Final Project of Introduction to Business

Group Member:
Ayesha Arshad 005
Zainab Sarwar 051
M Hubaib 021
Sidra Humiyun 028
Mir Ali 047
 DEDICATION
I dedicate this project to God Almighty my creator, my strong pillar, my
source of inspiration, wisdom, knowledge and understanding. He has
been the source of my strength throughout this program and on His
wings only have I soared. I also dedicate this work to my family; who
has encouraged me all the way and whose encouragement has made
sure that I give it all it takes to finish that which I have started.
 Acknowledgement
  We would like to express our special thanks of gratitude to Mam Fizza Batool.
  Who gave us the golden opportunity to do this wonderful project on recognizing
marketing elements of KFC.

Which also helped us in doing a lot of Research and we came to know about so
many new things we are really thankful to them. Secondly we would also like to
thank our parents and friends who helped us a lot in finishing this project within
the limited time. We are making this project not only for marks but to also increase
our knowledge.

THANKS AGAIN TO ALL WHO HELPED US.

PREFACE
Services are everywhere, whether it is travel to an exotic tourism destination, a visit to the
doctor, a church service, a meal at our favorite restaurant, or a day at school. In developed
economies, employment is dominated by service jobs and most new job growth comes from
services. Jobs range from high paid professionals and technicians to minimum-wage positions.
Service organizations can be any size from huge global corporations to local small businesses.
Most activities by government agencies and nonprofit organizations involve services. Service
sector in India accounts to approx. 50%. Service Marketing is a very dynamic discipline. A
service can act or performance offered by one party to another or an economic activity that does
not result in ownership or a process that creates benefits by facilitating a desired change in
customers themselves, physical possessions, or intangible assets. Apart from the 4 P’s of
marketing mix- Product, Price, Place and Promotion, service marketing involves three more
extended P’s i.e. People, Process and Physical evidence. Service Experience is the best way to
describe what happens to a consumer. It constitutes sum of all encounters between a customer
and service provider while buying/using a service, feelings about such encounters immediately
after the events and sometimes the recollections about the event after a period of time. The four
components of the servuction model combine to create the experience for the consumer and it is
the experience that creates the bundle of benefits for the consumer. McDonald’s entered India in
1996 in the month of October using the franchise route. By franchising to local people, the
delivery and interpretation of what might be seen as US brand culture are automatically
translated by the local people in terms of both product and service. McDonald's is a leading
international fast food restaurant chain with 31,000 restaurants spread across the globe.
INTRODUCTION
Kentucky Fried Chicken (KFC) one of the most
known fast food chains in the world started in the
early 1930's by Kernel Sanders in the Southern
USA as a small franchise operation. Colonel
Sanders has become a well-known personality
throughout thousands of KFC restaurants
Worldwide. Quality, service and cleanliness
(QSC) represents the most critical success factors
to KFC's global success. Food, Fun & Festivity,
this is what KFC is all about. Leading the market
since its inception, KFC provides the ultimate chicken meals for the Chicken Loving Nation. Be
it Colonel Sanders secret Original Recipe Chicken or the Hot & Spicy version, every bite brings
a YUM on the face. At KFC we proudly say: KFC has more than 11,000 restaurants in more than
80 countries and territories around the World. In1971, Heublein, Inc. acquired KFC, soon after,
conflicts erupted between the Colonel (which was working as a public relations and goodwill
ambassador) and Heuble in management over quality control issues and restaurant. KFC is part
of Yum! Brands, Inc., however in the case of Pakistan KFC build the relation of Quality Service
and cleanliness for Customer. KFC was acquired by PepsiCo in 1986, it had grown to
approximately 6,600 units in 55 countries and territories. Due to strategic reasons, in 1997
PepsiCo spun off its restaurant businesses (Pizza Hut, Taco Bell and KFC). Perfecting its secret
recipe of 11 herbs and spices in 1939, KFC has come a long way, with over 10,000 outlets in the
world; KFC has maintained its title, for the last 60 years, of being “The Chicken Experts”.
Kentucky Fried Chicken has become KFC. Does anybody know why? We thought the real
reason was because of the "FRIED" food issue. It's not. The reason why they call it KFC is
because they cannot use the word chicken anymore. Why? KFC does not use real chicken. They
actually use genetically manipulated organisms.
These so called "chickens" are kept alive by tubes inserted into their bodies to pump blood and
nutrients throughout their structure. They have no beaks, no feathers, and no feet. Their bone
structure is dramatically shrunk to get more meat out of them.
HIERARCHICAL STRUCTURE OF KFC
KFC has six levels on its organizational structure. The upper most is the management board
which hosts the president and the regional directors including the chief financial officer (CFO).
This level is followed by the general managers, assistant general managers, Unit managers, team
members and finally the workers.
From the survey, it was clear that KFC had a top
down instructions and guidance system where the
branch manager’s office would relay information to
the unit manager’s office. The instructions would
then be communicated to the workers.
Communication between the managers is done via
KFC portal email and finally printed out as a memo
by the unit manager who shares with all the workers
either by giving them a copy each or pinning it in the
administration notice board at the KFC branch.
In the event that a worker has an issue, then the unit
manager’s office should be communicated to directly.
Feedback to the organization is to be done through
the worker’s unions through teams. They can send
direct emails to the general manager through the KFC
portal email which is visible and is always being
monitored by the regional directors at the management board level.
The management board is the key decision maker for the organization. It consists of the regional
heads who sit with the company’s president. The general manager also has autonomy to make
employment related decisions at a local level. He can also sort out branch issues by following
closely the on-goings in the KFC unit branches. The general manager handles a certain number
of units within a region.
The unit manager solely runs and manages a KFC branch. He has an assistant and a shift
manager. They all answer directly to the general manager.
The KFC portal also has a customer/client feedback service, where the customers can directly
feed in and send messages to the Unit manager and general manager.
SWOT ANALYSIS
(i) Strengths:

 Oldest and finest in Business

 High Goodwill
 Does not have any Core Competitor in chicken serving
 Large Number of Outlets at prime locations
 Serves variety of items under single menu
 Loyal customers
 Faces numerous advantages of being a Multinational Organization e.g. economies
 of scale, government incentives etc.

(ii) Weaknesses:

 Presence of Multinational competitors in the market e.g. McDonalds (specialized not in

chicken serving but in burgers)
 Imported raw material rise their prime cost

(iii) Opportunity:

 Cheap and easy availability of labor

 Increase consumption of fast food has increased the market size
 Consumer prefer “All under one roof” in order to increase their sales turnover they
 can increase or add the served items

(iv) Threats:

 Entrance of New competitors into the marketHigh political instability/uncertainty

MARKETING MIX OF KFC 
KFC or Kentucky Fried Chicken is one of the leading fast food chains in the world.
The company boasts a solid marketing mix which has remained unbeaten by its
competitors. The article talks about the 4Ps of Marketing Mix of KFC and the
strength of its product, price, place and promotion strategies.
PRODUCT: PRODUCT MIX OF KFC
KFC, an American fast food restaurant chain specializes in fried chicken. KFC’s original product
is pressure fried chicken pieces, seasoned with Sanders’ recipe of 11 herbs and spices. KFC
adapts its menu internationally to suit regional tastes and there are close to 300 menu items
present worldwide, Eg: In Islamic and middle eastern countries the chicken served by KFC is
halal.
In India, in order to cater to vegetarian customers, KFC offers Veg Burgers and Veg Rice bowls.
KFC Chicken Zinger burger is KFC’s bestselling product. In American states, KFC sandwich is
its best-selling product.
PRICE: PRICING STRATEGY OF KFC
The target audience of KFC is middle and upper middle class and price their products
accordingly. There are different pricing strategies that KFC uses for its products and its variants.
Optional Pricing: Optional pricing is basically used by companies to attempt to increase the
amount customers spend once they start to buy. Optional ‘extras ‘increase the overall price of the
product or service. In KFC’s case, customers can buy the main items present in their menu and
can then opt for “extras” or “sides” like drinks or desserts which go well with the main item that
they purchased. The end result is that the customer ends up paying for the main item that he/she
wanted to buy and also for the add-ons.
Bundle Pricing: KFC bundles different products together and offers it to customers at a slightly
lower price. KFC provides different combo offers to its customers and also provide an option to
its customer to make the combo of their own choice.
PLACE:
KFC uses a combination of Franchise outlet system as well as company-owned outlets. There are
a total of 20,000+ outlets in 150+ countries that KFC has outlets in all the major cities.
Customers can visit these outlets and enjoy their products/Items and can also order online and
get their favorite chicken delivered to their doorstep.
Online Channels: KFC provides an option to the customer to order food online through the KFC
website and can also order KFC food from leading food ordering apps/websites that KFC has
partnered with.
 PROMOTION: PROMOTION MIX OF KFC
Promotion plays an important role in the marketing mix of KFC, the company uses a proper mix
of ATL, BTL and Digital channels for creating awareness and promoting their products.
It is the strong product portfolio that makes it different from its competitors. KFC uses all media
like TV, hoardings, print, online ads etc for its promotion.
KFC has a strong social presence will also allow it to interact and engage with its customers and
get better insights about their products and other services.
KFC also uses their outlets to the maximum extent to promote their new offerings.
Colonel Sanders has been a prominent component of KFC advertising until his death in 1980
and still remains a key icon in all their promotion
"North America's Hospitality Dish",
"We fix Sunday dinner seven nights a week”,
were some of the slogans which the company used before 1956 and then moved to The “finger-
lick in’ good” slogan from 1956, which went on to become one of the best-known slogans of the
20th century. This concludes the Marketing Mix of KFC
CONCLUSION:
KFC is a very strong chain of fast food restaurants with more than 10,000 restaurants all over the
world. Being in “Maturity Stage” it has high opportunities of introducing its new products and
deals. In Future it will be expanding its chain by introducing more outlets in Pakistan as well as
in other countries