KENTUCKY FRIED CHICKEN

Swapnali, Bhagyashree, Lokesh, Apoorva, Christine, Saurabh & Zeeshan

AGENDA
Introduction about KFC

KFC in Brazil
KFC in Japan KFC in USA

KFC in China
KFC in Pakistan Conclusion

TARGET MARKET: BRAZIL

87% urban population Over 50% of population is under the age of 30

Hits the key demographic for KFC

THE TARGET MARKET

Large gap between the rich and poor

26% population live below the poverty line

Obesity Rate: 11% 52nd out of 70 ranked nations in the world

Generally a healthy nation

Consumer expenditure on food in millions 2011: $ 190,598.8

Expected for 2012: $ 199,582.2

THE TARGET MARKET

Consumer behavior Brazilians have good culinary sense Strong food and drink traditions Growth in Brazilian economy

Emergence of a larger middle class with higher income

per person Consumers to spend more on indulging themselves, rather than restricting their spends to basic necessities
Brazilians are spending more on eating out Seeking convenience

FOREIGN MARKET ENTRY METHOD

100% franchised in Brazil
Aligned with BFFC (Brazil Fast Food Corporation)

Marketing Strategies adopted Joined a strong franchise within the market They already know the Brazilian culture and marketplace BFFC knows the tastes and culture of the food industry

Entered in the first quarter of 2007 with 4 restaurants

in Rio De Janeiro Currently there are 18 locations

5 in Sao Paulo 13 in Rio De Janeiro

MAJOR MARKETING STRATEGIES

Aligned with BFFC Balance Standardization and Localization E-customer relationship management

 Wagner Rodrigues Executive Officer of YUM! Restaurants International

in Brazil With Brazil Fast Foods extensive knowledge of the Brazilian fast food market, we believe that it is the perfect company to entrust with the continued growth, development, and consolidation of the KFC brand in

Brazil.

THE MARKETING MIX

Product Promotion Price Place

PRODUCT STRATEGY
Description
Global leader in chicken fast food

Quality: focus on improvements Health aspects

KFC has re-launched its grilled chicken menu in the US, which

is aimed at satisfying consumers' needs for health and convenience.

Brand Name: Internationally known Kentucky Fried

Chicken Branding
Colors: red and white

Image: Adaption verses Standardization

Doesnt want to lose brand image Standardizing of some products, but also tailoring to

KFC PRODUCTS: MENU IN BRAZIL

Core products same as the U.S. (original, extra

crispy)
Unique dipping sauces to adapt to local taste

Culturally unique products Farofa, black beans, parmiggano sandwich, I-Twist

PRICE STRATEGY
Standard of living
Optimism: Majority of citizens believe it is improving

Exchange rate: 0.52 Real = $1.00 Competitive pricing

Value pricing strategy: provide the best value per

competition Par Value Pricing: pricing is based on the competition

Brazil pricing
Brazil: 20 Reals, For 6 pieces of chicken

PLACE/DISTRIBUTION
Distribution
Goods direct to consumer In store Drive through Delivery Franchisees place food orders through BFFCs

procurement department
Suppliers
Pilgrims Pride, Perdue Farms, Tyson Foods Prefer to supply from within the country but use contingency

plans to ensure quality

Currently, 18 locations in Brazil

PROMOTION
Advertising Strategy
Brazil advertising is known for

creativity and innovativeness (AEF) Brazilians desire entertaining advertising Most desired advertising is during soccer games Emphasize physical beauty Billboards, signs in the streets also utilized Emphasize price and convenience
Combining meals and discounts

WHY JAPAN?
Japan is a Fast-food Market.
Japan is a rich, populous country of some 120

million.
Japan is the restaurant capital of the world,

with one eating establishment for every eighty-one people.

PRODUCT
They offer sesame and soy sauce flavor fried

chicken.
KFC Japan offers a panko fried salmon

sandwich.

Cont.
There are only medium and small sized drinks

(called "S Size" or "M Size" as is common in all Japanese fast food restaurants). Yuzu dry spiced fried chicken (Yuzu is a citrus fruit common in Japan, sort of like a cross between a lemon and a lime).

PLACE
Kentucky Fried Chicken began its operation with

two test operations,one at Expo in Osaka, the other in a Tokyo department store.
The Expo outlet broke records: Sales there reached

$100,000 a month.

PROMOTION
Kentucky Fried Chicken in Japan spends $5

million a year on television commercials alone.

The account is handled by a joint venture, this

one between a Japanese advertising firm and the McCann-Erickson agency.

MAJOR MARKETING STRATEGEIS IN JAPAN

PERSONNEL DEVELOMENT STARTEGY
Another aspect of the company's marketing effort is its

extensive training of employees When they start, they get nine days of basic operation training and four days of on-the-job training The purpose of the training is not only to develop skills but also to create company loyalty

JOINT VENTURE STRATEGY

Shortly thereafter KFC set up a fifty-fifty joint venture

with Mitsubishi, the giant Japanese trading company.

Mitsubishi could guide KFC through the Japanese

bureaucracy, making sure it complied with applicable laws and followed appropriate customs.

TARGET MARKET OF USA

Typical customers are adults ages 25-54 who are

occupation ranging from white collar office job to blue collar construction job. The biggest part of their customer base makes between $50000 to $60000 a year and married with children.(upper middle class) This customers are living fast paced life in which they have to balance the heavy demand of work and life. As a result of this lunch and dinner occasions are becoming shorter and the thing that has the greatest impact on their choice of food and drink purpose of convenience.

PRODUCT STRATEGY
Product variation
Product differentiation Product innovation Product elimination

PRICING STRATEGY
Cost recovering pricing
Penetration pricing Price skimming

PLACE/ DISTRIBUTION
Distribution channel
Direct sales Indirect sales E- commerce Free home delivery

PROMOTIONAL STRATEGY
Individual communication
Mass communication Brand management Corporate identity (public relation, events and experience

coupon discount and bundled packages.)

Push strategy: to help Awareness Be different Sound attractive Reminder advertisement Market penetration (global expansion)

COMPETITORS
Popeye's and Chik-Fil-A both focus on chicken,

but essentially every fast-food outlet offers some sort of chicken sandwich. Also, all fast-food places compete for the general "quick meal" customers.

INTRODUCTION
Kentucky Fried Chicken has been one of the most

household international brands in urban China since it opened its first Western-style quick service restaurant in Beijing in 1987. As the present largest fried chicken restaurant company in the world, KFC aims China as the most promising market and succeeds in its localization strategies in the huge China market. The most prominent success achievements of its keen perception of cross-cultural marketing and its understanding of Chinese culture. There is no doubt that China has become the highestgrowth market of Kentucky Fried Chicken.

CULTURE OF CHINA
Chinese culture is one of the world's oldest. The area in which the culture is dominant covers a large

geographical region in eastern Asia with customs and traditions varying greatly between towns, cities and provinces. Important components of Chinese culture include literature, music, visual art, Martial arts, cuisine, etc.

Culture

Language

Values

Consumer Behavior

FOOD CULTURE OF CHINA

Chinese consumers behavior.
a. b. c. d.

e.
f.

Centuries of adaptation have created a wide range of lifestyles and behaviors, particularly in densely-populated urban areas. As a result, it is not practical to treat the population of China as a single consumer market. Chinese consumers are now poised to develop new tastes and demand more global food. Chinese consumers are both savvy and discerning, however, they tend to exhibit preferences and behaviors that are rooted in the rich cultural traditions of Chinas past. Chinese consumers are becoming more affluent and this is influencing both lifestyle and diet in China. Chinese consumers are enjoying a wider variety of both fresh and processed foods of domestic and international origins.

 PRODUCT

KFC provide food that can be prepared and served quickly. Each menu is made of a large scale of products based on

a main product: chicken, standard ingredients like potatoes and corn. A regular meal consists in a Hamburger or Chicken nuggets, some French fries, a soda and it can be add a dessert. In China they have adapted their product to the local consumers preference. They chose a strategy to cover all the moment of the day. For Breakfast they propose some specific Burger or a Chinese porridge. For the other meals, they also have created some specific products fitting with the Chinese culinary taste.

 PLACE
Each 22 hour a new KFC is opening in China. KFC try to personalize each store regarding the region in which

it will be implanted. The decoration is composed by symbolic signs like picture of the Great Wall of china.
PRICE
Around 20 Yuan for a bowl of soup and approximately

50 yuan for a combo meal.

 PROMOTION
The creative and vivid advertisement pictures of KFC in

China already gives an impression of how elaborately KFC promotes its products.
The clear message is that KFC has something to offer for

every taste.
There are advertisements everywhere, not only in TV

programs, but also on the streets, in the elevator; there are even coupons in newspapers.
The Chinese virtues and emotions as patriotism, respects

to the elder, cherishing the young, sincere friendship and romantic love are the major subjects of KFCs campaigns.

OTHER STRATEGIES
Multi- domestic strategy

- Menu differentiation & Upscale experience. Superior Internal distribution System - Economies of scale & Quality Control. Target Youth Market. Extensive Employees Training. Localization Strategies. Product strategies. Online Ordering. An eat at Home experience.

ABOUT KFC IN PAKISTAN

KFC provides the ultimate chicken meals for a

chicken loving nation. At KFC we can proudly say, We do chicken right. Presently KFC is branched out in thirteen cities of Pakistan (Karachi, Lahore, Rawalpindi, Faisalabad, Multan, Peshawar, Sialkot, Hyderabad, Islamabad, Gujranwala, Jhelum, sukkur and Murree) with 45 outlets nation-wide. In Pakistan totally Chicken buy from Pakistani Poultry Forms, and also this Chicken is 100% Halal.

MARKETING STRATEGIES
Generally there is no age limit which is focus by the KFC. they were focusing on single segment that was through

Niche Marketing by offering Combo Deals. KFC has put big hoardings on the busy areas of Pakistan. KFC have an effective advertisement campaign on the media in order to motivate its customers The colors used in advertising are Red White and Blue which itself is recognition for the brand.

 KFC have joint sale promotions with different

companies like HP, Philips, Value Meals, Pepsi-Cola. PSO had made a scheme in which PSO had given the coupons of KFC having 10% off. KFC does competitive advertisement with its head on competition with McDonalds. KFC sponsors many NGOs and other social welfare organizations. They also offer different deals according to the season and occasion. KFC in its ads try to convert people to people who eat boring bland fast food over to KFC.

PRODUCT
Product planning-

Their product is classified as consumer product as it has no intermediates. Product strategyKFC has got one product line but later they introduced products in the same line to protect their market share. Product lineKFC product line includes all chicken based products.

PRICE
Their products were high price and targeted only

upper class. . Price is determined according to the rates of the raw materials and policies of the Govt. Gradually they trickle down focusing on the middle class to penetrate the market. The political and legal forces often affect the policies of KFC and eventually results in change of prices that is due to imposing of taxes.

PLACE
KFC has only one channel of distribution i.e.

direct where the goods are transferred to the consumer directly.

KFC launched its first mobile unit, which took

the streets of Karachi by storm.

Distribution of Consumer Goods and Services

PROMOTION
Their advertising media involve: Newspapers,

Pamphlets, Billboards and Television. They give informative messages like Faryad: Keep the city Clean. Product advertisement. KFC have joint sale promotions with different companies.

CONCLUSION
After conducting an analysis of the various marketing

strategies adopted by KFC across the globe, the following conclusions are drawn KFCs competitive situation is not that much intense. 2. It has established an image in customers mind that work protection against competitors. 3. According to their marketing manager, 90% of customers are loyal so they are doing well to retain and sustain the customers 4. They have largest fast food industry market share in Pakistan but in Lahore their market share is lower as compared to Mc Donald.
1.

5. The real strength of KFC in the view point of its

management AND ACCORDING TO CUSTOMER PERCEPTION lies in its physical environment. they want their customers to feel positive change every time they enter into restaurant. 6. KFCs ultimate goal is customer satisfaction. According to the marketing manager, competent employees are the way to success. 7. KFC is a market oriented organization as it caters to both customer needs and competitor moves.