You are on page 1of 59

Table of Contents

Sl
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21

Topics
Introduction : Industry Profile
Food Industry Structure
Characteristics of Unorganized Sector
Food Industry in India
Problems of Industry
Introduction to KFC
KFC History
Philosophy of KFC
Product Issues
Substitutes and Complements
Market Coverage Strategy
Micro Environment
Marketing Strategies of KFC
The 4 Ps of Marketing
Research Methodology
Finding and Analysis
Conclusion and Suggestion
Outcome/Contribution
Bibliography
Annexure
Acknowledgement

INTRODUCTION
1.1 INDUSTRY PROFILE
1.1.1 Background

Page No
02
06
07
10
12
17
18
19
20
22
24
25
25
26
29
33
47
49
51
53
58

58
One of the most critical phenomenon that characterize the food industry today is the exponential
development of its complexity, Competitive pressure has radically changed the sector structure which has
shifted in a relatively short period of time from fragmented to a highly concentrated landscape.
Business houses are continuously looking for new ways for attracting the customers to them and
increasing purchases after their entrance. This goal is particularly difficult to achieve because of the
parallel evolution of customers demands and the variety of options available to him.
Two of the elements of the marketing mix i.e. physical evidence and promotions play a major role in
accomplishing this goal. Promotion is constantly essential for a restaurant or a club, because it stimulates
consumer behavior. To bring customers to the outlet for the first time and ensure their repeat visits
require professionally prepared and correctly drafted strategy of Brand Communication and promotion.
A strategy which is in sync with the positioning of the restaurant appeals to its target audience. Gone are
those days in which companies used to attract the customers towards them by merely providing them
petty discounts. The consumer today has a large number of choices at his disposal, thus a brand needs to
differentiate itself from its competitors to make it standout from the crowd and get noticed by its target
audience.
Thus taking all factors into consideration this project will aim towards designing and implementing the
most appropriate kind of Brand Communication strategies for the restaurant which are in sync with its
positioning.

1.1.2 Food Industry


Fast food is the term given to food that can be prepared and served very quickly. While any meal with
low preparation time can be considered to be fast food, typically the term refers to food sold in
a restaurant or store with preheated or precooked ingredients, and served to the customer in a packaged
form for take-out/take-away. The term "fast food" was recognized in a dictionary by Merriam
Webster in 1951.
Outlets may be stands or kiosks, which may provide no shelter or seating or fast food restaurants (also
known as quick service restaurants). Franchise operations which are part of restaurant chains have
standardized foodstuffs shipped to each restaurant from central locations.
The capital requirement involved in opening up a fast food restaurant is relatively low. Restaurants with
much higher sit in ratios, where customers tend to sit and have their orders brought to them in a
seemingly more upscale atmosphere may be known in some areas as fast casual restaurants.

1.1.3 History
The concept of Ready cooked food for sale is closely connected with urban development. In ancient
Rome cities had street stands that sold bread and wine. A fixture of East Asian cities is the noodle shop.
Flat bread and Falafel are today ubiquitous in the Middle East. Popular Indian Fast food dishes include
2|Page

58
Vadapav, Panipuri and dahivada.In the French speaking nations of West Africa , road side stands in and
around the larger cities continue to sell as they have done for generations - a range of ready to eat ,
char grilled meat sticks known locally as Brochettes.

Start of Fast Food Culture


The concept of fast food pops up during 1920s. The 1950s first witnessed their rapid proliferation.
Several factors that contributed to this explosive growth in 50s were:

Americas love affair with the automobiles.


The construction of major new highway system.
The development of Sub urban communities.
The baby boom subsequently to world war second.

Fast food chains initially catered to automobile owners in Suburbia.

On The Go
Fast food outlets are take-away or take-out providers, often with a "drive-through" service which allows
customers to order and pick up food from their cars, but most also have indoor and/or outdoor seating
areas in which the customers can eat the food on-site.
Nearly from its inception, fast food has been designed to be eaten "on the go", often does not require
traditional cutlery, and is eaten as a finger food. Common menu items at fast food outlets include fish and
chips, sandwiches, hamburgers, fried chicken, french fries, onion rings, chicken nuggets, tacos, pizza, hot
dogs, and ice cream, though many fast food restaurants offer "slower" foods like chili, mashed potatoes,
and salads.

Variants
Although fast food often brings to mindtraditional American fast food such as hamburgers and fries, there
are many other forms of fast food that enjoy widespread popularity in the West.
Chinese takeaways/takeout restaurants are particularly popular. They normally offer a wide variety
of Asian food (not always Chinese), which has normally been fried. Most options are some form of
noodles, rice, or meat. In some cases, the food is presented as a smorgasbord, sometimes self service. The
customer chooses the size of the container they wish to buy, and then is free to fill it with their choice of
food. It is common to combine several options in one container, and some outlets charge by weight rather
than by item. Many of these restaurants offer free delivery for purchases over a minimum amount.

3|Page

58
Pizza is a common fast food category in the United States, with chains such as Papa John's, Domino's
Pizza, Sbarro and Pizza Hut. Menus are more limited and standardized than in traditional pizzerias,
and pizza delivery is offered.
Kebab houses are a form of fast food restaurant from the Middle East, especially Turkey and Lebanon.
Meat is shaven from a rotisserie, and is served on a warmed flatbread with salad and a choice of sauce
and dressing. Fish and chip shops are a form of fast food popular in the United Kingdom, Australia and
New Zealand. Fish is battered and then deep fried.
The Dutch have their own types of fast food. A Dutch fast food meal often consists of a portion of french
fries (called friet or patat) with a sauce and a meat product. The most common sauce to accompany
french fries is fritessaus. It is a sweet, vinegary and low fat mayonnaise substitute, that the Dutch
nevertheless still call "mayonnaise". When ordering it is very often abbreviated to met (literally "with").
Other popular sauces are ketchup or spiced ketchup ("curry"), Indonesian style peanut sauce ("satsaus"
or "pindasaus") or piccalilli.
Sometimes the fries are served with combinations of sauces, most famously speciaal (special):
mayonnaise, with (spiced) ketchup and chopped onions; and oorlog (literally "war"): mayonnaise and
peanut sauce (sometimes also with ketchup and chopped onions). The meat product is usually a deep
fried snack; this includes the frikandel (a deep fried skinless minced meat sausage), and the kroket (deep
fried meat ragout covered in breadcrumbs).
In Portugal, there are some varieties of local fast-food and restaurants specialized in this type of local
cuisine. Some of the most popular foods includefrangoassado (Piri-piri grilled chicken previously
marinated), francesinha, francesinhapoveira, espetada (turkey

or

pork

meat

on

two

sticks)

and bifanas(pork cutlets in a specific sauce served as a sandwich). This type of food is also often served
with french fries (called batatasfritas), some international chains started appearing specialized in some of
the typical Portuguese fast food such as Nando's.
A fixture of East Asian cities is the noodle shop. Flatbread and falafel are today ubiquitous in the Middle
East. Popular Indian fast food dishes includevadapav, panipuri and dahivada. In the French-speaking
nations of West Africa, roadside stands in and around the larger cities continue to sellas they have done
for generationsa range of ready-to-eat, char-grilled meat sticks known locally as brochettes (not to be
confused with the bread snackof the same name found in Europe).

Business
In the United States, consumers spent about US$110 billion on fast food in 2000 (which increased from
US$6 billion in 1970). The National Restaurant Association forecasted that fast food restaurants in the
4|Page

58
U.S. would reach US$142 billion in sales in 2006, a 5% increase over 2005. In comparison, the fullservice restaurant segment of the food industry is expected to generate $173 billion in sales. Fast food
has been losing market share to fast casual dining restaurants, which offer more robust and
expensive cuisines.

Globalization
In 2006, the global Food market grew by 4.8% and reached a value of 102.4 billion and a volume of
80.3 billion transactions.InIndia alone the Food industry is growing by 41% a year.
McDonald's is located in 126 countries on 6 continents and operates over 31,000 restaurants
worldwide.On January 31, 1990 McDonalds opened a restaurant in Moscow, and broke opening day
records for customers served. The Moscow restaurant is the busiest in the world. The largest McDonalds
in the world, with 25,000 feet of play tubes, an arcade and play center, is located in Orlando,
Florida, USA.
There are numerous other fast food restaurants located all over the world. Burger King has more than
11,100 restaurants in more than 65 countries.KFC is located in 25 countries. Subway is one of the fastest
growing franchises in the world with approximately 39,129 restaurants in 90 countries as of May
2009,the first non-US location opening in December 1984 in Bahrain.Pizza Hut is located in 97
countries, with 100 locations in China. Taco Bell has 278 restaurants located in 14 countries besides the
United States.

1.1.4 FoodIndustry Structure


Structure of the
industry

5|Page

Unorganized
Formats

Organized
Formats

58

Dhabas
Roadside
Eateries

Dining
- Fine Dining
- Casual Dining
Bars and Lounges
Quick Service Restaurants
(QSRs)
Food Courts
Cafes
Kiosks

Unorganized segment
The unorganized segment dominates the Indian food service industry. It lacks technical and accounting
standardization. It comprises Dhabas and roadside eateries that have been the most common forms of
restaurants and have traditionally addressed eating out requirements of Indians.
1. Dhabas
2. Roadside Eateries

Street stalls

Hawkers

Trolleys

Standalone sweet shops

The average price of the food sold ranges between Rs. 10 and Rs. 100.

Characteristics of Unorganized segment


1.

Numbers of employees are mostly less than 10.

2.

No proper seating arrangements.

3.

Low product quality/unhygienic product.

4.

Low price.
6|Page

58

Drawbacks of Unorganized segment


1.
2.
3.
4.

Workers working in unorganized sector get low wages.


There is no provision for overtime, paid leave, holidays, leave due to sickness etc.
Employment is a subject to high degree of insecurity.
A large number of people doing small jobs such as selling on the street or doing repair work come

under unorganized sector.


5.
It is largely outside the control of government.

Organized segment
The organized segment of the restaurant industry is 16-20% of the total industry, with various forms
such as:

Dining

Fine Dining- A full service restaurant with a specific dedicated meal course. Dcor features high quality
materials with an eye towards the atmosphere desired by the restaurateur. The staff is usually highly
trained. Fine dining restaurant usually targets rich and upper middle class consumer segments and offers
unique ambience and upscale service.

Casual Dining - A restaurant serving moderately priced food in a casual atmosphere oriented towards
affordable family dining. Except for buffet style restaurants, these typically provide table service. This
addresses the price point between fast food establishments and fine dining restaurants.

Bars and lounge

Mainly serve alcohol and related beverages. Includes night clubs, sports bars, etc.
Example: F-Bar, Xtreme Sports Bar

7|Page

58

Quick Service Restaurants (QSRs)

They emphasize on speed of service, low cost and convenience. Also known as fast food outlets, for
practical purposes, they are essentially characterized by minimal table service and can have a take away
and/or home delivery format.
McDonalds, Nirulas, Dominos, Haldirams, Subway, Bikanerwalas, Vaango are some of the leading
names in this category.

Food courts

A relatively nascent phenomenon and being popularized by mall developers; also present at other shared
spaces (for example airports, hospitals and office complexes).

Cafes

Comprises of coffee bars and parlours (for example Barista Lavazza, Caf Coffee Day) and chai bars.
These are casual restaurants that emphasize on serving beverages and food is incidental.

8|Page

58

Kiosks

A relatively new format which comprises Chinese food, corn, chat kiosks and those from established
branded players like Caf Coffee Day or Nirulas. Also includes ice cream kiosks.

Regulatory issues

Food regulation and licenses

The Indian food and processing industry is governed by multiple legislations and dealing with them is a
challenge. Starting a restaurant requires all permits and licenses from local governing bodies and
adequate insurance coverage. There are upto 10 basic licenses to be procured before setting up a food
supply store. In addition the duration of these licenses vary from 1 to 3 years.

Key Foreign Direct Investment (FDI) Regulations

The following regulations of Hotel & Tourism sector and Development of Townships, Housing, Built-up
infrastructure and Construction-development projects apply to the food service sector.

FDI in Hotel & Tourism sector in India

100% FDI is permissible in the sector on the automatic route. The term hotel includes restaurants,

beach resorts, and other tourist complexes providing accommodation and/or catering and food facilities
to tourists.
9|Page

58
Under the Automatic Route, the non-resident investor or the Indian company does not require any

approval from the RBI or Government of India for the investment.


-

Besides the entry conditions on foreign investment, the investment/investors need to conform to all

relevant sectoral laws, regulations, rules etc.


-

The national security/internal security related conditions as contained in relevant statutes or

notifications of the Government will also have to be complied with. The State Governments/Union
Territories have regulations in relation to the subjects in their legislative domain. These regulations also
have to be met/complied with.
-

As per the recent circular on Foreign Direct Investment issued by the Government of India, foreign

investors are now allowed to bring in fresh money and technology to India irrespective of the impact on
local partners in any existing joint venture.

1.1.5 Food Industry in India

INDIA - Emerging market for global players


The percentage share held by foodservice of total consumer expenditure on food has increased from a
very low base to stand at 2.6% in 2001.Eating at home remains very much ingrained in Indian Culture
and changes in eating habits are very slow moving with barriers to eating out entrenched in certain
sectors of Indian society.The growth in Nuclear families, particularly in urban India, exposure to global
media and western cuisine and an increasing number of women joining the workforce have had an
impact on eating out trends.
Facts and Figures
Fast food is one of the worlds largest growing food type . Indias Food industry is growing by 40% a
year and expected to generate 2 billion dollar in sales by 2015. The multinational segment of Indian Food
industry is up to Rs 100 billion, a figure expected to be 200 billion by 2015.In last 6 years, foreign
investment in this sector stood at Rs 3600 million, which is about 1/3 rd of total investment made in this
sector. Because of the availability of raw material for fast food, global chains are flooding into the
country.
Market size & major players

Dominated by McDonalds having as many as 250 outlets serving more than 6.5 lakh customers

daily in India..
10 | P a g e

500+ dominos pizza stores.


Pizza hut is also catching up and it has planned to establish
Subway has around 353 outlets in India.

58

1.1.6 Reason for Emergence


1. Gender roles Gender roles are now changing. Females have started working outside. So, they
have no time for their home and cooking food. Fast food is an easy way out because these can be
prepared easily.
2. Customer Sophistication and Confidence Consumers are becoming more sophisticated now.
They do not want to prepare food and spend their time & energy in household works. They are
building their confidence more on Ready-to-eat & easy to serve kind of foods.
3. Double Income group Emergence of double income group leads to increase in disposable
income. Now people have more disposable income so they can spend easily in fast food and other
activities.
4. Large population India being a 2nd largest country in terms of population possesses large
potential market for all the product/services. This results into a large number of fast food players
in the country.
5. Relaxation in rules & regulations With the economic liberalization of 1991, most of the tariff &
non-tariff barriers from the Indian boundaries are either removed or minimized. This helped
significantly MNCs to enter in the country.
6. Menu Diversification

1.1.7 Challenges for the Industry


1. Social and cultural implications of Indian switching to western breakfast food Generally,
Hindus avoid all food that are believed to inhibit physical and spiritual development. Eating
meat is not strictly prohibited, but many Hindus are vegetarian because they adhere to the
concept of ahimsa. Those seeking spiritual unity may avoid onions and garlic. The concept of
purity influences Hindu food practices. Practices from cow (e.g. Milk, yogurt, ghee clarified
butter) are considered pure. Pure food can improve the purity of impure foods when they are
prepared together. Some foods such as, beef or alcohol are innately polluted and can never be
made pure. But now, Indians are switching to fast food that contain all those things that are
considered impure or against their beliefs. Some traditionalist and fundamentalist are against this
transformation of food habit and number of times they provoke their counterparts to revolt
against such foods, and that is what happened when McDonalds decided to enter the complexity
of Indian business landscape, counting only on its Fast food global formula, without any
apparent previous cultural training.
11 | P a g e

58
2. Emphasis on the usage of Bio-degradable products Glasses, silverware, plates and cloth
napkins are never provided with fast food. Instead paper plates and napkins, polyurethane
containers, plastic cups and tableware, drinking cartons or PET (Polyethylene terephthalate)
bottles are used, and these are all disposable. Many of these items are tossed in the garbage
instead of being recycled, or even worse, merely thrown on the ground. This burdens nature
unnecessarily and squanders raw materials. In order to reduce soil and water pollution,
government now emphasis more on the usage of bio degradable products.
3. Retrenchment of employees most of the new industries are capital intensive and may drive
local competitors, which have more workers, out of business.
4. Profit Repatriation Repatriation of profits is another area of concern for Indian economy. As,
when MNCs enters any country, people and government hope that it will increase the
employment rate and result in economic growth. However, with the multinational operation host
country experience these benefits for a short time period. In long run neither employment
increases(because of capital intensive nature of MNCs) nor it increases the GDP or GNP
because whatever MNCs earn they repatriate that profit to their home country.

1.1.8 Problems of Industry


1. Environmental friendly products costs high Government is legislating laws in order to keep
check on the fast industry and it is emphasizing more on the usage of bio- degradable and
environmental friendly products. But associated with this issue is the problem that fast food
player faces the cost associated with the environment friendly product. They cost much higher
than the normal products that companies uses for packaging or wrapping their products.
2. Balance between societal expectation and companies economic objectives - To balance a
societys expectation regarding environment with the economic burden of protecting the
environment. Thus, one can see that one side pushes for higher standards and other side tries to
beat the standard back, thereby making it a arm wrestling and mind boggling exercise.

Health Related issues


1.

Studies have shown that a typical fast food has very high density and food with high density causes

people to eat more then they usually need.


12 | P a g e

2.

58
Low calories food: Emphasis is now more on low calorie food. In this line Mcdonald has a plan to

introduce all white meat chicken Mcnugget with less fat and fewer calories.

1.1.9 Trends In Indian Market


1.

Marketing to Children - Fast food outlet in India target children as their major customers. They

introduce variety of things that will attract the children attention and by targeting children they
automatically target their parents because children are automatically accompanied by their parents.
2.

Low level Customer commitment Because of the large number of food retail outlets and also

because of the customers to switch from one product to other, this industry faces low customer
commitment.
3.

Value added technology services There is a continuous improvement in the technology as far as

Food market in India is considered. The reason behind that is a perishable item and in order to ensure that
it remain fresh for a longer period of time. Earlier Indian used to prefer eating at home but now with the
change in trend there is also need for improvement and up gradation of technology in food sector.
4.

Attracting different sectors of the market Fast food outlets are introducing varieties of

products in order to cater the each and every segment of the market. They are introducing all categories
of products so that people of all age, sex, class, income group etc can come and become a customer of
their food line.

Major players
According to a National Restaurant Association of India (NRAI) 2010 report, the food industry in India is
currently estimated at ` 6,750 crores to ` 8,000 crores, growing at a CAGR of 35-40 per cent annually. A
major chunk of this market is ruled by global players like McDonalds, Yum! Brand, Dominos, Subway,
Taco Bell, Barista etc.
Reason behind success of multinational chains
1.
2.
3.
4.

Expertise in product development.


Sourcing practices.
Quality standards.
Service levels & standardized operating procedures.

13 | P a g e

58
But domestic players like Nirulas, US Pizza, Pizza Corner, Kaati Zone and home-grown Coffee Day
Group or even Haldirams, Bikanervala,Rasnas Devils Workshop are not lagging behind to capture a
fair share of the quick meals bazaar.
Major players in food industry are:

MCDONALDS.
Yum brands- KFC, PIZZA HUT.
CAF COFFEE DAY.
SagarRatna
SaravanaBhavan.
Carnatic caf.

Fiscal and monetary policy

The evolving industry is a significant contributor in terms of tax or VAT to the economy. Currently

it contributes $220 million and has the potential to reach $770 million.

100% FDI is permissible in the sector under the automatic route.

i.

Demand drivers

Demand Side Drivers The Demographic Profile of the Indian Consumer Segment

Favorable demographics and growing working population to augment demand for food

service chains
With a population of 1.2 billion, India represents one of the largest consumer markets in the world.
Additionally, the country enjoys one of the largest and most balanced demographics in terms of age, as
India has more than 50% of its population below the age of 25 and more than 65% is below the age of 35.
Currently, 63.38% of the population is between 15-59 years. The tremendous growth in its population of
young people is likely to bring about a shift in the Indian food service trends, as young population drives
the demand for processed and health foods. This would provide an impetus for the growth of the food
service industry.

Growing disposable income

Growing affluence and higher spending capacity provides a huge opportunity for the food services sector.
With higher disposable income, consumers do not hesitate to spend more on eating out.

Increasing number of working women


14 | P a g e

58
Not only has the working age population risen but the proportion of women among the employed has
also gone up. With the number of working women on the rise, households are expected to increase the
frequency of eating out as a result of less time available for women for household activities.

Increasing urbanization

The proportion of Indian population living in urban areas has displayed an upward trend for several
years. Expected to grow even further, the urban population will contribute to increasing demand for
eating out.

Growing Middle Class

The middle class has been the largest patron of the food service industry and is expected to grow by 67%
by 2015. This would definitely increase the dining out consumer base.

ii.

Domestic economic conditions

There are 10 million street vendors in India, of which 6 million sell ready to eat food.

According to a report by Technopak Analysis, the market size of the food service sector is estimated to be
$8.1 billion by 2013 and $9.6 billion by 2018. It is growing @ 5-6% per annum.

The industry provides direct employment to 5 million individuals, five times the IT industry and 10

times the Hotel industry.

According to a report by ASSOCHAM, the consumer spending on processed food has increased at

an average rate of 7.6 per cent annually from 2008 to 2010 and this is expected to rise at an average of
around 8.6 per cent until 2012.

According to research report, Indian Food Market Analysis, the Indian Food Industry is

anticipated to grow at a CAGR of around 34% during 2011-2014


The major shift in food habits of urbanites and the interest of the rural population to try their hands on the
fast food menu has paved way to the growth of the fast food venture
There is a large scope of growth in the untapped tier-II and tier-III cities, owing to which, major
fast food retailers have already started applying various marketing strategies in popularizing their
brands in these cities. Furthermore, they are aiming to provide affordable and customized products
to suit the needs of people that would ultimately provide necessary boost to the Indian Food
industry

15 | P a g e

58

Introduction of KFC
KFC Corporation, based in Louisville, Kentucky, is the worlds most popular chicken
restaurant chain, specializing in Original Recipe , Extra Crispy TM, and Colonels Crispy Strips
chicken with home style sides and five new freshly made sandwiches. Every day, nearly eight
million customers are served around the world. KFCs menu everywhere includes Original
Recipe chickenmade with the same great taste Colonel Harland Sanders created more than a
16 | P a g e

58
half-century ago. Customers around the globe also enjoy more than 300 other productsfrom 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, timestrapped families. He called it, Sunday Dinner, Seven Days a Week.
Today, the Colonels spirit and heritage are reflected in KFCs brand identity the logo
features Colonel Harland Sanders, one of the best recognized icons in the world.

KFC
KFC specialized in chicken and they says,
No bodys 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


Now enjoy T2O Cricket festivity with KFC's exciting new offer; Get a complete T20 Meal
Box which includes; 1 Zinger Burger, 3 pcs. Hot Wings, 1 regular Drink, 1 Fries and 1 Dinner
Roll ! in only Rs 320/- only

KFC History
KFC is an internationally renowned fast food industry in the world. They have the main
ambition to increase & maintain the quality in fast food industry. Their aim is to

capture the fast

food market. Basically they want to provide their products to anyone

is

that

why

they

expanding their branches in all over the world.


They want to increase their profit through giving maximum satisfaction & other
facilities to people that they want. Now after catching such a marvelous
17 | P a g e

position

better
in

the

International Market, KFC is introducing a new item Boneless Fried

58
Chicken, with

even

more attractive and charming taste.

Companys Overview
Colonel Harland sanders, born September 9, 1890, actively began franchising his chicken business
at the age of 65. Now, the Kentucky fried chicken business he started has grown to be one of the
largest retail food service systems in the world. And colonel sanders, a quick service restaurant
pioneer, have become a symbol of entrepreneurial spirit. More than two billion of the colonels
finger lickin good chicken dinners are served annually. And not just in America. The colonels
cooking is

available in more then 82 countries around the world.

When the colonel was six, his father died. His mother was forced to go to work, and

young

Harland had to take care of his three year old brother and baby sister. This meant doing much of the
family cooking. By the age of seven, he was a master of a score of regional dishes. Ate age 10, his
first job working on a nearby farm for $2 a month. When he was 12, his mother remarried and he
left his home near Henryville, Ind., for a job on a farm in Greenwood, Ind.
He held a series of jobs over the next few years, first as a 15-year-old streetcar
New Albany, Ind., and then as a 16-yearold private, soldiering for six

conductor

in

months in Cuba.

After that he was a railroad fireman, studied law by correspondence, practiced in ustice of
the peace court, sold insurance, operated an Ohio River steamboat ferry,

sold tires, and Operated

service station. When he was 40, the colonel began cooking

for

hungry

ravelers

who

stopped at his service station in Corbin, KY. He didnt have a

restaurant then, but served folks

on his own dining table in the living quarters of his service station.
As more people started coming just for food, he moved across the street to a motel

and

restaurant that seated 142 people.Over the next nine year, he perfected his secret blend of 11 herbs
and spices and the basic cooking technique that is still used today.

Values of KFC
Focus all our resources to our restaurants operation because that is where we serve our
customers.
Reward and respect the contributions of each individual at KFC.
Expand and update training with time and be the best we can be and more.
Be open, honest and direct in our dealings with one and other.
18 | P a g e

58
Commit ourselves to the highest standard to the personal and professional integrity at all
times.
Encourage new and innovative ideas because these are the key to our competitive growth.
Reward result and not simple efforts.
Dedicate ourselves to continuous growth in sales, profit and size of organization.
Work as a team.

Philosophy of KFC the CHAMPS program


Champs stands for our belief that the most important thing each of us can do is to focus on the
customer. It stands for our commitment to provide the best food and best experience for the best
value.
CHAMPS stand for the six universal areas of customer expectation common to all cultures and all
restaurants concepts.

The CHAMPS
These are:
Cleanliness
Hospitality
Accuracy
Maintenance of Facilities
Product Quality
Speed of Service
CHAMPS is the philosophy to ensure that the customer has the consistent quality experience in
every restaurant, everyday, on every occasions and you will be playing role in delivering CHAMPS
to our customers.

Mission of Statement
To be the leader in western style restaurants through friendly service, good quality food and clean
atmosphere

Goals of KFC
Build an organization dedicated to excellence.
Consistently deliver superior quality and value in our products and services.
19 | P a g e

58
Maintain a commitment to innovation for continuous improvement and grow, striving
always to be the leader in the market place changes.
Generate consistently superior financial returns and benefits our owner and employees.
To establish in Pakistan our position as leading WQSR (Western Quick Service Restaurant)
chain, serving good value. Innovative chicken-based products.
Consistently, providing a pleasant dining experience, with fast friendly, in a clean and
convenient location. At all times we must be dedicated to providing excellent and delighting
customers.

Product Issues
General description:
Features:

Quality Control Over Ingredients


Every Chicken Tested
K & Ns 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.

Every Chicken Certified


HACCP K & Ns 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
Pakistan producing chicken and chicken products. Free from diseases and bacteria, drug residues
and other contaminants.
Quality Assurance Certificate
Director General ( Research ) has issued quality assurance certificate for the chicken used by KFC.

Packaging
We are asked as many questions on our packaging as our products by our customers. The
packaging for KFC products is chosen according to performance against three key criteria:
20 | P a g e

58
Heat Retention
Moisture removal
Grease absorption
The packaging material and carton design are all adapted to maximize performance against these
three criteria.
Recycled Paper
All our clamshells and chicken boxes contain as much recycled material as it is legally allowed. By
law we are required to have virgin fibre board in any part of the packaging that is in contact with
food. Any virgin fibre comes from board suppliers who use pulp bought from managed forest in
Scandinavia. This ensures that any wood cut for

paper production is replaced with new

plantings.
Environmental Concerns
Over and above ensuring our packaging is supplied via recycled or renewable resources; KFC are
enthusiastically complying with the new environmental directives on recovery and recycling of
packaging waste.
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.


Branding
This research measured and compared the brand identity of Kentucky Fried Chicken

(KFC) in

Pakistan. Brand identity was defined as the customer impressions of four different KFC identity
elements - properties, products, presentations, and publications. A survey of young consumers in
the countries (n = 795), showed that the

respondents were more apt to eat within KFC

restaurants, and spend more time doing

so, than the Americans. The Chinese also had much

more positive impressions of KFC. Brand identity impressions were correlated with overall
customer satisfaction and with future patronage intentions for both groups. 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.

21 | P a g e

Substitutes and Complements

58

As mentioned above, there are a few major competitors in the fast-food industry in Pakistan
for KFC, namely McDonalds, Pizza Hut, Domino's and Subway. The substitute products, in
this case, would be burgers, pizza, and sandwiches. Though they are competitors, their
primary products differ greatly from each other, in that they sell, chicken, burgers and fries, pizzas,
and sandwiches, respectively. Traditional Pakistan dining, home-cooked meals, and grocery stores
with ready-to-eat foods are also substitutes, as families could choose any one of these over fast
food for a meal. These substitutes are definitely considered healthy as compared to the fast food
chains. Even foods from street vendors count as substitute goods.
While other fast foods serve as substitute to KFC, they can also serve as complements for
fast foods as a whole. If the general price of fast foods goes up,KFCs price rises as well, and the
same can be said of the quantity sold of these products, which make them complements

to

each

other. KFC also sets up stores located near popular tourist attractions, so tickets to these tourist
spots are also complementary goods because the more people tour these attractions, the more
customers KFC will get.
Behavior
In behavioral aspect they segmented the market on the basis of quality, taste and price. Following
are the different possible segments in this regard.
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.
Urban areas
Sub urban areas

Profile criteria:
1.Gender: KFC is for each gender both male and female.
2.Income: Everyone can use the KFC service upper and middle class .
3.Age: age limitation for using this product above 15
22 | P a g e

58
4.Occupation: By profession also everyone can use this product means businessman student
workers and other peoples.
5. Education: It has no need more education that why the person who know something caneasily
enjoy with this product.
6. 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.
7. Lifestyle: This product is used in every level of social class like upper, middle class.
8. Attitude : When the customers once buy this product after that they can use the product
continuously.
9. Purchasing decision: Often KFC changes the purchasing decision of customers because of its
good attributes.
10. Geographic region: Geographically KFC is used in every part of the country as well as all over
the world.

Product positioning
Customer perceive this product as a unique product that other are not giving .
Attitudes
The attitudes of the public is very good people like our this new product like others.
Purchasing process:
Many people come from home to eat this , and some make impulse decision as they saw it .

Market Coverage Strategy


KFC will be using differentiated market coverage strategy. It means that different marketing mix
will be used for different age groups.

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). These buyers have a need to satisfy their needs through exchange . These needs
make up the demand for particular products and services. Several components must be considered,
as all these components have a direct or indirect impact on KFCs success.Changes in the below
described components over the last couple of years have led to big changes in peoples attitudes
towards healthy food. It explains why Australians today
23 | P a g e

want to eat healthy and nutritious-rich

58
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, people have .

Macro environment
KFC operates in a larger macro environment of forces that creates opportunities, but also threats.
(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.
However, KFC has to carefully examine macro environmental trends and must create competitive
responses to such trends. There are six major macro environmental forces KFC has to take into
account.

Micro environment
The microenvironment consists of all forces that are close to KFC, and on which KFC has an
impact. They directly affect KFCs ability to serve its customers. (Kotler et al 2003). Three major
components influence KFCs micro environment:
Customers
KFCs customer market consists solely of the consumer market (Kotler et al 2003).
KFCs products are bought by individuals (males, females, singles, and families).
Therefore, the product range KFC offer should appeal to as many people within this consumer
market as possible, to ensure that the maximum amount of products can be sold. The
characteristics of these individuals and a segmentation of them are discussed later in this report.
24 | P a g e

58
Strengths and weakness of competitor
Strengths: 38 products, Attractive Outlets, Huge Marketing, Budget, More entertainment for kids
Weaknesses: Same type of Menu, No Home Delivery
How they compete their competitors ?
It is found that KFC compete its competitors by five ways:
o
o
o
o

KFC compete its competitors through marketing strategy


They offered different packages at different events like ramdan offer, midnight offer etc.
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.

Marketing Strategies Of KFC


There are different strategies adopted by KFC for different events. They

market

their

products on different events and in different activities as they are helping SOS village.
According to KFC, 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, customer not depend on us. KFC is following Niche Marketing and
Societal Marketing techniques. KFC possess a western culture because some of the people are also
following that culture.
KFC are moving from Divisional Level to the District level by opening branches
KFC also offer free home delivery.
KFC open their outlets on reachable places.
KFC menu consists of more than 30 products.
KFC gives more priority to Family.
Marketing
Since 1982, KFCs All-American salute to Mothers national card contest
KFCs way of honoring moms and their families for making
sales day of the year. The contest encourages
their moms by making a
25 | P a g e

has been

mothers Day KFCs biggest

children to creatively express their feelings for

homemade card and give them chance to compete for more than

$10,000

58
in cash and prizes. Educational packets, including language, history and art

exercises highlighting Mothers Day, were sent to thousands of schools

nationwide.

There are 4 Ps of Marketing:


1. Production
2. Pricing
3. Promotion
4. Placement
Production:
Basically the product is anything that be offered to a market for attention, acquisition,
consumption that might satisfy a want or need. KFC is specially dealing in the

use,

or

chicken

products; Basically, KFC has the special raspy for chicken products that is why, KFC known as a
chicken specialist allover the glob. KFC target the Asia and east
they people are like the chicken products, so they enter
their chicken products. KFC product variety of
Products:
Original recipe chicken
Extra Tasty CrispyTM chicken
Hot WingsTM pieces
Tender Roast chicken
Chunky Chicken pot pie
Kentucky Nuggest
Colonels Crispy Strips
Honey BBQ sandwich
Original Recipe Sandwich
Tender Roast Sandwich
Triple Crunch Sandwich
Triple Crunch Zinger Sandwich
Brand:
There are three brands of the KFC:
1) Taco bell
26 | P a g e

side because they observe that

in the market due to the demand of

product in the chicken, those products are:

58

2) Pizza Hut
3) Long john silvers
Pricing:

KFC during pricing their products keep the different points in the mind like they adopt the cost
base price strategy. Pricing of the product includes the Government taxes and excise duties and
then they come at final stage of determine the price of their products. KFC prices of products are a
bit high according to the market segment and it is also compatible to the

stander

of

their

products.
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. If you promote your product at the right time. 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. They are also creating awareness among the masses about
their existing product range as well they tell us about the future product.
Marketing efforts to be taken by the restaurant:
Paste delivery posters at petrol pumps, flats, colleges, plazas, and departmental stores.
Distribution of delivery flyers in residential areas, markets, plazas and institutions (as per
the plan)
Visit offices and business places.
Placement:
In the case of the KFC the placement of the product is not important but the placement of the
restaurant is important. The products of the KFC is cooked at the sport and then served
KFC Cavalry branch opened in June 1998, in the main commercial zone of

after that.

Cavalry Grounds

near the Jinnah Flyover. The restaurant is a three-story building including the basement (where the
chicky play area is located). It is ideally located in the center of a main commercial and residential
area of Lahore. The area that KFC Cavalry caters for is the residential and office area of Cavalry
Grounds and Cantt, as the main target market. Another branch the KFC opened in the Lahore is in
Garden Town (opposite to Barkat Market). KFC also target the Faisalabad and open its branch in D
ground.

27 | P a g e

58
Now we can easily judge that the KFC target the place for their restaurant, which is well known
and is in the Porsche area where the income level of the people is high then the

middle

class

level. 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, high quality, and due to international brand, it is the world
recognized fast food restaurant all around the world. So, for the placing strategy, KFC chose the
well income class area for their restaurants.
Advertisement
I do not normally think that advertising stunts are particularly interesting or creative, but I
thought this one by KFC waswellinspired. KFC, the fried chicken franchise , is offering itself
as a corporate sponsor for pothole repair. An actor dress as KFC founder Colonel Sanders and a
road repair group got started this week in the franchises hometown of Louisville, Ky. Filling up
hundreds of holes.
Many of the repairs are decorated with a while stencil saying the spot wasRe-freshed by
KFC A play on KFCs ad campaign stressing the freshness of their chicken . KFC spokesman
Russell Dayer said that crew is using Regular asphalt, not day old biscuits .
Business sector is Fast food outlets & restaurants. 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, the lead singer then swallows fire. The commercial
then shows the lead singer at a KFC eating the "wicked crunch box meal" and saying "Oh man that
is hot". In 2007, the original, 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.

28 | P a g e

58

CHAPTER 1
RESEARCH
METHODOLOGY

29 | P a g e

58

RESEARCH METHODOLOGY
1.1 SCOPE OF THE PROJECT

Seeking opportunities for corporate tie ups & cross promotion tie ups.
Understanding the consumer behavior in response to the factors that have an impact on their

dining experience.
Understanding the footfall trend.
Loyalty project Segregating loyal customers based on recency, frequency and monetary.
ODCs Increasing brand visibility and revenue.

1.2 OBJECTIVE OF THE PROJECT


To understand consumers perception towards the elements of marketing mix at Vaango- Devyani
International Limited.
To understand the effects of various marketing strategiesundertaken at the store level on the sales
figures of the outlet.
To understand the competitors for getting the clear idea about the competition that they can pose to
Vaango GIP, Noida.

1.3 RESEARCH METHODOLOGY


Research methodology provides the framework to collect and analyze data. The different research
designs will help the researcher to relate the research problem appropriately. There are two kinds of
research designs used in this project:

Conclusiveand exploratory research: Both primary and secondary data is being collected.
Primary data: Consumers (Survey questionnaire), Restaurant outlet and office workplace
(Observation)
Secondary data was collected from companys database, published researches and companys
website.

The major parts of the research methodology are:

Sampling Area- Vaango GIP, Noida

Sampling Unit- customers of vaango GIP, Noida

Sampling Size- 239 Vaango Customers

Sampling Technique- Random Sampling

Data Collection tools- Questionnaires

Data Analysis Tools- SPSS, graphical tools such as pie charts and bar graphs
30 | P a g e

58
Different methodologies were used to study different aspects of the project. The details are as
Follows:

1.3.1 Brand communication study


(External communication)- Various creative ideas and improvements for Vaangos web presence were
proposed after analyzing secondary data available online such as ongoing advertisements, campaigns,
website of the company as well as that of competitors. Proposal consisting of some significant changes
from the above references and from my own opinions were submitted to management which were
analyzed and implemented by them.
Assessment of outlet communication (External & Internal) was done through qualitative research; where
in Observations (store visits) were made on the features that add value to the customer. Secondary data is
collected from various sources like internet (websites of the competitors & other general sites), Case
studies to understand the current trend and factors that leave an impact on customers.
1.3.2 Consumer Behavior Research
Personal interviews from the customers on certain parameters ranging from taste to variety were taken
into consideration while taking feedback from the customers. Parameters were selected on the basis of
exploratory research (observation, informal interviews with customers etc). These parameters were
included in questionnaire to get more insights from the customer. The observation method was quite
essential because during this method, I did not interact with the customer, but tried to gather points which
were essential in determining his/her behavior during the entire time spent at the restaurant. It helped me
because in this way I could capture things which would not have been collected had I intimated them
about the same. This exercise was conducted for the first four days of my internship.
Primary data sources:
Primary data was collected through the techniques mentioned below. Of them, bulk of the information
was gathered by interviewing customers at the outlet
1) Consumers (Survey questionnaire)
2) Employees
3) Partner agencies
4) Corporate (Personal interview)
5) Restaurant outlet
6) Office workplace (Observation)

31 | P a g e

Secondary data sources:

58

On a similar note, the secondary data was collected by the below mentioned methods.
1) Company website
2) Other web publications
3) Company database
4) Research-related documents
Apart from the exercise mentioned above, some other objectives were also attached to this project. These
are mentioned below as:

Seeking opportunities for corporate tie ups & cross promotion tie ups

Understanding the consumer behavior in response to the factors that have an impact on their
dining experience.

Understanding the footfall trend

Loyalty project Segregating loyal customers based on recency, frequency and monetary.

Outdoor Catering Increasing brand visibility and revenue.

1.4 LIMITATIONS OF THE PROJECT


Unwillingness/Casualness of respondents to answer the questionnaire.
No complete access to the fundamentals of the company.
Some customers dont feel comfortable in filling questionnaire.
Sample size i.e. 72 for Vaango & is less to come at a conclusion.
Detailed study is restricted due to time frame of SIP.

32 | P a g e

58

CHAPTER 2
FINDINGS AND
ANALYSIS

33 | P a g e

58

ANALYSIS AND FINDINGS


Graphs& Pie Charts:
DEMOGRAPHIC PROFILES
Fig.1. AGE GROUP
Age
Frequency

Percent

Valid Percent

Cumulative
Percent

Less than 20

Valid

9.7

9.7

9.7

20-30

23

31.9

31.9

41.7

30-40

25

34.7

34.7

76.4

40-50

12.5

12.5

88.9

50 and above

11.1

11.1

100.0

72

100.0

100.0

Total

Maximum number of consumers base belongs to 20-30 & 30-40 age group.
34 | P a g e

58

Fig.2 Gender
Gender
Frequency

Percent

Valid Percent

Cumulative
Percent

Valid

Male

44

61.1

61.1

61.1

Female

28

38.9

38.9

100.0

Total

72

100.0

100.0

Visit of male customers are more in comparison of female customers.

35 | P a g e

58

Fig. 3 Income Group

Income
Frequency

Percent

Valid Percent

Cumulative
Percent

Valid

0-20000

36

50.0

50.0

50.0

20000-50000

22

30.6

30.6

80.6

50000-80000

5.6

5.6

86.1

80000-100000

9.7

9.7

95.8

100000 and above

4.2

4.2

100.0

72

100.0

100.0

Total

Maximum no. of customers are of income group 0-20000.

36 | P a g e

58

Rating On Parameters

Ratings\
Parameters
(in %)
Variety
Quality of
Service
Taste
Music

Good

Average

Needs
Improvement

Indifferent

84

14

94

89

59

16

20

Interpretation
These parameters are the most important as they actually gave the clear picture on how people like
the food, quality, service and if any further improvements could be implemented as per the
expectations of the customer. As per the data received, it can be said that:
Quality of service is exceptional with 94% of people find no problems with that and find it the best
thing at Vaango.
37 | P a g e

58
Vaangohas scored well in all the parameters having secured 84% and 89% in Variety and taste as
well which goes to show that Vaango is doing well in all the departments. If I talk about music, the
response was a bit different as in it gave a feeling that people are more or less concerned only about
the food, quality and service. The result floated a new thing that 20 % of the people said that they
were indifferent to music.

Popularity

Brand
name
Popularity
(in %)

Sagar
Ratna
51

SarvanaBhawan Naivedyam
22

15

Vaango

Others

10

Interpretation
In terms of popularity Sagar Ratna is way ahead of all other South Indian restaurants. People said
that the main reason behind that is the presence of Sagar Ratna across India. But Vaango should
take a heart from the fact that 10% of the people said that it is the restaurant that comes to their
mind when asked about the South Indian restaurant keeping in mind that it came into being only in
2011 and if Vaango continues to maintain the consistency, then the figure can rise from 10% to
30% in next two to three years.

38 | P a g e

58

Chi-Square Test
Definition: Chi-square is a statistical test commonly used to compare observed data with data we
would expect to obtain according to a specific hypothesis.
2) - Gender

Case Processing Summary


Cases
Valid
N
Gender *

Missing
Percent

72

consumerperception

100.0%

Total

Percent
0

0.0%

Percent
72

100.0%

Chi-Square Tests
Value

df

Asymp. Sig. (2sided)

Pearson Chi-Square
N of Valid Cases

18.817a

21

.597

72

Null hypothesis Ho- There is no relationship between customer perception and Gender of
customer.
Alternate hypothesis Hi- There is relationship between customer perception and Gender of
customer.
Interpretation
As p value is .059 which is more than alpha value (.05).Hence, Null Hypothesis is accepted;
therefore there is no relationship between customer perception and Gender of customer.

ANOVA:
Definition: A statistical analysis tool that separates the total variability found within a data set into
two components: Random and Systematic factors. It is used to determine the impact of independent
variable have on dependent variable in a regression analysis.

39 | P a g e

58
2) Income
ANOVA
Sig.
Between Groups
Total

.023
71

Null hypothesis Ho- There is no relationship between customer perception and income level of
customer.
Alternate hypothesis Hi- There is relationship between customer perception and income level of
customer.
Interpretation
As p value is .023 which is less than alpha value (.05).Hence, Null Hypothesis is rejected; therefore
there is relationship between customer perception and income level of customer.

3)-AGE
ANOVA
Sig.
Between Groups
Total

.916
71

Null hypothesis Ho- There is no relationship between customer perception and age of the
consumers.
Alternate hypothesis Hi- There is relationship between customer perception and age of the
consumers.
Interpretation
As p value is .916 which is more than alpha value (.05).Hence, Null Hypothesis is accepted;
therefore there is norelationship between customer perception andage of the consumers.

40 | P a g e

58

Paired T Test :

Definition- Given two paired sets Xi and Yi of N measured values, the paired t-test determines
whether they differ from each other in a significant way under the assumptions that the paired
differences are independent and identically normally distributed.

1 - Quality and Variety :


Paired Samples Statistics
Mean
Pair 1

Std. Deviation

Std. Error Mean

Quality

1.60

62

.757

.096

Variety

1.58

62

.560

.071

Paired Samples Correlations


N
Pair 1

Quality & variety

Correlation
62

Sig.

.097

.451

Paired Samples Test


Paired Differences
95% Confidence Interval

Mean
Pair 1 Quality
variety

.016

Std.

Std. Error

Deviation

Mean

.896

.114

of the Difference
Lower
-.211

Upper
.244

t
.142

Df

Sig. (2-tailed)
61

.888

H0: There is no impact of Variety onQuality.


H1: There is an impact of Variety onQuality.
Interpretation :
As the value of alpha is more than 0.05 therefore we will accepted the null hypothesis so there is no
significance difference between the Quality and the Variety by customer so Quality is affected by
the Variety.

41 | P a g e

58

2 - Offers attraction and Visit frequency :


Paired Samples Statistics
Mean
Pair 1

Std. Deviation

Std. Error Mean

offers are attractive

2.65

71

.972

.115

visit again

2.72

71

.814

.097

Paired Samples Correlations


N
Pair 1

offers are attractive & visit again

Correlation
71

Sig.

.162

.178

Paired Samples Test


Paired Differences
95% Confidence Interval

Mean
Pair 1 offers are attractive visit again

-.070

Std.

Std. Error

Deviation

Mean

1.163

.138

of the Difference
Lower
-.346

Sig. (2-

Upper
.205

t
-.510

df

tailed)
70

.611

H0: There is no impact ofattractiveoffers and visit again.


H1:There is animpact ofattractive offers and visit again.
.
Interpretation:
As the value of alpha is more than 0.05 therefore we will accept the null hypothesis so there is no
significance difference between the attractive offers and again visit by customer so offer
attractiveness affects the visiting frequency.

42 | P a g e

58
3 Reputed Brand and Referral to Friends :

Paired Samples Statistics


Mean
Pair 1

Std. Deviation

Std. Error Mean

reputed brand

2.29

72

.759

.089

refer my friend and family

2.99

72

1.000

.118

Paired Samples Correlations


N
Pair 1

reputed brand & refer my friend

Correlation
72

and family

Sig.

.024

.842

Paired Samples Test


Paired Differences
95% Confidence Interval

Mean
Pair 1 reputed brand - refer
my friend and family

-.694

Std.

Std. Error

Deviation

Mean

1.241

.146

of the Difference
Lower
-.986

Sig. (2-

Upper
-.403

T
-4.750

df

tailed)
71

.000

Interpretation:
H0:Reference by customers to their friends and familydoes not lead toReputation of Brand.
H1:Reference by customers to their friends and family lead toReputation of Brand.
As the value of alpha is less than 0.05 therefore we will reject the null hypothesis so there is
significance difference between the Reputation of Brand and Reference by customers to their
friends and family. So Reputation of Brand is not affected by the Reference by customers to their
friends and family.

43 | P a g e

58

Factor Analysis:
Definition: any of several methods for reducing co relational data to a smaller number of
dimensions or factors; beginning with a correlation matrix a small number of components or factors
are extracted that are regarded as the basic variables that account for the interrelations observed in
the data.
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy.
Bartlett's Test of Sphericity

.546

Approx. Chi-Square

217.605

Df

105

Sig.

.000

Rotated Component Matrixa


Component
1
Quality

.356

Taste

.800

Variety

.090

Music

.461

conveniently available

.724

reputed brand
menu is simple n easy

.792
.513

offers are attractive

.695

prime destination for south

.924

Indian
payment transactions quick n

.777

easy
beverages has unique taste

.900

refer my friend and family

.692

visit again

.894

website is well designed


aware of vaango

.568
.854

Interpretation:
According to the factor analysis the fifteen factors of consumer perception have been combined in
6 factors.
44 | P a g e

58
The data we received is as follows:We did a survey on KFC on people with age group of mostly 20-25yrs. Mostly all were
open to KFCs recipe , 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 home delivery services.

We also inquired How close is the nearest KFC outlet from your house?

45 | P a g e

58

Would you like to order at home or Dine in?

46 | P a g e

58

CHAPTER 3
CONCLUSION
AND
SUGGESTIONS

47 | P a g e

58

CONCLUSION AND RECOMMENDATION


The objective of this primary research was to get consumer feedback regarding various factors of
overall consumer experience and identifying the dominant factors which are most influential. After
application of quantitative techniques on the primary data there were a few facts highlighted
regarding the factors impacting the customer experience. Following are some actionable
recommendations to correct the loopholes and improvement.
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. This may be due to more convenience, time shortage
or just not willing to come and dine. Certainly the home delivery market is huge and KFC can take
well advantage of the situation.
Thus it would be in the best interest of the company to start the service as soon as possible
and capitalize on the opportunity. KFC expects a rise in the orders by at least 20% by starting this
service.
Therefore, to conclude we would say that KFC should definitely have a home delivery
service.

For GIP, Noida outlet:

To justify the price we can increase the portion size of meals, especially Idli, curd rice and
upma(by 15-20 grams)

One more order taking counter should be opened to reduce the waiting time in queue.

Most of the respondents are regular customers, some sort of discount card or reward points
card can be distributed to these customers to gain their loyalty.

Cross promotion with Big Bazaar and Store99.

Support or sponsor a local team, event or good cause it doesnt need to be a significant
investment but a local restaurant will get a lot of goodwill mileage out of a local tie-in
opportunity. Use your parking lot for a drop off point or an area for activity.

Use friends and family discounts by giving loyal customers a handful of discounted offers
that they can share with their friends it spreads your message in an honest way.
48 | P a g e

58
Free Product Drawing - Everyone loves the opportunity to win. An inexpensive and easy
way to encourage increased sales and enhance your mailing list is to conduct a weekly, bi-weekly
or monthly drawing for free product. Encouraging patrons to drop their business card for a
drawing is an easy and effective way to reward customers.

In GIP from 11:00 to 4:00 pm Most of the consumers are of the age group 15 to 22, so
Lovers combo (With Heard shaped Idlis, wada and Dosa with a special gift) should be
introduced to attract them.

Outlet isnear the food court so to attract children Children Combo(With small plates
having mascot photo in it , mini idlis, French fries and mini dosa and a gift) to attract them should
be introduced.

To make the web presence more evident following things could be done:

More activities on Facebook page

Discount coupons on snapdeal.com,dealsnyou.com.

Search Engine Optimization.

Cross Promotion tie-up with mobile recharging websites for voucher coupon distribution.

Consumers came to the outlet when they were roaming around in the mall so to attract
more such customers innovative flyering should be done.

Some special offers for lean hours should be introduced.

Products like Lemon rice,friedidli and dosa,couple combo variety should be introduced
because customers want menu additions.

Outcome/Contribution:
The outcome/contributions of this project report in improving brand visibility, were remarkable and
are summarized as follows:
Increase in average daily sale of Vaango GIP outlet by Rs. 4325

49 | P a g e

58
After the companys SWOT analysis, it was suggested more vigorous flyer distribution by the
Vaango staff, a significant increase in footfall was observed and the sales went up by Rs.4325, later
as suggested by the marketing team of Vaango an inflatable mascot was also used to draw attention
of the crowd. Also, the cross promotion Tie Ups done greatly helped vaango to increase its ADS.
Increased visibility on web world:
On the lines of proposed suggestions after web presence analysis following steps were taken by the
management:
Delhi, Gurgaon, Ghaziabad and Noida Vaango outlets were listed on Google maps.
Slides were added to the homepage featuring launch of new Vaango outlets.
Pictures of their outlets were added to the album on their Facebook page.
BOGO(Buy 1 Get 1) offer was introduced in weak days.
Kitty parties converted by me helped in increasing July-August sale by 7.14%.
Cross promotion tie ups initiated by me helped in attracting around 10 new customers every
day.

50 | P a g e

58

BIBLIOGRAPHY

51 | P a g e

58

BIBLIOGRAPHY:
WEBSITES

http://www.genesyslab.com/system/files/2673_ISG_EMEA_Retail_screen.pdf, pp.7-10.
http://www.businessgroupinc.com/PDFs/Promotion%20ReactanceThe%20Role%20of

%20Effort-Reward%20Congruity.pdf, pp.726-728
http://ag.arizona.edu/arec/wemc/nichemarkets/06marketingandpromotionresources.pdf,
pp.3-4

http://www.richmediahouse.com/RMH/integrated_brand_communications.pdf

http://india.gov.in/allimpfrms/alldocs/16452.pdf
http://www.evolutiononline.net/en/benefits/market_research/markenkommunikation.aspx
http://www.free-press-release.com/news-devyani-international-launches-vaango-

1300107417.html
http://www.wikinvest.com/stock/Yum!_Brands_(YUM)?ref=relatedpages
http://www.slideshare.net/sjhus/brand-communications-presentation

http://www.brandchannel.com/papers_review.asp?sp_id=1322

http://www.da-group.co.uk/index.php?option=com_content&view=article&id=18%3Athecommunication-mix&catid=2%3Amarketing-lectures&Itemid=3

http://www.small-biz-marketing-tips.com/marketing-communication-strategy.html

http://www.zomato.com/ncr/restaurants?q=vaango

http://www.rjcorp.in/

http://dil-rjcorp.com/

www.vaango.in

BOOKS AND JOURNALS


KotlerPhilip,Marketing Management,TMH,11Th Edition
Naresh K. Malhotra and Satyabhushan Dash, Marketing Researcher, 6th Edition, Pearson.
HaurieAlian, Muto Shigeo, Raghavan TES, Incentives for retailer promotion in a

marketing channel
KivetzRan,Kurtis KR,

Thilmany

Dawn:

Leveraging

existing

resources,Promotion Reactance, Marketing and Promotion Resources

52 | P a g e

programs

and

58

ANNEXURES
ANNEXURE 1
Questionnaire on consumer perception towards the elements of marketing mix
at Vaango
Personal Information:
Name :

Gender Male

Female

Age(Years) :
Less Than
20

20-30

30-40

40-50

50 and above

Salary :
0 - 20000

21000 - 50000

51000 - 80000

81000 - 1000000

100000 above

Which South Indian Restraunt You Visit Most:______________________________

53 | P a g e

58

S.No.

Particulars

1)

We have a wide range of


variety of food

2)

It was a TASTY experience

3)
4)

Service was quick and


delightful
Music was pleasant

5)

Ambience is excellent

6)
7)

Vaango isconveniently
available
Vaango is a reputed brand

8)

Menu is easy and simple

9)

Vaango offers are attractive

10)

Vaango is a prime destination


for Authentic South Indian
food
Payment transaction is quick
and easy

11)
12)

13)
14)

Vaango beverages are


different from others and has
a unique taste
I will refer my friends and
family for Vaango
I would love to visit again

15)
Vaango website is well
54 | P adesigned.(www.vaango.in)
ge
16)
I was well aware of this
brand
17)
I Liked the quality of food

Strongly Agree Neutral Disagree Strongly


Agree
Disagree

58

55 | P a g e

58

ANNEXURE 2

Wembley Estate, Shohna Road, Gurgaon

Central Park-2, Shohna Road, Gurgaon

56 | P a g e

58

Vipul Green, Sohna Road, Gurgaon

57 | P a g e

58

Acknowledgement
We would like

to express

my hearty

gratitude to my faculty guide, Prof. Mukesh


Bhatia for giving us the opportunity to
prepare a project report on Comparison
Between KFC and Vaango and for his
valuable guidance and sincere cooperation,
which helped us in completing this project.

58 | P a g e

58

Prashanth Kumar
PGDM : 2013 15
Place : New Delhi

59 | P a g e

(20130132)