BRAND IN INDIA

CMM 591 First Case Study Pushya Siddharth 1

us. A company originating form Corbin, Kentucy has been able to carry this association overseas to many countries and make their presence in the food such American based companies, and allowed their proliferation all over India.

industry. Globalization and deregulation of laws helped the establishment of many compared to its American counterparts. The differences are seen from the market the Brand Identity KFC has in India. a. Establishment into the Indian Market

The association between red, white and chicken can be only KFC for many of

KFC serves to the ambience of their restaurants. This study makes an exploration of

The Brand idea of KFC was seen to vary in the Indian subcontinent as

market. The market was opened up to foreign companies, as a result of deregulation that took place in 1990. Globalization was unleashed into a country that was very taking place by tradition-adhering groups. Similarly KFC also met the same fate. attached to traditional Indian values. Many anti-globalization movements were

KFC was one of the first few fast food multinationals to enter the Indian

many they found a good number of people who went out to eat. They had decided of the target audience.

on targeting the upper middle class families, and Bangalore had a good population 1995. This was where their target audience was found to move around during their lesuire time, thus became an apt location to gather their customers. The first KFC outlet was located in the shopping hub of Bangalore back in

KFC established itself in Bangalore in 1995. They chose this location because

b. Current Market Situation

like Chandhigarh, Pune and Ludhiana. In 2008, KFC had a market of $12 billion 100 outlets in other cities. However what is not seen in the statistics, is KFCs struggle over the whole

dollars and was going to develop its business by inversing $2 billion and open over decade. KFC entered with steep pricing and an international menu, which led them to struggle in revenue. They were unable to understand and cater to the Indian of the market before KFC changed its strategies.

Further, KFC began to establish itself across all the metros along with cities

c. Brand Promise.

palate. Other bands like McDonalds and Pizza Hut managed to understand the need

compared to a few years ago. They have realized that the Indian market and for quick food.

customer, uses fast food joints not as a fast food option, but to relax and eat a The change KFC has shown recently in their ambience, packaging and even

burger or chicken strips, since the local restaurant brands satisfy customers need

I understand that, KFC today in India, has a very polished appearance as

the menu has contributed greatly for their brand. They have introduced a series of Indianized products, the variety in the vegetarian products have also increased and they have bettered their quality. With the many changes its image is undergoing, good food. KFC I believe, has managed to get the upper middle class market. For these 3 KFC is potraying a caring image, they want to be able to cross cultures and serve

customers KFC would be an option to get some food when shopping, have lunch

with friends or even dinner with family. For the upper middle class, the more westernized audience, it gives them the whole Western feel. cities. They aim at getting the more working/middle class customers. Since smaller Indian cities are being more westernized whether through media or personal d. Execution i. cities of the country. Their expansion plans for 2008, they want to extend into the tire 2 and tire 3

experiences, KFC stands a good chance of establishing themselves even in smaller

Ambience: The KFC store complies to the logo colours: bright red and with

big bold lettering. A smiling face of Col.Sanders outside welcomes customers. freebies for children. Therefore it gives out an idea of fun, and welcoming for reconsider their needs. For the children the mascot and the big logo potrays a fun and exciting environment.

The showcase holds displays of promotional goods, offer displays and

ii.

customers passing by. The bright bold colours may make them stop and Menu: the display of their products and the variety of meals offered caters to all the customers need. From western food like burgers and fries, to more a non-vegetarian place. for the vegetarian, which is coded in green making them feel more relaxed in Packaging: glossy sturdy packaging is what comes across. It gives and idea colours more animated for the children, shades of green and white for napkins, straws, even balloons for the kids. 4

intermediate option of the chicken strip and the bucket, to Indian options of thali mean (chicken, rice and Indian curry). They also have a selection of food that the brand is not careless when it comes to service, bold dark lettering, vegetarians so that they can completely dissociate themselves with the non-

iii.

with a more designer packaging for adults, bright variations of the same vegetarian packaging. Packaging materials range from burger boxes, buckets,

iv.

Pizza Hut and McDonalds. The brand comes across as wanting to give the customer a place to eat, rather than a fast food option. The restaurants are very polished, with polished flooring and full-length glass windows. The red couches further maintain the brands identity. Party halls are also provided at some outlets for children to have birthday parties, yet the ambience is glass mounted displays of their products with lettering containing expressive noises eg. Mm, Yummy, Slurp etc. and a more friendly visual. remembers their brand. Logo: The logo adhering to the changes in its representation, has the Colonel

Restaurant design: The revamped stores are more in competition with the

v. vi. vii.

more sophisticated so that teenagers, family groups are not left out. Large in an apron with red, white and black colours. The logo is seen at the Service: the representatives are friendly and help you to relax. They even seat you at your table, for pending orders they serve you themselves. They

entrance, on the menus, the packaging etc. The new logo makes it appealing are dresses in red and black with the KFC logo. Making sure the customer

e. Conflicts

maintain the fun element that is associated with KFC. Their print ads are vibrant with shades of red detalis some special offers.

Advertising: KFC did not advertise on Indian television till almost 12 years after their establishment. But today their ads are on everywhere and revolve

around family and kids and the quest for good fried chicken. The TV ads

faced a lot of heat from PETA activists, for their cruelty towards animals. The conflicts worsened and some of the outlets were even shut down for a brief period. 5

India. During the launch of its outlet, there were protests by traditional groups who were against the western Influence and the concept of junk-food. KFC has also

KFC has been involved with a string of conflicts following its establishment in

f. Recommendations

The most important strategy for KFC would be to develop an in the minds of the audience that they can cater to both non-vegetarians and vegetarians. from their issues.

They should also confront the various conflicts so that they are not hiding They should aim at collaborating with some NGOs to take part in the further push their caring image. community, so that they can shed the image of American brand and

References

ICMRI Center for Management Research Case Studies, Case Number: BECG044. KFC Takes to TV after 12 years, Neha Karla, Agencyfaqs, 2007. L Dana, C Vignali, British Food Journal, 1998 ublished/emeraldfulltextarticle/pdf/0701000201.pdf KFC to Expand Presence in India, Food Business Review, 2008 B0FC-4EC2-89EA-91679B370992.

http://www.food-business-review.com/article_news.asp?guid=05430D86http://www.emeraldinsight.com/Insight/ViewContentServlet?Filename=/p