KFC, founded and also known as Kentucky Fried Chicken, is a chain of fast food restaurants based in Louisville, Kentucky

, United States. KFC has been a brand and operating segment, termed a concept of Yum! Brands since 1997 when that company was spun off from PepsiCo as Tricon Global Restaurants Inc. KFC primarily sells chicken pieces, wraps, salads and sandwiches. While its primary focus is fried chicken, KFC also offers a line of grilled and roasted chicken products, side dishes and desserts. Outside the USA, KFC offers beef based products such as hamburgers or kebabs, poutine, pork based products such as ribs and other regional fare. The reason they changes from Kentucky fried chicken to KFC was that people got conscious when read the word “FRIED” which gave them an impression that it’s not healthy because it contain fat, so Kentucky fried chicken had to changed their trade name from KENTUCKY fried chicken to KFC. JUST TO avoids the fatty impression.

At the age of 40 as an operator of a service station in Corbin, Kentuncky, Colonel returned to his love of cooking and began to cook and serve food to hungry travelers from his own living quarters.

The Colonel devised his recipe for fried chicken using a secret blend of 11herbs and spices the same blend of recipe is still used in KFC all over the world and is called the “Original Recipe”

Since 1950’s KFC gas grown at a remarkable place from one road side restaurant into an internationally renowned restaurant chain and one of the largest chain of chicken restaurants in the world.

The business grew larger than the Colonel could handle, so he sold it to a group of people who formed the Kentucky Fried Chicken Corporation.

The COLONEL REMAINED KFC’s Goodwill Ambassador.

ALTHOUGH THE Colonel is no longer with us, but his philosophies of hardworking and excellent services to be the number one priority of KFC, will always be a part of KFC tradition

 24-hour service.  Free Delivery (111-532-532)  Online ordering.  Mobile unit.  Outdoor catering.  Branded Prepaid Coupons.  Corporate meeting, seminars & workshops at KFC  Special dining facility for business customers.  Health calculator and health tips.  Kid play area

 Who are my Comptitors? Direct Competitors: McDonald, Burger king, Subway etc. Indirect Comptetiors: Base Upon market share and substitute business.  How do I analyze them?

SWOT Analysis

PESTEL Analysis

Strengths:
     Brand Equity KFC secret recipe of 11 herbs and species. Stronger Franchises all over the world. Interactive relationship marketing. Chains for its convenience and menu variety.  Kid play area.

Weakness:
    Lack of focus on research and development. Lack of knowledge about their customers. They only focus higher income level people. Don’t blend with the local culture unlike McDonalds.

Opportunity:
       Growth of 18-24 age demographic. Home meal replacement market will exceed. International beef scare from mad cow and hoof and month disease. Updating the restaurants, balance menu. Changing customer lifestyle and taste. Increase delivery service. Increase competition from local and international outlet.

Threats:
 Bird flu.  Frozen food is not good for health and despite what so ever the standard they

maintain.  Change of customer demands.  Cultural threats from Muslim worlds.
 Current recession as decrease the buying power of customers.  Law and order situation (terrorism).  Existing and new competitors.

Political

 Global market.  Different political infrastructures.  Consumer taxation.  Figh target market.  Low cost and incomes.  Working within many social groups.  Increase employments.  Quality standard  Legislation for product.  Sustained logo  Quaity packing.  Local manufactures using foreign suppliers.

Economical Social Technological Legal Enviorment

 Company strategy  Segmentation  Target market  4 P’s

 Primary objective is to take advantage of the potential growth in other countries, to establish a strong position and to develop their image. Key success factors are ever continuing cost saving through R&D, innovation and use of new technology to work effienctly.  These success techniques will lower the costs and increase profit in the industry.

 Geographic segmentation:
KFC has outlets internationally and sells its products according to geographic needs of the customer. In India KFC focuses how geographically its customers demand different products. In north india Chicken is the main selling product, while in the south the Veg. items sell more than the chicken.

 Demographic segmentation:
In demographic segmentation, the market is divided into groups based pon an age, gender, family size,, income, occupation, religion, race and nationality.

KFC divides the market on demographic basis in this way:

 Age is between 6-65.  Gender is both males and females.  Family size is 1-2, 3-4, 5+  Income is Rs 10,000 n above.

Family lifestyle is almost all.

 Psychographic segmentation:
Dividing a market into different groups based on social class, lifestyle, or personality characteristics is called psychographic segmentation.

KFC divides market ,on the basis of psychographic variables like

 Social class- upper and middle class.  Lifestyle is not specific.  Personality is ambitious and authotarian.  Behavior segmentation:  Taste conscious.  Quality conscious.  Class.

“The process of evaluating each market segment’s attractiveness and selecting two and more segments”  KFC targets the “HUNGER” , and we know there is no compromise when it comes to “HUNGER”.  As the outlets of KFC are in posh area and prices are too high (overhead expenses-rent, air-conditioning, employees), so KFC targets upper and middle classes. Target market depends upon size and growth rate of population, company resources and structural attractiveness of market segment.

Product
Product variation Product differentiation Product innovation Product elimination

Price
Cost recovery pricing Penetration pricing Price skimming

Marketing Mix

place
Distribution Channel Direct Sales Indirect Sales E-commerce

Promotion
Individual communication Mass Communication Brand Management Corporate Identity

Product means goods and services that KFC offers to the target audience.  Brand name is the KFC (Kentucky Fried Chicken)  Variety Of products in taste and size 1. Chicken 2. Salads 3. Desserts 4. Snacks 5. Sandwiches 6. Burgers 7. Side  KFC believe in providing the Superior Quality to the valued consumers by using fresh ingredients and provide neat and clean environment.  Features of KFC are providing different and better taste with hot and Spicy version of chicken.  Packaging is used for the burgers and snacks.

Price is the amounts of money customers have to pay to obtain the product.  KFC offer different products at different list prices.  KFC provide special discounts to only employees and special customers.  Payment period, customer pays when the services are delivered to them.  Allowances are provided to employees.  Pricing Strategy : KFC pricing the products by keep the different points in the mind ,adopt cost base price strategy.

Place includes all company activities that make the product available to target consumers.  KFC adopt direct channel, product directly to customers.  Assortment, KFC provides two type of meals in respect of size 1. Family meal 2. Individual meal  Location, KFC has outlets per market area in the entire world.  Free home delivery  KFC uses the Push Strategy, to create -Awareness -Be different -Sound attractive

Promotion means activities that come merits of communicate the products and persuade target consumers to buy it.  to enhance public relation the companies, seminars and employee training classes.  KFC is the sponsor of various cricket clubs playing20-20 cricket, AS the 2020 cricket provides excitement and fun, the message KFC is trying to convey along with sponsoring is “MAXIMUM ENJOYMENT IN MINIMUM TIME”. As KFC is a fast food chain.

Bill Boards

News Paper Posters

Advertising

Internet Banner

TV Ads

Transit ads Leaflets

Focus of their strategy should be according to the different countries .Because they provide Markets which have high growth rate on the otherHand.KFC had difficult times with their previous name, but they came up well in the End, which gives an indication that it is in the market to STAY!!!!!