Professional Documents
Culture Documents
For this I have chosen the KFC food chain. KFC is the growing
brand in the world for food industry. KFC basically deals in
chicken recipes whose main focus in crispy and deep fried
chickens.
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INTRODUCTION
Fast food chains are amongst the most rapidly globalising businesses in
the world. Kentucky Fried Chicken popularly known as KFC started its
Indian operations in Bangalore, 1995. KFC at that time was on a worldwide
expansion spree, with India being its next market for setting up a string of
outlets.
This Project will broadly look into the entry of KFC in India and its success
and failures of their internationalization process. A booming Indian
economy and millions of the population hungry for consumerism meant
that KFC could expand rapidly into the market to beat their competitors to
the punch and capitalise on such a promising opportunity.
Research Focus
This research focuses on the marketing strategies of KFC and the
changing behaviour of consumers towards KFC. This research focuses on
the 4Ps of the marketing.
Rationale
The reason for choosing KFC as my topic is simply because it is one of the
biggest fast-food giants in the market today. KFC has become
synonymous to spicy and crunchy chicken. Everybody loves it and desires
for it.
Methodologies
Collection Method:
A) Primary Data
B) Secondary Data
C) Primary data
3.Interaction with people in day to day life.
4.Data collected on the basis of questionnaire.
D) Secondary data
5. Business Magazines
6. Newspapers
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7. Relevant information form website of KFC
8. Other Websites
Objectives
• To study the evolution of KFC and its introduction into India
• To find out the service quality of KFC in various other areas and find
out the deficiency.
Limitations
• Some retail owners (Branch owner) refuse to give information
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Although there are lot of fast food restaurants in India like McDonalds,
Subway, Dominos, Pizza hut, etc. KFC has its own large consumer group.
KFC continues reaching out to customers with home delivery in more than
300 restaurants in the United States and several other countries. And in
quite a few U.S. cities, KFC is teaming up with other restaurants, Taco Bell
and Pizza Hut, selling nearly fifty years ago; Colonel Sanders invented
what is now called “home meal replacement” – selling complete meals to
harried, time-strapped families. He called it, “Sunday Dinner, Seven Days
a Week.”
Today, the Colonel’s spirit and heritage are reflected in KFC’s brand
Identity– the logo features Colonel Harland Sanders, one of the best
recognized icons in the world.
“No body’s cooking like KFC today and we are the chicken experts”
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KFC History
After a series of jobs, in the mid 1930s at the age of forty, Colonel Sanders
bought a service station, motel and cafe at Corbin, a town in Kentucky
about 25 miles from the Tennessee border. It is here that Sanders began
experimenting with different seasonings to flavour his chicken which
travellers loved and for which he soon became famous.
During the next nine years he developed his secret recipe of 11 herbs and
spices and the basic cooking technique which is still used today. Sander's
fame grew. He sold his chicken on the highway! But when the highway
was removed, he sold up and travelled the United States by car, cooking
chicken for restaurant owners and their employees. If the reaction was
favourable Sanders entered into a handshake agreement on a deal which
stipulated a payment to him of a nickel for each chicken the restaurant
sold.
By 1964, from that humble beginning, Colonel Harland Sanders had 600
franchise outlets for his chicken across the United States and Canada.
Later that year, Colonel Sanders sold his interest in the United States
operations for $2 million. The 65-year-old gentleman had started a
worldwide empire using his $105 social security cheque. Sadly, Colonel
Harland Sanders passed away on December 16th, 1980 aged 90.
His legacy lives on with KFC restaurants all over the world. KFC now
stretches worldwide with more than 13,000 restaurants in more than 80
countries and territories around the world serving up the Colonel’s
Original Recipe. It is a $13 billion brand based out of Kentucky and is the
leading QSR around the world which is based in Louisville, Kentucky. Yum!
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Brands own 5 brands, out of which KFC is the largest brand within the
Yum! Portfolio, founded by Colonel Harland Sanders in the year 1938.
KFC IN INDIA
Foreign fast food companies were allowed to enter India during the early
1990s due to the economic liberalization policy of the Indian Government.
KFC was among the first fast food multinationals to enter India.
KFC is the world’s No.1 Chicken QSR and has industry leading stature
across many countries like UK, Australia, South Africa, China, USA,
Malaysia and many more. KFC is the largest brand of Yum Restaurants, a
company that owns other leading brands like Pizza Hut, Taco Bell, A&W
and Long John Silver. Renowned worldwide for it’s finger licking good food,
KFC offers its signature products in India too! KFC has introduced many
offerings for its growing customer base in India while staying rooted in the
taste legacy of Colonel Harland Sander’s secret recipe. Its signature
dishes include the “crispy outside, juicy inside” Hot and Crispy Chicken,
flavourful and juicy Original Recipe chicken, the spicy, juicy & crunchy
Zinger Burger, Toasted Twister, Chicken Bucket and a host of beverages
and desserts. For the vegetarians in India, KFC also has great tasting
vegetarian offerings that include the Veggie Burger, Veggie Snacker and
Veg Rice meals. In India, KFC is growing rapidly and today has presence in
13 cities with close to 72 restaurants.
Mission Statement
“Recognition: we find reasons to celebrate the achievement of others and
have fun doing it, “is right up there with “Customer Focus” and “Belief in
People”. Recognition is everybody’s responsibility,” says Chicago
restaurant manager Adonis Chapel. He explains since KFC started
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encouraging informal recognition, things have really changed. “You keep
employees longer, they are happier, they work better for you.”
Vision Statement
"The Association of Kentucky Fried Chicken Franchisees, Inc. is united to protect,
promote and advance the mutual interests of all member franchisees and the
Kentucky Fried Chicken system."
The aims and objectives of KFC are not only to sell chicken to make
money and make a profit, they are to expand as a business whether that’s
to be a worldwide business or just to open up a few more restaurants
around the country to provide a better service/faster service/better
customer service to beat competitors/rivals such as McDonalds, Burger
King, etc.
Values of KFC
• Focus all our resources to our restaurants operation because that is
where we serve our customers.
• Reward and respect the contributions of each individual at KFC.
• Expand and update training with time and be the best we can be
and more.
• Be open, honest and direct in our dealings with one and other.
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• Commit ourselves to the highest standard to the personal and
professional integrity at all times.
• Encourage new and innovative ideas because these are the key to
our competitive growth.
• Reward result and not simple efforts.
• Dedicate ourselves to continuous growth in sales, profit and size of
organization.
• Work as a team.
PHILOSOPHY OF KFC
CHAMPS stands for our belief that the most important thing each of us can
do is to focus on the customer. It stands for our commitment to provide
the best food and best experience for the best value. CHAMPS stand for
the six universal areas of customer expectation common to all cultures
and all restaurants concepts.
THE CHAMPS
These are:
Cleanliness
Hospitality
Accuracy
Maintenance of Facilities
Product Quality
Speed of Service
CHAMPS is the philosophy to ensure that the customer has the consistent
quality experience in every restaurant, everyday, on every occasions and
you will be playing role in delivering CHAMPS to our customers.
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Situational Analysis
For the current Indian market for fast food, it is not difficult for a fast food
restaurant to enter the market. However, it would be extremely difficult to
take over already running major fast food chains' dominancy in India or
even make a significant amount of profit. While there are enough people
in urban India for any restaurant to survive, KFC holds the first-mover
advantage into the 'non-vegetarian food specialty food segment' that
gives them free reputation. Customers, especially children who are used
to going to KFC as a treat or reward from their parents or grandparents,
are not going to want to go to other restaurants they’ve never heard of.
The brand name is already established. Also, there is already a large
variety in the numerous western-style dining places in India, such as
McDonald’s, Pizza Hut, Domino's and Subway, and any new fast-food
entrants would just be presenting something very similar to what’s
already there. While small Neighbourhood restaurants generally have low
barriers to entry, these are the barriers to entry for similar restaurant
businesses to enter the fast-food chain market.
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In terms of food, KFC, upon its move into India, urged many of its U.S.
suppliers to also extend branches into India. KFC also began helping local
suppliers by giving them technological support to improve their products.
This is a brilliant strategy because the supplies that KFC would otherwise
need to import from the U.S. can now be obtained domestically, and if the
U.S. suppliers decide to raise their prices, KFC can easily switch to the
local suppliers. This gives us a brilliant strategy. With this strategy, KFC
created competition among its suppliers, lowering the supplier bargaining
power. In terms of human resources, labour cost is extremely low because
the supply of non-skilled workers great exceeds the demand for them.
With so little buyer and supplier bargaining powers, KFC is able to have a
very tight control over its prices and expenditures.
Rivalry
Unlike what one would expect, KFC has little rivalry with similar fast-food
chains in
India. The primary reason is that their core products are different, as in
they sell different kinds of fast foods with very different tastes and styles.
For example, if KFC raised its price for chicken by a small amount, Indian
chicken lovers who may not be as accepting to pizzas (many Indian
people strongly dislike the taste of cheese) are not going to switch to
Pizza Hut just because the price for KFC increased. In addition to that,
these restaurants have such different target customers that the
fluctuation of price for one restaurant is not going to affect the others. For
example, a full meal at KFC ranges about Rs. 100, whereas a full meal at
Pizza Hut can cost over Rs. 300. The drastic difference in price assures no
price competition between these restaurants.
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TARGET MARKET
Segmentation
KFC has divided the market of India into distinct groups of customers with
different demands, tastes and behaviour who require separate products or
marketing mix.
In India the niche marketing is being used for particular classes of people.
They have made segments of the market on the following bases.
• Demographical
• Behaviour
• Geographical
By using these three bases they segmented the market as under.
DEMOGRAPHICAL BASIS
In demographics their first segment is consisted of the income factor i.e.
high income, average income and low income.
• Upper middle class
• Middle
• Family – Full nest
BEHAVIOUR
In behavioural aspect they segmented the market on the basis of quality,
taste and price. Following are the different possible segments in this
regard.
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• Taste conscious
• Quality conscious
• Class conscious
• Combination of price and quality
GEOGRAPHICAL BASIS
On the basis of the geographical factor we have divided our market in
three main segments.
• Urban areas
• Sub urban areas
Profile criteria:
1. Gender: KFC is for each gender both male and female.
2. Income: Everyone can use the KFC service both upper and middle
class.
3. Age: age limitation for using this product is above 15
4. Occupation: By profession also everyone can use this product means
businessmen, students, workers and others.
5. Education: It needs no education and needs only taste buds to easily
enjoy this product.
6. Family life cycle: KFC is suitable in every stage of life like single,
married couple and also those who have children can use this product.
7. Lifestyle: This product is used in every level of social class like upper,
middle class.
8. Attitude: When the customers once buy this product after that they
can use the product continuously.
9. Purchasing decision: Often KFC changes the purchasing decision of
customers because of its good attributes.
10. Geographic region: Geographically KFC is used in every part of the
country as well as all over the world.
Product usage
• People are educated and they want variety in their diet.
• Normally people of rural areas don’t take fast food. On the other
hand people of
• Urban areas take fast food.
• Income of the people of urban areas is normally high and they can
afford to purchase such products, which are slightly higher in price
as compared to prevailing prices of local food in the market.
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• People of Urban Areas are more quality conscious than the people of
Rural Areas.
• In Urban Area there lived people from every walk of life and profit
generation is easier than in Rural Areas.
• Population density is higher in Urban Areas as compared to Rural
Areas, so the
• Customers are more in Urban Areas.
Product positioning
Customer perceives this product as a unique product.
Attitudes
The attitude of the public is very good people like our this new product
like others.
Purchasing process:
Many people come from home to eat this, and some make impulse
decision as they see it.
Competitive analysis
Competitors
You cannot enjoy the business without competitors. No organization can
afford to ignore their competitors. It is very important for a marketing
manager to monitor the activities of their competitors, what they are
doing? KFC adopted such sort of strategy that there is no competitor for
spicy chicken, which is made by KFC.
KFC beats its competitors through the revising marketing strategy at
every movement but the main competitor of KFC is McDonalds
COMPETITIVE ADVANTAGE
KFC McDonalds
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Spicy Products Burgers and French Fries
Indians like spicy products instead of
boiled food
Local Staff and Highly Qualified Its Staff consist of simple Graduates
because local staff can better deal and
with the customers give them training
KFC uses Top to Bottom and Bottom McDonalds Uses Top To Bottom
to Approach.
Top Approach in Management.
Macro environment
Micro environment
The microenvironment consists of all forces that are close to KFC, and on
which KFC has an impact. They directly affect KFC’s ability to serve its
customers. Three major components influence KFC’s micro environment:
Competitors
Because the fast food market in India is highly competitive, KFC faces a
wide number of direct and indirect competitors. KFC’s main competitors
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are fast food chains such as McDonald’s and Domino’s, which are already
well established throughout India.
McDonalds’s in particular is a direct competitor, as they have already
successfully introduced their Salads plus line, which directly targets
‘healthy food’ conscious Indians. But, there are a number of other
competitors that is also focusing on ‘chicken’ types products. All this
competition makes it quite difficult for KFC to maintain or even broaden
their customer base. However, with the introduction of a new and healthy
product range, KFC can differentiate itself from most competitors and will
gain a competitive advantage.
Customers
KFC’s customer market consists solely of the consumer market. KFC’s
products are bought by individuals (males, females, singles, and families).
Therefore, the product range KFC offer should appeal to as many people
within this consumer market as possible, to ensure that the maximum
amount of products can be sold. The characteristics of these individuals
and a
segmentation of them are discussed later in this report.
Political:
The operations of KFC are affected by the government policies on the
regulations of fast food operation. Currently government are controlling
the marketing of fast food restaurant because of health concern such as
cardiovascular and cholesterol issue and obesity among the young and
children in the country. Governments also control the license given for
open the fast food restaurant and other business regulation need to follow
such as for a franchise business. Good relationship with government in
giving mutual benefits such as employment and tax is a must for the
company to succeed in any foreign market.
Economic:
Though for last 1 year there was economic slowdown all across the globe
but the sales of KFC and other fast food chains did not slow down to that
extent that of other sectors in. The GDP (Purchasing Power Parity) is
estimated at 2.965 trillion U.S. dollars in the year 2010. The GDP- per
Capita (PPP) was 2700 U.S. dollars as estimated in 2008. The GDP- real
growth rate in 2007 was 8.7%. India has the third highest GDP in terms of
purchasing power parity just ahead Japan and behind U.S. and China.
Foreign direct investment rose in the fiscal year ended March 31 2007 to
about $16 billion from just $5.5 billion a year earlier. There is a continuous
growth in per capita income; India’s per capita income is expected to
reach 1000 dollars by the end of 2007-08 from 797 dollars in 2006-07.
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This will lead to higher buying power in the Hands of the Indian
consumers. So taking into considerations the economic factors of India
KFC is safe. The only danger to it will be if there is a terrorist attack in
India and the victim is KFC.
Socio cultural:
India is the second most populous nation in the world with an approximate
population of over 1.1billion people. This population is divided in the
following age structure: 0-14 years – 31.8%, 15-64 years – 63.1% and 65
years and above – 5.1%. There has also been a continuous increase in the
consumption of fast food in India. The social trend toward fast good
consumption is changing and India has seen an increase of 90% fast food
consumption from the year 2002- 2007. This increase is far greater than
the increase in the BRIC nations of Brazil (20 per cent), Russia (50 per
cent) and China (almost 60 per cent). Thus this shows a positive trend for
fast food industries in India.
Technological:
The Indian fast food Industry is heating up with a lot of foreign players
entering the Indian market. The technological knowhow and expertise will
also enter the Indian market with an increase in competition. With the
lower rates and increase technology the fast food counters are attracting
youth by giving them attractive deals. For e.g. KFC and Domino’s pizza.
For a fast food restaurant, technology does not give a very high impact on
the company and it is not a significant macro environment variables.
However KFC should be looking to competitors innovation and improve
itself in term of integrating technology in managing its operation. For
example in inventory system, supply chain management system to
manage its supply, easy payment and ordering systems for its customers
and wireless internet technology. Implementation of technology can make
the management more effective and cost saving in the long term. This will
also make customer happy if cost savings results in price reduction or
promotional campaign discount which will benefits them from time to
time.
Environmental:
As one of world largest consumer of beef, potatoes and chicken, KFC
always had been critics for world environmentalist. This is because high
consumption of beef causing the green house effect by methane gasses
coming from the cow’s ranch. Large-scale plantation has effect the
environment and lots of green forest opening for plantation activities.
Vegetarian environmentalist criticizes the fast-food giant for cruelty to
animals and slaughtering. In America, once KFC want to introduce whale
burger causing uproar because whales are endangered species. Before
using paper packaging, KFC once had been criticized for being insensitive
to pollution because of using ne based packaging for its food products.
Imagine millions of people purchase from fast food operator and how is
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the impact to world environment by throwing away those hard to recycle
packaging. Our world is getting concern on environment issue and
business operating here should not just care for profit, but careful usage
of world resources for sustainable development and care for environment
safety and health for our future generation. Critics and concern from all
public or activist should be review and support if necessary to ensure we
play our social responsibility better.
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Figure 3- BCG Matrix
QUESTION MARK:
Currently KFC have launched a new product in the market. They have also
tried to come into the beverages market by launching its new brand of
shakes called KRUSHERS. As it is a fairly new product it comes in the
category of the Question Mark in the BCG Matrix. It has a low market
share thus brings low revenue. KFC is advertising a lot to popularize this
product so there is a lot of expenditure on it. This product is individually
not bringing any profits and is a cash drain for the company. Company
may decide to completely remove this product from the market if it does
not do well soon and start bringing in revenue.
DOG:
KFC’s Veg Thali comes under this category. Although company had
launched this product much earlier, it has still failed to become a success.
As KFC is known more for its non-vegetarian food, this also results in low
demand for this item. It has a low market share and although low on
expenditure (as company does not spend on its promotion), it does not
bring in much revenue as demand is low. The product is mostly CASH
NEUTRAL.
CASH COW:
KFC’s Chicken Bucket is the most successful product of the company. It
has the highest market share amongst all the other products. It has good
demand in the market and brings in huge sales revenue. The
development and other expenses are also low and thus this product is a
CASH SIRPLUS for the company.
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STAR:
The star product of the company is its crispy Boneless Chicken. It has a
high market share and brings in high revenue. But it also has high
developmental expenditure involved. The profit therefore is generally not
very high brought in by this product. This product is CASH NEUTRAL for
the firm. The company is trying to make this product a cow as well, by
reducing the expenditure
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SWOT analysis mean strength, weakness, opportunities and threats and
the SWOT analysis of KFC are:
STRENGTHS
Goodwill and reputation: The Company certainly has earned a good
name and reputation by its previous products and services in the market.
It is even more recognised in other markets outside India, where the
company is among the leading fast food giants. The brand is recognised
and trusted in India for its quality products, price, and customer service. It
therefore has a good head start and enjoys a good chance of becoming a
leader in Indian fast food industry.
Ranks highest among all chicken restaurant chains for its convenience
and menu variety. It generates $1B revenue each year.
WEAKNESSES
OPPURTUNITIES
New Markets: Globalisation has opened doors for new markets for the
company. As the developed markets are mostly saturated, the developing
countries like India and China promises a good market and generation of
demand in the future. With more than 70% of the markets in India being
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unexplored and un organised, KFC has a good scope of expanding its
operations in the country.
New variety: Company can also come up with new variety in the
menu like Pizzas, garlic breads to attract more customers.
THREATS
Saturated US Market: Now KFC cannot rely on just its home market
to generate sales. As the US markets are already saturated and leave no
or little scope for growth, company necessarily needs to look at offshore
foreign markets to generate sales and keep up the profits.
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MARKETING STRATEGIES OF KFC
There are different strategies adopted by KFC for different events. They
market their products on different events and in different activities as
they are helping SOS village.
According to KFC, kids become the future permanents customers and we
know very well that without any marketing strategy no marketing
program and no product is successful because we depend upon
customers, customer not depend on us.
• KFC is following Niche Marketing and Societal Marketing techniques.
• KFC possess a western culture because some of the Indian people
are also following that culture.
• KFC are moving from Divisional Level to the District level by opening
branches
• KFC open their outlets on reachable places.
• KFC menu consists of more than 30 products.
• KFC gives more priority to Family.
MARKETING Mix
1. PRODUCT:
A product is anything that can be offered to a market that might satisfy
a want or need.
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• KFC product is classified as consumer product as it has no
intermediates.
• KFC offers specialty goods.
• The stock turnover of KFC is high.
• Price and quality of the product is always compared.
• KFC’s product includes
• Goods (Burgers, Chicken Meals etc)
• Services (cleanliness, quick service, parties)
BRAND:
There are three brands of the KFC:
1) Taco bell
2) Pizza Hut
3) Long john silvers
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KFC has introduced a new product “Veg Zinger”. It is new in the market
and hasn’t been launched in all the outlets. Their tagline for this new
product is “Living on the Veg”. KFC is trying so hard to convince people
that it is not 100% non-veg; but also 100% veg.
Competitors:
KFC has a head-on competition with McDonalds.
Wherever they place their products; KFC goes there as
well.
Attributes:
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The brand of KFC is so strong that it is the attribute
itself.
Brand of KFC
PACKAGING
The packaging for KFC products is chosen according to performance
against three key criteria:
Heat Retention
Moisture removal
Grease absorption
The packaging material and carton design are all adapted to maximise
performance against these three criteria.
Recycled Paper
KFC’s clamshells and chicken boxes contain as much recycled material as
it is legally allowed. By law they are required to have virgin fibre board in
any part of the packaging that is in contact with food. Any virgin fibre
comes from board suppliers who use pulp bought from managed forest in
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Scandinavia. This ensures that any wood cut for paper production is
replaced with new plantings.
Environmental concerns
Over and above ensuring KFC’s packaging is supplied via recycled or
renewable resources; KFC are enthusiastically complying with the new
environmental directives on recovery and recycling of packaging waste.
Conclusion
• KFC has made a separate brand image in India.
• KFC Pakistan does serve the vegetarians.
• Product line is very vast.
• They study the behaviour of the Indian customers.
• KFC has specific product features.
• Offers delicious and quality product.
• Specialization in fried chicken.
• Charging extra for side dishes.
• Quality, cleanliness, and service.
• Product quality assurance.
PRICE
Price is the any amount of money that customers have to pay while
purchasing the product. More broadly, price is the sum of all the values
that consumers exchange for benefits of having or using the product or
services
Price competition
We can compare the price of KFC products with McDonald, Dominoes and
Pizza Hut. If the competitor provides the same product at a lower price
than the organization usually lowers the price of its product too. In the
case of KFC, Fried Chicken is its main selling point and controls a
monopoly over the Pakistan fast food market. It-prices its burgers, French
fries and soft drinks.
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Cost Based pricing
• KFC prices their product keeping different points in view.
• They adopt the cost base price strategy.
• Pricing of the product includes the govt. tax and excise duty and
then comes the final stage of determine the price of their product.
• The products are bit high priced according the market segment and
it is also comparable to the standard of their product.
• In the cost based method we include the variable and fixed cost.
Sales Price of per Chicken Piece = Total Retail Sales / chicken Pieces
sold = $8.9 Billion / $5.89
Billion =$1.51 we assume that Fixed Cost is = $6000000000
PLACE
This refers to how the product gets to the customer; for example, point-of-
sale placement or retailing. This third P has also sometimes been called
Placement, referring to the channel by which a product or service is sold
(e.g. online vs. retail), which geographic region or industry, to which
segment (young adults, families, business people), etc. also referring to
how the environment in which the product is sold in can affect sales.
KFC distribution
KFC has only one channel of distribution i.e. direct where the goods are
transferred to the consumer directly. KFC has no middlemen.
Target areas
Accessibility – Resulting in several outlets to cater to the needs of people
in & around the city.
Hectic lifestyle – Due to the hectic lifestyle of office goings individuals the
fast food concept saves time of preparing food and gives the customer a
full meal quickly.
Commercialization of urban and sub-urban markets leading to more mid-
sector people that find high-end eating joints too expensive. Mid-sector
people are always looking for change which KFC provides in their range of
fast food.
Quality conscious – people in urban areas are more conscious about the
quality of food than rural areas.
Urban areas are more populated therefore they help with attracting higher
revenues.
Placement of outlets
Due to KFC placing itself close to schools, colleges, cinemas and markets
which are mostly populated by the young and those who are in a hurry,
KFC enjoys a large number of footfalls every day.
CHANNEL PROCESS
KFC works on the flow of good operation techniques i.e. “Good Operating
Manager→ leads to “Good Team Selection →Good Services → Good Targets
→ Good Revenues through the following internal strategies:
• Training
• Incentive based targets
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• Recognition for good work
• Performance based bonus
• Employee benefits to keep them motivated
• Promotion
Conclusion
• KFC deals in internal market.
• Target only city areas
• KFC has well equipped sitting.
• KFC has no intermediaries.
• Well trained staff with expert supervisors.
• Seeking customer’s response for quality.
• KFC has no entertainment in some franchises.
• Quality conscious people are the main target of KFC.
Promotion:
Promotion is the method used to inform and educate the chosen target
audience about the organization and its products. Using all the resources
of promotion
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Advertising
• KFC by its advertisements derives the desire in the customer to
come and enjoy healthy food in their favourite restaurant.
• They spend 2% of its profits on advertisement and use print media
and most recently doing televised marketing to promote it products.
• Their advertising media involve: Newspapers, Pamphlets, Billboards
and Television. KFC does both the primary demand advertising
(“Become a Chicken Fanatic”) and the selective
• Demand advertising (e.g. “Zinger Meal”).
• KFC does institutional advertising to stimulate demand. When KFC
offers new products then it does product advertising.
• KFC’s ad’s act as counteracts which means to drive the customer to
KFC i.e. it uses pull advertising strategy.
• KFC has put big hoardings on the busy areas of India and have an
effective advertisement campaign on the media in order to
MOTIVATE its customers.
• The colours used in advertising are Red, White and blue which
itself is recognition for the brand.
Figure 5 – Print Ad
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Sales promotion
For the sales promotion KFC introduced their goods like watches, keychain
and so on to the customers.
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Figure 6 - Merchandise
Data Analysis
The data we received is as follows:-
I did a survey on KFC on people with age group of mostly 20-25yrs.Mostly
all were open to non-veg food, and following were the results. As seen
below KFC has shown a good report on all the micro factors that we
considered.
Figure 7 – graph 1
I also asked questions on whether they would like KFC to start home
delivery services.
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Figure 8 – graph 2
I also inquired “How close is the nearest KFC outlet from your
house?
Figure 9 – Graph 3
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Figure 10 – Graph 4
Data interpretation -
It is clear from the above report that a high number of people actually like
to order from their home or workplace rather than coming. This may be
due to more convenience, time shortage or just not willing to come and
dine. Certainly the home delivery market is huge and KFC can take well
advantage of the situation. Thus it would be in the best interest of the
company to start the service as soon as possible and capitalise on the
opportunity. KFC expects a rise in the orders by at least 20% by starting
this service.
Conclusion
After my research of KFC, I come to conclusion that KFC has a good
product as far as chicken items are concerned. But they have to increase
other varieties to attract the customers. And they must targets the
children, as McDonald’s targeting by making a play land because children
are the main source and important ones to push their parents to go to
their favourite restaurants. And one more aspect for KFC is that it must
also reduce their prices to compete their competitors like McDonald,
Crisps Pins and Pizza Hut. The largest threat KFC is faced with is the
restaurant industry as a whole. The consumer continues to have many
choices when it comes to fast food restaurants. KFC struggles are much
do to the inability to bring new products to the market quickly and its
innovation of new products. KFC fell behind the market in new products
and was copying other fast food chains to stay competitive.
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SUMMARY
KFC is one of the most known fast food chains in the world started in the
early 1930’s by kernel sanders.
· Food, fun and festivity, this is what KFC is all about.
· KFC has more than 11,000 restaurants in more than 80 countries and
territories around the world.
· KFC first time came to Pakistan in 1997 and was the title of being the
market leader in its industry.
· The marketing mix of KFC consists of 4Ps. It contains everything KFC do
it to influence the demand for their products.
· KFC was launched here as an innovative product.
· KFC has a head-on competition with McDonalds
· The brand of KFC is so strong that it is the attribute itself.
· KFC introduced itself, has grown and now it is at maturity stage for the
last ten years in India.
· Their products have high price and targeted only upper class.
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· Total KFC Chicken Pieces Sold Annually = 5.89 Billion
· Profit Margin is Or Mark Up = $225000000
· KFC has only one channel of distribution (direct)
· KFC by its advertisements derives the desire in the customer to come
and enjoy healthy food in their favourite restaurant.
· They spend 2% of its profits on advertisement.
· KFC has a good product as far as chicken items are concerned.
APPENDIX
FEED US BACK
1. Tick Your Choice (Ö)
Perfect Above Avg Average
Below Avg Poor
Food Quality
Food Temperature
Waiting Time
Menu Board
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Seating
Arrangement
Restaurant
Temperature
Restaurant
Cleanliness
Music
Overall Experience
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Thank You
BIBLIOGRAPHY
Websites
www.kfc.com
www.marketingpractice.blogspot.com
www.hindu.com
Book references
• 4Ps magazines
• Advertising Express
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