KFC Strategies

KFC Strategies
Marketing Management report
SZABIST
May 15, 2010

Authored by: Imran Umer,
Afroze Charania and Mitra Ghadimi
KFC Strategies
Table of Contents
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TABLE OF CONTENTS...........................................................................................................2
ABOUT KFC.................................................................................................................... 5
INTRODUCTION................................................................................................................... 5
KFC IN PAKISTAN:......................................................................................................7
ABOUT CUPOLA:................................................................................................................8
CUPOLA PAKISTAN:........................................................................................................... 10
KFC FACTS:.................................................................................................................. 11
DEMOGRAPHICAL FACTORS:...............................................................................................12
AGE:.....................................................................................................................13
GENDER:................................................................................................................13
HOUSEHOLD SIZE:..................................................................................................... 13
POPULATION:............................................................................................................13
ECONOMICAL FACTORS:...................................................................................................13
INCOME:................................................................................................................. 13
CONSUMPTION BEHAVIOR:.............................................................................................14
PAYMENT METHODS:...................................................................................................14
TECHNOLOGICAL FACTORS:...............................................................................................14
PACE OF CHANGE:..................................................................................................... 14
RESEARCH & DEVELOPMENT:.........................................................................................14
CAPITAL FORMATION:.................................................................................................. 14
POLITICAL FACTORS:.......................................................................................................15
GOVERNMENT POLICIES:...............................................................................................15
PRICE POLICIES:........................................................................................................15
POLITICAL STABILITY:...................................................................................................15
ETHICAL/LEGAL FACTORS:................................................................................................15
BUSINESS LAW:........................................................................................................ 16
SOCIAL RESPONSIBILITIES & ETHICS:................................................................................16
SOCIAL/CULTURAL FACTORS:.............................................................................................16
SOCIAL CLASS:........................................................................................................ 16
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CULTURE:............................................................................................................... 16
RELIGION:............................................................................................................... 16
MARKETING STRATEGIES:.....................................................................................................17
KFC TARGET MARKET:...................................................................................................17
AGGREGATION STRATEGY:.................................................................................................17
MARKET SEGMENTATION:..................................................................................................... 17
BENEFITS:.................................................................................................................. 17
PURPOSE:
.............................................................................................................................. 18
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KFC Strategies
WANT SPECIFICATION:..................................................................................................... 18
CONSUMER MARKET SEGMENTATION:........................................................................................18

REGIONS:...................................................................................................................18
GEOGRAPHICAL:............................................................................................................ 18
May. 15 BARKET MARKET:.............................................................................................................19
DEMOGRAPHICS:...........................................................................................................19
PSYCHOGRAPHIC:...........................................................................................................20
BEHAVIORAL:............................................................................................................... 20
BUSINESS MARKET SEGMENTATION:..........................................................................................20
CUSTOMER LOCATION:.....................................................................................................20
CUSTOMER TYPE:...........................................................................................................20
INDUSTRY:...............................................................................................................21
SIZE:........................................................................................................................ 21
PURCHASE CRITERIA:.......................................................................................................21
TRANSACTIONS:............................................................................................................21
MARKETING MIX:.............................................................................................................21
PRODUCT:..................................................................................................................... 22
PRODUCT PLANNING:.......................................................................................................22
PRODUCT STRATEGY:...................................................................................................... 22
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PRODUCT LINE:............................................................................................................. 23
PRODUCT MIX STRATEGY:.................................................................................................24
PRODUCT MIX EXTENSION:................................................................................................25
CONTRACTION:............................................................................................................. 26
CHANGE IN PRODUCT POSITIONING:.......................................................................................26
PRODUCT LIFE CYCLE:..................................................................................................... 26
MANAGEMENT IN INTRODUCTION STAGE:.................................................................................27
PRODUCT BRANDING, PACKAGING, LABELING:.............................................................................27
KFC BRAND:................................................................................................................. 27
BRAND EQUITY:...............................................................................................................28
BRANDING STRATEGY:........................................................................................................28
COMPLEMENTARY BRANDING:.................................................................................................28
PACKAGING STRATEGY:....................................................................................................... 28
LABELING:..................................................................................................................... 29
PRICE:......................................................................................................................... 29
KFC PRICING STRATEGY:..................................................................................................29
PLACE:......................................................................................................................... 29
DISTRIBUTION CHANNEL:..................................................................................................29
DISTRIBUTION OF GOODS:.................................................................................................29
INTENSITY OF DISTRIBUTION:..............................................................................................30
VERTICAL MARKETING STRATEGY:.........................................................................................30
PROMOTION:...................................................................................................................30
KFC PUBLICITY IN GUNNIES BOOK OF RECORD:............................................................................32
QUALITY ASSURANCE:.........................................................................................................33
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KFC Strategies
FOOD SAFETY:................................................................................................................. 33
CHICKEN & ITS PRODUCTS:..............................................................................................33
KFC NUTRITIONAL INFORMATION:...........................................................................................34
SWOT ANALYSIS:............................................................................................................ 35
STRENGTHS:................................................................................................................35 2010
WEAKNESS:................................................................................................................ 35
OPPORTUNITIES:............................................................................................................36
THREATS:...................................................................................................................36
CONCLUSION:.................................................................................................................. 36
PERCEPTION:.................................................................................................................. 37
RECOMMENDATIONS ..........................................................................................................37
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KFC Strategies
May. 15
KFC Strategies
Marketing Management report
About KFC
Introduction
KFC Corporation (KFC, founded and also known as Kentucky Fried Chicken) is a
chain of fast food restaurants based in Louisville, Kentucky in the United States. KFC
has been a brand and operating segment, termed a concept[2] of Yum! Brands
since 1997 when that company was spun off from PepsiCo as Tricon Global
Restaurants Inc.
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KFC primarily sells chicken pieces, wraps, salads and sandwiches. While its primary
focus is fried chicken, KFC also offers a line of grill and roasted chicken products,
side dishes and desserts. Outside North America, KFC offers beef based products
such as hamburgers or kebabs, pork based products such as ribs and other regional
fare.
Kentucky Fried Chicken (KFC)- one of the most known fast food chains in the world
started in the early 1930's by Kernel Sanders in the Southern USA as a small
franchise operation. Colonel Sanders has become a well known personality
throughout thousands of KFC restaurants Worldwide. Quality, service and
cleanliness (QSC)represents the most critical success factors to KFC's global
success.
Food, Fun & Festivity, this is what KFC is all about. Leading the market since its
inception, KFC provides the ultimate chicken meals for the Chicken Loving Nation.
Be it Colonel Sanders secret Original Recipe Chicken or the Hot & Spicy version,
every bite brings a YUM on the face. At KFC we proudly say:
KFC has more than 11,000 restaurants in more than 80 countries and territories
around the World. In 1971, Heublein, Inc. acquired KFC, soon after, conflicts
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KFC Strategies
erupted between the Colonel (which was working as a public relations and
goodwill ambassador) and Heublein management over quality control issues
and restaurant
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KFC is part of Yum! Brands, Inc., however in the case of Pakistan KFC build the
relation of Quality Service and cleanliness for Customer
KFC was acquired by PepsiCo in 1986, it had grown to approximately 6,600

units in 55 countries and territories. Due to strategic reasons, in 1997
PepsiCo spun off its restaurant businesses (Pizza Hut, Taco Bell and KFC)
“We Do Chicken Right”
Perfecting its secret recipe of 11 herbs and spices in 1939, KFC has come a long
way, with over 10,000 outlets in the world; KFC has maintained its title, for the last
60 years, of being “The Chicken Experts”.
Kentucky Fried Chicken has become KFC. Does anybody know why? We thought the
real reason was because of the "FRIED" food issue. It's not. The reason why they call
it KFC is because they cannot use the word chicken anymore. Why? KFC does not
use real chickens. They actually use genetically manipulated organisms.
These so called "chickens" are kept alive by tubes inserted into their bodies to
pump blood and nutrients throughout their structure. They have no beaks, no
feathers, and no feet.
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KFC Strategies
Their bone structure is dramatically shrunk to get more meat out of them.
This is great for KFC because they do not have to pay so much for their
production costs. There is no more plucking of the feathers or the removal
of the beaks and feet.
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KFC in Pakistan:
Presently KFC is branched out in eighteen major cities of Pakistan (Karachi, Lahore,
Gujranwala, Sukkur & Muree) with more than 60 outlets nation-wide.
Opening the first KFC outlet in Gulshan-e-Iqbal, Karachi in 1997, and KFC wore the
title of being the market leader in its industry. Serving delicious and hygienic food in
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a relaxing environment made KFC everyone’s favorite. Since then, KFC has been
constantly introducing new products and opening new restaurants for its customers.
In Pakistan totally Chicken buy from Pakistani Poultry Forms,and also this Chicken
is 100% Halal.
Apart from fulfilling our commitment of serving delicious, fresh and hygienic food
and at the same time providing our customer with the ultimate entertainment; KFC
also plays in the economics development of our country.
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KFC Strategies
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About Cupola:
Cupola is a Dubai based multinational company involved in several business

including, oil gas exploration, plastic cards, retail markets and food franchising.
Our Vision:
Cupola creates value through change, challenging existing paradigms and by
applying vision, innovation and skilled execution. We seek opportunities for
investment where others do not look and we examine these opportunities with
open-mindedness, thoroughness and hard-headed practicality.
Our Mission:
Our mission is to harness and reap the potential of the rapidly developing markets
of the Arabian Peninsula and South Asia. We apply a regional focus to allow us to
reap the potential of rapidly expanding markets in the Arabian Peninsula and South
Asia. In the mature capital markets of Europe and the United States, we are well
regarded as innovative and creative niche investors. We believe in the minimization
of risk: through the depth of our senior management and the quality of our
professional staff; through exhaustive and through an emphasis on pre-feasibility.
What everyone in Cupola shares is an almost obsessive drive for quality, an active
consciousness of the team approach and a commitment to our collective success.
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KFC Strategies
We strive continually to improve the tangible and intangible returns for all our
stakeholders.
May. 15 The principal Of Cupola:
Credibility: Being regarded by our stakeholders as being a reliable source of

knowledge.
Character: Conducting ourselves with honesty, integrity, and spirit.
Communication: Facilitating free flow of information about our activities. Always

voicing our opinion and sharing our concerns.
Creditworthiness: Total honesty in our business dealing, as financially responsible

partners, advisors and employers.
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Commitment: Always seeking to be true to our word, but doing what we do with
energy and determination.
Capacity: Constantly seeking to reinforce and build our capabilities to the point of
always exceeding the exceptions of others, but always doing so as part of a team.
Coherence: Being clear to the point of transparency at all times.
Conscientiousness: Striving for excellent- we believe that there is no shortcut to

hard work.
Charisma: Seeking to stand from the rest and employing people who do.
Conceptual: Thinking with clarity, imagination and communicating this clearly.
Caring: Doing what we do with a deep commitment to quality and bearing in mind
the opinions of others.
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Community: Believing that we have a deeper role to play than just being business
people and returning some of the rewards that we reap.
Our Activities: 2010

The Cupola group is an Asian Development capital and Operating Group. The group
has offices in United Arab Emirates, United Kingdom, Switzerland and Pakistan. The
Group’s head office is in Dubai. Cupola’s activities are conducted through four
clearly defined business groups.
Capital Group
Industrial Group
Consumer Group
Information Group
The Activities of the company are regionally focused, but various projects and
strategic investments are undertaken in Europe and North America to take
advantage of capital accessibility and niche growth opportunity.
Cupola Pakistan:
Cupola holds the master franchise rights to operate KFC in Pakistan since 1999.
That was a major difference that when Cupola takes complete Operate in Pakistan
that was only 05 Outlets in allover Pakistan, and then Now the major difference
that Cupola takes 45 Outlets in Pakistan.
Cupola Pakistan is the Cupola Group’s Operational focus in Pakistan. A leading

name in the Food & Retail sector, Cupola Pakistan has been at the forefront of
development in this sector for over a decade. Its flagship brand KFC has amassed
itself as the dominant concept in the Quick Service Restaurant (QSR) business in the
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KFC Strategies
country. In addition a host of concepts have been successfully developed and are
being managed by the company. These are:
May. 15
• Indulge – Casual Dining

• Casa – Gourmet Baker
• My Super Store / My Store – Supermarket & Convenience Stores
• Lal Qila – Franchise stores outside Karachi
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KFC Facts:
Apart from fulfilling the commitment of serving delicious, fresh and hygienic food
and at the same time providing the customers with the ultimate entertainment; KFC
also plays part in the economic development of our country.
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1. Presently KFC has provided employment to over 1200 Pakistanis, which adds
up to 6000 individuals directly dependent on KFC Pakistan.
2. The Government of Pakistan receives over Rs.10 to 11 million per month from
KFC Pakistan as direct taxes. 2010
3. 95% of all food and packaging material used in KFC Pakistan is procured
locally, which sums up to a purchase of over Rs.35 million per month.
4. Each new outlet developed by KFC Pakistan costs approximately Rs.40
million, which is a huge amount for our construction industry.
5. Annual turn over in Pakistan 2.5 billion.
6. KFC doesn’t buy its supplies from Pakistan
KFC and Pakistan…Growing Together.
“KFC and Pakistan…Growing Together”

Demographical Factors:
Following factors included in the demographical factors of the pest analysis of KFC:-
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KFC Strategies
Age:
Generally there is no age limit which is focus by the KFC. They target & focus on
May. 15 each and every age of the society. But for somehow in our opinion they target
heavily on the youngster as compared to the middle & old age. Generally 6-65.
Gender:
In this case they generally focus on the both Males & Females of the society &
similarly target them.
Household Size:
Household size plays a vital role in the demographical factor of KFC. Generally they
target the whole family not a single family members. That’s why he introduced
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many family packages meals. Family size 2-3,3-4 and 5+.
Population:
Population also plays a vital role in the demographical factor of KFC. In the light of
this population they can make their strategy.
Economical Factors:
Following factors are included in the economical factors of the KFC:-
Income:
Income is an important economical factor of the KFC. This factor decides which
class KFC is going to target. In the early time of KFC they focusing on the upper
class but they introduce some meal through which we can say that they target the
middle & the upper level as well. Generally income of family is above 25000 Rs per
month.
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Consumption Behavior:
KFC also estimated the consumption behavior of the people, their liking and
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disliking and make decision accordingly.
• Taste conscious
• Quality conscious
• Class
Payment Methods:
Payment method is an important factor in the economical factor of the KFC. They
check the behavior of the regarding the payment methods of the people. They
check whether the gives money in the form of cash or plastic money.
Technological Factors:
Following are the factors included in the technological factor of the KFC:-
Pace of Change:
Pace of change mean rate of change. KFC has strategy to introduce new technology
whenever they think that it is a time to introduce new technology.
Research & Development: KFC Strategies | 5/15/2010
Research & Development is also an important factor in the Technological factor.

KFC always support the work of research & development in order to introduce the
new technology.
Capital Formation:
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Capital formation means stock of machinery. KFC has a stock of machinery in order
to run its business activities. In other words KFC has a good amount of Capital
Formation.
May. 15
Political Factors:
Following are the factor involve in the political factors of the KFC:-
Government Policies:
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Although KFC is a foreign company, but they have to obey the policies of the
Government where he run its business activities. KFC has handle this situation very
tactfully and obey the policies of the Government as prescribe by the government in
order to run this kind of business.
Price Policies:
Price policies is also an important factor. KFC maintain & design its price policies
keeping in view the income & income distribution of the people living in the country.
That’s why all the classes are the target market of KFC.
Political Stability:
Political stability is very important if KFC want to become the leader in fast food
business in Pakistan. So this is also an important political factor.
Ethical/Legal Factors:
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Following are the important factors which is included in the ethical/legal factor of
the KFC:-
Business Law:
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Just like the Government Policies the business units which is working in Pakistan
also regulate the law regarding the nature of business. KFC also fulfills this factor.
Social Responsibilities & Ethics:
Social Responsibilities & Ethics are the important factor. KFC tries his level best to
this factor.
Social/Cultural Factors:
Social/Cultural Factors includes the following things:-
Social Class:
As we discuss earlier that KFC target all the class including the upper class, upper
middle and lower middle class etc.
Culture:
Though the culture of KFC from where they come is different but they adopt the
Pakistani culture also.
Religion:
KFC not only adopt the Pakistani culture but also the Religion as well. They offer
Halal foods to the customers, which is the symbol that they adopted the Muslim
religion.
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KFC Strategies
May. 15
Marketing strategies:
KFC Target market:
KFC targets the young generation, as here in this country the young generation is
more towards eating out and is more energetic. It targets the early single segment
that is the upper class and upper middle class.
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Aggregation strategy:
KFC does not need aggressive marketing or advertising because Brand is strong
enough and brand awareness has been there over a long time.
Market segmentation:
Previously they were focusing on single segment that was through Niche
Marketing by offering “Combo Deals”. Now they are focusing more on
other classes as well. They are dealing in masses by introducing value deals;
most recently introduced “Zinger Junior”.
Benefits:
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KFC Strategies
Colonel’s value combo meals introduced previously were expensive and so there
were less sales but through their recent offers, they have increased the sales by
offering low prices.
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Purpose:
Inflation highly affects the purchasing power of the customers. And here the
purchasing power of many customers is low. To cover this major segment,
they have introduced affordable meals, so that it is in reach of the masses.
Want specification:
The people here need a friendly and family restaurant, which must be affordable for
them.
Consumer market segmentation:
Regions:
Karachi, Lahore, Rawalpindi, Faisalabad, Multan, Peshawar, Sialkot, Hyderabad and

Islamabad
Geographical:
Lahore:
1. Gulberg:
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KFC Strategies
a. The main Gulberg branch is situated on M.M Alam Road, which

covers a wide area and serves a large number of customers. This
restaurant faces competition with many top Fast Food
restaurants located on the same road.
May. 15
2. Defence:
a. Their Defence Branch in H-Block focuses the potential customers
of Defence.
Barket Market:
b. This branch covers the area of Model Town, Johar Town, Muslim Town,
Garden Town and Faisal Town. It is situated among many offices and
banks.
3. Cavalry Ground:
a. This branch is located in the main commercial zone of Cavalry ground
and mainly serves a large number of customers of cavalry ground and
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Cantt.
4. Shadman:
a. The Shadman branch is located on Jail Road and serves potential
customers.
5. Thokar Niaz Baig:

a. This restaurant branch serves latent customers.
6. Mall Road:
a. It serves a large commercial and business area of Mall Road.
Demographics:
1. Age:
a. There is no age limit. It focuses on people lying under every age group.
2. Gender:
a. Focuses both genders.
3. Family life cycle:
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KFC Strategies
a. It focuses on the whole family.

4. Social Class:
a. Upper class, upper middle and lower middle classes are focused.
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Psychographic:
1. Personality:
a. Ambitious, self-confident and extrovert.
Behavioral:
2. Benefits Desired:
a. Taste and value for money.
b. (Satisfaction > Expectation)
Business market segmentation:

Customer location:
All restaurant branches are located in accordance with customer’s convenience.

Like: Gulberg, Defense, Barket Market, Cavalry Ground, Shadman, Thokar Niaz Baig
and Mall Road.
Customer type:
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KFC Strategies
Industry:
•
May. 15
KFC specializes in Chicken Based Products.
• It has high sales volume as they have great turnover. New outlets are being
opened because they have greater sales volume (as per day worth 4.5 million
is being consumed).
Size:
There are 35 branches with 6,000 employees including Restaurant Supporting

Centers.
Purchase criteria:
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Main emphases are on quality and lead time (i.e. the time taken to receive the
purchased Product). Quality is not compromised on price.
Transactions:
• Buying Situation:
a. Warehouse orders and Straight Re-buy.
• Usage rate:
a. Heavy users.
• Purchasing procedures:
a. Building = Leased
b. Vendors = Monthly credit
Marketing Mix:
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KFC Strategies
Marketing mix consists of 4P’s. It contains everything a firm can do to influence the
demand for its product. The 4P’s are:
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• PRODUCT
• PRICE
• PLACE
• PROMOTION
Product:
Product planning:
• Their product is classified as consumer product as it has no intermediates.

• KFC offers specialty goods.
• The stock turn over of KFC is high.
• Price and quality of the product is always compared.
• Their product includes
• Goods (Burgers, Chicky Meals etc)
• Services (cleanliness, quick service, parties, and meetings).
Product strategy:
Launching of a franchise like KFC in Pakistan can be considered as an innovation.

Initially, KFC started off with one product line but eventually they moved on to
introducing different products in the same line. This was done to protect their
market share. KFC generates new product ideas from:
• Customer services (comments cards)
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KFC Strategies
• Gallops survey (mystery shoppers)
New product innovation is always decided by the Quality Assurance department of

May. 15
KFC. Quality Assurance department prepares screening of new ideas and product’s
feasibility report. This department does the technical evaluation (whether it is
practical to produce the new product or not). These products are tested externally
by offering trials to customers by giving them free samples. KFC uses
telemarketing, print media, billboards and most recently televised marketing for
promotion. Marketing strategies of KFC are becoming very popular these days.
KFC adds a new product in its present assortment based on
• Their competitors
• Product’s adequate demand
• The satisfaction of key financial criteria
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• Its compatibility with environmental standards
Product line:
KFC product line includes all chicken based products.
Burgers:
• Zinger Burger
• Colonel’s Chicken Burger
• Colonel’s Fillet Burger
• SUB60
• Zinger Jr.
Chicken:
• 1 piece
• 2 pieces
• 5 pieces
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KFC Strategies
• 10 pieces
Combos:
2010
• Chicken Meals
• Sandwich Meals
• Family Meals
Desserts & Beverages:
• Fruit Salad
• Regular & Large Drink
• Regular & Large Mineral Water
• Tea
• Scoop of Walls Ice cream
• Coffee
Snacks & Side Orders:
• 5 & 20 Pieces Nuggets

• Arabian Rice
• 5 & 10 Pieces Hot wings
• Dinner Roll
• Regular & Large Fries
• Hot Shots
• Corn on the Cob
• Hot & Crispy Soup

• Cole Slaw
Product Mix strategy:
The product mix strategies deals with:
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KFC Strategies
Competitors:
The biggest competitor of KFC is McDonalds. Although, they serve different products
but they still are each other’s biggest competitors. So whenever McDonalds place
May. 15 their products; KFC goes there as well.
Locally in Pakistan KFC face a close competition

with the local brands like AFC (Al-Baik Fried
Chicken), Fried Chicks, Dixy Chicks etc which are
producing more or less the same product as KFC.
Most of these local brands are in Pakistan before the
launch of KFC but still KFC have much higher
market share then these local brands.
Attributes:
The brand KFC is so strong that it is the attribute itself.
Place and Quantity:

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KFC products are based on high quality and prices.
Product Mix extension:
• Line Extension:
o Through introducing new meals offers.

• Alteration of existing products:
o Quality Assurance department does it. The department decides which
product should be sold and when. KFC also offers seasonal products
such as rice and soups are mostly offered in winters.
• Functional modification:
o It is also decided by the Quality Assurance department to introduce
new recipes.
• Quality modification:
o KFC has moved to masses rather than the original recipe.
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KFC Strategies
Contraction:
2010
There are situations when the new deals or offers are not sold as expected. Then
Quality Assurance department replaces the previous offers and introduces new
offers.
Change in product positioning:
When KFC products were introduced in Pakistan they were first offered to upper
socio-economic group. Later, the company started introducing discounts and
lowered their price deals. Therefore, now they are now dealing in masses. So, KFC
has traded down. In doing so KFC has used the same brand name and same high
quality product.
Product life cycle:
KFC introduced itself, has grown and now it is at maturity stage since the last ten
years in Pakistan.
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KFC Strategies
May. 15
Management in introduction stage:
Entering in the new market was not a big problem for KFC. As it is a well-known
international brand. In that stage they did promoted through their own brand. Their
promotion statement was “KFC in Pakistan”. Management in the initial stage had
to make policy for head-on competition with McDonald’s. It opened its new branches
all over the country and it also improved product line.
In the maturity or the present stage of KFC it makes more promotion and focuses
on aggressive competition with McDonald’s (as McDonald’s
“Midnight Madness” vs. KFC “No Madness”). It also extended
product line by introducing new product items.
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Product Branding, Packaging, Labeling:
Brand Name: KFC
Color: Red, white
Symbol: Colonel Harland Sander’s picture and KFC

written with it.
Master Brand: The brand itself is so dominant, that it

immediately comes in mind.
KFC Brand:
• KFC's brand identity -- the logo features Colonel Harland

Sanders, one of the best-recognized icons in the world.
• KFC is trademarked registered brand.
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KFC Strategies
• It is distinctive, adaptable to addition to product line.

• It suggests something about product.
• It is legally protected and registered.
2010
Brand equity:
The brand equity is very high as the value added by brand to the product effects
the product selling.
Branding strategy:
KFC is marketing the entire output under products own brand.
Complementary branding:
Pepsi & Nescafe.
Packaging strategy:
KFC makes its own disposable packaging. If they need promotion Pepsi contributes
in improving the packaging quality. KFC does family packaging.
They use paper material for packaging to avoid health hazards and environmental
pollution.
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KFC Strategies
Labeling:
KFC does brand labeling. Some of its products also have informational labels such
May. 15 as Halal, Veggi Burgers and Chicky Meals.
Price:
KFC pricing strategy:
In introduction stage KFC entered the market using market-skimming strategy.

Their products were high price and targeted only upper class. As they moved on
eventually the company trickled down focusing on the middle class and they ended
up penetrating the market. Also KFC follows one price strategy. Price is determined
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according to the rates of the raw materials and policies of the Government. 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:
Distribution channel:
KFC has only one channel of distribution i.e. direct where the goods are transferred
to the consumer directly. KFC has no middlemen.
Distribution of goods:
• KFC does distribution of consumer goods directly to the consumer.

• KFC also does distribution of services to the consumer like parking, sitting,
home delivery, etc.
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KFC Strategies
• KFC gets Wheels! KFC launched its first mobile unit, which took the streets of
Karachi by storm. The mobile unit has been designed to cater to the needs of
those who are on the go, and have little time to stop by at a restaurant. It
also provides a unique convenience of enjoying the delicious KFC offering 2010
anytime, anywhere, thus making fast food truly fast and convenient.
• KFC intends to further develop its mobile network nationwide through more
such units
Intensity of distribution:
KFC does intensive distribution on its outlets. This means that everything and
all its products are available on one outlet.
Vertical marketing strategy:
KFC has corporate vertical marketing system. KFC is centrally owned by its
subsidiary Yum Brands. This company is affected by the geographic distribution
(they have few outlets then its competitor McDonald’s). The unit value of the items
is comparatively lower then McDonald’s. KFC has a well-equipped sitting area for
the customers and a Chicky play area for the kids.
Promotion:
The main logo of KFC features Colonel Harland Sanders. This logo is one of the best
logo in the world. It has created its name as a standard in the market. Today the
Colonel’s Spirit and heritage are reflected in KFC’s brand identity.
KFC by its advertisements derives the desire in the customer to come and enjoy
healthy food in their favorite restaurant. They spend only 2% of its profits on
advertisement. They 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”). In its
16
KFC Strategies
advertising it gives informative messages like “Faryad: Keep the city Clean”. 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
May. 15 the customer to KFC i.e. it uses pull advertising strategy.
KFC has put big hoardings on the busy areas of Pakistan and 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. Most recently it affiliated itself with ARY Gold digital and
WorldCall Internet services. Also KFC Proud Partners are Del Monte, Culligan, Shan
and Peek Freans (EBM).
Few months back, PSO made a scheme in which PSO had given the coupons of KFC
having 10% off. (1 coupon was given after each purchase of 10 liters of petrol)
KFC Strategies |5/15/2010/15/201015/15/201015/15/201015/15/20101
KFC in its advertisements says;
“Nobody does chicken like KFC”

“We do chicken right”
Hence, it focuses on product advertising. KFC deals with mass selling in order to
reach its target market (as it has trickled down). KFC in its ads tries to attract
everybody who eats boring bland fast food and want some good variety to opt for
their brand i.e. KFC. In one of KFC’s America based commercial, Jason who is a
“Chicken Fanatic” or chicken lover and a young skateboarder, softball team and a
group of construction workers ended up replacing their boring meals with KFC. The
idea was "put down their gray and tasteless burgers" in favor of KFC's hot and juicy
Original Recipe ® Chicken. Jason will appear in future KFC® commercials as he
continues his quest to tell America that they no longer have to compromise taste
and quality for fast food convenience.
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KFC Strategies
“Become a fanatic yourself and head

over to your nearest KFC restaurant to
enjoy some tender, juicy, freshly
2010
prepared Original Recipe® Chicken!”
The message conveyed in the ads is recognition for the brand. KFC does
competitive advertisement with its head on competition with McDonalds. Regarding
this KFC uses Pricing below competition strategy.
KFC sponsor’s many NGO’s and other social welfare organizations like Regular
sponsorship to SOS village. Sponsorships to FARYAD a plant and life association.
FARYAD: Keep The City Clean”. They also offer different deals according to the
season and occasions.
KFC publicity in gunnies book of record:
16
KFC Strategies
KFC organized the “Biggest Birthday Party”. The event took place on Louisville,
Kentucky, USA, on Sept.8, 1979, to celebrate the 89 th birthday of Kentucky Fried
May. 15
Chicken founder Col.Harland Sanders. This event not only became a huge success
but it was also recorded in gunnies book of records.
Quality assurance:
KFC takes great pride and care to provide the best food and dining experience in
the quick service restaurant business. They believe eating sensibly, combined with
appropriate exercise, is the best solution for a healthy lifestyle.
KFC Strategies |5/15/2010/15/201015/15/201015/15/201015/15/20101
Food safety:
Chicken & its Products:
• Locally produced and processed chicken.

• Supplied in frozen form
• 100% Halal
15
KFC Strategies
2010
KFC Nutritional information:
Servin Calori Total Cholester CHO Protei

g size es Fat ol n
Original 47(g) 145(g) 9(g) 60(mg) 5(g) 11(g)
Recipe/E-Wing
Recipe/E-Breast
Recipe/E-
Drumstick
Recipe/E-Thigh
Hot & Spicy- 53(g) 180(g) 11(g) 60(mg) 9(g) 11(g)
Wing
16
KFC Strategies
Breast
Drumstick
May. 15
Thigh
Original Recipe- 206(g) 450(g) 27(g) 60(mg) 22(g) 29(g)
Fillet
Zinger Burger 246(g) 640(g) 40(g) 405(mg) 38(g) 32(g)
Hot Wings 144(g) 460(g) 30(g) 125(mg) 22(g) 25(g)
Corn on the Cob 82(g) 90(g) 0.5(g) 0(mg) 19(g) 2(g)
3*
French Fries 100(g) 136(g) 3.7(g) 1(mg) 23.3(g) 2.3(g)
KFC Strategies |5/15/2010/15/201015/15/201015/15/201015/15/20101
SWOT analysis:
Strengths:
• Oldest and finest in Business

• High Goodwill
• Does not have any Core competitor In chicken serving
• Large Number of Outlets at prime locations
• Serves variety of items under single menu
• Loyal customers
• Faces numerous advantages of being a Multinational Organization e.g.
economies of scale, government incentives etc.
Weakness:
15
KFC Strategies
• Presence of Multinational competitors in the market e.g.

McDonalds(specialized not in chicken serving but in burgers)
• Imported raw material rise their prime cost
2010
Opportunities:
• Cheap and easy availability of labor

• Increase consumption of fast food has increased the market size
• Consumer prefer “All under one roof” in order to increase their sales turnover
they can increase or add the served items
Threats:
• Entrance of New competitors into the market

• High political instability/uncertainty
Conclusion:
KFC is a very strong chain of fast food restaurants with more than 10,000
restaurants all over the world. It is currently in “Maturity Stage.” Therefore, it has
high opportunities of introducing its new products and deals. In Future it will be
expanding its chain by introducing more outlets in Pakistan as well as in other
countries. It should continue introducing products and upgrading itself so that it
may never reach in decline stage. Moreover, it should continue to re-launch its
16
KFC Strategies
products in order to keep attracting new customers, retain old customers and to
deliver even higher value!
May. 15
Perception:
• Believe in value creation.

• Provide ultimate choice of quick service restaurants for consumers.
• Won the hearts of millions of Pakistanis.
Recommendations
• If KFC could increase company own restaurants. This will enable it to control
quality, services and restaurant cleanliness. Therefore more capital is
KFC Strategies |5/15/2010/15/201015/15/201015/15/201015/15/20101
needed. But it will be better for KFC
• On the other hand if company operated franchise based restaurants

throughout Pakistan, its brand image could be build and its competitors will
be losing first more advantage.
• A Pakistani or a developing country’s markets are developing markets.

Therefore, its growth is high and entry barriers are low.
• KFC could make strategic alliances with key suppliers to gain advantage over
competitors in the market.
• KFC has a peeling business model and good strategy. Hence, it has golden
opportunity to shape the rules and establish itself as the recognize market
leader.
15
KFC Strategies

2010
16

KFC Strategies

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KFC Strategies

Marketing Management report

May 15, 2010

CONSUMER MARKET SEGMENTATION:........................................................................................18

KFC Strategies | 5/15/2010

KFC was acquired by PepsiCo in 1986, it had grown to approximately 6,600

“We Do Chicken Right”

Cupola is a Dubai based multinational company involved in several business

May. 15 The principal Of Cupola:

Credibility: Being regarded by our stakeholders as being a reliable source of

Character: Conducting ourselves with honesty, integrity, and spirit.

Communication: Facilitating free flow of information about our activities. Always

Creditworthiness: Total honesty in our business dealing, as financially responsible

Coherence: Being clear to the point of transparency at all times.

Conscientiousness: Striving for excellent- we believe that there is no shortcut to

Conceptual: Thinking with clarity, imagination and communicating this clearly.

Our Activities: 2010

Cupola Pakistan is the Cupola Group’s Operational focus in Pakistan. A leading

• Indulge – Casual Dining

KFC and Pakistan…Growing Together.

“KFC and Pakistan…Growing Together”

many family packages meals. Family size 2-3,3-4 and 5+.

Following factors are included in the economical factors of the KFC:-

Research & Development: KFC Strategies | 5/15/2010

Research & Development is also an important factor in the Technological factor.

Social Responsibilities & Ethics:

Social/Cultural Factors includes the following things:-

Pakistani culture also.

KFC Target market:

Consumer market segmentation:

Karachi, Lahore, Rawalpindi, Faisalabad, Multan, Peshawar, Sialkot, Hyderabad and

a. The main Gulberg branch is situated on M.M Alam Road, which

5. Thokar Niaz Baig:

a. It focuses on the whole family.

a. Ambitious, self-confident and extrovert.

a. Taste and value for money.

b. (Satisfaction > Expectation)

Business market segmentation:

All restaurant branches are located in accordance with customer’s convenience.

There are 35 branches with 6,000 employees including Restaurant Supporting

• Their product is classified as consumer product as it has no intermediates.

Launching of a franchise like KFC in Pakistan can be considered as an innovation.

• Customer services (comments cards)

• Gallops survey (mystery shoppers)

New product innovation is always decided by the Quality Assurance department of

KFC adds a new product in its present assortment based on

• Its compatibility with environmental standards

KFC product line includes all chicken based products.

Desserts & Beverages:

Snacks & Side Orders:

• 5 & 20 Pieces Nuggets

• Hot & Crispy Soup

Product Mix strategy:

The product mix strategies deals with:

Locally in Pakistan KFC face a close competition

Place and Quantity:

KFC products are based on high quality and prices.

Product Mix extension:

o Through introducing new meals offers.

Change in product positioning:

Product life cycle:

KFC Strategies | 5/15/2010

Product Branding, Packaging, Labeling:

Brand Name: KFC