STUDY OF IMPACT OF BRAND MARKETING PROGRAMS ON BRAND POSITIONING

In this study we will see how two of the most significant global brands in the Indian Fast Food Industry, McDonalds & Kentucky fried Chicken (KFC) have positioned themselves among the consumers and how far are they successful in their brand marketing program.

By Ayan Chakraborty
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The Fast Food Industry in India

There is no love sincerer than the love of food. - George Bernard Shaw (1856-1950) Irish writer.
The fast food industry in India has evolved with the changing lifestyles

of the young Indian population.

According to a recent research report, Indian Fast Food Market

Analysis, the Indian Fast Food Industry is anticipated to grow at around 34% during 2011-2014.

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The Fast Food Industry in India- contd..

Fast food habbit of Indians
fine dining QSR(quick service resturant) pubs and bars casual dining cafes

3% 5% 22%

44% 26%

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The Fast Food Industry in India- contd..

QSR constitutes maximum of the share of

customers when it comes to fast food sector.

McDonalds and KFC (Kentucky Fried

Chicken) are the two most significant names in the QSR sector that have ventured into the Indian market in the past decade

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MCDONALD'S CORPORATION:
McDonald's Corporation is the world's leading global foodservice retailer

with more than 33,000 locations serving approximately 68 million customers daily in 119 countries.
India entry in the year 1996

In India, McDonald's is managed by two Indian entrepreneurs. Amit Jatia, Vice

Chairman, Hardcastle Restaurants Pvt. Ltd. owns and spearheads McDonald's operations in West & South India.
Vikram Bakshi, MD and Joint Venture Partner, Connaught Plaza Restaurants

Private Limited, owns and operates McDonald's in North and East India

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KFC (KENTUCKY FRIED CHICKEN):

KFC, 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 is the worlds No.1 Chicken QSR and has industry leading stature across

many countries like UK, Australia, South Africa, China, USA, Malaysia and many more.
India entry- 1995
In India, KFC is growing rapidly and today has presence in 21 cities with close

to 107 restaurants. KFC is the fastest growing quick-service restaurant brand in India.

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Segmentation, targeting and positioning strategies

STP STRATEGIES Segmentation MCDONALDS McDonalds uses demographic segmentation strategy with age and income as the parameter. The main target segments are children, youth and the young urban family. KFC
KFC divides the market in the following way: Age- 10 to 65 Family size: 1-2, 3-5 5+ Income: higher than average- more than 10,000 pm. Family lifestyle: urbanized. Social class- upper and middle class Lifestyle- modern and urban adheres to western culture.

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STP STRATEGIES Targeting

MCDONALDS
The main target segments are children, youth and the adults of the young urban family. Targeted audiences in the segment include: children teenagers adults Children are targeted with the help of: happy meal toys play place Teenagers are targeted with: price sensitivity varieties of food offered Adults are segmented and targeted via the following criterias: right ambience products worth the money healthy

KFC KFC targets the upper and the upper middle class. Its main target includes the teenagers and the young adults. The streetwise menu is specially designed to attract the college goers. Low pricing and variety of menu is used by KFC to attract the young urban population. Slogans like KFC- students ka naya adda are designed to attract the student population of the country.

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STP STRATEGIES Positioning

MCDONALDS Today it has positioned itself as an affordable place to eat without compromising on the quality of food, service and hygiene. The outlet ambience and mild background music highlight the comfort that McDonalds promises in slogans like You deserve a Break today & Feed your inner child.

KFC It has positioned itself as the place of fun and gossip along with finger licking foods. Whenever it comes to fried chicken, the name KFC sprung ups on the mind of the customer. So KFC has positioned itself as a QSR which serves the best fried chicken in the world along with other delicacies which we can enjoy with our friends and family by paying an affordable price

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BRAND ELEMENTS:

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BRAND ELEMENTS BRAND NAME: LOGOS AND SYMBOL:

MCDONALDS MCDONALDS THE GOLDEN ARCHES

KFC

KFC(KENTUCKY FRIED CHICKEN)

COLONEL SANDERS

CHARACTER:

RONALD MCDONLAND

COLONEL SANDERS

SLOGANS: PACKAGING: COLORS: TASTES:

IM LOVIN IT! PAPER BAGS AND CUPS RED AND YELLOW. TYPICAL TASTE OF THE MCDONALDS BURGER.

SO GOOD!!!!!

PAPER BUCKET AND CUPS RED AND WHITE.

URLS:

KENTUCKY FRIED CHICKEN HAS TRADEMARKED ITS SPECIAL RECIPE OF 11 HERBS AND SPICES FOR FRIED CHICKEN. http://www.kfc.co.in/ http://www.mcdonaldsindi

a.com/

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MCDONALDS BRAND IDENTITY:

product:- tasteful, unique
best served burger and fries place of fun, youthful and vibrant, family and children symbol- ronald mcdonald happiness personified; the golden arches- easliy identifible.

Service: fast, accurate, friendly, & hassle free.

Cleanliness: operations are always spotless on both sides of the counter.

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KFCS BRAND IDENTITY:

Brand as product

"Wow" flavour that ignites the senses Signature recipes Freshly prepared real chicken Contrasting textual or flavour elements Leadership quality

Brand as place

Cooking and fresh cues Inventive, welcoming, informal Energetic, contemporary, warm

Brand as symbol

The colonel The bucket 11 herbs and spices Red and white Finger lickin' good So good!!

Brand as personality

Youthful, energetic Fun loving and social Street smart Innovative

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Brand as service

Genuine friendliness Attentive and prompt Dedicated to quality BMPS 6/26/2012

Secondary associations :
Secondary associations Company McDonalds Pioneer in the fast food industry; one of the biggest name and best brand KFC Fastest growing QSR; original recipe produces the best fried chicken

Country of origin
Channels of distribution Co-branding Celebrity spokesperson Events

USA
Franchise based, world largest franchiser Coca-cola Associates themselves with common man, specially children Associated itself with Ra-one promotion, Ra-one toys were provide with happy meals. One of the sponsors of Olympics. 2011 Most Innovative Food Companies 2011 #10 Most Admired Company in the World- fortune.

USA
Franchise based Pepsi Focus on college goers and young office goers. KFC associates itself with sports, sponsors of the Australian t20 tournaments, one of the sponsors of the ICC champions trophy. Fastest growing QSR in India under YUM brands!!!

Awards & recognition

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Marketing mix:
Marketing Mix (5 Ps) McDonalds KFC ( Kentucky fried chicken)

Product

Adapted to Indian food habits and culture It dropped ham, beef and mutton burgers from the menu. India is the only country where McDonalds serve vegetarian menu. Even the sauces and cheese used in India are 100% vegetarian. Market skimming : Initially higher then gradually decreases the price to attract the middle class and college gores Introduce happy price menu(25/-) McDonalds offers hygienic environment, good ambience and great service. There is a certain degree of fun and happiness that a customer feels each time he dines at McDonalds.

The heart of KFC is the great tasting unique products they offer to the consumer. The KFC brands most distinguishing characteristic is the taste the delicious, satisfying, and oneof-a-kind taste of its chicken. For Indian market is has specially developed veg items to satisfy the vegan population of India. Market skimming : Initially higher then gradually decreases the price to attract the middle class and college gores Introduce the streetwise range.(25/-) KFC has identified itself as a place where one gets the following: Youthful & Spontaneous High Energy & Outgoing Fun Loving & Social Humorous Street Smart Innovative & Creative

Price

Place

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Marketing Mix (5 Ps) Promotion

McDonalds There are three main objectives of advertising for McDonalds are to make people aware of an item, feel positive about it and remember it. Some of the most famous marketing campaigns of McDonalds are: McDonalds mai hai kuch baat Aap ke zamane mein, baap ke zamane ke daam. Im lovin it. McDonalds understands the value of both its employees and its customers. It understands the fact that a happy employee can serve well and result in a happy customer. The punch line Im lovin it is an attempt to show that the employees love their work at McDonalds and will love to serve the customers.

KFC ( Kentucky fried chicken) In India, where chicken lovers are aplenty, ads featuring normal people enjoying the chicken connect instantly and create a rush at their outlets. KFC spreads the message of Finger lickin good chicken through their ads. Famous lines: Finger lickin Good!! SO good!!

People

Service that Embodies Genuine HOSPI TA L I T Y!!!! What KFC Service is: Genuine Friendliness Happy Smiles Attentive Prompt Fussy About Food Accurate Knowledgeable about the KFC Menu Dedicated to Quality To maintain these attributes KFC trains their employees to give best of experience to its customers.

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Primary research: -analysis and recommendations:

Mcdonald's brand preference
Food service company's name ambience price

Factors

21% 48% 14%

10% 7%

No. of people Food 14 Ambiance 3 Service 3 Price 4 Company 6 s name

Based on group of 30 people aged between 19 and 35 from various works of life; belonging to middle class and upper middle class.

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Contd
KFC's brand preference
Food service company's name ambience price

Factors Food Ambiance

No. of people 21 1

14% 7% 7%

69% 3%

Service 2 Price 2 Companys 5 name

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Contd
Brand preferance
KFC McDonalds

Brand

No. of people

47% 53%

McDonalds 16

KFC

14

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Contd
Market share of fast food chains in India 2011(approx.)

Mcdonald's 39% 37% KFC Nirula's

Subway
Others 6% 8%

10%

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OUTCOME:
From the above pie-charts we can conclude that when

it comes to brand preference KFC scores more on food than McDonalds. But on all the other factors namely ambiance, service and companys name McDonalds scores more than that of KFC. Here price has a minimum effect on the consumers choice as both of them have more or less similar pricing. So we can say that McDonalds positioning as happy and fun place for family is certainly successful and when it comes to KFC their positioning strategy based on food it certainly successful.

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Recommendations:
McDonalds KFC

Keep control over franchises. Develop products for health conscious consumers. Consider the drive through centres. Keep an eye on possible mergers & acquisitions.

Keep control over franchises. Come up with new items regularly. Keep an eye on possible mergers & acquisitions. Improve brand exposure. Develop products for health conscious consumers. Consider home delivery options.
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Comparisons:
Factors McDonalds India entry 1996 No. of outlets 235 No. of cities 48 Workforce 10,000 Growth target 1000 stores by 2020 Investment to date Rupees 1,000cr Proposed Rupees 1,000cr investment KFC 1995 120 24 10,000 500 stores by 2015 $100m $120m

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Conclusion:
In the past few months, the fast-food restaurant chains

have taken jabs at each other, offering similar dishes, matching prices and opening restaurants in close proximity. KFC, which primarily serves chicken, has taken aim at its burger rival with some of its own burgers called Zingers. For customers who prefer chicken inside buns, there is a snack called, well, Snackers. McDonald's has responded with nuggets for those who like to chomp on chicken. So the above comparisons tell us the story of a battle royal between these two giants. So we have to wait and watch who gets the better of whom. Given the scale of investments and the pace of expansion, the two rivals look certain to step on the other's toes frequently.

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THANK YOU

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