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FRIDAY, MAY 04, 2007

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We dedicate this report to our Parents and respectable Teachers


First of all, we would like to offer our eternal thanks to the Almighty Allah who blessed us with the perseverance and the sprit of hard work to complete this project. We are also grateful to our parents for their patience and belief in us. We offer our respectful gratitude to our etail !arketing course supervisor !r. "aneef for his guidance # encouragement. We would like to thank all of those people specially the !arketing !anager of $F% !r. &heikh &ohaib who helped us through our entire etail !arketing project.

KFC Group Members

!ay '(T", )''* +ational ,niversity of !odern -anguages


Topics covered in this report.

%ompany/s Profile00000000000000..

$F% %orporation, based in -ouisville, $entucky, is the world/s most popular chicken restaurant chain, speciali1ing in 2riginal %rispy

ecipe 3, 45tra

, and %olonel/s %rispy &trips3 chicken with home style sides and

five new freshly made sandwiches. 4very day, nearly eight million customers are served around the world. $F%/s menu everywhere includes 2riginal ecipe3 chicken6made with the same great taste %olonel "arland &anders created more than a half7century ago. %ustomers around the globe also enjoy more than 8'' other products6from a %hunky %hicken Pot Pie in the ,nited &tates to a salmon sandwich in 9apan. $F% continues reaching out to customers with home delivery in more than 8'' restaurants in the ,nited &tates and several other countries. And in :uite a few ,.&. cities, $F% is teaming up with other restaurants, Taco ;ell and Pi11a "ut, selling nearly fifty years ago< %olonel &anders invented what is now called =home meal replacement> ? selling complete meals to harried, time7strapped families. "e called it, =&unday @inner, &even @ays a Week.> Today, the %olonel/s spirit and heritage are reflected in $F%/s brand identity ? the logo features %olonel "arland &anders, one of the best7 recogni1ed icons in the world.

$F% is part of Tricon Alobal estaurants, Bnc., which is the world/s largest restaurant system with nearly 8',''' $F%, Taco ;ell and Pi11a "ut restaurants in more than C'' countries and territories.

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$F% is an internationally renowned fast food industry in the world. They have the main ambition to increase # maintain the :uality in fast food industry. Their aim is to capture the fast food market. ;asically they want to provide their products to anyone that is why they e5pending their branches in all over the world. They want to increase their profit through giving ma5imum satisfaction # other better facilities to people that they want. +ow after catching such a marvelous position in the Bnternational !arket, $F% is introducing a new item =;oneless Fried %hicken>, with even more attractive and charming taste.

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%olonel "arland sanders, born &eptember D, CED', actively began franchising his chicken business at the age of FG. +ow, the $entucky fried chicken business he started has grown to be one of the largest retail food service systems in the world. And colonel sanders, a :uick service restaurant pioneer, have become a symbol of entrepreneurial spirit. !ore than two billion of the colonel/s =finger lickin/ good> chicken dinners are served annually. And not just in America. The colonel/s cooking is available in more then E) countries around the world. When the colonel was si5, his father died. "is mother was forced to go to work, and young "arland had to take care of his three year old brother and baby sister. This meant doing much of the family cooking. ;y the age of seven, he was a master of a score of regional dishes. Ate age C', his first job working on a nearby farm for H) a month. When he was C), his mother remarried and he left his home near "enryville, Bnd., for a job on a farm in Areenwood, Bnd. "e held a series of jobs over the ne5t few years, first as a CG7 year7old streetcar conductor in +ew Albany, Bnd., and then as a CF7year7old private, soldiering for si5 months in %uba. After that he was a railroad fireman, studied law by correspondence, practiced in justice of the peace court, sold insurance, operated an 2hio iver steamboat ferry, sold tires, and 2perated service station. When he was (', the

colonel began cooking for hungry travelers who stopped at his service station in %orbin, $K. "e didn/t have a restaurant then, but served folks on his own dining table in the living :uarters of his service station. As more people started coming just for food, he moved across the street to a motel and restaurant that seated C() people. 2ver the ne5t nine year, he perfected his secret blend of CC herbs and spices and the basic cooking techni:ue that is still used today.

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$F% I$entucky Fried %hickenJ was introduced in the Pakistani market by the Artal Aroup of ;elgium and although a late entrant, it managed to establish several outlets in $arachi, -ahore and several more areas. After a through survey and analysis $F% opened its first branch in Aarden town -ahore five years back. &ince then there was no looking back for $F% as it started to earn profits and grow to other different cities. $F% in Pakistan has been shoeing a steady growth and profitability. &ome profits were used for team making, uplift of the restaurants etc. $F% believes in providing =value for money> to its customers. They have high :uality standard and they are in concurrence to those prevailing in other countries. They have an international brand name to protect so there is strict implementation of :uality standards.

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All the raw materials like chicken are bought from value chicken, vegetables from !onsalwa and they use caned fruit for salads. The machinery is all automated and is in conformance to international standards. $F% officials often visit the outlets without giving prior notice in order to check the conformance to :uality standards and procedures. !oreover, Food Bnspection Teams from "ealth !inistry visits twice a year to ensure "ygienic %onditions at the $itchen.

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$F% has taken advantage of all these e5cellent investment opportunities that Pakistan offers for franchising and has e5panded and penetrated the market a lot. $F% has adapted to the legal and political environment and conditions of Pakistan. The Pakistani culture has also molded the operations of $F% in Pakistan. All the outlets of $F% in Pakistan present Pakistani food culture. $F% has displayed banners that it servers "alal food all over its outlets which represents Pakistani culture. They also offer families/ deals as the people are very close to their families and like to have G)&)*"' M"&"/)* food with them. $F% has also brought some changes 6GM7 in the culture of Pakistan. The most significant is the !anager way it has changed the eating habits of the local population. People now are aware of unhygienic Assistant !anager IBJ Assistant !anager IBBJ conditions that prevail in some of local restaurants. And $F% has also brought the idea of self7service in &hift Bn7charge Pakistan.
%ounter workers $itchen workers Auards

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The $F% adopted traditional structure for their outlets that other food chains are following. There is one Aeneral !anager for Pakistan. The outlet is leaded by the !anager, assisted by two assistant managers, and one shift in7charge for each shift, that supervises the performance of counter workers and kitchen workers.

$F% does not consider !c @onald/s are its direct competitors. As !c @onald/s has a limited menu and cater to different segments of society e.g. !c @onald is catering to lower middle society of Pakistan. Though $F% has faced a little competition from local restaurants but their breakeven in terms of revenue has been done and they are planning to e5pand further to other cities like Bslamabad and Peshawar.

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&ince CDE), $F%/s =All7American salute to !others> national card contest has been $F%/s way of honoring moms and their families for making mother/s @ay $F%/s biggest sales day of the year. The contest encourages children to creatively e5press their feelings for their moms by making a homemade card and give them chance to compete for more than HC',''' in cash and pri1es. 4ducational packets, including language, history and art e5ercises highlighting !other/s @ay, were sent to thousands of schools nationwide.

There are ( P/s of !arketing.

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C. Production.
;asically the product is anything that be offered to a market for attention, ac:uisition, use, or consumption that might satisfy a want or need. $F% is specially dealing in the chicken products< ;asically, $F% has the special raspy for chicken products that is why, $F% known as a chicken specialist allover the glob. $F% target the Asia and east side because they observe that they people are like the chicken products, so they enter in the market due to the demand of their chicken products. $F% product variety of product in the chicken, those products are. P 2@,%T&. 2riginal recipe3 chicken 45tra Tasty %rispyT! chicken "ot WingsT! pieces Tender oast3 chicken

%hunky %hicken pot pie $entucky +uggest3 %olonel/s %rispy &trips3 "oney ;;L sandwich 2riginal ecipe3 &andwich Tender oast3 &andwich Triple %runch3 &andwich Triple %runch 3Minger3 &andwich

; A+@. There are three brands of the $F%. CJ Taco bell )J Pi11a "ut 8J -ong john silvers

). Pricing.
$F% during pricing their products keep the different points in the mind like they adopt the cost base price strategy. Pricing of the product includes the Aovernment ta5es and e5cise duties and then they come at final stage of determine the price of their products. $F% prices of products are a bit high according to the market segment and it is also compatible to the stander of their products. %alculation of the price under %ost ;ased Pricing &trategy. T%#"' %0&.+ %- C<$98)& S)*(). $& KFC R)+#"0*"&# A&&0"'', N C.DC( ;illion T%#"' KFC C<$98)& $)9)+ S%'. A&&0"'', N G.ED ;illion T%#"' R)#"$' S"')+ N HE.D ;illion S"')+ *$9) %- 4)* C<$98)& $)9) N Total etail &ales O %hicken Pieces sold N HE.D ;illion O HG.ED ;illion NHC.GC

We assume that Fi5ed %ost is N HF''''''''' V"*$"=') C%+# N HF*G'''''' *%-$# M"*/$& is 2r !ark ,p N H))G''''''I)GP of &alesJ Per ,nit Qariable %ost N HF*G'''''' O GED''''''' N H '.CCG U&$# C%+# N Qariable %ost R Fi5ed %ost O %hicken pieces &old N '.CCG R F''''''''' O GED'''''''

N '.CCG R C.') N HC.C8G +ow suppose manufacturer wants to earn )GP mark up on sale. The manufacturer mark up price is calculated. M"*8 U4 *$9) N ,nit %ost O IC ? @esired eturn on &alesJ NC.C8G O IC7.)GJ N C.C8G O '.*G N HC.GC

8. Promotion.
Promotion is one of the necessary plates in any form of business or in other words you can say that promotion is the key of success. Bf you promote your product at the right time. $F% also known the importance and significance of promotion so they uses the bill boards the major source of advertisement and one of the most important thing that they uses media especially the newspapers to promote their products. They are also creating awareness among the masses about their e5isting product range as well they tell us about the future product. !arketing efforts to be taken by the restaurant. Paste delivery posters at petrol pumps, flats, colleges, pla1as, and departmental stores. @istribution of delivery flyers in residential areas, markets, pla1as and institutions Ias per the planJ Qisit offices and business places.

(. Placement.
Bn the case of the $F% the placement of the product is not important but the placement of the restaurant is important. The products of the $F% is cooked at the sport and then served after that. $F% %avalry branch opened in 9une CDDE, in the main commercial 1one of %avalry Arounds near the 9innah Flyover. The restaurant is a three7story building including the basement Iwhere the chicky play area is locatedJ. Bt is ideally located in the center of a main commercial and residential area of -ahore. The area that $F% %avalry caters for is the residential and office area of %avalry Arounds and %antt, as the main target market. Another branch the $F% opened in the -ahore is in Aarden Town Iopposite to ;arkat !arketJ. $F% also target the Faisalabad and open its branch in @ ground. +ow we can easily judge that the $F% target the place for their restaurant, which is well known and is in the Porsche area where the income level of the people is high then

the middle class level. ;ecause the prices of the $F% products is high with comparison to the local products manufacturer who are dealing in the same kind of product in which $F% is dealing but the prices of the $F% is high due to special taste, high :uality, and due to international brand, it is the world recogni1ed fast food restaurant all around the world. &o, for the placing strategy, $F% chose the well income class area for their restaurants.

After my research of $F%, B come to conclusion that $F% has a good product as far as chicken items are concerned. ;ut they have to increase other varieties to attract the customers. And they must targets the children, as !c@onald/s targeting by making a play land because children are the main source and important ones to push their parents to go to their favorite restaurants. And one more aspect for $F% is that it must also reduce their prices to compete their competitors like !c@onald, %risps Pins and Pi11a "ut.