Introduction

Kentucky Fried Chicken (KFC) is one of the oldest and famous food chain. It was started in the early 1930's by Kernel Sanders and later on Sanders sold the entire KFC franchising operation in 1964 for $2 million USD Since that time, the chain has been sold three more times, most recently to PepsiCo, which made it part of its Tricon Global Restaurants division, which in turn was spun off in 1997, and has now been renamed to Yum! Brands. The products of KFC are usually the fried chicken in the form of pieces, wraps and burgers along with mashed potatoes and potato wedges. One of the world's largest fastfood chains, the company owns and franchises more than 15,000 outlets in more than 100 countries. (About 5,200 locations are in the US.). KFC Pakistan Opening the first KFC outlet in Gulshan-e- Iqbal in 1997, KFC wore the title of being the market leader in its industry. Serving delicious and hygienic food in a relaxing environment made KFC everyone’s favorite. Since then, KFC has been constantly introducing new products and opening new restaurants for its customers. Presently KFC is branched out in eighteen major cities of Pakistan (Karachi, Lahore, Gujranwala, Sukkur & Muree) with more than 60 outlets nation-wide. Cupola Cupola is a Dubai based multinational company involved in several business activities including oil gas exploration, plastic cards, retail markets and food franchising holds the master franchise rights to operate KFC in Pakistan since 1999. That was a major difference that when Cupola takes complete Operate in Pakistan that was only 05 Outlets in allover Pakistan, and then now the major difference that Cupola takes more than 60 Outlets in Pakistan. In this study we analyze that how marketing environment exits in KFC and how KFC makes its strategies according to marketing environment.

KFC Vision Statement
Food, Fun & Festival, this is what KFC is all about. Leading the market since its inception, KFC provides the ultimate chicken meals for a Chicken Loving Nation. Be it Marketing Environment Page 1

 Annual turn over in Pakistan 2. Presently KFC has provided employment to over 1200 Pakistanis. “We Do Chicken right”.35 million per month.  The Government of Pakistan receives over Rs.5 billion. At KFC we can proudly say. which sums up to a purchase of over Rs. every bite brings a YUM on our face. which adds up to 6000 individuals directly dependent on KFC Pakistan.40 million.Colonel Sanders secret original Recipe Chicken or the Hot & Spicy Version. KFC Facts Apart from fulfilling the commitment of serving delicious.  Each new outlet developed by KFC Pakistan costs approximately Rs. KFC also plays part in the economic development of our country. “KFC and Pakistan…Growing Together”  Mission Statement Marketing Environment Page 2 .10 to 11 million per month from KFC Pakistan as direct taxes. which is a huge amount for our construction industry. fresh and hygienic food and at the same time providing the customers with the ultimate entertainment.  95% of all food and packaging material used in KFC Pakistan is procured locally.

 Demographic Environment  Economic Environment  Political environment  Cultural Environment  Natural Environment Marketing Environment Page 3 .Macro Environmental Forces It is also called the external environment of any organization and it has the following areas.

550. Marketing Environment Page 4 . race. Also they have reduced their margin on their products to survive in market.150 from Rs. Now day’s people emphasize on saving due to high inflation rate. Another example is big deal having a reduced price of Rs. And for entertainment they use prefer traditional food which relatively cheap. sex. Also KFC introduce chicky meal especially for children and KFC provides a toy on it for free. KFC Strategy To overcome this problem has KFC reduced its rate as much as possible. location and other statistics. The specialty of this product is having extra spice in it. 350 but its original price is Rs. Family Feasts This is a product for families. The current economic conditions of Pakistan economy badly affected the buying power of a common citizen (Mango People). occupation. KFC Strategies In past KFC did not focus on any particular factor of Demographic environment as the food is for all areas of this environment but with the passage of time as the competition get tough it introduce some innovation in its product and introduce some of its packages to attract customers of different age and gender. They have introduced a deal with the name of Mini Plix having a price Rs. now they are providing international quality in a local quality price.Demographic Environment It monitors population in terms of age. Economic Environment Factors that affect consumer buying power and patterns.170. KFC kids Zone This area of KFC is designed for kids. Some are discussed as followed Zinger Max for Ladies This is a burger deal that is made especially for the women keeping their love for spice in mind.

KFC is using modern technology for cooking and modern cooking recopies to get the competitive advantage. and behavior. agencies and groups that influence or limit marketing actions. There are many types of cultural dishes that are liked so much in the communities. KFC Strategy Research and Development They use this technology to keep aware about the latest requirement of the customer and to develop the business. Due to change in government the tax rates raised highly which increase the prices of the products as well as the buying power of the consumer. It means that all the cocking. KFC Strategy The KFC compete with the local traditional food providing chains by providing the public a different taste by mixing the fast food and the local food. The change in political scenario also has a huge influence over the business. Pakistan has a rich cultural history. The example is rice and spice where the local ingredients used to make this dish and fast food as well. baking and all other work that is involved in the preparation of the fast food. Religion As KFC is an America Based company so there is a negative perception among the people and also created by some of the competitors about its authenticity of HALAL food. so it is difficult for the fast food to compete with the local food. Technology Factors Forces that creates new product and market opportunities. Rapid pace of change. high R&D Budget. KFC Strategy KFC use the trade mark of HALAL food to assure the people that their products are 100% HALAL. Advertisement Marketing Environment Page 5 . perceptions. Cultural Environment Forces that affect a society’s basic values.Political environment Laws. focus on minor improvements and increased regulation. New Baking System: KFC is the first fast food chain that introduced the baking system in front of customer to satisfy the customer. preferences.

banners and search engines to promote brands. there has been a need to find out more effective and cost efficient ways to communicate with the target markets The Micro environmental Forces This environment includes the factors that are close to the company and are controllable by the organization. Production facilities. web and Internet banner ads. Major uses include television and radio advertising. In Pakistan it has 63 outlets out of which. Location Financial Resource In Pakistan the a Dubai based multinational company Cupola sponsors the KFC. Financial resources. Human Resource. With the increasing pressure on the marketing team to achieve communication objectives more efficiently in a limited budget. print. largely aimed at consumers. 13 are based in Lahore. cinema. Marketing Environment Page 6 . 21 are in Karachi and the remaining are located in the other cities of Pakistan.KFC use both the promotional stratigies that is usually used in promotional activities of any organization Above the line Promotions: Above the line is a type of advertising through media such as TV. Human Resource KFC enjoying a low labour rate due to high rate of unemployment Production Facilities KFC acquire latest machinery and production materials for the product Location KFC has its franchises in the key location where buyers have an easy access. Bottom the line Promotions: Below the line sales promotions are short-term incentives. radio. These factors are: Company’s Internal Environment (KFC) All factors that are internal o the organization are known as the internal environment.

Consumer Markets KFC has large chain of consumers. In case of KFC there is no such business market.Suppliers Provide the resources needed to produce goods and services. Spices are supplied by Dubai to all over restaurants in Pakistan. They are concerned about the comfort and satisfaction of their customers. Manufacturer Whole Seller Retailer Consumer  Business Market Business markets buy good and services for further processing or for use in their production process. Dry food: For dry food like buns they have there own KFC bakery and vendors like Dawn Bread for some other cities.  Resellers KFC is dealing in fast food. and so they don’t have any resellers as such. “We are growing only with our customer. Frozen food: For the Frozen food like ‘Chicken’ they have agreement with K&N’s. KFC Strategy They use only pull strategy to interact with customers as they directly interact with them. Marketing Environment Page 7 . The fish is supplied by some local suppliers and by Thailand as well.” KFC has great environment for their consumers and families. Consumers It includes five categories. There are two categories of supplies. According to KFC.

Direct Competitors Although the Mr.  Govt. Competitors They are classified into direct and indirect competitors.  International Customers KFC is multinational company. It has not any long-term bank loan.  Mc Donald’s  AFC  Subway  JFC  Fri Chicks Indirect Competitors     Like Salt & Pepper Kabana Village Bundu Khan Publics Its main types are  Financial Public KFC is an independent company.  Media Public KFC spends 5% of its revenue on advertisements. Government Customers As such no govt. customer as such. They have outlets. they are of the view to increase their advertisement. customer exist so far. So they have international customers all over the world. Public Marketing Environment Page 8 . For short-term loan. almost in every country. KFC is not expecting any govt. Marketing Manger denies that they have any competitor in the market but in our point of view there are many competitors as follows. To have more advertisement. it relies on Standard Chartered Bank.

So. KFC sales tax on each meal is 1. KFC says.Taxes are always imposed by the govt. it always gets feedback from the customers whenever its going to launch a new product. sell and distribute its products and services.  General Public KFC wants to know the attitude of the public about its products.2 %. Employees are assets and we reward them greatly. the goods are manufactured according to needs and wants of the customers and immediately served to customers on their outlets. Special badges and pins are assigned to employees. Marketing Intermediaries It includes the firms that help the company to promote. public. As in KFC. Employees get regular bonuses and other benefits which are based on their performances. So no marketing intermediaries are at KFC Chicken: • • • • Combos: • • • • • • • • • Chicken Meals Sandwich Meals Family Meals Fruit Salad Regular & Large Drink Regular & Large Mineral Water Tea Scoop of Walls Ice cream Coffee Page 9 1 piece 2 pieces 5 pieces 10 pieces Desserts & Beverages: Marketing Environment .  Internal Publics The employees are greatly compensated by KFC.

3(g) Page 10 Drumstick Hot & Spicy-Thigh 128(g) Original Recipe.5(g) 3.47(g) Wing Original Recipe/E.161(g) Breast Original Recipe/E.60(g) Calories Total 145(g) 370(g) 140(g) 360(g) 180(g) 450(g) 140(g) 390(g) 450(g) 640(g) 460(g) 90(g) 136(g) Fat 9(g) 19(g) 8(g) 25(g) 11(g) 27(g) 9(g) 28(g) 27(g) 40(g) 30(g) 0.59(g) Drumstick Original Recipe/E.206(g) Fillet Zinger Burger 246(g) Hot Wings 144(g) Corn on the Cob 82(g) 3* French Fries 100(g) Marketing Environment .Snacks & Side Orders: • • • • • • • • • 5 & 20 Pieces Nuggets Arabian Rice 5 & 10 Pieces Hot wings Dinner Roll Regular & Large Fries Hot Shots Corn on the Cob Hot & Crispy Soup Cole Slaw Serving size Original Recipe/E.3(g) Protein 11(g) 40(g) 14(g) 22(g) 11(g) 33(g) 13(g) 22(g) 29(g) 32(g) 25(g) 2(g) 2.126(g) Thigh Hot & Spicy-Wing 53(g) Hot & Spicy.179(g) Breast Hot & Spicy.7(g) Cholesterol 60(mg) 145(mg) 75(mg) 165(mg) 60(mg) 130(mg) 65(mg) 125(mg) 60(mg) 405(mg) 125(mg) 0(mg) 1(mg) CHO 5(g) 11(g) 4(g) 12(g) 9(g) 20(g) 4(g) 14(g) 22(g) 38(g) 22(g) 19(g) 23.

g. government incentives etc.• • • • • • • 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. economies of scale.g. • • Presence of Multinational competitors in the market e. McDonalds(specialized not in chicken serving but in burgers) Imported raw material rise their prime cost • • • 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 • • Entrance of New competitors into the market High political instability/uncertainty Marketing Environment Page 11 .

Being in “Maturity Stage” it has high opportunities of introducing its new products and deals.kfc.co Marketing Environment Page 12 . In Future it will be expanding its chain by introducing more outlets in Pakistan as well as in other countries • • • Believe in value creation.000 restaurants all over the world.KFC is a very strong chain of fast food restaurants with more than 10.   www.com www. Won the hearts of millions of Pakistanis.kfcpakistan. Provide ultimate choice of quick service restaurants for consumers.

Marketing Environment Page 13 .

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