SUBMITTED TO

MR. HANEEF
SUBMITTED BY
MR. NAVEED IQBAL
MR. WAQAS AHMAD
MR. YASIR SALAMAT
&
MR. FAHIM ROSHAN SIYAL
CLASS
BBA 5
TH
SEMESTER
MORNING
SUBMITTED ON
FRIDAY, MAY 04, 2007
RETAIL MARKETING
FINAL RO!ECT
We dedicate this report to our Parents and respectable
Teachers
N"#$%&"' U&$()*+$#, %- M%.)*& L"&/0"/)+
ACKNOWLEDGEMENT1
First of all, we would like to offer our eternal thanks to the Almighty Allah who blessed
us with the perseverance and the sprit of hard work to complete this project. We are also
grateful to our parents for their patience and belief in us. We offer our respectful gratitude
to our etail !arketing course supervisor !r. "aneef for his guidance # encouragement.
We would like to thank all of those people specially the !arketing !anager of $F% !r.
&heikh &ohaib who helped us through our entire etail !arketing project.
KFC Group Members
!ay '(
T"
, )''*
+ational ,niversity of !odern
-anguages
TABLE OF CONTENTS1
Topics covered in this report.
%ompany/s Profile00000000000000..
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E2ECUTIVE SUMMARY
$F% %orporation, based in -ouisville, $entucky, is the world/s most
popular chicken restaurant chain, speciali1ing in 2riginal ecipe 3, 45tra
%rispy
T!
, and %olonel/s %rispy &trips3 chicken with home style sides and
five new freshly made sandwiches. 4very day, nearly eight million
customers are served around the world. $F%/s menu everywhere includes
2riginal ecipe3 chicken6made with the same great taste %olonel "arland
&anders created more than a half7century ago. %ustomers around the globe
also enjoy more than 8'' other products6from a %hunky %hicken Pot Pie
in the ,nited &tates to a salmon sandwich in 9apan.
$F% continues reaching out to customers with home delivery in more than
8'' restaurants in the ,nited &tates and several other countries. And in :uite
a few ,.&. cities, $F% is teaming up with other restaurants, Taco ;ell and
Pi11a "ut, selling nearly fifty years ago< %olonel &anders invented what is
now called =home meal replacement> ? selling complete meals to harried,
time7strapped families. "e called it, =&unday @inner, &even @ays a Week.>
Today, the %olonel/s spirit and heritage are reflected in $F%/s brand
identity ? the logo features %olonel "arland &anders, one of the best7
recogni1ed icons in the world.
$F% is part of Tricon Alobal estaurants, Bnc., which is the world/s largest
restaurant system with nearly 8',''' $F%, Taco ;ell and Pi11a "ut
restaurants in more than C'' countries and territories.
M$++$%& +#"#)3)&#1
$F% is an internationally renowned fast food industry in the world. They have the main
ambition to increase # maintain the :uality in fast food industry. Their aim is to capture
the fast food market. ;asically they want to provide their products to anyone that is why
they e5pending their branches in all over the world.
They want to increase their profit through giving ma5imum satisfaction # other better
facilities to people that they want. +ow after catching such a marvelous position in the
Bnternational !arket, $F% is introducing a new item =;oneless Fried %hicken>, with
even more attractive and charming taste.
C%34"&, %()*($)51
%olonel "arland sanders, born &eptember D, CED', actively began
franchising his chicken business at the age of FG. +ow, the
$entucky fried chicken business he started has grown to be one of
the largest retail food service systems in the world. And colonel
sanders, a :uick service restaurant pioneer, have become a symbol
of entrepreneurial spirit. !ore than two billion of the colonel/s
=finger lickin/ good> chicken dinners are served annually. And not
just in America. The colonel/s cooking is available in more then E)
countries around the world.
When the colonel was si5, his father died. "is mother was forced to go to work, and
young "arland had to take care of his three year old brother and baby sister. This meant
doing much of the family cooking. ;y the age of seven, he was a master of a score of
regional dishes. Ate age C', his first job working on a nearby farm for H) a month. When
he was C), his mother remarried and he left his home near "enryville, Bnd., for a job on a
farm in Areenwood, Bnd. "e held a series of jobs over the ne5t few years, first as a CG7
year7old streetcar conductor in +ew Albany, Bnd., and then as a CF7year7old private,
soldiering for si5 months in %uba. After that he was a railroad fireman, studied law by
correspondence, practiced in justice of the peace court, sold insurance, operated an 2hio
iver steamboat ferry, sold tires, and 2perated service station. When he was (', the
G)&)*"' M"&"/)*
6GM7
!anager
Assistant !anager IBJ
&hift Bn7charge
Assistant !anager IBBJ
%ounter workers
$itchen workers
Auards
colonel began cooking for hungry travelers who stopped at his service station in %orbin,
$K. "e didn/t have a restaurant then, but served folks on his own dining table in the
living :uarters of his service station. As more people started coming just for food, he
moved across the street to a motel and restaurant that seated C() people. 2ver the ne5t
nine year, he perfected his secret blend of CC herbs and spices and the basic cooking
techni:ue that is still used today.
O4)*"#$%&+ $& "8$+#"&1
$F% I$entucky Fried %hickenJ was introduced in the Pakistani market by the Artal
Aroup of ;elgium and although a late entrant, it managed to establish several outlets in
$arachi, -ahore and several more areas. After a through survey and analysis $F% opened
its first branch in Aarden town -ahore five years back. &ince then there was no looking
back for $F% as it started to earn profits and grow to other different cities. $F% in
Pakistan has been shoeing a steady growth and profitability. &ome profits were used for
team making, uplift of the restaurants etc. $F% believes in providing =value for money>
to its customers. They have high :uality standard and they are in concurrence to those
prevailing in other countries. They have an international brand name to protect so there is
strict implementation of :uality standards.
*%90*)3)&# I++0)+1
All the raw materials like chicken are bought from value chicken, vegetables from
!onsalwa and they use caned fruit for salads. The machinery is all automated and is in
conformance to international standards. $F% officials often visit the outlets without
giving prior notice in order to check the conformance to :uality standards and
procedures. !oreover, Food Bnspection Teams from "ealth !inistry visits twice a year to
ensure "ygienic %onditions at the $itchen.
)*-%*3"&9) O()*($)51
$F% has taken advantage of all these e5cellent investment opportunities that Pakistan
offers for franchising and has e5panded and penetrated the market a lot. $F% has adapted
to the legal and political environment and conditions of Pakistan. The Pakistani culture
has also molded the operations of $F% in Pakistan. All the outlets of $F% in Pakistan
present Pakistani food culture. $F% has displayed banners that it servers "alal food all
over its outlets which represents Pakistani culture. They also offer families/ deals as the
people are very close to their families and like to have
food with them. $F% has also brought some changes
in the culture of Pakistan. The most significant is the
way it has changed the eating habits of the local
population. People now are aware of unhygienic
conditions that prevail in some of local restaurants.
And $F% has also brought the idea of self7service in
Pakistan.
O*/"&$:"#$%&"' S#*09#0*)1
The $F% adopted traditional structure for their outlets that other
food chains are following. There is one Aeneral !anager for
Pakistan. The outlet is leaded by the !anager, assisted by two
assistant managers, and one shift in7charge for each shift, that
supervises the performance of counter workers and kitchen
workers.
C%34)#$#$%&1
$F% does not consider !c @onald/s are its direct competitors. As !c @onald/s has a
limited menu and cater to different segments of society e.g. !c @onald is catering to
lower middle society of Pakistan. Though $F% has faced a little competition from local
restaurants but their breakeven in terms of revenue has been done and they are planning
to e5pand further to other cities like Bslamabad and Peshawar.
SWOT A&"',+$+1;
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W)"8&)++)+1;
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T<*)"#+1;
MARKETING

&ince CDE), $F%/s =All7American salute to !others> national card contest has been
$F%/s way of honoring moms and their families for making mother/s @ay $F%/s biggest
sales day of the year. The contest encourages children to creatively e5press their feelings
for their moms by making a homemade card and give them chance to compete for more
than HC',''' in cash and pri1es. 4ducational packets, including language, history and art
e5ercises highlighting !other/s @ay, were sent to thousands of schools nationwide.
There are ( P/s of !arketing.
C. P2@,%TB2+
). PB%B+A
8. P2!2TB2+
(. P-A%4!4+T
C. Production.
;asically the product is anything that be offered to a market for attention, ac:uisition,
use, or consumption that might satisfy a want or need. $F% is specially dealing in the
chicken products< ;asically, $F% has the special raspy for chicken products that is why,
$F% known as a chicken specialist allover the glob. $F% target the Asia and east side
because they observe that they people are like the chicken products, so they enter in the
market due to the demand of their chicken products. $F% product variety of product in
the chicken, those products are.
P2@,%T&.
2riginal recipe3 chicken
45tra Tasty %rispy
T!
chicken
"ot Wings
T!
pieces
Tender oast3 chicken
%hunky %hicken pot pie
$entucky +uggest3
%olonel/s %rispy &trips3
"oney ;;L sandwich
2riginal ecipe3 &andwich
Tender oast3 &andwich
Triple %runch3 &andwich
Triple %runch 3Minger3 &andwich
;A+@.
There are three brands of the $F%.
CJ Taco bell
)J Pi11a "ut
8J -ong john silvers
). Pricing.
$F% during pricing their products keep the different points in the mind like they adopt
the cost base price strategy. Pricing of the product includes the Aovernment ta5es and
e5cise duties and then they come at final stage of determine the price of their products.
$F% prices of products are a bit high according to the market segment and it is also
compatible to the stander of their products.
%alculation of the price under %ost ;ased Pricing &trategy.
T%#"' %0&.+ %- C<$98)& S)*(). $& KFC R)+#"0*"&# A&&0"'', N C.DC( ;illion
T%#"' KFC C<$98)& $)9)+ S%'. A&&0"'', N G.ED ;illion
T%#"' R)#"$' S"')+ N HE.D ;illion
S"')+ *$9) %- 4)* C<$98)& $)9) N Total etail &ales O %hicken Pieces sold
N HE.D ;illion O HG.ED ;illion
NHC.GC
We assume that Fi5ed %ost is N HF'''''''''
V"*$"=') C%+# N HF*G''''''
*%-$# M"*/$& is 2r !ark ,p N H))G''''''I)GP of &alesJ
Per ,nit Qariable %ost N HF*G'''''' O GED'''''''
N H '.CCG
U&$# C%+# N Qariable %ost R Fi5ed %ost O %hicken pieces &old
N '.CCG R F''''''''' O GED'''''''
N '.CCG R C.')
N HC.C8G
+ow suppose manufacturer wants to earn )GP mark up on sale. The manufacturer mark
up price is calculated.
M"*8 U4 *$9) N ,nit %ost O IC ? @esired eturn on &alesJ
NC.C8G O IC7.)GJ
N C.C8G O '.*G
N HC.GC
8. Promotion.
Promotion is one of the necessary plates in any form of business or in other words you
can say that promotion is the key of success. Bf you promote your product at the right
time. $F% also known the importance and significance of promotion so they uses the bill
boards the major source of advertisement and one of the most important thing that they
uses media especially the newspapers to promote their products. They are also creating
awareness among the masses about their e5isting product range as well they tell us about
the future product.
!arketing efforts to be taken by the restaurant.
Paste delivery posters at petrol pumps, flats, colleges, pla1as, and departmental
stores.
@istribution of delivery flyers in residential areas, markets, pla1as and institutions
Ias per the planJ
Qisit offices and business places.
(. Placement.
Bn the case of the $F% the placement of the product is not important but the placement of
the restaurant is important. The products of the $F% is cooked at the sport and then
served after that. $F% %avalry branch opened in 9une CDDE, in the main commercial 1one
of %avalry Arounds near the 9innah Flyover. The restaurant is a three7story building
including the basement Iwhere the chicky play area is locatedJ. Bt is ideally located in the
center of a main commercial and residential area of -ahore. The area that $F% %avalry
caters for is the residential and office area of %avalry Arounds and %antt, as the main
target market. Another branch the $F% opened in the -ahore is in Aarden Town
Iopposite to ;arkat !arketJ. $F% also target the Faisalabad and open its branch in @
ground. +ow we can easily judge that the $F% target the place for their restaurant, which
is well known and is in the Porsche area where the income level of the people is high then
the middle class level. ;ecause the prices of the $F% products is high with comparison to
the local products manufacturer who are dealing in the same kind of product in which
$F% is dealing but the prices of the $F% is high due to special taste, high :uality, and
due to international brand, it is the world recogni1ed fast food restaurant all around the
world. &o, for the placing strategy, $F% chose the well income class area for their
restaurants.
CONCLUSION
After my research of $F%, B come to conclusion that $F% has a good product as far as
chicken items are concerned. ;ut they have to increase other varieties to attract the
customers. And they must targets the children, as !c@onald/s targeting by making a play
land because children are the main source and important ones to push their parents to go
to their favorite restaurants. And one more aspect for $F% is that it must also reduce their
prices to compete their competitors like !c@onald, %risps Pins and Pi11a "ut.