customers.


The store, one might expect, uses aggregate data internally (and sometimes externally) as
part of its marketing research. These cards can be used to determine, for example, a given
customer's favorite brand of beer, or whether she is a vegetarian.


Where a customer has provided sufficient identifying information, the loyalty card may
also be used to access such information to expedite verification during receipt of cheques


                                             44
or dispensing of medical prescription preparations, or for other membership privileges
(e.g., access to a club lounge in airports, using a frequent flyer card).


Loyalty programs
Loyalty programs have been around seemingly forever (Sperry and Hutchinson Co.
launched “Green Stamps” in 1896!). Yet restaurants lack far behind other service
industries with high competition and buyer frequency — like grocery stores, hotels, and
airlines.


Why is it the case that so few restaurants offer loyalty programs? According to Direct
Magazine, it’s often due to the cost and complexity of implementing a program and
system. Sometimes too, it’s the feeling by a restaurant owner that a loyalty program is
just a glorified coupon program –
“The purpose of a loyalty program is not points or rewards or plastic cards or discounts.
These are just means to an end. It’s rather to discover who the restaurant’s customers are,
and to track their behavior, find out their preferences, cater to those preferences and keep
two-way communication going. The result should be an ever-stronger relationship with
customers that increases frequency, per-check revenue, marketing efficiency and
competitive advantage.”


The battle for restaurant patrons can be fierce and ruthless if not downright bloody.
Restaurants are high frequency markets with cutthroat competition. This makes them an
ideal business for loyalty programs. So why don't more restaurants use them?


One problem is that many restaurant owners have severe misconceptions about their
value and cost. They think the loyalty program is too expensive, won't work, or is too
much hassle to administer. The key to a successful loyalty program depends on
understanding how it really works and what it can and cannot do.


The purpose of a restaurant's loyalty program is to increase order frequency and spending
from your most loyal customers. The first thing to realize is that unless you are a


                                              45
McDonalds or a Dominos, your most loyal customers return for your food, not your
prices. Price driven customers will visit you only when they can get a deal. They will
follow the coupons, not their taste buds.


Price driven customers may be frequent customers, but only as long as your price is right.
Your loyalty program is not going to entice cheapskates away from low end eateries to
your door. Instead, it will make loyal customers feel special. This in turn will encourage
them to come back more often and to spend more at your restaurant.


Who are your most loyal customers?
Most restaurant owners believe that about 60% of their customers are frequent buyers.
This is not the case. Analysis of over a million credit card transactions show that about 15
percent of your customers purchase from you frequently. On the other hand, the small
number of loyal customers account for a third of your revenues.


This small group is who your loyalty program should target. The goal is to encourage this
small loyal following to come back more often and spend more money when they do.


How to achieve the goal?
To work correctly, the loyalty program has to meet some very specific conditions. One of
the more significant findings of previous researches shows that as people make progress
towards a loyalty program goal, their efforts to achieve the goal increase. That is, the
closer customers are towards receiving their loyalty reward, the more frequently they
purchase from the restaurant.


That's the driving force which makes a loyalty program possible. Researchers have also
discovered that when progress is measured by points rather than total rupees spent,
customers will try harder to reach the program goal. And finally, it was also learned that
customers are more likely to actively participate in the loyalty program if they are given a
reason for doing so, even if it is as spurious as:




                                              46
"Thank you for signing up for our online ordering service. As a token of our appreciation
we invite you to take part in our Online Pizza Points reward program."


What Not To Reward?
The biggest mistake a restaurant owner can make when selecting a loyalty reward is to
offer some sort of discount. The most loyal customers are there for the food, so it is better
to reward them with something tasty, imaginative and above all, edible.


Loyal customers don't care about discounts, they care about food. There are plenty of
ways to deal with bargain hunters, but the loyalty program should not be one of them.
Ideally, there should be a number of tasty, enticing and savory rewards to please a variety
of palates. Research has also found that the value of the reward is not a primary factor.


It is far more important that the reward be intrinsically desirable to the customer. You can
be creative with the rewards. For example, to offer sample combos of some of the more
popular entrees. Not only does this seem very special to the customer, but may lead to
future purchases of the item since it lets the customer try before they buy.


The loyalty program achieves its goal by inviting each customer to participate, providing
a selection of rewards for the participants to choose from and by awarding a point to each
participant when they place an order. Each participant is kept advised of his or her
progress and when they have accumulated enough points, they can trade them in for their
reward.


Does this sound simple and obvious? You bet it does.
Does it work? Yes indeed.
It is critical that customers know their progress towards reaching the program goal. With
an online loyalty program this is done automatically. Every time a customer signs in to
their account, they see their loyalty program points.




                                             47
With paper or card based programs, they should see a punch card or some tangible
evidence of their progress.


The results of a loyalty program are measurable. Loyalty programs are long term
investments, but when properly implemented, they are well worth your time and effort.


Working
Statistics show that customers belonging to a loyalty program visit a business, on
average, twice as often, and spend four times as much money.




                                          48
It is five to seven times more expensive to find a new customer than to retain an existing
one. This means that every rupee spent on marketing to an existing customer will return
5x more profit than the same dollar on new customers.


With numbers like that, it is critical that the marketing to existing customers is as
effective as possible. Past results, have shown that our cards enjoy a 22% better response
rate over other direct mail campaigns.


The power of the data base comes into play with extensive business reporting.
Members information like sign ups by month, sales year to date and sales by month are
provided. Also the top percentage of customers by dollar spent amount and by visit
frequency keeps you informed about progress.


Quick reports, daily reports, monthly and quarterly reporting keeps you fully informed
about how your customer relationship system is meeting your short and long range goals
for the business.


In this age of “drive-by Internet reviews“, a properly designed loyalty program that
couples an in-store component with an online component can even help reduce the
feeling of increasingly anonymous user-generated drive-by reviews, by building
engagement and conversation between the restaurant and the diner.


Loyalty programs in India
I-mint is India's largest coalition loyalty program, with approximately 5 million members.
BPCL's PetroBonus is a pioneering program and also one of the largest in the country
with about 2 million members for the fuel card program. It also has variants for fleets and
convenience store customers. Likewise IOC's Fleet Card Program XTRAPOWER has
recently crossed 1 million mark. IOC has launched a loyalty program XTRAREWARDS
for Retail Customers. The Maruti Suzuki AutoCard, launched in association with
Citibank and Indian Oil had 370,000 cardholders as at October 2008.




                                            49
RUBY TUESDAY LOYALTY PROGRAM
Neighborhood Advantage Program


Basic objective of Launch of Neighborhood Advantage Program is to increase the sales at
the Outlets (Units) of Ruby Tuesday (RTC Restaurants) and related restaurants.


The reason for the launch of this loyalty card is to create awareness about the restaurants
and inform people about the various benefits which they can have by dining there. The
raise in sales is being expected by increasing the amount of footfall due to grown interest
and awareness about the restaurants and the associated paybacks.




This program is for all guests who reside in close proximity to various RTC restaurants.
This is a “Free Benefits Card” specially designed for discerning neighbors who dine out
regularly.


As a neighborhood advantage club member, one can avail the benefits and privileges at
Ruby Tuesday, Sbarro, Mandarin Trail and Polka outlets across India. As a
neighborhood Advantage Card holder one can avail al of the benefits listed below:



                                            50
        This card is Free of Charge
        Discount benefits are applicable at all Ruby Tuesday, Sbarro, Mandarin Trail
         & Polka outlets across India.
        One can collect Loyalty Points every time one dine with these mentioned
         restaurants and the points can later be redeemed for free meals


Benefits at Ruby Tuesday, Sbarro, Mandarin Trail & Polka
                                         Discount             Loyalty Points on
                                                              every Rs 100/- spent
Ruby Tuesday                             15%                         10
Sbarro                                   10%                         10
Mandarin Trail                           15%                         10
Polka                                    10%                         10


Loyalty points are provided on net amount after discount, excluding applicable taxes and
service charge
For example: if your order amount at Ruby Tuesday is Rs 2000/-, you get discount of Rs
300/-. You earn loyalty points on balance amount of Rs 1700/-, i.e. 170 points that can be
redeemed later. This way you save Rs 470 on your visit with this card.


Minimum points required for redemption at different restaurants are:
Ruby Tuesday                   500 Points
Sbarro                         250 Points
Mandarin Trail                 500 Points
Polka                          250 Points




                                               51
     “Consumer Awareness towards Ruby Tuesday
                        &
Consumer Response to the Launch of Loyalty Program”




                        52
RESEARCH OBJECTIVES
    Assess the customer awareness of Ruby Tuesday brand.
    Know the customer preferences while visiting Ruby Tuesday.
    Understanding the values, attitude and life-style of RubyTuesday customers.
    Response to the launch of the loyalty program.
    Suggest plans and recommendations to garner higher footfalls into RubTuesday
       outlets.


RESEARCH DESIGN
Type of Research:
The research was a combination of both Descriptive and Qualitative type of research.
Descriptive Research includes surveys & fact-finding enquiries of different kinds. Its
major purpose is to describe the state of affairs as it exists at present & the researcher has
no control over the variables. It includes attempts by researchers to discover causes even
they cannot control variables.


Qualitative research, on the other hand, is concerned with qualitative phenomenon, i.e.
phenomena relating to or involving quality or kind. Qualitative research is especially
important in the behavioral sciences where the aim is to discover the underlying motives
of human behavior.


As the data used is collected through questionnaires & it deals with attitudes and behavior
of peoples which comes under descriptive & qualitative type of research. Questionnaires
were used to do the research.




                                             53
SAMPLE DESIGN
Sampling may be defined as the selection of some part of an aggregate or totality on the
basis of which a judgment or inference about the aggregate or totality is made. It is the
process of obtaining information about an entire population by examining only a part of it
in which generalizations or influences are drawn based on the samples about the
parameters of population from which the samples are taken.


Simple Random Sampling is used in analyzing consumer behavior and perception.
Initially the questionnaire4 was administered to 462 respondents, randomly selected by
mall intercepts, and further research was conducted on those respondents who were
aware of Ruby Tuesday. It was found that only 106 respondents were aware of Ruby
Tuesday.


For the purpose of analyzing the customers’ response to the launch of loyalty program5,
telephonic survey method was used. The respondents were chosen randomly who were
situated in the closed proximity of Ruby Tuesday outlets. The phone numbers were taken
from the RWA Directory of GK-I, GK-II, Mandakani & Nilgiri Appartments, Saket etc.
A total of 129 respondents were given a phone call and further survey was conducted
who had visited Ruby Tuesday at least once. It was found that 80 respondents out of 129
have visited Ruby Tuesday.


Sample size: 106. (Mall Intercepts)
Sample size: 80 (Telephonic Survey)


Sample location: close proximity of Ruby Tuesday restaurant outlets in New Delhi.




4
    Annexure I: Consumer Awareness towards RubyTuesday.
5
    Annexure II: RubyTuesday Loyalty Program


                                                54
SCOPE OF STUDY
The research was carried out to know the customer behavior and perception of customers
about Ruby Tuesday. The main motive was to find:
    Attitude of the customer.
    General perception of the customer about the products and services offered by
       Ruby Tuesday.
    How did they come to know about Ruby Tuesday?
    Experiences while dining in Ruby Tuesday.
    Suggestions and scope of improvement for brand Ruby Tuesday.


This data is very important for Ruby Tuesday in order to know the customers’ preference
and thus help in increasing the Number of Transactions.



LIMITATIONS
1) TIME
During the internship, time was the main constraint. It was only 2 months, and it was not
possible to access the response of customers who have taken the neighborhood advantage
card. Due to this we were not able to take more samples and hence the sample size has to
be restrained.


2) VAST AREA OF STUDY
Due to time constraint we are unable to meet the potential customers in Noida and
Gurgaon and hence were unable to get the customer feedback of neighborhood advantage
card from these two regions of NCR.




                                           55
56
DATA ANALYSIS
Based on what the various respondents’ opinion, the data collected was analyzed using
figures. No rigorous mathematical analysis could be done. All estimations are solely on
judgment. For questions percentage was calculated and represented in the form of charts.


After representing the data in the form of charts the same were interpreted to get in-depth
knowledge about the problem as well as general information, which helped the researcher
to come at appropriate conclusions about the study and to give relevant
recommendations.


FIELD WORK
The survey was conducted for 25 days in New Delhi. Some major places where survey
was conducted are Nehru place, Janak Puri, Greater Kailash-II and Saket.




Data Representation
To represent the data collected through mall-intercepts and telephonic survey, I used
some graphical charts, tables and statistical tools.




                                              57
                           TABLE NO. 1

       ABOUT THE VISITING PATTERN OF RESPONDENTS


Respondent Category            Frequency                 Percentage
Once a Year                           20                       19%

Once a Month                          27                       25%

Once a Week                           7                         7%

Twice a Year                          11                       10%

Twice a Month                         26                       25%

Twice a Week                          9                         8%

Can’t Say                             6                         6%



Objective
Here the underlying objective was to know the dinning pattern of
respondents. It may help in targeting those customers who can make more
numbers of transactions.


Interpretation
It is evident from the above table that about 19% of the respondent goes out
for dinning once a year, 25% goes out once a month and 7% goes out for
once a week. It is also clear that about 10% of the respondents go out for
dinning twice a year, 25% goes out twice a month and 8% goes twice a
week. About 6% of the respondents are not sure about their dinning pattern.


                                     58
  ABOUT THE DINNING PATTERN OF CUSTOMERS



                  6%
       8%                   19%

                                        Once a week
                                        Once a month
                                        Once a year
                                        Twice a week
                                        Twice a month
                                        Twice a year
25%
                                        Cant Say




                                  25%



            10%
                       7%




                       59
                          TABLE NO. 2

                 ABOUT THE AGE OF THE CUSTOMERS


Respondent Category           Frequency               Percentage


Below 18 years                      5                       5%


18 to 30 years                      43                      40%


30 to 45 years                      38                      36%


Above 45 years                      20                      19%




Interpretation


It is evident from the above table that about 5% of the respondent were
below 18 years, about 41% were between 18 to 30 years, and about 36% ere
between 30 to 45 years and about 19% were above 45 years.




                                   60
                 ABOUT THE AGE OF CUSTOMERS




                            40%
45%
                                             36%
40%
35%
30%
                                                        19%
25%
20%
15%
           5%
10%
5%
0%
      Below 18       18 to 30          30 to 45    Above 45




                                  61
                          TABLE NO. 3

  ABOUT THE AWARENESS OF RUBY TUESDAY AMONG THE
                           RESPONDENTS


Respondent Category           Frequency               Percentage


Yes                           106                     23%


No                            351                     77%




Interpretation


It is evident form the above table that about 23% of the respondents were
aware about Ruby Tuesday whereas 77% were not aware about Ruby
Tuesday.




                                    62
      ABOUT THE AWARENESS AMONG RESPONDENTS




                                    77%


80%
70%
60%
50%             23%
40%
30%
20%
10%
0%
          YES                  NO




                      63
                            TABLE NO. 4

         ABOUT THE INCOME (in Rs. ) OF RESPONDENTS


Respondent Category             Frequency                   Percentage
Below 10,000                            0                         0%

10,000 to 49,999                        8                         8%

50,000 to 99,999                       23                        22%

100,000 to 149,999                     36                        34%

150,000 to 199,999                     25                        24%

200,000 or more                        14                        13%




Objective
Here the underlying objective is to know which income group buyers should
be targeted so as to increase the number of transactions.


Interpretation
It is evident from the above table that total household income of about 8% of
the respondents fall within income group 10,000-49,999 rupees, 22% fall
within income group 50,000-99,999 rupees, 34% fall within income group
100,000-149,999, 24% fall within income group 150,000-199,999 rupees,
whereas 13% of respondents fall within income group of 200,000 or more.




                                      64
               About The Income (in Rs. '000) of Respondents
                                               0%

                            13%                       8%



                                                              22%


                24%




                                                33%



Less than 10     10 to 50    50 to 100   100 to 150    150 to 200   More than 200




                                         65
                           TABLE NO. 5


      ABOUT THE PURPOSE OF VISITING RUBY TUESDAY


Respondent Category             Frequency                 Percentage


Quality of Food & Beverages            67                        63%

Fast Service                           64                        60%

Nearest to Customers                   56                        53%

Interest of Customers                  78                        74%

Ambience                               73                        69%



Interpretation
It is evident form the above table that about 63% of the respondents said that
they were visiting the Ruby Tuesday outlets because of the quality of food
offered, 60% were visiting because of fast service, 53% were visiting
because it is nearest to them, 74% just because of interest and 69% said that
they were visiting Ruby Tuesday because of ambience.

This table does not represent that the total number of respondents is 106
because there were some respondents who choose multiple categories in
order to respond, i.e., some respondents marked two or more than two
options in this category. Frequency in each category represents that an
option was marked by those number of respondents out of 106.



                                     66
                About The Purpose of Visiting RubyTuesday



                                                   74%
80%                                                           69%
           63%
70%                      60%
                                        53%
60%

50%

40%

30%

20%

10%

0%
      Quality        Service     Nearest      Interest   Ambience




                                   67
                            TABLE NO. 6


 ABOUT THE SOURCE OF AWARENESS AMONG CUSTOEMRS


Respondent Category             Frequency                 Percentage


Friends and Peers                      38                        36%

Print Advertisements                   37                        35%

Radio                                  18                        17%

Corporate Tie-ups                      9                         8%

Others                                 4                         4%

Objective
The main objective of this statement in the questionnaire is to find out which
is the most widely used source of awareness so that the company can plan its
advertising tool(s) to create awareness among a large number of people.
Interpretation
It is evident form the above table that about 36% of the people new about
Ruby Tuesday through word of mouth from their friends, peers, relatives,
colleagues, etc. 35% of the people had seen an advertisement in the print
either in a newspaper, magazine or in leaflets. A sizeable amount of 17%
had heard of Ruby Tuesday on the radio and FM channels. Awareness
through corporate tie – Ups (like with credit card companies) accounted for
8% of the people. Rests were through other mediums like internet, social
networking sites, etc.


                                      68
      ABOUT THE SOURCE OF AWARENESS AMONG CUSTOEMRS




40%                                  36%
                      35%
35%

30%

25%

20%                                             17%

15%
                                                         8%
10%
         4%
 5%

 0%
       Others       Print        Friend and   Radio   Corporate
                Advertisements      Peers              Tie-ups




                                   69
                          TABLE NO. 7

                     ABOUT THE LOALITY OF
                 CUSTOMERS FOR RUBY TUESDAY


Respondent Category           Frequency               Percentage


Patient                             39                       37%


Depend on Circumstances             37                       35%


Impatient                           30                       28%




Interpretation


It is evident form the above table that about 37% of the respondents were
loyal to Ruby Tuesday, 35% said that their loyalty to Ruby Tuesday
depended on circumstances and 28% were impatient about it.




                                   70
      About The Loyalty of Customers for RubyTuesday


              37%
                                 35%
40%
                                               28%
35%
30%
25%
20%
15%
10%
5%
0%
        Yes           Depend Upon       Can Change
                     Circumstances




                            71
                            TABLE NO. 8

About the Visiting Pattern of Customers When Ruby Tuesday Outlet is
                       Not Available to Their Locality


Respondent Category             Frequency                 Percentage


Visit nearest Outlet                   45                         42%


Order for Free Home Delivery           15                         15%


Visit Other Restaurant                 46                         43%




Interpretation


It is evident form the above table that about 42% of the respondents will
visit the nearest outlet of Ruby Tuesday when it is not available to their
locality, 43% will search visit an outlet of any other restaurant, while 15%
respondents says that they will order for a free home delivery.




                                      72
      About The Visiting Pattern of Customers When RubyTuesday
                 Outlet is not Available to Their Locality




50%                                            43%
                     42%


40%


30%

                                                                    15%
20%


10%


0%
        Visit Nearest Outlet   Visit Other Restaurant   Order Home Delivery




                                          73
                          TABLE NO. 9

ABOUT THE BENEFITS (TO CUSTOMERS) PERCIEVED BY THE
              RESPONDENTS FROM RUBY TUESDAY


Respondent Category           Frequency                  Percentage


Yes                                 48                        45%


No                                  23                        22%


Can’t Say                           35                        33%




Interpretation


It is evident form the above table that about 45% of the respondents who
were aware of Ruby Tuesday and who had dined at Ruby Tuesday really feel
benefited by Ruby Tuesday because of its foreign environment casual
dinning, 22% were not benefited and 33% were not sure.




                                   74
      About the Benefits Perceived By RubyTuesday Customers



                 45%
50%

                                                     33%
40%

                                     22%
30%


20%


10%


0%
           Yes                No              Can't Say




                                75
                           TABLE NO. 10

   ABOUT THE ADVERSE EFFECT ON WELFARE OF SOCIETY


Respondent Category             Frequency                 Percentage


Yes                                    29                        27%


No                                     30                        38%


Can’t Say                              37                        35%




Interpretation


It is evident form the above table that about 27% of the respondents felt that
Ruby Tuesday is adversely affecting the welfare of society. About 38% felt
that there is no adverse affect of Ruby Tuesday, whereas 35% were not sure
about it.




                                     76
  About The Adverse Effect of RubyTuesday on Welfare of Society




                                     38%
                                                     35%
40%

                 27%
30%



20%



10%



0%
           Yes                No              Can't Say




                                77
                           TABLE NO. 11

 ABOUT THE SATISFACTION OF RUBY TUESDAY CUSTOMERS


Respondent Category             Frequency                 Percentage


Yes                                    46                        43%


No                                     26                        25%


Can’t say                              34                        32%




Interpretation
It is evident form the above table that about 43% of the respondents said that
they are satisfied with the services offered by Ruby Tuesday, while 25% said
that they are not satisfied with Ruby Tuesday and it need to improve itself
on certain parameters and 32% respondents were not sure about their
satisfaction.




                                     78
      About the Satisfaction of RubyTuesday Customers



              43%
50%

                                                  32%
40%
                                25%
30%


20%


10%


0%
        Yes                No              Can't Say




                             79
Comparative Analysis of Ruby Tuesday
In order to compare the performance of Ruby Tuesday in the casual dinning market,
respondents were asked to mark it on several parameters according to the following five
preferences:

1 = Strongly Disagree
2 = Disagree
3 = Neither Disagree Nor Agree
4 = Agree
5 = Strongly Agree


In order to find the perceived level of performance of Ruby Tuesday in comparison to
other casual dinning restaurants in India, I was required to find out the overall level of
performance. For finding this, only comparison statements (12.a-12.f) have been
considered. This has come at:

                Mean                     3.632075
                Median                   3.666667
                Mode                     3.666667
                Standard Deviation       0.431999
                Sample Variance          0.186623
                Kurtosis                  -0.20405
                Skew ness                 -0.44584
                Maximum                           4.5
                Minimum                  2.666667
                Sum                            385
                Count                          106


So, we can say that the perceived level of performance of Ruby Tuesday in comparison to
other restaurants in India is at 3.632, which is in between ‘Neither Disagree Nor Agree’
and ‘Agree’. This value is closer to ‘Agree’, i.e. better performance.




                                             80
We can also check that whether this performance is affected by the dinning behaviour of
customers in a particular category.


H0: µ (mean of sample) =3.632
H1: µ ≠ 3.632
In words:
Null Hypothesis        : the level of comparative performance is equal for all dinning
                        pattern of customers.
Alternate Hypothesis: the level of comparative performance is different for different
                        dinning pattern of customers.


Taking those respondents first who dine Twice a Week.
Average of all the respondents from Twice a Week category


                Respondents                     Details
                           3.5 Mean                       3.833333
                             4 Median                     3.833333
                      3.666667 Mode                       3.666667
                           3.5 Standard Error
                             4 Standard Deviation         0.268742
                      3.833333 Sample Variance            0.072222
                      3.666667 Kurtosis                   -0.53254
                      4.166667 Skew ness                  0.524762
                      4.333333 Maximum                    4.333333
                      3.666667 Minimum                          3.5
                      3.833333 Sum                        42.16667
                                 Count                          11


Sample mean = 3.833,
Sample standard deviation (σ) = 0.268 &
Sample size (n) =11




                                           81
Because σ is known , sample size(n) is less than 30 & we know about the direction of the
claim of empowerment which is less than. So, we use z-test.
Here population mean (µ) =3.632, level of significance = 5%
Z (tabulated Value) =1.96

Formula of z-test (two tail),


                                Z calculated = 2.487


Since Z calculated > Z tabulated, we have enough evidence to reject null hypothesis.
This means that the perceived level of performance by Ruby Tuesday as compared to
other restaurants is affected by the dinning pattern of those customers who dine Twice a
Week at 95% confidence interval.


Similarly, we can calculate the z (cal. Value) of the entire dinning pattern by using
ANOVA and in all the cases the null hypothesis is rejected, i.e. the perceived level of
performance of Ruby Tuesday depends on customers’ dinning pattern.


 Anova: Single Factor

 SUMMARY: Dinning Pattern
      Groups       Count              Sum        Average     Variance
 Once a Year              7               26     3.714286     0.099206
 Twice a Year             9         35.33333     3.925926     0.271605
 Once a Month           27          89.83333      3.32716     0.193336
 Twice a Month          26              97.5         3.75     0.180556
 Once a Week            20                73         3.65     0.116667
 Twice a Week           11          42.16667     3.833333     0.072222
 Cant Say                 6         21.16667     3.527778     0.026852


 ANOVA
     Source of                     Degree of      Margin         F
     Variation            SS       freedom       of Safety   calculated   P-value      F critical
 Between Groups        4.213524            6     0.702254     4.519813    0.000433     2.191549
 Within Groups         15.38186           99     0.155372

 Total                 19.59539           105




                                                82
Interpretation
So, we can say that the perceived level of performance by Ruby Tuesday in
the casual dinning restaurants industry is in good condition and is currently
between equilibrium and better stage. This applies to all the aware
respondents taken into account in this research.




                                      83
Research Question: How can background variables of respondents like age,
income, source of awareness be linked to comparative performance
variables? (… i.e. do the average scores for six factors differ on the basis of
age, income, source of awareness etc.?)
Brief description: There are many factors that affect the consumers buying behavior.
These factors may act as a major influencer when consumers make a decision to dine
outside. These factors have a direct relationship with consumers’ perception. Therefore,
in order to find out the relationship between these background variables of consumers
and their perception about the performance of Ruby Tuesday as compared to other casual
dinning restaurants, this research was carried out.


1. AGE
        H0: µ1 = µ2 = µ3 = µ4
        H1: µ1 ≠ µ2 ≠ µ3 ≠ µ4

Here, we will test whether the means of various age-groups of all the respondents, taken
individually, are equal.
We will test this with the ANOVA

Anova: Single Factor

SUMMARY: Age
     Groups           Count       Sum      Average    Variance
Below 18 Years              5   18.66667   3.733333   0.077778
18 to 30 Years             43   158.1667   3.678295    0.14338
30 to 45 Years             38   135.8333   3.574561   0.224771
Above 45 Years             20   72.33333   3.616667   0.245906



ANOVA
   Source of
    Variation           SS         df         MS          F      P-value      F crit
Between Groups        0.27357          3    0.09119   0.481393   0.695943   2.693721
Within Groups        19.32182        102    0.18943

Total                19.59539        105




                                             84
Interpretation: Here, F calculated < F critical at 95% confidence interval. So, we fail to
reject the null hypothesis. This means the perceived level of performance is same for all
the age groups of respondents.


2. INCOME
        H0: µ1 = µ2 = µ3 =…………….till µ6
        H1: µ1 ≠ µ2 ≠ µ3 ≠…………… till µ6
Here, we will test whether the means of all the respondents, taken individually according
to their respective income, are equal.


Anova: Single Factor

SUMMARY: Income
      Groups             Count       Sum         Average    Variance
Less than 10000                 0          0      #DIV/0!    #DIV/0!
10000-50000                     8       30.5       3.8125   0.114583
50000-100000                   23       81.5     3.543478   0.202569
100000-150000                  36   131.1667     3.643519   0.224052
150000-200000                  25   91.16667     3.646667   0.144259
More than 200000               14   50.66667     3.619048   0.198413



ANOVA
Source of Variation        SS            df         MS          F      P-value      F crit
Between Groups          0.453374            5    0.090675   0.473696   0.795086   2.305318
Within Groups           19.14201          100     0.19142

Total                   19.59539          105

Interpretation: Here, F calculated < F critical at 95% confidence interval. So, we fail to
reject the null hypothesis. This means the perceived level of performance is same for all
the income groups of respondents.




                                                85
3. Source of Awareness
        H0: µ1 = µ2= µ3= µ4= µ5
        H1: µ1 ≠ µ2≠ µ3≠ µ4≠ µ5
Here, we will test whether the means of all the respondents, taken individually according
to the source from which they get to know about Ruby Tuesday, are equal.


Anova: Single Factor

SUMMARY: Source of
Awareness
        Groups             Count        Sum        Average    Variance
Others                            4         14          3.5   0.185185
Print Advertisements             37   134.1667     3.626126   0.225934
Friends and Peers                38   143.1667     3.767544   0.137447
Radio/FM                         18       64.5     3.583333    0.10866
Corporate Tie-ups                 9   29.16667     3.240741   0.222994



ANOVA
 Source of Variation         SS          df           MS          F      P-value      F crit
Between Groups            2.189499           4     0.547375   3.176216   0.016739   2.461698
Within Groups             17.40589         101     0.172336

Total                     19.59539         105



Interpretation: Here, F calculated > F critical at 95% confidence interval. So, we have
sufficient evidence to reject the null hypothesis. This means the perceived level of
performance was affected by the source from which people came to know about Ruby
Tuesday. Friends and Peers played an important role in influencing the dinning decision
of consumers while Corporate Tie-ups and others means had least affect.


4. Locality
        H0: µ1 = µ2= µ3
        H1: µ1 ≠ µ2≠ µ3

Here, we will test whether the means of all the respondents, taken individually according
to their dinning behavior is a Ruby Tuesday is not available to their locality, are equal.


                                              86
Anova: Single Factor


SUMMARY: Locality
         Groups              Count       Sum        Average    Variance
Visiting Nearest                 45         164     3.644444    0.19899
Ordering Home Delivery           15    51.66667     3.444444   0.181217
Visiting Other                   46    169.3333     3.681159   0.170156



ANOVA
  Source of Variation          SS         df          MS           F      P-value      F crit
Between Groups               0.64579          2     0.322895   1.755088   0.178023   3.084577
Within Groups                18.9496        103     0.183977

Total                       19.59539        105



Interpretation: Here, F calculated < F critical at 95% confidence interval. So, we fail to
reject the null hypothesis. This means the perceived level of performance is same whether
a Ruby Tuesday outlet is available to the locality or not.


In all the four basic factors measured above, it was found that age, income and locality of
customers does not affect the perceived level of comparative performance of Ruby
Tuesday. But source of awareness among customers is the major factor which influences
the customer’s perception about Ruby Tuesday. Therefore, the company should put much
focus on these sources of awareness.




                                               87
 ANALYSIS OF CUSTOMERS’ RESPONSE TO
                       LOYALTY PROGRAM


1. Experience of visiting Ruby Tuesday –

              About the Dinning Experiance at Ruby Tuesday

                                58%

      60%
                                                                42%
      50%

      40%

      30%

      20%

      10%

        0%
                          Yes                             No



Inference –
Amongst the people who have heard of Ruby Tuesday, only 58% of them have actually
visited the restaurant. This shows a poor conversion rate from the brand awareness to the
actual footfall in the restaurant. The reason for this could be anything from high prices to
being new to the concept of fine dining or the “American type of cuisine”.




                                            88
2. Spending of the consumer per visit –

                     Expenditure per visit by the Customer

                                       33%
    35%                                                                     31%

    30%                                                   24%
    25%
    20%
                     12%
    15%
    10%
      5%
      0%
              Less Than        1000-1500           1500-2000           More than
                1000                                                     2000



Inference –
The customers tend to spend a lot while visiting Ruby Tuesday as it is evident from the
data with 31% of the respondents spending more than Rs.2000 per visit. 24% of the
respondents spend between Rs.1500-2000, while a maximum 33% of the respondents
spend between Rs.1000- 1500 per visit to the restaurant. Only a small number of 12%
spend less than Rs.1000 per visit. This reinforces Ruby Tuesday as a restaurant with a bar
for the high classes of the society. It is truly a fine dining restaurant, at least in terms of
its prices.




                                              89
3. Percentage of income spent on restaurants –

                Proportion of Income Spent on Restaurants

   40%                                   36%
                                                          34%
   35%
   30%
   25%                                                                        23%

   20%
   15%
   10%            7%
    5%
    0%
               5%-10%             10%-20%             20%-30%           More than 30%




Inference –
A maximum of 36% of the people spend anything between 10%-20% of their monthly
incomes on dining and drinking outside of their respective homes. A close 34% of the
people spend even more, between 20%-30% of their monthly incomes at restaurants. A
sizeable amount of 23% of the people spend the most part of their incomes, that is more
than 30% of their monthly incomes on dining and drinking outside. Only 7% of the
people spend only 5%-10% of their monthly incomes in restaurants, preferring rather to
eat at homes most of the times.


This clearly shows that it is in the nature of people in New Delhi to dine out and they are
also willing to pay for it handsomely.




                                               90
4. Awareness of the “Tex-Mex” cuisine of Ruby Tuesday –




Inference –
Only 28% of the people who have heard of Ruby Tuesday were aware of the type of
cuisine the restaurant serves, which is the Texas-Mexican cuisine (Tex-Mex). This
indicates the level of customer awareness towards the Ruby Tuesday brand is quite
shallow. Most of the 72% of the unaware people thought it served mostly burgers and
salads.




                                        91
5. Customer preference to discounts and loyalty program –


                    About The Preference to Loyalty Cards

                                                       39%
     40%             32%
     35%                              28%
     30%
     25%
     20%
     15%
     10%
                                                                         1%
      5%
      0%
                 Discount     Paid Loyalty       Free Loyalty    No Loyalty
                 Coupons          Card              Card            Card




Inference –
Most, that is, 39% of the people preferred a free loyalty card which would fetch discounts
as well as reward points. A slightly lesser number, 32%, preferred just discount coupons,
which can be used only for one visit. But, a sizeable number of 28% were willing to pay
for a loyalty card that would fetch bigger discounts and more reward points for the
customers to redeem in the future. Only 1% neither wanted any discount-coupons nor any
loyalty cards.




                                            92
6. Awareness of the Loyalty Programs of Ruby Tuesday –




Inference –
It is evident from the above chart that 41% of the respondents who were aware of Ruby
Tuesday, knew about the existence of its loyalty programs as well. This also shows the
shallow knowledge of the consumer regarding the services provided by Ruby Tuesday to
its customers.




                                         93
7. Choice between the Loyalty Programs –

                        72%




                                               28%




Inference –
72% of the people, who are aware of the existence of a loyalty program at Ruby Tuesday,
do so about the paid loyalty program called “Ruby Regular” loyalty program. The rest
28% of the people know about the newly launched “Neighborhood Advantage Card”,
which is a free loyalty program.




                                          94
8. About the increase in frequency of visits to Ruby Tuesday if a loyalty
card is owned–




Inference –
Maximum number, i.e., 52% of the people thinks that owning a loyalty card will spur
them on to visit Ruby Tuesday more frequently than before. 32% think otherwise and say
it will not affect their frequency of visits to the restaurant. The remaining 17% of the
people can not say about it.


This shows that loyalty programs are and will be a hit amongst the customers and will
drive the restaurants by increasing the number of footfalls in it.




                                             95
96
RECOMMENDATIONS
1) Ruby Tuesday has less brand awareness, as compared to its direct competitors and
   other restaurants like AppleBees®, Bennigans®, Ponderosa, Houlihans and TGI
   Fridays®, and McDonalds, Pizza Hut, Indochine, etc. Thus, the management should
   devise more marketing strategies to increase its brand awareness as well as the
   awareness of its products. This would be helpful in beating the present competitors as
   well as facilitate in the future as the fine dining market is still growing in India.


2) Ruby Tuesday should advertise heavily through leaflets and flyers in the
   neighborhood areas and colonies of its outlets. This would encourage the potential
   customers to come in and also to activate the newly launched loyalty card that has
   been distributed free of cost in the neighborhood colonies of the Ruby Tuesday
   outlets.


3) Apart from the existing print and radio advertisement, Ruby Tuesday should go in for
   television advertisements. This would help create brand awareness as well as a brand
   image (with the help of its products being viewed in the ad) amongst the potential
   customers, as television now is the medium having the maximum reach direct into the
   homes of the people.


4) There is a growing market for fine dining experiences amongst the neo-rich and the
   increasingly wealthy Indian middle-class these days. Ruby Tuesday should try and
   tap this potential market.


5) Ruby Tuesday should improve upon its quickness and quality of services and the
   servers, respectively, in the outlets. Also, the music at the outlets needs to be fresh,
   innovative and non repetitive.


6) Proper training and soft skills should be imparted to the servers, so that they have
   adequate knowledge of the cuisine as well as of the bar, and are more courteous to the
   customers.


                                             97
CONCLUSION
Customer delight continues to be the key driver’s of today’s marketing operations,
especially in the casual fine dining sector. There is tremendous competition in the
restaurant industry, with both domestic and international players existing, and leadership
can only be achieved by constantly delivering customer delight and each time creating an
experience worth remembering for in the whole life of the guest.


Although there is an immense market for the fine dining segment, it has not been tapped
enough by Ruby Tuesday, mainly due to its lack of brand awareness amongst the
customers.


Also, after the introduction of the new loyalty program, Ruby Tuesday should identify its
loyal customer base, and then cater to their wants and needs specifically. Aggressive
marketing and swift promotion of the program in the major colonies and areas should see
fast results in terms of increasing footfalls in the outlets and newer activations of the free
loyalty cards each day.


Ruby Tuesday should be proactive and create enough customer awareness in the market
so as to take advantage of the upcoming Commonwealth Games in the city of New Delhi.


With over more than 6000 athletes from all over the world, it will be one of the biggest
sporting extravaganzas of the country ever, having a major international presence, which
can be cashed in by Ruby Tuesday.




                                             98
99
BIBLIOGRAPHY


BOOKS
  Kotler Philip- Keller Kevin Lane, Marketing Management, 12th Edition, Pearson
     Education.
  Naresh K. Malhotra, Marketing Research- An Applied Orientation, 5th Edition,
     Prentice Hall Inc.
  Leon G. Schiffman & Leslie Lazar Kanuk- Consumer Behavior, 8th Edition,
     Pearson Education.


WEBSITES
    www.rubytuesday.com
    www.google.com
    www.rtcindia.co.in
    www.wikipedia.org




                                      100
101
   Annexure I
               CUSTOMER AWARENESS TOWARDS
                                  RubyTuesday
Name:                                                      Phone:
Designation:                                               E-mail:

   1. How often do you go for dinning outside?
        a) Once a year                       b) Twice a year
        c) Once a month                      d) Twice a month
        e) Once a week                       f) Twice a week
        g) Can’t Say

   2. Your Age-
           a) Below 18 years
           b) From 18 to 30 years
           c) From 30 to 45 years
           d) Above 45

   3. Are you aware of Ruby Tuesday?
           a) Yes                                   b)   No

   4. What is your total household income (in Rs.) per month?

        a) Less than 10,000                  b) 100,000 - 149,999
        c) 10,000 - 49,999                   d) 150,000 -199,999
        e) 50,000 - 99,999                   f) 200,000 or more

   5. For which purpose do you visit Ruby Tuesday?
           a) Because of quality product
           b) Because of quick service
           c) Because it is the nearest to you
           d) Just because of Interest
           e) Ambience
           f) All of the above


                                           102
6. How did you come to know about brand Ruby Tuesday?
       a) Friends and Peers
       b) Print Advertisements
       c) Radio/FM
       d) Corporate Tie-ups
       e) Others


7. If Ruby Tuesday outlet is not available to your locality, you would prefer to
       a) Visit the nearest outlet of Ruby Tuesday
       b) Order for a free home delivery
       c) Visit any other restaurant to your locality


8. Do you really feel benefited by Ruby Tuesday?
       a) Yes
       b) No
       c) Can’t say


9. Are you loyal to brand Ruby Tuesday or can you change the brand?
       a) Will stick to Ruby Tuesday
       b) Depends upon circumstances
       c) Can Change


10. Do you think that Ruby Tuesday is adversely affecting the welfare of society?
       a) Yes
       b) No
       c) Can’t say


11. Are you satisfied with the services provided at Ruby Tuesday?
       a) Yes
       b) No
       c) Can’t say



                                       103
12. Please round the number as per your choice.
                                                                     Neither
                                               Strongly   Disagree   Agree Nor   Agree   Strongly
                                               Disagree              Disagree             Agree

a)
     The Speed of Service at Ruby Tuesday          1         2           3        4         5
     is better than other restaurants.

b)   Quality of food served at Ruby
     Tuesday is better than other                  1         2           3        4         5
     restaurants.

c)
     Beverages offered at Ruby Tuesday             1         2           3        4         5
     are better than other restaurants.

d)
     Ambience is better in Ruby Tuesday            1         2           3        4         5
     than other restaurants.

e)
     Cleanliness in Ruby Tuesday is better         1         2           3        4         5
     than other restaurants.

f)
     Music Played at Ruby Tuesday is               1         2           3        4         5
     better than other restaurants.

     13. Please give your suggestions for improving the brand image?
        ________________________________________________________
        ________________________________________________________
        ________________________________________________________


 Thank you for participating in our research……

 -----
 Regards,

 Robin Jindal
 Management Trainee (May-June 09)
 RTC Restaurants (I) Limited
 705, Chiranjiv Tower,
 43, Nehru Place
 New Delhi – 110 019
 Mob: +91 991110 7519


                                             104
  Annexure II
          RubyTuedsay Loyalty Program
1) Have you dined at Ruby Tuesday?
   Yes                     No

2) How much approximately do you spend when you dine at Ruby Tuesday?
   Less than 1000
   1000-1500
   1500-2000
   More than 2000

3) What percentage of your monthly income do you usually spend dining outside?
   5%-10%
   10%-20%
   20%-30%
   More than 30%

4) Do you know that Ruby Tuesday serves “Tex-Mex” cuisine?
   Yes                      No

5) What would you prefer to have?
   Discount Coupons
   Paid membership card with higher discounts
   Free membership card with lesser Discounts
   No membership/Loyalty card

6) Are you aware of any Ruby Tuesday loyalty programs?
   Yes                     No

7) If “Yes”, then which one?
   Ruby Regular (Paid membership + Higher discounts)
   Neighborhood Advantage Card (Free membership + Lower discounts)

8) Would owning a loyalty card increase your visits to Ruby Tuesday?
   Yes                     No                   Can’t Say




                                        105
Annexure III
Locations of RTC’s Outlets in Delhi & NCR-
UNIT             NO OF OUTLET    LOCATIONS
Ruby Tuesday          8          Saket - PVR Anupam Complex
                                 Nehru Place - Satyam Cineplex
                                 Greater Kailash II
                                 Janak Puri - Satyam Cineplex
                                 Raja Garden - TDI Mall
                                 Rohini – Unitech Metro Walk
                                 Noida – The Centre Stage Mall
                                 Gurgaon – DLF City Centre Mall
Mandarin Trail        1          Noida - Great India Place Mall
Polka                 2          Kailash Colony Market
                                 Faridabad - Crown Plaza Mall
Sbarro                13         Nehru Place - Satyam Cineplex
                                 Saket - PVR Market
                                 Noida - Great India Place Mall
                                 Kaushambi - EDM Mall
                                 Noida - Centre Stage Mall
                                 Janakpuri - Distric Centre
                                 Gurgaon - DT Mall
                                 Gurgaon - Ambience Mall
                                 Laxmi Nagar - V3S Mall
                                 Rajouri Garden - TDI Mall
                                 Greater Kailash II
                                 Kailash Colony Market
                                 Connaught Place




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