Project Report On CONSUMER BEHAVIOUR OF KFC

Submitted in Partial Fulfillment of the requirement of Bachelor of Business Administration (BBA-GEN) Guru Gobind Singh Indraprastha University

Under the Guidance of: Submitted By:

Dr.Ashita Sharma: Varun Gupta Enrolment No.: 0110601710

Evaluation Certificate
This is to certify that the project titled Consumer Behavior of KFC submitted by Varun Gupta of BBA (GEN), Semester III of Ansal Institute of Technology, Gurgaon affiliated to Guru Gobind Singh Indraprastha University, Delhi has been examined by the following examinee.

INTERNAL EXAMINER EXAMINER

EXTERNAL

Declaration
I Varun Gupta of Bachelor in Business Administration (BBA) hereby declare that the project work titled Consumer Behavior of KFC, which has been submitted to Guru Gobind Singh Indraprastha University, is an original work of the undersigned and has not been reproduced from any other source.

Date: Place: Ansal Institute of Technology, Gurgaon (Varun Gupta)

ACKNOWLEDGEMENT
A lot of hard work and effort has gone into this project. However, it would not have been possible without the kind support and help of many individuals. I would like to extend my sincere thanks to all of them. I am highly indebted to Dr Ashita Sharma for her guidance and constant supervision as well as for providing necessary information regarding the project and also for her support in completing the project. I would like to express my gratitude towards my parents and member of Ansal Institute of Technology for their kind co-operation and encouragement which help me in completion of this project. My thanks and appreciations also go to my colleagues in developing the project and people who have willingly helped me out with their abilities.

(VARUN GUPTA)

CONTENT
S.No. Topic 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. PREFACE INTRODUCTION INDIAN FAST FOOD INDUSTRY- OVERVIEW RESEARCH OBJECTIVES LITERATURE REVIEW METHODOLOGY OF STUDY STUDY RESULTS AND ITS INTERPRETATIONS CONCLUSION RECOMMENDATIONS QUESTIONNAIRE BIBLIOGRAPHY Page No. 5 8 12 18 19 21 22 39 40 85 89

PREFACE
The Fast Food phenomenon has finally come of age in India. According to the findings of the latest online survey from ACNielsen, over 70% of urban Indians consumes food from take-away restaurants once a month or more frequently. Of these 37% of adult Indian population do so at least once a week. This makes India one of the top 10 countries amongst the 28 surveyed, in terms of frequency of fast food consumption. The incidence of Fast Food consumption in urban India is accelerating much faster than most people anticipated. Changing lifestyles, an altered view towards out-of-home meals, a willingness to spend and, most importantly, the urban Indian acquiring a more global palette have catalyzed its consumption. As fast food consumption moves from being an impulse led occurrence to a part of everyday life, eating habits are changing rapidly. While eating fast food may have been uncharacteristic earlier, almost a third of urban Indians now claim to opt for fast food even for breakfast. As the rapid pace of an urban lifestyle exerts its demands, fast food will probably find itself the default choice. This will see an increasing proportion of inhome food and beverage consumption migrating outdoors. The fast food business has become ever more competitive, with various multinational fast food chain operators expanding into new geographies daily, along with the emergence of new players, new types of cuisines and new menu choices. Riding on the consistently impressive performance of the past one decade, global food retailing major Yum! Restaurants International is now aiming really big in India. After clocking 40% growth during the past five years, driven by the massive success of its flagship brand Pizza Hut here, Yum wants to log in a massive eight-fold growth in the next decade. Yums decade long affair with India went through some teething problems, most notably the ill-fated launch of KFC in 1995 in Bangalore. The launch got mired in a controversy,
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but the company has managed to put that behind and has been recording an impressive double digit growth since then, and today, over 1.7 lakh people walk into KFC outlets across the country every week. A major part of the India strategy is the allocation of clear roles to Pizza Hut and KFC to deliver on the vision. KFC will be the mass brand with focus on tasty food. And to make this possible a better understanding of KFC consumers was required. Brands have personalities that can scream quality, great taste, real value or other attributes. Through marketing and sales techniques, it is possible to improve and change consumers perceptions of a brand. Knowing how consumers view your brand is critical to developing the brand through a more effective marketing and promotion strategies. The study was undertaken to generate information on the lines of

Who is buying my brand / category Who are the heavy category buyers Why do consumers choose my brand Do consumers understand what my brand stands for How do they spend money on eating- out? What motivates consumer to purchase What is my brand personality perceived as and how does it compare to the competition What other categories interact with mine, and which are important What cross category opportunities are there How loyal are category buyers

The study was conducted in two phases. The first phase was carried to profile customers of KFC and Mc Donalds. The study was conducted at KFC and McDonalds outlets in Noida and Rajouri and covered 100 Respondents for each. Questionnaire included demographic profile and behavior-based profile mainly in for of open-ended questions. After preparing the questionnaire and selecting the respondents for the survey, it was

thought best to get the questionnaire filled by personally interviewing the people eatingout upon their exit from these joints. The survey was an eye opener of sorts in many respects as the agency got many valuable insights from the extensive research carried out. We came to know that the present key customers are young adults either executives or students who come with friends in groups of 2 to 5. The store mainly attracts customers from limited neighboring areas. The frequency of eating out is very high among KFC consumers most of who are non-vegetarians. The most important reasons being to catchup with friends and being in the area. Data also indicates that there is a high inclination of KFC consumers to also visit Mc Donalds while very less inclination of Mc Donalds consumers to visit KFC The second phase was carried out was an In-store exercise with a sample size of 270 respondents and focused on 6 main products of KFC and understanding of their consumers. The products were Chana Crunch Snacker, Chicken Crunch Snacker, Hot & Crispy Chicken, Original Recipe, Zinger Burger and Chicken in a Bucket. The Key findings were the Key target segment for each product, the product as it stands for in minds of people, the day part and occasion when it is consumed; and also the need states it satisfies. These further helped devise a positioning strategy for each of these products so as to give them a personality of their own which will stand out in customers minds the moment they think of food. The complete analysis and other results are included in this report. It was an enriching experience and I was able to learn a lot from the project. It improved my understanding of various concepts and the most valuable input was the ability to integrate classroom learning with on-field learning. The fast food industry is all set to grow at a scorching pace and it is an honor to be involved with an International Player in that segment and do this project on their ad-agencys behalf.

INTRODUCTION
Fast Food: A fast-food restaurant is characterized both by food which is supplied quickly after ordering, and by minimal service. Often this food is referred to as fast food. In response to increasing backlash against "fast food", the industry has been trying to move the public away from that term over the past five years, shifting to the term quick service restaurant (QSR for short). Consumers still refer to the restaurants as fast-food restaurants despite the industry's efforts to change them The food in these restaurants is often cooked in bulk in advance and kept cold, or reheated to order. Many fast-food restaurants are part of restaurant chains or franchise operations, which ship standardized foodstuffs to each restaurant from central locations. There are also simpler fast-food outlets, such as stands or kiosks, which may or may not provide shelter or chairs for customers History: Although fast-food restaurants are often seen as a mark of modern technological culture, the idea of ready-cooked food to go is as old as cities themselves, with unique variations from culture to culture. Ancient Roman cities had bread-and-olive stands, East Asian cultures feature noodle shops. Flat bread and falafel are ubiquitous in the Middle East. The modern history of fast food in America is connected with the history of the hamburger, as the earliest fast-food outlets sold hamburgers as their primary product. The American company White Castle is generally credited with opening the first fast-food outlet in 1921, selling hamburgers for five cents apiece. Food Preparation: The convenience of traditional street food around the world, lies in serving one or two basic ingredients that can be cooked in batches and served quickly on the spot. Modern commercial fast food, by contrast, is often highly processed and prepared in an industrial fashion, i.e., on a large scale with standard ingredients and standardized cooking and production methods. It is usually rapidly served in cartons or bags or in a plastic wrapping, in a fashion which minimizes cost. In most fast food

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operations, menu items are generally made from processed ingredients prepared at a central supply facility and then shipped to individual outlets where they are reheated, cooked (usually by microwave or deep-frying) or assembled in a short amount of time. This process ensures quality and consistency of product, but is also the key to being able to deliver the order quickly to the customer and eliminate labor and equipment costs in the individual stores. International Chains: Fast-food restaurants are popular in the United States, the source of most of its innovation. Multinational corporations typically modify their menus to cater to local tastes and most oversees outlets are owned by native franchisees. McDonald's in India, for example, uses lamb rather than beef in its burgers because Hinduism traditionally forbids eating beef. In Egypt and Saudi Arabia, all menu items are halal. However, these concessions to local practice have not quashed criticism. Additionally, multinational fast-food chains are not the only or even the primary source of fast food in most of the world. Many regional and local chains have developed around the world to compete with international chains and provide menu items that appeal to the unique regional tastes and habits. Most fast food in the developing world, however, is provided by small individual mom and pop eateries. In the developing world, multinational chains are considerably more expensive; they usually are frequented because they are considered chic and somewhat glamorous and because they usually are much cleaner than local eateries Nutritional Value: Because the fast food concept relies on speed, uniformity and low cost, fast food products are often made with ingredients formulated to achieve a certain flavor or consistency and to preserve freshness. This requires a high degree of food engineering, the use of additives and processing techniques that substantially alter the food from its original form and reduce its nutritional value. Changes: Fast-food chains have come under fire from consumer groups (such as the Center for Science in the Public Interest, a longtime fast-food critic) over the past decade.

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Some of the concerns have led to the rise of the so-called Slow Food movement. This movement seeks to preserve local cuisines and ingredients, and directly opposes laws and habits that favor fast-food choices. Among other things, it strives to educate consumers' palates to prefer what it considers richer, more varied and more nourishing tastes of fresh local ingredients harvested in season Some of the large fast-food chains are beginning to incorporate healthier alternatives in their menu, e.g., salads and fresh fruit. However, some people see these moves as a tokenistic and commercial measure, rather than an appropriate reaction to ethical concerns about the world ecology and people's health. McDonald's has announced that in March of 2006, the chain will include nutritional information on the packaging of all of its products Consumer appeal: Fast-food outlets have become popular with consumers for several reasons. One is that through economies of scale in purchasing and producing food, these companies can deliver food to consumers at a very low cost. In addition, its predictability can be reassuring to a hungry person in a hurry or far from home.

World over, American and American-style fast food outlets have been popular for their quality, customer service and novelty. Many consumers nonetheless see them as symbols of the wealth, progress and well-ordered openness of Western society and therefore become trendy attractions in many cities around the world, particularly among younger people with more varied tastes Criticisms: Because of its convenience, fast food is popular and commercially successful in most modern societies, but it is often criticized for having the following shortcomings: Many popular fast-food menu items are unhealthy, and excessive consumption can lead to obesity Exploitative advertising and marketing are used, especially directed at children (which can have an adverse effect on their eating habits and health)

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It causes environmental damage through excessive packaging and clearing forests for animal rearing

It reduces the diversity of local cuisines

It survives on a low-wage, low-benefit employment model, promoting exploitative labor practices throughout the food and food service industry

Its franchising scheme (royalties)

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INDIAN FAST FOOD INDUSTRY- OVERVIEW

In the mid 1990s, a spate of global fast food chains entered India hoping to capture a part of Indian fast food segment. But they found it difficult to establish themselves. Gaining acceptance locally and blending into the Indian culture proved difficult. McDonalds began to look at the Indian market sometime in 1990, when its executives started making exploratory trips. By 1994, some international suppliers of McDonalds had visited India to identify local partners. Meetings with agriculturists were conducted with a view to set up a supply chain. Finally, all this fructified when a 50:50 joint venture was entered between McDonalds and Hardcastle Restaurants Pvt. Ltd. owned by Amit Jatia and his family. Similarly, Vikram Bakshi (whose family was in real estate) entered into a JV with McDonalds for Delhi. Both partners signed the JVs in April 1995. In 1996, Dominos set up base in India by entering into a long-term franchisee agreement with the Bhartia brothers who had businesses in chemicals and fertilizers. The previous year, KFC has chosen to set up its own outlet in Delhi, when it entered the Indian market. Pizza Hut entered in 1996, and opened its first restaurant in Bangalore. While McDonald's was establishing itself Domino's faced tough competition when it entered India, with homegrown players like Niruala's and Pizza Corner and MNCs like Pizza Hut and Wimpy's already having established themselves in the market. The home delivery concept that the company introduced had not yet caught on. Besides, Domino's was in a dilemma about how it should position pizza - as a meal or a snack? How far should they go in indianising the pizza so that it had mass appeal, and yet did not lose its identity? In 1997, McDonald's was facing several problems. Most Indians thought McDonald's was expensive, and many didn't like the fact that it served only non-vegetarian meals. The 'bland' taste of its preparations didn't go down well with the Indian palate. In 1998, the company faced intense competition from domestic food chains. Globally, McDonald's success had been built on its commitment to the QSCV (quality, service, cleanliness and value) principle. However, Indian customers viewed the product sold by McDonalds not

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as burgers per se but as fast service in a clean setting. This notion of value was something that could not remain unique. Other fast food chains began to adopt the same 'fast and clean service' formula, and soon it wasn't a distinguishing feature of McDonald's anymore. The entry of Kentucky Fried Chicken (KFC) was greeted with protests of farmers, consumers, doctors and environmentalists. The fast food chain, which initially planned to set up 30 restaurants by 1998, was not able to do so, as its revenues did not pick up. In early 1998, KFC began to investigate whole issue more closely. Their findings revealed that KFC was perceived as a restaurant serving only chicken. Indian families wanted more variety, and the impression that KFC had only one item on its menu, didnt enhance its appeal. Moreover, KFC was also thought to be expensive. KFCs failure was also partly attributed to certain drawbacks in the message it sent out to consumers about its positioning. It wanted to position itself as a family restaurant and not as a teenage hangout. But according to analysts, the family restaurant positioning didnt come clearly in its communication. Consumers saw it as a fast food joint specializing in a chicken recipe.

INDIANIZING ALL THE McDonalds WAY It gain acceptance locally, McDonalds had to modify its menu substituting mutton for beef in the burgers, (something it had never done in any other market), choosing names like McAloo and Maharaja Mac, and introducing variations and dishes that were not available at any McDonald's outlet anywhere in the world. From the meticulous sourcing of raw materials and the elimination of beef and pork from its desi menus to even segregating the vegetarian and non-vegetarian workers, McDonalds seemed to be extremely orthodox in its approach. India was the first country to use the complete vegetable burger, creating the eggless mayonnaise vegetable burger, so was the case with mutton burgers.

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KFC HISTORY
Chicken is our business, but innovation and customer satisfaction are our passions Since the 1950's, KFC has grown at a remarkable pace from one small roadside restaurant, to an internationally renowned restaurant chain - the largest chain of chicken restaurants in the world. It was at the age of 40 working as a service station operator in Kentucky that the Colonel Harland D Sanders began to serve food to hungry travelers from his own living quarters. Before long customers were turning up for food alone, so he moved across the street to a motel and 142-seater restaurant which he named "Sanders". It was during this time that the Colonel devised his recipe for fried chicken using a secret blend of eleven Herbs and spices. His restaurant became so popular the state governor made Harland Saunders a Kentucky Colonel in honour of his fine contribution to state cuisine. Using his last $105 Social Security cheque he set up Kentucky Fried Chicken, his own chicken franchising business, travelling across the country from restaurant to restaurant cooking chicken for the owners and their employers. Following the owners' approval of his special KFC recipe, Colonel Sanders entered upon a handshake agreement, which provided him with a nickel for every chicken the restaurant sold. In January 1997, PepsiCo, Inc. announced the spin-off of its quick service restaurants -KFC, Taco Bell and Pizza Hut -- into an independent restaurant company, Tricon Global Restaurants, Inc. In May 2002, the company announced it received shareholders' approval to change it's corporation name to Yum! Brands, Inc. The company, which owns A&W All-American Food Restaurants, KFC, Long John Silvers, Pizza Hut and Taco Bell restaurants, is the world's largest restaurant company in terms of system units with nearly 32,500 in more than 100 countries and territories. KFC now offers great tasting meals and snacks in over 30,000 restaurants around the world. Every day over 6.5 million people make KFC part of their lives. Laid head to

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claw, KFC chickens consumed worldwide would stretch 458,065 kilometres and would circle the earth at the equator 11 times. When Indias first KFC (Kentucky Fried Chicken) opened in 1995, its arrival sparked immediate controversy, ranging from local government charges that the restaurant sold carcinogenic foods laced with harmful monosodium glutamate; to tens of thousands of farmers protesting against a suspected takeover of the locally based agricultural system. But the company has managed to put that behind and has been recording an impressive double-digit growth since then, and today, over 1.7 lakh people walk into the 12 KFC outlets across the country every week. The Delhi outlet saw over 10,000 storming into it in the first two days of opening! As a part of the growth strategy, YIR plans to add about 20 more KFC footprints from the present 12 outlets. A major chunk of this operation will target big cities, especially Delhi and Mumbai, as it wants to tap these markets first. The company plans to make it a mass brand, which indicates the beginning of the expansion spree, as KFC is present at only 12 locations. Also, this expansion will be company-financed to a large extend, unlike Pizza Huts franchisee model, with the KFC Hyderabad being a case in point. The other significant point is KFCs efforts too woo vegetarians in India, a first in the world. Combine the inclusion of vegetarian items and with the affordability platform, and its clear the company is ready to tweak its global positioning around tasty-chicken platform to woo Indian vegetarians. The positioning, which is in the process of getting finalized, is not going to be chicken specific but for taste. This research is designed to confirm the feasibility of this fact and also find the key consumers demographic, behavioral aspects and need states to fine tune the positioning strategy. This is just the beginning of the decade long plan for consolidating its position in here.

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McDonalds Our first restaurant opened on 15th April 1955 in Des Plaines, Illinois, U.S.A. Almost 50 years down the line, we are the world's largest food service system with more than 30,000 restaurants in 100 countries, serving more than 46 million customers every day McDonald's opened its doors in India in October 1996. Ever since then, McDonalds has opened family restaurants in Mumbai, Delhi, Pune, Ahmedabad, Vadodara, Ludhiana, Jaipur, Noida Faridabad, Doraha, Manesar. McDonalds in India is a 50-50 joint venture partnership between McDonalds Corporation [USA] and two Indian businessmen. Amit Jatias company Hardcastle Restaurants Pvt. Ltd. owns and operates McDonald's restaurants in Western India. While Connaught Plaza Restaurants Pvt. Ltd headed by Vikram Bakshi owns and operates the Northern operations. Amit Jatia and Vikram Bakshi who share McDonald's complete commitment to Quality, Service, Cleanliness and Value (QSC&V) signed their joint-venture agreements with McDonald's in April 1995, after which they trained extensively, along with their Indian management team, in McDonald's restaurants in Indonesia and the U.S.A. before opening the first McDonalds restaurant in India. McDonald's India has developed a special menu with vegetarian selections to suit Indian tastes and preferences and does not offer any beef or pork items in India. In addition, they have re-formulated some of their products using spices favoured by Indians. Among these are McVeggie burger, McAloo Tikki burger, Veg. Pizza McPuff and Chicken McGrill burger. They also created eggless sandwich sauces for our vegetarian customers. Even their soft serves and McShakes are egg-less, offering a larger variety to our vegetarian consumers.

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NEED FOR STUDY

Knowing and understanding customer needs is at the centre of every successful business, whether it sells directly to individuals or other businesses. Once you have this knowledge, you can use it to persuade potential and existing customers that buying from you is in their best interests or alter it to satisfy customers wants, needs and ultimately delight him with your product. The incidence of Fast Food consumption in urban India is accelerating much faster than most people anticipated and western quick service restaurants (QSRs) are increasingly making their presence felt in India. Mc Donalds entered India a decade ago and have succeeded in expanding rapidly and successfully. They had targeted kids & parents initially and have now moved on to popularizing their menu options and drive affordability. Past research has also showed McDonalds to have a high popularity amongst kids and their preferred choice when eating out. KFC also entered India almost a decade ago but has remained largely dormant in its marketing activities. However it now wishes to expand its presence across various cities and step up its marketing aggression. In that context it wants to explore Phase I- The manner in which people evaluate and relate to various branded QSRs, his perception of KFC, key customers, their demographic and behavioural profile, occasions of visit and key similarities and differences between KFC and McDonalds. Whether is should be positioned as a snack or a meal joint and where is KFC losing out or is at an advantage. Phase II- The manner in which people choose and relate to various products at KFC, key customers, their demographic and behavioural profile, occasions and time of visit. Alternate choices and expectations while eating-out.

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RESEARCH OBJECTIVES
The objective of the research broadly is, Understanding the KFC consumer. To be able to understand the consumer behaviour for fast food industry, information in following areas need to be found out:

Who is buying my brand / category Who are the heavy category buyers Why do consumers choose my brand Do consumers understand what my brand stands for How do they spend money on eating- out What motivates consumer to purchase What is my brand personality perceived as and how does it compare to the competition What other categories interact with mine, and which are important What cross category opportunities are there

The same exercise is repeated in Phase II but with a focus on six products of KFC amongst KFC consumers.

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LITERATURE REVIEW
(1) Urban Indian Consumers amongst the Top 10 Most Frequent Eaters of Fast Food Globally

One-third of urban Indians opt for fast food even during breakfast, cite Cleanliness and Hygiene as the clincher for brand choice Asians flock to fast food counters more frequently than their American and European counterparts

The Fast Food phenomenon has finally come of age in India. Urban Indians now find themselves amongst the top 10 most frequent consumers of Fast Food across the globe. According to the findings of the latest online survey from ACNielsen, the worlds leading market research firm, over 70% of urban Indians consume food from take-away restaurants once a month or more frequently. Of these 37% of the adult Indian population do so at least once a week. This makes India one of the top 10 countries amongst the 28 surveyed, in terms of frequency of fast food consumption. (http://www.acnielsen.co.in/news.asp?newsID=112) (2) Protest marks KFC launch in Mumbai, expansion plan May 11, 2006 The launch of fast food major Kentucky Fried Chicken's (KFC) outlet and its announcement of countrywide expansion plan here Thursday were marked by protests against the alleged maltreatment of chicken by the company. Activists of the People for Ethical Treatment of Animals (PETA), a non-government organisation, demonstrated against KFC's treatment of animals before the new restaurant in the western Mumbai suburb of Bandra. They held placards alleging that KFC's suppliers keep chickens in overcrowded farms. "KFC is the largest buyer of chicken and therefore the largest killer of chickens too," Jaya Simha, campaign and legal affairs coordinator of PeTA, told IANS.

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"Ideally we would like the world to turn vegetarian. But the least KFC can do is keep the chicken comfortable till they are killed," Simha said. KFC, the world's largest chicken restaurant chain, Thursday also announced its expansion plan to have up to 28 outlets in the country by the end of 2006. "By what we have experienced till now, our customers have had the best of experiences with us," said Sandeep Kohli, managing director (Indian subcontinent) of "Yum! Restaurants International" (YRI), whose flagship brand is KFC. "We plan to expand to wherever our customers are and there is no limit to our expansion. By the year-end we will have anywhere between 25-28 outlets," Kohli said. KFC, which opened its first restaurant in Bangalore in 1995, now has 15 outlets including five in Bangalore, three in Delhi, two in Pune and one each in Mumbai, Kolkata, Chandigarh, Ludhiana and Hyderabad. With around 2,000 customers already being handled per outlet every day in the country, KFC's presence in Mumbai is an important step in extending the brand's presence in India, Kohli said. Speaking about the long delay in entering the Mumbai market, he said the reason was that the company always looked to maintain its presence in the most important business location of any city. "We were waiting for the right location all this while," Kohli clarified. With global sales of $13.2 billion, company officials view India as a key strategic market with immense potential for future growth. KFC today has more than 12,300 restaurants in more than 80 countries serving eight million customers everyday. It is one of the five brands of YRI including, Pizza Hut, Taco Bell, A&W and Long John Silver's. (IANS)

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PROCESS/METHODOLOGY OF STUDY
MODUS OPERANDI Knowing KFC and understanding its problems since its entry in India Identification of customers, products and other differencing features through researches done for KFC Bangalore Studying KFC brand identity, Emotional, Experiential and Positioning Aspect of KFC and KFC Ad-cept finding Designing a questionnaire that incorporates all factors which have a say directly or indirectly in a consumers decision (A sample of the questionnaire is attached with the report) Sampling A statistical approach to decision making Sample size chosen 200 consumers for Phase I and 270 for phase II Proposed time for completion of the project 8 weeks Data sources: Primary data Consumers responses to their answers to questions in questionnaire. Secondary data Collected from documents of the company, Past MR by various reputed organizations, magazines and online resources. Research environment Outside KFC and Mc Donalds outlets for Phase I and In-store KFC for Phase II Areas chosen for study: Noida Sector 18 and Rajouri Garden Sample is chosen at random for phase I and for phase II, consumers of specifically these products are chosen are interviewed. Interviewing customers who have just eaten at these outlets Sample comprised the head of the group Collection and tabulation of all data

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Analysis and data interpretations Drawing inferences from the sample statistics Presentation of result

RESEARCH METHODOLOGY
We followed the non-probability sampling method as no well-defined databases or lists were available (sampling frame) for our target population from which we could randomly pick up sample elements. Hence we followed random sampling. For Phase I- Data was collected from two outlets of KFC at Noida Sector 18 and City Square Mall, Rajouri garden and a sample size of 100 respondents was covered. Similarly 100 respondents were interviewed at two locations of McDonalds outlets at Sector 18 and Center Stage Mall, Noida. People coming out of these outlets after eating were questioned using a structured questionnaire. For Phase II- Date was collected from two outlets of KFC at Noida Sector 18 and City Square Mall, Rajouri garden and a sample size of 270 respondents was covered in total. Six products of KFC- Chana Crunch Snacker, Chicken Crunch Snacker, Hot & Crispy Chicken, Original Recipe Zinger Burger had 50 respondents each and Chicken in a Bucket had 30 respondents. The research also tried covering the entire days timings from 11 a.m. to 11 p.m. so that it has a fair reflection on its findings and was directed at people who had visited the outlet before.

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STUDY RESULTS AND ITS INTERPRETATIONS

PHASE- I I. DEMOGRAPHIC PROFILE OF RESPONDENTS (1) SEX PROFILE OF RESPONDENTS
M c D o n a ld 's R e s p o n d e n ts S e x R a tio K F C R e s p o n d e n t's S e x R a tio

44% 56%
N o . o f F e m a le s o . o f M a le s N

38%

62%
N o . o f F em ales o. of M a le s N

Figure 1.1a

Figure 1.1b

KFC consumers show a male skew vis--vis Mc Donalds which has an even distribution. (2) AGE DISTRIBUTION OF RESPONDENTS
A G E W IS E D IS T R IB U T I O N O F K F C C O N S U M E R S 10% 19% 13%
AG E W IS E DIS TRIBUT IO N O F M c DO NAL D's CO NS UM ERS

12%

8%

32% 58%
A G E B e l oAwG 1E 8 1 8A- 2G 5E 2 5A- 3G 5E A b o v e 3 5

4 8%

A G E B elow 18 A G E 18-25 A G E 25-35 A G E A bove 35

Figure 1.2a

Figure 1.2b

Age distribution of Respondents shows both KFC & Mc Donalds being dominated by the age group of 18-25 or the Young Adults. The next group is between 25-35 years again for both fast food joints. But the point to be noted here is that in case of Mc Donalds, a major segment from these age groups are also coming with kids and usually the decision makers are the kids themselves which is not the case with KFC.

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(3) OCCUPATION OF RESPONDENTS

OCCUPATION OF KFC RESP ONDENTS O C C U P A T IO N O F M c D O N A L D ' s R E S P O N D E N T S

1% 40%

10% 23%
51%

0%

11% 16%

8%
STUDENT(Sc hool) Housew if e STUDENT(College) Working

18%
STUDENT(Pos t Grad) Retd. H o u s e w if e W o r k in g

14% 8%
S T U D E N T ( S c h o oSl)T U D E N T ( C o lle g S T U D E N T ( P o s t G r a d ) e) R e td .

Figure 1.3a

Figure 1.3b

Mc Donalds has dominance in the working segment primarily driven by families. KFC clearly is the preferred choice of youth & young adults. (4) NUMBER OF PEOPLE IN THE GROUP
N u m b e r o f p e o p l e i n th e K F C R e sp o n d e n t's G r o u p
N u m b e r o f p e o p le in t h e M c D o n a l d ' s R e s p o n d e n t ' s G r o u p

3% 43%

11%

14%

4%

43%
N o o f Pe o p le in th e g r o u p = 1 N o o f Pe o p le in th e g r o u p = 2

47%

35%

N o o f Pe o p le in th e g r o u p = 3 to 5 o o f Pe o p le in th e g r o u p = M o r e th a n 5 N

N o o f P e o p le in t h e g r o u po = o1 f P e o p le in th e g r o u p = 2 N N o o f P e o p le in t h e g r o u po = o3 ftoP5e o p le in th e g r o u p = M o r e t h a n 5 N

Large families show a preference for Mc Donalds whereas KFC has more nucleus audience profile. Apart from single combos and bucket we also have duet meals.

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(5) NATURE OF GROUPS

N A T U R E O F G R O U P -K F C F R IE N D S F A M IL Y C O L L E G U E S L O N E A N A T U R E O F G R O U P S - M c D O N A L D 's F R IE N D F A M IL Y O L L E G U E S O N E S C AL

10%

9%

13%

5%

18%

63%

28%

54%

Figure 1.5a

Figure 1.5b

For Mc Donalds and KFC the highest percentage of Respondents coming to these outlets are with friends followed by families. But KFC has 9% more respondents coming with friends than Mc Donalds while Mc Donalds has a 10% more respondents coming with families than KFC.

27

(6)FOOD PREFERENCE OF EXISTING CONSUMER GROUPS

KF C C O N SUM ERS M c D O N A L D 'S C O N S U M E R S

26%

12% 36%
O n ly Ve g O n ly N o n -Ve g Mixe d

26%
O n ly V e g O n ly N o n - V e g M ixe d

62%

38%

Figure 1.6a

Figure 1.6b

While Mc Donalds seem to find appeal to all three segments, KFC seems to be losing out on mixed groups. We may have to give some support to our vegetarian products. (7) INDIVIDUAL VEG/NONVEG SPLIT
VE G/NONVEG SPLIT KFC-TOTAL 77 202

Mc D-TOTAL 0 50

147 100 150 VE Split G 200

215 250 300 350 400

Non veg split

Figure 1.7a AVG Bill Value Mc Donald's 67.85 KFC 97.89

72.4% of KFC consumers (including all people accompanying the respondents) are non-vegetarian while only 59.4% of Mc Donalds consumers (including all people accompanying the respondents) are non-vegetarian showing a clear liking of nonvegetarians for KFC food

28

AVG Bill Value KFC M Donald's c INR 0.00 INR 50.00 67.85 INR 100.00 INR 150.00 97.89

Figure 1.7b Mc Donalds focus on low unit price of its products & perceptions as a snack place seems to negatively rub off on average amount spent

(8) AREA DISTRIBUTION OF CONSUMERS FROM RESPECTIVE OUTLET

Mc Donald's-Area Distribution 8% 2% 12% 4% 10%
NORTH W EST SOUTH CENTRAL OTHERS EAST(Ex cluding Noida) NOIDA

28% 64% NOIDA 36%

Figure 1.8a For both stores appeal is limited to primary to <10km of store radius. Indicates we need to focus most of our marketing activities within this area

29

0% 1% 18%

KFC(Noida)-Area Distribution

42% 72% NOIDA 31%

1% 7%
N R O TH W ST E SO TH U C N AL E TR O ES TH R E AST(E xcluding N oida)

N ID O A

Figure 1.8b Appeal primary limited to <10 km radius of store.

6% 2% KFC-Rajouri-Area Distribution

26% 52%

42% RAJOURI 10%

EAST OTHERS SOUTH WEST(Excluding Rajouri)

2%
NORTH CENTRAL RAJOURI

12%

Figure 1.8c Primarily appeal limited to west Delhi. However a significant number of people from south Delhi (having their office in the area) Area Distribution- An overview All these outlets attract most of their present consumers from nearby areas especially so for the Noida outlets of both Mc Donalds and KFC

30

 There are already a large number of fast food outlets in the area including specialty chicken restaurants in Noida Sector 18 that have a huge consumer base. With a large number of restaurants and fast-food joints or food courts coming up in various new malls there is a probability of shifting of consumers to nearer joints. 2. BEHAVIORAL PROFILE OF CONSUMERS (1) NUMBER OF VISITS TO THE OUTLET
M c D o n a ld 's

KFC

1 s t t im e2 -3 t im e s4 -6 t im e s6 + t im e s
11 % 13%

1s t tim e 2-3 tim es 4-6 tim es 6+ tim es

20 % 43 %

59 %

17%

21%

16 %

Figure 2.1a

Figure 2.1b

Sharp difference in translating initial 2-3 visits to most visited fast food outlet. However this needs to be validated over time as KFC is a newer outlet compared to McDonalds in Noida Sharp difference in translating initial 2-3 visits to most visited fast food outlet. However this needs to be validated over time as KFC is a newer outlet compared to McDonalds in Noida

31

(2) Comparison of number of times visit to KFC Noida & Rajouri

C M A S N O N M E O TIM S V IT TO K O P R IO F U BR F E IS FC N ID & R J U I O A AO R 1 % 00 8% 0 6% 0 4% 0 2% 0 0 % 1 tim st e 2 tim s -3 e KFC o -N ida 4 tim s -6 e K -R jou FC a ri 1 0 2 5 11 4 6+ tim es 1 0 1 8 5 17

Figure 2.2 Maximum consumers of KFC Noida have visited the outlet just 2-3 times, where as KFC Rajouri has maximum consumers in 2-3 times and an almost equal number in more than 6 times visit which is in alignment with the fact that KFC Rajouri is an older outlet than Noida. (3) Mc DONALDS CONSUMERS awareness of KFC
L a s t T im e v is ite d K F C (M c D o n a ld 's C o n s u m e r s )

100% 50% 0%

33 29 38

A w a re b u t N o t V is ite d K F C A w a re & V is ite d KFC

11, 46%

0,0%

, 0%

N o t A w a re o f A r e y o u a w a r e o fF C K KFC?

13,54%
W i t h i n t h e l a s t 1 5 d 1a 5y sd a y s t o 1 m o n t h 1 -2 m o n th s M o re th a n 3 m o n th s a g o

Figure 2.3a

Figure 2.3b

Significant number of McDonalds consumers is not aware of KFC (refer to figure 2.3a) while a large number also aware of KFC but never visited (refer to figure 2.3b)

32

(4) Variation of awareness about KFC among McDonalds consumers with their age

V ria no A a n s a o t K Ca o gM a tio f w re e s b u F m n C n u e w th ir A o s m rs ith e

5 0 4 0 3 0 2 0 1 0
Figure 2.4

1 3

Awareness of KFC is highest among 18-25 year old consumers followed by 25-35 years old.

3 5

(5) Fast food eating out frequency

FAST FOOD EATING OUT FREQUENCY

4
6 5 5 1

KFC

0
13

4
83

A EB lo 1 G e w 8
12 12 3 40% 50% 60% 70% 80% 90% 100%

A E1 -2 G 8 5 A a oKC w re f F

A G

60

0%

10%

20%

30%

One or more times a week Less than once a month

Once a fortnight No Response

Once a month

Figure 2.5a The KFC consumer is young and an eat out freak. Comparatively Mc Donalds more popular amongst a mature audience with a comparatively passive eating out behavior

33

(6) NATURE OF GROUP VIS--VIS FREQUENCY OF EATING OUT

M c D O N A L D 's - A L O N E 80%

80%

K FC - ALO NE

0%

20%

0%

0%

20%

0%

O n e o r m o re t i m e s a w e eOk n c e a fo r t n ig h t O n c e a m o n th L e s s th a n o n c e a m o n th

O n e o r m o r e t i m e s aO wn ec e k a f o r t n i g h t O n c e a m o n th L e s s t h a n o n c e a m o n th

Figure 2.6a

Figure 2.6b

When consumers are alone there is no difference in their eating-out frequency for Mc Donalds or KFC consumers.

M c D O N A L D 's - F R IE N D S

5% 6% 45% 44%
O ne o r m o re t im e s a w e e k O nc e a m o n t h O n c e a fo rtn ig h t L es s th a n o n c e a m o n t h

10%

K F C - F R IE N D S 0% 3%

87%
O n e o r m o re t im e s a w e e k O nc e a m onth O n c e a fo rtn ig h t Le s s t h a n o nc e a m o n t h

Figure 2.6c

Figure 2.6d

When with friends 87% of KFC Respondents tend to visit the outlet One or more times a week where as in case of Mc Donalds only 45% of Respondents with friends visit One or more times a week and almost an equal percentage(44%) visit Mc Donalds once in a fortnight.

34

M c D O N A L D 's - F A M IL Y

K F C - F A M IL Y 0% 0% 5%

21%

36%

25%

18%
O n e o r m o re tim e s a w e e k O n c e a m o n th

95%
O n c e a fo rt n igh t L e s s th a n o nc e a m o nth

O n e o r m o re tim e s a w e e kc e a fo r tn ig hO n c e a m o n th e s s th a n o n c e a m o n th On t L

Figure 2.6e Figure 2.6f Mc Donalds consumers coming with family are more varied in their frequency of eating out than KFC consumers 95% of which eat-out One or more times a week at any fast-food outlet.

M c D O N A L D 's - W O R K C O L L E A G U E S

8 %0 %

K FC - W OR K C O LLEAGU ES 0%

23%

69%
O n e o r m o r e t i mO ensc e a efoe rOt nn ig e t a mL oe ns tsh t h a n o n c e a m o n t h a w k ch

100%
O n e o r m o r e t O n ec se aa wf oOr etnnkci ge h at m eo sn st h t h a n o n c e a m o n t h im e L

Figure 2.6g

Figure 2.6h

All Work Colleagues eating out at KFC had an eating-out frequency of One or more times a week while only 69% Mc Donalds consumers have the same frequency Overview: Majority of consumers have a frequency of eating out One or more times a week, in all four categories of Nature of Groups for both Mc Donalds & KFC Mc Donalds consumers have a more varied frequency distribution than KFC consumers who have a higher and concentrated frequency of eating-out hence, A

35

greater opportunity to convert these eat-outs of existing KFC consumers at various fast-food outlets to visits to KFC. 7) REASON FOR EATING OUT
R E A S O N S F O R E A T IN G A T M c D O N A L D ' S

R E A S O N S F O R E A T IN G A T K F C
A n o c c a t io n t o c e2 b ra t e le I w o r k in t h is a r e a & h e n c e d e c i d e d t o 11 c o m e h e re W a n t e d a b r e a k fr o m h o 5 e fo o d m F o r S n a c k ( B r u n c h9) F o r lu n c h

A n o c c a tio n to c e le b r a te 1 1 I w o r k i n t h is a r e a & h e n c e d e c i d e d t o 1 c o m e h e re W a n t e d a b r e a k fr o m h o m e 1 fo o d 0 F o r S n a c k (B ru n c h ) F o r lu n c h

11 11

18

W a n t e d a n e n jo y a b l e o u t i n g w i t h 1 3 i l y fa m W a n t e d t o g e t t o g e t h e r w i t h fr i e n d s I w a s in t h is a r e a & h e n c e d e c i d e d t o e a t 13 h e re

W a n t e d a n e n jo y a b le o u t i n g 6 it h fa m ily w

30

W a n t e d t o g e t t o g e t h e r w it h fr i e n d s I w a s in t h is a r e a & h e n c e d e c id e d t o e a t 5 h e re

44

5 10 15 20 25 30 35

10 20 30 40 50

Figure 2.7a

Figure 2.7a

KFC suggests a more planned outing compared to McDonalds which scores highly on quick fix too Overview: Wanted to get together with friends is the single most important reason for both, more so in case of KFC(44%) than Mc Donalds(28%). The second most important reason for Mc Donalds consumers (13%) is I was in this area & hence decided to come here and Wanted an enjoyable outing with family, while for KFC consumers (18%) it was lunch.

36

(8) REASON FOR EATING OUT VIS--VIS THE NATURE OF GROUP Mc Donalds

R SN FRAN OT I H EPCONTRO E OS O ET G UW R ET F A E F A I T S U G U OTE EP NET OMDNL' R P F HR OD S F c OA s O S N D

A oc to t n ca no i cl b t e r e ea

1 1

Iwr i t i a a o nh r k s e & e c dc e h ne ei d d t c m hr oo e e e

8
Wt d b a aear k n e fo h m f o r m o eod

Fr o Sak r nh nc( uc ) B

7 4

2
Frl nh o uc

1 6 2

Wt d n aea n e j yb otn n ale u g o i w fm it a i h ly

1 2 1

W t do e a e t gt n t gt e w oe r i h h t fi ns red

2 1 2 6 1 1 6 5 1
0 5
AO LN E

Iwsi t is r a a nh a e & e c dc e hne eidd t e thr oa e e

1 0
FI NS R D E

1 5
FM Y AI L

2 0
CL EU O GS L E

2 5

3 0

Figure 2.8a For Friends & Family the experience of getting together and enjoying while eating out is the major reason for consumers to visit Mc Donalds For Work Colleagues & when Alone reason shifts to food for as either a break from home food or lunch

37

 Hence depending upon the nature of group the reason for eating out changes and two important constituents that emerge are the food itself and secondly the experience of eating out at the outlet KFC
RAOS O ET G U W H EPC O NT R O T E ES N F R AI OT I RSET F AUE F H N T GOP F H RSODNS F F RU O T E EP NET O K C

A o c to t n c a no i c l ba e rt e e Iw r i t i ae & okn h r a s h ne ei e t e c d c do d c mh r o e ee W t d bek o a e a r a fr m n h mfo d oe o

2 3 6 2 4 1 3 4 2 4 3 3

FrSa kB n h o nc( r c ) u

Frl nh o uc

W t d n n yb a e a ej al n o e o tn wh m u g i fa iy i t l

6 1 1 2 3 0 AOE LN 5 1 0 F I NS R D E 1 5 2 0 F MY AI L 2 5 3 0 C LE US OL GE 3 5 4 0 4 5

W t do e a e t gt n t gt e wh i ns o e r i fre d h t Iw si t i ae & a nh r a s hn e e i e t e t ec dc d o a d hr ee

2 4 0

Figure 2.8b The same trend is observed among consumers visiting KFC emphasizing the universality of consumers need vis--vis the nature of group they eating out with. For consumers who are alone or with work colleagues, its the food and hence its attributes like taste, filling, and nutrition or its affordability For families and friends the experience of eating at the outlet like the ambience, comfort, enjoyment, and variety along with value for money assumes equal importance along with the good food.

38

(9) OTHER FAST-FOOD OUTLETS CONSUMERS VISIT

O H RF S -F O O T E SM D N L 'S T E A T O D U L T c O AD C N U E SV IT O S M R IS

3% 2

2% 7

3 % 3 % 3 % 8 % 4 % 4 % T s OI d a te f n ia Nu s ir la Rs r n e tua ts 4 % 5 % Kr s aim Dm o o in s OH R TES 7 %

P z Ht iz a u KC F C fJ in a o ts

H ld a a ir m O t ik

Figure 2.9a Pizza Hut is the often named Other fast-food outlet by Mc Donalds consumers, with 47 Responses i.e. 27% of all named outlets Pizza Hut is followed by Taste Of India(8%) and Karims(7%) KFC constitutes only 4% of all named outlets

39

O H RF S F O O T E SK CC N U E S T E AT O D UL T F O S M R V IT IS 2 % 2 % 5 % 6 % 8 % 1 0% 2 6% 2 % 8 % 3 1%

MD c L ca o l T steo In ia a f d

P izzaH t u R sta ra ts e u n O e th rs

C fJ in a o ts N la iru s

Dm o o in s Sb a uwy

Figure 2.8b Mc Donalds is the often named Other fast-food outlet by KFC consumers, with 43 Responses i.e. 31% of all named outlets This is followed by Pizza Hut(26%) followed by Caf Joints(10%) This indicates that there is a high inclination of KFC consumers to also visit McDonalds while very less inclination of Mc Donalds consumers to visit KFC

40

CONCLUSION:
Key Target Segment: The young adults (18-25 years) and significant number in 25-35 year old, either students or working executives who come mostly males who are nonvegetarian and reside in neighboring areas of the respective outlets and have visited the outlets before too. Comparatively McDonalds has a significant consumer base that comprises of vegetarians and families. The most important reason for frequently the outlets more than once in a week is catching up with friends and the average spending per consumer at KFC is Rs 98/- comparatively much higher than McDonalds Rs 68/- There is a high inclination of KFC consumers to also visit Mc Donalds while very less inclination of Mc Donalds consumers to visit KFC. Product Scope: Fast food/ New/ Different/American/ Alienness of taste Use/User: Enjoyable break/ togetherness/ Young adults Brand as a person: Spirited/ Cool/ Young Brand as a symbol: Col Sanders with KFC logo or Red & Blue colours/ Only Chicken Brand as organization: American MNC Main Competitor: McDonalds

41

RECOMMENDATIONS:
In the established markets like Australia and the United Kingdom, people have good idea what a KFC Chicken is. Folks in India need an introduction to the brand.

Build heritage story into brand communication as well as overall product experience Extend KFC experience beyond just chicken Vegetarian offering to be communicated on equal footing with chicken rather than as also runs.

Positioning should revolve around providing great tasting food, very close to the international positioning of Finger Licking Good.

Ambience and value of money to be emphasized

Phase II
(1) CHANA CRUNCH SNACKER VS CHICKEN CRUNCH SNACKER Sample Covered- Outlet wise Chana Snacker 21 29 50 Crunch Chicken Snacker 25 25 50 Crunch

Noida Rajouri Total Sample Covered

42

(1.1)GENDER
C HANA C RUNC H SNAC K E R
F e m a le 32%

C H IC K E N C R U N C H S N A C K E R
F e m a le 26%

M a le 68%

M a le 74%

Figure 1.1a

Figure 1.1b

(1.2) AGE
10% 14%
20%

C h ic k e n C r u n c h S n a c k e r 16%
14%

10%

C ha na C run c h S n a c k e r

14%

46%
14%

42%

1 8 o r b e lo w1 9 - 2 4 2 5 - 2 9 3 0 - 3 9 4 0 a n d a b o v e

1 8 o r b e lo 1 9 - 2 4 2 5 - 2 9 3 0 - 3 9 4 0 a n d a b o v e w

Figure 1.2a

Figure 1.2b

43

(1.3) SEC
C hana Crunch Snacker
SEC A1 SEC A2 SEC B1 SEC B2 78%

0% 22%

6% 0%

C h ic k e n C r u n c h S n a c k e r
SEC A1

32% 62%

SEC A2 SEC B1 SEC B2

Figure 1.3a

Figure 1.3b

A significantly higher percentage of SEC A2 & B1 is coming to eat Chicken Crunch Snacker which is not seen in Chana Crunch Snacker (1.4) NUMBER OF PEOPLE IN THE GROUP
Chana C run ch Snacker
50 40 30 20 10 0
One Tw o T h re e Fo u r F ive M o r e th a n 5

C h ic k e n C r u n c h S n a c k e r
60 50 40 30 20 10 0
One Tw o T h re e F o u r F ive Mo re th a n 5

42 22 14 8 6 8

50

18

14

Figure 1.4a Chana Snacker 2.84

Figure 1.4b Crunch Chicken Snacker 2.58 Crunch

Average Group Size

Could indicate that the Chana Crunch Snacker is driven to KFC mostly because of his group & not choice.

44

(1.5) EDUCATION
C ha na C runch S na ck er

14% 14%

C h ic k e n C r u n c h S n a c k e r

34%

28%

16%

18%

38%
S c h o o l u p t o 1 2 th S o m e C o lle g e b u t n o t g r a d u a t e G r a d u a te / P G G e n e r a G r a d u a t e /P G P r o fe s s io n a l l

38%
S c h o o l u p to 1 2 th S o m e C o lle g e b u t n o t g r a d u a t e G r a d u a t e / P G G e n e r aG r a d u a t e / P G P r o f e s s io n a l l

Figure 1.5a (1.6) OCCUPATION

C ha na C runch S na ck er

Figure 1.5b

C h ic k e n C r u n c h S n a c k e r

6 % 4 %2 % 20% 42%

14%

2 % 6 %0 %

50% 26%
S tu d e n t B u s in e s s m a n H o u s e W ife E x e c u tiv e /O ffic e r S e lf E m p lo y e d P r o fe s s io n a l O th e r s

28%
S tu d e n t B u s in e s s m a n H o u s e W ife E x e c u tiv e /O ffic e r S e lf E m p lo y e d P r o fe s s io n a l O th e r s

Figure 1.6a

Figure 1.6b

45

(1.7) DAY PART (%)

C H AN A C R U N C H S N AC K E R
100% 90% 80% 70%
(1.8) GROUP TYPE
8% 8%

10

16

60% 5 0 %4 0 % 4 10 % % 2 30% 20%

16% 6% 20% 6%

C ha na C ru nc h S n a c k e r

52
C h ic k e n C r u n c h S n a c k e r

32%

52%

F r ie n d sW o r k C o lle a g F e s ilyC o u p leA lo n e uam

F r ie n d sW o r k C o lle a gF uaems ilyC o u p leA lo n e

20
Figure 1.8b

Figure 1.8a

10% 0% 1 1 a m-1 p m
46

12
1 p m-3 p m

(1.9) NUMBER OF VISITS EARLIER

C h a na C ru nc h S na c k e r

C h ic k e n C r u n c h S n a c k e r

38%

32%
4 4%
3 - 4 tim es 4 + times

18%
1 - 2 times

28%
1 - 2 tim e s

40%
3 - 4 tim e s 4 + tim e s

Figure 1.9a

Figure 1.9b

(1.10) What else has been ordered along with the Snacker
WITH CHANA CRUNCH SNACKER
Any Other Coleslaw Ice cream/ sundae Bread Salad Snacker Burger Thali French fries Soft Drink 0% 20% 40% 60%

W IT H C H IC K E N C R U N C H S N A C K E R
A n y O th e r 1 8 % C o le s la 2 % w

26% 2% 14% 0% 0% 2% 2% 12% 58% 78%

80% 100%

Ic e c r e a m / s u n d a1e8 % B r e a d0 % S a la d 4 % S n a c k e r% 0 B u rg e r 8 % T h a li F r e n c h fr i e s S o ft D ri n k

14% 54% 84%

0 % 2 0 % 4 0 % 6 0 % 8 0 %1 0 0 %

47

Figure 1.10a (1.11) REASON FOR VISITING KFC

R A O F RV IT GK C E S N O IS IN F 6 7 5
(C a aC u chS a hn r n n cker )

Figure 1.10b

1 1 1 1 8

1 0

1 2

A S fter hopping C atching up w friends ith Indulge/ T reat m lf/ourselves to great food yse B reakfromhom food e

W L ork unch Q km (on the go) uic eal C brating specia occasions/e ele l vents W a specific type of food ant

Figure 1.11a
R A O F RVS I GK C E S N O I IT N F
6 3 1 6 1 6 1 2 3 3 0 2 4 6 8 1 0 1 2 1 4 1 6 1 8
(C ickenC n Sn ck h ru ch a er)

A S fter hopping C atching u w friends p ith Indulge/ T m reat yself/ourselves to great food B reakfrom hom food e

W L nch ork u Q uickm (on the go) eal C elebratingspecial occasions/events W a specific type offood ant

Figure 1.11b

48

(1.12) Which main dish was ordered during last visit? Table 1.12a Chana Snacker 7 8 2 8 5 4 1 5 2 0 1 6 1 0 Crunch Chicken Snacker 0 0 0 1 1 5 8 13 5 6 2 5 3 1 Crunch

Chana Crunch Snacker Veg Thali Veg Fingers Veggie Feast Paneer Tikka Wrap n Roll Chicken Crunch Snacker Chicken Thali Hot & Crispy Chicken Original Recipe Chicken Crispy Chicken Strips Chicken Tikka Wrap n Roll Zinger burger Colonel burger Bucket Of Chicken

(1.13) Which dish would you eat if their was no KFC

C H A N A C R U N C H C O N S U M ER 's A LT E R N A T E D IS H
CHICKEN CRUNCH CONS UMER's ALTERNATE DIS H

6% 30%

6% 6%

4% 12%

6%

28%

8%

4% 28%

14%
H o me F o o d M c V eggie B urge r B urge r

38%
O the rs M c A lo o Tik k i B urge r C hick en M c G rill

10%

Pizza Hom e Food Chicken Mc Grill Fillet-O -Fish

Chicken Veg Burger Chicken Burger O thers

Figure 1.13a

Figure 1.13b

Overall 56% people choose burger (Figure 1.13a) and Overall only 38% people choose a burger (Figure 1.13b)

49

(1.14) WHERE WOULD YOU GO IN CASE THERE WAS NO KFC?

A L T E R N A T E E A T IN G J O IN T (C h a n a C r u n c h C o n s u m e r s )
A L T E R N A T E E A T IN G J O IN T
(C h ic k e n C ru n c h S n a c k e r)

18% 6% 8% 6% 4% 58%

M c D o n a ld 's CCD P izz a H u t T a s t e O f In d ia Sa g ar R a tn a O t h e rs

4% 10%

4% 16%
M c D o n a ld 's K a rim s Home P izza H u t

12% 4% 50%

Y o C h in a Dab bas O t h e rs

Figure 1.14a

Figure 1.14b

(1.14) Vegetarians as a percentage of total number of consumers Table 1.14a Chana Crunch Snacker Chicken Crunch Snacker 32.64% 8.53%

(1.15) EXPECTATION FROM SNACKER

Chana Crunch Snacker
C hic ke n C runc h S na c ke r
D isco ver a new taste

0% 0%

4%

Discover a new taste Pick myself up (Positive energy/uplift mood) Share with others Quick fix meal

0% 0%

27%

31%

43% 53% 0% 0%

P ick myse lf up (P o sitive energy/uplift mo o d ) S hare w ith o thers Q uick fix m eal

Saving time (by not cooking) Reward myself/ others Specific food taste

34%

0% 8%

S aving time (b y no t co o king) R ew a rd myse lf/ others S p ecific fo o d taste

Figure 1.15a
50

Figure 1.15b

Quick fix meal (on the go) is the most important reason for Chana Crunch Snacker (Figure 1.15a) and Specific food taste is an important reason for chicken crunch snacker which reflects its liking (Figure 1.15b) (1.16) Why is this dish apt for this occasion?
C hic k e n C runc h S na c k e r
Chana Crunch Snacker

Ot h e rs

9 2 12 2 4 4 9 8
2 4 6 8 10 12

0 W a n t e d t o h a v e v e g e t a ria n to d a y
N o c h o ic e in v e g e t a ria 0 n O n ly b e c a u s e o f c h ic ke n Lig h t Va lu e fo r mo n e y New tas te T rie d b e fo re & like d W a n te d t o e xp e rime n t Go o d T a s t e

Others W anted to h ave vegetarian today No choice in veg etarian Only becaus e of chicken Light Value for money New tas te Tried before & liked W anted to experiment Good Tas te 0 1 2 3 4 5

9 6 6 0 7 2 2 5 5
6 7 8

8
9

Figure 1.16a

Figure 1.16b

Light & Wanted to experiment are two most important reasons for eating a snacker.

51

(2) BUCKET OF CHICKEN

(2.1) Sample Covered- Outlet wise Table 2.1 Noida Rajouri Total Sample Covered 22 9 31

(2.2) Gender
GENDER
Female 32%

Male 68%

Figure 2.2 (2.3) Age

52

A E(% G ) 1% 3 1% 6 1% 9
18 or bel ow 1 -24 9 2 9 5-2

1% 6

3% 6
3 9 0-3 40 an abo e d v

Figure 2.3 (2.4) SEC

0% 32% 0% SEC (% )
SEC A1 SEC A2

68%

SEC B1 SEC B2

Figure 2.4

(2.5) EDUCATION
E UAI N D C TO 1% 3 3% 8 2% 3 2% 6
School upto 12th G raduate/PG G eneral Som College but not graduate e G raduate/PG Professional

Figure 2.5

53

(2.6) OCCUPATION
OC PT N C UAI O 1% 6 0 % 3 % 4% 2

3% 9
S dn tu e t B si e a u n ssm n Hu W o se i fe E e u v /O c r x c ti e ffi e S l E p y P fes n l ef mlo ed ro sio a Oe th rs

Figure 2.6 Majority of BOC consumers are Students followed by Executives/Officers

(2.7) GROUP SIZE

N UM B E R O F P E O P LE IN T HE G R O UP
50% 40% 30% 20% 10% 0%

39%

29% 13% 10%

M o re th an 5

10% 0%
On e Two T h ree Fo u r

Fiv e

Figure 2.7 Average Group Size 3.87

54

(2.8) Generally Bucket of Chicken is ordered when the group size is larger
G O PT P R U YE 3 0 % % 2% 9 4% 9

1% 9
Friends Work Colleagues Family Couple Alone

Figure 2.8 Almost half of COB consumers are groups of FRIENDS followed by families.

(2.9) Number of times visited earlier

Nme O TmsV i e E r e u b r f i e i t d ali r s 1% 9 4% 9 3% 2
1-2 tim es 3-4 tim es 4+ tim es

Figure 2.9 Almost half of BOC Consumers have visited the outlet more than 4 times

55

(2.10) DAY PART (%)

100% 80% 60%

Figure 2.10

18

24

(2.11) What else has been ordered along with the main dish?

40% 20% 0%

18
62 % 3 %

V g ieFe st eg a

H t&C isp C ic e o r y h kn

11am-1le w pm C pm o sla 3 pm-7

Ic c e msu d e e ra / na
Figure 2.11

1 pm-3 1 % pm-11p 07 1% 6

Be d ra S la a d

0 % 6 % 0 %

Soft Drink & French Fries are the most ordered along with the main dish

56

S akr nce

(2.12) REASONS FOR VISITING KFC

R A OS O V I I G F E S N F R I T KC S N

W ta pcfctp of o a s eii ye f od n B a fo hmf o r kr mo eod e Cl b tn s ei loc soseet e r i g pca c ai n/ vn ea s

(2.13) MAIN DISH ORDERED ON LAST VISIT

I dl eTetme/ u e e t g a nu / r a y l or l so r t g sf sv e fo od Qi k el( nh g) u m o te o c a Wk uc o L nh r AeS op g 10% f 6% pi tr h n

C cD Hi R E a g p t Ds M It hnS whfied E O L S VS ANi Iu Or nR D N A T I

3%

0 %

5 13%

Figure 2.13

6 53%

3%

Chicken Crunch Snacker Hot & Crispy Chicken

57

Chicke Origina

(2.14) WHAT WOULD YOU EAT IN CASE THERE WAS NO KFC?

A T R A I EC OC O DS L E N TV H I E F I H
1% 3 1% 3
Figure 2.14 Chicken Burger & Chicken Mc Grill together also account for 26% which equal to the number of people opting for any other Chicken Dish

1% 0

3 %

(2.15) WHERE WOULD YOU EAT IN CASE THERE WAS NO KFC? 1% 0

A T R A EE TN J I T L E N T A I G ON

6 %
1% 0

1% 3 6 %

6 %

6 %

2% 6
M D n l 's c o ad K ri s am Pz aHt iz u Nrua i ls

Chicken Mc Grill Chicken Sandwich

3% 3
Hm oe Y Ci a o hn Oe th rs

Chicken Burger Manchurian Hom Food e

Figure 2.15

58

(2.16) Which of the following best describes what you were looking for in the Bucket Of Chicken

1% 8 9 % 4% 5

9 % 0 % 1% 8 0 %
Pick m self u (Po e en y p m o ) y p sitiv erg /u lift o d Q ick fix m u eal R ard m self/ o ers ew y th

D v a n taste isco er ew S are w o ers h ith th S in tim (b n t co k g av g e y o o in ) S ecific fo d taste p o

Figure 2.16 (2.17) Why is this dish apt for this occasion

BUCKET IS APT FOR T HIS O

6 9
Figure 2.17

59

(3) ZINGER BURGER

(3.1) Sample Covered- Outlet wise Noida Rajouri Total Sample Covered 35 15 50

(3.2) GENDER
GENDER
Female 28%

Male 72%

Figure 3.2

60

(3.3) AGE DISTRIBUTION

AE G 8 % 1% 2 1% 6

2% 6

3% 8
1 -2 9 4 2 -2 5 9 3 -3 0 9 4 an ab v 0 d oe

1 o bl w 8 r eo

Figure 3.3 The age group of 19-24 years comprises 38% of Zinger Burger Consumers followed by 25-29 years of age group (26%) (3.4) SEC
SC E 2 % 0 % 3% 4

6% 4

SEC A1

SEC A2

SEC B1

SEC B2

Figure 3.4 Insignificant penetration in SEC B1 & B2 for Zinger Burger.

61

(3.5) GROUP SIZE

NME O POL I T E R U U BR F E PEN H G OP
7 0 6 0 5 0 4 0 3 0 2 0 1 0 0 Oe n To w Tr e h e Fu or Fv ie Mr t a oe hn 5

6 0

1 6 8 8 2 6

Figure 3.5 60% of Zinger Consumers come in groups of Twos (3.6) EDUCATION
EDU TIO CA N 3% 0 1% 4 1% 2 4% 4

School upto 12th G raduate/PGG eneral

Som College but not graduate e G raduate/PG Professional

Figure 3.6

62

(3.7) OCCUPATION
OC PT N C U A IO
14% 0% 8% 0% 40%

38% Student Businessm an House Wife Executive/Officer Self Em ployed Professional Others

Figure 3.7 Majority of Zinger consumers are Students followed by Executives/Officers similar to Bucket Consumers (3.8) GROUP TYPE
GROUP TYPE
2% 20% 10% 40%
Friends Work Colleagues Family Couple

28%

Alone

Figure 3.8

63

(3.9) DAY PART (%)

100% 80% 60% 40% 20% 0%

10

48

34 8 1 pm-3 pm 7 pm-11pm

11am-1 pm 3 pm-7 pm

Figure 3.9 Zinger has highest snack presence and also a significant number of customers at lunch (3.10) NUMBER OF TIMES VISITED EARLIER
N M ERO TIM V ITEDEA LIER U B F ES IS R
42%

34% 24%

1-2 tim es

3-4 tim es

4+ tim es

Figure 3.10 42% of Zinger Burger Consumers are moderate or heavy consumers who have visited the outlet more than 4 times

64

(3.11) What else has been ordered along with the main dish?

WITH ZINGER BURGE

Crispy Chick St en rips Original Recipe Chick en Hot&Crispy Chick en Coleslaw

6% 10% 30%

2% Soft Drink & French Fries are again the most obvious Ordered with Zinger (main dish) Ice cream sundae / 2% (3.12) REASON FOR VISITING KFC Bread 2%
Salad Snack er

REASONS FOR VISITI Burger 0% 6 % 1% 8

Thali

0% 2% 0%

1% 0

French f ries Sof Drink t

Figure 3.12

2 %

65

(3.13) MAIN DISH ORDERED ON LAST VISIT

MAIN DISH ORDERED

4% 8%
product too (3.14) What would you eat if there was no KFC?
A LTERN TE CH ICE D H A O IS
28% 14%

2% 6%

Zinger Burger Consumers seem to be very loyal to the product & obviously like the

12% 6

60%
Pizza

Chicken Mc Grill Chicken Burger Fillet-O-Fish

4% 6% 12% 10% 4%

22%

Chicken Sandwich Home Food Others

Figure 3.14 For 36% Zinger burger consumer Burger itself is the alternate choice in case there was no KFC

66

(3.15) Where would you go if there was no KFC?

A LTERN ATE EATIN J O T G IN
20% 4% 6% 6% 44%
Mc Donald's Pizza Hut Home Yo China Karims Nirulas Subway

6%

4%

10%

Others

(3.16) Which of the following best describes what you were looking for in the Zinger Burger

E P C A IO F O Z G X E T T N R M IN

2% 0
Figure 3.16 Zinger Burger is attracting people who want to experiment and discover a new taste. IT REFLECTS THE FACT THAT PEOPLE ARE GETTING BORED OF THE USUAL (Read Mc Donalds)

1% 0

0 %

2% 0

67

0 %

1% 0

(3.17) WHY IS THIS DISH APT FOR THIS OCCASION

ZN E B R E I A TF RT I O C S I G R U G RS P O H C A S
R c me d db f n s e o mn e y rie d Fillin g
(4) HOT & CRISPY VS ORIGINAL RECIPE

6 % 8 % 2 % 6 % 2 %
Table 4.1 Hot & Crispy 27 23 50

S ic py O lyb c u eo c ic e n ea s f h k n Lh ig t

(4.1) Sample Covered- Outlet wise

V lu f r mn y a eo o e
Noida Rajouri Total Sample Covered

4 %

C is y rp

6 %

Original Recipe 29 21 50

N wt se ife n t se e a t /Df re t a t T db f r &lik d rie eoe e Wne t e p rimn a t do x e e t G o T se o d at

1% 0 8 %

1
0 %
68

5 %

1% 0

1% 5

(4.2) GENDER
O R IG IN A L R E C IP E
F e m a le 12%

F e m a le 22%

H O T & C R IS P Y

M a le 88%

M a le 78%

Figure 4.2a

Figure 4.2b

(4.3) AGE
H O T & C R IS P Y 24% 8% 16%

O R IG IN A L R E C IP E 12% 20% 10%

28%

24%

22%

36%

18 o r below 1 9- 24 25- 29 30 - 39 40 and ab ove

1 8 o r b e lo w 1 9 - 2 4 2 5 - 2 9 3 0 - 3 9 4 0 a nd a b o ve

Figure 4.3a

Figure 4.3b

36% OR Consumers are in 19-24 age group than 24% H&C Consumers

69

(4.4) SEC
H O T & C R IS P Y
16% 2% 2%
6% 4%

ORIGINAL RECIPE

34%

56%

80% SEC A1 SEC A 2 SEC B1 SEC B2

SEC A1 SEC A2 SEC B1 SEC B2

Figure 4.4a

Figure 4.4b

(4.5) NUMBER OF PEOPLE IN A GROUP (%)

H O T & C R IS PY
60 50 40 30 20 10 0

54

18

16 6 4 2

70 60 50 40 30 20 10 0

O R IG IN A L R E C I P E 62

16

16 0 0
F iv e

6
M o re tha n 5

O ne

T w o T hre e F our

F iv e M o r e th a n 5

O ne

T w o T hre e F ou r

Figure 4.5a

Figure 4.5b

70

(4.6) EDUCATION
H O T & C R IS P Y
28% 10%

O R IG IN A L R E C IP E
30% 14% 16%

12% 50%
S c h o o l u p to 1 2 th S o m e C o lle g e b u t n o t g r a d u a te
S c h o o l u p t o 1 2 th

40%
S o m e C o lle g e b u t n o t g r a d u a t e

G r a d u a t e /P G G e n e r a l G r a d u a te /P G P r o f e s s io n a l

G r a d u a te /P G G e n e r a lG r a d u a t e / P G P r o f e s s io n a l

Figure 4.6a

Figure 4.6b

(4.7) OCCUPATION
H O T & C R IS P Y
6% 8% 0% 28%

O R IG IN A L R E C IP E
6% 6% 0% 16%

28% 30% S tud e nt B usine ssm a n H o us e W ife E xe c utive /O ffic e r S e lf E m p lo ye d P ro fe ss io na l O the rs

36%

36% Exe cutive/O fficer S elf Emplo ye d P ro fessio na l O thers

S tud ent B usinessma n H o use W ife

Figure 4.7a

Figure 4.7b

71

(4.8) GROUP TYPE

H O T & C R IS P Y
O R IG IN A L R E C IP E

14% 10%

24%

24%

0%

14%

30%

22%

30%

32%

F rie nd s W o rk C o llea guesF a mily C o up le A lo ne

F riends W ork C olle ague s Fa m ily C ouple A lone

Figure 4.8a Table 4.8c Average Group Size

Figure 4.8b

Hot & Crispy 2.3

Original Recipe 2.28

(4.9) DAY PART (%)

HOT & CRISPY
100% 80% 60% 40% 20% 0% 11am-1 pm 3 pm-7 pm 30 56 4

O IG A R IPE R IN L EC
100% 80% 60% 40% 20% 0%
18

14

66

10
1 pm-3 pm 7 pm-11pm

2
1 pm-3 pm 7 pm-11pm

11am-1 pm 3 pm-7 pm

Figure 4.9a

Figure 4.9b

Both have significant snack presence significantly more so in case of OR. H&C is more customers during lunch while OR has more customers at dinner time

72

(4.10) NUMBER OF VISITS TO THE OUTLET EARLIER

HO T & C R IS P Y
28 %
50%

O R IG IN AL R E C IP E
22%

5 2%
28%

2 0% 1-2 times 3-4 times 4+ times

1-2 times 3-4 times 4+ times

Figure 4.10a

Figure 4.10b

New Customers of KFC are attracted by H&C later they try OR and eventually settle according to their taste & liking, higher percentage settling for H&C (52%) than OR (50%) (4.11) What else has been ordered along with the main dish?

...With ORIGINAL RECIPE

Chicken Tikka W rap n Roll Crispy Chicken Strips Original Recipe Veggie Feast Coleslaw Ice cream/ sundae 73 Bread

4% 4% 6% 2% 6% 20% 2%

Pan

(4.12) REASONS FOR VISITING KFC

H O T & C R IS P Y 7 2 3 5 8 9 6
4 6 8 10
0
A fter Sh o p p in g Ca tch in g u p w it h frien d s Bre ak fro m h o me foo d

R E AS O N F O R VIS IT IN G KF C (O R )

6 2 4 10 6 9 7 6

10

A ft e r S h o p p in g C a t c h in g u p w it h frie n d s B r e a k fro m h o m e fo o d

W o rk L u n c h Q u ic k m e a l (o n t h e g o ) W a n t a s p e c if ic t y p e o f fo o d

6
W o rk Lu n c h

10

Qu ic k me al (o n t h e g o ) W an t a s p ec ific ty p e o f fo o d

In d u lg e / T re a t m y s e lf/ o u rs e lv e sC teolegbreaat tinf g os d e c ia l o c c a s io n s / e v e n t s r o p

In d u lg e/ T rea t my s e lf/o u rs elv es t o g re at Ce o d ra tin g s p e cia l o cc as io n s /ev e n ts fo le b

Figure 4.12a (4.13) Which main dish was ordered during last visit?
M A IN D IS H O R D E R E D O N L A S T V IS IT (H & C )

Figure 4.12b

M A IN D IS H O R D E R E D O N L A S T V IS IT (O R )

6% 20%

6%

4% 2%

2%

13% 20%
42%

2%

4%

4%

6%

12%

34% 23% V e g gie F e a s t C h ic k e n C ru n c h S na c k e r C hic k e n T h a li H o t & C ris p y C h ic k e n O rig ina l R e c ip e C h ic k e n C risp y C h ic k e n S trip s Z in ge r b u r ge r

C ha na C runc h S na c ke r C hic ke n C runc h S na c ke r O r igina l R e c ipe C hic ke n Z inge r burge r B uc ke t O f C hic ke n

P a ne e r T ikka W ra p n R oll H ot & C ris py C hic ke n C ris py C hic ke n S trips C olone l burge r

Figure 4.13a

Figure 4.13b

74

(4.14) REASON FOR VISITING KFC

H O T & C R IS P Y 7 2 3 5 8 9 6
4 6 8 10
0 2 4 6
W o rk L u n c h Q u ic k m e a l (o n th e g o ) W a n t a s p e c ific t y p e o f fo o d

O R IG IN A L R E C IP E

6 2 4 10 9 6

10
6

A ft e r S h o p p in g C a t c h in g u p w it h f rie n d s B re a k fr o m h o m e f o o d

W o rk L u n c h Q u ic k m e a l ( o n t h e g o ) W a n t a s p e c ific t y p e o f fo o d

10

A fte r S h o p p in g C a tc h in g u p w ith frie n d s B re a k fro m h o m e fo o d

I n d u lg e / T re a t m y s e lf / o u rs e lv eC etle bg ra taint g sopde c ia l o c c a s io n s / e v e n t s s o re fo

In d u lg e / T re a t m y s e lf/ o u rs e lv e s to gC e a t bfo otin g s p e c ia l o c c a s io n s /e v e n ts re le ra d

Figure 4.14a

Figure 4.14b

(4.15) Which of the following best describes what you are looking for?
E X P E C T A T IO N F R O M T H E H O T & C R IS P Y
0% 0%
36%

E X P E C T A T IO N F R O M O R I G I N A L R E C I P E

14% 43%

29%

29% 14%
D is c o v e r a n e w ta s te S h a r e w it h o th e r s S p e c if ic f o o d t a s t e

0%

7%

7%

14%

7% 0%

P ic k m y s e lf u p ( P o s itiv e e n e r g y /u p lif t m o o d ) Q u ic k f ix m e a l

D is c o v e r a n e w t a s t e S h a re w it h o t h e r s S a v in g t im e (b y n o t c o o k in g ) S p e c if ic fo o d t a s t e

P ic k m y s e lf u p (P o s it iv e e n e rg y / u p lift m o o d ) Q u ic k f ix m e a l R e w a r d m y s e lf/ o t h e r s

S a v in g tim e ( b y n o t c o o k in g )R e w a r d m y s e lf / o t h e r s

Figure 4.15a

Figure 4.15b

75

(4.16) What would you have eaten on this occasion if there was no KFC?
A L T E R N A T IV E C H O IC E O F D IS H (H & C )
C h ic k e n M c G r ill 24% 18% 12% 4% 2% 6% 4% C h ic k e n B u r g e r M c V e g g ie B urger F ille t- O - F is h P iz z a C h ic k e n B u t t e r C h ic k e n C h ic k e n P la tte r S a n d w ic h H om e Food O th e r s
6% 2% 10% 4% 6% 4% 8% 4% 20% 20% 16%

A L T E R N A T E C H O IC E D IS H (O R )
C h ic k e n M c G r ill C h ic k e n B u rg e r M c V e g g ie B ur g e r F ille t- O - F is h P izza C h ic k e n B utte r C h ic k e n C h ic k e n P la tte r S a n d w ic h Home Food O th e rs

14% 6% 4% 6%

Figure 4.16a

Figure 4.16b

H&C: Burgers together comprise 54% as the alternate choice while a chicken dish is only 14% OR: Burgers together comprise 56% as the alternate choice while a chicken dish is only 20%

(4.17) Where would you have eaten on this occasion if there was no KFC?
A L T E R N A T E E A T IN G J O IN T (H & C )
M c D o na ld 's 34% P izza H ut 40% H o me Y o C hina 4% 2% 0% 12% 8% D abbas S ub w a y O the rs 30% 52% 4% 6% 4% 4% 0%

A L T E R N A T IV E E A T IN G J O IN T (O R )
Mc D o na ld 's P izza H ut H ome Y o C hina D ab b a s S ub w a y O the rs

Figure 4.17a

Figure 4.17b

Mc Donalds is the clear alternate choice for majority of KFC Consumers

76

(4.18) Vegetarians as a percentage of total number of consumers (who accompanied H&C or OR consumers) Table 4.18 Hot & Crispy Original Recipe (4.19) Why is this Dish apt for this occasion? 3.45% 6.14%

H&C Is Apt For This Occasio

Others 7 Tender 0 Filling 0 Juicy 0 2 Spicy Only because of 2 3 Light Value for money 0 7 Crispy New taste 2 Tried before Oliked p F rT is O a nB u &RI A t o h cc sio eca se.... s W anted to 5 7 Good Taste
Oe th rs Tn e edr F g illin J ic u y S ic pFigure y O ly b c u eo c ic e n eas f h kn L h ig t V lu fo mn y a e r oe C 77 ris y p N w ta te e s

4
3 3 3 3

0 4.19b 0 0

5 6

(5) FINDING OF PHASE II- SNAPSHOT:

5.1 CHANA CRUNCH SNACKER & CHICKEN CRUNCH SNACKER CHANA CRUNCH SNACKER 19-24 A1 2.84 Grad/PG General Student/Executive, officer 3p.m. to 7p.m Friends/Family 1-2 times Soft Drink, French Fries Quick meal (on the go), Catching up with friends Veg Thali & Veggie Feast Burger (Aloo Tikki Burger) McDonalds Quick meal, Discover a new taste Wanted to experiment, Light CHICKEN CRUNCH SNACKER 19-24 A1,A2 2.58 Grad/PG General Student/Executive, officer 3p.m. to 7p.m Friends/Family 1-2 times Soft Drink, French Fries Quick meal (on the go), Catching up with friends H&C Burger McDonalds Quick meal, Discover a new taste Light, Wanted to experiment

AGE SEC Average Group Size Education Occupation Day Part Group Type Number of visits What else has been ordered along with the main dish Reason Main Dish ordered last time Alternate dish Alternate eating-joint Expectations for the dish Why is this apt apt for this occasion Product:

Light, New & Unique taste , Affordable

Key target customers: 19-24 year students and executives belonging to SEC A1 and also SEC A2 in case of Chicken Crunch Snacker. Day Part: Snack time (3p.m. 7p.m.) Need State: (a) Quick Meal on the go (b) A new exciting taste at affordable price (c) Convenient place to interact with friends & de-stress

78

Occasion: Catching up with friends over a snack or a Quick Meal with family and friends Positioning: Fast-food, exciting, uniqueness, young, lightness, Value for money, Enjoyable break/ togetherness of friends & family However its target segment is quiet limited to young adults, mainly students and vegetarian consumers accompanying a group which is a matter of concern. Recommendation: (1) Adding a few more variations in snacker especially Chana Crunch on the lines of Aloo McTikki Burger & McVeggie Burger of McDonalds which are very popular (2) Adding a new range of light sandwiches that KFC already has in other countries

5.2. CHICKEN in a BUCKET CHICKEN in a BUCKET 19-24, 25-29 A1,A2 3.87 Grad/PG Professional, Grad/PG General Student/Executive, officer

Age SEC Average Group Size Education Occupation

Day Part 3p.m. to 7p.m Group Type Friends (49%) Number of visits More than 4 times What else has been ordered along with the Soft Drink, French Fries main dish Indulge treat myself/others to Reason great food Main Dish ordered last time H&C Alternate dish Burger (26%) , Chicken (26%) Alternate eating-joint McDonalds

79

Expectations for the dish Why is this apt for this occasion

Discover a new taste Good Taste, Tried and liked before

Product:

Filing, Uniqueness, Taste , Crispy & Crunchy, Heritage

Key target customers: 19-24 and 25-29 year students and executives belonging to SEC A1 and SEC A2, Moderate to heavy visitors Day Part: Snack time (3p.m. 7p.m.) Need State: (a) Filling meal (b) Indulge/treat myself/others to great food (c) A new unique taste (d) Convenient place to interact with friends & de-stress Occasion: Enjoyable togetherness of friends over a meal or treating them for special occasions with great food Positioning: Fast-food, exciting, uniqueness, young, filling, Crispy & Crunchy, Value for money, Enjoyable break/ togetherness of friends, Heritage story However its target segment is quiet limited to young adults, mainly students and vegetarian consumers accompanying a group which is a matter of concern Recommendations: (1) To increase its popularity in groups of families and in higher age groups it can be Combo-ed with Bread or with Veggie Pulao+ Curry since at lunch or dinner this combination gives a more Filling-Meal-Appeal (2) Although Chicken Thali is a good affordable meal, the Makhani Curry is not very appealing to customers and needs to be changed when Combo-ed with COB else it spoils the experience of Eating COB too

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(3) KFC at present has just the fried chicken while that is a new taste thats attracting Indian customers however in sync with the Indian palate it should come out with Roasted, Grilled Chicken which are dry or semi-dry since there is a large number of potential customers there who are ready to experiment the Indian Chicken Dish with a different taste but are a little wary of trying a Complete American Food.

5.3. ZINGER BURGER Zinger Burger 19-24 (36%) , 25-29 (26%) A1,A2 2.58 Grad/PG Professional Student/Executive, officer 3p.m. to 7p.m Friends , Work Colleagues More than 4 times Soft Drink, French Fries & H&C Work Lunch & Want Specific type of food Zinger Burger Burger (36%) McDonalds Discover a new taste Tried and liked before (34%), Good Taste (18%)

Age SEC Average Group Size Education Occupation Day Part Group Type Number of visits What else has been ordered along with the main dish Reason Main Dish ordered last time Alternate dish Alternate eating-joint Expectations for the dish Why is this apt for this occasion

Product: Filing, Innovative, Uniqueness Concept of a big chicken piece in a burger, Taste, Crispy & Crunchy Key target customers: 19-24 and 25-29 year students and executives belonging to SEC A1 and SEC A2, Moderate to heavy visitors Day Part: Highest Snack time (3p.m. 7p.m.), however meal time (lunch & dinner) presence significant too

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Need State: (a) Filling lunch (b) Specific food taste (c) A unique riveting taste (d) Convenient place to interact with friends & de-stress Occasion: Work lunch & Craving for a specific taste Positioning: Fast-food, interesting palate unique to KFC, young, filling, Crispy & Crunchy, Surprising break from other burgers (McDonalds)

The only areas that need probing is: (1) The Crispiness of the burger is not as much as claimed. (2) There is a divided opinion on whether the chicken piece in Zinger Burger be of the present big size or smaller pieces assorted together to make it easier to eat. 5.4. HOT & CRISPY and ORIGINAL RECIPE HOT & CRISY 25-29 A1 (80%) 2.30 Grad/PG General Executive, Officer(30%), Businessmen(28%) 3p.m. to 7p.m (56%) Family, Work Colleagues More than 4 times Soft Drink, Burger After Shopping H&C (42%), ORIGINAL RECIPE 19-24 A1(56%), A2 (34%) 2.28 Grad/PG General Executive, Officer(36%), Businessmen(36%) 3p.m. to 7p.m (66%) Friends, Work Colleagues More than 4 times Soft Drink, French Fries Indulge/Treat myself/others to great food H&C (34%), OR (23%)

Age SEC Average Group Size Education Occupation Day Part Group Type Number of visits What else has been ordered along with the main dish Reason Main Dish ordered last time

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Alternate dish Alternate eating-joint Expectations for the dish Why is this apt apt for this occasion FOR HOT & CRISPY:

OR(12%) Burger (54%), Chicken (12%) McDonalds Specific food taste Tried liked before and

Burger (56%), Chicken (20%) McDonalds Discover a new taste, Specific food taste Wanted to experiment

Product: Uniqueness, Taste , Crispy & Crunchy, Heritage Key target customers: 25-29 year executives and businessmen belonging to SEC A1,Moderate to heavy visitors Day Part: Snack time (3p.m. 7p.m.) Need State: (a) Snacking (b) Specific food taste that's new unique & riveting (d) Convenient place to relax with family and work colleagues & de-stress Occasion: After Shopping for families and Work-lunch for Colleagues Positioning: Fast-food, uniqueness, Chicken Specialist, Crispy & Crunchy, Enjoyable break from work or shopping, International Taste & standard and Heritage story

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FOR ORIGINAL RECIPE: Product: Uniqueness, Taste ,Tender & Juicy, Secret formulae of 11 herbs, Heritage Key target customers: 19-24 year executives and businessmen belonging to SEC A1 and A2,Moderate to heavy visitors Day Part: Snack time (3p.m. 7p.m.) Need State: (a) Snacking (b) Discover a new taste & A specific food taste (d) Indulge/Treat myself/others to great food with friends and work colleagues & take a break from normal boring food Occasion: Enjoyable togetherness with friends over a great tasting snack and Worklunch for Colleagues Positioning: Fast-food, uniqueness, New taste , Chicken Specialist, Tender & Juicy, Adventurous , International Taste & standard ,Heritage story and Enjoyable break H&C and OR H&C is actually attracting people and it is the trial dish, OR is experimented after few visits especially by a younger age group from both SEC A1 & A2 that is more adventurous and are visiting KFC with a friends while families are generally settling for H&C which is tried before & liked dish. Recommendations: (1) Its observed that a piece of H&C is included in Chicken Thali, Variety Meal, 2 in 1 Meal, as the filling in Zinger Burger and also has a Chicken in a Bucket option. While OR is only available as a separate dish which implies there is no trial

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by a consumers taking any of these other dishes. All these meals should also have an option with OR and should be asked while ordering. (2) More variations of Chicken Dishes (Roasted or Grilled, Dry or Semi-Dry) should be introduced since lack of variety was a common complain by customers besides these could be served with salad and ketchup of different types (Tomato, Chilly, Mint, Tamarind etc) to enhance taste and give more options to customers.

(6) Comments by consumers of KFC NOIDA A very strong pungent smell (of frying of Chicken) Plates given were cracked French fries are not good/not fresh Curry given with Chicken Thali is awful Wrong orders were served by helper Chicken piece in the Zinger Burger is one single big piece which makes it uncomfortable to eat The Chicken Tikka Wrap n Roll has a bone in its tikka Lack of variety in the menu & Standardization of products at different outlets

RAJOURI No fizz in the Soft Drink The Burgers is soft & starts breaking after some time They have only one type of ketchup (tomato) Lack of variety in the menu & Standardization of products at different outlets

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OVER ALL POSITIONING: Nature favors extremes The same is true in marketing. The best chance for success is to position your brand as far from the leader as possible. Build your position too close to the leader & they will crowd you out. For example Coke is marketed as authentic & red while Pepsi is choice of a new generation & blue. So even though Mc Donalds is undoubtedly the most important competitor of KFC, KFC should try being as different as it can because although consumers may be looking for the same dish called burger but clearly want a completely new, different taste.

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APPENDIX - QUESTIONNAIRE (PHASE I)

Respondent's Details
Respondent's Name

Personal
Veg / Non veg split Tota l bill valu e No. of times visit to the outlet Last time you visited the outlet Other fast food outlets you visit

For Mc Donald's consumers

No. in the group Nature group of Are you aware of KFC? Visited KFC No. of times visited KFC Last time visited KFC Fast food eating out frequency Reaso ns for eating out

Day

Sex

Age

Address

Occupation

APPENDIX D- QUESTINNAIRE (PHASE-II) Market Visit Questionnaire (In-store) Name: ________________________________Sex: M / F Address:___________________________________________________________________ Age: (a) 18 or below (b) 19-24 (c) 25-29 (d) 30-39 (e) 40 and above Occupation: (a) Student (b) Executive/Officer (c) Businessmen (d) Self Employed Professional (e) House Wife (f) Others(Specify) Education: (a) School up to 12th (b) Some College but not graduate (c) Graduate/PG General (d) Graduate/PG Professional Group Type: (a) Friends (b) Family (c) Work Colleagues (d) Bf/Gf ___________ (e) Alone (f) Others(Specify)

No. of people in the group: _______________Veg/ Non Veg split: _____________________ Education & Occupation of the person who contributes maximum to the household:

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Unskilled Skilled worker Petty trader Shop owner Businessman/Industrialist No. of employees None 1-9 10+ Selfemployed professional Clerical/Salesman Supervisory level Officer/Executive (Junior) Officer/Executive(Middle /Sr)

Illiterate School upto 4 yrs E2 E2 E2 E1 E2 D D D D C B1 D D D C B1 C B2 B1 D D D C B1

School upto 5-9 yrs E1 D D C B2 B2 A2 D D C C B1

SSC/ HSC D C C B2 B1 B1 A2 B2 C C B2 B1

Some college but not grad D C C B1 A2 A2 A1 B1 B2 B2 B1 A2

Graduate / PG (Gen) D B2 B2 A2 A2 A1 A1 A2 B1 B1 A2 A1

Graduate/ PG (Prof) D B2 B2 A2 A1 A1 A1 A1 B1 A2 A2 A1

Hi, I am here to ask you a few things about your eating preferences, our food and your suggestions to improve your eating experience here. I would be grateful if you can spare a few minutes for the same. Q1. Which of the following best describes your visit to KFC today? First visit Visited earlier Proceed to Q2 if coded 2 in Q1, else terminate Q2. How many times you have visited earlier? 1-2 times 3-4 times 4+ times 1 2 3 1 2

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Now lets discuss what you have eaten here today Q3. Which of the following best describes the main dish you had here today? Veg Chana Crunch Snacker Veg Thali Veg Fingers Veggie Feast Paneer Tikka Wrap n Roll Code 1 2 3 4 5 Non Veg Chicken Crunch Snacker Chicken Thali Hot & Crispy Chicken Original Recipe Chicken Crispy Chicken Strips Chicken Tikka Wrap n Roll Zinger burger Colonel burger Bucket Of Chicken Code 6 7 8 9 10 11 12 13 14

Q4. Which of the following did you order along with your main dish? Soft Drink French fries Thali Burger Snacker Salad Bread Ice cream/ sundae Coleslaw Any Other (Please mention) 1 2 3 4 5 6 7 8 9 10

Q5 (a). Which of the following reasons best describes your current visit to KFC? After Shopping Work Lunch Catching up with friends Quick meal (on the go) Indulge/ Treat myself/ourselves to great food Celebrating special occasions/events Break from home food Want a specific type of food 1 2 3 4 5 6 7 8

Q5 (b). Which of the following best describes what you are looking for in the dish ordered by you at KFC? Discover a new taste Pick myself up (Positive energy/uplift mood) 1 2

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Share with others Quick fix meal Saving time (by not cooking) Reward myself/ others Specific food taste

3 4 5 6 7

Q6. You just had _________________ (Refer to Q3). What in your current dish made it a perfect choice for ________________________occasion (quote from Q5) This dish (__________________________) was apt for ___________________(occasion) because____________________________________________________________________

Q7. Imagine if there was no KFC. What would you have eaten on this occasion? (Instead of what you referred in Q3) _______________________________________________________________________ Where? ________________________________________________________________________ Q8. Which of the following main dish you had on your last visit to KFC? Veg Chana Crunch Snacker Veg Thali Veg Fingers Veggie Feast Paneer Tikka Wrap n Roll Code 1 2 3 4 5 Non Veg Chicken Crunch Snacker Chicken Thali Hot & Crispy Chicken Original Recipe Chicken Crispy Chicken Strips Chicken Tikka Wrap n Roll Zinger burger Colonel burger Bucket Of Chicken Code 6 7 8 9 10 11 12 13 14

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BIBLIOGRAPHY
Web Sites www.kfc.com www.google.com www.ask.com www.wikipedia.com Class Notes is referred Magazines India Today Business Today The week Outlook Express Newspapers

The Times of India The Hindustan Times The Economic Times Books: PHILIP KOTLER, MARKETING MANAGEMENT, NEW MILLENNIUM EDITION 2000. V.S RAMASWAMY AND S. NAMAKUMARI MARKETING MANAGEMENT, SECOND EDITION. WILLIAM STANTON.J, MICHALL J.ETJEC, BRUCE J.WALKER

FUNDAMENTAL OF MANAGEMENT.

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