PROJECT REPORT On MARKETING STATEGIES OF ………………………………………….

( KFC)

Submitted to M D University Rohtak in partial fulfillment of the requirements for the award of degree of Master of Buisiness Administration

2010 – 2011

Submitted by : Name : Lalita Dahiya Class : MBA 4th SEM University Roll No. / Enrollment No. : 315

INSTITUTE OF LAW AND MANAGEMENT STUDIES SECTOR 40 , GURGAON ( HARYANA)

ACKNOWLEDGEMENT

With profound sense of gratitude and regard, I express my sincere thanks to my guide and mentor Mr.PARAMVEER, for his valuable guidance and the confidence he instilled in me, that helped me in the successful completion of this project report. Without his help, this project would have been a distant affair. His thorough understanding of the subject and professional guidance was indeed of immense help to me. Also, this acknowledgement would remain incomplete without thanking the staff of GURGAON, New Delhi for their whole-hearted and kind cooperation. I am also greatly thankful to the faculty members of our institute who cooperated with me and gave me their valuable time. Acknowledgement

LALIA DAHIYA

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

KFC

Pricing Issues PRICING POLICY FOR PRODUCT OF TWISTER 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/-

165/RS. Consistently deliver superior quality and value in our products and services.55/RS.PRICING STRATEGY FOR DEAL 6 Manufacturing cost 5% marketing cost (PER UNIT) Total cost 15% G.S. • Maintain a commitment to innovation for continuous improvement and grow.220/- M ission statem ent “ T o b e t h e l e a d e r i n w e s t e r n s t y l e sqeu ivcik e r e s t a u r a n t s t h r o u g h f r i e n d l y s e r v i c e . with fast . 140/RS. 25/RS.T +15% RETAIL MARGIN Total retail Price RS. providing a pleasant dining experience. • Generate consistently superior financial returns and benefits our owner and employees. Consistently. Innovative chicken-based products. g o o d q u a l i t r c food an d clean atm osp here ” Goals of KFC • • Build an organization dedicated to excellence. To establish in India our position as leading WQSR (Western Quick Service Restaurant) chain. serving good value. striving always to be the leader in the market place changes.

1 Chicken QSR and has industry leading stature across many countries like UK. soldiering for six months in Cuba. KFC is introducing a new item “Boneless Fried Chicken”. Australia. He didn’t have a restaurant then.USA. Ind.. he perfected his secret blend of 11 herbs and spices and the basic cooking technique that is still used today. with even more attractive and charming taste. And not just in America. The colonel’s cooking is available in more then 82 countries around the world. the colonel began cooking for hungry travelers who stopped at his service station in Corbin. His mother was forced to go to work. actively began franchising his chicken business at the age of 65. and Operated service station. have become a symbol of entrepreneurial spirit. in a clean and convenient location. They want to increase their profit through giving maximum satisfaction & other better facilities to people that they want. After that he was a railroad fireman. When the colonel was six. he was a master of a score of regional dishes. he moved across the street to a motel and restaurant that seated 142 people. And colonel sanders.. his mother remarried and he left his home near Henryville. China. and young Harland had to take care of his three year old brother and baby sister. operated an Ohio River steamboat ferry. Malaysia and many more. Company overview: Colonel Harland sanders. Ind. When he was 12. South Africa. studied law by correspondence. At all times we must be dedicated to providing excellent and delighting customers. He held a series of jobs over the next few years.friendly. 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. the Kentucky fried chicken business he started has grown to be one of the largest retail food service systems in the world. When he was 40. Ate age 10. and then as a 16-year-old private. More than two billion of the colonel’s “finger lickin’ good” chicken dinners are served annually. for a job on a farm in Greenwood. first as a 15-year-old streetcar conductor in New Albany. sold insurance. This meant doing much of the family cooking. Over the next nine year. Their aim is to capture the fast food market. a quick service restaurant pioneer. Now. Basically they want to provide their products to anyone that is why they expanding their branches in all over the world. KY. . but served folks on his own dining table in the living quarters of his service station. By the age of seven. his father died. practiced in justice of the peace court. born September 9. Now after catching such a marvelous position in the International Market. 1890. As more people started coming just for food. his first job working on a nearby farm for $2 a month. sold tires. KFC India KFC is the world’s No. Ind.

the spicy. 5. Reward result and not simple efforts. Commit ourselves to the highest standard to the personal and professional integrity at all times. Values of KFC 1. For the vegetarians in India. 7. 3. 2. 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. profit and size of organization. 4. KFC also has great tasting vegetarian offerings that include the Veggie Burger. PHILOSOPHY 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. Veggie Snacker and Veg Rice meals.KFC is the largest brand of Yum Restaurants. flavorful and juicy Original Recipe chicken. Dedicate ourselves to continuous growth in sales. KFC is growing rapidly and today has presence in 11 cities with close to 50 restaurants. Expand and update training with time and be the best we can be and more. 6. 9. a company that owns other leading brands like Pizza Hut. 8. Be open. Its signature dishes include the “crispy outside. In India. 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. Chicken Bucket and a host of beverages and desserts. Taco Bell. Toasted Twister. juicy & crunchy Zinger Burger. Work as a team. honest and direct in our dealings with one and other. Renowned worldwide for it’s finger licking good food.

The CHAMPS Program Champs stands for our belief that the most important thing each of us can do is to focus on the customer. It stands for our commitment to provide the best food and best experience for the best value. CHAMPS stand for the six universal areas of customer expectation common to all cultures and all restaurants concepts. THE CHAMPS These are: Cleanliness Hospitality Accuracy Maintenance of Facilities Product Quality Speed of Service .

CHAMPS is the philosophy to ensure that the customer has the consistent quality experience in every restaurant. on every occasions and you will be playing role in delivering CHAMPS to our customers. everyday. 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) .

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

their primary products differ greatly from each other. there are a few major competitors in the fast-food industry in India for KFC. The primary reason is that their core products are different. These substitutes are definitely considered healthy as compared to the fast food chains. chicken. would be burgers. With so little buyer and supplier bargaining powers. they can also serve as complements for fast foods as a whole. This is a brilliant strategy because the supplies that KFC would otherwise need to import from the U. suppliers decide to raise their prices. burgers and fries. In terms of human resources. With this strategy. and sandwiches. Even foods from street vendors count as substitute goods.S. so tickets to these tourist spots are also complementary goods because the more people tour these attractions. lowering the supplier bargaining power. and if the U. and sandwiches. The suppliers. KFC can easily switch to the local suppliers. Pizza Hut. KFC is able to have a very tight control over its prices and expenditures.KFC’s price rises as well. KFC also began helping local suppliers by giving them technological support to improve their products. KFC has little rivalry with similar fast-food chains in India. pizza. Indian chicken lovers who may not be as accepting to pizzas (many Indian people strongly dislike the taste of cheese) are not going . have almost no bargaining power because if only one customer threatens to no longer eat at KFC. The substitute products. suppliers to also extend branches into India. as families could choose any one of these over fast food for a meal. Traditional Indian dining. home-cooked meals. like the buyers. KFC. For example. which make them complements to each other. upon its move into India. KFC also sets up stores located near popular tourist attractions. Though they are competitors. In terms of food. as in they sell different kinds of fast foods with very different tastes and styles. and grocery stores with ready-to-eat foods are also substitutes. in this case.S. if KFC raised its price for chicken by a small amount. especially as individual buyers. the more customers KFC will get. have very little bargaining power. namely McDonald’s. labor cost is extremely low because the supply of nonskilled workers great exceeds the demand for them.S. in that they sell. KFC created competition among its suppliers. and the same can be said of the quantity sold of these products. Substitutes and Complements As mentioned above. This gives us a brilliant strategy. Domino's and Subway. Rivalry Unlike what one would expect. the store is not going to lower its price because the cost of losing one customer is not very great. can now be obtained domestically.Buyer/Supplier Bargaining Power The customers of KFC. While other fast foods serve as substitute to KFC. If the general price of fast foods goes up. respectively. urged many of its U. pizzas.

In a small bowl. When pressure builds up cook for 10 minutes. combine the remaining six dry ingredients. Roll the moistened chicken in the flour mixture until well coated.to switch to Pizza Hut just because the price for KFC increased. In addition to that. 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. . combine the egg and milk. a full meal at KFC ranges about Rs. drop the covered chicken pieces into the shortening and lock the lid. Dip each piece of chicken into the milk until fully moistened. 100. 300. whereas a full meal at Pizza Hut can cost over Rs. For example. The drastic difference in price assures no price competition between these restaurants. In a separate bowl. these restaurants have such different target customers that the fluctuation of price for one restaurant is not going to affect the others. In groups of four or five.

Delhi-10027 Store Timing:11am to 11pm Vikas Surya Plaza. Noida -201301 Store Timing:11am to 11pm Great India Place. Delhi-110075 Store Timing:11 am to 11 pm . Select Citywalk Mall.m.m. Saket. Noida-201301 Store Timing:11am to 11pm KFC in West Delhi KFC in South Delhi Back Wing. Inner Circle. Delhi-110001 Store Timing:8:30am to 11pm Sector 18. Dwarka. CP. Sector 4. Delhi-110017 Store Timing:11am to 11pm Vasant Square Mall. City Square Mall.KFC Outlets in Delhi KFC in Central Delhi KFC in Noida A-12. Rajouri Garden. to 11 p. Vasant Kunj-110070 Store Timing:11a.

Mall Road.They promote there products through billboard. GurgaonStore Timing:11 am to 11 pm Ambience Mall. Laxmi Nagar. Indirapuram. Delhi-110034 Store Timing:11am to 11pm KFC in East Delhi Shipra Mall. Delhi-110092 Store Timing:11am to 11pm KFC in Gurgaon JMD Regent Mall. Pitampura. They promote their products through special packages. Gurgaon-122001 Store Timing:11am to 11pm Promotions In India KFC not advertise there products too much because people KFC due to its reputation in other countries.Below Netaji Subhash Place Metro Station. Delhi-201012 Store Timing:11am to 11pm V3S Mall. pamphlets and through other promotion strategies .

 Demographical  Behavior  Geographical By using these three bases they segmented the market as under.Current target market 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. DEMOGRAPHICAL BASIS . They have made segments of the market on the following bases. tastes and behavior who require separate products or marketing mix.

BEHAVIOR In behavioral aspect they segmented the market on the basis of quality.  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. Following are the different possible segments in this regard.In demographics their first segment is consisted of the income factor i. taste and price.e. high income.  Urban areas  Sub urban areas . average income and low income.

5. 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. Income: Everyone can use the KFCservice upper and middle class . Lifestyle: This product is used in every level of social class like upper. Gender: KFC is for each gender both male and female. middle class. 9. 10. Age: age limitation for using this product above 15 4.Profile criteria: 1. Occupation: By profession also everyone can use this product means businessman student workers and other peoples. Education: It has no need more education that why the person who know something can easily enjoy with this product. Geographic region: Geographically KFC is used in every part of the country as well as all over the world. Purchasing decision: Often KFC changes the purchasing decision of customers because of its good attributes. 6. 3. . 7. Attitude: When the customers once buy this product after that they can use the product continuously. 8. 2.

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

 In Urban Area there lived people from every walk of life and profit generation is easier than in Rural Areas. People of Urban Areas are more quality conscious than the people of Rural Areas. KFC beats its competitors through the revising marketing strategy at every movement but the main competitor of KFC are Mc 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 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 . what they are doing? KFC adopted such sort of strategy that there is no competitor for spicy chicken. so the number of customers are more in Urban Areas. which is made by KFC.  Population density is higher in Urban Areas as compared to Rural Areas. It is very important for a marketing managers to monitor the activities of there competitors. No organization can afford to ignore there competitors. Competitive analysis Competitors You cannot enjoy the business without competitors.

com). 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.marketresearch. No such Case. (http://www. 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). as all these impact on Macro environment . people have. These buyers have a need to satisfy their through exchange (Graphic 1). Changes in the below described components over the last couple of years have led to big changes in people’s attitudes towards healthy food. Graphic 1 Communication needs needs make Industry (a collection of seller) Product / service Money Information Market (a collection of buyers services. KFC is Co branding with Walls McDonalds Uses Top To Bottom Approach. These up the demand for particular products and Several components must be considered. components have a direct or indirect KFC’s success.the customers KFC uses Top to Bottom and Bottom to Top Approach in Management.

and on which KFC has an directly affect KFC’s ability to serve its (Kotler et al 2003). 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. They customers. (Kotler et al 2003). A company such as KFC usually cannot influence trends in the macro environment. as they affect people and organisations on a larger scale. Three major KFC Company Competitors forces that are impact. Micro environment The microenvironment consists of all close to KFC. However. KFC has to carefully examine macro environmental trends and must create competitive responses to such trends.KFC operates in a larger macro environment of forces that creates opportunities. but also threats.

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

Huge Marketing. 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. Budget. Attractive Outlets. • 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 Current Sales Analysis Market Share . midnight offer etc.S trengths: 38 products. More entertainment for kids W eaknesses: Same type of Menu.

Due to with over 50% 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 Environmental factors and opportunities Political : . Chicken planet. Mc Donald’s. Dixie or those who may want to enter in the market of fast food restaurants. It becomes difficult for the companies like Sub way.KFC has a very long history and has the most recognize able brand in chicken with over 50% of the market share.

India’s per capita income is expected to reach 1000 dollars by the end of 2007-08 from 797 dollars in 2006-07. The only danger to it will be if there is a terrorist attack in India and the victim is KFC. The GDP. The GDP. The GDP (Purchasing Power Parity) is estimated at 2.5 billion a year earlier.S. dollars in the year 2010. There is a continuous growth in per capita income. Socio cultural: . 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. So taking into considerations the economic factors of India KFC is safe. 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. dollars as estimated in 2008. This will lead to higher buying power in the Hands of the Indian consumers. 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.real growth rate in 2007 was 8. Foreign direct investment rose in the fiscal year ended March 31 2007 to about $16 billion from just $5.S.965 trillion U. India has the third highest GDP in terms of purchasing power parity just ahead Japan and behind U.S.per Capita (PPP) was 2700 U. 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.7%.The operations of KFC are affected by the government policies on the regulations of fast food operation. and China.

1billion people. The social trend toward fast good consumption is changing and India has seen an increase of 90% fast food consumption from the year 2002. For example in inventory system. The technological knowhow and expertise will also enter the Indian market with an increase in competition. technology does not give a very high impact on the company and it is not a significant macro environment variables. Implementation of technology can make the management more effective and cost saving in the long term. .1%. Russia (50 per cent) and China (almost 60 per cent).India is the second most populous nation in the world with an approximate population of over 1.8%. This population is divided in the following age structure: 0-14 years – 31.g. Thus this shows a positive trend for fast food industries in India. For e. 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. Technological: The Indian fast food Industry is heating up with a lot of foreign players entering the Indian market. This increase is far greater than the increase in the BRIC nations of Brazil (20 per cent). supply chain management system to manage its supply.2007. 15-64 years – 63. However KFC should be looking to competitors innovation and improve itself in term of integrating technology in managing its operation.1% and 65 years and above – 5. For a fast food restaurant. There has also been a continuous increase in the consumption of fast food in India. With the lower rates and increase technology the fast food counters are attracting youth by giving them attractive deals. easy payment and ordering systems for its customers and wireless internet technology. KFC and Domino’s pizza.

tax requirement. Critics and concern from all public or activist should be review and support if necessary to ensure we play our social responsibility better. For example is the Halal certification that becomes a concern to Muslim consumers. 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. . In America. KFC always had been critics for world environmentalist. Large-scale plantation has effect the environment and lost of green forest opening for plantation activities. 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. labor and employment laws and quality & environment certification (such as ISO) in which the outlet has been certified. Legal factors: As a certified fast food operator. KFC should protect its integrity and consumer confidence by ensuring all materials and process are as claimed or must followed. potatoes and chicken.Environmental: As one of world largest consumer of beef. Other legal requirement that the business owner should follow as stipulated in laws are such as operating hours. KFC once had been criticized for being insensitive to pollution because of using ne based packaging for its food products. Vegetarian environmentalist criticizes the fast-food giant for cruelty to animals and slaughtering. but careful usage of world resources for sustainable development and care for environment safety and health for our future generation. business registration. The legal requirement is important because the offenders will be fined or have their business prohibited from operating which can be disastrous. Before using paper packaging. once KFC want to introduce whale burger causing uproar because whales are endangered species. This is because high consumption of beef causing the green house effect by methane gasses coming from the cow’s ranch.

DOG: KFC’s Veg Thali comes under this category. As it is a fairly new product it comes in the category of the Question Mark in the BCG Matrix.K CIn ia F d . KFC is advertising a lot to popularize this product so there is a lot of expenditure on it. As KFC is known more for its non-veg food. The product is mostly CASH NEUTRAL.B GM t ix C ar C p ris y B n le s oe s C ic e h kn K se ru h rs ? Vg e Ta h li C ic e h kn Bc e uk t Boston Consultancy Group (BCG) Matrix Question Mark: Currently KFC have launched a new product in the market. this also results in low demand for this item. They have also tried to come into the beverages market by launching its new brand of shakes called KRUSHERS. This product is individually not bringing any profits and is a cash drain for the company. Company may decide to completely remove this product from the market if it does not do well soon and start bringing in revenue. it does not bring in much revenue as demand is low. It has a low market share and although low on expenditure (as company does not spend on its promotion). Although company had launched this product much earlier. . it has still failed to become a success. It has a low market share thus brings low revenue.

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

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. 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. where the company is among the leading fast food giants.  Ranks highest among all chicken restaurant chains for its convenience and menu variety.  . It is even more recognised in other markets outside India. and customer service. weakness. The brand is recognised and trusted in India for its quality products.  Employee Loyalty: Employee Loyalty is one of the major strengths of KFC. KFC customer base remained loyal to the KFC brand because of its unique taste. price. It therefore has a good head start and enjoys a good chance of becoming a leader in Indian fast food industry.Summary of current situation SWOT analysis mean strength. It generates $1B revenue each year.

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

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

customer not depend on us.   KFC are moving from Divisional Level to the District level by opening branches  KFC also offer free home delivery. 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 possess a western culture because some of the Indian people are also following that culture.  KFC is following Niche Marketing and Societal Marketing techniques. According to KFC.MARKETING STRATEGIES OF KFC There are different strategies adopted by KFC for different events. They market their products on different events and in different activities as they are helping SOS village.  KFC open their outlets on reachable places. .

 KFC gives more priority to Family. 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. MARKETING Since 1982. There are 4 P’s of Marketing: 1. PRODUCTION 2. PLACEMENT . PRICING 3. KFC menu consists of more than 30 products.000 in cash and prizes. including language. PROMOTION 4. history and art exercises highlighting Mother’s Day. Educational packets. were sent to thousands of schools nationwide. KFC’s “All-American salute to Mothers” 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.

Production: Basically the product is anything that be offered to a market for attention. KFC has the special raspy for chicken products that is why. those products are: PRODUCTS: • • • • • • • • • • • • Original recipe® chicken Extra Tasty CrispyTM chicken Hot WingsTM pieces Tender Roast® chicken Chunky Chicken pot pie Kentucky Nuggest® Colonel’s Crispy Strips® Honey BBQ sandwich Original Recipe® Sandwich Tender Roast® Sandwich Triple Crunch® Sandwich Triple Crunch ®Zinger® Sandwich . use. KFC is specially dealing in the chicken products. KFC product variety of product in the chicken. Basically. KFC known as a chicken specialist allover the glob. acquisition. or consumption that might satisfy a want or need. so they enter in the market due to the demand of their chicken products. KFC target the Asia and east side because they observe that they people are like the chicken products.

89 Billion Total Retail Sales = $8.BRAND: There are three brands of the KFC: 1) Taco bell 2) Pizza Hut 3) Long john silvers 1.115 Unit Cost = Variable Cost + Fixed Cost / Chicken pieces Sold = 0.89 Billion =$1.115 + 6000000000 / 5890000000 . Calculation of the price under Cost Based Pricing Strategy: Total Pounds of Chicken Served in KFC Restaurant Annually = 1.9 Billion Sales Price of per Chicken Piece = Total Retail Sales / Chicken Pieces sold = $8.51 We assume that Fixed Cost is = $6000000000 Variable Cost = $675000000 Profit Margin is Or Mark Up = $225000000(25% of Sales) Per Unit Variable Cost = $675000000 / 5890000000 = $ 0.9 Billion / $5.Pricing: KFC during pricing their products keep the different points in the mind like they adopt the cost base price strategy.914 Billion Total KFC Chicken Pieces Sold Annually = 5. 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. KFC prices of products are a bit high according to the market segment and it is also compatible to the stander of their products.

02 = $1.25) = 1. The products of the KFC is cooked at the sport and then served after that. They are also creating awareness among the masses about their existing product range as well they tell us about the future product. and departmental stores. Distribution of delivery flyers in residential areas.135 Now suppose manufacturer wants to earn 25% mark up on sale.135 / (1-.= 0.51 3. The manufacturer mark up price is calculated: Mark Up Price = Unit Cost / (1 – Desired Return on Sales) =1. as the main target market.75 = $1. 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.Placement: In the case of the KFC the placement of the product is not important but the placement of the restaurant is important. Another branch the KFC opened in the .115 + 1. colleges. plazas. KFC Cavalry branch opened in June 1998. If you promote your product at the right time. 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.135 / 0. plazas and institutions (as per the plan) Visit offices and business places. in the main commercial zone of Cavalry Grounds near the Jinnah Flyover. flats. Marketing efforts to be taken by the restaurant: Paste delivery posters at petrol pumps.    4. 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. It is ideally located in the center of a main commercial and residential area of Lahore. markets.

So. 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. Free from diseases and bacteria. high quality. it is the world recognized fast food restaurant all around the world. KFC chose the well income class area for their restaurants. 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. for the placing strategy. and due to international brand. which is well known and is in the Porsche area where the income level of the people is high then the middle class level. drug residues and other contaminants. Now we can easily judge that the KFC target the place for their restaurant. KFC also target the Faisalabad and open its branch in D ground.Lahore is in Garden Town (opposite to Barkat Market). 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. .

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

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. Environmental concerns Over and above ensuring our packaging is supplied via recycled or renewable resources. This ensures that any wood cut for paper production is replaced with new plantings. By law we are required to have virgin fibre board in any part of the packaging that is in contact with food.Packaging We are asked as many questions on our packaging as our products by our customers. 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 . KFC are enthusiastically complying with the new environmental directives on recovery and recycling of packaging waste. 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.

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

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

. Business sector is Fast food outlets & restaurants. New Delhi advertising agency for KFC ZINGER BURGER (KFC company) in INDIA.Advertisment The advert titled Pool was done by OGILVY & MATHER. It was released in the June 2009.

. In 2007. the original. DATA ANALYSIS AND PRESENTATION A. The commercial then shows the lead singer at a KFC eating the "wicked crunch box meal" and saying "Oh man that is hot". non-acronymic Kentucky Fried Chicken name was resurrected and began to reappear on company marketing literature and food packaging. Questionnaire that was prepared .One of KFC's latest advertisements is a commercial advertising its "wicked crunch box meal". the lead singer then swallows fire. as well as some restaurant signage. The commercial features a fictional black metal band called "Hellvetica" performing live.

 Between 3 – 5 Kms. 3. When will you be back?  very soon.  No fun without Dine in.1.  Just me and someone.  May be sometime later. How close is your house to your nearest KFC outlet?  Within 1 Km. How many people were in your group?  I was alone. Tick Your Choice (√) Perfect Food Quality Food Temperature Waiting Time Menu Board Sitting Arrangement Restaurant Temperature Music Restaurant Cleanliness Overall Experience 2. Do you want a KFC home delivery service?  yes  Doesn’t make much of a difference  No thanks Above Average Average Below Average Poor The data we received is as follows:- . 5. Never. Would you rather order than Dine in?  I like to mostly order at home.  Above 5 Kms.  I mostly like to dine in. 6.  4 or more. 4.

and following were the results.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. Mostly all were open to non-veg food. We also asked questions on whether they would like KFC to start homedelivery services. We also inquired “How close is the nearest KFC outlet from your house? .

Would you like to order at home or Dine in? CONCLUSIONS AND RECOMMENDATIONS .

time shortage or just not willing to come and dine. Thus it would be in the best interest of the company to start the service as soon as possible and capitalise on the opportunity. . This may be due to more convienence. KFC expects a rise in the orders by at least 20% by starting this service.DATA INTERPRETATION It is clear from the above report that a high number of people actually like to order from their home or workplace rather than coming. Certainly the home delivery market is huge and KFC can take well advantage of the situation.

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