Project Report On

CONSUMER PREFERENCE TOWARDS KFC

Submitted in Partial Fulfillment of the requirement of Bachelor of Business Administration

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SUBMITTED TO:
NITIN SAREEN
(Assistant Professor)
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SUBMITTED BY:
BHOOMIKA SEHGAL
BBA Vth SEM
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CERTIFICATE
TO WHOM IT MAY CONCERN
This is to certify that Ms. BHOOMIKA SEHGAL student of BBA-V semester in our institute has
successfully completed her project work entitled CONSUMER PREFERENCE TOWARDS KFC
for the partial fulfillment of the degree of Bachelor of Business Administration for the session
2014-2015

Dr. RACHNA SAXENA

HOD, BBA/B.COM Program

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NITIN SAREEN
Assistant Professor

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ACKNOWLEDGEMENT

This research project is made possible through the help and support from everyone,
including: parents, teachers, family, friends, and in essence, all sentient beings.
Especially, please allow me to dedicate my acknowledgment of gratitude toward the following
significant advisors and contributors:
First and foremost, I would like to thank MR.NITIN SAREEN for his most support and
encouragement. He kindly read my project and offered invaluable detailed advices on grammar,
organization, and the theme of the project

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CONTENT
Page No.
1. OBJECTIVES
2. METHODOLOGY OF STUDY
3. COMPANY PROFILE
4. LITERATURE REVIEW
5. DATA PRESENTATION, DATA ANALYSIS
6. QUESTIONNAIRE
7. CONCLUSION
8. RECOMMENDATIONS
9. QUESTIONNAIRE
10. BIBLIOGRAPHY

PREFACE
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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 in-home 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 illfated launch of KFC in 1995 in Bangalore. The launch got mired in a controversy, 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
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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 Bareilly and
covered 50 Respondents for each. Questionnaire included demographic profile and behaviorbased 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 eating-out 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
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are non-vegetarians. The most important reasons being to catch-up 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 50 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
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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 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.

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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. 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

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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)

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, KFC - OVERVIEW

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.

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OBJECTIVES
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.
.KFC 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 behavioral 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 behavior 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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COMPANY PROFILE
INTRODUCTION
KFC India
KFC is the worlds No.1 Chicken QSR and has industry leading stature across many countries
like UK, Australia, South Africa, China, USA, Malaysia and many more. KFC is the largest
brand of Yum Restaurants, a company that owns other leading brands like Pizza Hut, Taco Bell,
A&W and Long John Silver. Renowned worldwide for its finger licking good food, KFC offers
its signature products in India too! KFC has introduced many offerings for its growing customer
base in India while staying rooted in the taste legacy of Colonel Harland Sanders secret recipe.
Its signature dishes include the crispy outside, juicy inside Hot and Crispy Chicken, flavorful
and juicy Original Recipe chicken, the spicy, juicy & crunchy Zinger Burger, Toasted Twister,
Chicken Bucket and a host of beverages and desserts. For the vegetarians in India, KFC also has
great tasting vegetarian offerings that include the Veg Zinger and Veggie Snacker . In India, KFC
is growing rapidly and today has presence in 21 cities with close to 107 restaurants.

HISTORY AND BACKGROUND

KFC History Way back in 1930s Colonel Harland Sanders got some distinguished Kentucky
folks lickin their fingers. Its been in fashion since then!
Colonel Harland Sanders, founder of the original Kentucky Fried Chicken, was born on
September 9, 1890.When he was six, his father died and his mother was forced to go to work
while young Sanders took care of his three year old sibling. This meant he had to do much of the
family cooking. By the time he was seven, Harland Sanders was a master of a range of regional
dishes.
After a series of jobs, in the mid 1930s at the age of forty, Colonel Sanders bought a service
station, motel and cafe at Corbin, a town in Kentucky about 25 miles from the Tennessee border.
It is here that Sanders began experimenting with different seasonings to flavor his chicken which
travelers loved and for which he soon became famous.
During the next nine years he developed his secret recipe of 11 herbs and spices and the basic
cooking technique which is still used today. Sander's fame grew. He sold his chicken on the
highway! But when the highway was removed, he sold up and traveled the United States by car,
cooking chicken for restaurant owners and their employees. If the reaction was favorable Sanders
entered into a handshake agreement on a deal which stipulated a payment to him of a nickel for
each chicken the restaurant sold.
By 1964, from that humble beginning, Colonel Harland Sanders had 600 franchise outlets for his
chicken across the United States and Canada. Later that year, Colonel Sanders sold his interest in
the United States operations for $2 million. The 65-year-old gentleman had started a worldwide
empire using his $105 social security cheque. Sadly, Colonel Harland Sanders passed away on
December 16th, 1980 aged 90.

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His legacy lives on with KFC restaurants all over the world. KFC now stretches worldwide with
more than 13,000 restaurants in more than 80 countries and territories around the world serving
up the Colonels Original Recipe. It is a $13 billion brand based out of Kentucky and is the
leading QSR around the world which is based in Louisville, Kentucky. Yum! Brands own 5
brands, out of which KFC is the largest brand within the Yum! Portfolio, founded by Colonel
Harland Sanders in the year 1938.
Marketing Mix:
Marketing mix consists of 4Ps. It contains everything a firm can do to influence the demand for
its product. The 4Ps are:
PRODUCT
PRICE
PLACE
PROMOTION
These marketing mixes are described in detail as under.
PRODUCT:
Product planning:
Their product is classified as consumer product as it has no intermediates. It also offers specialty
goods. The stock turnover of KFC is relatively high. The prices and quality of the product is
always compared. Their product includes Goods (Burgers, Chicky Meals etc) and Services
(cleanliness, quick service, parties, and meetings).
Product Strategy:
It was launched here as an innovative product. KFC has got one product line but later they
introduced products in the same line to protect their market share. New product ideas are
generated from:
Customer services (comments cards)
Gallops survey (mystery shoppers)
They have a Quality Assurance department that decides the new product innovation. Q.A.
department prepares screening of new ideas and products feasibility report. This department
does the technical evaluation (whether it is practical to produce the new product or not). The
products are tested externally by offering trials to customers by giving them free samples. KFC
uses telemarketing, print media, billboards and most recently televised marketing for promotion.
KFC adds a new product in its present assortment based on their competitors, products adequate
demand, the satisfaction of key financial criteria and its compatibility with environmental
standards.

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Product Line:
KFC product line includes all chicken based products.
Burgers:
The burger category includes the Zinger Burger, Colonels Chicken Burger, Colonels Fillet
Burger, SUB60 and 80, and Zinger Jr. They have also introduces a Fish zinger burger.
Chicken Pieces:
The chicken involved the product line with different number of chicken pieces like 1 piece, 2
pieces, 5 pieces and 10 pieces chicken.
Combos:
The combo includes the different meal as Chicken Meals, Sandwich Meals and Family Meals.
Desserts & Beverages:
The desserts and beverages offered by KFC are Fruit Salad, Regular & Large Drink, Regular &
Large Mineral Water, Tea, Scoop of Walls Ice cream and Coffee.
Snacks & Side Orders:
The snacks and side orders served by the KFC are Arabian Rice, 5 & 10 Pieces Hot wings,
Dinner Roll, Regular & Large Fries, Hot Shots, and Corn on the Cob, Hot & Crispy Soup and the
Cole Slaw.
Product Mix strategies:
The product mix strategies are in relation to:
Competitors:
KFC has a head-on competition with McDonalds so wherever they place their products; KFC
goes there as well. Locally in India KFC face a close competition with the local brands like AFC
(Al-Baik Fried Chicken), Fried Chicks, Dixy Chicks etc which are producing more or less the
same product as KFC.
Attributes:
The brand KFC is so strong that it is the attribute itself.
Quality:
KFC products are based on high quality and prices.

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Product Mix Expansion and Contraction:

KFC keeps on modifying their product through line extension and other methodologies. Line
Extension is being done through introducing new meals offers. The alteration of existing
products is also done and this function is performed by the Quality Assurance department. The
department decides which product should be sold and when (seasonal products as rice and soups
offered in winters). Functional modification is also done by the Q.A. department to introduce
new recipes. Other than expansion contraction is also being dealt with as when the new deals or
offers are not sold as expected, Q.A. department contracts the previous offers and introduces new
offers.
Change in Product Positioning:
KFC products were first offered to upper socio-economic group. Later, introducing discounted
and lower price deals, they are now dealing in masses. So, KFC has traded down. In doing so
KFC has used the same brand name and same high quality product.
Product Branding, Packaging and Labeling:
Brand Name: KFC
Color: Red, white
Symbol: Colonel Harland Sanders picture and KFC written with it.
Master Brand: The brand itself is so dominant, that it immediately comes in mind.
KFC Brand:
KFC's brand identity is the logo featuring Colonel Harland Sanders, one of the best-recognized
icons in the world. It is trademarked registered brand and is distinctive, adaptable to addition to
product line. It suggests something about product. It is legally protected and registered.
Brand Equity and Strategy:
The brand equity is very high as the value added by brand to the product effects the product
selling. And the Brand strategy followed is that the KFC is marketing the entire output under
products own brand. Pepsi and Nescafe are the complementary brands associated with KFC.
Packaging Strategy:
KFC makes its own disposable packaging. If they need promotion Pepsi contributes in improving
the packaging quality. KFC does family packaging. They use paper material for packaging to
avoid health hazards and environmental pollution.
Labeling:
KFC does brand labeling. Some of its products also have informational labels such as Halal,
Veggie Burgers and Chicky Meals.

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PRICE:
In introduction stage KFC entered the market using market-skimming strategy. Their products
were high price and targeted only upper class. Gradually they trickle down focusing on the
middle class to penetrate the market. Also KFC follows one price strategy. Price is determined
according to the rates of the raw materials and policies of the Govt. The political and legal forces
often affect the policies of KFC and eventually results in change of prices that is due to imposing
of taxes.
PLACE:
Distribution Channel:
KFC has only one channel of distribution i.e. direct where the goods are transferred to the
consumer directly. KFC has no middlemen.
Distribution of Consumer Goods and Services:
KFC does distribution of consumer goods directly to the consumer. It also does distribution of
services to the consumer like parking, sitting, home delivery, etc. KFC does intensive
distribution on its outlets. (All and everything on every outlet).
KFC gets Wheels!
KFC launched its first mobile unit, which took the streets of Karachi by storm. The mobile unit
has been designed to cater to the needs of those who are on the go, and have little time to stop by
at a restaurant. It also provides a unique convenience of enjoying the delicious KFC offering
anytime, anywhere, thus making fast food truly fast and convenient.
It intends to further develop its mobile network nationwide through more such units.
PROMOTION:
The logo features Colonel Harland Sanders that is one of the best logo in the world has created
its name as a standard in the market. Today the Colonels Spirit and heritage are reflected in
KFCs brand identity.
KFC by its advertisements derives the desire in the customer to come and enjoy healthy food in
their favorite restaurant. They spend 2% of its profits on advertisement. They use print media and
most recently doing televised marketing to promote it products. Their advertising media involve:
Newspapers, Pamphlets, Billboards and Television. KFC does both the primary demand
advertising (Become a Chicken Fanatic) and the selective demand advertising (e.g. Zinger
Meal). In its advertising it give informative messages like Keep the city Clean. KFC does
institutional advertising to stimulate demand. When KFC offers new products then it does
product advertising. KFCs ads act as counteracts which means to drive the customer to KFC i.e.
it uses pull advertising strategy. They also provide wit the key chains, watches, bags, tee-shirts
etc. to its customers with the purchase of different meals as a part of their promotional activities.
They also provide with certain midnight packages, birthday packages and lot more.
KFC has put big hoardings on the busy areas of India and have an effective advertisement
campaign on the media in order to motivate its customers. The colors used in advertising are
Red, White and blue which itself is recognition for the brand.
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KFC have joint sale promotions with different companies like HP, Philips, Value Meals, PepsiCola. And most recently with ARY Gold digital and World Call Internet services. Also KFC
Proud Partners are Del Monte, Culligan, Shan and Peek Freans (EBM).
PSO had made a scheme in which PSO had given the coupons of KFC having 10% off. (1
coupon was given after each purchase of 10 liters of petrol)
KFC in its advertisements says;
Nobody does chicken like KFC
We do chicken right
Hence, focuses on product advertising. KFC does mass selling in order to reach its target market
(as it has trickle down). KFC in its ads try to convert people to people who eat boring bland fast
food over to KFC.
The message conveyed in the ads is recognition for the brand. KFC does competitive
advertisement with its head on competition with McDonalds. Regarding this KFC uses Pricing
below competition strategy.
KFC sponsors many NGOs and other social welfare organizations. They also offer different
deals according to the season and occasions.
KFC as a market leader:
It has covered 80% of the market share in fast food industry KFC has recognition around the
world and has been globally positioned for many years in India and to capture the market share
in India adopts champs philosophy.
Strategic Planning is the process of developing and maintaining a strategic fit between the
organizational goals, capabilities and its changing marketing opportunities and is done by KFC
in a well defined manner.
Strategic planning sets the stage for the rest of the planning in the firm. KFC is looking that how
much its current strategies are beneficial for them. Although these are good and profitable but
dynamic changes in environment are requiring identifying the attractive opportunities.
That is the reason that they are expanding there market size by focusing on sub urban areas and
targeting middle class people by providing them differentiated products at a fair price. They are
opening their new mobile outlets in there potent ional markets. KFC is also going to increase its
sweet dishes to avail the opportunity available for them.
KFC in a Growing Market:
The market of KFC is increasing day by day. Being a food market it is always considered in a
growing market because it increases continually with the population. Their growth is
continuously increasing and if they want to be a leader, they has to develop a strategy which is
predominantly a market expansion strategy and in this way they will not loose their leadership. It
has greatly increased their market share in India by following different strategies that may be
regarding their products, prices, placement or promotions. They have been following the
strategies for market expansion by targeting the new users of the product, describing the new

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uses of the product and by showing them more usage of the product.
Describing the New Uses:
In this method, the new uses of the product are being described. As the motto of KFC says we
do chicken right, here they claims that they are the best in using the chicken correctly. In the
early days the chicken was simply used in a simple way for cooking, but KFC has introduced it
in a number of ways and described it to the people by launching it as a meal as well as in the
snacks form. They prove them with the best cooked chicken with a great taste. Instead of the
chicken pieces, they also serve chicken nuggets, burgers, hot shots, twisters etc. many new
innovative products are being introduced by KFC that is greatly helpful in attracting the
customers and increasing its market share.
More Usage:
In the advertisement of KFC mostly seen on the bill boards, they have shown in the new scheme
of zinger deal of Rs.290 + 10 and u get zinger + another chicken burger. And in Ramadan, they
launches the deal of Rs. 500 and it says that all you can eat, it gives the unlimited zinger burgers
and chicken pieces. In this way they have greatly increased their usage of their products.
New Users:
The people who do not eat KFC should be attracted, that may be by attracting the non users of
the product, non users of the brand or the non believers. They are done in the following ways.
Non users:
The people who do not eat the fast food, they should be attracted like KFC has been attracting
their customers by providing deals with Ufone. If the person is an Ufone user and he is not a
KFC customer, they simply receive a message on their hand set and they jus have to show it on
the KFC and counter and get a free meal. Its a strategy to attract the non users. In a similar way,
distributing deal coupon on specific purchases, in shopping malls may also be very effective.
Non Users of the Brand:
The non users of KFC can be attracted by describing them the quality features of the product that
they think of trying the product once. In this case promotional activities play an important role. If
the promotions are done in an effective manner, people would definitely try the product and also
lowering the prices may be very effective that people may switch from other brands to KFC.
Non Believers:
KFC is quite successful in attracting the non users of the product and the brand as well, so it is
not really necessary to hit the non believers. This is because they are the most difficult people as
it is very hard to break their social, religious and cultural believes.

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SWOT ANALYSIS:
The swot analysis includes the strengths, weaknesses, opportunities and threats faced by KFC in
India. These all are described in detail as under:
Strengths:
It is the oldest and finest in Business having a high Goodwill. It does not have any Core
competitor in chicken serving. They have a large Number of Outlets at prime locations in India.
They serves variety of items under single menu. They are successful in maintaining their loyal
customers. It has an incentive of being a Multinational Organization e.g. economies of scale,
government incentives etc.
Weaknesses:
Its major weakness id the presence of Multinational competitors in the market e.g.
McDonalds(specialized not in chicken serving but in burgers) and the other weakness faced by
KFC is the imported raw material which usually rise their prime cost.
Opportunities:
The opportunities are the cheap and easy availability of labor. The increase consumption of fast
food has increased the market size of KFC. As the consumer usually prefer All under one roof,
therefore, in order to increase their sales turnover they can increase or add the served items.
Threats:
The threats faced by KFC are the entrance of many new competitors into the market that may be
local or international brands. And being in India, there is high political instability/uncertainty
involved.

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PEST ANALYSIS:
The Pest Analysis includes the political, economical, socio-culture and technological factors.
These are described in detail as under:
Political Factors:
The political factors includes the government policies as KFC being a foreign company, but they
have to obey the policies of the Government laid by the government of India, the country where
the business activities are being carried out. KFC has handled this situation very tactfully and has
obeyed the policies of the Government as prescribe by the government in order to run this kind
of business. The other major factor is the pricing policies. KFC maintain & design its price
policies keeping in view the income & income distribution of the people living in the country.
Thats why all the classes are the target market of KFC. And the most important factor is the
political instability. As in India, there are political crises faced by the government, these greatly
affect the business of KFC.
Economical Factors:
The economic factors includes the income of the people, KFC is going to target. Income is an
important economical factor of the KFC. This factor decides which class KFC is going to target.
In the early time of KFC, they were focusing on the upper class but they after some time changed
their strategies and started to target the mass market by introducing some different kinds of meals
and offers through which we can say that they target the middle & the upper level as well. The
consumption behavior of the people plays an important role. KFC also estimated the
consumption behavior of the people, their liking and disliking and make decision accordingly.
Payment method is an important factor in the economical factor of the KFC. They check the
behavior of the regarding the payment methods of the people. They check whether the gives
money in the form of cash or plastic money.
Socio-culture Factors
The Social/Cultural Factors includes the Social Class, as it is discussed earlier that KFC target all
the class including the upper class, upper middle and lower middle class etc. Although the
culture of KFC from where they come is entirely different but they have adopted the Indiai
culture as they had to serve the people living in India having entirely different culture from other
areas. And it has not only adopted the Indiai culture but also the Religion as well. They offer
Halal foods to the customers, which is the symbol that they adopted the Muslim religion
strategies as they had to serve in the Muslim country, to the Muslim customers.
Technological Factors:
The technological factors include the Pace of change at a fast level.
Pace of change mean rate of change. KFC has strategy to introduce new technology whenever
they think that it is a time to introduce new technology. Research & Development is also an
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important factor in the Technological factor. KFC always support the work of research &
development in order to introduce the new technology. Capital formation means stock of
machinery. KFC has a stock of machinery in order to run its business activities. In other words
KFC has a good amount of Capital Formation.

PROBLEMS FACED BY KFC IN INDIA

The case highlights the ethical issues involved in Kentucky Fried Chicken's (KFC)
business operations in India. KFC entered India in 1995 and has been in midst of
controversies since then. The regulatory authorities found that KFC's chickens did not
adhere to the Prevention of Food Adulteration Act, 1954. Chickens contained nearly three
times more monosodium glutamate (popularly known as MSG, a flavor enhancing
ingredient) as allowed by the Act. Since the late 1990s, KFC faced severe protests by
People for Ethical Treatment of Animals (PETA), an animal rights protection organization.
PETA accused KFC of cruelty towards chickens and released a video tape showing the illtreatment of birds in KFC's poultry farms. However, undeterred by the protests by PETA
and other animal rights organizations, KFC planned a
massive expansion program in India
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RE-ENTRY OF KFC INTO INDIAN MARKET

A case in point is KFC. KFC entered India in 1995, but a controversy surrounding the
levels of MSG in its preparations and subsequent protests from farmers' groups and animal
rights activists spelt trouble for the company. Ultimately, the company had to shut all but
one outlet in the country. Only recently in 2003 it made a quiet re-entry into the Indian
market. Then came up with the strategies and menu that is desirable by the Indian
consumers. And since 2003 it is expanding successfully its business in India.

Mission statement
To be the leader in western style quick service restaurants through
friendly service, good quality food and clean atmosphere

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PRODUCT

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

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.
(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

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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 every day. 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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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 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

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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.
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 142seater 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,

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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 50 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 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 doubledigit 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.
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The other significant point is KFCs efforts toward 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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PROCESS/METHODOLOGY OF STUDY

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: BAREILLY

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

Analysis and data interpretations

Drawing inferences from the sample statistics

Presentation of result

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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 a sample size of 50 respondents was
covered. Similarly 50 respondents were interviewed at two locations of McDonalds outlets
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 50 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) GENDER PROFILE OF RESPONDENTS

Figure 1.1a

Figure 1.1b

KFC consumers show a male skew vis--vis Mc Donalds which has an even distribution.

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(2) AGE DISTRIBUTION OF RESPONDENTS

Figure 1.2b
Age distribution of Respondents shows both KFC & Mc Donalds is 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

Mc Donalds has dominance in the working segment primarily driven by families. KFC
clearly is the preferred choice of youth & young adults.

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(4) NATURE OF GROUPS

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.

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2. BEHAVIORAL PROFILE OF CONSUMERS

(1)FOOD PREFERENCE OF EXISTING CONSUMER GROUPS

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.

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(2) NUMBER OF VISITS TO THE OUTLET

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 Bareilly
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

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(3) Awareness of KFC

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(4) Fast food eating out frequency

FAST FOOD EATING OUT FREQUENCY

KFC

83

Mcd

0%

13

10%

12

20%

30%

40%

50%

One or more times a week

Once a fortnight

Less than once a month

No Response

12

60%

70%

80%

90%

100%

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

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

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.

Figure 2.6c

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Figure 2.6d

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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.

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.

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

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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 greater
opportunity to convert these eat-outs of existing KFC consumers at various fastfood outlets to visits to KFC.

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(6) REASON FOR EATING OUT VIS--VIS THE NATURE OF GROUP

Mc Donalds
REASONS FOR EATING OUT WITH RESPECT OF NATURE OF
GROUP OF THE RESPONDENTS OF Mc DONALD's

An occasion to
celebrate

11

I work in this area

& hence decided
to come here

8
Wanted a break
from home food

For
Snack(Brunch)

2
1

For lunch

6
2

Wanted an
enjoyable outing
with family

12
1

Wanted to get
together with
friends

1
26
1
1

I was in this area

& hence decided
to eat here

6
5
1
0

5
ALONE

10
FRIENDS

15
FAMILY

20

25

30

COLLEGUES

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
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 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
REASONS FOR EATING OUT WITH RESPECT OF NATURE OF THE
GROUP OF THE RESPONDENTS OF KFC

An occasion to
celebrate

2
3

I work in this area &

hence decided to
come here

6
2
4

Wanted a break from

home food

1
3

For Snack(Brunch)

4
2
3

For lunch

4
8

3
Wanted an enjoyable
outing with family

6
1

Wanted to get
together with friends

2
40

I was in this area &

hence decided to eat
here

2
3
0
ALONE

10
FRIENDS

15

20
FAMILY

25

30

35

40

45

COLLEGUES

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.

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(7) OTHER FAST-FOOD OUTLETS CONSUMERS VISIT

OTHER FAST-FOOD OUTLETS Mc DONALD'S

CONSUMERS VISIT
32%

27%

3%
3%

3%

8%
4%

Pizza Hut
KFC
Caf Joints

4%

5%

4%

Taste Of India
mfc
Restaurants

Sagar ratna
Dominos
OTHERS

7%

lavaza

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 sagar ratna(7%)
KFC constitutes only 4% of all named outlets

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OTHER FAST FOOD OUTLETS KFC CONSUMERS

VISIT
2%

2%

8%
31%

2%
5%
6%
8%
10%

Mc D
Local
Taste of India

26%

Pizza Hut
Restaurants
Others

Caf Joints
Sagar ratna

Dominos
mfc

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

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Question 8 .Do you get drawn in by the television commercials of the food items?

This question was designed to get an idea about the publicity/advertising strategy of the
KFC. This particular question analyzes the potency of the advertising strategies used in
attracting or influencing the customers. 32 % get influenced by TV commercials

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Question 9.How much does spend on an average per visit?

This question again was concerned with the pricing as well as spending capability of the
people. The results indicated that a major section, i.e. around 52% voted for KFC and
42% for McDonalds.

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CONCLUSION:

KFC is a very strong chain of fast food restaurants with more than 10,000 restaurants all over the
world. KFC is providing employment to 1200 INDIA is an around 6000 INDIA is dependent on
KFC. They are paying Rs. 10 million to government of INDIA as direct taxes. 95% of its food
and packaging material used in KFC produced in INDIA locally which sums up to the purchase
of 35 million per month. Each new outlet developed by KFC in INDIA spends 40 million rupees,
thats a massive amount for this industry.
From all of the above detailed discussion about KFC in INDIA, it is really clear that KFC and
INDIA are growing together. KFC is doing well in INDIA and keeps following its marketing
strategies as a market leader and segmenting the market into different variables and increasing
their market share. KFC is leading in Fried Chicken. It gives quality, variety and fresh meals as
of its competitors.

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Recommendations:
KFC is a market leader in providing Fried chicken. As KFC, so it is competing with the
prominent market signs like pizza hut, McDonalds. N its product category, it is doing really well
but they need improvements in their hot menu. They should also make their menu dynamic, by
introducing new meals after certain period of time. New items should be introduced by varying
the taste. They should also try the local desi taste addressing the desi food lovers, thus it will help
to increase their market share.
The prices of KFC are reasonable as compared with other fast food restaurants. But as price is
always a primary concern for the customer, therefore, they should adopt certain strategy to attract
the customers. And it can only be done by lowering the prices. It could be by introducing some
discount packages for families, employees, students or regular customers. The membership card
can be used to provide certain extra value to the customer. AS far as placement of the products is
concerned, it is an important factor, for a company to increase its market share, by targeting the
right customer. KFC needs to have more outlets, at commercial areas. It will help to target the
actual as well as the potential customers. Mobile outlets may be an effective addition as well.
KFC has large customer equity, but being a market symbol, a company should strive for having
more actual customers. KFC should work for having more solid marketing departments. They
should organize and run the proper advertisement campaign. It would definitely be an
incremental factor for their sales. They can also use the brand promotions. They can set up the
promotional campaigns. All they need is an effective marketing department to facilitate t he
promotional activities.

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BIBLIOGRAPHY
Web Sites
www.kfc.com
www.google.com
www.ask.com
www.wikipedia.com
Magazines
India Today
Business Today
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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