PROJECT REPORT On MARKETING STATEGIES OF ………………………………………….

( KFC)

Submitted to M D University Rohtak in partial fulfillment of the requirements for the award of degree of Master of Buisiness Administration

2010 – 2011

Submitted by : Name : Lalita Dahiya Class : MBA 4th SEM University Roll No. / Enrollment No. : 315

INSTITUTE OF LAW AND MANAGEMENT STUDIES SECTOR 40 , GURGAON ( HARYANA)

ACKNOWLEDGEMENT

With profound sense of gratitude and regard, I express my sincere thanks to my guide and mentor Mr.PARAMVEER, for his valuable guidance and the confidence he instilled in me, that helped me in the successful completion of this project report. Without his help, this project would have been a distant affair. His thorough understanding of the subject and professional guidance was indeed of immense help to me. Also, this acknowledgement would remain incomplete without thanking the staff of GURGAON, New Delhi for their whole-hearted and kind cooperation. I am also greatly thankful to the faculty members of our institute who cooperated with me and gave me their valuable time. Acknowledgement

LALIA DAHIYA

Introduction of Company

KFC Corporation, based in Louisville, Kentucky, is the world’s most popular chicken restaurant chain, specializing in Original Recipe ®, Extra Crispy
TM

, and Colonel’s Crispy Strips® chicken with home style

sides and five new freshly made sandwiches. Every day, nearly eight million customers are served around the world. KFC’s menu everywhere includes Original Recipe® chicken—made with the same great taste Colonel Harland Sanders created more than a half-century ago. Customers around the globe also enjoy more than 300 other products—from a Chunky Chicken Pot Pie in the United States to a salmon sandwich in Japan. KFC continues reaching out to customers with home delivery in more than 300 restaurants in the United States and several other countries. And in quite a few U.S. cities, KFC is teaming up with other restaurants, Taco Bell and Pizza Hut, selling nearly fifty years ago; Colonel Sanders invented what is now called “home meal replacement” – selling complete meals to harried, time-strapped families. He called it, “Sunday Dinner, Seven Days a Week.” Today, the Colonel’s spirit and heritage are reflected in KFC’s brand identity – the logo features Colonel Harland Sanders, one of the best-recognized icons in the world.

KFC specialized in chicken and they says, “No body’s cooking like KFC today and we are the chicken experts

“There is no competitor for spicy chicken which is made by KFC”

Introducing New Product

KFC

Pricing Issues PRICING POLICY FOR PRODUCT OF TWISTER Manufacturing cost 5% marketing cost (PER UNIT) Total cost 15% G.S.T +15% RETAIL MARGIN Total retail Price RS. 100/RS. 5/RS.105/RS.25/RS.140/-

• Generate consistently superior financial returns and benefits our owner and employees. 140/RS. 25/RS. • Maintain a commitment to innovation for continuous improvement and grow. providing a pleasant dining experience. with fast .165/RS. Innovative chicken-based products. Consistently deliver superior quality and value in our products and services. Consistently. striving always to be the leader in the market place changes.T +15% RETAIL MARGIN Total retail Price RS.55/RS.S.220/- M ission statem ent “ T o b e t h e l e a d e r i n w e s t e r n s t y l e sqeu ivcik e r e s t a u r a n t s t h r o u g h f r i e n d l y s e r v i c e . To establish in India our position as leading WQSR (Western Quick Service Restaurant) chain.PRICING STRATEGY FOR DEAL 6 Manufacturing cost 5% marketing cost (PER UNIT) Total cost 15% G. serving good value. g o o d q u a l i t r c food an d clean atm osp here ” Goals of KFC • • Build an organization dedicated to excellence.

They have the main ambition to increase & maintain the quality in fast food industry. The colonel’s cooking is available in more then 82 countries around the world. And colonel sanders. practiced in justice of the peace court. Now. the colonel began cooking for hungry travelers who stopped at his service station in Corbin.. and then as a 16-year-old private. but served folks on his own dining table in the living quarters of his service station. After that he was a railroad fireman. sold tires. a quick service restaurant pioneer. When he was 12. KFC India KFC is the world’s No. This meant doing much of the family cooking. Over the next nine year. . KY.friendly. first as a 15-year-old streetcar conductor in New Albany. he was a master of a score of regional dishes. actively began franchising his chicken business at the age of 65. Ind. KFC is introducing a new item “Boneless Fried Chicken”. born September 9. he perfected his secret blend of 11 herbs and spices and the basic cooking technique that is still used today. He held a series of jobs over the next few years. have become a symbol of entrepreneurial spirit. His mother was forced to go to work. operated an Ohio River steamboat ferry. studied law by correspondence. South Africa. in a clean and convenient location. He didn’t have a restaurant then. When the colonel was six. the Kentucky fried chicken business he started has grown to be one of the largest retail food service systems in the world. he moved across the street to a motel and restaurant that seated 142 people. Ind. And not just in America. Ind. with even more attractive and charming taste. sold insurance. By the age of seven. KFC History KFC is an internationally renowned fast food industry in the world. for a job on a farm in Greenwood. his mother remarried and he left his home near Henryville..1 Chicken QSR and has industry leading stature across many countries like UK. his father died. They want to increase their profit through giving maximum satisfaction & other better facilities to people that they want. and Operated service station. When he was 40. Malaysia and many more. 1890.USA. Basically they want to provide their products to anyone that is why they expanding their branches in all over the world. Ate age 10. Now after catching such a marvelous position in the International Market. Australia. Company overview: Colonel Harland sanders. Their aim is to capture the fast food market. soldiering for six months in Cuba. China. and young Harland had to take care of his three year old brother and baby sister. his first job working on a nearby farm for $2 a month. As more people started coming just for food. At all times we must be dedicated to providing excellent and delighting customers. More than two billion of the colonel’s “finger lickin’ good” chicken dinners are served annually.

8. Veggie Snacker and Veg Rice meals.KFC is the largest brand of Yum Restaurants. 4. KFC also has great tasting vegetarian offerings that include the Veggie Burger. honest and direct in our dealings with one and other. 9. flavorful and juicy Original Recipe chicken. Reward and respect the contributions of each individual at KFC. a company that owns other leading brands like Pizza Hut. Expand and update training with time and be the best we can be and more. Be open. Values of KFC 1. A&W and Long John Silver. 7. In India. 6. Taco Bell. Dedicate ourselves to continuous growth in sales. For the vegetarians in India. 2. Toasted Twister. juicy & crunchy Zinger Burger. Its signature dishes include the “crispy outside.Focus all our resources to our restaurants operation because that is where we serve our customers. KFC offers its signature products in India too! KFC has introduced many offerings for its growing customer base in India while staying rooted in the taste legacy of Colonel Harland Sander’s secret recipe. Work as a team. PHILOSOPHY OF KFC . the spicy. Commit ourselves to the highest standard to the personal and professional integrity at all times. 5. Renowned worldwide for it’s finger licking good food. Reward result and not simple efforts. profit and size of organization. Encourage new and innovative ideas because these are the key to our competitive growth. KFC is growing rapidly and today has presence in 11 cities with close to 50 restaurants. Chicken Bucket and a host of beverages and desserts. 3. juicy inside” Hot and Crispy Chicken.

The CHAMPS Program Champs stands for our belief that the most important thing each of us can do is to focus on the customer. CHAMPS stand for the six universal areas of customer expectation common to all cultures and all restaurants concepts. It stands for our commitment to provide the best food and best experience for the best value. THE CHAMPS These are: Cleanliness Hospitality Accuracy Maintenance of Facilities Product Quality Speed of Service .

Situational Analysis Current Products Kentucky fried chicken • Zinger burger • Krushers • GameBox • Twister • Boxmaster • Chicken Bucket • Hot wings • Fries • Corn on the cob • Zing Kong • Snacker(chicken & veggie) .CHAMPS is the philosophy to ensure that the customer has the consistent quality experience in every restaurant. on every occasions and you will be playing role in delivering CHAMPS to our customers. everyday.

it is not difficult for a fast food restaurant to enter the market. Pizza Hut. are not going to want to go to other restaurants they’ve never heard of. The brand name is already established. However. it would be extremely difficult to take over already running major fast food chains' dominancy in India or even make a significant amount of profit.• Veggie Feast • Soft Drink • Coleslaw • Chicken Thali • Veg Finger • Snack Box • Sundae • Soft Twirl • Brownie Sundae Entry For the current Indian market for fast food. especially children who are used to going to KFC as a treat or reward from their parents or grandparents. such as McDonald’s. and any new fast-food entrants would just be presenting something very similar to what’s already there. KFC holds the first-mover advantage into the 'non-veg food specialty food segment' that gives them free reputation. Customers. . Domino's and Subway. these are the barriers to entry for similar restaurant businesses to enter the fast-food chain market. While there are enough people in urban India for any restaurant to survive. While small Neighborhood restaurants generally have low barriers to entry. there is already a large variety in the numerous western-style dining places in India. Also.

pizzas. KFC also sets up stores located near popular tourist attractions. upon its move into India. if KFC raised its price for chicken by a small amount.Buyer/Supplier Bargaining Power The customers of KFC. as in they sell different kinds of fast foods with very different tastes and styles. Though they are competitors. can now be obtained domestically.S. suppliers to also extend branches into India. In terms of human resources. have almost no bargaining power because if only one customer threatens to no longer eat at KFC. While other fast foods serve as substitute to KFC.S. Domino's and Subway. which make them complements to each other. For example. so tickets to these tourist spots are also complementary goods because the more people tour these attractions. KFC has little rivalry with similar fast-food chains in India. Even foods from street vendors count as substitute goods. and if the U. pizza. labor cost is extremely low because the supply of nonskilled workers great exceeds the demand for them. Rivalry Unlike what one would expect. the more customers KFC will get. This is a brilliant strategy because the supplies that KFC would otherwise need to import from the U. With this strategy. their primary products differ greatly from each other. KFC created competition among its suppliers. in this case. home-cooked meals. The suppliers. namely McDonald’s. These substitutes are definitely considered healthy as compared to the fast food chains. urged many of its U. there are a few major competitors in the fast-food industry in India for KFC. burgers and fries. The primary reason is that their core products are different. suppliers decide to raise their prices. The substitute products. the store is not going to lower its price because the cost of losing one customer is not very great. Pizza Hut. and the same can be said of the quantity sold of these products. Indian chicken lovers who may not be as accepting to pizzas (many Indian people strongly dislike the taste of cheese) are not going . would be burgers.S. KFC. With so little buyer and supplier bargaining powers.KFC’s price rises as well. lowering the supplier bargaining power. KFC also began helping local suppliers by giving them technological support to improve their products. In terms of food. they can also serve as complements for fast foods as a whole. have very little bargaining power. especially as individual buyers. This gives us a brilliant strategy. chicken. in that they sell. Traditional Indian dining. If the general price of fast foods goes up. Substitutes and Complements As mentioned above. like the buyers. KFC is able to have a very tight control over its prices and expenditures. KFC can easily switch to the local suppliers. as families could choose any one of these over fast food for a meal. respectively. and sandwiches. and grocery stores with ready-to-eat foods are also substitutes. and sandwiches.

For example. combine the remaining six dry ingredients. In a separate bowl. Dip each piece of chicken into the milk until fully moistened. Roll the moistened chicken in the flour mixture until well coated. . 300. a full meal at KFC ranges about Rs. these restaurants have such different target customers that the fluctuation of price for one restaurant is not going to affect the others.to switch to Pizza Hut just because the price for KFC increased. KFC Original Recipe 6 cups Crisco Shortening 1 eggs well beaten 2 cups Milk 2 cups Flour 2 teaspoons ground pepper 3 tablespoons salt 1 teaspoon MSG 1/8 teaspoon Garlic Powder 1 dash paprika 2 Frying Chickens cut into 6 pieces Place shortening into the pressure cooker and heat over medium heat to the shortening reaches 400F. 100. combine the egg and milk. In addition to that. The drastic difference in price assures no price competition between these restaurants. In a small bowl. drop the covered chicken pieces into the shortening and lock the lid. whereas a full meal at Pizza Hut can cost over Rs. In groups of four or five. When pressure builds up cook for 10 minutes.

CP. Noida-201301 Store Timing:11am to 11pm KFC in West Delhi KFC in South Delhi Back Wing. Noida -201301 Store Timing:11am to 11pm Great India Place. Vasant Kunj-110070 Store Timing:11a. Rajouri Garden. to 11 p. Delhi-10027 Store Timing:11am to 11pm Vikas Surya Plaza. Select Citywalk Mall.m. Delhi-110017 Store Timing:11am to 11pm Vasant Square Mall. Delhi-110075 Store Timing:11 am to 11 pm . Dwarka. Saket.m.KFC Outlets in Delhi KFC in Central Delhi KFC in Noida A-12. Delhi-110001 Store Timing:8:30am to 11pm Sector 18. City Square Mall. Inner Circle. Sector 4.

They promote there products through billboard. GurgaonStore Timing:11 am to 11 pm Ambience Mall. Mall Road. Delhi-110092 Store Timing:11am to 11pm KFC in Gurgaon JMD Regent Mall.Below Netaji Subhash Place Metro Station. pamphlets and through other promotion strategies . They promote their products through special packages. Laxmi Nagar. Delhi-201012 Store Timing:11am to 11pm V3S Mall. Indirapuram. Gurgaon-122001 Store Timing:11am to 11pm Promotions In India KFC not advertise there products too much because people KFC due to its reputation in other countries. Pitampura. Delhi-110034 Store Timing:11am to 11pm KFC in East Delhi Shipra Mall.

DEMOGRAPHICAL BASIS .  Demographical  Behavior  Geographical By using these three bases they segmented the market as under. tastes and behavior who require separate products or marketing mix. In India the niche marketing is being used for particular classes of people.Current target market Segmentation KFC has divided the market of India into distinct groups of customers with different demands. They have made segments of the market on the following bases.

 Urban areas  Sub urban areas . BEHAVIOR In behavioral aspect they segmented the market on the basis of quality. high income. taste and price. average income and low income.e.  Taste conscious  Quality conscious  Class conscious  Combination of price and quality GEOGRAPHICAL BASIS On the basis of the geographical factor we have divided our market in three main segments.In demographics their first segment is consisted of the income factor i. Following are the different possible segments in this regard.

middle class. Purchasing decision: Often KFC changes the purchasing decision of customers because of its good attributes. . 6. 10. 5. Geographic region: Geographically KFC is used in every part of the country as well as all over the world. 7. 8. Gender: KFC is for each gender both male and female. 2. Family life cycle: KFC is suitable in every stage of life like single married couple and also those who have children can use this product.Profile criteria: 1. Attitude: When the customers once buy this product after that they can use the product continuously. 3. Income: Everyone can use the KFCservice upper and middle class . Age: age limitation for using this product above 15 4. Education: It has no need more education that why the person who know something can easily enjoy with this product. Lifestyle: This product is used in every level of social class like upper. 9. Occupation: By profession also everyone can use this product means businessman student workers and other peoples.

Market Coverage Strategy KFC will be using differentiated market coverage strategy.Product positioning Customer perceive this product as a unique product that other are not giving . On the other hand people of urban areas take fast food. KFC has decided to target the market of Urban and Sub-urban Areas of Pakistan.  Normally people of rural areas don’t take fast food.  Income of the people of urban areas is normally high and they can afford to purchase such products. . Attitudes The attitudes of the public is very good people like our this new product like others. Product usage  People are educated and they want variety in their diet. and some make impulse decision as they saw it . Purchasing process: Many people come from home to eat this . which are slightly higher in price as compared to prevailing prices of local food in the market. It means that different marketing mix will be used for different age groups. TARGET MARKET FOR FAST FOOD After evaluation of various segments.

It is very important for a marketing managers to monitor the activities of there competitors. so the number of customers are more in Urban Areas. KFC beats its competitors through the revising marketing strategy at every movement but the main competitor of KFC are Mc Donald COMPETITIVE ADVANTAGE KFC Spicy Products Indian people like spicy products instead of boiled food Arabian Rice and Zinger Burger Free Delivery Chicken is eaten by every community Local Staff and Highly Qualified because local staff can better deal with McDonalds Burger and French Fries Big Mac Charges for home delivery Beef is banned in some community Its Staff consist of simple Graduates and give them training . People of Urban Areas are more quality conscious than the people of Rural Areas. which is made by KFC.  Population density is higher in Urban Areas as compared to Rural Areas. what they are doing? KFC adopted such sort of strategy that there is no competitor for spicy chicken. Competitive analysis Competitors You cannot enjoy the business without competitors.  In Urban Area there lived people from every walk of life and profit generation is easier than in Rural Areas. No organization can afford to ignore there competitors.

These up the demand for particular products and Several components must be considered.the customers KFC uses Top to Bottom and Bottom to Top Approach in Management. These buyers have a need to satisfy their through exchange (Graphic 1). No such Case. people have. Changes in the below described components over the last couple of years have led to big changes in people’s attitudes towards healthy food. It explains why Australians today want to eat healthy and nutritious-rich food in order to keep themselves healthy and that KFC must adjust their range of product and their company image to appeal to these new expectations. (http://www. components have a direct or indirect KFC’s success.com). Graphic 1 Communication needs needs make Industry (a collection of seller) Product / service Money Information Market (a collection of buyers services.marketresearch. Economic Analysis of Market A market in this context refers to a number of all actual and potential buyers of a product (Kotler et al 2003). KFC is Co branding with Walls McDonalds Uses Top To Bottom Approach. as all these impact on Macro environment .

Micro environment The microenvironment consists of all close to KFC. (Kotler et al 2003).KFC operates in a larger macro environment of forces that creates opportunities. They customers. but also threats. KFC has to carefully examine macro environmental trends and must create competitive responses to such trends. components influence KFC’s micro environment: Consumers Micro Environment Graphic 3 (Source: Kotler et al 2003) . and on which KFC has an directly affect KFC’s ability to serve its (Kotler et al 2003). A company such as KFC usually cannot influence trends in the macro environment. as they affect people and organisations on a larger scale. Three major KFC Company Competitors forces that are impact. There are six major macro environmental forces KFC has to take into account. However.

which are already well established throughout India. and families). Therefore.in).COMPETITORS Because the fast food market in India is highly competitive. The characteristics of these individuals and a segmentation of them are discussed later in this report. to ensure that the maximum amount of products can be sold. All this competition makes it quite difficult for KFC to maintain or even broaden their customer base. Strengths and weakness of competitor . CUSTOMERS KFC’s customer market consists solely of the consumer market (Kotler et al 2003). KFC’s products are bought by individuals (males. which directly targets ‘healthy food’ conscious Indians. with the introduction of a new and healthy product range. singles. However. there are a number of other competitors that is also focusing on ‘chicken’ types products.theage. KFC can differentiate itself from most competitors and will gain a competitive advantage. the product range KFC offer should appeal to as many people within this consumer market as possible. KFC’s main competitors are fast food chains such as McDonald’s and Domino’s. as they have already successfully introduced their Salads plus line (http://www. McDonalds’s in particular is a direct competitor.co. females. But. KFC faces a wide number of direct and indirect competitors.

No Home Delivery How they compete their competitors ? It is found that KFC compete its competitors by five ways: • KFC compete its competitors through marketing strategy • They offered different packages at different events like ramdan offer. Attractive Outlets. More entertainment for kids W eaknesses: Same type of Menu.S trengths: 38 products. • KFC compete there competitors by providing good services • They must hired the hard selling persons to market their product in the market and motivate their employees for the sake of organizations and employees do well and they compete there competitors KFC has quality products and through these quality products they compete their competitors Current Sales Analysis Market Share . midnight offer etc. Budget. Huge Marketing.

Chicken planet. Mc Donald’s. It becomes difficult for the companies like Sub way. Due to with over 50% of the market share in fast food industry KFC has recognition around the world and has been globally positioned for many years in India and to capture the market share in India adopts champs philosophy Environmental factors and opportunities Political : . Dixie or those who may want to enter in the market of fast food restaurants.KFC has a very long history and has the most recognize able brand in chicken with over 50% of the market share.

965 trillion U.S. The GDP (Purchasing Power Parity) is estimated at 2.per Capita (PPP) was 2700 U. This will lead to higher buying power in the Hands of the Indian consumers. India’s per capita income is expected to reach 1000 dollars by the end of 2007-08 from 797 dollars in 2006-07.7%. There is a continuous growth in per capita income. Currently government are controlling the marketing of fast food restaurant because of health concern such as cardiovascular and cholesterol issue and obesity among the young and children in the country. Economic: Though for last 1 year their was economic slowdown all across the globe but the sales of KFC and other fast food chains did not slow down to that extent that of other sectors in. The GDP.The operations of KFC are affected by the government policies on the regulations of fast food operation. dollars as estimated in 2008.real growth rate in 2007 was 8. So taking into considerations the economic factors of India KFC is safe. and China. Governments also control the license given for open the fast food restaurant and other business regulation need to follow such as for a franchise business. Good relationship with government in giving mutual benefits such as employment and tax is a must for the company to succeed in any foreign market. dollars in the year 2010.S. Socio cultural: . Foreign direct investment rose in the fiscal year ended March 31 2007 to about $16 billion from just $5.5 billion a year earlier. India has the third highest GDP in terms of purchasing power parity just ahead Japan and behind U. The GDP. The only danger to it will be if there is a terrorist attack in India and the victim is KFC.S.

KFC and Domino’s pizza. For e. The social trend toward fast good consumption is changing and India has seen an increase of 90% fast food consumption from the year 2002. Thus this shows a positive trend for fast food industries in India.1billion people. With the lower rates and increase technology the fast food counters are attracting youth by giving them attractive deals.g. The technological knowhow and expertise will also enter the Indian market with an increase in competition. For example in inventory system. There has also been a continuous increase in the consumption of fast food in India. This population is divided in the following age structure: 0-14 years – 31.2007. This increase is far greater than the increase in the BRIC nations of Brazil (20 per cent). Implementation of technology can make the management more effective and cost saving in the long term.1%.India is the second most populous nation in the world with an approximate population of over 1. . This will also make customer happy if cost savings results in price reduction or promotional campaign discount which will benefits them from time to time. Russia (50 per cent) and China (almost 60 per cent). However KFC should be looking to competitors innovation and improve itself in term of integrating technology in managing its operation.1% and 65 years and above – 5. supply chain management system to manage its supply. For a fast food restaurant.8%. easy payment and ordering systems for its customers and wireless internet technology. technology does not give a very high impact on the company and it is not a significant macro environment variables. 15-64 years – 63. Technological: The Indian fast food Industry is heating up with a lot of foreign players entering the Indian market.

For example is the Halal certification that becomes a concern to Muslim consumers. Critics and concern from all public or activist should be review and support if necessary to ensure we play our social responsibility better. but careful usage of world resources for sustainable development and care for environment safety and health for our future generation. KFC always had been critics for world environmentalist. Other legal requirement that the business owner should follow as stipulated in laws are such as operating hours. Imagine millions of people purchase from fast food operator and how is the impact to world environment by throwing away those hard to recycle packaging. labor and employment laws and quality & environment certification (such as ISO) in which the outlet has been certified. .Environmental: As one of world largest consumer of beef. business registration. potatoes and chicken. once KFC want to introduce whale burger causing uproar because whales are endangered species. Large-scale plantation has effect the environment and lost of green forest opening for plantation activities. In America. KFC once had been criticized for being insensitive to pollution because of using ne based packaging for its food products. Legal factors: As a certified fast food operator. Vegetarian environmentalist criticizes the fast-food giant for cruelty to animals and slaughtering. The legal requirement is important because the offenders will be fined or have their business prohibited from operating which can be disastrous. KFC should protect its integrity and consumer confidence by ensuring all materials and process are as claimed or must followed. tax requirement. there are many regulations and procedures that KFC should follow. Before using paper packaging. This is because high consumption of beef causing the green house effect by methane gasses coming from the cow’s ranch. Our world is getting concern on environment issue and business operating here should not just care for profit.

Company may decide to completely remove this product from the market if it does not do well soon and start bringing in revenue. The product is mostly CASH NEUTRAL. . It has a low market share thus brings low revenue. DOG: KFC’s Veg Thali comes under this category. It has a low market share and although low on expenditure (as company does not spend on its promotion).K CIn ia F d . As KFC is known more for its non-veg food. it has still failed to become a success. They have also tried to come into the beverages market by launching its new brand of shakes called KRUSHERS. it does not bring in much revenue as demand is low. Although company had launched this product much earlier. this also results in low demand for this item. As it is a fairly new product it comes in the category of the Question Mark in the BCG Matrix. This product is individually not bringing any profits and is a cash drain for the company. KFC is advertising a lot to popularize this product so there is a lot of expenditure on it.B GM t ix C ar C p ris y B n le s oe s C ic e h kn K se ru h rs ? Vg e Ta h li C ic e h kn Bc e uk t Boston Consultancy Group (BCG) Matrix Question Mark: Currently KFC have launched a new product in the market.

It has good demand in the market and brings in huge sales revenue. This product is CASH NEUTRAL for the firm. by reducing the expenditure . STAR: The star product of the company is its crispy Boneless Chicken. It has the highest market share amongst all the other products. The development and other expenses are also low and thus this product is a CASH SIRPLUS for the company. It has a high market share and brings in high revenue. But it also has high developmental expenditure involved. The company is trying make this product a cow as well. The profit therefore is generally not very high brought in by this product.CASH COW: KFC’s Chicken Bucket is the most successful product of the company.

weakness. The brand is recognised and trusted in India for its quality products. opportunities and threats and the SWOT analysis of KFC are: STRENGTHS  Goodwill and reputation: The company certainly has earned a good name and reputation by its previous products and services in the market. It is even more recognised in other markets outside India. and customer service. where the company is among the leading fast food giants. It generates $1B revenue each year. The turnover rate in the company is amongst the lowest in the industry. KFC has continued to dominate the dinner and take out segment of the Industry. KFC customer base remained loyal to the KFC brand because of its unique taste. Customer Loyalty: Despite gain by Boston Market and Chick-fill A. It therefore has a good head start and enjoys a good chance of becoming a leader in Indian fast food industry.  Employee Loyalty: Employee Loyalty is one of the major strengths of KFC.Summary of current situation SWOT analysis mean strength.  Ranks highest among all chicken restaurant chains for its convenience and menu variety. price.  .

the developing countries like India and China promises a good market and generation of demand in the future. to less than 56 percent in 2009 . this is a good news for the company. More than 60% of the population is under the age of 30yrs.  Huge competition in this segment. As the young generation are more open to fast foods and demand it more. With more than 70% of the markets in india being unexplored and un organised. peoples taste and preferences and their likes and dislikes.WEAKNESSES KFC was losing market share as other Chicken chain increased sales at a faster rate. Cross Culture: Generally there is a good acceptance of American culture of fast food in India. This may lead to failure of their products as they are not in line with the Indian mind set.   New variety: Company can also come up with new variety in the menu like Pizzas.  OPPURTUNITIES  New Markets: Globalisation has opened doors for new markets for the company. South India is especially very much so. . Large Youth population: India has a very large share of youth population a compared to other countries. Thus Indian mindset is fast changing. As the developed markets are mostly saturated.  KFC has not yet invested much on R&D. a 10 -years drop of 15 percent. People are opening up to fast foods more regularly in their daily lives and not just keeping it a once in a month affair. garlic breads to attract more customers. This may prove fatal for the company.  India is still mostly a vegetarian dominated cultured society. This may reduce the market share of the company. KFC has a good scope of expanding its operations in the country. and innovating new products for Indian Markets.  KFC share of Chicken Segment sales fell from 71 percent 1999 .

KFC is under massive attacks from animal organisations. questioning the way KFC’s suppliers are threatening the chicken. Currently.McDonald’s with sales of more than 19 billion in 1999.THREATS Competition: Competitor companies like McDonalds are fast catching up with the market. company necessarily needs to look at offshore foreign markets to generate  sales and keep up the profits. before they got slaughtered.   Organisations like PETA People for Ethnic Treatment for Animals have given a bad name to the company which may prove disastrous to the image of the firm. as less people are consuming KFC chicken   Saturated US Market: Now KFC cannot rely on just its home market to generate sales. accounted for 15 percent of the sales of the nation’s top 100 restaurant chains. . As the US markets are already saturated and leave no or little scope for growth. such as the one from PETA are affecting KFC’s brand image in a negative way and result in direct dollar losses. Anti-KFC campaigns.

customer not depend on us.MARKETING STRATEGIES OF KFC There are different strategies adopted by KFC for different events. KFC possess a western culture because some of the Indian people are also following that culture. They market their products on different events and in different activities as they are helping SOS village.  KFC open their outlets on reachable places. kids become the future permanents customers and we know very well that without any marketing strategy no marketing program and no product is successful because we depend upon customers. According to KFC.  KFC is following Niche Marketing and Societal Marketing techniques.   KFC are moving from Divisional Level to the District level by opening branches  KFC also offer free home delivery. .

There are 4 P’s of Marketing: 1.000 in cash and prizes. were sent to thousands of schools nationwide. KFC’s “All-American salute to Mothers” national card contest has been KFC’s way of honoring moms and their families for making mother’s Day KFC’s biggest sales day of the year. history and art exercises highlighting Mother’s Day. PLACEMENT . including language. PRODUCTION 2. PRICING 3. PROMOTION 4.  KFC gives more priority to Family. Educational packets. The contest encourages children to creatively express their feelings for their moms by making a homemade card and give them chance to compete for more than $10. KFC menu consists of more than 30 products. MARKETING Since 1982.

KFC known as a chicken specialist allover the glob. so they enter in the market due to the demand of their chicken products. KFC has the special raspy for chicken products that is why. KFC target the Asia and east side because they observe that they people are like the chicken products. Basically. KFC product variety of product in the chicken. those products are: PRODUCTS: • • • • • • • • • • • • Original recipe® chicken Extra Tasty CrispyTM chicken Hot WingsTM pieces Tender Roast® chicken Chunky Chicken pot pie Kentucky Nuggest® Colonel’s Crispy Strips® Honey BBQ sandwich Original Recipe® Sandwich Tender Roast® Sandwich Triple Crunch® Sandwich Triple Crunch ®Zinger® Sandwich . or consumption that might satisfy a want or need. use. acquisition. KFC is specially dealing in the chicken products.Production: Basically the product is anything that be offered to a market for attention.

914 Billion Total KFC Chicken Pieces Sold Annually = 5. Calculation of the price under Cost Based Pricing Strategy: Total Pounds of Chicken Served in KFC Restaurant Annually = 1. Pricing of the product includes the Government taxes and excise duties and then they come at final stage of determine the price of their products.9 Billion / $5.Pricing: KFC during pricing their products keep the different points in the mind like they adopt the cost base price strategy.89 Billion Total Retail Sales = $8.89 Billion =$1.BRAND: There are three brands of the KFC: 1) Taco bell 2) Pizza Hut 3) Long john silvers 1.9 Billion Sales Price of per Chicken Piece = Total Retail Sales / Chicken Pieces sold = $8. KFC prices of products are a bit high according to the market segment and it is also compatible to the stander of their products.51 We assume that Fixed Cost is = $6000000000 Variable Cost = $675000000 Profit Margin is Or Mark Up = $225000000(25% of Sales) Per Unit Variable Cost = $675000000 / 5890000000 = $ 0.115 Unit Cost = Variable Cost + Fixed Cost / Chicken pieces Sold = 0.115 + 6000000000 / 5890000000 .

   4.51 3. plazas.75 = $1.02 = $1. Marketing efforts to be taken by the restaurant: Paste delivery posters at petrol pumps.135 / 0. Distribution of delivery flyers in residential areas.135 Now suppose manufacturer wants to earn 25% mark up on sale. The products of the KFC is cooked at the sport and then served after that. in the main commercial zone of Cavalry Grounds near the Jinnah Flyover. If you promote your product at the right time. KFC Cavalry branch opened in June 1998.= 0. 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.115 + 1. plazas and institutions (as per the plan) Visit offices and business places. KFC 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. and departmental stores. flats. markets.25) = 1. The restaurant is a three-story building including the basement (where the chicky play area is located).135 / (1-. The manufacturer mark up price is calculated: Mark Up Price = Unit Cost / (1 – Desired Return on Sales) =1. They are also creating awareness among the masses about their existing product range as well they tell us about the future product. as the main target market. It is ideally located in the center of a main commercial and residential area of Lahore. colleges. The area that KFC Cavalry caters for is the residential and office area of Cavalry Grounds and Cantt. Another branch the KFC opened in the .Placement: In the case of the KFC the placement of the product is not important but the placement of the restaurant is important.

Lahore is in Garden Town (opposite to Barkat Market). high quality. and due to international brand. Because the prices of the KFC products is high with comparison to the local products manufacturer who are dealing in the same kind of product in which KFC is dealing but the prices of the KFC is high due to special taste. for the placing strategy. Free from diseases and bacteria. Product Issues General description: Features: Quality Control Over Ingredients Every Chicken Tested K & N’s state-of-the-art Quality Assurance Lab monitors the entire integration process from livestock to feed and on to preparation of ready-to-cook and cooked products. it is the world recognized fast food restaurant all around the world. KFC also target the Faisalabad and open its branch in D ground. Now we can easily judge that the KFC target the place for their restaurant. KFC chose the well income class area for their restaurants. So. which is well known and is in the Porsche area where the income level of the people is high then the middle class level. . drug residues and other contaminants. Every Chicken Certified HACCP – K & N’s ensures food safety by implementing the international HACP (Food Safety System) and enjoy the unique privilege of being the first and only HACCP certified company is India producing chicken and chicken products.

Quality Assurance Certificate Director General ( Research ) has issued quality assurance certificate for the chicken used by KFC. .

Environmental concerns Over and above ensuring our packaging is supplied via recycled or renewable resources.Packaging We are asked as many questions on our packaging as our products by our customers. By law we are required to have virgin fibre board in any part of the packaging that is in contact with food. KFC are enthusiastically complying with the new environmental directives on recovery and recycling of packaging waste. The packaging for KFC products is chosen according to performance against three key criteria: Heat Retention Moisture removal Grease absorption The packaging material and carton design are all adapted to maximise performance against these three criteria. Recycled Paper All our clamshells and chicken boxes contain as much recycled material as it is legally allowed. Any virgin fibre comes from board suppliers who use pulp bought from managed forest in Scandinavia. Litter We at KFC UKI are aware of our responsibilities to the Management of Litter and all our packaging carries the ‘Keep your Country Tidy’ signs . This ensures that any wood cut for paper production is replaced with new plantings.

Branding This research measured and compared the brand identity of Kentucky Fried Chicken (KFC) in India. These findings support a model where differences in cultural frames of reference lead consumers to actively localize the brand identity of this nominally globalized product. . products.properties. than the Americans. presentations. Brand identity impressions were correlated with overall customer satisfaction and with future patronage intentions for both groups. The Chinese also had much more positive impressions of KFC. showed that the respondents were more apt to eat within KFC restaurants. and spend more time doing so. and publications. Brand identity was defined as the customer impressions of four different KFC identity elements . A survey of young consumers in the countries (n = 795).

.c to the customers. keychain. e.Promotion Issues Sales promotion For the sales pormotion KFC introduced their goods like watches .t.

New Delhi advertising agency for KFC ZINGER BURGER (KFC company) in INDIA. . It was released in the June 2009.Advertisment The advert titled Pool was done by OGILVY & MATHER. Business sector is Fast food outlets & restaurants.

. the original. In 2007. Questionnaire that was prepared . The commercial then shows the lead singer at a KFC eating the "wicked crunch box meal" and saying "Oh man that is hot". non-acronymic Kentucky Fried Chicken name was resurrected and began to reappear on company marketing literature and food packaging. as well as some restaurant signage. the lead singer then swallows fire. DATA ANALYSIS AND PRESENTATION A.One of KFC's latest advertisements is a commercial advertising its "wicked crunch box meal". The commercial features a fictional black metal band called "Hellvetica" performing live.

When will you be back?  very soon. 6. 5. How close is your house to your nearest KFC outlet?  Within 1 Km.  I mostly like to dine in.  May be sometime later. 4.  Just me and someone.  Above 5 Kms.  Between 3 – 5 Kms. Do you want a KFC home delivery service?  yes  Doesn’t make much of a difference  No thanks Above Average Average Below Average Poor The data we received is as follows:- . Tick Your Choice (√) Perfect Food Quality Food Temperature Waiting Time Menu Board Sitting Arrangement Restaurant Temperature Music Restaurant Cleanliness Overall Experience 2. 3.  4 or more. Never. Would you rather order than Dine in?  I like to mostly order at home. How many people were in your group?  I was alone.  No fun without Dine in.1.

We also inquired “How close is the nearest KFC outlet from your house? .We did a survey on KFC on people with age group of mostly 20-25yrs. and following were the results. As seen below KFC has shown a good report on all the micro factors that we considered. We also asked questions on whether they would like KFC to start homedelivery services. Mostly all were open to non-veg food.

Would you like to order at home or Dine in? CONCLUSIONS AND RECOMMENDATIONS .

time shortage or just not willing to come and dine. KFC expects a rise in the orders by at least 20% by starting this service.DATA INTERPRETATION It is clear from the above report that a high number of people actually like to order from their home or workplace rather than coming. Thus it would be in the best interest of the company to start the service as soon as possible and capitalise on the opportunity. . This may be due to more convienence. Certainly the home delivery market is huge and KFC can take well advantage of the situation.

Sign up to vote on this title
UsefulNot useful