WELCOME TO KENTUCKY FRIED CHICKEN

INTRODUCTION
‡ Within the fast food industry, KFC has always been second to McDonald s both in terms of the number of branches that it has in various countries and its total sales and profits. ‡ In the United States, the sales performance of McDonald s summed up to over 20 billion US dollars in 2003, whereas KFC s only total slightly over five billion1-2. ‡ KFC was started by Harland Sanders as a tiny restaurant called Sander s Court and Café .

ANALYSIS OF ITS SUCCESS IN CHINA
‡ As early as 1985, KFC already had its eyes on this market. After a great deal of research, the first KFC restaurant opened in Beijing in 1987. ‡ Less than 10 years later, KFC managed to open 100 restaurants throughout China. By the end of 2004, KFC stores has reached 1200, double the number of its primary competitor, McDonald s. ‡ KFC s target customers are also different from those of traditional Chinese restaurants. They target the teenagers & give them numerous discounts to high school and college students, hoping to acquire such a group of young adults with a lot of money from their parents to spend as their primary customers.

maintenance. . are the goals that KFC aims to accomplish. accuracy. which stands for cleanliness. and speed. hospitality. product quality.‡ The acronym CHAMPS.

Porter s Six-Forces Analysis ‡ ‡ ‡ ‡ ‡ ‡ Entry Buyer/Supplier Bargaining Power Substitutes and Complements Rivalry Customer Identification and Customer Base Product range .

.Kentucky Fried Chicken ‡ Four P s of Marketing mix.

Marketing Mix ‡ The marketing mix is generally accepted as the use and specification of the 'four Ps' describing the strategic position of a product in the marketplace. ‡ Product ‡ Price ‡ Place ‡ Promotion .

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. is made using a garlic marinade and double dipping the chicken in flour before deep frying in a standard industrial kitchen type machine. KFC's primary product is pressure-fried pieces of chicken made with the original recipe. extra crispy.Product Anything that can be offered to a market to satisfy a want or need. The other chicken offering. KFC's specialty is fried chicken served in various forms.

or personality characteristics is called psychographic segmentation. .Segmentation ‡ Geographic segmentation : KFC has outlets internationally and sells its products according to geographic needs of the customer. ‡ Psychographic segmentation Dividing a market into different groups based on social class. lifestyle.

religion. KFC divides the market on demographic basis in this way: Age is between 6-65. Family size is 1-2. 3-4. 5+ Income is Rs 10. income. gender. the market is divided into groups based on an age. Behavior Segmentation: taste conscious quality conscious class combination of product and quality ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ . Family lifestyle is almost all. Gender is both males and females. occupation. family size.000 n above. race and nationality.Segmentation Demographic Segmentation In demographic segmentation.

price is the sum of all the values that consumers exchange for benefits of having or using the product or services .Price ‡ Price is the any amount of money that customers have to pay while purchasing the product. More broadly.

. Generally they target whole families rather than single persons. ‡ Gender: Both male and females are focused by KFC. ‡ Household Size: This plays a vital role in the demographic factor of the KFC. KFC finds its largest demographic in the young of any society. This being the reason for their Family Meals which are basically bundled items served at a nominally cheaper rate. The target and focus is on each and every individual in a society. gender does not play any role here.Price Demographic factors ‡ Age: Generally there is no age limit focus by the KFC.

Price Economic Factors ‡ Income: Income is an important key factor for KFC. ‡ Consumption Behavior: It estimates the behavior of people. . In the early rise of KFC they focused on the upper class but slowly are introducing economy meals that attract the lower to middle classes. This factor decides which class is to be targeted. their liking and disliking towards the pricing of the products.

Price Geographic location preference: ‡ urban ‡ semi urban .

Their products are priced high and target the middle to upper class people.Price Pricing Strategy ‡ Market skimming: KFC globally enters the market using market skimming. . Gradually they trickle down the prices focusing on the middle to lower class people to penetrate both sides of the market.

Price Competition ‡ We can compare the price of their products with McDonald. It prices its burgers. Dominoes and Pizza Hut. . If the competitor provides the same product at a lower price then the organization usually lowers the price of its product too. Fried Chicken is its main selling point and controls a monopoly over the Indian fast food market (only with fried chicken). In the case of KFC. French fries and soft beverages with relation to its competitors.

tax and excise duty and then comes the final stage of determine the price of their product. . They adopt the cost base price strategy. The products are bit high priced according the market segment and it is also comparable to the standard of their product.Price Cost Based ‡ KFC price their product keeping different points in view. In the cost based method we include the variable and fixed cost. Pricing of the product includes the govt.

Discounts and Bundled packages ‡ An organization finds most of its meanings and survival through promotion. At KFC. Promotion is the main tool to bring all chicken lovers attention towards its delicious one-of-a-kind product. . Using all the resources of promotion: ‡ Advertising ‡ Sales Promotion ‡ Public Relations ‡ Events and Experiences ‡ Coupons. the Fried Chicken.Promotion Promotion is the method used to inform and educate the chosen target audience about the organization and its products.

The concept of showing a normal customer deeply involved in devouring his piece of chicken usually turns on the drool factory in everybody s mouth and makes them rush to the nearest KFC. .Promotion Advertising The logo of the smiling Colonel is probably one of the most recognized faces in the world and instantly brings the image of fried chicken to one s mind. In India where chicken lovers are plenty abound these ads featuring normal people connect instantly and create a rush at their outlets. billboards. flyers and radio. Using the following methods KFC spreads its message of finger licking good chicken. ‡ KFC and its new company jingle. finger lcikin good is a frequent announcement on televisions.

. ‡ Sponsorship is another tool to strengthen an organizations image. KFC is currently the sponsor of the Australian Cricket Team and the colonel logo can be seen on their uniforms throughout the matches. The company anthem finger linkin good is just a wake up call to the consumer to remind them how good they felt the last time they ate KFC chicken.Promotion Advertising ‡ Using Reminder advertisements KFC stimulates repeat purchases of its products.

‡ Premiums ‡ Exhibits ‡ Coupons ‡ Entertainment .Promotion Sales Promotion ‡ KFC uses the following tools to further enhance its sales.

Additionally they provide meal vouchers and exciting offers in their print ads. Using coupons that one can acquire after spending a particular amount over a period of fixed time. customers can enjoy the benefits of free meals or free addons.Promotion Sales Promotion ‡ All KFC outlets offer its customers with various forms of incentives to buy its Chicken. . which the customer must cut and bring along.

Internal Factors SW ‡ Strengths ± Multibranding Strategy ± Name recognition and Reputation ± Employee Loyalty ± Global Expansion ± Targeting Non-Traditional Outlets ‡ Weaknesses ± Conflicting Corporate Cultures ± No defined target market ± Time it takes to market new products .

External Factors OT ‡ Opportunities ± International Appeal to American products ± Economies of Scale and Scope ± The downturn of the US economy ‡ Threats ± PETA ± Consumer health food trend ± Saturated fast food industry .

Product Development Bring back rotisserie chicken Concentric Diversification Add more to KFC product & service variety to the patients .Strategic Management Market Development KFC will introduce their present and new products and services into new geographic/demographic areas.

Implementations Market Research ‡ Determine area s demand to determine boundaries Expand menu ‡ Healthier choices Meals will be sold at cost ‡ Determine effects on budget .

S. International Presence & Competition The International Portfolio of 5 leading U. Brands give Yum! a distinctive advantage over the single-brand competitors. *In Thousands .Yum! Brands. Inc.

KFC Domestic & International .

KFC Menu .

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