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KENTUCKY FRIED CHICKEN(KFC

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INTRODUCTION 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 bestrecognized icons in the world.

Mission statement :“ To be the leader in western style restaurants through friendly service , good quality food and clean atmosphere.”

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striving always to be the leader in the market place changes. his mother remarried and he left his home near Henryville. Over the next nine year. the colonel began cooking for hungry travelers who stopped at his service station in Corbin.he moved across the street to a motel and restaurant that seated 142 people. He didn‘t have a restaurant then. sold insurance. Ind. Company overview: Colonel Harland sanders. This meant doing much of the family cooking. When the colonel was six. a quick service restaurant pioneer. When he was 12. When he was 40. and young Harland had to take care of his three year old brother and baby sister. he perfected his secret blend of 11 herbs and spices and the basic cooking technique that is still used today. Ate age 10. Now. and Operated service station. The colonel‘s cooking is available in more then 82 countries around the world. he was a master of a score of regional dishes. his father died. 2 . soldiering for six months in Cuba. Consistently deliver superior quality and value in our products and services. He held a series of jobs over the next few years. and then as a 16-year old private. Ind. And colonel sanders. His mother was forced to go to work..Goals of KFC :Build an organization dedicated to excellence. Maintain a commitment to innovation for continuous improvement and grow. operated an Ohio River steamboat ferry. KY. first as a 15-year-old streetcar conductor in New Albany. born September 9. Generate consistently superior financial returns and benefits our owner and employees. actively began franchising his chicken business at the age of 65. By the age of seven. Ind. And not just in America. his first job working on a nearby farm for $2 a month.. 1890. practiced in justice of the peace court. but served folks on his own dining table in the living quarters of his service station. for a job on a farm in Greenwood. As more people started coming just for food. sold tires. After that he was a railroad fireman. studied law by correspondence. More than two billion of the colonel‘s ―finger lickin‘ good‖ chicken dinners are served annually. have become a symbol of entrepreneurial spirit. the Kentucky fried chicken business he started has grown to be one of the largest retail food service systems in the world.

 Encourage new and innovative ideas because these are the key to our competitive growth. KFC is the largest brand of Yum Restaurants. Values of KFC  Focus all our resources to our restaurants operation because that is where we serve our customers.  Be open. honest and direct in our dealings with one and other. Taco Bell. Australia. a company that owns other leading brands like Pizza Hut. In India.  Work as a team. For the vegetarians in India.  Commit ourselves to the highest standard to the personal and professional integrity at all times. Its signature dishes include the ―crispy outside. Chicken Bucket and a host of beverages and desserts. profit and size of organization. the spicy. flavorful and juicy Original Recipe chicken.  Reward result and not simple efforts. Veggie Snacker and Veg Rice meals. Renowned worldwide for it‘s finger licking good food.  Expand and update training with time and be the best we can be and more. China.  Reward and respect the contributions of each individual at KFC. Toasted Twister. A&W and LongJohn Silver. KFC also has great tasting vegetarian offerings that include the Veggie Burger.USA. KFC is growing rapidly and today has presence in 11 cities with close to 50 restaurants.KFC India KFC is the world‘s No. Malaysia and many more. juicy & crunchy Zinger Burger.  Dedicate ourselves to continuous growth in sales. South Africa. 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.1 Chicken QSR and has industry leading stature across many countries like UK. juicy inside‖ Hot and Crispy Chicken. 3 .

so the number of customers are more in Urban Areas Competitive analysis Competitors:You cannot enjoy the business without competitors. No organization can afford to ignore there competitors. KFC has decided to target the market of Urban and Sub-urban Areas of India.  People of Urban Areas are more quality conscious than the people of Rural Areas. On the other hand people of urban areas take fast food.KFC beats its competitors through the revising marketing strategy at every movement but the main competitor of KFC are McDonald. It is very important for a marketing managers to monitor the activities of there competitors. which is made by KFC. Product usage: People are educated and they want variety in their diet.Market Coverage Strategy KFC will be using differentiated market coverage strategy.  Normally people of rural areas don‘t take fast food. 4 . It means that different marketing mix will be used for different age groups. what they are doing? KFC adopted such sort of strategy that there is no competitor for spicy chicken. which are slightly higher in price as compared to prevailing prices of local food in the market. TARGET MARKET FOR FAST FOOD After evaluation of various segments.  In Urban Area there lived people from every walk of life and profit generation is easier than in Rural Areas.  Population density is higher in Urban Areas as compared to Rural Areas.  Income of the people of urban areas is normally high and they can afford to purchase such products.

5 . This will lead to higher buying power in the Hands of the Indian consumers. The GDPreal growth rate in 2007 was 8.S.5 billion a year earlier. Huge W eaknesses: Same type of Menu. dollars in the year 2010.7%.S. So taking into considerations the economic factors of India KFC is safe. The GDP (Purchasing Power Parity) is estimated at 2. Attractive Marketing. 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. dollars as estimated in 2008. Foreign direct investment rose in the fiscal year ended March 31 2007 to about $16 billion from just $5. and China.S.Strengths and weakness of competitor:trengths: 38 products.965 trillion U. India‘s per capita income is expected to reach 1000 dollars by the end of 2007-08 from 797 dollars in 2006-07. More entertainment for kids S Outlets. The only danger to it will be if there is a terrorist attack in India and the victim is KFC.per Capita (PPP) was 2700 U. Budget. No Home Delivery Environmental factors and opportunities Political : The operations of KFC are affected by the government policies on the regulations of fast food operation. 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. The GDP. Governments also control the license given for open the fast food restaurant and other business regulation need to follow such asfor a franchise business. 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. India has the third highest GDP in terms of purchasing power parity just ahead Japan and behind U.

The social trend toward fast good consumption is changing and India has seen an increase of 90% fast food consumption from the year 2002-2007.1%. Large-scale plantation has effect the environment and lost of green forest opening for plantation activities. supply chain management system to manage its supply.There has also been a continuous increase in the consumption of fast food inIndia. Implementation of technology can make the management more effective and cost saving in the long term. However KFC should be looking to competitors innovation and improve itself in term of integrating technology in managing its operation.Socio cultural: India is the second most populous nation in the world with an approximate population of over 1.g.1billion people. potatoes and chicken. For example in inventory system. For e. This is because high consumption of beef causing the green house effect by methane gasses coming from the cow‘s ranch. Technological: The Indian fast food Industry is heating up with a lot of foreign playersentering the Indian market.8%. KFC and Domino‘s pizza.1% and 65 years and above – 5. For a fast food restaurant. KFC always had been critics for world environmentalist. Environmental: As one of world largest consumer of beef.easy payment and ordering systems for its customers and wireless internet technology. 15-64 years – 63. Russia (50 per cent) and China (almost 60 per cent). Vegetarian environmentalist criticizes the fast-food giant for cruelty 6 . This increase is far greater than the increase in the BRIC nations of Brazil (20 per cent).Thus this shows a positive trend for fast food industries in India. This population is divided in the following age structure: 0-14 years – 31. The technological knowhow and expertise will also enter the Indian market with an increase in competition. With the lower rates and increase technology the fast food counters are attracting youth by giving them attractive deals. technology does not give a very high impact on the company and it is not a significant macro environment variables. 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.

Summary of current situation:SWOT analysis mean strength. For example is the Halal certification that becomes a concern to Muslim consumers. Before using paper packaging. business registration. It is even more recognised in other markets outside India.Other legal requirement that the business owner should follow as stipulated in laws are such as operating hours. KFC should protect its integrity and consumer confidence by ensuring all materials and process are as claimed or must followed. Critics and concern from all public or activist should be review and support if necessary to ensure we play our social responsibility better. In America. It therefore has a good 7 .Our world is getting concern on environment issue and business operating here should not just care for profit. KFC once had been criticized for being insensitive to pollution because of using ne based packaging for its food products. once KFC want to introduce whaleburger causing uproar because whales are endangered species. tax requirement. there are many regulations and procedures that KFC should follow. 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. price. The brand is recognised and trusted in India for its quality products. where the company is among the leading fast food giants.toanimals and slaughtering. weakness. and customer service. 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. The legal requirement is important because the offenders will be fined or have their business prohibited from operating which can be disastrous. Legal factors: As a certified fast food operator. but careful usage of world resources for sustainable development and care for environment safety and health for our future generation.

As the young generation are 8 . As the developed markets are mostly saturated. a 10 years drop of 15 percent. KFC share of Chicken Segment sales fell from 71 percent 1999 .head start and enjoys a good chance of becoming a leader in Indian fast food industry.  Ranks highest among all chicken restaurant chains for its convenience and menu variety.  Large Youth population: India has a very large share of youth population a compared to other countries.  Huge competition in this segment. South India is especially very much so. KFC customer base remained loyal to the KFC brand because of its unique taste. the developing countries like India and China promises a good market and generation of demand in the future.  Cross Culture: Generally there is a good acceptance of American culture of fast food in India.  Customer Loyalty: Despite gain by Boston Market and Chick-fill A. It generates $1B revenue each year. KFC has a good scope of expanding its operations in the country. The turnover rate in the company is amongst the lowest in the industry. This may prove fatal for the company. With more than 70% of the markets in india being unexplored and un organised.  KFC has not yet invested much on R&D. to less than 56 percent in 2009 . peoples taste and preferences and their likes and dislikes. People are opening up to fast foods more regularly in their daily lives and not just keeping it a once in a month affair. This may lead to failure of their products as they are not in line with the Indian mind set. KFC has continued to dominate the dinner and take out segment of the Industry. OPPURTUNITIES: New Markets: Globalisation has opened doors for new markets for the company. WEAKNESSES: KFC was losing market share as other Chicken chain increased sales at a faster rate. Thus Indian mindset is fast changing. and innovating new products for Indian Markets.  Employee Loyalty: Employee Loyalty is one of the major strengths of KFC.  India is still mostly a vegetarian dominated cultured society. More than 60% of the population is under the age of 30yrs. This may reduce the market share of the company.

as less people are consuming KFC chicken  Saturated US Market: Now KFC cannot rely on just its home market to generate sales. Currently. with a trend of families eating out. One of the first fast food multinationals to set foot in India was Kentucky Fried Chicken (KFC). KFC became embroiled in various 9 .KFC received permission to open 30 new outlets across the country. Also.owned by PepsiCo. PepsiCo planned to open 60 KFC and Pizza Hut outlets in the country over the next seven years.more open to fast foods and demand it more. garlic breads to attract more customers.McDonald‘s with sales of more than 19 billion in 1999.  New variety: Company can also come up with new variety in the menu like Pizzas. thanks to the economic liberalization policy of the Government of India (GoI). KFC is under massive attacks from animal organisations. questioning the way KFC‘s suppliers are threatening the chicken. THREATS: Competition: Competitor companies like McDonalds are fast catching up with the market. Apart from Bangalore. The Bangalore outlet was opened in June 1995. such as the one from PETA are affecting KFC‘s brand image in a negative way and result in direct dollar losses. it was considered India‘s fast growing metropolisinthe1990 . accounted for 15 percent of the sales of the nation‘s top 100 restaurant chains. company necessarily needs to look at offshore foreign markets to generate sales and keep up the profits. However. before they got slaughtered. As the US markets are already saturated and leave no or little scope for growth.  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. this is a good news for the company. KFC IN INDIA Foreign fast food companies were allowed to enter India during the early 1990s. Anti-KFC campaigns. It chose Bangalore as its launch pad because the city had a substantial upper middle class population.

•Perceived differences in eating habits. • Able to adapt to cultural differences. •Believed to be expensive ……. Chickens contained nearly three times more monosodium glutamate (popularly known as MSG. KFC faced severe protests by people for Ethical Treatment of Animals (PETA). CULTURAL FACTORS IN INDIA THAT GO AGAINST KFC’s ORIGINAL RECIPE: • KFC is perceived as a restaurant serving only chicken-Indian families obviously wanted more varieties.. no value for money. ETHICALFACTORS: The regulatory authorities found that KFC‘s chicken did not adhere to the prevention of FOOD ADULTRATION ACT. 1954. not as a ―teenagehangout‖ •Ambience was missing. •Tried to target the vegetarian segment. an animal rights protection organization. • Wanted to position itself as a ―family restaurant‖ . Since the late 1990‘s. a flavor enhancing ingredients) as followed by the act.controversies even before it started full-fledged business in India. However this backfired as in India having veg food cooked in a non veg kitchen doesn‘t come out well with the vegetarian segment. For example keeping in mind the Indian tastes buds KFC launched afierier ―ZINGERBURGER‖. PETA accused KFC of cruelty towards chickens and released a video tape showing the ill-treatment of birds in KFC‘s poultry farms. CULTURAL FACTORS CONTRIBUTING TO KFC‘s ―SUCCESS‖ININDIA • Reducing the psychic distance by handling over of operations to local people so that customers could relate to them more easily. tastes and preferences. • Got an edge since chicken is a staple dish and is taken more frequently 10 .

Suggestions: KFC has its well established market although it has to take into consideration the ethical factors in India and also it has to keep in mind the PETA guidelines.. In its second coming. • The target customer of KFC [upper.  As McDonalD‘s is its main competitor so it has to launch many new variety of products. but also plans to introduce a large number of items from its international menu to make its mark in the domestic quick service restaurant (QSR) market. they have a full fledged strategy this time round to avoid the mistakes they committed earlier. the have been doing rather well. • Price sensitivity of the two economies drove KFC to introduce menus that were easy on the consumer‘s pocket. In fact. middle and above] are health conscious and hence to cater to their interest Kentucky fried Chicken changed its name to KFC. ―Ever since they relaunched in 2004. 11 . • More accustomed to take out food over the counter. KFC India has not only ‗Indianised‘ its products.in Asiancountries.