Introduction to KFC

Kentucky Fried Chicken is one of the leading fast food Franchise concepts of today; present in a variety of countries around the world and has been proficient to launch a renowned International reputation in multiple continents. Starting in the United States in the 1930s, it has grown to become a true multi-domestic company. KFC has focused on foreign markets since the 1960s and has initiated a new challenge today in conquering Asia.


KFC : How was it born

KFC, known as Kentucky Fried Chicken, is a chain of fast food restaurants based in Louisville, Kentucky . The Kentucky Fried Chicken® was founded by Colonel Harland Sanders (born on September 9, 1890) at the age of sixty-five KFC® is currently one of the largest businesses of the global food service industry and is widely known around the world as the face of Colonel Sanders. Every year, over a billion KFC® chicken dinners are served featuring the Colonel‟s “finger licking‟ good” special recipe. The Colonel had spread his industry to more than 80 countries and territories globally.


700 units. Inc. Inc. to be formed from the spinoff of PepsiCo's restaurant holdings. and continues investigating alternative venues to gain market share in the increasingly competitive fast-food market. In addition to direct franchising and wholly owned operations. KFC primarily sells chicken pieces. KFC. While its primary focus is fried chicken. developer. a wholly owned subsidiary of PepsiCo. the company participates in joint ventures. and franchiser in the world. wraps. 3|Page . In late 1997 the company expected to become a wholly owned subsidiary of Tricon Global Restaurants. until late 1997. KFC also offers a line of roasted chicken products. salads and sandwiches..Internationally. KFC has more than 3.Company history KFC Corporation is the largest fast-food chicken operator. of which two-thirds are also franchised. side dishes and desserts.

the spicy. In India. Toasted Twister. KFC is growing rapidly and today has presence in 21 cities with close to 107 restaurants. For the vegetarians in India. Its signature dishes include the “crispy outside.1 Chicken QSR( Quick Service Restaurant) and has industry leading stature across many countries . 4|Page . It 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. KFC also has great tasting vegetarian offerings that include the Veg Zinger and Veggie Snacker . juicy & crunchy Zinger Burger. Chicken Bucket and a host of beverages and desserts.KFC in India KFC is the world‟s No. juicy inside” Hot and Crispy Chicken.

Vision and Strategy KFC‟s Mission Statement is: “To sell food in a fast. as a restaurant company. is to put a “Yum!” on people's faces around the world.” KFC‟s Objectives is to :        Contribute to maintain and improve the profitability of restaurants Introduce more new recipes suited to local taste Introduce cheaper items in the menu Introduce healthier recipes Engage is CSR activities Work on the image of a healthy fast food chain through advertising Develop a strong culture of service and differentiate from competition 5|Page . satisfying customers every time they eat our food and doing it better than any other restaurant company. health minded consumers” KFC‟s Vision And Strategy is : “Our passion.KFC : Mission Statement. The unique eating experience at each of our restaurants make our customers smile and inspire their loyalty for life. Our associates around the world are trained to be customer maniacs. friendly environment that appeals to pride conscious.

6|Page . The chart shows the eatery holdings capturing the Indian market.Competitors In India . KFC faces tough completion from other QSRs and other local food joints.

In behavioral aspect they segmented the market on the basis of quality. Attitude : When the customers once buy this product . Geographic region: Geographically KFC is used in every part of the country as well as all over the world.In demographics their first segment is consisted of the income factor i. 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. high income.Market segment KFC has divided the market of India into distinct segments on the following bases. Purchasing decision: Often KFC changes the purchasing decision of customers because of its good attributes.e.  Demographical. Urban areas and Sub urban areas  Profile criteria: Gender: KFC is for each gender both male and female. 7|Page .e.i. Education: there is no need of education to enjoy this product. average income and low income. Income: Everyone can use the KFC service upper and middle class . middle class. Lifestyle: This product is used in every level of social class like upper.On the basis of the geographical factor their market are in two main segments . Geographical. taste and price. they can use the product continuously.  Behavior. Age: age limitation for using this product above 15 Occupation: By profession also everyone can use this product means businessman student workers and other peoples.

KFC known as a chicken specialist all over the globe. KFC target the Asia and east side due to the demand of their chicken products 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) • Veggie Feast • Soft Drink • Coleslaw • Chicken Thali • Veg Finger • Snack Box • Sundae • Soft Twirl 8|Page . it has the special raspy for chicken products that is why.Product segment KFC specially deals in chicken products.

Management Acquired KFC for $841 million in 1986 KFC with    New franchise contract Reduced staff Replaced KFC managers with their own Refranchising Strategy     Relatively slow growth rate 1992-1997 Due to selling companyowned restaurants back to franchisees Company-owned Easier to control Higher levels of investment with low returns 1993 PepsiCo concerned with Coca Cola‟s returns 9|Page .Mergers and Acquisitions PepsiCo. Inc.

There is a continuous growth in per capita income. Economic: Though for last 1 year there 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.Pest Analysis Political : The operations of KFC are affected by the government policies on the regulations of fast food operation because of health concern and also control the license given for open the fast food restaurant and other business regulation such as franchise business. For example in inventory system. which will lead to higher buying power in the Hands of the Indian consumers. 10 | P a g e . easy payment and ordering systems for its customers and wireless internet technology. Technological: The Indian fast food Industry is heating up with a lot of foreign players entering the Indian market. Thus this shows a positive trend for fast food industries in India. 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.1billion people. Socio cultural: India is the second most populous nation in the world with an approximate population of over 1. KFC should be looking to competitors innovation and improve itself in term of integrating technology in managing its operation. supply chain management system to manage its supply. There has also been a continuous increase in the consumption of fast food in India.

KFC specialized in chicken and they say. CHAMPS set the six universal areas of customer expectation common to all cultures and all restaurants concepts. marketing. R&D. “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” PHILOSOPHY OF KFC The CHAMPS Program Champs stands for their commitment to provide the best food and best experience for the best value.Value-Chain Analysis All the functions of KFC such as production. service. have a role in lowering the cost structure and increasing the perceived value of the products through differentiation. These are: Cleanliness Hospitality Accuracy Maintenance of Facilities Product Quality Speed of Service 11 | P a g e .

Competitive Advantage KFC beats its competitors through the revising marketing strategy at every movement but the main competitor of KFC is Mc Donald KFC Spicy Products Indian people like spicy products Arabian Rice and Zinger Burger Free Delivery Chicken is eaten by every community KFC uses Top to Bottom and Bottom to Top Approach McDonalds Burger and French Fries ------------- Big Mac Charges for home delivery Beef is banned in some community McDonalds Uses Top To Bottom Approach. KFC is Co branding with Walls No such Case. 12 | P a g e .

Michael Porters 5 Force Analysis 13 | P a g e .

Located At Strategic Locations: Located at the most strategic joints all over the country in major metros with the most posh surroundings 14 | P a g e . Goodwill And Reputation: The brand is recognized and trusted in India for its quality products. The turnover rate in the company is amongst the lowest in the Industry. Employee Loyalty: Employee Loyalty is one of the major strengths of KFC. Customer Loyalty: KFC customer base is loyal to the KFC brand because of take out segment of the Industry Ranks highest among all chicken restaurant chains for its Convenience and menu variety.SWOT analysis A SWOT analysis may be incorporated into the strategic planning model. and customer service. • External factors – The opportunities and threats presented by the external environment to the organization. Internal Factors STRENGTHS: Strong Brand Name. price. It groups key pieces of information into two main categories: • Internal factors – The strengths and weaknesses internal to the organization.

Effective Store Management /Cleanliness: The KFC restaurants are the ideal examples of neat and clean atmosphere with regular and efficient employees Competitive Marketing Strategy: Large scale promotion activities and localizing some of its products grabbed a lion‟s share of the value share of the market Strong Distribution Network: Focused on building outlets in nontraditional places like universities. and innovating new products for Indian Markets which may lead to failure of their products as they are not in line with the Indian mind set Fewer Options Available For Vegetarians And Non Chicken Lovers: The menu is primarily focused on a few types of chicken and thus has fewer choices available for other segments of fast food lovers and thus may fail to attract a wide range of customers. 15 | P a g e . shopping malls. WEAKNESSES: Lack Of Innovation And Less Investment In R’n’d: KFC has not yet invested much on R&D. airports. Culture Incompatibility: KFC still finds it difficult to enter many markets mainly because of the culture incompatibility with the local market. movie halls.

Cross Culture: People are opening up to fast foods more regularly in their daily lives as the Indian mindset is fast changing.Recent Drop In Sales: The brand suffered recent drop in sales in the current year after the recessionary phase and small competitors taking away shares of their market External factors OPPORTUNITIES: New Markets: With more than 70% of the markets in India being unexplored and unorganized. this is good news for the company Boom In Organized Retail And Consumerism: with urbanization the Aspiration level of the people especially the youth has gone to a level at which American eateries are the “in” thing and the Fast food chains are cashing on it by attracting more of the market to their joints. garlic breads to attract more customers 16 | P a g e . New Variety: Company can also come up with new variety in the menu like Pizzas. Large Youth Population: As the young generation are more open to fast foods and demand it more. KFC has a good scope of expanding its operations in the country.

This may reduce the market share of the necessarily needs to look at offshore foreign markets to generate sales and keep up the profits. This is a serious threat facing KFC.THREATS: Competition: Competitor companies like McDonalds. Saturated U. Economic Crisis: With the Government facing a high fiscal deficit tax and duty hike will result expenditures cutting on luxury food items. and other fast food chains more familiar with the Indian ethos are fast catching up with the market.S Market: As the US markets are already saturated . Subways. Threat From Ngo’s And Political Organizations: Anti-KFC campaigns. as less people are consuming KFC chicken. Bulk Of The Population Is Vegetarian: India is still mostly a vegetarian dominated cultured society. 17 | P a g e . such as the one from PETA are affecting KFC‟s brand image in a negative way and result in direct dollar losses.

Recommendation Short term    Introduce more new recipes suited to local taste Introduce cheaper items in the menu Work on the image of a healthy fast food chain through advertising Long Term    Change the image of KFC from fried to „healthy‟ Engage is CSR activities related to animals & environment Develop a strong culture of good service 18 | P a g e .

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20 | P a g e .Conclusion With a rapidly growing economy and a developing middle and upper-class population well into the hundreds of millions. international companies such as KFC expanding into India was always inevitable. It now operates numerous stores in all the Indian cities and can see opportunity for continuous growth throughout the country as the economy develops. KFC maintain a Global Standardized Strategy however choose to adapt this strategy to suit international markets that require a higher level of local responsiveness and not so much focus on cost reductions.

com/topic/kfc-corporation  www. Jeffrey.  www.asp 21 | P a g e     www. Kentucky Fried Chicken and the Global Fast-Food Industry in  www.Bibliography   www.asp  www. Marketing Management Case Analysis 26  Krug.yumfranchises.datamonitor.

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