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RETAIL MANAGEMENT PROJECT | FRANCHISEE BUSINESS

OF KFC
GROUP|15202045-Siddharth Agarwalla
| 15202049-Sriman Pritiranjan Biswal |
15202060-Uma Shankar Mohanta |15202062-Verinder Singh Deol | 15202263-Reshu Jain1

About KFC
Founded as Kentucky Fried Chicken
byColonelHarland Sandersin 1952
KFC has been a brand and operating segment, termed
aconceptofYum! Brands since 1997 when that
company was of PepsiCoas Tricon Global Restaurants
Inc.
335 KFCs in India
18,875 outlets in 118 countries

KFC At ODISHA
KCF PAL HEIGHTS- 1 year 6 months
KFC SAHID NAGAR-7 months
KFC Cuttack -1 year 3 months
All these outlets come under one franchise: YUM
INDIA.
Interviewed: SUDEEPT TRIPATHY, Marketing Manager,
YUM INDIA(East circle).

Product Assortments
KFC menu consists of more than 30 products.
Deep Fried chicken.
Chicken nuggets.
Chicken Burger.
Veg Burger.
Rice bowl(Veg and Non Veg).
Core product in India: Zinger burger.
New product launch : Chizza
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Why KFC ?
Parent Company while providing a
franchise expects that the franchisee
should expand and promote KFC
and its brand image.
Trust on Franchiser and Brand image
of KFC.
Huge demand for products.
Future expansion options.

Survey Before Opening The


Franchise
Potential Competitor
Gauge the demand of the public
Market Research(direct , print media, social media)
Zero down on high street areas.
No. of mall based restaurants

KFCs Requirements
Multi Unit operations Experience.
Financial Qualifications.
Personal and financial reputation.
Motivation and commitment.
Cultural and brand fit
Growth Mindset.

How to become a KFC Franchisee.


Visit their official website and fill in the application form.
A security amount has to be deposited.

Initial Investment:
2 crores (On Bhubaneswar )

Other Fees (To Parent Brand)


Royalty Fee (7%)
Marketing & Advertising Fee (5%)

Expenses
Working capital Expenses: Rs 2,00,000/month
Food Expenses : 35%(Approx.)
Labor (Depending upon Sales): 8%(B Grade Cities) 15%(A
Grade Cities)
Logistics & Distribution : 25-30%
Rental : 6-10% (Of sales in metro cities)
(6%-Semi- Urban cities; 10% - Metro cities)
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Promotion Strategies
Target customers: Youngsters.
Advertisements: TV, Print
media, Internet
Parent company pays for all
the advertisement cost.
Take survey and get 10% off on
next visit.

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Work force
Hiring of work force is done by the franchisee.
Training and orientation is done by the parent
company.
No. of employees depends upon the no. of
Transactions per hour .
(It should be 4 employees per 10 customer in an hour)
Work hours: 8 hours (9 am-6 pm).
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MARKETING STRATEGIES OF KFC


KFC use 4 Ps of marketing (PRODUCT, PRICING,
PROMOTION,PLACE)
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, customers do not depend on us.
KFC is following the strategy of 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 open their outlets on reachable places.
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Standardization
All the products are standardized
The standards are set the parent company.
The standardizations include:

Furniture.
Color of the outlet (including the furniture).
Lighting.
Music & Television (have to pay 12000/year)
Menu
Serving procedure.
Billing procedure.
Product assortments.
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Problems Faced In Maintaining A


Franchise
Sales and Environment
Government rules and regulations
Pollution control
License issue
Customer management on Peak Days.
(PEOPLE , PROCESS , EQUIPMENT)
KFC , PAL HEIGHTS has reached saturation level (1 year
ago) where sales have become constant.
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Customer Feedback
Customer complaints are immediately dealt with.
Customer can lodge and inconvenience caused at the
outlet or the number provided.
Company responds within 12 hours either by call or
mail.

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THANK YOU
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