Report On

Identify Product features of KFC which

satisfy the need of consumer most in any
segment Primary research

Jain (Deemed to be) University

MBA (Marketing)
Section – B
4th Semester

Soumyajit Majumder (18MBARB161)

Hemant Kumar (18MBARB138)
Sami Wisal (18MBARB154)
Murtaza Ramzan (18MBARB148)
Jami Ashish (18MBARB110)
Akahat Manoj Patnaha (18MBARB107)
 Project Report

On

Chapter No # 1st

Introduction

Department of Business Administration

Jain University
karnataka
 Introduction of Company

KFC Corporation, based in Louisville, Kentucky, is the world’s most popular chicken restaurant
chain, specializing in Original Recipe ®, Extra Crispy TM, and Colonel’s Crispy Strips®
chicken with home style sides and five new freshly made sandwiches. Every day, nearly eight
million customers are served around the world. KFC’s menu everywhere includes Original
Recipe® chicken—made with the same great taste Colonel Harland Sanders created more than a
half-century ago. Customers around the globe also enjoy more than 300 other products—from a
Chunky Chicken Pot Pie in the United States to a salmon sandwich in Japan.

KFC continues reaching out to customers with home delivery in more than 300 restaurants in the
United States and several other countries. And in quite a few U.S. cities, KFC is teaming up with
other restaurants, Taco Bell and Pizza Hut, selling nearly fifty years ago; Colonel Sanders
invented what is now called “home meal replacement” – selling complete meals to harried, time-
strapped families. He called it, “Sunday Dinner, Seven Days a Week.”

Today, the Colonel’s spirit and heritage are reflected in KFC’s brand identity – the logo features
Colonel Harland Sanders, one of the best recognized icons in the world.

KFC specialized in chicken and they says,

“No body’s cooking like KFC today and we are

the chicken experts”
“There is no competitor for spicy chicken which is
made by KFC”

Introducing New Product

Louisville-based Kentucky Fried Chicken (KFC) which is run by Yum! Restaurants in India, has
launched all-new KFC Chizza.;
New Chizza with crispy toppings, yummy molten cheese, signature pizza sauce but no crust only
a piece of real chicken as the base. Flavored with condiments like oregano and chilli flakes, the
Chizza is a chicken lover's dream come true.
Chizza is already available across all KFC stores in India
Rs 169/- only

Kfc chizza launch and campaigns

KFC has launched a cross channel campaign to promote its new food mash-up Chizza, which
combined fried chicken and pizza. Ogilvy & Mather is the creative agency on the account, while
Mindshare Singapore is its media agency.

The campaign runs on digital and social with executions running on YouTube and Yahoo and
various other digital platforms. However, there is also a traditional media component where ads
are being run on OOH platforms and print media.

According to KFC, the product is not new to KFC and was previously launched in other markets
such as Philippines, Thailand, Taiwan, Korea, Japan and India.
To promote the event, KFC also did a food tasting and hosting session with key opinion leaders
taking part in the campaign, such as Xiaxue, Ladyironchef and Mongchin Yeoh to name a few

The New Year is round the corner and so is loads of excitement for KFC lovers with the launch
of the all-new KFC Chizza. The most extraordinary thing ever to happen to KFC’s signature hot
and crispy chicken fillet is the all NEW CHIZZA with crispy toppings, yummy molten cheese,
signature pizza sauce but “no crust!” Only 100% real chicken as the base . Flavored with
condiments like oregano and chilli flakes, the Chizza is a chicken lover’s dream come true.
Commenting on the launch of the product, Rahul Shinde, General Manager, KFC India said: “At
KFC, it has been our constant Endeavour to offer customers something new, exciting and crave
able; the Chizza is all that and much more. We are definitely excited to launch this product in the
Indian market and cannot wait to see the excitement of our customers. The idea was to come up
with something innovative, while sticking to our core of fried chicken. And Chizza offers
chicken lovers the taste of our signature Hot and Crispy chicken in the most innovative format
ever. We truly hope that our customers love this brand new innovation from KFC.”

Pricing

Pricing Policy for “Chizza” new product from KFC

Manufacturing cost RS.80/-

5% marketing cost (Per. Unit) RS. 50/-

Total cost RS.130/-

15% G.S.T +15% RETAIL MARGIN RS.39/-

Total retail Price RS.169/-

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 that is why they expanding their
branches in all over the world.

They want to increase their profit through giving maximum satisfaction & other better facilities
to people that they want. Now after catching such a marvelous position in the International
Market, KFC is introducing a new item “Boneless Fried Chicken”, with even more attractive and
charming taste.

Company’s 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
colonel’s “finger lickin’ good” chicken dinners are served annually. And not just in America.
The colonel’s 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 conductor in New
Albany, Ind., and then as a 16-yearold private, soldiering for six months in Cuba.

After that he was a railroad fireman, studied law by correspondence, practiced in justice 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 travelers who stopped at
his service station in Corbin, KY. He didn’t 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.

KFC India
KFC is the world’s No.1 Chicken QSR and has industry leading stature across many countries
like UK, Australia, South Africa, China, USA, Indi, Malaysia and many more.

KFC, the world’s largest chicken restaurant chain, set its sights on one of the largest markets in
the world, that is India with a population of 1.1 billion, the company will have good prospects for
organic growth, say analysts.52 KFC outlets currently operating in the whole of India (under
other local franchisees), Sandeep Kohli, managing director (Indian subcontinent) of Yum!
Restaurants International (YRI), whose flagship brand is KFC, said “We plan to expand to
wherever our customers are and there is no limit to our expansion”.
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.

 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.
 Situational Analysis

Current Products at Kentucky fried chicken

· Zinger burger
· Krushers
· GameBox
· Twister
· Boxmaster
· Chicken Bucket
· Hot wings
· Fries
· Corn on the cob
· Zing Kong
· Snacker(chicken & veggie)
· Veggie Feast
· Soft Drink
· Coleslaw
· Chicken Thali
· Veg Finger
· Snack Box
· Sundae
· Soft Twirl
· Brownie Sundae
KFC Original Recipe

6 cups Crisco Shortening

1 eggs well beaten
2 cups Milk
2 cups Flour
2 teaspoons ground pepper
3 tablespoons salt
1 teaspoon MSG
1/8 teaspoon Garlic Powder
1 dash paprika
2 Frying Chickens cut into 6 pieces
Place shortening into the pressure cooker and heat over medium heat to the shortening reaches
400F. In a small bowl, combine the egg and milk. In a separate bowl, combine the remaining six
dry ingredients. Dip each piece of chicken into the milk until fully moistened. Roll the moistened
chicken in the flour mixture until well coated. In groups of four or five, drop the covered chicken
pieces into the shortening and lock the lid. When pressure builds
up cook for 10 minutes.
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.
 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 India 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.

Project Report

On

Chapter No # 2
 competition

Department of Business Administration

Jain University
karnataka

Competition
POPEYES:

Popeyes is an American multinational chain of fried chicken fast food restaurant and is the
second-largest “quick-service chicken restaurant group, measured by a number of units”, after
KFC.
There are more than 2,600 Popeyes restaurants in more than 40 states and the District of
Columbia, Puerto Rico, and 30 countries worldwide. Out of the lot, about thirty locations are
company-owned, the nearest franchised Mcdonalds.

Apart from chicken dishes served in mild and spicy flavors, Popeyes also offers fried chicken,
Chichen-and-sausage jambalaya and po’boy sandwiches. Just like Jack in the Box, Popeyes also
tries to experiment with its menu and introduces new items seasonally. The restaurant also offers
meal combos and value meal packs to its customers. The menu of Popeyes is very much of the
same lines as of KFC’s which makes it one of the main competitors of KFC.

MCDONALD’S:
Another American fast food company that gives KFC a run for its money is McDonald’s.
Considered as the world’s largest restaurant chain by revenue, McDonald’s serves over 69
million customers daily in over 100 countries across approx 36,900 outlets as of 2016.

Although known for its hamburgers, cheeseburgers and french fries, McDonald’s also feature
chicken products, breakfast items, soft drinks, milkshakes, wraps, and desserts.

McDonald’s predominantly sells hamburgers, various types of chicken, chicken sandwiches,

French fries, soft drinks, breakfast items, and desserts.

The company changes its menu and tries to bring in the localized flavor depending on the market
they are operating in ( For example: In India, McDonald’s lay much more emphasis on offering
vegetarian food options because of a high proportion of vegetarian people)

McDonald’s also cater to health-conscious customers by adding salads, fish, smoothies, and
fruits to its menu.

BURGER KING:

With over 15,243 outlets in 100 countries, Burger King (BK) is an American global chain of
hamburger fast food restaurants .Headquartered in the unincorporated area of Miami-Dade
County, Florida.

From just offering burgers, French fries, sodas, and milkshakes, Burger King expanded its menu
to a larger and more diverse set of products. In 1957, the “Whopper” became the first major
addition to the menu, and it has become Burger King’s signature product since.

All these years, the Whopper has become synonymous with Burger King and also became the
focus of much of its advertising. The company even named its new kiosk-style restaurants
Whopper Bars.

With the expansion of Burger King, both inside and outside the US, it introduced localized
versions of its products that conform to regional tastes and cultural or religious beliefs, for
example, adding halal in the Middle East and Israel or beetroot and fried egg to the Whopper in
Germany, Italy, and Spain.

WENDY’S:

Founded by Dave Thomas on November 15, 1969, in Columbus, Ohio, as of 2016, Wendy’s
became the world’s third largest hamburger fast food chain with 6,500+ locations, following
Burger King and McDonald’s.

Best known for its square hamburgers, Wendy’s menu consists primarily of hamburgers, chicken
sandwiches, French fries, and beverages such as the Frosty.
Just like other competitors, Wendy’s also experiments with its menu and bring in the required
changes that suit the local regional tastes.

Brand price(in Rs)

Domino's 134
Mc donald 200
KFC 169
Burger King 159
Subway 255

DOMINO’S BURGER PIZZA:

Domino’s surprised us with a Burger Pizza. This one was special because of its exclusiveness to
the Indian subcontinent. thus for a change we beat Japan to a food hybrid! The cheesy innovation
was a blend of the classic pizza dough, a burger bun and oodles of pizza topping in between.

Again, something totally out of the pizza box (pun intended) and unthinkable unless gorged on.
The Burger Pizza looks like a burger, tastes like a pizza” according to Domino’s. And rightly so.
The combination was surprisingly harmonious and the nation is going gaga over it. Well most of
it anyway.
 Project Report

On

Chapter No # 3
Literature Review
 Department of Business Administration
Jain University
karnataka

Literature Review

Schlosser E. (2001) pointed out the most frequently reported reasons for eating at fast-food
restaurants were fast food is quickly served. Laroche and Parsa (2000) found that that people
decide to choose fast food restaurant because they like the taste and prefer instant satisfaction of
their taste buds. Fast food restaurant include a wide range of quick and fast service, brands and
take only short period to serve it. Consumer make their choice of brands in multi brand situation
is one of least understood yet important phenomenon in the marketing of Quick Service
Restaurant - Fast Food Restaurant. French SA et al, (2001) pointed out that visiting fast food
restaurant is to spent time with family and friends. Drewnowski and Spectre, (2000) contends
that one of the factor that influences consumption of fast food is by socio-economic status. There
is a difference between people who have high income with people who is have low income.
Usually people with low economic status prefer roadside stalls which are inexpensive; hygiene is
not a criterion for them.

Agnes K.Y. Law, Y.V. Hui, Xiande Zhao, (2004) have studied on “Modeling repurchase
frequency and customer satisfaction for fast food outlets”. In this study, the relationships
between customer satisfactions; repurchase frequency, waiting time and other service quality
factors in fast food outlets are modeled. Results shows that waiting time, staff attitude, food
quality and food variety all significantly affect customer satisfaction.

Ronald Gilbert, Cleopatra Veloutsou, Mark M.H. Goode, Luiz Moutinho, (2004) have
studied on “Measuring customer satisfaction in the fast food industry: a cross-national
approach”. This study provides a cross-cultural comparison of service satisfaction of fast food
establishments in four English-speaking countries. It is based on data collected from customers
of five globallyfranchised fast-food chains, using a previously developed service satisfaction
instrument. The study reveals two empirically derived, cross-cultural fast-food customer
satisfaction dimensions: satisfaction with the personal service and satisfaction with the service
setting.

Monika J.A. Schröder and Morven G. McEachern, (2005) have studied on “Fast foods and
ethical consumer value: a focus on McDonald’s and KFC”. This paper aims to investigate the
effect of communicating corporate social responsibility (CSR) initiatives to young consumers in
the UK on their fast-food purchasing with reference to McDonald’s and Kentucky Fried Chicken
(KFC).Most respondents (82 per cent) regularly purchased fast food from one of the companies;
purchases were mostly impulsive (57 per cent) or routine (26 per cent), suggesting relatively
low-level involvement in each case. Four factors were isolated, together explaining 52 per cent
of the variance in fast food purchasing behaviour. They were brand value, nutritional value,
ethical value and food quality.
Sandeep Singh Chib (2012),in his paper analyzed the customer satisfaction level related to
KFC and McDonald. It aims at knowing which of the companies (KFC or McDonald) is doing
better in terms of service quality and also to know which of the companies (KFC or McDonald)
is having more overall customer satisfaction. The researchers have used self-administered
questionnaire which is having two sections. First section comprises of statements related to
customer satisfaction, derived from Customer Satisfaction Questionnaire
(CSQ-8, C. Clifford Attkisson 1979) and American Satisfaction Customer Index (ASCI,
University of Michigan 1944). The second section comprises of statements related to service
quality, derived from SERVQUAL statements to collect primary data. The investigator has used
ANOVA (Univariate), Descriptive Statistics, correlation and regression, KMO and Bartlett Test
and Factor Analysis in order to achieve the research objective. The study reveals that KFC was
having better service quality and overall customer satisfaction as compared to McDonald. This
paper offers suggestions for adoption of customer satisfaction techniques pertaining to Fast food
Industry. Finally, the scope for further research also spelt out concisely.
Vanishree, M, and Shanthi, L (2013), in their paper discussed about customer awareness and
satisfaction towards KFC in Coimbatore. The demand for ready-to-eat packaged food is also
expected to record strong growth in the country. After the liberalization policy that came in force
in 1991, fast food industry has grown in India as multinational fast food providers have set up
their business either jointly with Indian partners or independently. In 1995, Kentucky Fried
Chicken (KFC) also entered the Indian market and opened its outlet in Delhi. With changing life
style and aggressive marketing by fast food outlets, fast food is also becoming popular in small
towns; therefore, success of existing fast food outlets and entry of more is inevitable. Hence, the
researcher has chosen this area for the study. Tools like descriptive analysis, chi square analysis
and average rank analysis are tested to identify the awareness and satisfaction level of KFC
customers. Kinnarry Thakkar and Mrunmayee R.Thatte (2014), in their study attempted to study
the consumer’ perception about two important food franchise, McDonalds and KFC. The study is
an explorative study based on primary data collected from 150 respondents in Thane city through
a structured questionnaire. Various factors like variety of food items, quality, taste, ingredients
etc. are analyzed to study consumer perception about food franchise. The study revealed that
price of the food items affect the frequency of visits to food outlets.
 Project Report

On

Chapter No # 4
Product features
 Department of Business Administration
Jain University
karnataka

Product features

General description:
Features:

Quality Control Over Ingredients

Every Chicken Tested

K & N’s 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 & N’s 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 India 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:

 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 fiber board in any part of the packaging that is in contact
with food. Any virgin fiber 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
India. 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.

Porter’s Five Forces-Analyses

Entry

For the current India market for fast food, it is not difficult for a fast food restaurant to
enter the market. However, it would be extremely difficult to take over already running
major fast food chains' dominancy in India or even make a significant amount of profit.

While there are enough people in urban India for any restaurant to survive, KFC holds the
first-mover advantage into the 'non-veg food specialty food segment' that gives them free
reputation. Customers, especially children who are used to going to KFC as a treat or
reward from their parents or grandparents, are not going to want to go to other restaurants
they’ve never heard of. The brand name is already established. Also, there is already a
large variety in the numerous western-style dining places in India , such as McDonald’s,
Pizza Hut, Domino's and Subway, and any new fast-food entrants would just be
presenting something very similar to what’s already there. While small Neighborhood
restaurants generally have low barriers to entry, these are the barriers to entry for similar
restaurant businesses to enter the fast-food chain market.

Buyer/Supplier Bargaining Power

The customers of KFC, especially as individual buyers, have almost no bargaining power
because if only one customer threatens to no longer eat at KFC, the store is not going to
lower its price because the cost of losing one customer is not very great. The suppliers,
like the buyers, have very little bargaining power.

In terms of food, KFC, upon its move into India, urged many of its U.S. suppliers to also
extend branches into India. KFC also began helping local suppliers by giving them
technological support to improve their products. This is a brilliant strategy because the
supplies that KFC would otherwise need to import from the U.S. can now be obtained
domestically, and if the U.S. suppliers decide to raise their prices, KFC can easily switch
to the local suppliers. This gives us a brilliant strategy.

With this strategy, KFC created competition among its suppliers, lowering the supplier
bargaining power. In terms of human resources, labor cost is extremely low because the
supply of non-skilled workers great exceeds the demand for them. With so little buyer
and supplier bargaining powers, KFC is able to have a very tight control over its prices
and expenditures.

Substitutes and Complements

As mentioned above, there are a few major competitors in the fast-food industry in India
for KFC, namely McDonald’s, 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 India 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, KFC’s 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.

Rivalry

Unlike what one would expect, KFC has little rivalry with similar fast-food chains in
India. The primary reason is that their core products are different, as in they sell different
kinds of fast foods with very different tastes and styles. For example, if KFC raised its
price for chicken by a small amount, India chicken lovers who may not be as accepting to
pizzas (many Indian people strongly dislike the taste of cheese) are not going to switch to
Pizza Hut just because the price for KFC increased. In addition to that, these restaurants
have such different target customers that the fluctuation of price for one restaurant is not
going to affect the others. For example, a full meal at KFC ranges about Rs. 100, whereas
a full meal at Pizza Hut can cost over Rs. 300. The drastic difference in price assures no
price competition between these restaurants.
Marketing Mix
Marketing mix consists of 4P’s. It contains everything a firm can do to influence the demand for
its product. The 4P’s are:
product
price
place
promotion
These marketing mixes are described in detail as under.

PRODUCT:

Product planning:

Their product is classified as consumer product as it has no intermediates. It also offers specialty
goods. The stock turn over of KFC is relatively high. The prices and quality of the product is
always compared. Their product includes Goods (Burgers, Chicky Meals etc) and Services

Product Strategy

It was launched here as an innovative product. KFC has got one product line but later they
introduced products in the same line to protect their market share. New product ideas are
They have a Quality Assurance department that decides the new product innovation. Q.A.
department prepares screening of new ideas and product’s feasibility report. This department
does the technical evaluation (whether it is practical to produce the new product or not). The
products are tested externally by offering trials to customers by giving them free samples. KFC
uses telemarketing, print media, billboards and most recently televised marketing for promotion.
KFC adds a new product in its present assortment based on their competitors, product’s adequate
demand, the satisfaction of key financial criteria and its compatibility with environmental
standards.

Product Line:

KFC product line includes all chicken based products.

Burgers:
The burger category includes the Zinger Burger, Colonel’s Chicken Burger, Colonel’s Fillet
Burger, SUB60 and 80, and Zinger Jr. They have also introduces a Fish zinger burger.

Chicken Pieces:

The chicken involved the product line with different number of chicken pieces like 1 piece, 2
pieces, 5 pieces and 10 pieces chicken.

Combos:

The combo includes the different meal as Chicken Meals, Sandwich Meals and Family Meals.

Desserts & Beverages:

The desserts and beverages offered by KFC are Fruit Salad, Regular & Large Drink, Regular &
Large Mineral Water, Tea, Scoop of Walls Ice cream and Coffee.

Snacks & Side Orders:

The snacks and side orders served by the KFC are Arabian Rice, 5 & 10 Pieces Hot wings,
Dinner Roll, Regular & Large Fries, Hot Shots, and Corn on the Cob, Hot & Crispy Soup and the
Cole Slaw.
Product Mix strategies:

The product mix strategies are in relation to:

Competitors:
KFC has a head-on competition with McDonalds so wherever they place their products; KFC
goes there as well. Locally in India KFC face a close competition with the local brands like AFC
(Al-Baik Fried Chicken), Fried Chicks, Dixy Chicks etc which are producing more or less the
same product as KFC.

Attributes:
The brand KFC is so strong that it is the attribute itself.

Quality:
KFC products are based on high quality and prices.

Product Mix Expansion and Contraction

KFC keeps on modifying their product through line extension and other methodologies. Line
Extension is being done through introducing new meals offers. The alteration of existing
products is also done and this function is performed by the Quality Assurance department. The
department decides which product should be sold and when (seasonal products as rice and soups
offered in winters). Functional modification is also done by the Q.A. department to introduce
new recipes. Other than expansion contraction is also being dealt with as when the new deals or
offers are not sold as expected, Q.A. department contracts the previous offers and introduces new
offers.

Change in Product Positioning:

KFC products were first offered to upper socio-economic group. Later, introducing discounted
and lower price deals, they are now dealing in masses. So, KFC has traded down. In doing so
KFC has used the same brand name and same high quality product.

Product Branding, Packaging and Labeling:

Brand Name: KFC

Color: Red, white

Symbol: Colonel Harland Sander’s picture and KFC written with it.
Master Brand: The brand itself is so dominant, that it immediately comes in mind.

KFC Brand:

KFC's brand identity is the logo featuring Colonel Harland Sanders, one of the best-recognized
icons in the world. It is trade marked registered brand and is distinctive, adaptable to addition to
product line. It suggests something about product. It is legally protected and registered.
Brand Equity and Strategy:

The brand equity is very high as the value added by brand to the product effects the product
selling. And the Brand strategy followed is that the KFC is marketing the entire output under
products own brand. Pepsi and Nescafe are the complementary brands associated with KFC.
Packaging Strategy:

KFC makes its own disposable packaging. If they need promotion Pepsi contributes in improving
the packaging quality. KFC does family packaging. They use paper material for packaging to
avoid health hazards and environmental pollution.

Labeling:
KFC does brand labeling. Some of its products also have informational labels such as Halal,
Veggie Burgers and Chicky Meals.
PRICE:

In introduction stage KFC entered the market using market-skimming strategy. Their products
were high price and targeted only upper class. Gradually they trickle down focusing on the
middle class to penetrate the market. Also KFC follows one price strategy. Price is determined
according to the rates of the raw materials and policies of the Govt. The political and legal forces
often affect the policies of KFC and eventually results in change of prices that is due to imposing
of taxes.

PLACE:
Distribution Channel:

KFC has only one channel of distribution i.e. direct where the goods are transferred to the
consumer directly. KFC has no middlemen.

Distribution of Consumer Goods and Services:

KFC does distribution of consumer goods directly to the consumer. It also does distribution of
services to the consumer like parking, sitting, home delivery, etc. KFC does intensive
distribution on its outlets. (All and everything on every outlet).

KFC gets Wheels!

KFC launched its first mobile unit, which took the streets of Karachi by storm. The mobile unit
has been designed to cater to the needs of those who are on the go, and have little time to stop by
at a restaurant. It also provides a unique convenience of enjoying the delicious KFC offering
anytime, anywhere, thus making fast food truly fast and convenient.

It intends to further develop its mobile network nationwide through more such units.
PROMOTION:

The logo features Colonel Harland Sanders that is one of the best logo in the world has created
its name as a standard in the market. Today the Colonel’s Spirit and heritage are reflected in
KFC’s brand identity.

KFC by its advertisements derives the desire in the customer to come and enjoy healthy food in
their favorite restaurant. They spend 2% of its profits on advertisement. They use print media and
most recently doing televised marketing to promote it products. Their advertising media involve:
Newspapers, Pamphlets, Billboards and Television. KFC does both the primary demand
advertising (“Become a Chicken Fanatic”) and the selective demand advertising (e.g. “Zinger
Meal”). In its advertising it give informative messages like “Keep the city Clean”. KFC does
institutional advertising to stimulate demand. When KFC offers new products then it does
product advertising. KFC’s ad’s act as counteracts which means to drive the customer to KFC
i.e. it uses pull advertising strategy. They also provide wit the key chains, watches, bags, tee-
shirts etc. to its customers with the purchase of different meals as a part of their promotional
activities. They also provide with certain midnight packages, birthday packages and lot more.
KFC has put big hoardings on the busy areas of India and have an effective advertisement
campaign on the media in order to motivate its customers. The colors used in advertising are
Red, White and blue which itself is recognition for the brand.

KFC have joint sale promotions with different companies like HP, Philips, Value Meals, Pepsi-
Cola. And most recently with ARY Gold digital and World Call Internet services. Also KFC
Proud Partners are Del Monte, Culligan, Shan and Peek Freans (EBM).
PSO had made a scheme in which PSO had given the coupons of KFC having 10% off. (1
coupon was given after each purchase of 10 liters of petrol)

KFC in its advertisements says;

“Nobody does chicken like KFC”

“We do chicken right”

Hence, focuses on product advertising. KFC does mass selling in order to reach its target market
(as it has trickle down). KFC in its ads try to convert people to people who eat boring bland fast
food over to KFC.

The message conveyed in the ads is recognition for the brand. KFC does competitive
advertisement with its head on competition with McDonalds. Regarding this KFC uses Pricing
below competition strategy.

KFC sponsor’s many NGO’s and other social welfare organizations. They also offer different
deals according to the season and occasions.

KFC as a market leader:

It has covered 80% of the market share in fast food industry KFC has recognition around the
world and has been globally positioned for many years in India and to capture the market share
in India adopts champs philosophy.

Strategic Planning is the process of developing and maintaining a strategic fit between the
organizational goals, capabilities and its changing marketing opportunities and is done by KFC
in a well defined manner.

Strategic planning sets the stage for the rest of the planning in the firm. KFC is looking that how
much its current strategies are beneficial for them. Although these are good and profitable but
dynamic changes in environment are requiring identifying the attractive opportunities.
That is the reason that they are expanding there market size by focusing on sub urban areas and
targeting middle class people by providing them differentiated products at a fair price. They are
opening their new mobile outlets in there potent ional markets. KFC is also going to increase its
sweet dishes to avail the opportunity available for them.

KFC in a Growing Market:

The market of KFC is increasing day by day. Being a food market it is always considered in a
growing market because it increases continually with the population. Their growth is
continuously increasing and if they want to be a leader, they has to develop a strategy which is
predominantly a market expansion strategy and in this way they will not loose their leadership. It
has greatly increased their market share in India by following different strategies that may be
regarding their products, prices, placement or promotions. They have been following the
strategies for market expansion by targeting the new users of the product, describing the new
uses of the product and by showing them more usage of the product.

Describing the New Uses:

In this method, the new uses of the product are being described. As the motto of “KFC says we
do chicken right”, here they claims that they are the best in using the chicken correctly. In the
early days the chicken was simply used in a simple way for cooking, but KFC has introduced it
in a number of ways and described it to the people by launching it as a meal as well as in the
snacks form. They prove them with the best cooked chicken with a great taste. Instead of the
chicken pieces, they also serve chicken nuggets, burgers, hot shots, twisters etc. many new
innovative products are being introduced by KFC that is greatly helpful in attracting the
customers and increasing its market share.

More Usage:

In the advertisement of KFC mostly seen on the bill boards, they have shown in the new scheme
of zinger deal of Rs.290 + 10 and u get zinger + another chicken burger. And in Ramadan, they
launches the deal of Rs. 500 and it says that all you can eat, it gives the unlimited zinger burgers
and chicken pieces. In this way they have greatly increased their usage of their products.

New Users:
The people who do not eat KFC should be attracted, that may be by attracting the non users of
the product, non users of the brand or the non believers. They are done in the following ways.
Non users:

The people who do not eat the fast food, they should be attracted like KFC has been attracting
their customers by providing deals with Ufone. If the person is an Ufone user and he is not a
KFC customer, they simply receive a message on their hand set and they jus have to show it on
the KFC and counter and get a free meal. It’s a strategy to attract the non users. In a similar way,
distributing deal coupon on specific purchases, in shopping malls may also be very effective.

Non Users of the Brand:

The non users of KFC can be attracted by describing them the quality features of the product that
they think of trying the product once. In this case promotional activities play an important role. If
the promotions are done in an effective manner, people would definitely try the product and also
lowering the prices may be very effective that people may switch from other brands to KFC.

Non Believers:

KFC is quite successful in attracting the non users of the product and the brand as well, so it is
not really necessary to hit the non believers. This is because they are the most difficult people as
it is very hard to break their social, religious and cultural believes.
Product usage

 People are educated and they want variety in their diet.

 Normally people of rural areas don’t take fast food. On the other hand people of urban
areas take fast food.

 Income of the people of urban areas is normally high and they can afford to
purchase such products, which are slightly higher in price as compared to
prevailing prices of local food in the market.

 People of Urban Areas are more quality conscious than the people of Rural Areas.

 In Urban Area there lived people from every walk of life and profit generation is easier
than in Rural Areas.

 Population density is higher in Urban Areas as compared to Rural Areas, so the number
of customers are more in Urban Areas.
 Project Report

On

Chapter No # 5 5

Theoritical Background

Department of Business Administration

Jain University
Karnataka
 OBJECTIVES OF THE STUDY

Primary Objective: To compare customer satisfaction level towards KFC.

Secondary Objectives:
 To identify the relationship between demographic variables and factors of customer
satisfaction towards KFC
 To compare the satisfaction level of KFC customers.
 To access the user satisfaction towards service, Hygienic, Advertisement, delivery of the
products.

Research methodology

Descriptive research is followed in this research. The universe of the population includes the
respondents who are the customers of KFC, located at jaynagar, Bangalore. The samples (i.e.
sample size 120) were selected among the customers of KFC , located at Bangalore for this
research. The samples were chosen from the population, by using Convenience sampling
technique (i.e. Non-probability sampling technique), because the exact population size is
unknown and the accessibility of the customer is difficult. Survey method of data collection was
used in this research. The primary data were collected using structured questionnaire.

Limitations

As is the case with any research, readers need to consider the presented results within the context
of limitations. Time management is key to this research, considering the deadline period to hand
in the dissertation,
 KFC managers from each outlets was informed to have a go ahead to administer the
questionnaires on their customers on their premises
Another key area of limitation was the disparity in location of the outlets that was visited; KFC
has 25 outlets presently in the city. Although, three of these was visited
(jp nagar, jaynagar and BTM),
with priority to JP nagar; since it was near to my room. However, jp nagar has a good
representation of the remaining two outlets because they are relatively similar in terms of
commercialization and lifestyle. Since half of the outlets was planned to be visited, , so 3 outlets
form each side was surveyed.

Data collection and analysis

Data collection, its interpretation and evaluation lies at the heart of business research, the
conclusions derived from the research can only be as good as the data and the arguments based
upon it and collecting and analysing such data always has cost and time associated so a good
rationale will be required about how much is enough (Camreon and Price 2009).
Data collection is usually the most expensive aspect of the survey and it‟s the logical starting
place for estimating project cost. There are different types of data collection methods depending
on the data required, however whichever method that is found suitable for the data collection has
to be rigorous (Cameron and Price, 2009). The choice of method for collecting the data depends
on the information needs and value, as well as the budget and resources available and the timing
requirements (Alreck and Settle, 1995, pg. 32). The selection of the most appropriate method or
data collection is s key decision for researchers, however, each methods of data collection has its
own special capabilities and limitations. For the purpose of this research physical contact with
the respondents is more appropriate.
Data collection is mainly of two types; Primary and Secondary. Secondary data according to
Cooper and Schindler (2008) are results of studies done by others for different purposes than the
one for which the data are being reviewed, while primary data are collected specifically for the
research project been undertaken (Saunders et.al, 2007). The secondary data for this research
study was basically obtained from textbooks, newspaper articles (relating to Quick service
Restaurants and International brand perception in Bangalore) and, academic journals available on
DBS library website, the emerald website, Athens, and EBSCO database, KFC website and some
other useful online sites were used. All the secondary data sources have been referenced
accordingly. For the primary data questionnaire was used for this research because of its ability
to appropriately enhance response rates and ensure the validity and reliability of data collected.
Saunders et.al (2007), within management research the greatest use of questionnaire is made with
the survey strategy.
The term data processing or analysis for this research refers to numeric, rather than verbal.
According to Alreck and Settle (1995) the product of data processing is a set of tables and graphs
that portray the result of the survey and the primary objective of the analysis is to suppress
superfluous detail and to make most relevant and important facts and relationship apparent.

Questionnaires

A questionnaire is a group or sequence of questions designed to elicit information from an

informant or respondent when asked by an interviewer or completed unaided by the respondent.
The most useful for this research will be structured questions, structured survey items do two
things: they ask a question and they list alternative answers for the respondent (Alreck and Settle,
1995, pg.104). Greenfield, (2002) although survey can be obtained with other methods, the
structured questionnaire remains the most common method of obtaining a structured set of
survey data. It is therefore the method of data collection on which this research will take.
Questionnaires can be administered through different methods: self-administered, mailed
electronically, distributed by post or by telephone conversation. However, the researcher decided
to personally administer the questionnaires since the restaurants doesn‟t in any way have any
form of data or record of its customers which eliminated order means through which the
questionnaire could have been administered.

Advantages of self administered questionnaire

Self-administered questionnaires are one of the most frequently used methods for collecting data
for research studies. Although it can be sometimes expensive and time consuming, some of the
under listed advantages makes it more interesting for the researcher:
 Higher response rates are certain than other modes
 Questions can be more detailed and obtains a lot of comprehensive information
 Respondents feel more open to give out information because it creates rapport.
 Low cost-per-completion makes it an economical method of surveying large samples
For the purpose of this research, questionnaires will be used at 12 of KFC‟s outlets that would be
selected across the country and a minimum of 10 questionnaires will be administered to
customers at each outlet.

Population and sampling

Bryman (2004) described population as the universe of units (unit is employed because it‟s not
necessarily people who are being sampled) from which the sample is to be selected. To survey
every individual in a population using enumeration is ordinarily much too expensive in terms of
time, money, and personnel, so taking a fraction of the entire population usually represent the
group as a whole with enough accuracy to base the decisions on the results with confidence.
Alreck and Settle, (1995) the concept of sampling is easily understood, it simply means taking a
part of population to represent the whole population. The need or reason for sampling according
to Saunders et.al (2009) usually arises when:
 It is impossible to survey the entire population
 Availability of limited budget to survey the entire population
 Time constraints from surveying the entire population
 Or when data is already collected and results are quickly required.
There are two main types of sampling design: Probability often referred to as representative
sampling and Non-probability also known as judgemental sampling methods. Bryman and Bell
(2011) defined probability as a sample selected using random selection so that each unit in the
population has a known chance or probability of being selected. For Non-probability the
selection of the units from the population is not randomly selected and some of the population
have more chances of being selected than others (Bryman and Bell, 2011, pg. 176)
For the purpose of this research probability sampling was adopted not because it seems more
suitable but the technique facilitated the exploratory nature of the research, it is selected in such a
way as to be representative of the population. They provide the most valid or credible results
because they reflect the characteristics of the population from which they are selected. Under the
probability sampling there are different methods. However, the researcher adopted the stratified
random sampling technique. A stratified sample is a mini-reproduction of the population and the
first step in this sample selection is to define the population that will be in the sample (Consumer
of KFC ages between 21 to 50 years) and since there is fairly detailed

advance knowledge of the population characteristics, stratified sampling is the appropriate

sample.

Research ethics

Blumberg et.al (2005) defines ethics as moral principle, norms or stands of behaviour that guide
moral choices about or behaviour and our relationship with others. But within the context of
research, ethics refers to the appropriateness of the researchers behaviour in relations to the right
of those who become the subject of his/her work, or affected by it (Saunders et al. 2007)
“Two things fill my mind with ever-increasing wonder and awe the more often and the more
intensely the reflection dwells on them: the starry heavens above me and the moral law within
me” Immanuel Kant.
According to Zikmund (2000) as cited by Saunders et al (2007), inevitably what is morally
defensible as researchers will be affected by broader social norms of behaviour. Bryman and bell
(2011) stated that ethical issues revolve around two major concerns;

 How we should treat the respondents on which we conduct research

 Are there activities in which we should or should not engage in our relations with them?
Research ethics have been a major issue since the second world war when, following an
unethical research on human subjects, the horror of the infringement on human rights initiated
the insistence that all research should be ethical (Wisker, 2008, pg. 86). Today the world over
there are various code of ethical conducts or some sort of ethical guides applicable in different
academic organisations as well as in different countries. In Bangalore there is data protection act
part of which stated that every personal data on identifiable living persons must be protected by
whoever has access to it.
This survey research adhered to ethical principles, information obtained through questionnaires
were used only for the purpose of dissertation, and KFC® Bangalore was duly informed of the
research before the survey was carried out on their premises to avoid issue of
infringement. Participation by respondents was voluntary and remains the right to partially or
completely withdraw from the process there was confidentiality and respondents were informed
in details about the purpose of this research. However, after the completion of the research, all
information and findings will be made available accordingly, most importantly names of
respondents were not included in any part of the research.

Project Report

On

Chapter No # 6

Analysis

Department of Business Administration

Jain University
Karnataka
1. RESEARCH ANALYSIS

INTRODUCTION
This section presents the empirical findings and data analysis from the primary research
obtained through the survey questionnaire and the aim of this chapter is to explain the
analysis done on the data obtained. This chapter intends to present the results without trying
to draw conclusions. These findings are grouped and presented according to the three
research objectives and the two research hypothesis. The analysis obtained from the
quantitative research which was by self-administered questionnaires was completed by the
respondents in this case, customers of Kentucky Fried Chicken (KFC) in Bangalore.

A sample of 120 customers of the restaurant participated in this research, where the
respondents are presented with structured questions. The questionnaire is divided into four
sections namely: the demographic section which comprises of questions based on gender,
age, marital status and how often the customers eat in a fast food restaurant, the next section
comprises general background questions about reasons for choice of restaurant, the next
section is to know the perception of the customers towards an international QSR, with KFC
as the case study and lastly, to determine possible factors influencing purchase from KFC.

Finally, the empirical findings are examined further in relation to the research questions and
research objectives, leading to the final conclusions of the study, and the acknowledgement
of limitations and recommendations for future research.

(Q. 1) GENDER

The results reveal that the 120 sample of respondents was fairly evenly distributed between
genders; with 56 males and 64 females, representing 46.7% and 53.3% of the total sample
surveyed respectively. The survey results are shown in table 4.1 and Figure 4.1 below.

Table 4.1
Gender Response count Response percent

Male 56 46.7%

Female 64 53.3%
Figure 4.1

(Q. 2) AGE

The respondents surveyed were between the ages 25 and 50; this market segment was chosen
as an ideal representation of quick service restaurants customers in Bengalore. As shown in
table 4.2 and figure 4.2 below, the large majority of the respondents were in the age groups of
21-30 which represents 47.5%, followed by those between the age group of 31-40
representing 31.7 and the age group 41- 50 represents 20.8%.

Table 4.2
Age group Respondent count Respondent percent

21 – 30 57 47.5%

31 - 40 38 31.7%

41 - 50 25 20.8%
Figure 4.2

(Q. 3) MARITAL STATUS?

The results revealed that more of the respondents were married with a count of 69
representing 57.5% of the total number surveyed and 51 of the respondents were single,
representing 42.5%. Ordinarily one would have thought that single people visit fast food
restaurants more than married people. However, this findings support what was pointed out in
the literature review, that the continuous urbanization growth, coupled with the fact that more
women have joined the work force have led to changes in the life style and demographics
throughout the major cities.

Table 4.3
Status Respondent count Respondent percent

Single 51 42.5%

Married 69 57.5%
Figure 4.3

(Q. 4) HOW OFTEN DO YOU EAT IN A FAST FOOD RESTAURANT?

The results from Table 4.4 and figure 4.4 below indicates that close to half of the respondents
(45.8%) visit a restaurant two to three times a week, 39.2% visit at least once a week, 11.7%
visit less than once a week and 3.3% visits up to four to five times a week. This confirms the
increasing rise in the demand for fast food restaurants in Bengalore, before now, majority of
the people would probably be visiting less than once a week.

Table 4.4
No. of times Respondent count Respondent percent

Less than once a week 14 11.7%

Once a week 47 39.2%

2 to 3 times a week 55 45.8%

4 to 5 times a week 4 3.3%

 Figure 4.4

Objective 1: To evaluate if consumer expectations are simply changing

(Q.5) WHICH FAST FOOD RESTURANT DO YOU VISIT MOST FREQUENTLY?

Eight choices were given; this is a representation of the most popular fast food restaurants in
Bengalore, although the total numbers of the fast foods are way more than these but the
presence of the other are sparsely distributed with fewer outlets.

Domino’s was the most frequent by the respondents with 24.12%, followed by KFC (16.7%),
sweet sensation (15.8%), Mc donald (13.3%), Burger king (11.7%), Empire (7.5%), Others
(5.8%), Sub way (5%). Not surprising that the pioneer of the fast food restaurant in Bengalore
(Sub way) is the least frequent QSR by respondents; low patronage is perhaps the reason why
the company has recently sold half of its restaurant chain to another international brand.
While this finding collaborate the basis for the research as to why many local brands are not
doing as well as its international counterparts, is also useful for KFC to know its major
competitors.
Table 4.5
Restaurant Respondent count Respondent percent
Sub way 6 5%
Domino’s 29 24.12%
KFC 20 16.7%
Burger king 14 11.7%
Sweet sensations 19 15.8%
Empire 9 7.5%
Mc donald 16 13.3%
Others 7 5.8%

Figure 4.5

(Q. 6) WHY DO YOU PREFER THIS PLACE?

The statements were put forward in order to know if consumer expectations were simply
changing, particularly in terms of food variety, quality and price. Notably, more international
food menus options (Pizza, Burgers, Kebab etc.) are not widely available or not properly
done in most of the local fast food restaurants, perhaps such gap might be responsible
international brands patronage.

As presented in the table 4.6 and figure 4.6 below, one- third of the respondents representing
33.3%, chose choice of food or variety as their major reason for restaurant preference (this
shows the significant importance of menu type that is been offered by the restaurant). Also,
19.2% chose quality, brand has the third highest number of respondents with 15.8%, price is
at 13.3% whereas one would have thought it would be the number one reason for preference
considering the economic situation of the country, location of the restaurant and dining
environment were both at 8.3% respectively with service time as the least reason for
preference at 1.7%.

Table 4.6
Answer options Respondent count Respondent percent
Price 16 13.3%
Quality 23 19.2%
Service time 2 1.7%
Food choice/variety 40 33.3%
Brand/Universality 19 15.8%
Location 10 8.3%
Dining environment 10 8.3%

Figure 4.6

Hypothesis 1: Consumer perception has great significant impact on KFC success.

(Q. 7) DO YOU KNOW ABOUT KFC BEFORE IT CAME TO BENGALORE?

Table 4.7 and figure 4.7 shows the responses of the customers when they were asked if they
have knowledge of KFC before it entered Bengalore market. A large percentage of the
respondents (86.7%) said they have knowledge of the brand while as little as 13.3% said they
don‟t. This finding supported the fact that Bengalorens are quite knowledgeable about
international brands, since consumer knowledge plays an important role when making
purchase this definitely might have given KFC an edge in terms of consumer patronage.

Table 4.7
Answer option Respondent count Respondent percent

Yes 104 86.7%

No 16 13.3%

Figure 4.7

(Q.8) WHAT FIRST COMES TO MIND WHEN YOU THINK OF THE BRAND?

Following the question asked before (Q.7), the 104 respondents that answered ”yes‟ were
then asked to respond to this question to know what first comes to their mind when they think
of the restaurant since they knew of it before. Table 4.8 and figure 4.8 below shows that
34.2% of the respondents said quality fast food is what first comes to their mind, followed by
29.2% who said it was international dining experience, 10.8% said it’s the crispy fried
chicken; this suggest this respondents must have dine at KFC somewhere else outside the
country before, 10% said outstanding reputation and 1.7% chose others.

Consumer behaviour characteristics of Bengalorens do show that they tend to prefer leading,
popular or international brands to local ones; to most of them it depicts their social class. This
simply shows the amount of brand recognition or awareness and its effect on consumer mind
especially when the brand is known to be internationally available. This implies that KFC
patronage by Bengalore consumers is largely based on the brand rather than product and
services.
Table 4.8
Answer option Response count Response percent
Outstanding reputation 12 10%
Quality fast food 42 34.2%
International dining experience 35 29.2%
Crispy fried chicken 13 10.8%
Others 2 1.7%

Figure 4.8
Objective 2: To identify factors influencing customer buying decision of international
fast food restaurant brands in Bengalore.

(Q. 9) WHERE DID YOU FIRST HEAR ABOUT KFC ARRIVAL IN BENGALORE?

The section starts to know where or how did the customer first heard about KFC in
Bengalore, this might in some way affects their perception and even to some extent get to
influence their patronage. Quite a number of the respondents (38.3%) first heard about the
arrival of KFC through advertisement (Promotion, radio, newspaper, billboards etc.), it shows
that KFC has a good marketing done to create awareness. Word of mouth (WOM) is of great
significance with 28.3% of the respondents stating to have heard through friends or families,
23.3% actually saw one of the locations and, 6.7% and 3.3% of the respondents heard about
KFC through internet and other sources respectfully.

Table 4.9
Answer option Respondent count Respondent percent
Through advertisement 46 38.3%
Through friends/family 34 28.3%
Internet 8 6.7%
Saw one of its location 28 23.3%
Others 4 3.3%

Figure 4.9
 (Q. 10) WHY DID YOU FIRST VISIT?

From table 4.10 and figure 4.10 below, it shows that a third of the respondents (33.3%) first
visited KFC because of its brand name; this implies that brand is important to Bengalorean
consumers just as consumers all over the world especially those in emerging markets. Quite a
number of the respondents (26.7%) visited KFC for the first time just to try something new or
out of curiosity.

Knowing that 15.8% of the respondents accompanied others and 11.7% visited for the first
time as a matter of referral (coupled with 28.3% that first heard about the KFC through
family and friends as shown in Q.9), this shows a high significant typical culture
characteristic of a collectivistic society However, this might also implies high level of
satisfaction as consumer will only recommend a product or service to others only when their
expectations are met. Another 10.8% visited because of the location, probably either it’s
closer to their work place, home or the location is in a commercial area.

Table 4.10
Answer option Respondent count Respondent percent
Referral (friends/family) 14 11.7%
To try something new 32 26.7%
Accompany others 19 15.8%
Brand name 40 33.3%
Location 13 10.8%
Others 2 1.7%
Figure 4.10
 (Q. 11) WHAT IS YOUR MAJOR REASON FOR PATRONAGE?

It is one thing to be able to bring or attract a customer to business it’s another thing entirely to
be able to retain them. This question is put forward to understand why they would come back
after the first visit; it gives a perception of how customer see the business along with the
value that matters to them.

According to the respondents the two major factors that influence consumer decision are;
quality of food at KFC is the number reason for patronage with 31.7%, followed closely by
brand (26.7%), however, this close relationship in the responses (between quality and brand)
is not surprising as it confirm the idea that brands that are globally available or that has
international acceptance are perceived to be of superior quality by Bangalore consumers.
18.3% of the respondents stated difference in menu as their reason, location responsible for
9.2%, price affordability is 8.3%, while 3.3% and 2.5% of the respondents chose convenience
of location and service excellence respectively.

Table 4.11
Answer option Respondent count Respondent percent
Quality of food 38 31.7%
Menu is different to others 22 18.3%
Price is affordable 10 8.3%
Convenience of location 11 9.2%
Dining environment 4 3.3%
Brand 32 26.7%
Excellent service 3 2.5%
Figure 4.11
(Q. 12) PLEASE RATE THE FOLLOWING FACTORS WHICH COULD HAVE
INFLUENCED YOUR BUYING DECISION AT KFC (Most likely – 5, likely – 4,
Neutral – 3, Unlikely – 2, Most unlikely – 1)

The statements were put forward to understand respondents‟ motivation for or factors that are
most likely to influence their purchase of an international fast food restaurant. Through the
use of quantitative data, the respondents were asked to rate the most common consumer
influencer factors from most likely to most unlikely.

Table 4.12 and figure 4.12 below shows the response of the respondents, when it comes to
price a total of 70% (unlikely and most unlikely) of the respondents indicated that price isn’t
a factor that could have influenced then while another 14.2% of them were neutral, only a
total of 15.9%(most likely and unlikely) said it is factor. In terms of quality, 66.7% in total
agreed quality could have influenced their buying decision while26.7% of the respondents
said it is not likely. When it comes to brand there is a similarity in variations to that of
quality, a total of 63.3% responded brand name could have influenced their purchase decision
while 17.5% of them didn’t think so, 19.2% were neutral on their responses. On family and
friend’s opinion a good 43.3% stated this could have been possible influencer on their buying
decision, while 18.3% were neutral, 28.3% didn’t think it could have influenced them

Table 4.12
Influencer Most likely Likely Neutral Unlikely Most unlikely

Price 6.7% 9.2% 14.2% 46.7% 23.3%

Food quality 49.2% 17.5% 6.7% 24.2% 2.5%

Brand name 40% 23.3% 19.2% 13.3% 4.2%

Family/friends 10.8% 32.5% 18.3% 30% 8.3%

opinion
Figure 4.12

Objective 3: To assess consumer perception of the international fast food restaurant

brands

(Q. 13) HOW SATISFIED ARE YOU WITH KFC COMPARED TO OTHER FAST
FOOD RESTAURANT?

Table 4.13 and figure 4.13 below shows results when the respondents were asked to rate
their level of satisfaction in comparison to other fast food restaurants, the idea is to know how
the level of satisfaction in KFC is with what they value in mind. 53.3% are satisfied, 23.3%
of the respondents are highly satisfied, 17.5% stated they are neither satisfied nor dissatisfied
and quite a small number (5.8%) were dissatisfied. With a total of 76.6% customers satisfied
with the restaurant, this implies a high level of feeling pleasure and expectation fulfillment
among KFC customers
Table 4.13
Answer option Respondent count Respondent percent
Highly satisfied 28 23.3%
Satisfied 64 53.3%
Neutral 21 17.5%
Highly dissatisfied 0 0
Dissatisfied 7 5.8%

Figure 4.13

(Q.14) PLEASE RATE YOUR SATISFACTORY LEVEL BASED ON THE

FOLLOWING; PRICE, QUALITY, BRAND AND TASTE EXPERIENCE

Following the question of how satisfied the respondents were with the restaurants when
compared to others, the next set of questions here are to know their level of satisfaction based
on price, quality, brand and taste experience which are they major reasons for every fast food
patronage.

In table 4.14 and figure 4.14 below it shows that a total of 54.1% respondents are dissatisfied
when it comes with „price‟ while 34.2% claimed that they are satisfied, this implies that most
customers might be seeking lower price but not necessarily means to compromise on quality.
From the responses it also shows that a high number of the respondents (74.2% in total) are
quite satisfied with the quality they get at the restaurant as against 11.7% who are not, this
implies the quality at KFC is quite high. The level of satisfaction on brand is very high too,
with a total of 80.9%; this might imply that customer expectation on value an international
fast food restaurant should offer are met. Finally, in terms of taste experience a good number
of respondents (51.7% in total) are satisfied with the restaurant menus, (perhaps 26.7% of the
respondents in Q. 8 that visited KFC for the first time because they wanted to try something
new are part of the respondents who are satisfied in terms of taste experience). However, a
total of 28.3% are dissatisfied with the taste experience.

Table 4.14
In terms of Highly Satisfied Normal Dissatisfied Highly
satisfied dissatisfied

Price 11.7% 22.5% 11.7% 40.8% 13.3%

Quality 19.2% 55% 14.1% 10% 1.7%
Brand 26.7% 54.2% 9.2% 8.3% 1.7%

Taste 15% 36.7% 20% 25% 3.3%

experience

Figure 4.14
 (Q. 15) IN TERMS OF VALUE FOR MONEY WHAT IS YOUR LEVEL OF
AGREEMENT WITH THE FOLLOWING

From table 4.15, figure 4.15a and figure 4.15b below it shows the level of agreement of
respondents to the two statements that were put across. The aim of this is to know if the
customers are quite satisfied with what they get for money spent

The findings implies that there are about 16.2% of the respondents that agreed prices are
higher at KFC but still feel they have got a good value for their money worth. It is true that
how a customer perceives price, either as high, low or fair will have strong influence on both
purchase intentions and satisfaction, since perceived value is relative and subjective.

Table 4.15 (representing figure 4.15a and 4.15b)

Value for money Strongly Agree Neutral Disagree Strongly
agree disagree

The food is great 10% 33.3% 13.3% 34.2% 9.2%

value for money
Prices are higher 12.5% 46.7% 6.7% 24.2% 10%
compared to others

The food is great value for money

In the statement 4.16.1, the total number of respondents (strongly agreed and agreed) was
43.3% and exactly the same percentage (43.4% in total) disagreed and strongly disagreed,
that the food is great value for money while 13.3% stayed neutral on the statement.

Figure 4.15a
 The prices are higher compared to other restaurants
There was a shift in balance when the respondents were asked if prices are higher in KFC
compared to others, a total of 71 respondents (strongly agreed and agreed )out of the 120
which represents 59.2% agreed that prices are higher, while a total of 34.2% disagreed and
the remaining 6.7% stayed neutral.

Figure 4.15b

(Q.16) WHAT IS YOUR MAJOR EXPECTATION OF AN INTERNATIONAL

FAST FOOD RESTAURANT?

The statement was put forward in a manner so that the respondents can specify their
perceived expectation of what an international fast food restaurant should offer. The results
from table 4.16 and figure 4.16 below indicates that close to half of the respondents (44.2%)
expected superior quality from an international brand as quality is generally believed to be a
prerequisite for international acceptance, 19.2% expected excellence service when compared
to local brands, 28.3% of the respondents expected value for money, 8.3% of the respondents
expectations were not specified.

The findings imply to support the idea that global products are often perceived to be of
superior quality, which creates high level of perceived value in consumer minds.
 Table 4.16
Answer option Respondent count Respondent percent
Superior quality 53 44.2%
Excellence service 23 19.2%
Value for money 34 28.3%
Others 10 8.3%

Figure 4.16

(Q. 17) PLEASE RATE YOUR LEVEL OF AGREEMENT WITH THE

FOLLOWING STATEMENT

The following series of questions were put across to the customers to state their level of
agreement in the order to further have an insight to their perception of the restaurant as well
as influencing factor

Foods in KFC are better than others?

The table and figure below shows that a total of 59.2% (strongly agreed and agreed) of the
respondents stated that foods in KFC are better than what others serve, 17% stayed neutral
and only 26.7% (strongly disagree and disagree) did not think food in KFC are better.
 Table 4.17.1
Answer options Response count Response percent

Strongly agree 33 27.5%

Agree 38 31.7%
Neutral 17 14.2%
Disagree 20 16.7%
Strongly disagree 12 10%

Figure 4.17.1

Quality is the same every time?

When asked if the quality is the same every time they visited the restaurant, table 4.17.2 and
4.17.2 below shows that the majority of the respondents strongly agreed and agreed (a total of
75%) that quality is same every time, this indicates that they are satisfied with quality every
time, 8.3% neither agree or disagree, while 14.2% of the respondents disagree, the remaining
respondents strongly disagree that quality is same every time.
 Table 4.17.2
Answer option Response count Response percent
Strongly agree 37 30.8%
Agree 53 44.2%
Neutral 10 8.3%
Disagree 17 14.2%
Strongly disagree 3 2.5%
Figure 4.17.2

Brand is your number one reason for purchase?

To know the position the brand plays in influencing the customer buying decision,
respondents were asked to state if KFC brand is their number one reason for purchase. A
total of 65% of the respondents (strongly agreed and agreed) that brand is their number
reason for purchase, while 6.7% of the respondents stayed neutral on the statement, a total
of 28.3% (Disagreed and strongly disagreed) that brand is their number reason.

Table 4.17.3
Answer options Response count Response percent
Strongly agree 29 24.2%
Agree 49 40.8%
Neutral 8 6.7%
Disagree 25 20.8%
Strongly disagree 9 7.5%
 Figure 4.17.3

KFC entrant has influenced the way others do business?

The statement were put forward to respondent to know if they have noticed any significant
changes in the way others in the industry run their business since the arrival of KFC in the
market. A total of 66.7% of the respondents (strongly agreed and agreed) that KFC must
have impacted the changes seen in the way others do their businesses, 10.8% remained
neutral which suggest they were probably unsure, while a total of 22.5% (disagreed and
strongly disagreed) did not think that the arrival of KFC has changed anything in the
industry.

Table 4.17.4
Answer options Response count Response percent

Strongly disagree 48 40%

Agree 32 26.7%

Neutral 13 10.8%

Disagree 20 16.7%

Strongly disagree 7 5.8%

 Figure 4.17.4

CONCLUSION
The customers are mostly satisfied towards the price, quality and taste of KFC products.
According to Hygiene, Preparation time, Nature of product and hospitality KFC was prepared .
From all of the above detailed discussion about KFC in India, it is really clear that KFC and
India are growing together. KFC is doing well in Bangalore and keeps following its marketing
strategies as a market leader and segmenting the market into different variables and increasing
their market share. KFC is leading in Fried Chicken. It gives quality, variety and fresh meals as
of its competitors.
RECOMMENDATIONS
After the research analysis has been conducted which critically look at the research
objectives

 It obvious KFC future in Bangalore remains bright with much expansion plans
already in place, however the restaurant might need to consider inputting more local
snacks and menu into their food choices. This shouldn‟t be a problem as KFC
franchise allows for adaptability to a fair extent. This would allow them gain more of
the market share.

 Another area KFC might consider is price competitiveness particularly when it comes
to expanding to other cities in India where economy is way lesser than that of
Bangalor where 75% of their outlets are currently located.

 From findings quality in some local brands are likely to be below satisfactory level,
this is an area that needs improvement. Perhaps the association of Fast Food and
Confectioners of Bangalore (AFFCON) should have quality standard for setting up a
fast food restaurant.

 Further research should be carried out on customer perception of local fast food brand
in Bangalore. This might help to ensure improvement in consumer satisfaction and
ultimately improved service quality and dining experience that will help meet and
satisfy the needs of the customers adequately.

 Local brands should look into franchising as a means of market entry which is most
likely create a better perception in the minds of consumers.

 International fast food brand should take up the opportunity in the fast growing
Bangalore QSR industry. Their success is more than likely certain as Bangalore
consumers prefer foreign goods or international brands and there is little or no sense
of loyalty to local ones.

 According to World Bank, the world‟s population will rise to nine billion by 2030,
and 90% of the population will be leaving in the emerging market nations like India,
this shows that there is huge business potential.
Biblography

1. Kenneth E Clow & Donald Back, Integrated Advertising, Promotion & Marketing
Communications, Pearson, 2012 Edition.
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McGraw Hill Education, 2010 Edition.
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O'Shaughnessy Publisher: Palgrave MacMillan Released: 2013 MacMillan
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2013.
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Nnamdi O. Madichie Publisher: Tata-Mcgraw Hill Publisher Edition: 2012
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Annexure

1. Gender
o Male
o Female
2. Age
o 21 – 30
o 31 - 40
o 41 - 50

3. Marital status
o Married
o Unmarried

4. How often do you eat in a fast food restaurant?

o Less than
once a week
o Once a week
o 2 to 3 times a
week
o 4 to 5 times a
week

5. Which fast food restaurant do you visit most frequently?

o Sub way
o Domino’s
o KFC
o Burger king
o Sweet sensations
o Empire
o Mc donald
o Others
6. Why do you prefer this place?
o Price
o Quality
o Service time
o Food choice/variety
o Brand/Universality
o Location
o Dining environment

7. Do you know about KFC before it came to Bangalore?

8. What first comes to mind when you think of the brand?

o Outstanding
reputation
o Quality fast food
o International dining
experience
o Crispy fried
chicken
o Others

9. Where did you first hear about kfc arrival in Bangalore?

o Through
advertisement
o Through
friends/family
o Internet
o Saw one of its
location
o Others
10. Why did you first visit?

o Referral
(friends/family)
o To try something
new
o Accompany others
o Brand name
o Location
o Others

11. What is your major reason for patronage?

o Quality of food
o Menu is different to
others
o Price is affordable
o Convenience of
location
o Dining environment
o Brand
o Excellent service

12. Please rate the following factors which could have influenced your buying decision at kfc
(Most likely – 5, likely – 4, Neutral – 3, Unlikely – 2, Most unlikely – 1)
o Price
o Food quality
o Brand name
o Family/friends
o opinion

13. How satisfied are you with kfc compared to other fast food restaurant?
o Highly satisfied
o Satisfied
o Neutral
o Highly dissatisfied
o Dissatisfied
14. Please rate your satisfactory level based on the following; price, quality, brand and taste
experience
o Price
o Quality
o Brand
o Taste
o experience

15. In terms of value for money what is your level of agreement with the following
o The food is great
o value for money
o Prices are higher
o compared to others

16. What is your major expectation of an international fast food restaurant?

o Superior
quality
o Excellence
service
o Value for
money
o Others

Please rate your level of agreement with the following statement

17. Foods in KFC are better than others?

o Strongly
agree
o Agree
o Neutral
o Disagree
o Strongly
disagree
18. Quality is the same every time?
o Strongly agree
o Agree
o Neutral
o Disagree
o Strongly
disagree

19. Brand is your number one reason for purchase?

o Strongly agree
o Agree
o Neutral
o Disagree
o Strongly disagree

20. KFC entrant has influenced the way others do business?

o Strongly
disagree
o Agree
o Neutral
o Disagree
o Strongly
disagree