1. Marketing
Management
Project

2.  FAASOS stands for
Fanatic Activism Against Substandard Occidental Shit
 It is an growing Indian fast food chain that primarily
sells Wraps
 Idea behind Faaso's is based on the Kathi rolls
 As per owners :
• “it is a Desi fast-food with Western customer service in a market
dominated by sandwiches and burgers.”
• “ It‟s a bit like a pizza, except that it‟s not flat.”
 They are also famous for taking order via Social networking
sites and their Sartorial marketing campaigns

3.  Founded in 2004 by Jaydeep Barman, Siddharth Joshi
and Biswanath Chakraborty
 Initial investment of Rs. 8 Lacs for one air conditioned
restaurant.
 It attracted customers, but the overheads were high
 Initial marketing was only word to mouth
 Second outlet was a smaller, stripped down version of
the first store
 The group broke even in year 2006.

4.  The fast food industry is the fastest growing sector in the food
industry
 In India, food contract and support services is a Rs9,000-crore
market
 Franchise driven Indian fast food restaurant industry sales
grew at a rate of 17%-20%
 Increasing youth workforce is the primary target and cities with
good youth population can be a good option for investment in
this field
 With growing market foreign investors are also making
Investments in those infant organizations

5.  The menu keeps it simple with a singular focus on wraps
 Prices are competitive
 The company uses social networks, chiefly Twitter, to take orders and also
via phone
 Each outlet occupies about 200 feet which in result demands less
investment on real estate
 Each outlet operates at one-fifth the cost of a fine-dining restaurant and
takes about three months to break-even
 They maintain a low profit margin model
 Low but effective marketing strategy targeting only low-middle income youth
population
 Extensive use of social media for marketing helps in curbing the extra cost

6. Strength:
• Created a niche in Indian fast food
• Didn’t offered any privileged services
which reduced initial cost
• First mover in using social media as
a crowd puller
• Required low investments on real
estate
Weakness:
•All the founders had little or no
previous experience in managing a
food outlet
• Stiff competition from International
food chains as McDonalds, Subway
and KFC
Opportunities:
•To create a low cost but high standard
outlet
•Maintain local flavor and theme to
attract customers with low budget
•Only major marketing source was Social
media
• Establish as a local chain among local
vendors and outlets
Threats:
• Local vendors were primary threats
• With rising popularity had the risk of
losing the idea to any established food
chain
• Initial overheads were high

7.  Targeted young customers with low
budget
The menu keeps it simple with a singular
focus on wraps.

8. They endorse online ordering which helps
in reducing their cost for maintaining a
dedicated call centre.
The company uses social networks, chiefly
Twitter, to take orders, though it also takes
orders on phone
They also have an official website for
taking home delivery orders

9. Represented the brand as the Marker of
current generation using sarcasm and
satire to impress the current mood

10. Offered various discounts and offers for
social networking users

11. The packaging is kept subtle which helps
in reducing cost
The packaging also helps in defining the
nature of the company representing casual
as well as hygienic model

12.  The company broke even in just 14 months after its inception
 Faaso‟s had 18 outlets in 2011 when the funding came in
 Currently, the company has 53 outlets across Pune(18), Mumbai (32)
and recently launched in Bangalore (3).
 The company began to gather momentum around 2009, by this time,
the company was running six outlets, mostly in and around Pune
 In 2009 Lunia Investment and Finance Pvt ltd came in with a Rs 50
lakh second round of angel funding
 The founders also raised a term loan of Rs 1 crore from SIDBI.
 In 2011 Sequoia Capitals invested $5 million for further expansion
 80% of the stores become profitable in 2-3 months

13.  Initially they tried expansion through Franchising
 But it failed because of low brand value of the company, they were
later renamed as „Eatsome‟
 Later they expanded through „Entrepreneurship in Residence
program‟
 After the initial hand holding, the entrepreneur is responsible for the
entire P&L of the store
 It was a hugely successful model ,more than 2000 people were
interested for the roles, mostly were engineering + MBA background
 Sequoia capital promised to spend $5 million for an undisclosed
minority stake in Faaso's for expansion in new markets.

14.  Currently they don‟t have a centralized kitchen which could
hamper the standard of taste they want to maintain.
 While approaching for further expansion they must be wary of
the competition from different players.
 Although their current system gives them ample scope for
marketing they must come up with new Ideas to avoid
stagnation.
 They must keep on updating their menus for opening new
streams for revenue
 They have a good customer feedback model through
Facebook, Twitter and Faasos.com which should be
maintained.

15.  Material/Information from books:
• Philip Kotler & Gary Armstrong, 11th edition, Prentice Hall of India Private Limited, New Delhi,
2006
• Global Perspective Indian Context, V S Ramaswamy & S Namakumari, 3rd Edition, Macmillan
India Limited, New Delhi, 2007
• Srinivasan, R. 2nd ed PHI
 Material/Information from Journals/ Magazines/Newspapers
• Economics Times, Sequoia Capital to invest $5 million in Faaso's, 12th Oct, 2011
• http://articles.economictimes.indiatimes.com/2011-10-12/news/30270949_1_gv-
ravishankar-sequoia-capital-india-paneer
 Material from website
• https://www.faasos.com/menuhtml.aspx
• http://entrepreneurindia.in/start-ups/all-wrapped-up/11950/
• http://yourstory.in/2013/05/10-years-50-outlets-and-going-strong-a-look-back-at-
sequoia-funded-faasos-growth/
• http://www.scribd.com/doc/26562062/Faaso-s-Marketing-Plan
• http://www.supportbiz.com/articles/managing-growth/faasos-offers-
%E2%80%98entrepreneur-residence%E2%80%99-program.html
• http://lurnq.com/lesson/India-Inc-Startup-Success-Stories/section/FAASO-s/