Introduction of Company

KFC Corporation, based in Louisville, Kentucky, is the world¶s most popular chicken restaurant chain, specializing in Original Recipe ®, Extra Crispy

, 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® chicken²made 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 products²from 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 ³home meal replacement´ ± selling complete meals to harried, timestrapped families. He called it, ³Sunday 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 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 ³Boneless 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 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 ³finger 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-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 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 specialized in chicken and they says,

³No body¶s cooking like KFC today and we are the chicken experts´ ³There is no competitor for spicy chicken which is made by KFC´

Introducing New Product

Pricing Issues
Manufacturing cost 5% marketing cost (PER UNIT) Total cost 15% G.S.T +15% RETAIL MARGIN Total retail Price RS. 100/RS. 5/RS.105/RS.25/RS.140/-

Mission statement
³To be the leader in western style quick service 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.

KFC offers its signature products in India too! KFC has introduced many offerings for its growing customer base in India while staying rooted in the taste legacy of Colonel Harland Sander¶s secret recipe. . China. a company that owns other leading brands like Pizza Hut. KFC is growing rapidly and today has presence in 11 cities with close to 50 restaurants. Values of KFC  Focus all our resources to our restaurants operation because that is where we serve our customers. For the vegetarians in India.KFC India KFC is the world¶s No.  Reward result and not simple efforts.  Commit ourselves to the highest standard to the personal and professional integrity at all times.  Reward and respect the contributions of each individual at KFC. honest and direct in our dealings with one and other. Veggie Snacker and Veg Rice meals. KFC also has great tasting vegetarian offerings that include the Veggie Burger. KFC is the largest brand of Yum Restaurants. the spicy. Australia.  Encourage new and innovative ideas because these are the key to our competitive growth. juicy inside´ Hot and Crispy Chicken. A&W and Long John Silver. Malaysia and many more. USA. Renowned worldwide for it¶s finger licking good food. In India. Its signature dishes include the ³crispy outside. Toasted Twister. Taco Bell.1 Chicken QSR and has industry leading stature across many countries like UK. South Africa.  Expand and update training with time and be the best we can be and more.  Be open. juicy & crunchy Zinger Burger. Chicken Bucket and a host of beverages and desserts. flavorful and juicy Original Recipe chicken.

profit and size of organization. . Dedicate ourselves to continuous growth in sales.  Work as a team.

Situational Analysis Current Products 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 .

With this strategy.S. suppliers decide to raise their prices. Domino's and Subway. especially as individual buyers. have almost no bargaining power because if only one customer threatens to no longer eat at KFC.S. 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.S. This is a brilliant strategy because the supplies that KFC would otherwise need to import from the U. While small Neighborhood restaurants generally have low barriers to entry. and if the U. such as McDonald¶s. In terms of food. especially children who are used to going to KFC as a treat or reward from their parents or grandparents. like the buyers. Also. and any new fast-food entrants would just be presenting something very similar to what¶s already there. upon its move into India. While there are enough people in urban India for any restaurant to survive. KFC. The suppliers. KFC also began helping local suppliers by giving them technological support to improve their products. have very little bargaining power. can now be obtained domestically. In terms of human resources. lowering the supplier bargaining power. there is already a large variety in the numerous western-style dining places in India. Pizza Hut. it is not difficult for a fast food restaurant to enter the market. urged many of its U. labor cost is extremely low because the supply of non-skilled workers great . KFC can easily switch to the local suppliers. KFC holds the first-mover advantage into the 'non-veg food specialty food segment' that gives them free reputation. KFC created competition among its suppliers. This gives us a brilliant strategy. The brand name is already established. However. Buyer/Supplier Bargaining Power The customers of KFC. suppliers to also extend branches into India. are not going to want to go to other restaurants they¶ve never heard of.Entry For the current Indian market for fast food. the store is not going to lower its price because the cost of losing one customer is not very great. Customers. these are the barriers to entry for similar restaurant businesses to enter the fast-food chain market.

For example. and sandwiches. The primary reason is that their core products are different. burgers and fries. which make them complements to each other. chicken. Indian 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. Rivalry Unlike what one would expect. Pizza Hut. While other fast foods serve as substitute to KFC. so tickets to these tourist spots are also complementary goods because the more people tour these attractions. Substitutes and Complements As mentioned above. in this case. Even foods from street vendors count as substitute goods. in that they sell.KFC¶s price rises as well. respectively. as families could choose any one of these over fast food for a meal. The substitute products.exceeds the demand for them. a full meal . Traditional Indian dining. pizza. Though they are competitors. if KFC raised its price for chicken by a small amount. Domino's and Subway. KFC is able to have a very tight control over its prices and expenditures. and sandwiches. KFC has little rivalry with similar fast-food chains in India. the more customers KFC will get. KFC also sets up stores located near popular tourist attractions. These substitutes are definitely considered healthy as compared to the fast food chains. and the same can be said of the quantity sold of these products. pizzas. these restaurants have such different target customers that the fluctuation of price for one restaurant is not going to affect the others. With so little buyer and supplier bargaining powers. there are a few major competitors in the fast-food industry in India for KFC. would be burgers. For example. and grocery stores with ready-to-eat foods are also substitutes. In addition to that. home-cooked meals. If the general price of fast foods goes up. namely McDonald¶s. they can also serve as complements for fast foods as a whole. their primary products differ greatly from each other. as in they sell different kinds of fast foods with very different tastes and styles.

drop the covered chicken pieces into the shortening and lock the lid. Roll the moistened chicken in the flour mixture until well KFC ranges about Rs. The drastic difference in price assures no price competition between these restaurants. In a separate bowl. When pressure builds up cook for 10 minutes. 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. . 100. In a small bowl. Dip each piece of chicken into the milk until fully moistened. whereas a full meal at Pizza Hut can cost over Rs. In groups of four or five. 300. combine the egg and milk. combine the remaining six dry ingredients.

DEMOGRAPHICAL BASIS In demographics their first segment is consisted of the income factor i. average income and low income. pamphlets and through other promotion strategies Segmentation KFC has divided the market of India into distinct groups of customers with different demands. In India the niche marketing is being used for particular classes of people. . Following are the different possible segments in this regard.They promote there products through billboard. They promote their products through special packages. taste and price.  Demographical  Behavior  Geographical By using these three bases they segmented the market as under. tastes and behavior who require separate products or marketing mix. They have made segments of the market on the following bases. high income.Promotions In India KFC not advertise there products too much because people KFC due to its reputation in other countries. BEHAVIOR In behavioral aspect they segmented the market on the basis of quality.e.

middle class. 8. 2. Occupation: By profession also everyone can use this product means businessman student workers and other peoples. Taste conscious  Quality conscious  Class conscious  Combination of price and quality GEOGRAPHICAL BASIS On the basis of the geographical factor we have divided our market in three main segments. . Income: Everyone can use the KFCservice upper and middle class . Attitude: When the customers once buy this product after that they can use the product continuously. 3. 5. Lifestyle:This product is used in every level of social class like upper. Education: It has no need more education that why the person who know something can easily enjoy with this product. Age: age limitation for using this product above 15 4. Purchasing decision: Often KFC changes the purchasing decision of customers because of its good attributes. 6. 7. Family life cycle:KFC is suitable in every stage of life like single married couple and also those who have children can use this product. 9. Gender:KFC is for each gender both male and female.  Urban areas  Sub urban areas Profile criteria: 1.

It means that different marketing mix will be used for different age groups. Attitudes The attitudes of the public is very good people like our this new product like others.10.  In Urban Area there lived people from every walk of life and profit generation is easier than in Rural Areas. . Geographic region: Geographically KFC is used in every part of the country as well as all over the world. Product positioning Customer perceive this product as a unique product that other are not giving . Market Coverage Strategy KFC will be using differentiated market coverage strategy. and some make impulse decision as they saw it .  Normally people of rural areas don¶t take fast food. TARGET MARKET FOR FAST FOOD After evaluation of various segments. On the other hand people of urban areas take fast food. KFC has decided to target the market of Urban and Sub-urban Areas of Pakistan. Purchasing process: Many people come from home to eat this .  Income of the people of urban areas is normally high and they can afford to purchase such products.  People of Urban Areas are more quality conscious than the people of Rural Areas. Product usage  People are educated and they want variety in their diet. which are slightly higher in price as compared to prevailing prices of local food in the market.

 Population density is higher in Urban Areas as compared to Rural Areas. what they are doing? KFC adopted such sort of strategy that there is no competitor for spicy chicken. KFC beats its competitors through the revising marketing strategy at every movement but the main competitor of KFC areMc Donald COMPETITIVE ADVANTAGE KFC Spicy Products Indian people like spicy products instead of boiled food Arabian Rice and Zinger Burger Free Delivery Chicken is eaten by every community Local Staff and Highly Qualified because local staff can better deal with the customers KFC uses Top to Bottom and Bottom to Top Approach in Management. Competitors You cannot enjoy the business without competitors. . which is made by KFC. so the number of customers are more in Urban Areas. KFC is Co branding with Walls McDonalds Burger and French Fries Big Mac Charges for home delivery Beef is banned in some community Its Staff consist of simple Graduates and give them training McDonalds Uses Top To Bottom Approach. No organization can afford to ignore there competitors. No such Case. It is very important for a marketing managers to monitor the activities of there competitors.

as they affect people and organisations on a larger scale. These buyers have a need to satisfy their needs through exchange (Graphic 1). (Kotler et al 2003). A company such as KFC usually cannot influence trends in the macro environment. as all these components have a direct or indirect impact on KFC¶s success.marketresearch. but also threats.Economic Analysis of Market A market in this context refers to a number of all actual and potential buyers of a product (Kotler et al 2003). (http://www. people have. . These needs make up the demand for particular products and Information Graphic 1 Communication Industry (a collection of seller) Product / service Money Market (a collection of buyers services. It explains why Australians today want to eat healthy and nutritious-rich food in order to keep themselves healthy and that KFC must adjust their range of product and their company image to appeal to these new expectations. Macro environment KFC operates in a larger macro environment of forces that creates opportunities. Changes in the below described components over the last couple of years have led to big changes in people¶s attitudes towards healthy Several components must be considered.

Three major components influence KFC¶s micro environment: Consumers Micro Environment Graphic 3 (Source: Kotler et al 2003) . There are six major macro environmental forces KFC has to take into account. and on which KFC has an impact. Micro environment The microenvironment consists of all forces that are close to KFC. (Kotler et al 2003). They directly affect KFC¶s ability to serve its KFC Company Competitors customers. KFC has to carefully examine macro environmental trends and must create competitive responses to such trends.However.

. KFC can differentiate itself from most competitors and will gain a competitive advantage. with the introduction of a new and healthy product range. females. KFC¶s main competitors are fast food chains such as McDonald¶s and Domino¶ as they have already successfully introduced their Salads plus line (http://www. the product range KFC offer should appeal to as many people within this consumer market as possible. KFC faces a wide number of direct and indirect competitors. McDonalds¶s in particular is a direct competitor. to ensure that the maximum amount of products can be sold. The characteristics of these individuals and a segmentation of them are discussed later in this report. KFC¶s products are bought by individuals (males. Customers KFC¶s customer market consists solely of the consumer market (Kotler et al 2003).theage. which directly targets µhealthy food¶ conscious Indians. and families). However.Competitors Because the fast food market in India is highly competitive. Therefore. All this competition makes it quite difficult for KFC to maintain or even broaden their customer base. But. which are already well established throughout India. there are a number of other competitors that is also focusing on µchicken¶ types products. singles.

KFC compete there competitors by providing good services They must hired the hard selling persons to market their product in the market and motivate their employees for the sake of organizations and employees do well and they compete there competitors KFC has quality products and through these quality products they compete their competitors . Huge Marketing. Budget. No Home Delivery How they compete their competitors? It is found that KFC compete its competitors by five ways: KFC compete its competitors through marketing strategy They offered different packages at different events like ramdan offer. Attractive Outlets. More entertainment for kids Weaknesses: Same type of Menu.Strengths and weakness of competitor Strengths: 38 products. midnight offer etc.

Governments also control the license given for open the fast food restaurant and other business regulation need to follow such as for a franchise business.1%. The GDP. Currently government are controlling the marketing of fast food restaurant because of health concern such as cardiovascular and cholesterol issue and obesity among the young and children in the country. Economic: Though for last 1 year their was economic slowdown all across the globe but the sales of KFC and other fast food chains did not slow down to that extent that of other sectors in. Socio cultural: India is the second most populous nation in the world with an approximate population of over 1. India has the third highest GDP in terms of purchasing power parity just ahead Japan and behind U.5 billion a year earlier.S.8%.1billion people. The social trend toward fast good consumption is changing and India has seen an increase of 90% fast food .965 trillion U. This will lead to higher buying power in the Hands of the Indian consumers. Good relationship with government in giving mutual benefits such as employment and tax is a must for the company to succeed in any foreign market. The GDPper Capita (PPP) was 2700 U. So taking into considerations the economic factors of India KFC is safe. and China. This population is divided in the following age structure: 0-14 years ± 31.real growth rate in 2007 was 8.S.7%.1% and 65 years and above ± 5.Environmental factors and opportunities Political : The operations of KFC are affected by the government policies on the regulations of fast food operation. dollars as estimated in 2008. The GDP (Purchasing Power Parity) is estimated at 2. Foreign direct investment rose in the fiscal year ended March 31 2007 to about $16 billion from just $5. There has also been a continuous increase in the consumption of fast food in India. dollars in the year 2010. India¶s per capita income is expected to reach 1000 dollars by the end of 2007-08 from 797 dollars in 2006-07.S. There is a continuous growth in per capita income. The only danger to it will be if there is a terrorist attack in India and the victim is KFC. 15-64 years ± 63.

Thus this shows a positive trend for fast food industries in India. For a fast food restaurant. With the lower rates and increase technology the fast food counters are attracting youth by giving them attractive deals. Imagine millions of people purchase from fast food operator and how is the impact to world environment by throwing away those hard to recycle packaging. Technological: The Indian fast food Industry is heating up with a lot of foreign players entering the Indian market. For example in inventory system. KFC and Domino¶s pizza. KFC always had been critics for world environmentalist. Large-scale plantation has effect the environment and lost of green forest opening for plantation activities. In America. Implementation of technology can make the management more effective and cost saving in the long term. Vegetarian environmentalist criticizes the fast-food giant for cruelty to animals and slaughtering. potatoes and chicken. technology does not give a very high impact on the company and it is not a significant macro environment variables. supply chain management system to manage its supply. easy payment and ordering systems for its customers and wireless internet technology. KFC once had been criticized for being insensitive to pollution because of using ne based packaging for its food products.g. For e.2007.consumption from the year 2002. once KFC want to introduce whale burger causing uproar because whales are endangered species. . Before using paper packaging. The technological knowhow and expertise will also enter the Indian market with an increase in competition. Environmental: As one of world largest consumer of beef. This increase is far greater than the increase in the BRIC nations of Brazil (20 per cent). Russia (50 per cent) and China (almost 60 per cent). This will also make customer happy if cost savings results in price reduction or promotional campaign discount which will benefits them from time to time. This is because high consumption of beef causing the green house effect by methane gasses coming from the cow¶s ranch. However KFC should be looking to competitors innovation and improve itself in term of integrating technology in managing its operation.

but careful usage of world resources for sustainable development and care for environment safety and health for our future generation. labor and employment laws and quality & environment certification (such as ISO) in which the outlet has been certified.Our world is getting concern on environment issue and business operating here should not just care for profit. there are many regulations and procedures that KFC should follow. Critics and concern from all public or activist should be review and support if necessary to ensure we play our social responsibility better. KFC should protect its integrity and consumer confidence by ensuring all materials and process are as claimed or must followed. tax requirement. Legal factors: As a certified fast food operator. Other legal requirement that the business owner should follow as stipulated in laws are such as operating hours. . The legal requirement is important because the offenders will be fined or have their business prohibited from operating which can be disastrous. For example is the Halal certification that becomes a concern to Muslim consumers. business registration.

As it is a fairly new product it comes in the category of the Question Mark in the BCG Matrix. Company may decide to completely remove this product from the market if it does not do well soon and start bringing in revenue.KFC India . As KFC is known more for its non-veg food. It has a low market share thus brings low revenue. It has a low market share and although low on expenditure (as company does not spend on its promotion). This product is individually not bringing any profits and is a cash drain for the company. KFC is advertising a lot to popularize this product so there is a lot of expenditure on it. DOG: KFC¶s Veg Thali comes under this category. this also results in low demand for this item. Although company had launched this product much earlier. The product is mostly CASH NEUTRAL. it does not bring in much revenue as demand is low. it has still failed to become a success. They have also tried to come into the beverages market by launching its new brand of shakes called KRUSHERS. .BCG Matrix Crispy Boneless Chicken Krushers ? Veg Thali Chicken Bucket Boston Consultancy Group (BCG) Matrix Question Mark: Currently KFC have launched a new product in the market.

CASH COW: KFC¶s Chicken Bucket is the most successful product of the company. But it also has high developmental expenditure involved. The development and other expenses are also low and thus this product is a CASH SIRPLUS for the company. The profit therefore is generally not very high brought in by this product. This product is CASH NEUTRAL for the firm. It has a high market share and brings in high revenue. The company is trying make this product a cow as well. It has the highest market share amongst all the other products. It has good demand in the market and brings in huge sales revenue. by reducing the expenditure . STAR: The star product of the company is its crispy Boneless Chicken.

and customer service. It generates $1B revenue each year.  Ranks highest among all chicken restaurant chains for its convenience and menu variety.  Employee Loyalty: Employee Loyalty is one of the major strengths of KFC. It is even more recognised in other markets outside India. The brand is recognised and trusted in India for its quality products. KFC customer base remained loyal to the KFC brand because of its unique taste. where the company is among the leading fast food giants. . It therefore has a good head start and enjoys a good chance of becoming a leader in Indian fast food industry. weakness.Summary of current situation SWOT analysis mean strength. price. opportunities and threats and the SWOT analysis of KFC are: STRENGTHS  Goodwill and reputation: The company certainly has earned a good name and reputation by its previous products and services in the market. The turnover rate in the company is amongst the lowest in the industry.  Customer Loyalty: Despite gain by Boston Market and Chick-fill A. KFC has continued to dominate the dinner and take out segment of the Industry.

 Large Youth population: India has a very large share of youth population a compared to other countries. this is a good news for the company. With more than 70% of the markets in india being unexplored and un organised.  KFC has not yet invested much on R&D. garlic breads to attract more customers. and innovating new products for Indian Markets. the developing countries like India and China promises a good market and generation of demand in the future. This may prove fatal for the company.  India is still mostly a vegetarian dominated cultured society. As the developed markets are mostly saturated. . OPPURTUNITIES  New Markets: Globalisation has opened doors for new markets for the company.  KFC share of Chicken Segment sales fell from 71 percent 1999 .WEAKNESSES  KFC was losing market share as other Chicken chain increased sales at a faster rate.  Huge competition in this segment. peoples taste and preferences and their likes and dislikes. This may reduce the market share of the company. KFC has a good scope of expanding its operations in the country. South India is especially very much so. More than 60% of the population is under the age of 30yrs.  Cross Culture: Generally there is a good acceptance of American culture of fast food in India. People are opening up to fast foods more regularly in their daily lives and not just keeping it a once in a month affair. As the young generation are more open to fast foods and demand it more.  New variety: Company can also come up with new variety in the menu like Pizzas. This may lead to failure of their products as they are not in line with the Indian mind set. to less than 56 percent in 2009 . a 10 -years drop of 15 percent. Thus Indian mindset is fast changing.

McDonald¶s with sales of more than 19 billion in 1999. Currently. company necessarily needs to look at offshore foreign markets to generate sales and keep up the profits. As the US markets are already saturated and leave no or little scope for growth. before they got slaughtered.THREATS  Competition: Competitor companies like McDonalds are fast catching up with the market. Anti-KFC campaigns. accounted for 15 percent of the sales of the nation¶s top 100 restaurant chains. KFC is under massive attacks from animal organisations. questioning the way KFC¶s suppliers are threatening the chicken. such as the one from PETA are affecting KFC¶s brand image in a negative way and result in direct dollar losses. . as less people are consuming KFC chicken  Saturated US Market: Now KFC cannot rely on just its home market to generate sales.  Organisations like PETA People for Ethnic Treatment for Animals have given a bad name to the company which may prove disastrous to the image of the firm.

 KFC open their outlets on reachable places. customer not depend on us. They market their products on different events and in different activities as they are helping SOS village.  KFC is following Niche Marketing and Societal Marketing techniques.MARKETING STRATEGIES OF KFC There are different strategies adopted by KFC for different events. . kids become the future permanents customers and we know very well that without any marketing strategy no marketing program and no product is successful because we depend upon customers.  KFC gives more priority to Family.  KFC possess a western culture because some of the Indian people are also following that culture. According to KFC.  KFC menu consists of more than 30 products.  KFC are moving from Divisional Level to the District level by opening branches  KFC also offer free home delivery.

2. were sent to thousands of schools nationwide. Educational packets. so they enter in the market due to the demand of their chicken products. acquisition. There are 4 P·s of Marketing: 1. including language. Basically. KFC is specially dealing in the chicken products. KFC·s ´All-American salute to Mothersµ national card contest has been KFC·s way of honoring moms and their families for making mother·s Day KFC·s biggest sales day of the year.000 in cash and prizes. PRODUCTION PRICING PROMOTION PLACEMENT Production: Basically the product is anything that be offered to a market for attention. 4. 3. The contest encourages children to creatively express their feelings for their moms by making a homemade card and give them chance to compete for more than $10. history and art exercises highlighting Mother·s Day. those products are: PRODUCTS: .MARKETING Since 1982. KFC target the Asia and east side because they observe that they people are like the chicken products. KFC has the special raspy for chicken products that is why. or consumption that might satisfy a want or need. KFC known as a chicken specialist all over the globe. KFC product variety of product in the chicken. use.

y Original recipe® chicken y Extra Tasty CrispyTM chicken y Hot WingsTM pieces y Tender Roast® chicken y Chunky Chicken pot pie y Kentucky Nuggest® y Colonel·s Crispy Strips® y Honey BBQ sandwich y Original Recipe® Sandwich y Tender Roast® Sandwich y Triple Crunch® Sandwich y Triple Crunch ®Zinger® Sandwich BRAND: There are three brands of the KFC: 1) 2) 3) Taco bell Pizza Hut Long john silvers .

89 Billion Total Retail Sales = $8.1.914 Billion Total KFC Chicken Pieces Sold Annually = 5.89 Billion =$1.51 We assume that Fixed Cost is = $6000000000 Variable Cost Profit Margin is Or Mark Up Per Unit Variable Cost = $675000000 = $225000000(25% of Sales) = $675000000 / 5890000000 = $ 0. KFC prices of products are a bit high according to the market segment and it is also compatible to the stander of their products. Pricing of the product includes the Government taxes and excise duties and then they come at final stage of determine the price of their products. Calculation of the price under Cost Based Pricing Strategy: Total Pounds of Chicken Served in KFC Restaurant Annually = 1.115 Unit Cost = Variable Cost + Fixed Cost / Chicken pieces Sold .9 Billion Sales Price of per Chicken Piece= Total Retail Sales / Chicken Pieces sold = $8. Pricing: KFC during pricing their products keep the different points in the mind like they adopt the cost base price strategy.9 Billion / $5.

Promotion: Promotion is one of the necessary plates in any form of business or in other words you can say that promotion is the key of success.135 Now suppose manufacturer wants to earn 25% mark up on sale.51 3.135 / (1-.135 / 0. KFC also known the importance and significance of promotion so they uses the bill boards the major source of advertisement and one of the most important thing that they uses media especially the newspapers to promote their products.02 = $1.115 + 1. Marketing efforts to be taken by the restaurant: . If you promote your product at the right time.115 + 6000000000 / 5890000000 = 0.= 0. They are also creating awareness among the masses about their existing product range as well they tell us about the future product.75 = $1.25) = 1. The manufacturer mark up price is calculated: Mark Up Price = Unit Cost / (1 ² Desired Return on Sales) =1.

 Paste delivery posters at petrol pumps. as the main target market. colleges. it is the world recognized fast food restaurant all around the world. Another branch the KFC opened in the Lahore is in Garden Town (opposite to Barkat Market). Because the prices of the KFC products is high with comparison to the local products manufacturer who are dealing in the same kind of product in which KFC is dealing but the prices of the KFC is high due to special taste. plazas and institutions (as per the plan)  Visit offices and business places. 4. which is well known and is in the Porsche area where the income level of the people is high then the middle class level. for the placing strategy. and departmental stores. So. KFC also target the Faisalabad and open its branch in D ground. Placement: In the case of the KFC the placement of the product is not important but the placement of the restaurant is important. It is ideally located in the center of a main commercial and residential area of Lahore.  Distribution of delivery flyers in residential areas. The products of the KFC is cooked at the sport and then served after that. plazas. KFC Cavalry branch opened in June 1998. . flats. high quality. The restaurant is a three-story building including the basement (where the chicky play area is located). The area that KFC Cavalry caters for is the residential and office area of Cavalry Grounds and Cantt. Now we can easily judge that the KFC target the place for their restaurant. markets. and due to international brand. KFC chose the well income class area for their restaurants. in the main commercial zone of Cavalry Grounds near the Jinnah Flyover.

Product Issues 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. drug residues and other contaminants. . 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.

Quality Assurance Certificate Director General ( Research ) has issued quality assurance certificate for the chicken used by KFC. .

This ensures that any wood cut for paper production is replaced with new plantings. 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 maximise performance against these three criteria. KFC are enthusiastically complying with the new environmental directives on recovery and recycling of packaging waste.Packaging We are asked as many questions on our packaging as our products by our customers. Environmental concerns Over and above ensuring our packaging is supplied via recycled or renewable resources. Recycled Paper All our clamshells and chicken boxes contain as much recycled material as it is legally allowed. Any virgin fibre comes from board suppliers who use pulp bought from managed forest in Scandinavia. Litter We at KFC UKI are aware of our responsibilities to the Management of Litter and all our packaging carries the µKeep your Country Tidy¶ signs . By law we are required to have virgin fibre board in any part of the packaging that is in contact with food.

.properties. showed that the respondents were more apt to eat within KFC restaurants. A survey of young consumers in the countries (n = 795). than the Americans. 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. Brand identity was defined as the customer impressions of four different KFC identity elements . Brand identity impressions were correlated with overall customer satisfaction and with future patronage intentions for both groups. and publications.Branding This research measured and compared the brand identity of Kentucky Fried Chicken (KFC) in India. products. presentations. and spend more time doing so. The Chinese also had much more positive impressions of KFC.

c to the customers.Promotion Issues Sales promotion For the sales pormotion KFC introduced their goods like watches . e.t. keychain. .

non-acronymic Kentucky Fried Chicken name was resurrected and began to reappear on company marketing literature and food packaging. Business sector is Fast food outlets & restaurants.Advertisment The advert titled Pool was done by OGILVY & MATHER. It was released in the June 2009. In 2007. as well as some restaurant signage. the lead singer then swallows fire. New Delhi advertising agency for KFC ZINGER BURGER (KFC company) in INDIA. the original. The commercial features a fictional black metal band called "Hellvetica" performing live. The commercial then shows the lead singer at a KFC eating the "wicked crunch box meal" and saying "Oh man that is hot". . One of KFC's latest advertisements is a commercial advertising its "wicked crunch box meal".

How close is your house to your nearest KFC outlet? F F F F Within 1 Km Between 1 3 Kms Between 3 5 Kms Above 5 Kms . How many people were in your group? F F F F I was alone Just me and someone For me. Tick Your Choice (˜) Perfect Above Average Average Below Average Poor Food Quality Food Temperature Waiting Time Menu Board Sitting Arrangement Restaurant Temperature Music Restaurant Cleanliness Overall Experience 2. I like to mostly order at home F Sometimes.FEED US BACK 1. Would you rather order than Dine in? F Yaa. When will you be back? F Next time I blink (very soon) F May be sometime later F When I win a Nobel Prize (Never) 3. but I mostly like to dine in F No fun without Dine in 5. three is company 4 or more 4.

Do you want a KFC home delivery service? F My dreams are coming true F That would help F Doesn t make much of a difference F No thanks Thank You .6.

1 Poor We also asked questions on whether they would like KFC to start homedelivery services. Mostly all were open to non-veg food. and following were the results. NO not required Makes No difference Percentage YES Definitely 0 20 40 60 80 100 . 5 4 3 2 1 0 5 Perfect .The data we received is as follows:We did a survey on KFC on people with age group of mostly 20-25yrs. As seen below KFC has shown a good report on all the micro factors that we considered.

sometime Dine in No fun without Dine in .We also inquired ³How close is the nearest KFC outlet from your house? 3-5Km 15% Above 5Km 5% 1-3Km 20% Within 1Km 60% Would you like to order at home or Dine in? 40% 30% 20% I like to mostly order Sometimes order.

After a great deal of research. The marketing mix is generally accepted as the use and specification of the 'four Ps' describing the strategic position of a product in the marketplace. the first KFC restaurant opened in Beijing in 1987. KFC stores has reached 1200.´ and speed.´ are the goals that KFC aims to accomplish. ‡ ‡ ‡ ‡ Product Price Place Promotion . which stands for ³cleanliness.´ ³maintenance. Kentucky Fried Chicken ‡ ‡ Four P¶s of Marketing mix.´ ³product quality. KFC managed to open 100 restaurants throughout China.ANALYSIS OF ITS SUCCESS IN CHINA ‡ As early as 1985. They target the teenagers & give them numerous discounts to high school and college students. double the number of its primary competitor. KFC already had its eyes on this market. ‡ Less than 10 years later.´ ³accuracy. McDonald¶s.´ ³hospitality. ‡ KFC¶s target customers are also different from those of traditional Chinese restaurants. By the end of 2004. ‡ The acronym CHAMPS. hoping to acquire such a group of young adults with a lot of money from their parents to spend as their primary customers.


Product Anything that can be offered to a market to satisfy a want or need. ‡ Gender is both males and females. gender.000 n above. the market is divided into groups based on an age. Segmentation Geographic segmentation: KFC has outlets internationally and sells its products according to geographic needs of the customer. 3-4. Behavior Segmentation: ‡ taste conscious ‡ quality conscious ‡ class ‡ combination of product and quality . religion. Psychographic segmentation Dividing a market into different groups based on social class. or personality characteristics is called psychographic segmentation. The other chicken offering. KFC's specialty is fried chicken served in various forms. income. KFC divides the market on demographic basis in this way: ‡ Age is between 6-65. family size. race and nationality. 5+ ‡ Income is Rs 10. is made using a garlic marinade and double dipping the chicken in flour before deep frying in a standard industrial kitchen type machine. Demographic Segmentation In demographic segmentation. ‡ Family lifestyle is almost all. ‡ Family size is 1-2. KFC's primary product is pressure-fried pieces of chicken made with the original recipe. occupation. extra crispy. lifestyle.

‡ Consumption Behavior: It estimates the behavior of people. In the early rise of KFC they focused on the upper class but slowly are introducing economy meals that attract the lower to middle classes. ‡ Gender: Both male and females are focused by KFC. Geographic location preference: ‡ ‡ urban semi urban Pricing Strategy ‡ Market skimming: KFC globally enters the market using market skimming. Household Size: This plays a vital role in the demographic factor of the KFC. Fried Chicken is its main selling . If the competitor provides the same product at a lower price then the organization usually lowers the price of its product too. gender does not play any role here. This factor decides which class is to be targeted. Generally they target whole families rather than single persons. KFC finds its largest demographic in the young of any society. Their products are priced high and target the middle to upper class people.‡ Price is the any amount of money that customers have to pay while purchasing the product. In the case of KFC. Competition ‡ We can compare the price of their products with McDonald. their liking and disliking towards the pricing of the products. Economic Factors ‡ Income: Income is an important key factor for KFC. The target and focus is on each and every individual in a society. Dominoes and Pizza Hut. More broadly. This being the reason for their Family Meals which are basically bundled items served at a nominally cheaper rate. Gradually they trickle down the prices focusing on the middle to lower class people to penetrate both sides of the market. price is the sum of all the values that consumers exchange for benefits of having or using the product or services Demographic factors ‡ Age: Generally there is no age limit focus by the KFC.

The products are bit high priced according the market segment and it is also comparable to the standard of their product.point and controls a monopoly over the Indian fast food market (only with fried chicken). In the cost based method we include the variable and fixed cost. They adopt the cost base price strategy. It prices its burgers. In India where chicken lovers are plenty abound these ads featuring normal people connect instantly and create a rush at their outlets. Cost Based ‡ KFC price their product keeping different points in view. At KFC. Pricing of the product includes the govt. Advertising The logo of the smiling Colonel is probably one of the most recognized faces in the world and instantly brings the image of fried chicken to one¶s mind. ‡ KFC and its new company jingle. billboards. Using the following methods KFC spreads its message of finger licking good chicken. the Fried Chicken. French fries and soft beverages with relation to its competitors. Using all the resources of promotion: ‡ ‡ ‡ ‡ ‡ ‡ Advertising Sales Promotion Public Relations Events and Experiences Coupons. ³finger lcikin good´ is a frequent announcement on televisions. tax and excise duty and then comes the final stage of determine the price of their product. Discounts and Bundled packages An organization finds most of its meanings and survival through promotion. . Promotion is the main tool to bring all chicken lovers attention towards its delicious one-of-a-kind product. The concept of showing a normal customer deeply involved in devouring his piece of chicken usually turns on the drool factory in everybody¶s mouth and makes them rush to the nearest KFC. flyers and radio. Promotion Promotion is the method used to inform and educate the chosen target audience about the organization and its products.

Sales Promotion ‡ ‡ ‡ ‡ ‡ ‡ KFC uses the following tools to further enhance its sales. customers can enjoy the benefits of free meals or free add-ons. The company anthem ³finger linkin good´ is just a wake up call to the consumer to remind them how good they felt the last time they ate KFC chicken. KFC is currently the sponsor of the Australian Cricket Team and the colonel logo can be seen on their uniforms throughout the matches. Premiums Exhibits Coupons Entertainment All KFC outlets offer its customers with various forms of incentives to buy its Chicken.‡ Using Reminder advertisementsKFC stimulates repeat purchases of its products. Internal Factors SW ‡ Strengths ± Multibranding Strategy ± Name recognition and Reputation ± Employee Loyalty ± Global Expansion ± Targeting Non-Traditional Outlets ‡ Weaknesses ± Conflicting Corporate Cultures ± No defined target market ± Time it takes to market new products . ‡ Sponsorship is another tool to strengthen an organizations image. Using coupons that one can acquire after spending a particular amount over a period of fixed time. Additionally they provide meal vouchers and exciting offers in their print ads. which the customer must cut and bring along.

. Product Development Bring back rotisserie chicken Concentric Diversification Add more to KFC product & service variety to the patients.External Factors OT ‡ Opportunities ± International Appeal to American products ± Economies of Scale and Scope ± The downturn of the US economy ‡ Threats ± PETA ± Consumer health food trend ± Saturated fast food industry Strategic Management Market Development KFC will introduce their present and new products and services into new geographic/demographic areas.

KFC Menu in China .

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