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Applied Marketing

ACKNOWLEDGEMENT

Our profound gratitude goes to God Almighty, most gracious, most merciful, who gives us wisdom, knowledge and understanding to live our lives as human being. We would like to thank our Teacher; Sir. Waqar Usmani who makes it possible for us to finish our project in a best way. And finally, we would like to thank our family members and friends for always be there for us. And we would like to thank from bottom of heart to Mr. Muhammad Nouman (Executive Marketing Services Corporate) of KFC.

MISSION STATEMENT
Hamdard Institute of Management Sciences (HIMS) 1

Applied Marketing

KFC Management feels so strongly about recognition that it's near the top of their corporate mission statement. "Recognition: we find reasons to celebrate the achievements of others and have fun doing it," is right up there with "Customer Focus" and "Belief in People."

Vision

Hamdard Institute of Management Sciences (HIMS)

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Applied Marketing

KFC’s vision is to bring people of all ages, races and backgrounds together to enjoy’ Soul Food’ – ‘proper food at reasonable prices’ – within bright and fun interiors. KFC is designed to be perceived as a fun and inclusive brand.

Hamdard Institute of Management Sciences (HIMS)

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Applied Marketing

DEDICATION:

“I dedicate my project efforts to our respectable teachers who taught and hold our hands on several occasions to complete such complicated and interesting project”.

TABLE OF CONTENTS

Hamdard Institute of Management Sciences (HIMS)

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.............................................................................................................................12 6-PRODUCTS:..............................................................................................................................................................Applied Marketing ACKNOWLEDGEMENT...................................................................................3 million (2007).......................................................... It has 62 outlets around the country providing different menu items for different cities..........................................................................................................................30 F-PRODUCT CLASSIFICATION WITH PRODUCT LIFE CYCLE:.......27 ECONOMICAL FECTORS:.................................................................3 TABLE OF CONTENTS..............................23 B-CURRENT TARGET MARKET:..............8 Type Fast Food Chain..........8 ...9 Current Position...................................................................................................................................27 POLITICAL FECTORS: ............................ Kentucky..............................20 9-RESEARCH PRACTICES:.........................................................................9 Organizational Structure:...................................................................... capabilities and its changing marketing opportunities....................10 5-Market Share:.............................................21 Current Research practices:.................................................................................................................................................8 Founded 1929 (North Corbin Kentucky)............................................................................4 4-INTRODUCTION:.....................8 Parents Yum! Brands................................................................................................................................................................................8 Employees 24000 (2007)...........kfc...32 G-PRICING STRATIGIES:......................................................28 TECHNOLOGICAL FECTORS: ......................................................................................................................................................................28 SOCIAL FACTORS:.14 QUALITY ASSURANCE CERTIFICATE:........................................................................................................................................................................................................................................19 The process of developing and maintaining a strategic fit between the organizational goals...................18 7-STRATIGIC PLANNING:.............9 Operation in Pakistan:.....10 KFC is serving 18 big cities of Pakistan in different region in the country............................................................................1 ......................................8 Industry Fast Food.......25 C-FACTORS EFFECTING SALES:............................23 A-SEGMENTTATION:.........................com ............................................................................................33 Hamdard Institute of Management Sciences (HIMS) 5 .................................................29 E-CUSTOMER RELATIONSHIP MANAGEMENT STRATIGY:.......................8 Headquarter Louisville..............................................8 Web Site www..............................................................19 8-MAJOR COMPETITORS:..................................................................22 10-BASIC INFORMATION REGARDING MARKETING STRETEGIES:...............10 First KFC:................................................8 Founder Harland Sanders..............................................................................................................................................................................................26 D) PEST ANALYSIS:..................................................................................................................................................................8 Revenues $ 520..................................................................................

.................41 11-SWOT ANALYSIS:.....................................................................................................................................................................41 12 –CONCLUSION:.......45 Bibliography:............................................................37 J-TARGETS THAT WOULD LIKE TO ACHIEVE:........................................................................................................44 14 -RESOURSE PERSON: .......................45 Hamdard Institute of Management Sciences (HIMS) 6 ............................................44 13 –RECOMMENDATIONS:...............................................35 I-PROMOTION STRATIGIES:........................................................................................................................41 L-EXPECTATIONS FOR THE COMING YEAR:....................................Applied Marketing H-CHANNEL MANAGEMENT:..............................................................................................40 K-EXPENDING TARGET MARKET:....................................................

Applied Marketing Hamdard Institute of Management Sciences (HIMS) 7 .

Type Founded Founder Headquarter Industry Revenues Employees Parents Fast Food Chain 1929 (North Corbin Kentucky) Harland Sanders Louisville.500 KFC. Inc.. Long John Silver's and Pizza Hut restaurants in more than 100 countries and territories.Taco Bell. Kentucky Fast Food $ 520. which is the world's largest restaurant system with over 32.3 million (2007) 24000 (2007) Yum! Brands Hamdard Institute of Management Sciences (HIMS) 8 . KFC is part of Yum! Brands. It is a subsidiary of YUM international.Applied Marketing 4-INTRODUCTION: It American based fast food chain all over the world. A&W All-American Food™.

which owns licenses and its own restaurant throughout Pakistan and the middle-east. Dubai-based Company the Cupola Group. KFC has displayed banners that it servers Halal food all over its outlets which represents Pakistani culture. The machinery is all automated and is in conformance to international standards. after the invasion of Afghanistan and Iraq. The Pakistani culture has also molded the operations of KFC in Pakistan. The most significant is the way it has changed the eating habits of the local population. And KFC has also brought the idea of self-service in Pakistan.Applied Marketing Web Site www.com Operation in Pakistan: KFC came to Pakistan in 1996 with the first branch opening in Karachi and later in Lahore. which resulted in loss of significant business. They also offer families’ deals as the people are very close to their families and like to have food with them. KFC has also brought some changes in the culture of Pakistan. Food Inspection Teams from Health Ministry visits twice a year to ensure Hygienic Conditions at the Kitchen. People now are aware of unhygienic conditions that prevail in some of local restaurants. Moreover. Performance Overview KFC has taken advantage of all these excellent investment opportunities that Pakistan offers for franchising and has expanded and penetrated the market a lot.kfc. Procurement Issues All the raw materials like chicken are bought from value chicken. KFC has adapted to the legal and political environment and conditions of Pakistan. General Manager (GM) Manager Assistant Manager (I) Assistant Manager (II) Organizational Structure: The KFC adopted traditional structure for their outlets that Shift In-charge Counter workers Hamdard Institute of Management Sciences (HIMS) Kitchen workers Guards 9 . vegetables from Monsalwa and they use caned fruit for salads. The Franchisee was a Pakistani owned and operated. The company's creative have been changed significantly over the years to promote a Pakistani image rather than an American one. All the outlets of KFC in Pakistan present Pakistani food culture. KFC officials often visit the outlets without giving prior notice in order to check the conformance to quality standards and procedures.

Born and raised in Henryville. Hamdard Institute of Management Sciences (HIMS) 10 . World's first KFC in South Salt Lake. he prepared the chicken in an iron skillet. It has 62 outlets around the country providing different menu items for different cities. There is one General for Pakistan. When Sanders prepared his chicken in his original restaurant in North Corbin. Utah. and added a motel he bought across the street. The following year Sanders expanded his restaurant to 142 seats. Sanders first served his fried chicken in 1930 in the midst of the Great Depression at a gas station he owned in North Corbin. The dining area was named "Sanders Court & Café" and was so successful that in 1936 Kentucky Governor Ruby Laffoon granted Sanders the title of honorary Kentucky Colonel in recognition of his contribution to the state's cuisine.Applied Marketing other food chains are following. Kentucky. Manager The outlet is leaded by the Manager. too long for a restaurant operation. First KFC: The restaurant in North Corbin. since replaced by a new KFC on the same site. Current Position KFC is serving 18 big cities of Pakistan in different region in the country. which took about 30 minutes to do. Indiana. Kentucky where Colonel Sanders developed Kentucky Fried Chicken. and one shift in-charge for each shift. that supervises the performance of counter workers and kitchen workers. assisted by two assistant managers. Sanders passed through several professions in his lifetime.

This store is notable for a 56-foot (17 m) tall sign that looks like a chicken. One of the longest-lived franchisees of the older Col. The first to take him up on the offer was Pete Harman in South Salt Lake. Utah. Colonel Sanders' nephew.Applied Marketing In 1939. he sold his properties and traveled the U. as opposed to the KFC chain. Hamdard Institute of Management Sciences (HIMS) 11 . resulting in a greatly reduced cooking time comparable to that of deep frying. The company owned many Northern Ohio diner-style restaurants. the chain has been sold three more times. the last of which closed in 2004. some of the older KFC restaurants have become famous in their own right. Sanders' chicken concept. they opened the first "Kentucky Fried Chicken" outlet in 1952. was built for an earlier fast-food restaurant on the site called Johnny Reb's Chick. which made it part of its Tricon Global Restaurants division. Sanders sold the entire KFC franchising operation in 1964 for $2 million USD Since that time. known locally as the Big Chicken. By the early 1960s Kentucky Fried Chicken was sold in over 600 franchised outlets in both the United States and Canada. often those headed to Florida. It is often used as a travel reference point in the Atlanta area by locals and pilots. Additionally. Lee Cummings. Georgia. Lee's Famous Recipe Chicken. which in turn was spun off in 1997. Chuck and Shake. was the Kenny Kings chain. Sanders altered the cooking process for his fried chicken to use a pressure fryer. so when the route planned in the 1950s for what would become Interstate 75 bypassed Corbin. One such restaurant is located in Marietta. S. In 1940 Sanders devised what came to be known as his Original Recipe. The sign. most recently to PepsiCo. Today. and has now been renamed to Yum! Brands. took his own Kentucky Fried Chicken franchises (and a chicken recipe of his own) and converted them to his own "spin-off" restaurant chain. to sell his chicken to restaurant owners. The Sanders Court & Café generally served travelers. together.

The BCG assumes that growth rates (life cycle stages) affect a firm’s finances. Kentucky as a closely-guarded secret. Only two members within the Yum! Corporation knows the recipe in its entirety. Chicken planet. The underlying theory for examining market growth rate is the industry life cycle. Dixie or those who may want to enter in the market of fast food restaurants. the referent standard is the industry growth rate measured against the SBUs’ growth rate. Hamdard Institute of Management Sciences (HIMS) 12 . 5-Market Share: We can divide it into two parts 1) Around the World 2) Around the Pakistan 1) Around the World KFC has a very long history and has the most recognize able brand in chicken with over 50% of the market share.food industry. (A&W) are located in the same fast. It becomes difficult for the companies like Sub way.Applied Marketing The original handwritten recipe is kept locked away at the KFC corporate headquarters in Louisville. Mc Donald’s.

because the rewards will be a cash cow if market share is kept. high market share) • Use large amounts of cash and are leaders in the business so they should also generate large amounts of cash. However if needed any attempt should be made to hold share.Applied Marketing Asia Europe ? USA America Placing products in the BCG matrix results in 4 categories in a portfolio of a company: 1. Stars (=high growth. • Frequently roughly in balance on net cash flow. So. KFC Malaysia is under Star position. Hamdard Institute of Management Sciences (HIMS) 13 .

• Beware of expensive ‘turn around plans’.Applied Marketing 2. investments needed should be low. and because of the low growth. low market share) • Avoid and minimize the number of dogs in a company. Keep profits high. use. Basically. or consumption that might satisfy a want or need. 6-PRODUCTS: Basically the product is anything that be offered to a market for attention. low market share) 2) Around the Pakistan It has covered 80% of the market share in fast food industry KFC has recognition around the world and has been globally positioned for many years in Pakistan and to capture the market share in Pakistan adopts champs philosophy. Cash Cows (=low growth. Dogs (=low growth. 1) Chicken 2) Burger 3) Desserts & Beverages Hamdard Institute of Management Sciences (HIMS) 14 . KFC target the Asia and east side because they observe that they people are like the chicken products. 4. KFC product variety of product in the chicken. 3. high market share) • Profits and cash generation should be high. Question Marks (= high growth. KFC is specially dealing in the chicken products. acquisition. KFC has the special raspy for chicken products that is why. KFC known as a chicken specialist allover the glob. so they enter in the market due to the demand of their chicken products. those products are: Product Categories There are different products divided into sections according to the differentiation in them.

chopped chicken in a sauce or fried chicken strips. KFC's specialty is fried chicken served in various forms. The regular sandwiches are served on either a sesame seed or corn dusted roll and are made from either whole breast fillets (fried or roasted). • Kentucky Grilled Chicken . there is the chicken fillet burger (a chicken breast fillet coated in an original-recipe coating Hamdard Institute of Management Sciences (HIMS) 15 . It has less fat. Australia and New Zealand. thighs.This marinated grilled chicken is targeted towards health-conscious customers. sandwiches are referred to as "burgers". is made using a garlic marinade and double dipping the chicken in flour before deep frying in a standard industrial kitchen type machine. • KFC has two lines of sandwiches: its "regular" chicken sandwiches and its Snackers line. The other chicken offering.Applied Marketing 4) Snacks & Side Orders 1) Chicken KFC's Original Recipe fried chicken and French fries 1. KFC's primary product is pressure-fried pieces of chicken made with original recipe. and sodium than the Original Recipe fried chicken. and wings that are coated with the Original Recipe seasonings before being grilled. In the UK. It features marinated breasts. The Snackers line are value priced items that consist of chicken strips and various toppings. Introduced in April 2009. extra crispy. calories. drumsticks.

picsearch. which include a slice of cheese and a hash brown. wings. In Europe. nuggets and popcorn chicken. and 2) the Grilled Mexican twister/Spicy Toasted Twister (UK) (chicken breast supplemented by tortilla chips and salsa. • KFC Fillers are a 9" (22cm) sub. the Twister is sold in two varieties: 1) the Grilled Twister (chicked strips). 2) Burgers It includes the following burgers items Mighty Zinger Zinger Extreme INCLUDEPICTURE "http://media5. Both of these are available as "tower" variants. They also offer potato wedges. • A variety of smaller finger food products are available at KFC including chicken strips. including several types of barbecue sauces and buffalo sauce.com/is?dfwealbLww8K5q36OHJzc1XaV8mU6NuXeEhPUnp74PA" \ Fish Zinger Hamdard Institute of Management Sciences (HIMS) 16 . • The KFC Twister is a wrap that consists of either chicken strips or roasted chicken. lettuce and (pepper) mayonnaise wrapped in a tortilla. tomato. Shish kebab .in several markets KFC sells kebabs.Applied Marketing with salad garnish and mayonnaise) and a Zinger Burger (as with the former but with a spicier coating and salsa). UK: adds only salsa to pepper mayonnaise). These products can be ordered plain or with various sauces. available in four varieties over the summer period in Australia.

Chicken Burger Sub 60 3) Desserts & Beverages Scoop of Walls Fruit Salad Large Drink Mineral water regular Mineral water large Coffee Tea 4) Snacks & Side Orders Nuggets Regular Fries Large Fries Corn on the Cob Arabian Rice Dinner Roll Hot Shots Cheese Other than fried chicken. Hamdard Institute of Management Sciences (HIMS) 17 . french fries and mashed potatoes with gravy). various potato-based items (including potato wedges. biscuits. many KFC restaurants serve side dishes like coleslaw.Applied Marketing Zinger burger Twister Col. baked beans. steamed vegetables and corn on the cob. macaroni and cheese. rice.

Hamdard Institute of Management Sciences (HIMS) 18 KFC .Applied Marketing QUALITY ASSURANCE CERTIFICATE: Director General (Research) has issued quality assurance certificate for the chicken used by KFC.

Hamdard Institute of Management Sciences (HIMS) 19 . That is the reason that they are expending there market size by focusing on sub urban areas and targeting middle class people by providing them differentiated products at a fair price. KFC is also going to increase its sweet dishes to avail the opportunity available for them.Applied Marketing 7-STRATIGIC PLANNING: The process of developing and maintaining a strategic fit between the organizational goals. Strategic planning sets the stage for the rest of the planning in the firm. Although these are good and profitable but dynamic changes in environment are requiring identifying the attractive opportunities. They are opening their new mobile outlets in there potent ional markets. KFC is looking that how much its current strategies are beneficial for them. capabilities and its changing marketing opportunities.

Applied Marketing 8-MAJOR COMPETITORS: • • • • • • • • AFC Enterprises Chick-Fil-A Popeye’s Boston Market Kenny Rogers McDonald’s Domino’s Wendy’s Hamdard Institute of Management Sciences (HIMS) 20 .

Now they are entering in sub urban areas where the customers are not very high income and not to much quality Hamdard Institute of Management Sciences (HIMS) 21 . First of all they send their mobile container in that particular city and conduct the research practices and analyze the market. R&D department conducts their research for the solution of problems. 2) It includes the external practices that are time consuming for the organization like opening of outlet in any new city around the country. If they are going to open a new outlet in a new city. KFC has a research and development department about particular problems.Applied Marketing • • • Burger King Checker’s Sonic 9-RESEARCH PRACTICES: It is divided into two sections 1) Internal 2) External 1) In internal research Practices Company’s own R & D is involved in shorts research practices that are easily solvable by R & D. They also conduct research practices for their target market.

Applied Marketing conscious that’s why KFC is providing them low price products according to their taste and wants. Company’s internal R&D is not only doing research but they are also conducting research through external sources. taste and quality. Factors involved in research practices: There are following factors which are not ignorable by the research conductors 1) 2) 3) 4) Purchasing Power of the people Household income Per capita income Competitors in the segment Current Research practices: Outlet in Sahiwal KFC is going to open its new branch/outlet in Sahiwal before this it will conduct a research whether this outlet will success or not. They are counting their research in Sahiwal for the sack of new branch/outlet. In which the most common are Aftab associates. Although the market of Sahiwal is not very wide but they think that will successful in Sahiwal due to their differentiated products. They will examine their competitors in Sahiwal that is AFC basically and others are local brands that are not difficult to compete. New product launching Hamdard Institute of Management Sciences (HIMS) 22 .

e. They have made segments of the market on the following bases. Hamdard Institute of Management Sciences (HIMS) 23 KFC .  Demographical  Behavior  Geographical By using these three bases they segmented the market as under. For this purpose KFC conducted the launching test of the product in the more attractive cities of the country. In Pakistan the niche marketing is being used for particular classes of people.Applied Marketing KFC is launching the new product (Hot Wing) in the existing cities of the Pakistan. tastes and behavior who require separate products or marketing mix. DEMOGRAPHICAL BASIS In demographics their first segment is consisted of the income factor i. 10-BASIC INFORMATION REGARDING MARKETING STRETEGIES: A-SEGMENTTATION: KFC has divided the market of Pakistan into distinct groups of customers with different demands. high income. average income and low income.

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. Income: Everyone can use the KFC service upper and middle class . 5. Following are the different possible segments in this regard. Age: Age limitation for using their products is above 7.  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 two main segments. Occupation: By profession also everyone can use this product means businessmen. taste and price. 3. 4. . 8. Education: It has no need more education that why the person who know something can easily enjoy with their products. Attitude: When the customers once buy this product after that they can use the product continuously. Hamdard Institute of Management Sciences (HIMS) 24 KFC 1.Applied Marketing BEHAVIOR In behavioral aspect they segmented the market on the basis of quality. workers and other peoples. 6. 7. Gender: KFC is for each gender both male and female. students. middle class.  Urban areas  Sub urban areas PROFILE CRITERIA: 2. Lifestyle: This product is used in every level of social class like upper.

 In Urban Area there lived people from every walk of life and profit generation is easier than in Rural Areas.  Normally people of rural areas don’t take fast food. Purchasing decision: Often KFC changes the purchasing decision of customers because of its good attributes. Population density is higher in Urban Areas as compared to Rural Areas. 10. B-CURRENT TARGET MARKET: KFC will be using differentiated market coverage strategy. On the other hand people of urban areas take fast food.  People of Urban Areas are more quality conscious than the people of Rural Areas. so the numbers of customers are more in Urban Areas.  People are educated and they want variety in their diet.Applied Marketing 9. It means that different marketing mix will be used for different age groups. Hamdard Institute of Management Sciences (HIMS) 25 KFC KFC .  Income of the people of urban areas is normally high and they can afford to purchase such products. KFC has decided to target the market of urban and Sub-urban Areas of Pakistan. which are slightly higher in price as compared to prevailing prices of local food in the market. Geographic region: Geographically KFC is used in every part of the country as well as all over the world. After evaluation of various segments.

Last two years the terrorism increases that has bad impact on the KFC annual sale and the assets loss in Hamdard Institute of Management Sciences (HIMS) 26 . Due to gradually decrease in per capita income of Pakistan’s economy also decreasing the annual sale of KFC Fast Food Chain all around the country as well as world. bird flu disease. There are following factors that can influence the sale as increase or decrease. If there is any bird flu disease in any part of the world it automatically has impact on Pakistan’ KFC fast food chain in the country.Applied Marketing C-FACTORS EFFECTING SALES: There are so many factors that are effect the sales of KFC. political instability of Pakistan. It is a graph that shows the sale of KFC high point indicates the before Economic crisis and low point indicates the after Economic crisis. Terrorism: It is a big problem for Pakistan’s economy as well as KFC. etc. terrorism. Global Economic Crisis: Now in these days all global has economic crisis all round the world that has bad impact on the KFC sale. Bird Flu Disease: It is also a great danger for the KFC because they are chicken specialist in the world and perfect in taste. The demand of the chicken decreases the sale of the KFC also decreases in the business process. These includes over all world economic crises.

Peshawar. Some of their outlets have burned in Karachi at the death of Benzir Bhoto. These factors are not controllable by the organization. Quetta and other big cities in which KFC is serving its services has huge loss. Now a day so side bombers are also a big danger for KFC. assets are insured but the daily sale is decrease due to breakdown in daily operations that are not carried out by the Franchises. Some of their products are banded by the government because these are not Halal from Islam point of view. Organization can not neglect these factors. healthy products and by offering affordable prices. There are different factors such as laws on business employment. pollution and taxation apply on the organization which it has to follow regarding the rules. Every organization faces these factors for running the business process in the world. In Karachi. POLITICAL FECTORS: Marketing and business decisions are strongly affected by the changing in political environment. D) PEST ANALYSIS: Pest analysis includes how political. Govt.Applied Marketing different cities in the country. Instability of Government: Hamdard Institute of Management Sciences (HIMS) 27 . economical. Benzir Bhutto Death: The political instability of Pakistan is affecting the progress of KFC. also has increased the sales tax from 15 % to 21%that has raised the prices of their products. These factors have reduced the sales of KFC but they are competing with these factors by offering better quality. social and technological factors are effecting the organization.

norms. It is an American base company therefore people think ECONOMICAL FECTORS: It includes the following sub factors which has impact on the organization business process in the Pakistan. Hamdard Institute of Management Sciences (HIMS) 28 . Purchasing Power: It also has great impact of the business process in any areas of the world like Pakistan because if there is high purchasing power then KFC can earn more profits and there is low purchasing power then it might be loss for the firm. Purchasing power of the people will also increase so they will spend more on purchasing. If there is economic growth in the country and per capita income is increasing due to increase in GDP. SOCIAL FACTORS: Culture element includes the attitudes. Growing inflation has reduced the purchasing power of people. behaviors and associated demographic trends that are features of a given geographic area. policies of the country also changes specially in Pakistan. values. Unemployment also has increased that has reduced the purchasing power of people. But there is a down fall in the economy of Pakistan.Applied Marketing Instability of the government in the country is also big danger for the organization because due to change in the Govt. Peshawar & Swat Issues: In last months war between American forces and Taliban’s forces in Peshawar and Swat has impact on KFC’s operation in these cities in which it has more than 90 % share like Peshawar. beliefs. These economic crises are a danger for KFC.

Hilal Food: KFC management knows about that Pakistan is a Muslim country. TECHNOLOGICAL FECTORS: Technology is very important for the success of any organization. Karachi. baking and all other work that is involved in the preparation of the fast food. and Islamabad/Rawalpindi etc. In these cities mostly come out with their family because KFC mainly focus family. Hamdard Institute of Management Sciences (HIMS) 29 . New Baking System: KFC is the first who introduce the baking system in front of customer to satisfy the customer. KFC start their branches in those cities which are famous for food eating. KFC is using modern technology for cooking and modern cooking recopies to get the competitive advantage. therefore KFC also provide spicy foods in Pakistan. Pakistani people like spicy foods. It means that all the cocking. therefore they use 100% Halal (Zibiha) chicken. To solve these problems KFC hire all employees of local area and now it is easy for them to understand about the culture of Pakistan.Applied Marketing Multinational company faces the challenge to understand about the culture of that country where they work. Because without modern technology no organization can compete in the market. Family Fast Food: KFC open its branches in advance cities of Pakistan like Lahore.

E-CUSTOMER RELATIONSHIP MANAGEMENT STRATIGY: Managing detailed information about individual customers and carefully managing customer touch points in order to maximize customer loyalty. because in this tool customer can direct contact therefore it is an effective tool. Hamdard Institute of Management Sciences (HIMS) 30 . KFC is managing its customer relations by providing them valuable and differentiated chicken products.Applied Marketing They are also maintaining customer data base management system and modern marketing techniques for long lasting relations with their customers. Customers can visit the website to know their operations and about their products. for this purpose every KFC’s outlet has drop box for complaint and suggestion for a particular problem or issue. They also creates customer data base and keep the records of their regular customers. They are providing home delivery services. KFC also has developed its website. They also fill the questioners from their customers in order to provide them better quality according to their tastes. Feedback: It is also an effective tool for customer relationship management.

Mobile Vane: If any customer has any problem or suggestion regarding to the any branch/person he/she can contact the mobile vane supervisor because mobile vane can reach at your door step for delivery in the particular areas.Applied Marketing Forum: It is also a direct contact tool for the customer relationship management. Hamdard Institute of Management Sciences (HIMS) 31 . In which customer can put his/her complain and suggestion in the company’s web site for a particular branch in the country.

While its competitors are not providing services at night. So this is the reason that it to much successful in that city and in this way it creating customer relation management with citizens. F-PRODUCT CLASSIFICATION WITH PRODUCT LIFE CYCLE: Product Life Cycle: Every product has its life cycle whether it is successful or not in the market. Now discuss the KFC product line according to their life cycle Introduction: In this stage following product are included according to their life cycle Hot Wings: Hamdard Institute of Management Sciences (HIMS) 32 . This cycle has four stages given below in the diagram.Applied Marketing In Peshawar KFC is providing its services for 24 hours and each and every product is available at any time.

When KFC launch new products in the market the high price will charge by the KFC. When with the passage of the time it decreases the sale the low price is charged by the KFC. There are following pricing strategies for the product regarding its life cycle in the marketing conducted by the KFC. For example there is new product will launch in the market it is charged A + Profile pricing. It is important for any stage of product life cycle whether it is introduction or maturity. Price decision is a vital role to capture the market share. Hamdard Institute of Management Sciences (HIMS) 33 . New Product Hot Wings: It is a new product will launch in the existing cities in the country the Skimming price will charge to the customer because the cost is high. A + Profile: It is another name of Skimming price in which high price is charged by the KFC.Applied Marketing Growth: Hot Shots Maturity: Zinger: Chicken Mania: Chicken Burger: Rice n Spice: Decline: Twister G-PRICING STRATIGIES: Price is a money reward in return of some value given by the producer to its customer.

KFC during pricing their products keep the different points in the mind like they adopt the cost base price strategy.51 We assume that Fixed Cost is Variable Cost = $675000000 Profit Margin is Or Mark Up Per Unit Variable Cost = $225000000(25% of Sales) = $675000000 / 5890000000 = $ 0.115 Unit Cost = Variable Cost + Fixed Cost / Chicken pieces Sold Hamdard Institute of Management Sciences (HIMS) 34 = $6000000000 .89 Billion =$1.89 Billion Total Retail Sales = $8.914 Billion Total KFC Chicken Pieces Sold Annually = 5. It is charged when the sale of the product is decrease or the cost of the product line is achieved by the KFC. B Profile: It also called as market penetration price in which low price is charge to capture the market share in low income areas. 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. Calculation of the price under Cost Based Pricing Strategy: Total Pounds of Chicken Served in KFC Restaurant Annually = 1.9 Billion Sales Price of per Chicken Piece Pieces sold = Total Retail Sales / Chicken = $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.Applied Marketing A Profile: It is comparatively low price as compare to the Skimming price.

115 + 6000000000 / 5890000000 = 0.Direct channel management system. There is no compromise on customer satisfaction and quality. 2.02 = $1.75 = $1. H-CHANNEL MANAGEMENT: It is a link between consumer and producer.115 + 1.Indirect channel management system. 1) franchising Hamdard Institute of Management Sciences (HIMS) 35 .51 KFC also uses cost based price for old and new products in the market. For this purpose KFC adopts the franchising system which is beneficial for both (KFC and customers). The manufacturer mark up price is calculated: Mark Up Price = Unit Cost / (1 – Desired Return on Sales) =1.135 Now suppose manufacturer wants to earn 25% mark up on sale. 1. KFC is using Direct Channel Management System for satisfying the customers by providing them superior value by their own Experience.25) = 1.135 / (1-. If the channel management system is strong it is helpful to satisfy the customers by delivering the quick service. In the case of the KFC the placement of the product is not important but the placement of the restaurant is important.Applied Marketing = 0. KFC has following method for channel management system. It has two types.135 / 0.

 KFC chose the well income class area for their restaurants.Applied Marketing All the franchises are controlled by Cupola (Yum international).  KFC is providing products and services to consumer market as well as business market. There are six brands Lies under the Yum  KFC  Indulge  Lal Qila  Taco Bell  Pizza Hut  All American Food (AM)  Pepsi Cola ( It was also a part of YUM till 2004)  The products of the KFC are cooked at the spot. Franchises KFC opens its franchises in most populated and well income area such as in Lahore there are nine outlets in highly income based areas like o Barket Market ( New Garden Town ) o MM Alam Road o Y Block o Shadman Town o Thokar Niaz Baig o Defence o Cavalry gound o Mall Road Hamdard Institute of Management Sciences (HIMS) 36 .

Hamdard Institute of Management Sciences (HIMS) 37 .Applied Marketing o G T Road I-PROMOTION STRATIGIES: 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. flats. markets. plazas. and departmental stores. Marketing efforts to be taken by the restaurant: • • • Paste delivery posters at petrol pumps. Schools. 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. Distribution of delivery flyers in residential areas. business places. They are also creating awareness among the masses about their existing product range as well they tell us about the future product. colleges and universities also. colleges. If you promote your product at the right time. plazas and institutions (as per the plan) Visit offices.

Advertisement: It includes the following Print media:  Jang (Karachi. Muree. keychain. Tagged: It is world famous chating. Rawalpindi). Birthday Package.Applied Marketing For sales promotion KFC has introduced different strategies such Ramadan Package.  Dawn (Karachi. Apniisp: It is most famous Pakistan’s music site KFC also targets this site for their promotion. Other Communities sites: Hamdard Institute of Management Sciences (HIMS) 38 .  The news (Karachi. Multan and other city in which it is dealing. Also they have introduced goods like watches. toys etc to the customers. friendship and community site in which promotion is made by the KFC for the seasonal and new product campaign. Midnight Package and they are also celebrating many occasions like Mother’s day. T-shirt. Online media: Personal web site: KFC also making promotion through its own web sites of all branches in the country like Islamabad. Lahore. Lahore & Rawalpindi). In which most young are surfing the internet. Basant etc.  Magazine. Lahore.KFC also offers many lucky draw schemes to attract their customers. Lahore & Rawalpindi). coffee cup.

Hamdard Institute of Management Sciences (HIMS) 39 . ARY World. Ten Sports. Electronic media: It includes the following TV Commercials: Advertising on different Cable channels like Geo. Music channels. It also contributes its part of promotion. Radio Commercials: KFC also makes promotion through FM radio services in different cities like in Lahore (FM 100) and in Karachi (FM 101) Transaction media: It includes the following Mobile vane: For the delivery of the order is very quick service for this purpose KFC has a mobile vane that makes it possible within 30 minutes.Applied Marketing KFC also make advertisement in other sites and communities in which most of the public are surfing these sites. etc and also advertising on world call Cable advertising. Trucks: For seasonal campaign and festival there are road shows were conducted by KFC. It is also a source of advertisement.

J-TARGETS THAT WOULD LIKE TO ACHIEVE: Every organization and company has some certain goals laid down by them to achieve to make it renown and have value added services to satisfy customers. striving always to be the leader in the market place changes.  Generate consistently superior financial returns and benefits our owner and employees.  Consistently deliver superior quality and value in our products and services. Hamdard Institute of Management Sciences (HIMS) 40 .Applied Marketing Co Branding: KFC also has co branding with Pepsi and Walls.  Build an organization dedicated to excellence.  Maintain a commitment to innovation for continuous improvement and grow.

Naran and other visiting places where people comes from abroad and also from the different cities of Pakistan for visit. Every moment dedicated to providing excellent and delighting customers. So KFC is availing the opportunity and expending the target market from big cities to sub urban areas. Now they are going to target the small cities. in a clean and convenient location. Their business has been extended in almost all big cities. KFC is consistently providing a pleasant dining experience. K-EXPENDING TARGET MARKET: KFC started its business from the big cities in Pakistan. KFC will provide fair price products in those cities. with fast friendly. There main target areas Kagan. 11-SWOT ANALYSIS: SWOT analysis mean strength. But their current expectation is to open 100 outlets all around the country in Pakistan up to 2010.Applied Marketing To establish a position in Pakistan as a leading WQSR (Western Quick Service Restaurant) chain. They are also going to target Blochistan. weakness. opportunities and threats and the SWOT analysis of KFC are: Hamdard Institute of Management Sciences (HIMS) 41 . L-EXPECTATIONS FOR THE COMING YEAR: Now a day KFC has 62 outlets all around the country. serving good value added services and Innovative chicken based products. The people in those cities are also wants to eat in restaurants. Where a middle class family are living but due to rapid change in their living standard and qualification has provided the opportunities to businessmen of fast foods to expand their target market.

tender roast  KFC adopted very different market concept then other companies that help KFC to be strong in market  KFC is the only best fast food restaurant in Pakistan with great recipes  KFC has a hold at the market and through customer satisfaction they have higher profits rates  KFC has good approach to media  They have different strategies to handle different problems  They always choose a very good location in the busy area of city  They have well educated staff and they all are very skilled and handle all the situation very well and satisfy there customers  Each and every deal is available at every time as well as the time of closing.  As we know KFC is the multinational company and they have reserves of finance and pay many taxes to government WEAKNESS:  KFC sweet dishes portion is not as better as should be  They only focus higher income level people  They have much higher price as compare to the other fast food restaurants OPPORTUNITIES:  They have the opportunity to expand their sweet products  They can open more branches to get maximum market share Hamdard Institute of Management Sciences (HIMS) 42 KFC  Due to its chicken products KFC has no competitors in the market . original recipe. KFC sells three recipe. extra crispy.Applied Marketing STRNGTHES:  KFC secret recipe of 11 herbs and species has made it the leader in chicken for the last 50 years.

Applied Marketing  They can open branches in northern areas of Pakistan. Therefore.  They can open temporary outlets in peak season in the hill stations like Murree. During the war the sale of sale KFC decrease more then 25%  Current political situation is a big threat for KFC  Some uncertain situation like bomb blasts is also the big threat for KFC  Diseases like bird flu is the big threat for KFC  People wrong perception created by some our religious people or Molvies that the chicken products of KFC are not Hilal that effect the KFC market very much. and Kagan etc. Naran.  They can capture more customer by decreasing the price of their products  To market their products they have to do more social projects for the country and due to that they attract more customers THREATS:  Web site of KFC currently become the big threat for KFC market  Some international events badly affected the market of KFC in Pakistan like Iraq and Afghan war and we know KFC is American based. it creates a great impact on the performance of KFC. Hamdard Institute of Management Sciences (HIMS) KFC 43 .

There customers are increasing every day. They are also going to increase their target market all over the world as well as in Pakistan. And one more aspect for KFC is that it must also reduce their prices to compete their competitors like McDonald. Hamdard Institute of Management Sciences (HIMS) 44 .Applied Marketing 12 –CONCLUSION: After our research on KFC. we come to conclude that KFC has good products as far as chicken items are concerned. KFC also work for social aspects. There is a contradiction between Pakistani Culture and American culture . They are market leaders and also increasing their sales by providing good products and services.KFC should adopt the Pakistani culture. KFC is a American Based Fast Food restaurant. There products are very valuable and according to the perceived values of customers. That is the only reason that customers like to eat from KFC. And they must target low income people and children also because children push their parents to go to their favorite restaurants. Crisps Pins and Pizza Hut. 13 –RECOMMENDATIONS: KFC has to increase other varieties of products to attract the customers.

Applied Marketing 14 -RESOURSE PERSON: Bibliography: Hamdard Institute of Management Sciences (HIMS) 45 .

Applied Marketing Hamdard Institute of Management Sciences (HIMS) 46 .

Applied Marketing Hamdard Institute of Management Sciences (HIMS) 47 .