PROJECT REPORT

ON
“A STUDY ON THE CUSTOMER SATISFACTION”
OF
KFC (Kentucky Fried Chicken)

SUBMITTED FOR THE PARTIAL FULFILLMENTOF THE DEGREE OF

BACHELORS OF BUSINESS ADMINISTRATION
C.C.S UNIVERSITY, MEERUT

INSTITUTE OF MANAGEMENT STUDIES, NOIDA

SUBMITTED TO: SUBMITTED BY:

MS. SHIKHA GUPTA ANIKET BANSAL

IMS NOIDA ROLL NO. 180919105031

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 DECLARATION

I, ANIKET BANSAL, hereby declare that all the information furnished in this PROJECT, is my original
work containing authentic facts. This piece of work is only being submitted to INSTITUTE OF
MANAGEMENT STUDIES in the partial fulfillment for the degree of BACHELOR OF BUSINESS
ADMINISTRATION

PLACE ………………. SIGNATURE OF STUDENT

DATE………………..

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 CERTIFICATE

This is to certify that the project entitled “A STUDY ON THE CUSTOMER

SATISFACTION OF KFC (Kentucky Fried Chicken)” is the original work carried
out by ANIKET BANSALstudent of BBA C.C.S. University, Meerut, during the
year2018-2021, in partial fulfillment of the requirements for the award of the Degree of
BBA and that the project has not formed the basis for the award previously of any
degree, diploma, associateship, fellowship or any other similar title.

PLACE ………………. SIGNATURE OF GUIDE

DATE………………..

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 PREFACE

This report focus on KFC marketing strategies, its marketing environment , demographic factor,
marketing factors.

I designed a report to provide a brief description about its marketing mix & its major competitors in
India. We also discuss four P’s of marketing & their marketing tools.

In addition to it, this report includes a research base survey on KFC. We all have tried our level best to
fulfill all the requirements mentioned to us. Now its depend upon the reader to read it carefully and
understand what we want to communicate. This report provides a brief knowledge about KFC in Delhi
NCR India.

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 ACKNOWLEDGEMENT

With profound sense of gratitude and regard, I express my sincere thanks to my guide and mentor MISS
SHIKHA GUPTA, for her valuable guidance and the confidence she instilled in me, that helped me in
the successful completion of this project report. Without her help, this project would have been a distant
affair.

Her 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 KFC (GIP MALL
and LOGIX MALL), NOIDA for their whole-hearted and kind co-operation.

I am also greatly thankful to the faculty members of our institute who co-operated with me and gave me
their valuable time.

ANIKET BANSAL
BBA 6th semester
Roll no. - 180919105031

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 Executive Summary

The study is conducted in order to study A consumer satisfaction of KFC with special reference.
Title of project A consumer satisfaction of KFC.

Name of the university: Chaudhary Charan Singh

Period of study: 25th May to 21st June 2021

Duration of study: 26 Days

Place of study: Delhi NCR

Guide: Ms. Shikha Gupta

Objectives of study: Taking the consumer review related to fast food. Because its demand were very
high in todays generation.

Research methodology

• The primary data has been basically collected through a well structured questionnaire and direct
personal interview with the respondents.
• The secondary data has been collected from internet, advertisement and newspapers.
• The population being large the survey was carried among 100 respondent in Delhi NCR and they
will considered adequate to represent the characteristics of the entire population.

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 Table of contents
CHAPTERS TITLE PAGES
COVER PAGE 1
DECLARATION 2
CERTIFICATE 3
PREFACE 4
ACKNOWLEDGEMENT 5
EXCECUTIVE SUMARY 6
TABLE OF CONTENT 7 TO 8
CHAPTER 1
INTRODUCTION
LITERATURE RIVIEW
CUSTOMER SATISFACTION
AMBIANCE OF FACILITIES
SERVICE QUALITY 9 TO 16

FOOD QUALITY
PAS STUDIES
INTRODUCING NEW PRODUCTS
PRICING STRATEGY
PRICING POLICY FOR PRODUCT OF TWISTERS
PRICING STRATEGY FOR DEAL 6
CHAPTER 2
MISSION STATEMENT
GOALS KFC
KFC HISTORY
17 TO 21
COMPANY OVERVIEW
KFC INDIA
VALUES OF KFC
CHAPTER 3
PHILOSPHY OF KFC THE CHAMPS
CURRENT PRODUCTS 22 TO 29
KFC ORIGINAL RECIPIE
KFC OUTLETS IN DELHI NCR
CHAPTER 4
PROMOTIONS
CURRENT TARGET MARKET

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 PROFILE CRITERIA 30 TO 34
MARKET COVERAGE STRATEGY
TARGET MARKET FOR FAST FOOD
CHAPTER 5
MARKETING STRATEGY OF KFC
35 TO 40
FOUR Ps OF MARKETING
CHAPTER 6
PRODUCT ISSUES
PROMOTION ISSUES 41 TO 47

FEED US BACK BY KFC

CHAPTER 7
COMPETITIVE ANALYSIS
ECONOMIC ANALYSIS OF MARKET
MACRO AND MICRO ENVIRONMENT 48 TO 53

STRENGTH AND WEAKNESS OF COMPETITORS

CHAPTER 8
SITUATIONAL ANALYSIS
BUYERS/SUPPLIERS BARGAINNING POWER 54 TO 57
SUBSTITUE AND COMPLEMENTS
RIVALRY
CHAPTER 9
CURRENT SALES ANALYSIS
MARKET SHARE 58 TO 64
ENVIRONMENTAL FACTORS AND OPPORTUNITIES
BOSTON CONSULTANCY GROUP(BCG) MATRIX
CHAPTER 10
SUMMARY OF CURRENT SITUATION
65 TO 68
SWOT ANALYSIS
CHAPTER 11
DATA ANALYSIS 69 TO 75
CHAPTER 12
FINDINGS 76
CHAPTER 13
SUGGESTIONS 77
CHAPTER 14
CONCLUSION 78
BIBLIOGRAPHY 79
WEBLIOGRAPHY 80
QUESTIONNAIRE 82 TO 84

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 Chapter 1

INTRODUCTION

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 INTRODUCTION

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® 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.”

KFC's original product is pressure fried chicken pieces, seasoned with Sanders' recipe of 11 herbs and
spices. The constituents of the recipe are a trade secret. Larger portions of fried chicken are served in a
cardboard "bucket", which has become a feature of the chain since it was first introduced by
franchisee Pete Harman in 1957. Since the early 1990s, KFC has expanded its menu to offer other
chicken products such as chicken fillet sandwiches and wraps, as well as salads and side dishes such
as French fries and coleslaw, desserts and soft drinks; the latter often supplied by PepsiCo. KFC is
known for its slogans "It's Finger Lickin' Good!", "Nobody does chicken like KFC" and "So good".

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.

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Literature Review

To determine the how KFC is adapting their business model for the Chinese market requires looking at:
existing business strategies, strategies that are used in the Chinese market, an examination of the food
service industry in China and the historical contexts for KFC. These different elements are important,
because they will highlight the strategy that has been utilized by the company in the past and what they
are doing to address these challenges. Once this takes place, it will provide a basic background as to the
overall growth strategy that the company is using. to increase its levels of profitability in China.

Customer Satisfaction

Customer satisfaction is determined through evaluation of customers' experiences with and perceptions
of products or services and whether both of them meet customer expectations in fulfilling their needs
and wants. According to Ali, Kim, Li, and Jeon (2016), freedom of choice affects customer satisfaction.
For example, restaurant customers could be satisfied and give good feedback when they have the
opportunity of choosing menu items for themselves. Other than that, customer loyalty can result if
provided products or services fulfil their expectations (Hanaysha&Hilman, 2015). Previous research by
Abdul and Zainal (2016), for example, explored the relationship between quality and customer
satisfaction using five independent variables: perceived value, emotional price, monetary price,
behavioural price and reputation.

Ambiance of Facilities

Based on previous research, the cleanliness of restaurant surroundings must be prioritized to give
satisfaction to customers. The objective of restaurant ambiance is to provide customers a comfortable
environment while eating in the restaurant and directly fulfil their expectations

Service Quality

According to Sundho (2015) and Swanson and Chen (2016), all industries identify service quality as a
global concept. The objective of service quality is to fulfil the satisfaction of customers toward the
services that are given. In addition, the staff must serve customers with kindness and show a good
attitude in interacting with the customers. Previous research has stated that the quality of services
provided has an influence on customers (Olise, Okoli, &Ekeke, 2015). Thus, if high service quality is
given, the result will be higher customer satisfaction. Sumaedi and Yarmen (2015) suggested a benefit
quality demonstrate for eateries in Islamic nations. Their demonstrate comprises of eight measurements:

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common physical environment, Islamic physical environment, nourishment quality, holding up time,
staff, handle, Islamic-related skill and halal quality. Jaini, Ahmad and Zaib (2015) examined the
components that influence the benefit quality of fast-food eateries, considering the relationship between
client encounter and add up to quality. They utilized three fundamental measurements to degree the
whole quality of eateries: benefit quality, nourishment quality and air quality.

In their study on traditional restaurants in Vietnam, Dao and Tin (2015) examined the relationship
between service quality and customer satisfaction to measure service quality in restaurants.

Food Quality

Food quality is a very important element that influences the satisfaction and purchase intentions among
customers. The objective of managing food quality is to enhance the image and brand recognition of
products and services. According to Md. Sawari, Ghazali, Ibrahim and Mustapha (2015), restaurants that
display Halal logos represent the practice of healthier lifestyles, which produces effective impacts on the
development of the businesses. In enhancing the quality of food, restaurants should provide fresh and
well-cooked meals to maintain quality food. Ko and Su (2015) carried out a study findout the most
variables of nourishment benefit quality. They distinguished two categories of measurements related to
items and clients. The item category comprised item character, culinary expressions and cleanliness and
security.

Past Studies

Previous studies have reported that service quality influenced customer satisfaction Research by Dipesh
Karki and ApilPanthi (2018) investigated the impact of the factors of price, service quality. restaurant
ambiance and food quality on customer satisfaction in Nepalese restaurants, and the study found that all
the factors effected customer satisfaction. Ayed Al Muala's (2018) research had the same independent
variables, but price was an additional unique element. The aim was to study the relationships between
promotion, brand awareness, trust and brand association and their influence on customer satisfaction.
This study was a bit different from other studies because there were some elements that were unique.
From the above research, brand awareness, trust and brand association have elemente were on been
found to influence customer satisfaction with fast food restaurants. In addition, the research by Hasan,
Polas, Rahman, Miah and Ali Hayash (2018) has shown the relationship between the ality had the
waiting time and customer satisfaction. The finding revealed that service quality the factor of the most
impact on waiting time toward customer satisfaction. Moreover, a study by LahapJohanudin, Azlan,
Bahri Said Noraslinda Abdullah and Dahlan Zain Razlan (2018) had the same objective and used the
same the comin method. It found that the perceived waiting time influenced customer satisfaction.
Furthermore, a study by Rizwan Qaisar, Shakir Waqas Tariq, Shahan Ah, Hafiz Fawad, Khan
Muhammad and Shahid Rabia (2018) examined the factors of product quality and customer satisfaction
and their impact on customer satis customer loyalty in fast food restaurants. The findings of this study

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revealed that service quality and customer expectations are related to customer satisfaction and customer
loyalty

Research has investigated the relationships of price, service and food quality, facilities and emotional
states to customer satisfaction (Dastane&IntanFazlin, 2017). All factors produce impacts on customer
satisfaction but the most significant found in past studies are emotional factors and facilities.
ChalalandNaail Mohammad Kamil's (2017) research objective was to study the relationship between
three independent variables: service and food quality and the atmosphere of a restaurant. The research
found that the three independent variables influenced customer satisfaction

A study by Willy (2017) investigated the relationship between service quality provided based on a
customer's gender and customer satisfaction in fast food restaurants. The study organised service quality
into three dimensions, which included tangibles, reliability and assurance. The finding revealed
differences in customer satisfaction between assurance and tangibles based on gender (female and
male), and that a prediction can be made on customer satisfaction based on service quality dimensions

Research conducted by Almohammed (2017) investigated the relationships between restaurant quality
such as halal status, hygiene, menu, atmosphere, quality assurance, accuracy, responsiveness, interior
design, external environment and price and their influence on customer satisfaction. The results revealed
that halal status is unquestionably influential among customers. The finding was that all the dimensions
of service quality influenced customer satisfaction. The methodology used in the study relied on
questionnaires for data collection.

A previous study by Aziam Mustafa (2017) investigated the effects of product and service quality on
buyer's satisfaction toward Prima Home The research used quantitative methods for data analysis. The
result was that the most significant factor influencing buyer satisfaction was service quality.

Ya, Noor, Nor and Ahmad (2017) study aimed to determine the relationships between customer
perception and customer loyalty and their effects on customer purchase intentions. The finding was that
customer perception influenced purchase intention toward Islamic branding.

According to past research by Manjunath and Reginald (2016), the factors which affected customer
satisfaction were service quality, product quality, physical design, price, physical environment, taste and
promotion. The key factors found in this previous research to have the most significant influences on
customer satisfaction were service quality and physical design. Research conducted by Bhagat (2016)
had the same basic objective, but included some other factors that influence customer satisfaction, which
were healthier fast food menus and brands, but physical design and environment were not found to be
factors that influence customer satisfaction. The study revealed the key factors are taste, price, variety
and employee service or service quality. In addition, a previous research study by Jalal Hanasya (2016)
stated that it was about food quality, price and environment as factors that impact customer satisfaction.
In this study the most significant finding was that food quality influenced customer satisfaction.

A study by Mushtaq, Mirza, Ali Asghar, Muhammad (2012) investigated the relationship between
customer satisfaction with fast food services, food quality and perceived value and the customer
relationship with management. It was found that the customer relationship's effect on customer
satisfaction was influential in management improving the performance of a company. A study by

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Herman (2016) investigated the relationships of the factors of quality, brand identity and Korean
popular culture with decisions on product purchases. Both previous studies used quantitative data
collected through questionnaires. The findings revealed that customers had good perceptions of the
factors that influenced their decision making on purchases.

In research on the hospitality industry, a study by Szymanski and Henard (2015) examined tourists
expectations and perceptions regarding the service quality of resorts and hotels. The study performed
quantitative analysis on the collected data. The perception is main influenced that expectation which has
shown as a result.

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

Now enjoy T2O Cricket festivity with KFC's exciting new offer;
Get a complete T20 Meal Box which includes;
1 Zinger Burger, 3 pcs. Hot Wings, 1 regular Drink, 1 Fries and 1 Dinner Roll ! in only
Rs 320/- only

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Pricing Strategy

In 2013, sale of KFC had reached $23 billion. The parent brand of KFC is on 201st position of Fortunes
listing with revenue of over 13$ billion. The target segment for KFC is families of young people in
urban and semi urban location belonging to upper middle class or middle class. When nit entered the
market, the prices were higher which were gradually reduced later on to target lower income group. The
price is also comparable to the competitors. KFC offers differential pricing. The products are available
as individual as well as bundles or combos. The pricing of bundles is less as compared to combined
price of all the products. It is especially lucrative in price sensitive markets like India.

PRICING POLICY FOR PRODUCT OF TWISTER

Manufacturing cost RS. 100/-

5% marketing cost (PER UNIT) RS. 5/-

Total cost RS.105/-

15% G.S.T +15% RETAIL MARGIN RS.25/-

Total retail Price RS.140/-

PRICING STRATEGY FOR DEAL 6

Manufacturing cost RS. 140/-

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5% marketing cost (PER UNIT) RS. 25/-

Total cost RS.165/-

15% G.S.T +15% RETAIL MARGIN RS.55/-

Total retail Price RS.220/-

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 CHAPTER 2

MISSION STATEMENT

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 Mission statement

“To 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.

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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 History

KFC is an internationally renowned fast food industry in the world. They have the main ambitionto
increase & maintain the quality in fast food industry. Their aim is to capture the fast food market.
Basically they want to provide their products to anyone that is why they expanding their branches in all
over the world. They want to increase their profit

through giving maximum satisfaction & other better facilities to people that they want. Now after
catching such a marvelous position in the International Market, KFC is introducing a new item
“Boneless Fried Chicken”, with even more attractive and charming taste.

Company overview:

Colonel Harland sanders, born September 9, 1890, actively began franchising his chicken business at the
age of 65. Now, the Kentucky fried chicken business he started has grown to be one of the largest retail
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 “finger 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.

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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 India

KFC is the world’s No.1 Chicken QSR and has industry leading stature across many countries like UK,
Australia, South Africa, China,USA, Malaysia and many more.

KFC is the largest brand of Yum Restaurants, a company that owns other leading brands like Pizza Hut,
Taco Bell, A&W and Long John Silver. Renowned worldwide for it’s finger licking good food, 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. Its
signature dishes include the “crispy outside, juicy inside” Hot and Crispy Chicken, flavorful and juicy
Original Recipe chicken, the spicy, juicy & crunchy Zinger Burger, Toasted Twister, Chicken Bucket
and a host of beverages and desserts. For the vegetarians in India, KFC also has great tasting vegetarian
offerings that include the Veggie Burger, Veggie Snacker and Veg Rice meals. In India, KFC is growing
rapidly and today has presence in 11 cities with close to 50 restaurants.

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Values 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.

• Expand and update training with time and be the best we can be and more.

• Be open, honest and direct in our dealings with one and other.

• Commit ourselves to the highest standard to the personal and professional integrity at all times.
• Encourage new and innovative ideas because these are the key to our competitive growth.

• Reward result and not simple efforts.

• Dedicate ourselves to continuous growth in sales, profit and size of organization.

• Work as a team.

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 CHAPTER 3

PHILOSOPHY OF KFC THE CHAMPS

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 Philosophy of KFC the CHAMPS

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

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

Mission of Statement

“To be the leader in western style 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 andservices.

• Maintain a commitment to innovation for continuous improvementand grow, striving always to be the
leader in the market place changes.

• Generate consistently superior financial returns and benefits ourowner and employees.

• To establish in Pakistan 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 toproviding excellent and delighting customers.

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 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

· Chicken Thali

· Veg Finger

· Snack Box

· Sundae

· Soft Twirl

· Brownie Sundae

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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. In
a small bowl, combine the egg and milk. In a separate bowl, combine the remaining six dry ingredients.
Dip each piece of chicken into the milk until fully moistened. Roll the moistened chicken in the flour
mixture until well coated. In groups of four or five, drop the covered chicken pieces into the shortening
and lock the lid. When pressure builds
up cook for 10 minutes.

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KFC restaurant in DELHI NCR

• KFC
Restaurant

A-Block, Inner Circle, Connaught Place,

41516306

• KFC
Restaurant

G.F City Square Mall, Shivaji Enclave Rajouri Garden

42225542

• KFC
Restaurant

3rd Floor, Food Court, Ambience Mall, Vasantkunj

46000567

• KFC
Restaurant

Vikas Surya Plaza, Sector 4, Dwarka

42664444

• KFC
Restaurant

My Square Food Court, 2nd Floor, Select Citywalk Mall, Saket,

40534530,40534531

• KFC Crown Interiorz Mall

Restaurant

Shop No : 21-22, Second Floor , Crown Interiorz Mall

60004545

• KFC DLF Mega Mall

Restaurant

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 Shop No -MS0044, Upper Ground Floor, DLF Mega Mall

• KFC Dwarka
Restaurant

Plot Number - 230, Sector - 9,Dwarka

42342191

• KFC eldeco Mall

Restaurant

Shop No E28-E38, Ground Floor, Eldeco Mall

60004545

• KFC Greater Noida

Restaurant

Ground Floor Shop No. 03 - 06, Ansal Plaza Mall, Plot 01/C5 Institutional Area

60004545

• KFC Great India Place

Restaurant

Shop no 37, The Great India Place, Sec-38 A

60004545

• KFC Janakpuri
Restaurant

District Centre, Shop no.8-11,Satyam Complex, Janakpuri

46620099

• KFC Kaushambi
Restaurant

Shop No 10, 10-A, 2nd Floor, Pacific Mall, Plot No 1 Sahibabad Industrial Area,
Kaushambi

60004545

• KFC Noida
Restaurant

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 P -21, Atta Market, Sector 18

60004545

• KFC Sector-14
Restaurant

Shop No.25,Sector-14

60004545

• KFC Sector 63
Restaurant

H-1 A/29,Sec 63

60004545

• KFC South Point Mall

Restaurant

UG -22, South Point Mall, Sec 53, Golf Course Road

60004545

• KFC Vaishali
Restaurant

Third Floor, Mahagun Metro Mall, Vaishali

60004545

• KFC Vasant Kunj

Restaurant

Shop no. 12, 13, Ground Floor, Sun City, Vasant Square Mall, Vasant Kunj,

46000567

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 CHAPTER 4

PROMOTIONS

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 Promotions

In India KFC not advertise there products too much because people KFC due to its reputation in
other countries. They promote their products through special packages.They promote there products
through billboard, pamphlets and through other promotion strategies

Current target market

Segmentation
KFC has divided the market of India into distinct groups of customers with different demands,
tastes and behavior who require separate products or marketing mix.
In India the niche marketing is being used for particular classes of people.
They have made segments of the market on the following bases.

• Demographical

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 • Behavior

• Geographical

By using these three bases they segmented the market as under.

DEMOGRAPHICAL BASIS

In demographics their first segment is consisted of the income factor i.e. high income, average
income and low income.

BEHAVIOR

In behavioral aspect they segmented the market on the basis of quality, taste and price. Following
are the different possible segments in this regard.

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.
Urban areas

Sub urban areas

Profile criteria:

• Gender: KFC is for each gender both male and female.

• Income: Everyone can use the KFCservice upper and middle class .
• Age: age limitation for using this product above 15
• Occupation: By profession also everyone can use this product means businessman student
workers and other peoples.
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 • Education: It has no need more education that why the person who know something can easily
enjoy with this product.
• 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.
• Lifestyle: This product is used in every level of social class like upper, middle class.
• Attitude: When the customers once buy this product after that they can use the product
continuously.
• Purchasing decision: Often KFC changes the purchasing decision of customers because of its
good attributes.
• 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 .
• Attitudes
• The attitudes of the public is very good people like our this new product like others.
• Purchasing process:
• Many people come from home to eat this , and some make impulse decision as they saw it .

Market Coverage Strategy

KFC will be using differentiated market coverage strategy. It means that different marketing mix
will be used for different age groups.

TARGET MARKET FOR FAST FOOD

After evaluation of various segments, KFC has decided to target the market of Urban and Sub-
urban Areas of Pakistan.

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 Product usage
• People are educated and they want variety in their diet.

• Normally people of rural areas don’t take fast food. On the other hand people of urban areas

take fast food.

• Income of the people of urban areas is normally high and they can afford to purchase such

products, which are slightly higher in price as compared to prevailing prices of local food in

the market.

• People of Urban Areas are more quality conscious than the people of Rural Areas.

• In Urban Area there lived people from every walk of life and profit generation is easier than

in Rural Areas.

• Population density is higher in Urban Areas as compared to Rural Areas, so the number of

customers are more in Urban Areas.

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 CHAPTER 5

MARKETING STRATEGIES OF KFC

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 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.

According to KFC, 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, customer not depend on us.

• KFC is following Niche Marketing and Societal Marketing techniques.

• KFC possess a western culture because some of the Indian people are also following that
culture.
• KFC are moving from Divisional Level to the District level by opening branches
• KFC also offer free home delivery.
• KFC open their outlets on reachable places.
• KFC menu consists of more than 30 products.
• KFC gives more priority to Family.

MARKETING

Since 1982, 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. 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 $10,000 in cash and prizes. Educational packets,
including language, history and art exercises highlighting Mother’s Day, were sent to thousands of
schools nationwide.

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There are 4 P’s of Marketing:

1. PRODUCTION
2. PRICING
3. PROMOTION
4. PLACEMENT

1. Production:

Basically the product is anything that be offered to a market for attention, acquisition, use, or
consumption that might satisfy a want or need. KFC is specially dealing in the chicken products;
Basically, KFC has the special raspy for chicken products that is why, KFC known as a chicken
specialist allover the glob. KFC target the Asia and east side because they observe that they people are
like the chicken products, so they enter in the market due to the demand of their chicken products. KFC
product variety of product in the chicken, those products are:

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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

BRAND:

There are three brands of the KFC:

1) Taco bell
2) Pizza Hut
3) Long john silvers

2. Pricing:

KFC during pricing their products keep the different points in the mind like they adopt the cost base
price strategy. 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.

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Calculation of the price under Cost Based Pricing Strategy:

Total Pounds of Chicken Served in KFC Restaurant Annually = 1.914 Billion

Total KFC Chicken Pieces Sold Annually = 5.89 Billion

Total Retail Sales = $8.9 Billion

Sales Price of per Chicken Piece = Total Retail Sales / Chicken Pieces sold
= $8.9 Billion / $5.89 Billion
=$1.51

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
= $ 0.115

Unit Cost = Variable Cost + Fixed Cost / Chicken pieces Sold

= 0.115 + 6000000000 / 5890000000
= 0.115 + 1.02
= $1.135
Now suppose manufacturer wants to earn 25% mark up on sale. The manufacturer mark up price is
calculated:

Mark Up Price = Unit Cost / (1 – Desired Return on Sales)

=1.135 / (1-.25)
= 1.135 / 0.75
= $1.51

3. Promotion:

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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. 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. They are also creating awareness among the masses about their existing product range as well
they tell us about the future product.

Marketing efforts to be taken by the restaurant:

• Paste delivery posters at petrol pumps, flats, colleges, plazas, and departmental stores.
• Distribution of delivery flyers in residential areas, markets, plazas and institutions (as per the
plan)
• Visit offices and business places.

4. Placement:

In the case of the KFC the placement of the product is not important but the placement of the restaurant
is important. The products of the KFC is cooked at the sport and then served after that. KFC Cavalry
branch opened in June 1998, in the main commercial zone of Cavalry Grounds near the Jinnah Flyover.
The restaurant is a three-story building including the basement (where the chicky play area is located). It
is ideally located in the center of a main commercial and residential area of Lahore. The area that KFC
Cavalry caters for is the residential and office area of Cavalry Grounds and Cantt, as the main target
market. Another branch the KFC opened in the Lahore is in Garden Town (opposite to Barkat Market).
KFC also target the Faisalabad and open its branch in D ground. Now we can easily judge that the KFC
target the place for their restaurant, which is well known and is in the Porsche area where the income
level of the people is high then the middle class level. 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, high quality, and due to
international brand, it is the world recognized fast food restaurant all around the world. So, for the
placing strategy, KFC chose the well income class area for their restaurants.

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 CHAPTER 6

PRODUCT ISSUES

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 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.

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, drug residues and other contaminants.

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Quality Assurance Certificate

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

Packaging

We are asked as many questions on our packaging as our products by our customers. The
packaging forKFC 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.

Recycled Paper

All our clamshells and chicken boxes contain as much recycled material as it is legally
allowed. By law we are required to have virgin fibre board in any part of the packaging that is in contact
with food. Any virgin fibre comes from board suppliers who use pulp bought from managed forest in
Scandinavia. This ensures that any wood cut for paper production is replaced with new plantings.

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Environmental Concerns

Over and above ensuring our packaging is supplied via recycled or renewable resources;
KFC are enthusiastically complying with the new environmental directives on recovery and recycling of
packaging waste.

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

Branding

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

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 Promotion Issues

Sales promotion

For the sales pormotion KFC introduced their goods like watches , keychain, e.t.c to the customers.

Chicken Toy Coffe Mug

Watch with logo of KFC Tshirt with KFC logo

Cap with logo of KFC

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Advertisment

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

One of KFC's latest advertisements is a commercial advertising its "wicked crunch box meal". The
commercial features a fictional black metal band called "Hellvetica" performing live, the lead singer
then swallows fire. The commercial then shows the lead singer at a KFC eating the "wicked crunch box
meal" and saying "Oh man that is hot".

In 2007, the original, non-acronymic Kentucky Fried Chicken name was resurrected and began to
reappear on company marketing literature and food packaging, as well as some restaurant signage.

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FEED US BACK
1. Tick Your Choice ()
Perfect Above Average Below Poor
Average Average
Food Quality
Food Temperature
Waiting Time
Menu Board
Sitting Arrangement
Restaurant Temperature
Music
Restaurant Cleanliness
Overall Experience

2. When will you be back?

 Next time I blink (very soon)
 May be sometime later
 When I win a Nobel Prize (Never)

3. How many people were in your group?

 I was alone
 Just me and someone
 For me, three is company
 4 or more

4. Would you rather order than Dine in?

 Yaa, I like to mostly order at home
 Sometimes, but I mostly like to dine in
 No fun without Dine in

5. How close is your house to your nearest KFC outlet?

 Within 1 Km
 Between 1 – 3 Kms
 Between 3 – 5 Kms
 Above 5 Kms

6. Do you want a KFC home delivery service?

 My dreams are coming true
 That would help
 Doesn’t make much of a difference
 No thanks

Thank You

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 CHAPTER 7

COMPETITIVE ANALYSIS

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 Competitive Analysis

Competitors

You cannot enjoy the business without competitors. No organization can afford to ignore there
competitors. It is very important for a marketing managers to monitor the activities of there competitors,
what they are doing? KFC adopted such sort of strategy that there is no competitor for spicy chicken,
which is made by KFC.

KFC beats its competitors through the revising marketing strategy at every movement but the main
competitor of KFC are
Mc Donald

COMPETITIVE ADVANTAGE

KFC McDonalds

Spicy Products Burger and French Fries

Indian people like spicy products instead of

boiled food

Arabian Rice and Zinger Burger Big Mac

Free Delivery Charges for home delivery

Chicken is eaten by every community Beef is banned in some community

Local Staff and Highly Qualified because local Its Staff consist of simple Graduates and give
staff can better deal with the customers them training

KFC uses Top to Bottom and Bottom to Top McDonalds Uses Top To Bottom Approach.
Approach in Management.

KFC is Co branding with Walls No such Case.

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 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). These buyers have a need to satisfy their needs through exchange (Graphic 1). These needs make
up the demand for particular products and services. Several components must be considered, as all these
components have a direct or indirect impact on KFC’s success.
Changes in the below described components over the last couple of years have led to big changes in
people’s attitudes towards healthy food. 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, people have.
(http://www.marketresearch.com).

Communication

Industry Product / service Market

(a collection (a collection
of seller) Money of buyers

Information
Graphic 1

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Macro environment

KFC operates in a larger macro environment of forces that creates opportunities, but also threats. (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.

However, KFC has to carefully examine macro environmental trends and must create competitive
responses to such trends. There are six major macro environmental forces KFC has to take into account.

Micro environment

The microenvironment consists of all forces that are close to KFC, and on which KFC has an impact.
They directly affect KFC’s ability to serve its customers. (Kotler et al 2003). Three major components
influence KFC’s micro environment:

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 Company Competitors

KFC

Consumers

Graphic 3 (Source: Kotler et al 2003) Micro Environment

Competitors

Because the fast food market in India is highly competitive, KFC faces a wide number of direct and
indirect competitors. KFC’s main competitors are fast food chains such as McDonald’s and Domino’s,
which are already well established throughout India.

McDonalds’s in particular is a direct competitor, as they have already successfully introduced their
Salads plus line (http://www.theage.co.in), which directly targets ‘healthy food’ conscious Indians. But,
there are a number of other competitors that is also focusing on ‘chicken’ types products. All this
competition makes it quite difficult for KFC to maintain or even broaden their customer base. However,
with the introduction of a new and healthy product range, KFC can differentiate itself from most
competitors and will gain a competitive advantage.

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Customers

KFC’s customer market consists solely of the consumer market (Kotler et al 2003). KFC’s products are
bought by individuals (males, females, singles, and families). Therefore, the product range KFC offer
should appeal to as many people within this consumer market as possible, 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.

Strengths and weakness of competitor

S trengths: 38 products, Attractive Outlets, Huge Marketing, Budget, More entertainment for kids

W eaknesses: Same type of Menu, 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, midnight offer etc.

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

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 CHAPTER 8

SITUATIONAL ANALYSIS

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 Situational Analysis

Entry

For the current Indian market for fast food, it is not difficult for a fast food restaurant to enter the
market. However, 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. While there are enough people in
urban India for any restaurant to survive, KFC holds the first-mover advantage into the 'non-veg food
specialty food segment' that gives them free reputation. Customers, especially children who are used to
going to KFC as a treat or reward from their parents or grandparents, are not going to want to go to other
restaurants they’ve never heard of. The brand name is already established. Also, there is already a large
variety in the numerous western-style dining places in India, such as

McDonald’s, Pizza Hut, Domino's and Subway, and any new fast-food entrants would just be presenting
something very similar to what’s already there. While small

Neighborhood restaurants generally have low barriers to entry, these are the barriers to entry for similar
restaurant businesses to enter the fast-food chain market.

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Buyer/Supplier Bargaining Power

The customers of KFC, especially as individual buyers, have almost no bargaining power because if
only one customer threatens to no longer eat at KFC, the store is not going to lower its price because the
cost of losing one customer is not very great. The suppliers, like the buyers, have very little bargaining
power.

In terms of food, KFC, upon its move into India, urged many of its U.S. suppliers to also extend
branches into India. KFC also began helping local suppliers by giving them technological support to
improve their products. This is a brilliant strategy because the supplies that KFC would otherwise need
to import from the

U.S. can now be obtained domestically, and if the U.S. suppliers decide to raise their prices, KFC can
easily switch to the local suppliers. This gives us a brilliant strategy. With this strategy, KFC created
competition among its suppliers, lowering the supplier

bargaining power. In terms of human resources, labor cost is extremely low because the supply of non-
skilled workers great exceeds the demand for them. With so little buyer and supplier bargaining powers,
KFC is able to have a very tight control over its prices and expenditures.

Substitutes and Complements

As mentioned above, there are a few major competitors in the fast-food industry

in India for KFC, namely McDonald’s, Pizza Hut, Domino's and Subway. The substitute products, in
this case, would be burgers, pizza, and sandwiches. Though they are competitors, their primary
products differ greatly from each other, in that they sell, chicken, burgers and fries, pizzas, and

57 | P a g e
sandwiches, respectively. Traditional

Indian dining, home-cooked meals, and grocery stores with ready-to-eat foods are also substitutes, as
families could choose any one of these over fast food for a meal. These substitutes are definitely
considered healthy as compared to the fast food chains. Even foods from street vendors count as
substitute goods.

While other fast foods serve as substitute to KFC, they can also serve as complements for fast foods as a
whole. If the general price of fast foods goes up,KFC’s price rises as well, and the same can be said of
the quantity sold of these products, which make them complements to each other. KFC also sets up
stores located near popular tourist attractions, so tickets to these tourist spots are also complementary
goods because the more people tour these attractions, the more customers KFC will get.

Rivalry

Unlike what one would expect, KFC has little rivalry with similar fast-food chains in India. The
primary reason is that their core products are different, as in they sell different kinds of fast foods with
very different tastes and styles. For example, if KFC raised its price for chicken by a small amount,
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. In
addition to that, these restaurants have such different target customers that the fluctuation of price for
one restaurant is not going to affect the others. For example, a full meal at KFC ranges about Rs. 100,
whereas a full meal at Pizza Hut can cost over Rs. 300. The drastic difference in price assures no price
competition between these restaurants.

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 CHAPTER 9

CURRENT SALES ANALYSIS

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 Current Sales Analysis

Market Share

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

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

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Environmental factors and opportunities

Political :

The operations of KFC are affected by the government policies on the regulations of fast food operation.
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.
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. 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.

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. The GDP (Purchasing Power
Parity) is estimated at 2.965 trillion U.S. dollars in the year 2010. The GDP- per Capita (PPP) was 2700
U.S. dollars as estimated in 2008. The GDP- real growth rate in 2007 was 8.7%. India has the third
highest GDP in terms of purchasing power parity just ahead Japan and behind U.S. and China. Foreign
direct investment rose in the fiscal year ended March 31 2007 to about $16 billion from just $5.5 billion
a year earlier. There is a continuous growth in per capita income; India’s per capita income is expected
to reach 1000 dollars by the end of 2007-08 from 797 dollars in 2006-07. This will lead to higher buying
power in the Hands of the Indian consumers. So taking into considerations the economic factors of India
KFC is safe. The only danger to it will be if there is a terrorist attack in India and the victim is KFC.

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Socio Cultural:

India is the second most populous nation in the world with an approximate population of over 1.1billion
people. This population is divided in the following age structure: 0-14 years – 31.8%, 15-64 years –
63.1% and 65 years and above – 5.1%.

There has also been a continuous increase in the consumption of fast food in India. The social trend
toward fast good consumption is changing and India has seen an increase of 90% fast food consumption
from the year 2002- 2007. 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). Thus this shows a positive trend for fast
food industries in India.

Technological:

The Indian fast food Industry is heating up with a lot of foreign players entering the Indian market. The
technological knowhow and expertise will also enter the Indian market with an increase in competition.
With the lower rates and increase technology the fast food counters are attracting youth by giving them
attractive deals. For e.g. KFC and Domino’s pizza. For a fast food restaurant, technology does not give a
very high impact on the company and it is not a significant macro environment variables. However KFC
should be looking to competitors innovation and improve itself in term of integrating technology in
managing its operation. For example in inventory system, supply chain management system to manage
its supply, easy payment and ordering systems for its customers and wireless internet technology.
Implementation of technology can make the management more effective and cost saving in the long
term. 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.

Environmental:

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As one of world largest consumer of beef, potatoes and chicken, KFC always had been critics for world
environmentalist. This is because high consumption of beef causing the green house effect by methane
gasses coming from the cow’s ranch. Large-scale plantation has effect the environment and lost of green
forest opening for plantation activities. Vegetarian environmentalist criticizes the fast-food giant for
cruelty to animals and slaughtering. In America, once KFC want to introduce whale burger causing
uproar because whales are endangered species. Before using paper packaging, KFC once had been
criticized for being insensitive to pollution because of using ne based packaging for its food products.
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.

Our world is getting concern on environment issue and business operating here should not just care for
profit, but careful usage of world resources for sustainable development and care for environment safety
and health for our future generation. Critics and concern from all public or activist should be review and
support if necessary to ensure we play our social responsibility better.

Legal factors:

As a certified fast food operator, there are many regulations and procedures that KFC should follow. For
example is the Halal certification that becomes a concern to Muslim consumers. KFC should protect its
integrity and consumer confidence by ensuring all materials and process are as claimed or must
followed.

Other legal requirement that the business owner should follow as stipulated in laws are such as operating
hours, business registration, tax requirement, labor and employment laws and quality & environment
certification (such as ISO) in which the outlet has been certified. The legal requirement is important
because the offenders will be fined or have their business prohibited from operating which can be
disastrous.

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 Boston Consultancy Group (BCG) Matrix

Question Mark:

Currently KFC have launched a new product in the market. They have also tried to come into the

beverages market by launching its new brand of shakes called KRUSHERS. As it is a fairly new product

it comes in the category of the Question Mark in the BCG Matrix. It has a low market share thus brings

low revenue. KFC is advertising a lot to popularize this product so there is a lot of expenditure on it.

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.

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DOG:

KFC’s Veg Thali comes under this category. Although company had launched this product much earlier,

it has still failed to become a success. As KFC is known more for its non-veg food, this also results in

low demand for this item. It has a low market share and although low on expenditure (as company does

not spend on its promotion), it does not bring in much revenue as demand is low. The product is mostly

CASH NEUTRAL.

CASH COW:

KFC’s Chicken Bucket is the most successful product of the company. It has the highest market share

amongst all the other products. It has good demand in the market and brings in huge sales revenue. The

development and other expenses are also low and thus this product is a CASH SIRPLUS for the

company.

STAR:

The star product of the company is its crispy Boneless Chicken. It has a high market share and brings in

high revenue. But it also has high developmental expenditure involved. The profit therefore is generally

not very high brought in by this product. This product is CASH NEUTRAL for the firm. The company

is trying make this product a cow as well, by reducing the expenditure

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 CHAPTER 10

SUMMARY OF CURRENT SITUATION

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 Summary of current situation

SWOT analysis mean strength, weakness, 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. It is even more recognised in other markets outside

India, where the company is among the leading fast food giants. The brand is recognised and

trusted in India for its quality products, price, and customer service. It therefore has a good head

start and enjoys a good chance of becoming a leader in Indian fast food industry.

▪ Employee Loyalty: Employee Loyalty is one of the major strengths of KFC. 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 customer base

remained loyal to the KFC brand because of its unique taste. KFC has continued to dominate

the dinner and take out segment of the Industry.

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 ▪ Ranks highest among all chicken restaurant chains for its convenience and menu variety.

It generates $1B revenue each year.

WEAKNESSES

▪ KFC was losing market share as other Chicken chain increased sales at a faster rate.

▪ KFC share of Chicken Segment sales fell from 71 percent 1999 , to less than 56 percent in

2009 , a 10 -years drop of 15 percent.

▪ Huge competition in this segment.

▪ India is still mostly a vegetarian dominated cultured society. South India is especially

very much so. This may reduce the market share of the company.

▪ KFC has not yet invested much on R&D, and innovating new products for Indian Markets.

This may lead to failure of their products as they are not in line with the Indian mind set,

peoples taste and preferences and their likes and dislikes. This may prove fatal for the

company.

OPPURTUNITIES

▪ New Markets: Globalisation has opened doors for new markets for the company. As the

developed markets are mostly saturated, the developing countries like India and China promises

a good market and generation of demand in the future. With more than 70% of the markets in

india being unexplored and un organised, KFC has a good scope of expanding its operations in

the country.

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 ▪ 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. Thus Indian mindset is fast changing.

▪ Large Youth population: India has a very large share of youth population a compared to other

countries. More than 60% of the population is under the age of 30yrs. As the young generation

are more open to fast foods and demand it more, this is a good news for the company.

New variety: Company can also come up with new variety in the menu like Pizzas, garlic

breads to attract more customers.

THREATS

▪ Competition: Competitor companies like McDonalds are fast catching up with the

market.McDonald’s with sales of more than 19 billion in 1999, accounted for 15 percent of

the sales of the nation’s top 100 restaurant chains.

▪ 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. Currently, KFC is under

massive attacks from animal organisations, questioning the way KFC’s suppliers are

threatening the chicken, before they got slaughtered. Anti-KFC campaigns, 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. As

the US markets are already saturated and leave no or little scope for growth, company

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 necessarily needs to look at offshore foreign markets to generate sales and keep up the

profits.

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 CHAPTER 11

DATA ANALYSIS

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 DATA ANALYSIS

The data we received is as follows:-

We did a survey on KFC on people with age group of mostly 18-40yrs. Mostly all were open to non-veg
food, and following were the results. As seen below KFC has shown a good report on all the micro
factors that we considered.

Series 1

90.9
100
80
Axis Title

60
40
7 3.1
20 0
0
Below 18 18-40 40-60 Above 60
Series 1 7 90.9 3.1 0
Axis Title

Series 1

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 Series 1

80
70
60
Axis Title

50
40
30
20
10
0
Student Working- Business Person Home Maker
Employee
Series 1 72.7 11.4 11.4 4.9
Axis Title

Series 1

Around 72.7% from 100 are students who visit KFC

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 Series 1

50
45
40
35
Axis Title

30
25
20
15
10
5
0
Pure Lacto Eggetarians Non
Vegetarians Vegetarians Vegetarians
Series 1 27.3 15.9 3.3 50
Axis Title

Series 1

50% of people are nonvegetarians and 27.3% are pure vegetarian

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 Series 1

60

50

40

30

20

10

0
Category 1 Category 2 Category 3
Series 1 54.5 38.6 6.9

Series 1

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 SERIES 1
Series 1

36.4 36.4

27.3

yes no may be
Series 1 36.4 27.3 36.4

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 Series 1

60

50

40

30

20

10

0
home delivery outlet both
Series 1 13.6 34.1 52.3

Series 1

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 CHAPTER 12

Findings

• From the survey we come to know that the number of customers was fond of non-veg products of KFC.
So, importances of products were given only to nonvegetarian customers.

• From the above point we come to know that only non-vegetarian products are mostly sold so by
introducing new varieties in vegetarian will attract the vegetarian customer and it will increase the
number of customers

• Though KFC is an international product, the prices of their products were nominal to the people
according to the region.

• If the method of delivering products of KFC should be revised to increase the number of customer.

• The fast food giants may open exclusive vegetarian food restaurant to attract vegetarian customers with
more variety on vegetarian foods.

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 CHAPTER 13

Suggestions

• Add more vegetarian options.

• Increase quantity.

• Add good quality of foods at reasonable price.

• Provide better combos.

• The preparation time should be a bit less.

• Better price

• Maintain taste like a foreign country.

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 CHAPTER 14

Conclusion

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. This may be due to more convienence, time shortage or just not willing
to come and dine. Certainly the home delivery market is huge and KFC can take well advantage of the
situation. Thus it would be in the best interest of the company to start the service as soon as possible and
capitalise on the opportunity. KFC expects a rise in the orders by at least 20% by starting this service.

Therefore, to conclude we would say that KFC should definitely have a home delivery service.

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 Bibliography

About:

KFC staff
Outlets
People who love fast food

Journals:

Advertisements
Zomato
Swiggy

Webliography

Websites

www.google.com
www.kfc.co.in

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 Questionnaire

SURVEY ON CUSTOMER SATISFACTION OF KFC

Q1. Your Name?

Ans.______________________

Q2. Gender?

o Female
o Male
o Others
o Prefer not to say

Q3. What age category do you fall in?

o Below 18
o 18-40
o 40-60
o Above 60

Q4. Your Occupation?

o Student
o Working - Employee
o Business Person
o Home-Maker

Q5. Which region of the country do you belong to?

o North
o South
o East
o West

Q6. What do you count yourself in?

o Pure Vegetarians
o Lacto Vegetarians
o Eggetarians
o Non Vegetarians

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Q7. Do you Love Chicken?

o Yes
o No
o Maybe

Q8. How often do you visit KFC?

o Weekly
o Monthly
o Quaterly
o Annually

Q9. You often visit KFC with?

o Alone
o Family
o Friends

Q10. Which is your favorite product offered by KFC?

Ans_____________________________________

Q11. Do you prefer a Home-Delivery or eating at an Outlet?

o Home-Delivery
o Outlet
o Both

Q12. Are you satisfied with the prices charged by KFC?

o Yes
o No
o Maybe

Q13. Do you think KFC provides neat and clean environment?

o Strongly Disagree
o Disagree
o Agree
o Strongly Disagree

Q14. Do you think dine out performance of KFC is good?

o Strongly Disagree
o Disagree
o Agree
o Strongly Disagree

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Q15. Does KFC maintain consistency in its taste and quality?

o Strongly Disagree
o Disagree
o Agree
o Strongly Disagree

Q16. How well does KFC product meet your needs?

o Strongly Disagree
o Disagree
o Agree
o Strongly Disagree

Q17. Would you buy from KFC again?

o Yes
o No
o Maybe

Q18. How would you rate your experience with our product?

o Excellent
o Very good
o Good
o Fair
o Poor

Q19. Do you recommend to your friends and family to visit KFC?

o Yes
o No
o Maybe

Q20. Share your first time experience with KFC?

Ans.___________________________________

Q21. What are your suggestions to improve the service provided by KFC?

Ans._______________________________________

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