Company Profile

KFC

KFC was founded by Colonel Harland Sanders (1890–1980), an entrepreneur who began
selling fried chicken from his roadside restaurant in Corbin, Kentucky, during the Great
Depression. Sanders identified the potential of the restaurant franchising concept and the first
"Kentucky Fried Chicken" franchise opened in Salt Lake City, Utah, in 1952. KFC
popularized chicken in the fast-food industry, diversifying the market by challenging the
established dominance of the hamburger. By branding himself as "Colonel Sanders", Harland
became a prominent figure of American cultural history and his image remains widely used
in KFC advertising to this day. However, the company's rapid expansion overwhelmed the
aging Sanders and he sold it to a group of investors led by John Y. Brown Jr. and Jack C.
Massey in 1964.
KFC was one of the first American fast-food chains to expand internationally, opening
outlets in Canada, the United Kingdom, Mexico and Jamaica by the mid-1960s. Throughout
the 1970s and 1980s, it experienced mixed fortunes domestically, as it went through a series
of changes in corporate ownership with little or no experience in the restaurant business. In
the early 1970s, KFC was sold to the spirits distributor Heublein, which was taken over by
the R. J. Reynolds food and tobacco conglomerate; that company sold the chain to PepsiCo.
The chain continued to expand overseas, however, and in 1987 it became the first Western
restaurant chain to open in China. It has since expanded rapidly in China, which is now the
company's single largest market. PepsiCo spun off its restaurants division as Tricon Global
Restaurants, which later changed its name to Yum! Brands.
KFC's original product is pressure-fried chicken pieces, seasoned with Sanders' signature
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".

Products

KFC's original product is pressure-fried chicken pieces, seasoned with Sanders' signature
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".
Sanders Court & Café
Harland Sanders was born in 1890 and raised on a farm outside Henryville,
Indiana (near Louisville, Kentucky). When Sanders was five years old, his father died,
forcing his mother to work at a canning plant. This left Sanders, as the eldest son, to care for
his two younger siblings. After he reached seven years of age, his mother taught him how to
cook. After leaving the family home at the age of 13, Sanders passed through several
professions with mixed success.

In 1930, Sanders took over a Shell filling station on US Route 25 just outside North Corbin,
Kentucky, a small town on the edge of the Appalachian Mountains. It was here that he first
served to travelers the recipes that he had learned as a child: fried chicken and other dishes
such as steaks and country ham. After four years of serving from his own dining room table,
Sanders purchased the larger filling station on the other side of the road and expanded to six
tables. By 1936, this had proven successful enough for Sanders to be given the honorary title
of Kentucky Colonel by Governor Ruby Laffoon. In 1937 he expanded his restaurant to 142
seats and added a motel he purchased across the street, naming it Sanders Court & Café.

Sanders was unhappy with the 35 minutes it took to prepare his chicken in an iron frying pan,
but he refused to deep fry the chicken, which he believed lowered the quality of the
product. If he pre-cooked the chicken in advance of orders, there was sometimes wastage at
day's end. In 1939, the first commercial pressure cookers were released onto the market,
mostly designed for steaming vegetables. Sanders bought one and modified it into a pressure
fryer, which he then used to fry chicken. The new method reduced production time to be
comparable with deep frying while, in the opinion of Sanders, retaining the quality of pan-
fried chicken.

KFC's core product offering is pressure fried on-the-bone chicken pieces seasoned with Colonel
Harland Sanders' "Original Recipe" of 11 herbs and spices. The product is typically available in
either two- or three-piece individual servings or in a family size cardboard bucket typically holding
between six and 16 chicken pieces. In territories that follow the system handed down by Colonel
Sanders, such as Canada and the UK, each chicken is divided into nine different cuts (two
drumsticks, two thighs, two wings, two breast pieces and one keel); however, the United States
now uses an eight-piece cut.

The chicken is hand-breaded at individual KFC outlets with wheat flour mixed with seasoning in a
two- to four-minute process. It is then pressure fried for between seven and 10 minutes (the
timing differs between countries) in oil at 185 degrees Celsius. Following this, the chicken is left
to stand for 5 minutes in order for it to sufficiently cool before it is placed in the warming oven. It
is KFC policy to discard chicken if it has not been sold within 90 minutes in order to ensure
freshness. The frying oil varies regionally and versions used
include sunflower, soybean, rapeseed and palm oil. A KFC executive stated that the taste of the
chicken will vary between regions depending on the oil variety used and whether the chicken has
been corn-fed or wheat-fed.

Zinger served with crispy fries and Thai chili sauce in Malaysia
As well as its core chicken on the bone offering, KFC's major products include chicken burgers
(including the Zinger and the Tower); wraps ("Twisters" and "Boxmasters"); and a variety
of finger foods, including crispy chicken strips and hot wings. Popcorn chicken, which consists of
bite-sized pieces of fried chicken, is one of the most widely available KFC products. In some
locations, such as in Australia, Belarus, Malaysia and South Africa, chicken nuggets are also
sold.

The 11 herbs and spices

KFC Original Recipe

Original Recipe chicken sold in the iconic bucket

Sanders' Original Recipe of "11 herbs and spices" is one of the best known trade secrets in the
catering industry. The recipe is not patented, because patent law requires public disclosure of an
invention and provides protection only for a strictly limited term, whereas trade secrets can
remain the intellectual property of their holders in perpetuity.

A copy of the recipe, signed by Sanders, is held inside a safe inside a vault in KFC's Louisville
headquarters, along with 11 vials containing the herbs and spices. To maintain the secrecy of the
recipe, half of it is produced by Griffith Laboratories before it is given to McCormick, who add the
second half.

In 1999, a couple who bought the house formerly occupied by Colonel Sanders found scribbled
notes purported to be the secret recipe. Initially, KFC wanted to file a lawsuit against the couple
to stop an auction of the notes but, by early 2001, it dropped the lawsuit, claiming the scribbled
notes are "nowhere close" to the original recipe.

Joe Ledington of Kentucky, a nephew by marriage of Colonel Sanders, claimed to have found a
copy of the original KFC fried chicken recipe on a handwritten piece of paper in an envelope in a
scrapbook. In August 2016, Chicago Tribune staffers conducted a cooking test of this recipe and
claimed after a few attempts that, with the addition of the MSG flavor-enhancer Ac'cent, they
produced fried chicken which tasted "indistinguishable" from the chicken they purchased at KFC.

Regionalized menus
KFC adapts its menu internationally to suit regional tastes and there are over 300 KFC menu
items worldwide. Some locations, such as the UK and the US, sell grilled chicken. In
predominantly Islamic countries, the chicken served is halal. In Asia, there is a preference for
spicy foods, such as the Zinger chicken burger. In many international markets, the seasoning
used for the core chicken pieces product is available as a hot and spicy version as an alternative
to the classic KFC recipe. The hot and spicy coating, as well as having a spicier flavour, also has
a crispy consistency. In Bangladesh, India, Nepal and Sri Lanka, a grilled chicken known as
"Smoky Red" is available. KFC locations in Taiwan, Hong Kong, Macau and Vietnam offer a
roasted option known as Flava Crava. KFC's menu in China includes, among other items
incorporating Chinese food items, rice bowls, noodle dishes, and chicken prepared in the style of
Peking duck. Some locations in the US sell fried chicken livers and gizzards. A small number of
US outlets offer an all-you-can-eat buffet option with a limited menu.

Value menu items are sold under the "Streetwise" name in locations such as Canada, Nigeria,
South Africa and Mauritius. Side dishes often include French fries, coleslaw, barbecue baked
beans, corn on the cob, mashed potato, bread rolls and American biscuits. Salads include
the bean salad, the Caesar salad and the garden salad. In a number of territories, KFC
sells onion rings. In most of Asia, several Sub-Saharan Africa and Pacific markets, rice based
side dishes are often sold. In Greece and Bulgaria, potato wedges are sold instead of French
fries.
KFC’s Marketing Strategy – Actions that Led to KFC’s Success

KFC (Kentucky Fried Chicken) – A household name is one of the biggest fast-food
chains in the world. Who wouldn’t want to devour the spicy crispy fries with world-
class juicy sandwiches? Of course, we all would love to! KFC, headquartered in
Louisville, Kentucky, is the second-largest food chain after McDonald’s. Founded in
1952, it has been more than 70 years since its inception. The best part is that fried
chicken still caters to customers’ taste buds. Today’s blog will share a
comprehensive analysis of KFC’s global marketing strategy.

Segmentation, Positioning & Targeting of KFC’s Marketing Strategy

KFC uses demographic segmentation to serve the market according to customer

requirements. The majority of consumers are young and young adults. They used to
serve similar menus globally. Therefore, they were using an undifferentiated
targeting strategy. However, recently, KFC started to customise and localize the
menu. This gave them higher acceptability amongst the target audience. Also, they
changed their positioning strategy from a product-based strategy to a much more
value-based strategy.
KFC is strongly positioned amongst consumers for the chicken menu. This is
because few outlets offer vegetarian. However, when it comes to something non-
veg, KFC is nothing short of fantastic. The chicken wings and chicken bucket is
favorite amongst everyone. This targeting technique is the main reason why most
non-vegetarian lovers love KFC. Let us share the details on the 4P’s of KFC’s
marketing strategy.

Product Strategy of KFC

The product strategy is a brief outline of the products that a firm needs to sell its
customers. For example, KFC is popular for its world-class chicken burgers and
fries. However, the list doesn’t end here. KFC’s international marketing
strategy keeps on introducing new items within the menu. Thus, it helps build a
strong product strategy and supports marketing.

Some of the best products of KFC include:

 Rice bowls
 Chicken/Veg zinger burgers
 Fiery chicken wings
 Veg strips
 Boneless chicken wings
 Veg longer
 French fries
Promotion Strategy for KFC

The promotion strategy is connected to the ways in which the products of a firm can
be promoted in the market. For example, KFC promotes itself vigorously as the
world’s second-largest fast-food giant. The promotion occurs through television ads,
magazines, newspapers, and commercial hoardings. KFC has also sponsored the
Big Bash League in Australia and many cricket games. Another critical aspect of
KFC’s digital marketing strategy is the slogan “It’s Finger-Lickin”, good that
reminds its audience about lip-smacking food products and delicacies.
Pricing Strategy of KFC
The pricing strategy established by the firms sets up the prices of their products to
garner the audience’s attention effectively. KFC utilises a discriminatory pricing
policy for all products. The products have different pricing and ratings. The food
items sold in India are highly affordable. KFC promotes itself through multiple
mediums like TV, social media, News Papers, and more. However, it is still lagging
on sponsoring huge events.
The products sold in different countries have different pricing. Therefore, KFC used
price skimming and market penetration technique. This means that when their
competitors entered the market, KFC reduced the price a lot, and while introducing
new products, KFC kept the prices to a minimum compared to the later stages. This
helps them in getting the desired attention.

Placement Strategy of KFC

The placement strategy relates to tracking the places where a firm can contact
potential buyers for the products. But unfortunately, when it comes to KFC’s market
development strategy, KFC’s marketing team is extremely conventional to chalk out
the grounds of their restaurants.
With its audience-winning strategies, KFC has become a big giant today. It has got
more than 15000 outlets in 100 different countries. All the outlets of KFC are
strategically opened in different areas where colleges, schools and offices are there.
The reason is, that the youth is much more indulgent in fast-food products than the
aged population of the country.

Distribution Strategy of KFC

With more than 18000 restaurants offering finger-licking fast food worldwide, KFC’s
story and market strategy evolved a lot. The strong tie-ups and collaboration with
supply chain partners have helped them serve the customers much better. KFC
always keeps its outlets in premium areas like malls and shopping places. Also, the
KFC outlets carry out delivery for online orders. Thus, KFC covers both offline and
online deliveries.
Competitor Analysis in Marketing Strategy of KFC

KFC faces strong competition from Kokoriko, McDonald’s, Kyochan, and other
local/national food companies. There are also local fast-food joints that offer head-on
competition to KFC in developing nations. In developed nations, different fast-food
companies like Subway eat up their market share.
Two of the primary competitors of KFC are McDonald’s and Subway. Both of them
are in the category of burgers and sandwiches. McDonald’s specializes in the burger
category while Subway specializes in sandwiches. However, subway has still not
reached its distribution potential while McDonald’s and KFC are consistently at
loggerheads with the global presence.

Brand Equity of KFC’s Global Marketing Strategy

At present, KFC is presently ranked 147 in the global ranking table. With sustainable
positive brand positioning, the company was capable to create top of the mind
awareness (TOMA). Moreover, KFC’s global marketing strategy is catering to the
left-out segment that helped its brand building by introducing the veg menu and
localisation strategy. Another crucial factor that strongly helped KFC is the
continuous branding initiatives along with above-the-line and “below-the-line”
marketing strategies.

Market Analysis in the KFC Global Marketing Strategy

More than 50% of the sales of KFC come from developed nations. However, the
markets have a stagnant growth rate. On the other hand, developing nations like
India have a very high potential for KFC. The market is still growing, but fast-food
chains have a lesser acceptance rate in the developed market. Developed nations
are becoming more health-conscious.

KFC SWOT ANALYSIS:

Strengths:
. Second best global brand in fast food industry in terms of value ($ 6 billions)
. Original 11 herbs and spices recipe
. Strong position in emerging china
. Combination of KFC -pizza HUT and KFC-Taco Bell
. KFC is the market leader in the world among companies featuring chicken as their
primary product offering
. Strong trademarks recipes

Weaknesses
. Untrustworthy suppliers
. Negative publicity
. Unhealty food menu
. High employee turnover
. Lack of strong marketing efforts
. Franchise management globality is a challenges

Opportunities:
. Increasing demand for healthier food
. Home meal delivery
. Introduction new products to its only chicken range
. Venture into newer markets
. Introduce home delivery
. Introduce better vegetarian products

Threats:
. Saturated fast food markets in the developed economies
, threats from others eating joints/restaurants
. Local fast food restaurants chains
. currency fluctuations
. Lawsuits against KFC
. With the lifestyle of people changing due to growing awareness about healthy . low
calories and delicious at the same time