Professional Documents
Culture Documents
Chapter I
KFC, Hubballi
EXECUTIVE SUMMARY
Every business organization reaches to the customers through their goods or
services. Tosell the products to the customers a number of activities are being
performed. This is called sales promotion and it is an important function. Sales
promotion is the performance of businessactivities that directs the flow of goods and
services from producer to the customer. It is theactivity that directs to satisfy the
human needs through exchange process.
Promotion is one of the elements of marketing mix. Promotion decisions are
takensimultaneously with other decisions like finding target group, determining
objectives,budgeting for promotion, launching of new products, distribution etc.
Promotion is one ofthe variables through which information regarding products or
services is beingcommunicated to customers to change their attitude and behavior.
Marketers are concernedwith effective utilization of promotion-mix to increase sales
and market share. Methods ofpromotion include advertising personal selling,
publicity, sales promotion and packaging.Sales Promotion is the activity that aims
directly to influence buyers to buy products andincrease sales. In sales promotion
mainly three parties are involved i.e. consumers, tradersand sales force. Sales
promotion refers to many kinds of incentives and techniques that aredirected towards
consumers, traders and sales force with the intention to increase sales inshort
term...The purpose of salespromotion is to stimulate, motivate and influence
thepurchase and other desired behavioral responses of the firms customers.
A study on Effectiveness of promotional activities and customer preference in
promotional activities in KFC is a survey related to review the literate about strategy,
branding and how sales promotion strategy can be effective regarding increasing
sales. The main objective is to identify the sales promotion strategy set by KFC and
also to study customer preferences in promotional activities and to understand
customer behaviour.
The study is based on descriptive research design. A questionnaire has been
designed, to know the point of view of respondent regarding the effect of sales
K.L.E. Societys College of Business administration, Hubballi.
KFC, Hubballi
promotion that helps consumers in buying decision making.The questionnaire was
filled by 130 respondents and the data collected was analyzed by the means of
statistical tools.
It was found that the main customers who come to kfc are students; around
60% of the respondents. The Major reason for awareness about KFC is due to friends.
The main reason the respondent visit kfc is because of the taste. The purpose of this
study is to come out with the strategies to attract the youth and families. This research
is intended to study the effectiveness of promotional strategies adopted by YUM
restaurants KFC in the sight of typical nature of Hubballi customers.
It currentlyoperates 72 outlets, with more than a third having been opened in
2009 Considering the fact that India has a large number of vegetarians one in three
Indians is a vegetarian KFC (originally Kentucky Fried Chicken) repositioned itself
as a fast-food chain serving tasty food, instead of focussing on chicken.
KFC, Hubballi
INTRODUCTION
Consumers are the blood of any marketing company but due to the stiff
competition and presence of more number of players in the same sector the impetus
on sales promotion programmes to lure the customers into the store has become more.
In the light of this situation this study is intended to find out an asses the relevant and
attractive promotional strategies that are accepted by the consumers. Indian
consumers are increasingly spending large sums, eating out with family and friends
on weekends and holidays, churning up a huge appetite for the global quick service
restaurant(QSR) and casual dining restaurant (CDR) business.Young and old Indians
can be seen devouring billions of dollars worth of fast food at shopping malls,
multiplex complexes, metro stations, highway eateries and even in office blocks, as
the eating out culture spreads across urban India. Even Tier-2 and Tier-3 cities are
witnessing this gastronomic revolution, much to the delight of QSR and CDR Majors.
According to a survey conducted by AT Kearney, a global management consultancy,
the Indian QSR market is growing at a compound annual growth rate (CAGR) of 10
per cent and is expected to touch the US$ 6.5 billion-mark in 2011.The fast food, or
QSR, format took off in India about 15 years ago with the arrival of multinational
players such as McDonalds, KFC, Dominos Pizza and Pizza Hut. These players
initially had a tough time understanding the Indian consumer, as their home-market
models did not work well in India.
Over the last decade, though, many of these players have got their act together
through a better understanding of the Indian market in the form of Indianised menus,
breakfast menus, sit-and-eat formats and positioning their outlets as destinations for
family outings. KFC (Kentucky Fried Chicken) is part of Yum! Brand incorporated
which is the worlds largest restaurant company. Yum! Brand incorporated comprises
of 5 central parts, quick service restaurant (QSR) concepts.
The location of KFC in Hubballi gokul roads situated in the Urban Oiasis mall
which is having three more restaurants which equally attract the youth and families
coming into the mall. The purpose of this study is to come out with the strategies to
attract the youth and families. This research is intended to study the effectiveness of
K.L.E. Societys College of Business administration, Hubballi.
KFC, Hubballi
promotional strategies adopted by YUM restaurants KFC in the sight of typical nature
of Hubballi customers. Some of the strategies adopted by KFC are Wednesday offers,
daily 12-3 offers etc. are there and executed to the standards of the brand. In the
purview of the Hubballi market conditions and location of the restaurant as the
constraints may have been the reason for not meeting the standard walk-ins as
compared to any two-tier cities as compared to KFC YUM restaurants cities.
Slowly and steadily the standard of living of Hubballi customers is improving
as a result of which we can see the opening up of chain restaurants in the market. This
also acts as one of the threats to other brands. The study is expected to come out with
the right marketing strategies to improve the walk-ins and hence sales. The study was
on youths who are the major target market of KFC.
Currently, sales promotion is given more emphasize than advertising in the
UK and its growth has been increased by several factors including: the progress
towards relationship marketing and worthwhile loyal customers, the appearance of
promotion-literate consumers who look forward to promotions with certain product
types, price-sensitive customers look for value for money promotions due to
recessions, etc. (Smith, 1998). Consumer sales promotion are integral part of the
marketing mix for many consumer products. Marketing managers use price oriented
promotions such as coupons, rebates, and price discounts to increase sales and market
shares.
KFC, Hubballi
INDUSTRY PROFILE
The Indian food industry is poised for huge growth, increasing its contribution
to world food trade every year. India's food and beverage industry currently stands at
US$ 40.3 billion and is expected to touch US$ 66.3 billion by 2018, registering a
growth of 18 per cent. The Indian food processing sector is poised for excellent
growth in the coming years. It is ranked fifth in terms of production, consumption and
exports. Anticipating the future growth, many big international players are entering
the Indian market by partnering with the domestic players. There are tremendous
opportunities for large investments in food and food processing technologies, skills
and equipment, especially in the areas of canning, dairy and food processing,
specialty processing, packaging, frozen food/refrigeration and thermo processing.
The Ministry of Food Processing Industries is making all efforts to encourage
investments in the sector, incentives for cold chain development and also grant-in-aid
for setting up laboratories that are equipped for testing food products.
The food processing industry is one of the largest industries in India - it is
ranked fifth in terms of production, consumption, export and expected growth. The
industry size has been estimated at US$ 70 billion by the Ministry of Food
Processing, Government of India. The food processing industry contributed6.3 per
cent to Indias GDP in 2003 and had a share of 6 percent in total industrial production.
The industry employs 1.6 million workers directly.
In India, the food sector has emerged as a high-growth and high-profit sector
due to its immense potential for value addition, particularly within the food
processing industry.
Accounting for about 32 per cent of the countrys total food market, the food
processing industry is one of the largest industries in India and is ranked fifth in terms
of production, consumption, export and expected growth. The total food production in
India is likely to double in the next 10 years with the countrys domestic food
market estimated to reach US$ 258 billion by 2015.The Government of India has been
K.L.E. Societys College of Business administration, Hubballi.
KFC, Hubballi
instrumental in the growth and development of the food processing industry. The
government through the Ministry of Food Processing Industries (MoFPI) is making
all efforts to encourage investment in the business. It has approved proposals for joint
ventures (JV), foreign collaborations, industrial licences and 100 per cent export
oriented units.
KFC, Hubballi
Indian brands. Companies have adopted various strategies to maintain and increase
their market share in India. These include competitive pricing, aggressive advertising,
campaign, expansion plans etc. High level of competition within the industry has lead
to innovations in several areas, thereby raising the overall capability levels in the
sector. This will facilitate sustained growth in the sector and help it to become
globally competitive
Market Size
The Indian food and grocery market is the worlds sixth largest, with retail
contributing 70 per cent of the sales. It is projected to grow at the rate of 104 per cent,
touching US$ 482 billion by 2020.
The Indian food processing industry accounts for 32 per cent of the countrys
total food market, 14 per cent of manufacturing Gross Domestic Product (GDP), 13
per cent of Indias exports and six per cent of total industrial investment. Indian food
service industry is expected to reach US$ 78 billion by 2018.The Indian gourmet food
market is currently valued at US$ 1.3 billion and is growing at a Compound Annual
Growth Rate (CAGR) of 20 per cent. It is expected to cross US$ 2.8 billion by 2015.
The online food ordering BUSINESS in India is in its nascent stage, but
witnessing exponential growth. The organised food business in India is worth US$ 48
billion, of which food delivery is valued at US$ 15 billion. With online food delivery
players like Food Panda, zomato, and Swiggy building scale through partnerships, the
organised food business has a huge potential and a promising future.
Investments
KFC, Hubballi
According to the data provided by the Department of Industrial Policies and
Promotion (DIPP), the food processing sector in India has received around US$ 6.55
billion worth of foreign investment during the period April 2000September 2015.
The Confederation of Indian Industry (CII) estimates that the food processing sectors
have the potential to attract as much as US$ 33 billion of investment over the next 10
years and also generate employment of nine million person-days.
Investment in food start-ups, which mainly include food ordering apps, has increased
by 93 per cent to US$ 130.3 million1 comprising 17 deals in 2015 till September 2015
as against only five deals in 2014.
Some of the major investments in this sector in the recent past are:
American doughnut chain Dunkin' Donuts has tied up with local online
grocery delivery platform Grofers for home-delivery of its packaged and
freshly made products.
Private Equity (PE) firm India Value FUND Advisors (IVFA) plans to invest
around US$ 100-150 million in the food business in India over the next two
years.
Zomato, a restaurant search and discovery platform, has raised US$ 60 million
from Singapore government-owned INVESTMENT Temasek, along with
existing investor Vy Capital, in order to explore new business verticals.
ITC Limited plans to INVEST Rs 800 crore (US$ 120 million) to set up a
world-class food processing facility in Medak, a district located in Telangana.
The company has also formulated plans to enter the dairy market.
Government Initiatives
KFC, Hubballi
food sector by increasing the level of processing of perishables from 6 per cent to 20
per cent, value addition from 20 per cent to 35 per cent and share in global food
TRADE from 1.5 per cent to 3 per cent by 2015. According to the Ministry, an
investment of Rest 100,000 crore (US$ 15 billion) would be required in 2015 to
achieve these targets.
Some of the major initiatives taken by the Government of India to improve the
food processing sector in India are as follows:
Government of India plans to allow two Indian dairy companies, Parag Milk
Foods and Schreiber Dynamix Dairies, to export milk products to Russia for
six months, after these companies got approval for their products by Russian
inspection authorities.
The Food Safety and Standards Authority of India (FSSAI) under the Ministry
of Health and Family Welfare has issued the Food Safety and Standards (Food
Product Standards and Food Additives) Regulations, 2011 and the Food Safety
and Standards (Contaminants, Toxins and Residues) Regulations, 2011 which
prescribe the quality and safety standards, respectively for food products.
The Ministry of Food Processing Industries has taken some new initiatives to
develop the food processing sector which will also help to enhance the
incomes of farmers and export of agro and processed foods among others.
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KFC, Hubballi
The Spices Board India has decided to sell around 30 of the choicest spices
and value added products globally under the brand names Spices India and
Flavour it by opening premium retail outlets abroad in partnership with
private investors.
The Government of India has approved the setting up of five numbers of Mega
Food Parks in the states of Bihar, Maharashtra, Himachal Pradesh and
Chhattisgarh. The Government plans to set up 42 such mega food parks across
the country in next three to four years.
In the Budget 2015-16, a corpus of Rs. 2,000 crore (US$ 300 million) was
created under National Bank for Agriculture and Rural Development
(NABARD) to provide cheaper credit to food processing industry. Excise duty
on plant and machinery for packaging and processing has been brought down
to six per cent from 10 per cent.
The Government of India has planned to set up 42 mega food parks across the
country in next three to four years.
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KFC, Hubballi
Going forward, the adoption of food safety and quality assurance mechanisms
such as Total Quality Management (TQM) including ISO 9000, ISO 22000, Hazard
Analysis and Critical Control Points (HACCP), Good Manufacturing Practices (GMP)
and Good Hygienic Practices (GHP) by the food processing industry offers several
benefits. It would enable adherence to stringent quality and hygiene norms and
thereby protect consumer health, prepare the industry to face global competition,
enhance product acceptance by overseas buyers and keep the industry technologically
abreast of international best practices.As it exists today, the domestic food and
beverage industry is a very competitive and mature industry with little domestic
growth. Increases in a companys market share usually come at the expense of a
competitors loss of market share (cannibalization). Overall most growth comes from
international expansion. With the passage of NAFTA and GATT, many domestic
companies are either entering into alliances with foreign entities, or acquiring them.
There are many reasons for this. For example, much domestic food and beverage
companies want to take advantage of existing distribution systems, or underutilized
plant capacity. Some acquisitions may be motivated by Federal income tax
considerations.
From the time that agriculture began about 7,000 years ago to the present there
have been many important developments that are responsible for the state of the
industry as it is today.
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KFC, Hubballi
Chapter II
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KFC, Hubballi
COMPANY PROFILE
KFC (Kentucky Fried Chicken) is part of Yum! Brand incorporated which is
the worlds largest restaurant company. Yum! Brand incorporated comprises of 5
central parts, quick service restaurant (QSR) concepts e.g. KFC, Pizza Hut, Taco Bell,
A&W and Long John Silvers.KFC Corporation, based in Louisville, Kentucky, is one
of the few brands in America that can boast a rich decades-long history of success and
innovation. It all started with one cook who created a soon-to-be world-famous recipe
more than 70 years ago, a list of secret herbs and spices scratched out on the back of
the door to his kitchen. The cook was Colonel Harland Sanders, of course and now
KFC is the worlds popular chicken restaurant chain, specialising in that same original
recipe along with Extra Crispy Chicken, home style sides and butter milk biscuits.
There are more than 18,000 KFC outlets in 115 countries and terrorises around the
world.
Colonel Sanders was passionate about helping people be their best selves
through education. It started with a hitchhiker who happened to be a college student.
The Colonel gave him a ride and a full scholarship. That act of kindness inspired the
Kentucky Fried Chicken Foundation, which has since provided $14 million in
scholarship to 2,600 students. As an independent 501(c) 3 non-profit organization, the
Foundations charitable programs are made possible through the ongoing support of
KFC Corporation KFC has been serving customers complete, freshly prepared family
meals since Colonel Harland Sanders founded the concept in 1952.
It is estimated that, on average, more than 185 million people see a KFC
commercial at least once a weekthats more than half the U.S. population. The KFC
system serves more than 12 million customers each day in more than 115 countries
and territories around the world. KFC operates more than 17,000 restaurants in the
Unites States and internationally. KFCs parent company is Yum! Brands, Inc., the
worlds largest restaurant company in terms of system restaurants, with more than
40,000 locations in more than 130 countries and territories and employing more than
one million associates.
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KFC, Hubballi
In 1986, KFC was followed by the joint venture operation with Trust house
Forte and PepsiCo. In 1997, PepsiCo Inc. declared to become independent restaurant
company. Then, KFC turned into the part of the Tricon group which is the worlds
largest restaurant group. In 2002, the name of Tricon changed into YUM! Brand Inc.
Because of the changes in the ownership, the potency of the KFC brand has been
spreading out of the UK & Ireland restaurant network in more than 700 locations,
some are company and some are franchisee. The first US quick-service restaurant was
KFC to enter into the UK. The success of exceptional restaurant values has also
resulted in the British operation performing as a guidance stand for many of the new
KFC restaurants functioning throughout Europe.The year, 2009 was KFC's greatest
success increasingly in Britain, with sales growth in a row at a well 10 per cent year
on year. Such is its assurance that it strategy to expand its current 780 outlets with
additional 45 to 50 over the next six years (Campaign, 19 th February, 2010). In the
recession, KFC held strong growth in the market as individuals were drawn to cheaper
deals. Chief executive Martin Shuker stated that he thought the chain was not only
obtaining market share from competitors like McDonald's, but that the division as a
whole was rising.
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KFC, Hubballi
Chapter III
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RESEARCH PROPOSAL
TITLE
A study on Effectiveness of promotional activities and customer preferences
in promotional activities
OBJECTIVES
LIMITATIONS
RESEARCH METHODOLOGY
NATURE OF THE RESEARCH
The research will be Explorative as well as Descriptive. The research will
aim at determining the effect of elements of promotions on the consumers
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KFC, Hubballi
DATA COLLECTION
PRIMARY DATA:
The primary data will be obtained through the survey. The survey will
be conducted by means of a questionnaire where respondents were
required to fill in the necessary details.
SECONDARY DATA:
The secondary data will be collected through:
Official Website
Other webpages
Information provided by the store representatives.
MEASUREMENT TECHNIQUES
QUESTIONNAIRE:The primary measurement technique used in this research in
questionnaire. The questionnaire will have questions relating to the promotional
activities done in KFC. The data will be collected by filling the questionnaires by the
customers who visit KFC by personal interview and having informal interactions
about the questions with the customers.
ATTITUDE SCALES: to make the questionnaire attractive and interesting different
attitude scales will be kept in mind and prepare a short and best way to collect info
from the customers. Attitude scales like rating scales, composite scales, perceptual
scales and co joint analysis
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KFC, Hubballi
Sampling aspects
Method : the method adopted for the survey is convenient sampling method
Size : 130 nos
Plan : intercept
Data analysis
All the data collected from primary sources will have to be analysed using
different measurement techniques like
spss-22.0
Microsoft excel 2011
Statistical analysis
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KFC, Hubballi
Chapter IV
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KFC, Hubballi
LITERATURE REVIEW
For centuries sales promotion has been much known. Traders have been used
free samples, money-off and additional price (e.g. two for one) etc. to attract
customers for a long time. (Egan, 2007). American Marketing Association (AMA),
1988 defined the sales promotion as a media and non-media marketing demands
applied for a prearranged, short time in order to stimulate trial and impulse purchases,
increase consumer demand, or improved product quality (Wells et al., 2003).
It has been established in literature that only consumers with repeat purchases
are profitable. It is not every repeat purchase that is connected to consumers
commitment of a brand. However, consumers commitment is important for a repeat
purchase. Therefore, business operators need to develop marketing programmes that
will not only reinforce customers commitment but also encourage repeat purchases.
A part of the functions of sales promotion is not only to reinforce commitment of
consumers but to encourage repeat purchases. Effects of sales promotion on consumer
behaviour have been widely studied in literature .Sales promotion has effects on
various aspects of consumers purchase decisions such as brand choice, purchase
time, quantity and brand switching consumers sensitivity to price However, whether
the effect of consumer loyalty and purchasing behaviour could be moderated by sales
promotions has not yet been examined extensively. Regardless of a widespread
interest in the relationship between sales promotion and purchasing behaviour, most
studies of this kind focus on the effect of sales promotions on choice at the time they
are offered Only a few have investigated the lag effect of sales promotions on brand
preference and the resultant buying behaviour once the promotion campaign is
rescinded. Sales promotions could be in form of monetary and non-monetary ones.
Sales Promotion is needed to create whenever a marketer wants to enhance the
value of its product by offering additional incentive to pay for a brand or product.
Sales promotion is a practice that combining a set of communication tools and
techniques, implemented within the framework of the marketing plan intended by the
firm, in order to persuade among the target groups, and also the acceptance or the
variation of a consuming or purchase behaviour in the short and long term.
K.L.E. Societys College of Business administration, Hubballi.
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KFC, Hubballi
By using sales promotion strategy, extra incentives are offered to consumers,
sales representatives and trade members to take action. Some roles of sales promotion
includes: it provides the product or service additional value and encourage consumer
to respond; supplies the manager immediate outcome results; less costly than
advertising; offers the recent requirements of the customers for getting more value
from the products; and responds to changes of marketplace (Wells et al., 2003).
Sales promotion comprises some strategic role to take part in the promotional
mix. Usually sales promotion is a short-term tactical tool that can be used offensively
to provoke the trial of new products, or defensively for well-known products to keep
shelf space and consumers. Actually sales promotion is oriented to purchaser deals
and temporary price reduction, in particular, do modest to supply to the overall tactic
adopted for an organisation or even manufactured goods (Davis, 1992; OMalley,
1998). So, sales promotion must be a part of an advanced and longer-term approach.
If sales promotion is coordinated with the other performance of the promotional mix,
such as advertising and long-time planning, thenthe proper strategic effect of sales
promotion activities can be achieved (Fill, 2005). The reasons for the effectiveness of
sales promotion strategy include: sales promotion makes it possible one offer to
assemble on the preceding one; set up a stability of communication; enables to be in
touch image and functional values, so sales promotion works harder; it can save time
and money; it is capable to be incorporated with other marketing programme activities
such as advertising, public relation and it offers a better technique to join promotion
(Cummins, 1990).
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KFC, Hubballi
THEORETICAL CONCEPT
Every business organization reaches to the customers through their goods or
services. To sell the products to the customers a number of activities are being
performed, this is called marketing. Marketing is the performance of business
activities that directs the flow of goods and services from producer to the customer. It
is the activity that directs to satisfy the human needs through exchange process.
Marketing starts with the identification of a specific need of customers and ends with
satisfaction of that need. The customer is found in the beginning and end of marketing
process. In marketing a large number of activities are performed these elements are
product, price, promotion and place there are also three additional elements for
services are process, people and physical evidence. These are called elements of
marketing mix. . In sales promotion mainly three parties are involved i.e. consumers,
traders and sales force. Sales promotion refers to many kinds of incentives and
techniques that are directed towards consumers traders and sales force with the
intention to increase sales in short term. Sales promotions include incentive offering
and interest creating activities which are generally short term marketing events other
than advertising, personal selling, publicity and direct marketing.To increase the sale
of any product manufactures or producers adopt different measures like sample, gift,
bonus, and many more. These are known as tools or techniques or methods of sales
promotion.
The main objective of sales promotion is to increase the sales of products in
short term by influencing the behavior of buyers. Sales promotion methods are many
and these are selected as per the target groups. For this purpose, a sales promotion
strategy is to be prepared to achieve the objectives effectively. The strategy is a game
plan that is needed to perform the tasks effectively and get competitive advantages
over others in market. Sales promotion strategy directs the manager in selection of
parties, methods of sales promotion, implementation of methods and measuring
effectiveness of whole efforts regarding sales promotion. In competitive situation, it is
very difficult to increase sales or profit. But with sales promotion strategy sales can be
increased in short term. Strategy is the game plan to achieve the targets as per
planning. It explains what, when, where, who and how to do so that objectives of the
K.L.E. Societys College of Business administration, Hubballi.
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KFC, Hubballi
planning are achieved. Without the strategy the task may not be completed effectively.
Sales promotion strategy would help to neutralize the effective of competition and
defend the company in the market in performing the sales related tasks. The
importance of sales promotion strategy is increasing day by day and in future higher
level of competition it would increase further. Some of the objectives followed by kfc
in increasing the sales promotion are:
The promotion mixes are being used for the promotion of sales of products or
services and may be to develop good image of the business and as a whole company.
The different methods of sales promotion are used collectively. Out of that sales
promotion is also used for these objectives. The objectives may differ from time to
time and from product to product. There is not hard and fast rule that the sales
promotion methods are used only for one objective for all products and every time.
a) To introduce new products: When the company is interested to introduce the
new product in the market the sales promotion method like samples is used. The
free samples of the products are given to the parties for introduction of the
product. If the sample is liked by the customer then the product can be bought in
future.
b) To attract new customers and retain the existing ones: Sales promotion measures
are usedwith the objectives to attract new customers and retain the existing one
by providing extrabenefits. The customers are attracted towards the products
that offers price off, discount, gift,premium prize, etc. on buying. There are
many methods of promotion being used in market sothat the existing customers
can be retained and new can be added to the list of customers.
c) To support other promotional methods drive: The company is interested for
promotion ofthe products, services and business of the company. It is using
different methods of promotion such as advertising, personal selling etc. These
two methods alone may not get the objectives of the company fulfilled. To
support these promotional methods for promotion purpose the sales promotion
can be used. The combined efforts may give better result to the company.
d) To neutralize the competition effect: Nowadays the market situation is very
competitive. It is very difficult to increase the sale of the product because every
competitor is trying hard to increase the sales. Through sales promotion the
extra benefits motivate the customers to buy the products. So to neutralize the
competition effect the company has to bring sales promotion scheme. If not the
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products of the other companies would be sold out more. The company may lose
the opportunity for selling more would be lost.
The business world today is a world of competition. A business cannot survive if
its products do not sell in the market. Thus, all marketing activities are undertaken to
increase sales. Producers may spend a lot on advertising and personal selling. Still the
product may not sell. So incentives Business Studies need to be offered to attract
customers to buy the product. Thus, sales promotion is important to increase the sale
of any product
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Chapter V
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DATA ANALYSIS
Age
Age of the Respondent
Valid
Valid 15-24
25-34
35-44
more than 45
Total
Frequency Percent
114
87.7
12
9.2
2
1.5
2
1.5
130
100.0
Percent
g87.7
9.2
1.5
1.5
100.0
Cumulative
Percent
87.7
96.9
98.5
100.0
OBSERVATIONS
The first observation we make here is that the youths where targeted in this
study.
87.69% of the where in the age group of 15-24.
The total sample size was 130.
Only around 13% of the total sample where others
Gender
Gender of the Respondent
K.L.E. Societys College of Business administration, Hubballi.
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KFC, Hubballi
Valid
Valid Male
Female
Total
Frequency Percent
82
63.1
48
36.9
130
100.0
Percent
63.1
36.9
100.0
Cumulative
Percent
63.1
100.0
OBSERVATIONS
The sample was divided among 2 categories i.e. male and female
63.08% of the total sample was filled by males
While the other 36.92% was filled by females
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You are a
Occupation of the Respondent
Valid
Valid student
Office
self-employed
business executive
professional
others
Total
Frequency Percent
113
86.9
4
3.1
4
3.1
1
.8
6
4.6
2
1.5
130
100.0
Cumulative
Percent
86.9
3.1
3.1
.8
4.6
1.5
100.0
Percent
86.9
90.0
93.1
93.8
98.5
100.0
OBSERVATIONS
Students were the major respondents as, KFC is a good hangout place for
Percent
97.7
100.0
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OBSERVATIONS
INTERPRETATION:
Most of the people visit fast food chains. And are addicted to fast foods.
2. Which is the first fast food chain that comes in your mind when you want to visit?
What is the first fast food chain that comes to the respondents mind
when they want to visit
K.L.E. Societys College of Business administration, Hubballi.
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Valid
Valid Kfc
McD
dominos
others
Total
Frequency Percent
77
59.2
24
18.5
25
19.2
4
3.1
130
100.0
Cumulative
Percent
59.2
18.5
19.2
3.1
100.0
Percent
59.2
77.7
96.9
100.0
OBSERVATIONS
It was observed that most of the respondents preferred KFC over any other
TV
paper adds
heard of it
8.5
17.7
hoarding
adds internet s
kfc
awarnes
s
46.2
8.5
30.8
7.7
4.6
yes
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KFC, Hubballi
53.8
no
91.5
91.5
82.3
69.2
92.3
95.4
kfc awarness
kfc awarness yes
46.2
30.8
17.7
8.5
8.5
7.7
4.6
OBSERVATIONS
yes
11.5
menu
24.6
ambienc
customer
atmospher
service
5.4
2.3
servic
taste
10.0
59.2
offers
6.9
e
.8
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KFC, Hubballi
no
88.5
75.4
94.6
97.7
90.0
40.8
93.1
99.2
visit kfc
visit kfc yes
59.2
24.6
11.5
5.4
2.3
10.0
6.9
0.8
OBSERVATIONS:
Page
KFC, Hubballi
Frequency Percent
2
1.5
Cumulative
Percent
1.5
Percent
1.5
5.4
5.4
6.9
47
31
43
130
36.2
23.8
33.1
100.0
36.2
23.8
33.1
100.0
43.1
66.9
100.0
OBSERVATIONS
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KFC, Hubballi
How long has the respondent been visiting kfc
Valid
Cumulative
Valid
3 months
1 year
6 months
more than a
Frequency Percent
27
20.8
24
18.5
16
12.3
year
Total
Missing System
Total
Percent
21.4
19.0
12.7
Percent
21.4
40.5
53.2
100.0
59
45.4
46.8
126
4
130
96.9
3.1
100.0
100.0
OBSERVATIONS
Percent
Percent
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KFC, Hubballi
Valid Family
Colleagues
Friends
Others
Total
25
5
96
4
130
19.2
3.8
73.8
3.1
100.0
19.2
3.8
73.8
3.1
100.0
19.2
23.1
96.9
100.0
OBSERVATIONS
Friends are the main reason that the respondents visit kfc
19.23% of the people visit kfc because of their family
The rest 3.85% and 3.08% visit KFC due to colleagues and other reasons
respectively
Yes
sometimes
No
Total
Frequency Percent
80
61.5
28
21.5
20
15.4
128
98.5
Percent
62.5
21.9
15.6
100.0
Percent
62.5
84.4
100.0
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KFC, Hubballi
Missing System
Total
2
130
1.5
100.0
OBSERVATIONS
effective
15.63% of the respondents feel that the advertisements are not effective
9. How would you rate on a scale of 1-5? (1 being the least 5 being highest)
a) The overall quality of KFC relationship with customers, considering all of sales
promotion strategies employed
Quality of KFC relationship
Valid
Frequency
Valid
least
Low
neutral
High
highest
Total
9
10
43
46
17
125
Percent
6.9
7.7
33.1
35.4
13.1
96.2
Percent
7.2
8.0
34.4
36.8
13.6
100.0
Cumulative
Percent
7.2
15.2
49.6
86.4
100.0
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KFC, Hubballi
Missing System
Total
5
130
3.8
100.0
OBSERVATIONS
b) Your level of overall satisfaction with sales promotion strategies used by KFC?
Level of satisfaction with sales promotion
Valid
Cumulative
Valid
least
Low
neutral
high
highest
Total
Missing System
Total
Frequency Percent
3
2.3
19
14.6
32
24.6
48
36.9
20
15.4
122
93.8
8
6.2
130
100.0
Percent
2.5
15.6
26.2
39.3
16.4
100.0
Percent
2.5
18.0
44.3
83.6
100.0
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KFC, Hubballi
OBSERVATION
It is been observed that 39.34% of the people are satisfied with the sales
10. Which of the food joint do you prefer the most and why?
Which food joint does the respondent prefer the most
Valid
Cumulative
Valid
kfc
mcd
dominos
Total
Missing System
Total
Frequency Percent
80
61.5
20
15.4
27
20.8
127
97.7
3
2.3
130
100.0
Percent
63.0
15.7
21.3
100.0
Percent
63.0
78.7
100.0
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KFC, Hubballi
Research has found that 62.99% of the total sample prefer KFC over
INTERPRETATION:
The research says that most of the people prefer KFC for hanging out over dominos
and McD.
11. What according to you is the unique selling preposition of KFC?
What is the USP of kfc according to the respondent
Valid
Cumulative
Frequency Percent
Percent
Percent
Valid
Price
14
10.8
11.1
11.1
Location
13
10.0
10.3
21.4
Ambiance
7
5.4
5.6
27.0
customer service
8
6.2
6.3
33.3
Menu
9
6.9
7.1
40.5
atmosphere
9
6.9
7.1
47.6
Taste
54
41.5
42.9
90.5
Offers
9
6.9
7.1
97.6
quick service
3
2.3
2.4
100.0
Total
126
96.9
100.0
Missing System
4
3.1
Total
130
100.0
K.L.E. Societys College of Business administration, Hubballi.
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KFC, Hubballi
OBSERVATION
42.86% of the total sample said that taste was the USP of KFC
Price being the second choice ,11.11% said so
10.32% said it was location
INTERPRETATION:
The USP of KFC is its taste. People prefer the taste of KFC and often visit
there.
12. Does the packaging play any role in the buying of the food?
Does the packaging play any role to the respondent in buying of food
Valid
Cumulative
Valid
yes
no
Total
Missing System
Total
Frequency Percent
103
79.2
24
18.5
127
97.7
3
2.3
130
100.0
Percent
81.1
18.9
100.0
Percent
81.1
100.0
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KFC, Hubballi
81.10% of the respondents agreed that packaging plays a role in buying food
18.90% said no.
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KFC, Hubballi
13. A) Are you aware of the sales promotion programme of KFC?
yes
no
Total
Missing System
Total
Frequency Percent
70
53.8
56
43.1
126
96.9
4
3.1
130
100.0
Percent
55.6
44.4
100.0
Percent
55.6
100.0
OBSERVATION
55.56% of the total respondents said that they were aware of the sales
b) If yes does the sales promotion of KFC incline you to come back?
if yes does it incline the respondent to come back
K.L.E. Societys College of Business administration, Hubballi.
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KFC, Hubballi
Valid
Valid
Yes
maybe
No
Total
Missing System
Total
Frequency Percent
42
32.3
21
16.2
6
4.6
69
53.1
61
46.9
130
100.0
Percent
60.9
30.4
8.7
100.0
Cumulative
Percent
60.9
91.3
100.0
OBSERVATION
60.87% of the total respondents who said that they were aware of the sales
programme said that it inclines them to come back to kfc.
8.70% said it doesnt incline them to come back.
14. Is the price of the promotion items of KFC realistic, compared to other fast food
restaurants?
does the price of the promotion items feel realistic to the respondent
Valid
Cumulative
Frequency Percent
Percent
Percent
Valid
highly dis5
3.8
4.3
4.3
satisfactory
K.L.E. Societys College of Business administration, Hubballi.
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KFC, Hubballi
dis-satisfactory
Neutral
Satisfactory
highly satisfactory
Total
Missing System
Total
12
29
27
43
116
14
130
9.2
22.3
20.8
33.1
89.2
10.8
100.0
10.3
25.0
23.3
37.1
100.0
14.7
39.7
62.9
100.0
OBSERVATION
37.07 % of the total respondents said that they were highly satisfied with the
price of the promotion compared to the other fast food chains
25.00% of the people neither agreed nor disagreed with it
4.31% said that the price of promotion was highly dissatisfactory.
15. What is the most important reason to eat in KFC for you?
What is the most imp reason that the respondent feels to eat at kfc
Valid
Cumulative
Frequency Percent
Percent
Percent
Valid
price
13
10.0
10.2
10.2
brand
10
7.7
7.8
18.0
product
8
6.2
6.3
24.2
taste
64
49.2
50.0
74.2
uniqueness
8
6.2
6.3
80.5
quality
17
13.1
13.3
93.8
promotion
1
.8
.8
94.5
menu
3
2.3
2.3
96.9
others
4
3.1
3.1
100.0
K.L.E. Societys College of Business administration, Hubballi.
Page
KFC, Hubballi
Total
Missing System
Total
128
2
130
98.5
1.5
100.0
100.0
OBSERVATION
Half of the population (50.00%) said that the most important reason they feel
17. The influence group who become the driving force behind the consumers to force
them to visit the stores.
What is the influence group that forces the respondent to visit kfc
Valid
Cumulative
Frequency Percent
Percent
Percent
Valid
self
22
16.9
17.2
17.2
friends
88
67.7
68.8
85.9
advertisements
4
3.1
3.1
89.1
spouse
4
3.1
3.1
92.2
colleagues
6
4.6
4.7
96.9
others
4
3.1
3.1
100.0
Total
128
98.5
100.0
Missing System
2
1.5
Total
130
100.0
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KFC, Hubballi
OBSERVATION
68.75% of the respondents said that the friends group forces them to revisit
KFC
17.19% said that the revisit KFC on their own
4.69% said it was their colleagues who influence them to revisit
The rest 3.13% each, said that it was due to advertisements, spouse and other
reasons
18. How likely are you to purchase food from KFC in the next 30 days?
How likely is the respondent to purchase food from kfc in next 30 days
Valid
Cumulative
Frequency Percent
Percent
Percent
Valid
very
41
31.5
32.3
32.3
likely
likely
50
38.5
39.4
71.7
maybe
21
16.2
16.5
88.2
less likely
13
10.0
10.2
98.4
not at all
2
1.5
1.6
100.0
Total
127
97.7
100.0
Missing System
3
2.3
Total
130
100.0
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KFC, Hubballi
OBSERVATION
32.26% of the total sample said that they were very likely to purchase food
20. Out of your last 3 visits to fast food chains how many where KFC?
Out of last three visits to fast food chains how many where kfc
Valid
Cumulative
Frequency Percent
Percent
Percent
Valid
once
53
40.8
41.1
41.1
twice
34
26.2
26.4
67.4
thrice
27
20.8
20.9
88.4
none
15
11.5
11.6
100.0
Total
129
99.2
100.0
Missing System
1
.8
Total
130
100.0
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KFC, Hubballi
OBSERVATION
Out of the last three visit to fast food chains , 41.09% said that they visited
KFC once
26.36% out of three two visits were to KFC
20.93% said that all the three visits were to KFC
11.63% said that they did not visit even once to KFC in their last three visit to
fast food chains.
Percent
33.1
66.9
100.0
Cumulative
Percent
33.1
100.0
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KFC, Hubballi
OBSERVATION
Out of 130 respondents 66.93% of the people said that they prefer Non-veg
33.07% respondents preferred veg
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KFC, Hubballi
Chapter VI
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KFC, Hubballi
CO-RELATION
What is the first fast food chain that comes to the respondents mind when they want to
visit * what is the most imp reason that the respondent feels to eat at kfc
Symmetric Measures
Asymp. Std.
Value
Interval by
Pearson's R
Interval
Ordinal by
Spearman
Approx.
Approx.
Tb
Sig.
Errora
.227
.091
2.614
.010c
.145
.088
1.643
.103c
Ordinal
Correlation
N of Valid Cases
128
a. Not assuming the null hypothesis.
b. Using the asymptotic standard error assuming the null hypothesis.
c. Based on normal approximation.
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KFC, Hubballi
FINDINGS
The main customers who come to kfc are students, around 60% of the
people
Major reason for awareness about KFC is due to friends
The main reason the respondent visit kfc is because of the taste
46.83% of the total crowd has been visiting KFC over a year
Friends are the main reason that the respondents visit kfc
62.50% of the respondents find the advertisements effective
62.99% of the total sample prefer KFC over Dominos and McD.
42.86% of the total sample said that taste was the USP of KFC
37.07 % of the total respondents said that they were highly satisfied with the
KFC once
26.36% out of three two visits were to KFC
20.93% said that all the three visits were to KFC
32.26% of the total sample said that they were very likely to purchase food
from KFC in the next 30 days and 39.37% said they were likely to purchase
SUGGESSIONS
WITH RESPECT TO CUSTOMERS VIEW FROM KFC
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KFC, Hubballi
The billing services should be fast, all the four counters should be used for billing
There should me more options for vegetarian people, the menu must increase for
veg options
There should be working Wi-Fi in area
Home delivery services should start
Offers should increase
More time is consumed in delivering the order
Cleanliness should be taken care of
Drinking water facilities should be provided
The order should be delivered to the customer instead of self service
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KFC, Hubballi
CONCLUSION
Sale promotion plays a vital role for the dealers and retailers in the marketing
programs. Sales Promotion generates large revenues and by using promotional tools
sales can be increased. Various promotional techniques are used by the marketers in
order to offer customers an additional incentive to purchase their products and then
promotion in typical means. This research supported by the research from Cuizon
(2009) who stated that sales promotions are not only effective in attaining short-term
sales as they are also more cost-effective compared to other integrated marketing
communications tools such as advertising. The overall conclusion of this research is
we found positive customers attitude towards diverse promotion tools on buying
behavior
The result of this study gave some important knowledge about impact of
promotional tools on consumer buying behavior. With respect to customer proneness
to sale promotion, research found that Price Discount, Physical Surroundings and
Buy-One-Get-One-Free played the greatest significant role in developing consumerbuying behavior. People are highly satisfied with the pricing promotions when
compared to other fast food chains. People are also prone to KFC because of taste,
hygiene, price and other offers which are provided.
Lastly we conclude that, KFC has to start with Table service facility because
the respondents are not happy with the self-service and they have to wait for more
time in the queue.
As a consequence of the research work it has been found that there is
great impact of sales promotion on sales of the at KFC.
Overall the study reveals that KFC is good in promoting its sales and new
products.
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KFC, Hubballi
BIBLOGRAPHY
I. Internal sources from kfc
http://www.yum.com
II. Websites
http://www.ibef.org/pages/indian-food-industry
http://www.ibef.org/download/FoodProcessing_sectoral.pdf
http://www.ibef.org/download/Food-Processing-August-15.pdf
http://www.ibef.org/download/Food-Processing-August-2014.pdf
https://www.irs.gov/Businesses/Food-Industry-Overview---History-of-Food-
Industry
http://www.ibef.org/industry/indian-food-industry.aspx
https://en.wikipedia.org/wiki/Sales_promotion
http://www.scribd.com/doc/23243109/project-on-kfc#scribd
http://www.businessenglishmaterials.com/kfc.pdf
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KFC, Hubballi
Chapter VII
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KFC, Hubballi
ANNEXURE (QUESTIONNAIRE)
Dear respondent,
I am pleased to introduce myself as Miss.Lavanya M Tambad, conducting a survey as
a part of my academic curriculum studying final year BBA in marketing specialization
at KLE college of Business Administration. The topic is titled: effectiveness of
promotional activities and customer preference in promotional activities .Your
response will be dealt with strict confidentiality and it will be used only for academic
purpose. Thank you for spending your valuable time to fill this questionnaire. Your
feedback is appreciated.
Name: ____________________________
Age
15-25
25-35
35-45
More than 45
Male
Female
Student
Business Executive
Office
Professional
Self-employed
Others
Gender
You are a
Contact: _____________________
1. Do you visit fast food chains?
Yes
No
2. Which is the first fast food chain that comes in your mind when you want to visit?
KFC
Dominos
Mc D
Others
Tv Adds
Family
Internet
Paper advertisements
Hoardings/Billboards
Heard of it
K.L.E. Societys College of Business administration, Hubballi.
Page
KFC, Hubballi
4. What made you visit KFC?
Price
Atmosphere
Menu
Taste
Ambiance
Offers
Quick service
Once a week
Once in a fortnight
Once a month
Rarely
6. How long have you been visiting KFC?
3 moths
6months
1 year
Friends
Colleagues
Others
No
Sometimes
9. How would you rate on a scale of 1-5?(1 being the least 5 being highest)
a) The overall quality of KFC relationship with customers, considering all of sales
promotion strategies employed
1
-------------------------------------------------------------------------b) Your level of overall satisfaction with sales promotion strategies used by KFC?
1
-------------------------------------------------------------------------10. Which of the food joint do you prefer the most and why?
KFC
MCD
DOMINOS
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KFC, Hubballi
11. What according to you is the unique selling preposition of KFC?
Price
Atmosphere
Location
Taste
Ambiance
Offers
Quick service
Menu
12. Does the packaging play any role in the buying of the food?
Yes
No
No
b) If yes does the sales promotion of KFC incline you to come back?
Yes
No
Maybe
14. Is the price of the promotion items of KFC is realistic compared to other fast food
restaurants?
------------------------------------------------------------------------Highly Satisfactory
Highly Dissatisfactory
15. What is the most important reason to eat in KFC for you?
Price
quality
Brand
Promotion
Product
Menu
Taste
Ambience
Uniqueness
Others
Spouse
Friends
Colleagues
Advertisements
Others
18. How likely are you to purchase food from KFC in the next 30 days?
Very likely
Less likely
Likely
Not at all
Maybe
K.L.E. Societys College of Business administration, Hubballi.
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KFC, Hubballi
19. What services would you like to improve at KFC?
_______________________________________________________
_______________________________________________________
20. Out of your last 3 visits to fast food chains how many where KFC?
Once
Twice
Thrice
None
Non-veg
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KFC, Hubballi
CODING SHEET
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