CUSTOMER PERCEPTION OF KFC IN BHILAI

Table Of Contents

 Acknowledgement.....

 Introduction.....

 Historical Background.....

 Problems Faced In India.....

 Re-entry Of KFC.....

 Strenghts.....

 Opportunities.....

 Threats.....

 Products Of KFC.....
 ACKNOWLEDGEMENT

A project can never become a success with efforts of only one individual.
It requires a group of people to complete a project at its best. And it’s my friends, my
teacher and my family member who have helped me to complete my project report.
The present work is just an effort to throw some light on “KFC”.
The work would not
have been possible to come to the present shape without the guidance, supervision
and help of number of people. With deep sense of gratitude I acknowledge the
encouragement and guidance received from K.L. RATHI and other staff members.
I convey my heartfelt thanks to all those people who helped and supported
me during the course, of completion of my Project Report.

DATE POOJA RAI

INTRODUCTION ……
KFC Corporation, or KFC, founded and also known as
Kentucky Fried Chicken
is a c h a i n o f fast food restaurantsb a s e d
i n Louisville, Kentucky.

KFC primarily sells chicken in form of

pieces,wraps, salads Sandsandwiches.While
its primary focus is fried chicken, KFC also
offers a line of roasted chicken
products, sidedishes and desserts. Outside
North America, K F C o ff e r s b e e f
b a s e d p r o d u c t s s u c h a s hamburgers or
kebabs, pork based products such as ribs and
other regional fare.

The company was founded as Kentucky Fried

C h i c k e n b y C o l o n e l H a r l a n d S a n d e r s in 1 9 5 2 .
 HISTORICAL BACKGROUND

Harland Sanders was born in 1890 and raised on a farm outside Henryville, Indiana
(nearLouisville, Kentucky).When Sanders was five years old, his father died, forcing
his mother to work at a canning plant.

This left Sanders, as the eldest son, to care for his two younger siblings.After he
reached seven years of age, his mother taught him how to cook. After leaving the
family home at the age of 13, Sanders passed through several professions, with mixed
success.

Sanders was unhappy with the 35 minutes it took to prepare his chicken in an iron
frying pan, but he refused todeep fry the chicken, which he believed lowered the
quality of the product.
If he pre-cooked the chicken in advance of orders, there was
sometimes wastage at day's end. In 1939, the first commercial pressure cookers were
released onto the market, mostly designed for steaming vegetables.

Sanders bought one, and modified it into a pressure fryer, which he then used to fry
chicken. The new method reduced production time to be comparable with deep
frying, while, in the opinion of Sanders, retaining the quality of pan-fried chicken.

In July 1940, Sanders finalised what came to be known as his "Original Recipe" of 11
herbs and spices. Although he never publicly revealed the recipe.
By 1964, Colonel had 600 franchise outlets for his chicken across the United States
and Canada. KFC now stretches worldwide with more than 13,000 restaurants in
more than 80 countries and territories

PROBLEMS FACED IN INDIA

KFC entered India in 1995, The regulatory authorities found that KFC's chickens did
not adhere to the Prevention of Food Adulteration Act, 1954.

KFC faced severe protests by People for Ethical Treatment of Animals (PETA), an
animal rights protection organization.

PETA accused KFC of cruelty towards chickens and released a video tape showing
the ill-treatment of birds in KFC's poultry farms.

However, undeterred by the protests by PETA and other animal rights organizations,
KFC planned a massive expansion program in India.

Why doesn't KFC use healthier oil?: the oil does have dangerous trans-fatty acids.
Is KFC's food really that unhealthy?: a three-piece extracrispy combo meal contains
as much as 15 g of Trans fat--more than a person should ingest in a week.

What are other chains doing?: the Cheesecake Factory is doing so already,
McDonald's backpedaled on a promise to cut Trans fats and says it's studying
alternative oils, as is Burger King.

Protests by farmers led by the Karnataka Rajya Ryote Sangha(KRRS) & the farmers
leader was Nanjundaswamy who used the term ‘junk food’ against KFC.
And it is Protested by cultural & Economic activists also Support by celebrities in
against of KFC.

The company had to shut all but one outlet in the country. Recently in 2003 it made a
quiet re-entry into the Indian market. Came up with the strategies and menu that is
desirable by the Indian consumers.
 GOALS OF KFC

Kentucky Fried Chicken has many goals , most of which include bettering themselves
as a company. The company's main goal is to provide good food for customers that
puts a smile on their faces, and makes them want to come back for more.

Another of one of KFC's goals is to put a smile on the worlds face, by continuing to
expand the KFC empire. Customer satisfaction is another key goal KFC has, and
another way they try to put a smile on their customers faces.

Kentucky Fried Chicken strives to be the best in the business and they do their best to
satisfy all customers. They have made healthier options avaliable on the menu hence
the appearance of "Kentucky Grilled Chicken".
KFC became a multinational corporation because the expansion of the company was
coming along so fast that Mr. Brown decided to move out of the country and expand
to North America and in 1970 they went across seas and expanded to Malaysia. The
expansion to Malaysia triggered other countries to demand KFC. As the demand grew
KFC expanded placing KFC restaurants worldwide.

STRENGHTS

KFC's secret recipe: the "secret recipe" was the initial home replacement strategy.
Name recognition and reputation: the KFC logo was the only one which significantly
enhance the brand's image.

Conflicting cultures of KFC and Pepsi Co. Turnover in top management.

Recent contractual disputes with franchisees in the United States.

KFC is the market leader in the world among companies featuring chicken as their
primary product offering.

Global Presence: KFC is the world’s 2nd largest restaurant chain with more than
18,000 KFC outlets in 120 countries and territories around the world. It is market
leader in Non-veg food joints categories in majority of countries it is in.

Strong parent company: It is the subsidiary of Yum Brands, a restaurant company

that also owns the Pizza Hut and Taco Bell Yum! Brands, the fortune 500 company, is
one of the world’s largest fast food restaurant companies in terms of system units—
more than 41,000 restaurants around the world in over 125 countries & it help
individual brands in optimizing its resource usage.

Veg & Non veg offerings: Although KFC is known for its finger licking Chickens
menu but recently they ventured out in Vegetarian category which is helping them in
increasing their business & attracting both veg & non-veg preferred customers.

Secret Recipe: Sanders’ Original Recipe of “11 herbs and spices” is one of the most famous
trade secrets in the catering industry. A copy of the recipe, signed by Sanders, is held inside
a safe inside a vault in KFC’s Louisville headquarters, along with eleven vials containing
the herbs and spices.

OPPORTUNITIES

Market expansion : Emerging economies and their changing lifestyle resulting into
more of outings with family/friends, corporate parties will result in the high growth
of the industry. Furthermore, the presence and popularity of McDonalds is anytime
more daunting for KFC.

Specializing into vegetarian Menu: Although KFC recently entered in vegetarian

fast food category but they have limited menu items as compared to other chains like
Subway Pizza-hut, Mac Donald’s, who are already an established player in the
segment. So specializing into Veg. items like they have in Non-Veg will help the
company in its overall global growth.

Rise in health conscious population: Designing its menu for the health conscious
population will be the driving force for the whole industry in the future because due
to changing lifestyle people are getting less time for themselves due to which health
issues are raising.

Penetration: Strengthening its outlet network by further penetrating the current

market will help KFC in increasing its revenues & become no.1 player in fast food
chain market given that now they have presence in both Veg. & Non-Veg. menu in
the selected market.

Large Youth population: India has a very large share of youth population a compared
to other countries. New variety: Company can also come up with new variety in the
menu likePizzas, garlic breads to attract more customers.
 THREATS

Competition: KFC is not a leader in the fast food chain industry so it has to compete
with all other well established fast food companies who all are flourishing in the
market.

Changing Consumer Eating habits: With government & NGO’s health awareness
campaigns people are becoming more aware of what to consume & what to not which
is affecting the business of fast food Industry as a whole.

Raw Material prices: Rise in the raw material prices may affect the industry, of
which KFC business is not an exception.

Closure of current Franchisees: Rise in

channel conflict resulting into closing of the
franchisees is affecting its brand image &
resulting into negative word of mouth.
Organizations like PETA People for Ethnic
Treatment for Animals have given a bad name
to the company

Saturated US Market: Now KFC cannot rely on just its home market to generate
sales. As the US markets are already saturated and leave no or little scope for growth
 CONCLUSION

Finally, we can understand from the case that every business organization should
understand the importance of ethics by understanding the culture, regulatory &
ecological issues in different countries.

KFC should implement a farm level guideline audit program & a program which is
industry- leading in the areas of poultry care and handling, mainly for their suppliers
in the broiler industry.

KFC is one the world's top famous and loved brands today. KFC has a rank of 239
inthe fortune 500 list, with revenue excess $11 billion, however, this would not
havebeen possible without its HRM practices, especially in the motivation programs.

As we analyzed above, KFC has used these theories to improve the motivation
ofemployees: goal setting theory, self-efficacy theory, expectancy theory,
jobengagement, job characteristics model, and reward and benefits. We also applied
eachof these theories with several examples in KFC. In addition, we explained
several theories with branches.

In the goal setting theory, KFC managers encourage employees set specific
anddifficult goals and feedback to lead a higher performance. They also believe
thatnational culture can be one of the factors that influence the goal -
performancerelationship.
 ABSTRACT

As we were given a task to prepare a project report over a topic, on any company in
India and describing its marketing mix strategies, SWOT and PEST analysis and its
leading strategies. We gone through different web sites, books, and other resources
which also include our visits to the head office of the KFC to gather information
regarding this topic, we hope that this work will attract your attention.

We divided our presentation in three categories, prefatory section, introduction &

conclusion, and body; we have done all the work with mutual understanding and
consensus and divide these categories among our group members so that working on
individual categories give effectiveness to our presentation. Six weeks of effort was
devoted for collection and designing of data which enable us to produce this report.

The main motive behind our report is to provide guide lines to the audience about the
marketing mix and different strategies followed by KFC in our country and detail of
those guide lines are precisely stated in executive summary, consensus also appeared
for the three criteria we used for evaluating our report e.g. effectiveness, information
and fairness.

We hope that you will encourage our effort, We are grateful to your guidance,
stimulating suggestions and encouragement which has helped us all the time of
research for and writing of this report. And we hope that we will be awarded a fair
amount of appreciation from you.