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A PROJECT REPORT ON KFC
(FROM MARKETING PERSPECTIVES) SUBMITTED BY
ASTHA PANDEY BBS 3RD YEAR SYMBOL NO: ……………………………. T.U REGD NO: …………………………….
Submitted To: Adarsha Campus
Faculty of Management, T.U
In the partial fulfillment for the degree of Bachelor in Business Studies (BBS)
On 30th August, 2010
I would like to express my hearty gratitude to all the people, who extended their help by providing their invaluable views and opinions, which formed an integral part of this study. First of all, I take this opportunity to express my sincere thanks to my teachers for helping me to get through this report. It would not have been possible for me to complete this project without his unflagging supervision, advices and directions. So, mine great debt of gratitude to him. It is my immense pleasure to submit research report on “KFC” to Adarsha Campus. It enabled me to learn more about marketing, which helped in gratitude study for imparting practical knowledge to the bachelor’s students which is a useful resource in stepping towards the practical world.
INTRODUCTION b. LITERATURE REVIEWS 3. OBJECTIVES c. BIBLIOGRAPHY ANNEX 16 16 17 22 24 5 6 7 8 PAGE. DATA COLLECTION METHOD 4. RECOMMENDATION 6.NO. METHODOLOGY a.TABLE OF CONTENTS TOPIC 1. INTRODUCTION a. 3 . FINDINGS 5. LIMITATIONS 2. BACKGROUND b.
salads and sandwiches. the company began using its original name. pork based products such as ribs and other regional fare. Kentucky Fried Chicken. KFC primarily sells chicken pieces. Outside North America. Kentucky in the United States. KFC also offers a line of roasted chicken products. The company was founded as Kentucky Fried Chicken by Colonel Harland Sanders in 1952. KFC has been a brand and operating segment.S. KFC offers beef based products such as hamburgers or kebabs. While its primary focus is fried chicken. side dishes and desserts. newer and remodeled restaurants will have the new logo and name while older stores will continue to use the 1980s signage. 4 . though the idea of KFC's fried chicken actually goes back to 1930. as part of a new corporate re-branding program. for its signage. The company adopted the abbreviated form of its name in 1991. BACKGROUND: KFC Corporation (KFC. packaging and advertisements in the U. termed a concept of Yum! Brands since 1997 when that company was spun off from PepsiCo as Tricon Global Restaurants Inc.INTRODUCTION a. founded and also known as Kentucky Fried Chicken) is a chain of fast food restaurants based in Louisville. wraps. Starting in April 2007.
research skills.b. To improve the presentation skills. 3. 6. To add the knowledge of marketing by supporting some theories. communication skills. To provide link between academic training and the world of work. To enable and to enhance knowledge about how changing environment effects marketing in an organization. 4. 5 . thereby enhancing the future employability. To assess the KFC itself and the present status and condition about it. OBJECTIVES: 1. Managerial & marketing skill. 2. 5. To enable us in understanding how theoretical knowledge differs from practical life thus enabling us to understand the complexity and unforeseen nature of problem and opportunity that exist in the organization.
It was to be completed in a very short period of time. the reliability and validity of the interview have not been confirmed. As the research model applied was not standardized. LIMITATIONS: As this study intends to put the theoretical knowledge into real life situation as a small research work. Study based on management aspect only . it has been completed with the following limitations: 1. 6 . Therefore.c. 4. Due to time and budget constraints. no analysis has been made with advance statistical tool. doesn’t contain study of financial aspects 3. 2. the findings of the study cannot be generalized set of the organization in the study. 5. it could not take into account all the environmental factors which are equally responsible in affecting the organization. Due to single respondent or qualitative approach of research.
The Chartered Institute of Marketing defines marketing as 'The management process responsible for identifying. With the customer as the focus of its activities. an organization should anticipate the needs and wants of consumers and satisfy these more effectively than competitors 7 . The evolution of marketing was caused due to mature markets and overcapacities in the last 2-3 centuries. It is an integrated process through which companies create value for customers and build strong customer relationships in order to capture value from customers in return. today marketing is based around providing continual benefits to the customer. Philip Kotler defines marketing as 'satisfying needs and wants through an exchange process'. it can be concluded that marketing management is one of the major components of business management. to keep the customer. Companies then shifted the focus from production to the customer in order to stay profitable. The term marketing has changed and evolved over a period of time. and the strategy to use in sales. communications and business development. The term marketing concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions. and to satisfy the customer.LITERATURE REVIEWS Marketing? Marketing is the process by which companies determine what products or services may be of interest to customers. these benefits will be provided and a transactional exchange will take place. Marketing is used to identify the customer. anticipating and satisfying customer requirements profitably'. It proposes that in order to satisfy its organizational objectives.
and then utilize promotion techniques to ensure persons know the product exists.Evolution of marketing: Earlier approaches: The marketing orientation evolved from earlier orientations namely the production orientation. As an example. Thus. a firm would employ market research to gauge consumer desires. and not determining new consumer desires as such. Selling 1950s and A firm using a sales orientation focuses methods 1960s primarily on the selling/promotion of a particular product. Profit driver 8 . use R&D to develop a product attuned to the revealed information. Quality of until the A firm employing a product orientation is the 1960s chiefly concerned with the quality of its own product product. the product orientation and the selling orientation. A production orientation may be deployed when a high demand for a product or service exists. until the minimum efficient scale is reached. coupled with a good certainty that consumer tastes do not rapidly alter. this entails simply selling an already existing product. Orientation Production Product Selling Marketing Western Description European timeframe Production until the A firm focusing on a production orientation methods 1950s specializes in producing as much as possible of a given product or service. A firm would also assume that as long as its product was of a high standard. Needs and 1970 to The 'marketing orientation' is perhaps the wants of present most common orientation used in customers day contemporary marketing. people would buy and consume the product. and thus supplying products to suit new consumer tastes. this signifies a firm exploiting economies of scale. Consequently. It involves a firm essentially basing its marketing plans around the marketing concept. and using promotion techniques to attain the highest sales possible.
advertising and communication to the customer is used. desktop advertising or affiliate marketing. It tries to perfect the segmentation strategy used in traditional marketing. the business marketing or industrial marketing with focus on an organization or institution and the social marketing with focus on benefits to the society. Orientation Profit driver Micro Environmental Factors: 9 . or selling methods. A different form of marketing activities like promotion. Social Benefit to 1990s to Similar characteristics as marketing marketing society present orientation but with the added proviso that day there will be a curtailment on any harmful activities to society. production. Western Description European timeframe Relationship Building and 1960s to Emphasis is placed on the whole marketing / keeping good present relationship between suppliers and Relationship customer day customers. The Industrial relationships day product focus lies on industrial goods or marketing between capital goods than consumer products or organizations end products. online marketing. The aim is to give the best management relations possible attention. customer services and therefore build customer loyalty. and is sometimes called personalized marketing or one-to-one marketing. Business Building and 1980s to In this context marketing takes place marketing / keeping present between businesses or organizations. in product. New forms of marketing also uses the internet and are therefore called internet marketing or more generally e-marketing. search engine marketing.Contemporary approaches: Recent approaches in marketing is the relationship marketing with focus on the customer. It targets its audience more precisely.
These factors include: Customers: Organizations survive on the basis of meeting the needs. Closer supplier relationships are one way of ensuring competitive and quality products for an organization. Employees: Employing the correct staff and keeping these staff motivated is an essential part of the strategic planning process of an organization.These are internal factors close to the company that have a direct impact on the organizations strategy. In a market which has very quickly become overcrowded many have failed. Training and development plays an essential role particular in service sector marketing in-order to gain a competitive edge. Prices may be forced up as a result. This is clearly apparent in the airline industry. Many internet companies who share prices rocketed in 1999 and early 2000 have seen the share price tumble as they face pressures from shareholders to turn in a profit. Satisfying shareholder needs may result in a change in tactics employed by an organization. Consumer programs with a wider and more direct audience can also have a very powerful and positive impact. Competitors: The name of the game in marketing is: differentiation. wants and providing benefits for their customers. Failure to do so will result in a failed business strategy. Media: Positive or adverse media attention on an organizations product or service can in some cases make or break an organization. forcing organizations to change their tactics. 10 . However this movement unleashes the forces of shareholder pressure on the strategy of organizations. Suppliers: Increase in raw material prices will have a knock on affect on the marketing mix strategy of an organization. Shareholders: As organization requires greater inward investment for growth they face increasing pressure to move from private ownership to public. What benefit can the organization offer which is better than their competitors? Can they sustain this differentiation over a period of time from their competitors? Competitor analysis and monitoring is crucial if an organization is to maintain its position within the market.
Political factors influence organizations in many ways.Micro Environmental Factor PEST analysis: A PEST analysis is used to identify the external forces affecting an organization . Political factors can create advantages and opportunities for organizations. -Voluntary codes and practices 11 . Conversely they can place obligations and duties on organizations.This is a simple analysis of an organization’s Political.Legislation such as the minimum wage or anti discrimination laws. Political factors include the following types of instrument: . Political and legal: The first element of a PEST analysis is a study of political factors. Social and Technological environment. Economical.
high spending power and high stakeholder confidence. suppliers and other organizational stakeholders such as suppliers and creditors behave within society. All businesses are affected by national and global economic factors.Tax levies and tax breaks .GDP or per capita income . Furthermore organizations will need to review the impact economic conditions are having on their competitors and respond accordingly. friends.Economic growth Social: The third aspect of PEST focuses its attention on forces within society such as family.. The climate of the economy dictates how consumers. dictatorship Non conformance with legislative obligations can lead to sanctions such as fines. An economy undergoing recession will have high unemployment. A successful organization will respond to economic conditions and stakeholder behavior. democratic. neighbors and the media.g. communist.Market regulations . low spending power and low stakeholder confidence.Trade agreements. 12 .Inflation rate . tariffs or restrictions . adverse publicity and imprisonment. colleagues.Type of government regime e. National and global interest rate and fiscal policy will be set around economic conditions. Ineffective voluntary codes and practices will often lead to governments introducing legislation to regulate the activities covered by the codes and practices. A truly global player has to be aware of economic conditions across all borders and needs to ensure that it employs strategies that protect and promote its business through economic conditions throughout the world such as: .Importance of tariffs and quota . Conversely a “booming” or growing economy will have low unemployment. Economical: The second element of a PEST analysis involves a study of economic factors. Social forces affect our attitudes.
ethnicity and religion. Technological: Unsurprisingly the fourth element of PEST is technology. Technology infrastructure such as the internet and other information exchange systems including telephone 2. Bluetooth devices. These forces shape who we are as people. This technological revolution has increased the rate at which information is exchanged betmyen stakeholders.interest s and opinions. laptops. Blackberries. they have 1. Organizations use technology in many ways. Changes in the structure of a population will affect the supply and demand of goods and services within an economy. role of family. 3. gender. photocopiers and fax machines which transmit and record information. education. Population changes also have a direct impact on organizations. 13 . If organizations do not respond to changes in society they will lose market share and demand for their product or service. Falling birth rates will result in decreased demand and greater competition as the number of consumers fall. as you are probably aware technological advances have greatly changed the manner in which businesses operate. A faster exchange of information can benefit businesses as they are able to react quickly to changes within their operating environment. Technology systems incorporating a multitude of software which help them manage their business. age. desktops. materialisms and behavior. However an ability to react quickly also creates extra pressure as businesses are expected to deliver on their promises within ever decreasing timescales. Technology has created a society which expects instant results. Conversely an increase in the global population and world food shortage predictions are currently leading to calls for greater investment in food production. Technology hardware such as mobile phones. the way we behave and ultimately what we purchase. In summary organizations must be able to offer products and services that aim to complement and benefit people’s lifestyle.
Technology will continue to evolve and impact on consumer habits and expectations. Consumers can now shop 24 hours a day from their homes. Some employees have instant access to e-mails through Blackberries but this can be a double edged sword. organizations that ignore this fact face extinction. work. as studies have shown that this access can cause work to encroach on their personal time outside work. 14 . children are exposed to technology from birth and a new generation of technology savvy pensioners known as “silver surfers” has emerged. and Internet cafés and via 3G phones and 3G cards. Technology is utilized by all age groups.For example the Internet is having a profound impact on the marketing mix strategy of organizations. The pace of technological change is so fast that the average life of a computer chip is approximately 6 months.
Being a secondary data I did not find it to be as liable as primary data. Roshan Adiga.collected by other researcher or which are secondhand data. with a view to explain more knowledge regarding marketing in the organization as myll as about the KFC . It sequentially refers to the various steps to be adopted by a researcher.METHODOLOGY a.39) research methodology describes the method and process applied in the entire study. pg. b. 15 . INTRODUCTION: Research methodology is the way to solve systematically about research problem. General Manager of Devyani international (Nepal) Limited. and collected different data from books. I collected different research projects. DATA COLLECTION METHOD: Primary data collection: Under this method. 1990. web sites and etc. So. Secondary data collection: Secondary data are those data which are pre . other reports. the researcher directly received the necessary information with the help of questionnaire and its response. (Kothari. process of collecting these types of data are secondary data collection so. Moreover a brief face to face interview was done with Mr.
under the umbrella of Ravi Kant Jaipuria’s RJ Corp.Chicken served in recipes is imported all the way from Brazil. opinions in the questionnaire provided to him.FINDINGS Devyani International. knowledge. Product quality and Speed of service. World’s famous fast food chain KFC started serving Nepalese people with their lip smacking menu of Hot & Crispy chicken. marking the first multinational chain of restaurants in Nepal.Plus 3 new stores in the next 6 months. The opening of these two outlets would give Nepali consumers the first local experience of an international food chain. He follows a special formula called CHAMPS as main objective of KFC which refers to Cleanliness. He has working experience for more than 10 years. Proposed locations @ Jawalakhel.t.Operating Hours: 11 am to 11 pm/7 days Mr. During the survey he laid down his experiences. Twister roll and Zinger burger around October 2009 right from Annapurna Complex. 16 . ideas. Roshan Adiga is the General Manager in KFC. He has completed his Bachelors and is 36 years old now. views. . here introduced Pizza Hut & KFC restaurants. inventory management. hiring e. Maintenances. New Baneshwor & Maharajganj . His main activities/ responsibilities is overall operation including training.c .Number of Crew hired – 100 . and Accuracy.Daily Chicken consumption @ KFC – 800 kg . . They have promised an upcoming rush of announcements and product that will make this an exciting time for consumers. Durbar Marg. Hospitality.
teenagers. There is no system/ facility of bookings or reservations in KFC. It has not taken into consideration the exact method to check the occupancy rate. KFC is a fresh brand in Nepal. people from various countries step in to the restaurant but the flow has been highly dominated by the domestic customers. Since KFC is an international brand the brand itself has been running the restaurant so far in terms of popularity. So it seemed to us that though tourists did visit KFC but it is highly popular among the local people. it is difficult to analyze the occupancy rate seasonally. 7 Lakhs + 4. 17 . [QSR is a specific type of restaurant characterized by fast food cuisine. 2. self service and by minimal table service]. KFC Restaurant is a fast food restaurant which is popularly known as Quick Service Restaurant (QSR) these days. corporates come to the restaurant and talking about the people in terms of nationality. So. Since KFC is new to Nepalese people but quite popular to others comparatively because KFC has its business running in many parts of the world. It has just been six months since KFC started it business in Nepal. 7. because of which KFC has not introduced any kind of customized items. although it was comparatively found increasing in February & March due to number of increasing tourist. Weekly calculation of bills turns out to be around 700 bills and it is calculated as 1 bill = 3 people approx where Daily Sales Exceeds Rs. it inspects the number of bills on transaction basis to check the customer flow. 6. There are 125 covers (chairs) in KFC 3. So far the name itself has been enough to attract customers. However. Basically family. 5.Some of the general findings are as follows: 1.
But on the recommendations also my hire the employee (when my need people my first tell staff if any of them know the person qualified and interested for the job). unique taste. 3. written exam. What type of methods is followed for hiring High level peoples? Generally consists of 4 levels i. 11. the variable and other costs are too high for the KFC so no such thing as discount is provided in KFC. fast service. 9. and final interview. the office regularly carries out the training programs. smooth running of the restaurant. Apart from this many people have dropped their C. No particular promotion technique is applied except for few hoarding boards and few posters behind the Pepsi cola vehicle as direct market advertising and publicity. Now I provide the training for 18 .8. Initially all the staff has been to India for training before I had started. crushers. Bucket hot and crispy. 2. 10. In an average a customer stays in KFC for about 15 -20 min where food is delivered within a min. Burgers are highly popular food in KFC apart from Cold drink (Pepsi) and deserts. in our office and when my need my call them and go through our four levels.V. KFC brings chicken from Brazil.e. role play. Has the office conducted the regular training programs to employees? Yes. hiring and Training. interview. What are your basic functions of Marketing? The brand itself has promoted the KFC so there is no much more to do regarding the marketing where as concerned with the basic functions is to assure the people are getting the quality service. clean and hygienic food. Hot wings. Conceptual Findings: 1.
6. What are the qualities to be competitive in market? Well. Economical – It must also be stable so that living standards are maintained and 19 . Does the organization give pay on leave holidays? Employees have to work as per company’s 6 Month provision period n then leaves are provided as per governmental rules. it does play an important role in business. I believe in quality. 8. hospitality (feel good environment) and there are so on……. And I have also frequent visit from India who provides and guides.lower level and my also learn frequently from the higher level.which I believe are necessary to be competent in the market. What is the major promotion methods used (based on company expenditure)? My have not done any promotion now. tables and chairs conditions). When I were first launching in Nepal my had a tool on the Pepsi’s vehicle and Iy have informed people through net and media about the opening date 7. 5. to cope up with the technology is must. maintenance (AC. How do you know (evaluate) about the customer’s satisfaction? On the opening day I have conducted the survey by giving written questions and options about the quality. Economical. hygienic and cleanliness. Social). 4. How does the pay scale increases? The pay scale increases as per the company rule but I think our staffs are happy with their salary. Technological. 9. After that I have not done any survey but the smiling and happy face leaving the KFC tells us about the customer satisfaction. consistency. service and price of KFC. For better business: Political – It must be stable Technology – One needs to be faster. Do you know about PEST analysis? Taking about PEST analysis (Political.
team working. Then it depends on your hard work. You should have basic qualities such as willingness to learn. what do you suggest us to become tomorrow’s marketing manager or be success in this field? First of all education is needed which is a permit or license to become the manager to any other higher post.tourists will spend more and all……. ask questions. Lastly. desire and passion for work. disciplined. try to learn everything. friendliness. be at your best!! And most importantly you have to start from the root level because every level is important. hard working. and so on……. Don’t hesitate. Social . 10. creativity. quick .One should also remember its responsibilities towards the society. or no one will bother. labor. 20 . it gives an idea about the every field and all levels and desire and hunger to learn.
g. employees must be aware of the cross culture communication to reduce misunderstanding. there is always a place for improvement. the KFC is suggested to formulate and implement some sound and efficient 21 . 4. be more cultural and respectful to the feelings of customers.RECOMMENDATION KFC restaurant is the first multinational chain of restaurants in Nepal and is one of the best restaurants in Nepal. But also. This is an environment of strict competition even in tourism and hotel sectors. The restaurant is still in the stage of infancy. So. I recommend the restaurant to lower its cost and provide discount during off. my have given some recommendations that should be fulfilled seriously to remain best. 2. But the KFC is suggested to adopt the techniques of motivation that can maintain the present turnover of employees. Since. they should be attentive towards tourist from which country they belong to and they should be serving with lots of varieties of food to satisfy them with good quality. Adequate number of staffs should be recruited to handle the respective activities in more effective and efficient way. This type of tendency is regarded good for the upliftment of the organization. 3.season and discount to the local or internal tourists as to be more competitive in near future. So different types of food of different cuisines should be added in menu to satisfy different type of tourist. Rate of varieties of the restaurant seems to be higher in comparisons to other restaurant. In this context. 5. The turnover rate of employees has been zero. KFC has lots of varieties of food items. There should be better communication channels or medium between and among the employees and customers to reduce conflict and carry out work efficiently. 1. For e.
Thus.marketing strategies to meet the required level of profitability as well as social responsibility. 22 . organization should have subsequent consultation and participation in better problem solving to reduce the effect of different trends that affects marketing.
New Delhi. C.ktm2day. 1990.com/2009/04/26/kfc-pizza-hut-opening-stores-in-nepal/ 23 . “Research Methodology: methods and techniques “. Tata Mc Graw Hill Publishing Company Ltd.org/wiki/KFC http://www. http://en.wikipedia.learnmarketing.BIBLIOGRAPHY Kothari.R.net/ http://www.
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