Report on KFC in Bangladesh

Submitted to:

Ms. Rumana Anam

Adjunct Faculty
School of Business

Submitted by:

Md. Al-Amin 141011011

Md. Terben Hossain 141011119
Atikur Rahman 141011025
Md. Farhad Reza 141011204
Shaheda Arobe 141011083

UNIVERSITY OF LIBERAL ARTS BANGLADESH

Date: July 27, 2015

1
Date: July 27, 2015

Ms. Rumana Anam

ULAB School of Business,
University of Liberal Arts Bangladesh (ULAB)

Subject: For the Acceptance of the Term Paper

Dear: Ms. Anam

With due respect and humble submission, we the students of course: BUS 205, section: 01 and
submitting our report on “KFC Restaurant in Bangladesh”. It’s our opportunity to inform you that we
have completed our report under your course guidance amid your kind hearted direct supervision.

In preparing this report, we have tried our level best and worked sincerely and made it structured as
well as possible. We fervently hope that this report will help us for our future.

Sincerely yours,

Md. Al-Amin (141011011)

On behalf of the group.

Other members are:

Atikur Rahman (141011025)
Md. Terben Hossain (141011119)
Md. Farhad Reza (141011204)
Shaheda Arobe (141011083)

2
TABLE OF CONTENTS

SL CONTENT PAGE

0 EXECUTIVE SUMMARY 4

1 INTRODUCTION 5

2 BACKGROUND
5

3 HISTORY OF KFC
6

4 OBJECTIVE
8

5 SCOPE
8

6 METHOLODOLOGY
9

7 LIMITATIONS
9

8 ENVIRONMENT OF KFC
9

9 UNIQENESS OF THE FIRM

10

10 RECENT PROBLEM OF KFC

11

11 SWOT ANALYSIS OF KFC

12

12 FINDINGS
15

13 RECOMMENDATIONS
15

14 FOOD ITENS & PRICE

16

15 CONCLUSION
17

3
EXECUTIVE SUMMARY

This report responds to the recommendation of honorable teacher “Ms. Rumana Anam” who is
our instructor for “Business Communication”. We are thankful to her for the guidance she
provided us all the way in preparation of this report.

As we have prepared our report of KFC. It was a nice experience to spend there 4 weeks as an
apprentice. Although 4 weeks period is not enough to learn all practices performed by company
because there is a lot to learn but we got be familiar with about all practices with the help of
whole staff. While studying their system we came to know their policies their history and their
corporate profile. We came to know about the rules and regulations of the management that are
being followed. It was a nice experience of doing apprenticeship there due to their full
corporation.

For the preparation of this report we interviewed the manager of KFC who provied information
about KFC at Dhanmondhi in Bangladesh. We also interviewed some customer to know about
their perception about KFC. We also looked for their ads & website so we also used our personal
observation as a source. We consulted different books& journals for the purpose of our analysis.

In the global market increase the demand of hygienic food, KFC is trying to do some
contribution in its industry. This report has some important parts. First part is introduction.
We’ve discussed the objective of the study, methodology and limitation of the study. We’ve also
discussed the company overview, environment and competitors of the firm, a recent problem
faced by the firm, and we also developed a SWOT analysis. The SWOT analysis of KFC at
Dhanmondhi makes use of the understanding of the marketing environment in its examining of
opportunities and threats. Findings, recommendation and appendix are included in chapter three.
And lastly we draw a conclusion of this report.

4
INTRODUCTION

Now a day, the food choice of the people of Bangladesh is changing. Today people like fast food
a lot. Whenever we talk about fast food, the first choice that comes to our mind is KFC. KFC is
known for its uniqueness in fried chicken. They use a secret recipe to make their chicken tasty
and crispy. Their employees are not allowed to share their recipe with anyone. And they have to
maintain a specific quality in their food. So they offer hygienic food to their customers. As a
result they have been able to grab a very good number of loyal customers. They rely on this food
brand. So parents allow their children to enjoy KFC food without any doubt. Now the young
generation has become their main target group. Whenever they offer any new item or make any
special offer, they keep this customer segment in their mind.

BACKGROUND

K.F.C is an American based company. It was established in mid fifty when Herland Sanders
conducted business in United States with prospective Franchises about his colonel Sanders recipe
K.F.C. He has also succeeded in establishing a number franchises in all over the world. The
minority of KFC’s restaurant in Mexico & Poverto Rico were company owned. However, KFC
had established 21 new Franchises in Mexico by the end of 1993. Now it has nearly 13000
outlets all around the world. KFC is a fast food industry. It is introduced in Pakistan round about
2 years ago. Firstly, KFC opened in Karachi and then after in Lahore. KFC has two branches in
Lahore, one is Garden Town and other is Cavalry Road.

5
KFC Corporation based in Louisville, Kentucky is the world’s most popular chicken restaurant
chain, specializing in original recipe, extra crispy a dcolonel’s crispy strips with home styles
slides. Everyday 8 million customers are served around the world KFC Menu Everywhere
includes original recipe chicken made with the same great taste Harland Created more than a
half century ago.

KFC is part of Tricon Global restaurants, which is the world largest restaurant system with
nearly 30,000 KFC. Harland started LFC back in 1952 at the ripe age of 62. His recipe for
the best chicken in the world was made with a special cooking process and a secret blend of 11
herbs and special the same secret blend that is used to dayin KFC original recipe chicken. Today
KFC has more than 11,000 units in over 79 countries. Every week nearly 69 million customers
come through KFC do for the chicken.

HISTORY OF KFC
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 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 foodservice 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 lick in’ good” chicken dinners are served annually. And not just in America.
The colonel’s cooking is available in more than 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. At 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 Green wood, Ind. He held a series of jobs over
the next few years, first as a15-year-old streetcar conductor in New Albany, Ind., and then as a
16-year-old 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

6
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.

Kentucky Fried Chicken in Bangladesh: Transcom Foods Limited, a concern of Transcom

Group is the franchisee of KFC in Bangladesh. The first ever KFC restaurant has been opened in
September at Gulshan, Dhaka with a seating capacity of 178 person.

Stands for high-quality fast food in a popular array of complete meals to enrich the consumer’s
everyday life. KFC strives to serve great-tasting, “finger lickin’ good” chicken meals that enable
the whole family to share a fun, uninhibited and thoroughly satisfying eating experience, with the
same convenience and affordability of an ordinary Quick Service Restaurant. TFL successfully
launched the flagship KFC on South Avenue, Gulshan in September 2006. It has already won
over the heart of the Dhaka crowd with its great tasting food, high standard of hygiene,
cleanliness, terrific interior and of course excellent and affordable pricing. Following its
enormous success in Gulshan, the second outlet was opened in Dhanmondi in November 2008,
and yet another in Banani in December 2008. Most recently TFL has opened two outlets at
Eskaton on February 2010 and another one is in Paltan.

Branches:
1. Gulshan: Bir Uttam Mir Shawkat Ali Sorok (South Avenue), Gulshan1, Dhaka.

2. Dhanmondi: H#84, R#7/a, Sat Masjid Road, Dhaka.

3. Banani: Bulu Ocean Tower, Kemal Ataturk Avenue, Dhaka.

4. Baily Road: 10 Natok DSarani, New Baily Road, Dhaka.

5. Eskaton: 400 New Eskaton, Dhaka.

6. Chittagong: Amin Centre, Laikhan Bazar.

7
Geographical location:

OBJECTIVES
Every report has some objectives and to fulfill those objectives people do the report. As our
course teacher had given us to do a report on KFC, our first objective was to do the proposal
report successfully. To do it successfully, we had to make a study on the firm. The objectives of
the study are given below-

 To know about KFC broadly

 To have a specific knowledge about the company
 To know about their establishment period, products & services
 To know the name of companies from which they are facing tough competition
 To know about their branches located inside & outside Dhaka
 To form a SWOT analysis of the firm
 To draw a overall picture of the company etc.

These were the main objectives of our study.

SCOPE

There are lots of scopes of KFC in Bangladesh. Food facilities, delivery facilities, online
facilities, good communication with customer, high security etc.

8
METHODOLOGY
It deals with the process of doing the proposal report. Here we mainly followed secondary data
collection process. We arranged our information from the web. But some information like
number of employees, products and services etc was not available in the web. To collect that
information, some of our group members went there personally and collect the required
information through primary data collection process. In our proposal report we used times new
roman style. And normal font size was 12 although it varied in the heading and sub-heading part.

LIMITATIONS
Every study has its own limitations. While doing the report we also faced some limitations. They
are given below –

 Different class schedule of group members

 Lack of space in the discussion room
 Lack of facilities in the lab
 Lack of necessary information in the web
 lack of convenient environment in the discussion room
 lack of group discussion because of mid- term examination
 Reluctance of KFC employees sharing their information etc.

These are the limitations that we faced while doing the report.

ENVIRONMENT OF KFC
 Internal environment

Internal environment is the part of the business environment which refers to the company’s
internal components like owner, employee etc.

 Owner: The Company was founded as Kentucky Fried Chicken by Colonel Harland
Sanders in 1952. Now Rojer Eaton is the president of the company. And Harvey R.
Brownlea is the CEO of company. Transcom Foods Limited, a concern of Transcom
Group is the franchisee of KFC in Bangladesh.

 Employee: KFC have almost 24000 of employee as the part of internal environment.

 External environments

External environment refers to those business environment components which are outside the
company. In a word where the company run their business. Like the consumer. Govt. etc

9
  Consumer: KFC generally target the upper middle class people and young people of
Bangladesh. Young people are the main consumer of the KFC.

 Government: Government is also is the part of the external environment. Govt.

influences the company through different regulation and rules.

 Competitors: Every organization has some competitors who provide similar goods &
services. KFC also have some competitors in the food market. Although KFC access a
unique place in the market because of its secret recipe and brand name, it faces a tough
competition by other food brands. Those brands may not have the same recognition and
taste as KFC, but they attract a good number of customers because of their low price. The
main competitors of KFC are – BFC, CFC, DFC, FFC etc. There are some other
companies like NFC and RFC who are also involved in this competition.

In the metro shopping mall, there is also a KFC (king fried chicken).some people
consider it as real KFC.

These fast food companies provide customers with similar types of fried chicken for low
price. The chicken may be different in taste but they use the same formula to make their
fries crispy as KFC does. As a result, they become successful in attracting customers.
Moreover, as these companies provide fried chicken for low price, they get a huge
number of customers. In KFC the lowest price for fried chicken is 280 taka where in BFC
it is only 80 taka. So middle class people our country prefer BFC to KFC. And a huge
number of students, who love fried chicken, are not able to spend a lot of money as their
pocket money is limited. They are regular customers of local food brands as they can
afford KFC visit occasionally.

UNIQUENESS OF THE FIRM

There are some unique qualities in KFC which make the firm different from others. They are
given below-

 High quality product

 Assurance of purity
 Customer loyalty
 Unique taste
 Customer care
 Employee loyalty
 Secret recipe
 Popular among young generation
 Faith and trust of people

10
  Recognized brand etc.

These are the major uniqueness of the firm that makes it different from other firms.

RECENT PROBLEM OF KFC

A rumour that KFC uses mutated chickens with extra limbs is going viral on Facebook and Twitter.

A story citing a University of New Hampshire study claims that the federal government forced
KFC to shorten its name from Kentucky Fried Chicken when it stopped using real chickens and
started using these tube fed genetically modified organisms. The post, which has now been
shared thousands of times on Facebook and Twitter, was published on the viral news site Daily
Buzz Live, pumping new life into a rumour that has been circulating for more than a decade.
There is absolutely no truth to this ridiculous urban legend, which has been debunked many
times, KFC spokesman Rick Maynard told Business Insider in an email. KFC uses only top
quality poultry from trusted companies like Tyson and Pilgrim’s Pride the same brands
customers know from their local supermarkets.But apparently, a lot of people find no reason to
question the information that’s making the rounds on social media.

Most recently there rises a question about the quality of food in KFC due to having cockcrows in
the burger of KFC. This affected in the consumer loyalty of KFC. Although KFC faced the
situation cleverly, people are still are not sure in the quality of KFC in Bangladesh. These have
an impact on sale of KFC.

11
SWOT ANALYSIS OF KFC
The acronomy stands for strength, weakness, opportunities and threat of an organization the
SWOT analysis of KFC is given below-

 Strengths

Strengths can be found internally in a company and can be used to the company’s advantage.
The strengths identified are as follows:

 KFC’s secret recipe

The secret recipe has long been a source of advertising, and allowed KFC to set itself apart
from other food brands.

 Recognition and reputation

KFC’s early entrance into the fast-food industry in 1954 allowed KFC to develop strong
brand name recognition and a strong foothold in the industry. The Colonel is KFC’s original
owner and a very recognizable figure, both in the U.S. and internationally, in their new logo.

 Traditional employee loyalty

As it is a renowned food brand, it has maintained a long and strong network with their
employees. In return they get a very strong employee loyalty which is known as their unique
company asset. They provide their employees with various types of facilities other than
salary (long term contract, recognition, management training.) etc.

 Improving operating efficiencies by reducing overhead and other operating costs can
directly affect operating profit

Due to the strong competition in the food market, the fast-food chains are reluctant to raise
prices to increase profit. Many of the chains are turning to operating efficiencies to increase
profit. For many companies, operating efficiencies are achieved through improvements in
customer service, cleaner restaurants, faster and friendlier service, and continued high-
quality products.

 Emotional benefit because of recognition

12
As KFC is a very well known food brand in the market, it was able to create a very loyal
group of customers who rely on their food quality. This group of regular customers serves as
an asset for the company.

 Strong and experienced management

As KFC in BD is a franchise company, so it follows a systematic management system. They

are bound to follow a specific system. They can’t change it whenever they want. It has been
followed successfully for couple of years.

 High quality and 100% pure product

As it follows a very systematic and secret recipe, they are able to maintain a high quality in
their food. As it is a franchise company, so they are not allowed to change or share the
recipe. They are bound to maintain a specific quality level in food making.

 Weaknesses

 KFC has a long time to market with new products

Because of the nature of the chicken segment of the fast food industry, innovation was never
a primary strategy for KFC. However, during the late 1980’s, other fast food chains began to
offer chicken as a menu option.

 High production cost comparing to the competitors companies

KFC has to maintain a quality level in food making. So their production cost is higher then
their competitors. To gain their production cost they ask for a pretty much higher price for
their fast food.

 No access to home service

KFC do not offer any home service like pizza hut and dominos, as a result they loss a good
number of customers. Sometimes people want to enjoy the food in their own home with all
of their family members. Sometimes people also get tired and do not want to spend the time
to travel to the restaurant.

 Lack of branch

KFC have only a few branches in the Dhaka city. They do not have their branch in shopping
mall like Bashudhara city like other fast food brands like BFC or FFC. As they have only
few branches in the renowned area, so they loss a huge number of customers residing in
other parts of Dhaka.

 Opportunities

13
  Increasing demand

The demand for fast food is increasing day by day. Formerly, people used to have it
occasionally. Now they like to have it regularly. Even in occasions or party, they prefer fast
food to desi food. So, it is a very good opportunity for the fast food companies to sell their
products to customers.

 Fondness of youth

Today’s youth are getting westernized. They are following all of latest western fashion.
They are following their food habit too. Now they like fast food very much. All of the fast
food companies are using this opportunity very intelligently.

 Daily needed product

Now the children as well as their parents are passing a quality time of the day outside their
home. All of the food companies can take advantage of this opportunity. As now people
love fast food more, so the fast food companies are enjoying the most benefits of this
opportunity.

 Threats

 Increasing competition and rising sales of substitute products

Faced by slowed sales growth in the fast-food industry, other segments of the industry have
turned to new menu offerings while KFC still offers its limited choice of chickens.

 Changing preferences of consumers

During the 1980s, consumers began to demand healthier foods and KFC was faced with a
limited menu consisting mainly of fried foods. In order to reduce KFC’s image as a fried
chicken chain, it changed its logo from Kentucky Fried Chicken to KFC in 1991.

 Inflation in local market

When the real value of money decreases it creates inflation in the economy. During
inflation, people have less money to spend as well as the price of raw materials also rises. It
creates threat for the overall economy. As a result, the food market also gets affected by it.

 Sharp rise in the production cost

Rise in the price of raw materials increases the total production cost. So when the price of
raw materials increases, KFC needs to increases its price. As a result, consumers become
less interested to spend a huge amount of money on fast food.

 Instability of the price of raw materials

14
 In our country the price of chicken is not stable. So the fast food brand like KFC faces a
problem in setting their menu. The price of raw materials changes almost everyday, but they
can’t change their price list every day.

FINDINGS

While doing this report, as we have done a research on KFC we get familiar with some of the
problems of the company.

 High price: KFC has set a very high price for their fast food. So the middle class people
of our country can’t even think of going to KFC. Children of middle class families treat it
as a dream coming true whenever they get chance to go to KFC. They also loss a huge
number of customers who can’t afford KFC visit regularly but they enjoy it occasionally.

 Limited choice: KFC is famous for its unique taste but it offers a very limited number of
choices in drinks and fried chickens for a long period of time. They do not change their
menu regularly like pizza hut.

 Lack of special offer: KFC hardly give any special offer like “happy price menu” for
students and kids. In India these types of offer is available for the youth. They do this
type of things to attract and create a new customer segment.

RECOMMENDATIONS

In the findings we have mentioned a number of problems about KFC in bd. here are our
recommendation about solving the problems. They should try to –

 Reduce their price a little bit

 Increase their number of branches
 Offer home service to the customers
 Offer happy price menu occasionally
 Offer different flavor of fried chicken

15
FOOD ITEMS OF KFC

NAME Price/Unit

Pepsi Tk ৳240.17 / 2 Liters

7up Tk ৳240.17 / 2 Liters
Bun Tk ৳73.00 / 1 Bun
Fries Tk ৳156.95 / 1 Large
Coleslaw Salad Tk ৳142.35 / 1 Large
Fried Chicken Tk ৳266.45 / 2 Pieces
Burger - Chicken Zinger Tk ৳288.35 / 1 Burger
Burger - Hot Zinger Tk ৳302.95 / 1 Burger
Burger - Veggie Feast Tk ৳251.85 / 1 Burger
Snack box (1 pc chicken + fries) Tk ৳204.40 / 1 Box
Zinger meal (1 x burger+ fries+ drinks) Tk ৳448.95 / 1 Meal
Hot Zinger meal (burger+ fries+ drinks) Tk ৳456.25 / 1 Meal
Boneless Chicken strips with dip Tk ৳478.15 / 6 Pieces
Hot Wings Tk ৳346.75 / 6 Pieces
8 Pieces Chicken Bucket (Hot & Crispy) Tk ৳1018.35 / 1 Bucket
12 Pieces Chicken Bucket (Hot & Crispy) Tk ৳1529.35 / 1 Bucket
8 Pieces Chicken Bucket (Fiery Grilled) Tk ৳1091.35 / 1 Bucket
12 Pieces Chicken Bucket (Fiery Grilled) Tk ৳1602.35 / 1 Bucket

CONCLUSION
In this assignment, we have talked about a famous food brand- KFC. Here we talked about their
background, environment, competitors etc. we also made a SWOT analysis which enabled us to
know about their strengths, weaknesses, opportunities and threats. Based on this segment, we
also find out some of their problems and made recommendation. In one part, we made an
analysis about the recent problem faced by them. Although they are famous for their quality, it is
obvious to have some problem too. They should try to solve their problem as soon as possible
and continue to serve their customers with great quality.

16
END

17