MINOR PROJECT REPORT

On
MARKETING MIX OF KFC

Submitted in partial fulfillment of the requirement of

Bachelors of Business Administration (BBA)
Guru Gobind Singh Indraprastha University,
Delhi

Faculty Guide
Name

Mrs. Siky Gaur

Designation SUPERVISOR

Submitted by:
Name :- Mohit Grover
Enrollment no.:-07214201714

Student Undertaking / Declaration

I herby declare that the Project entitled Marketing mix of KFC has
been done under the Guidance of Mrs. Silky Gaur submitted in
the partial fulfillment of degree of bachelor of business
adminstration3rd semester from JAGANNATH INTERNATIONAL
MANAGEMENT SCHOOL, New Delhi. This is my original work and
this project work has not formed the basis for the award of any
degree to the best of my knowledge.

CONTENTS

S No
1
2
3
4
5
6
7
8
9

Topic
Certificate
Acknowledgements
Chapter-1: Introduction
Chapter-2: Introduction to Company
Chapter-3: Research Methodology
Chapter-4: Data Analysis and Presentation / Study of
Topic
Chapter-5: Finding and Conclusions
References/Bibliography
Appendices

Page No
-

CERTIFICATE

This is to certify that the research projectis the innovative effort of MOHIT
GROVER ROLL NO-07214201714 and it has been accomplished under my
guidance.
Certified that this project report KFC Is the bonafide work of "MOHIT
GROVER who carried out the project work under my supervision.

SIGNATURE
SIGNATURE

MOHIT GEROVER
Mrs. SILKY GAUR

SUPERVISOR

ACKNOWLEDGEMENT

A project can never become a success with efforts of only one individual. It
requires a group of people to complete a project at its best. And its my
friends, my teacher and my family member who have helped me to complete
my project report.
The present work is just an effort to throw some light on KFC. The work
would not have been possible to come to the present shape without the
guidance, supervision and help of number of people.
With deep sense of gratitude I acknowledge the encouragement and
guidance received from Mrs. SILKY GAUR, and other staff members.

I convey my heartfelt thanks to all those people who helped and supported
me during the course, of completion of my Project Report.

CHAPTER 1
CONCEPTUAL DISCUSSION
What is marketing?
The management process through which goods and services move
from concept to the customer. It includes the coordination of
four elements called the 4 P's of marketing:
(1) identification, selection and development of a product,
(2) determination of its price,
(3) selection of a distribution channel to reach the customer's place, and
(4) development and implementation of a promotional strategy.

Marketing is based on thinking about the business in terms of customer

needs and their satisfaction. Marketing differs from selling because (in
the words of Harvard Business School's retired professor of marketing
Theodore C. Levitt) "Selling concerns itself with the tricks and techniques of
getting people to exchange their cash for your product. It is not concerned
with the values that the exchange is all about. And it does not, as marketing
invariable does, view the entire business process as consisting of a tightly
integrated effort to discover, create, arouse and satisfy customer needs." In
other words, marketing has less to do with getting customers to pay for your
product as it does developing a demand for that product and fulfilling the
customer's needs.

MARKETING MIX
The concept is simple. Think about another common mix - a cake
mix. All cakes contain eggs, milk, flour, and sugar. However, you can
alter the final cake by altering the amounts of mix elements
contained in it. So for a sweet cake add more sugar!
It is the same with the marketing mix.
6

The offer you make to your customer can be altered by varying the
mix elements. So for a high profile brand, increase the focus on
promotion and desensitize the weight given to price.
The marketer mixes the prime colours (mix elements) in different
quantities to deliver a particular final color. Every hand painted
picture is original in some way, as is every marketing mix.
MARKETING MIX CONSIST OF 4 ELEMETS
PRODUCT
PRICE
PLACE
PROMOTION

PRODUCT
Instruments that aim at satisfaction of the prospective exchange partys
needs
Examples:

Product

characteristics,

options,

assortments,

packaging,

guarantees, quality, features, style, brand name, size & packaging,

services, warranties/guarantees, returns & replacements
Product

design

can

be

defined

as

the

idea

generation,

concept

development, testing and manufacturing or implementation of a physical

object or service

The brand name is often used interchangeably within "brand",

although it is more correctly used to specifically denote written or
spoken linguistic elements of any product.

In this context a "brand name" constitutes a type of trademark, if

the brand name exclusively identifies the brand owner as the
commercial source of products or services
Titan introduces quartz watches

24 Hour banking & ATMs by banks

Tetra pack cartons for milk, juice

PLACE
Place represents the location where a product can be
purchased.
It is often referred to as the distribution channel. It can
include any physical store as well as virtual stores on
the Internet.
Channels of distribution are the routes through which
the ownership of goods flow on its way from the
producer to the customer
Distributor
Super-stockist
Wholesalers
Retailers
PRICE
The price is the amount a customer pays for the product.

It is determined by a number of factors including market share,

competition, material costs, product identity and the customer's
perceived value of the product.
The business may increase or decrease the price of product if other
stores have the same product.

Target segment- How much the target segment is willing to

pay at different price levels- price elasticity of demand

Cost- How much it costs the firm to produce & market the
product

Competition- Prices of competitors

Society & Law- Within legal framework

PROMOTION

Promotion activities are meant to communicate & persuade the

target market to buy the companys products

This is done by:-

Advertising

Personal selling

Sales promotion- POS

Public Relations

Word of mouth Viral advertising

Promotion

represents

all

of

the

communications

that

marketer may use in the marketplace.

Promotion has five distinct elements advertising, personal

selling, public relations, word of mouth and point of sale.

A certain amount of crossover occurs when promotion uses the

five principal elements together

Advertising covers any communication that is paid for, from and

cinema commercials, radio and Internet adverts through print media
and billboards.

Personal Selling: Face to face personal communication- Eureka

Forbes

In person selling, tele-marketing

Advertising- Mass communication efforts through media

Sales Promotion- Communication through contests, OOH, trade

shows, free samples, yellow pages, call helplines

Publicity- Communicating with an audience by personal or nonpersonal media that are not paid for delivering the message

Print media news, broadcast media news-UTI,PTI, Reuters,

annual reports, speeches by employees
Celebrity endorsement

10

PRINT AD

CHAPTER 2
INTRODUCTION
An overview

of

food industry

The food industry is a complex, global collective of diverse businesses that

together supply much of the food energy consumed by the world population.
11

Only subsistence farmers, those who survive on what they grow, can be
considered outside of the scope of the modern food industry.
The food industry includes:
Regulation: local, regional, national and international rules and

regulations for food production and sale, including food quality and food
safety, and industry lobbying activities

Education: academic, vocational, consultancy

Research and development: food technology

Financial services insurance, credit

Manufacturing: agrichemicals, seed, farm machinery and supplies,

agricultural construction, etc.

Agriculture: raising of crops and livestock, seafood

Food processing: preparation of fresh products for market,

manufacture of prepared food products
Marketing: promotion of generic products (e.g. milk board), new

products, public opinion, through advertising, packaging, public relations,

etc.
Wholesale and distribution: warehousing, transportation, logistics.

Industry size

Processed food sales worldwide are approximately US$3.2 trillion (2004).

In the U.S., consumers spend approximately US$1 trillion annually on food, or

nearly 10 percent of the Gross Domestic Product (GDP). Over 16.5 million
people are employed in the food industry.

12

Food industry technologies

Sophisticated technologies define modern food production. They include many

areas. Agricultural machinery, originally led by the tractor, has practically
eliminated human labor in many areas of production.

Biotechnology is driving much change, in areas as diverse as agrochemicals,

plant breeding and food processing. Many other areas of technology are also
involved, to the point where it is hard to find an area that does not have a direct
impact on the food industry.

Computer technology is also a central force, with computer networks and

specialized software providing the support infrastructure to allow global
movement of the myriad components involved.

Some facts about Indian food industry :

India is the world's second largest producer of food next to China, and has the
potential of being the biggest with the food and agricultural sector. The total food
production in India is likely to double in the next ten years .

Dairy and Food Processing, Specialty Processing, Packaging, Frozen

Food/Refrigeration and Thermo Processing.

Fruits & Vegetables, Fisheries, Milk & Milk Products, Meat & Poultry,
Packaged/Convenience Foods, Alcoholic Beverages & Soft Drinks and Grains
are important sub-sectors of the food processing industry

13

INTRODUCTION TO COMPANY
Fast food chains are amongst the most rapidly globalising businesses in the
world. Kentucky Fried Chicken popularly known as KFC started its Indian
operations in Bangalore, 1995. KFC at that time was on a worldwide
expansion spree, with India being its next market for setting up a string of
outlets.
This Project will broadly look into the entry of KFC in India and its success
and failures of their internationalization process. A booming Indian economy
and millions of the population hungry for consumerism meant that KFC could
expand rapidly into the market to beat their competitors to the punch and
capitalise on such a promising opportunity.

Research Focus
This research focuses on the marketing strategies of KFC and the changing
behaviour of consumers towards KFC. This research focuses on the 4Ps of the
marketing.

Rationale
The reason for choosing KFC as my topic is simply because it is one of the biggest
fast-food giants in the market today. KFC has become synonymous to spicy and
crunchy chicken. Everybody loves it and desires for it.

Objectives

To study the evolution of KFC and its introduction into India

To find out the marketing strategy of KFC

14

The service quality prevailing in KFC

To find out the service quality of KFC in various other areas and find out the
deficiency.

To launch a new product , create its executive summary ,study its financial
projections and to analyze its implementation control.

OVERVIEW OF THE COMPANY

KFC Corporation, based in Louisville, Kentucky, is the worlds most

popular chicken restaurant chain, specializing in Original Recipe , Extra Crispy TM, and
Colonels Crispy Strips chicken with home style sides and five new freshly made sandwiches.
Every day, nearly eight million customers are served around the world. KFCs menu everywhere
includes Original Recipe chickenmade with the same great taste Colonel Harland Sanders
created more than a half-century ago. Customers around the globe also enjoy more than 300
other productsfrom a Chunky Chicken Pot Pie in the United States to a salmon sandwich in
Japan.
KFC continues reaching out to customers with home delivery in more than 300 restaurants in the
United States and several other countries. And in quite a few U.S. cities, KFC is teaming up with
other restaurants, Taco Bell and Pizza Hut, selling nearly fifty years ago; Colonel Sanders
invented what is now called home meal replacement selling complete meals to harried, timestrapped families. He called it, Sunday Dinner, Seven Days a Week.
Today, the Colonels spirit and heritage are reflected in KFCs brand Identity the logo features
Colonel Harland Sanders, one of the best recognized icons in the world.
The name was originally an intitalism for Kentucky Fried Chicken) is a fast food restaurant chain
that specializes in fried chicken and is headquartered in Louisville, Kentucky, in the United
States. It is the world's second largest restaurant chain (as measured by sales) after McDonald's,
with 18,875 outlets in 118 countries and territories as of December 2013. The company is a
subsidiary of Yum! Brands, a restaurant company that also owns the Pizza Hut and Taco Bell
chains
15

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 flavour his chicken
which travellers 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 travelled the United States by car,
cooking chicken for restaurant owners and their employees. If the reaction was favourable
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.
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.

ABOUT KFC LOGO

The colonel has always been a distinctive feature of the KFC logo. His face previously had a
more serious look but over time, it has been made more friendly. The use of red color has
contributed significantly to the bold and lively appearance of the emblem.
16

Shape and Color of the KFC Logo:

The company name Kentucky Fried Chicken was altered to the abbreviation KFC from the
early 1990s an an attempt to retreat from the fatty connotation of the word fried. The KFC logo
signifies the founder of KFC, Colonel Sanders. The company has maintained an outstandingly
consistent visual identity, while preserving the determining components of Colonels face and
accommodating the visual shifts of the fast food industry.

In April 2007, the company unveiled a brand-new logo which displayed the Colonel wearing a
red cooks apron instead of his white suit jacket. The new KFC logo, designed by San Franciscobased Tesser , featuredbrighter colors and a more distinctive and friendlier visage of the founder,
while retaining his definitive black bow tie, glasses and goatee.
The smiling Colonel is displayed against a red background that equates his red apron, with the
company name in black thick inscription below his chin. The emblem has dynamism, depth and
dimension, without falling back to shading, strongly indicating the fact that a wellconducted arrangement of shapes can convey the intended message more directly and clearly as
compared to any detail of shading.

PRESENT SITUATION:
The organization is currently structured with two divisions under pepsico.
David Novak is president of KFC. John hill is chief financial officer and Colin moore is the head
of marketing. Peter waller is the head of franchising , while olden lee is the head of Human

17

resources. KFc ia a part of the two pepsico divisions, which are pepsico worldwide restaurants,
and
Pepsico restaurants International. Both of these divisions of pepsico are based in Dallas.

REASON FOR EMERGENCE:

Gender Roles: gender roles are now changing. Females have started
working outside. So, they have no time for their home and cooking food. Fast
food is an easy way out because these can be prepared easily.
Customer Sophistication and Confidence: consumers are becoming
more sophisticated now. They do not want to prepare food and spend theirtime and energy in
house hold works. They are building their
confidence more on ready to eat and easy to serve kind of foods.
ACHIEVEMENTS:
KFC is one of the most renowned world gastronomic brand names. Kentucky Fried Chicken
products are currently offered in 80 countries worldwide and in more than 11,000 restaurants
which are visited on daily basis by almost 8 million customers. Globally, KFC employs
approximately 290,000 people, Worldwide, a new KFC restaurant is opened almost every day.
In 2004 the KFC Excellent range - three types of salad (Caesar, Gardenand Mandarin)
obtained the prize for Worldwide Best Practice Award2004 in the category of best product and
best marketing campaign and its implementation in the restaurants. This prize is distributed each
year by YUM Restaurants International. According to the ratings for Most expensive world
brands 2004 conducted by the American weekly Business Week, KFC was positioned 54th
place; currently valued at 5.1 BILLION USD.

PROBLEMS OF THE ORGANISATION

From the very first day of opening its restaurant, KFC faced problems in the form of protests by angry
farmers led by the Karnataka Rajya Ryota Sangha (KRRS).

The farmers leader, Nanjundaswamy, who led these protests, vehemently condemned KFC's entry into
India, saying that it was unethical to promote highly processed 'junk food' in a poor country like India
with severe malnutrition problems.

18

Nanjundaswamy expressed concern that the growing number of foreign fast food chains would deplete
India's livestock, which would adversely affect its agriculture and the environment. He argued that nonvegetarian fast-food restaurants like KFC would encourage Indian farmers to shift from production of
basic crops to more lucrative varieties like animal feed and meat, leaving poorer sections of society with
no affordable food. KRRS held a convention on November 01, 1995 to protest the entry of fast food
multinationals and the Westernization of local agriculture..
PepsiCo also decided to concentrate on the expansion of KFC since its other brand, "Pizza Hut", had
successfully established a strong foothold in India.
Vegetarianism was predominant and was a way of life in India. Many people ate non-vegetarian food
only occasionally and avoided it during festivals or religious occasions...

Competitive analysis
MARKET SIZE & MAJOR PLAYERs

A) Dominated by McDonalds having as many as 75 outletS.

B) Dominos pizza is present in around 100 locations
C) Pizza hut is also catching up and it has planned to establish 125 outlets at the end of
2005.
D) Subways have established around 40 outlets.
E) Nirulas is established at Delhi and Noida only. However, it claims cater, 50,0000 guests
everyday.

Competitors
You cannot enjoy the business without competitors. No organization can afford to ignore their
competitors. It is very important for a marketing manager to monitor the activities of their
competitors, what they are doing? KFC adopted such sort of strategy that there is no competitor
for spicy chicken, which is made by KFC.
KFC beats its competitors through the revising marketing strategy at every movement but the
main competitor of KFC is McDonald
19

COMPETITIVE ADVANTAGE
McDonalds

KFC

Spicy Products
Burgers and French Fries
Indians like spicy products instead of boiled
food
Chicken Thali and Zinger

Big Mac

Chicken is eaten by most communities

Beef is banned in India

Local Staff and Highly Qualified because Its Staff consist of simple Graduates and
local staff can better deal
give them training
with the customers
KFC uses Top to Bottom and Bottom to
Top Approach in Management.

McDonalds Uses Top To Bottom

Approach.

Fast food is one of the worlds largest growing food type. Indias fast foodindustry is growing by
40% a year and is expected to generate a billiondollars in sales by 2005.The multinational
segment of Indian fast food industry is up to Rs. 6 billion, a figure expected to zoom to Rs.70
billion by 2005. By 2005, the value of Indian dairy products is expected to be Rs.1,00,000
million. In last 6 years, foreign investment in this sector stood at Rs.3600 million which is about
20

one-fourth of total investment made in thissector. Because of the availability of raw material for
fast food, Global chainsare flooding into the country.

S.W.O.T ANALYSIS

The S.W.O.T analysis includes the strengths, weaknesses, opportunities and threats faced by
KFC . These all are described in detail as under:
STRENGTHS
GOOD WILL AND REPUTATION : The Company certainly has earned a good name and
reputation by its previous products and services in the market. It is even more recognised in other
markets outside India, where the company is among the leading fast food giants. The brand is
recognised and trusted in India for its quality products, price, and customer service. It therefore
has a good head start and enjoys a good chance of becoming a leader in Indian fast food industry.
Employee Loyalty: Employee Loyalty is one of the major strengths of KFC. The turnover rate in
the company is amongst the lowest in the industry.
Despite gain by Boston Market and Chick-fill A, KFC customer base remained loyal to
Customer Loyalty the KFC brand because of its unique taste. KFC has continued to dominate
the dinner and take out segment of the Industry.
Ranks highest among all chicken restaurant chains for its convenience and menu variety. It
generates $1B revenue each year.

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WEAKNESSES

KFC was losing market share as other Chicken chain increased sales at a faster rate.
KFC share of Chicken Segment sales fell from 71 percent in1999, to less than 56 percent in 2009,
a 10 years drop of 15 percent.
There is huge competition in this segment.
India is still mostly a vegetarian dominated cultured society. South India is especially very
much so. This may reduce the market share of the company.
KFC has not yet invested much on R&D, and innovating new products for Indian Markets. This
may lead to failure of their products as they are not in line with the Indian mind set, peoples taste
and preferences and their likes and dislikes. This may prove fatal for the company.

OPPURTUNITIES
New Markets: Globalisation has opened doors for new markets for the company. As the
developed markets are mostly saturated, the developing countries like India and China promises
a good market and generation of demand in the future. With more than 70% of the markets in
India being unexplored and un organised, KFC has a good scope of expanding its operations in
the country.
Cross Culture: Generally there is a good acceptance of American culture of fast food in India.
People are opening up to fast foods more regularly in their daily lives and not just keeping it a
once in a month affair. Thus Indian mindset is fast changing.
Large Youth population: India has a very large share of youth population a compared to other
countries. More than 60% of the population is under the age of 30yrs. As the young generation
are more open to fast foods and demand it more, this is good news for the company.
New variety: Company can also come up with new variety in the menu like Pizzas, garlic breads
to attract more customers.

THREATS
Competition: Competitor companies like McDonalds are fast catching up with the market.
McDonalds with sales of more than 19 billion in 1999, accounted for 15 percent of the sales of
the nations top 100 restaurant chains.
Organisations like PETA People for Ethnic Treatment for animals have given a bad name to the
company which may prove disastrous to the image of the firm. Currently, KFC is under massive
attacks from animal organisations, questioning the way KFCs suppliers are threatening the
chicken, before they got slaughtered. Anti-KFC campaigns, such as the one from PETA are
22

affecting KFCs brand image in a negative way and result in direct dollar losses, as less people
are consuming KFC chicken.

CHAPTER 3
RESEARCH METHODOLOGY
OVERVIEW OF THE PROJECT

(The name was originally an intitalism for Kentucky Fried Chicken) is a fast food restaurant
chain that specializes in fried chicken and is headquartered in Louisville, Kentucky, in the United
States. It is the world's second largest restaurant chain (as measured by sales) after McDonald's,
with 18,875 outlets in 118 countries and territories as of December 2013. The company is a
subsidiary of Yum! Brands, a restaurant company that also owns the Pizza Hut and Taco Bell
chains. KFC was founded by Harland Sanders, an entrepreneur who began selling fried chicken
from his roadside restaurant in Corbin, Kentucky, during the Great Depression. Sanders
identified the potential of the restaurant franchising concept, and the first "Kentucky Fried
Chicken" franchise opened in Utah in 1952. KFC popularized chicken in the fast food industry,
diversifying the market by challenging the established dominance of the hamburger. By branding
himself as "Colonel Sanders," Harland became a prominent figure of American cultural history,
and his image remains widely used in KFC advertising. However, the company's rapid expansion
saw it overwhelm the ageing Sanders, and in 1964 he sold the company to a group of investors
led by John Y. Brown, Jr. and Jack C. Massey. KFC was one of the first fast food chains to
expand internationally, opening outlets in the United Kingdom, Mexico, and Jamaica by the mid1960s. Throughout the 1970s and 1980s, KFC experienced mixed fortunes domestically, as it
went through a series of changes in corporate ownership with little or no experience in the
restaurant business. In the early 1970s, KFC was sold to the spirits distributor Heublein, who
were taken over by the R.J. Reynolds food and tobacco conglomerate, who sold the chain to
PepsiCo. The chain continued to expand overseas however, and in 1987 KFC became the first
Western restaurant chain to open in China. The chain has since expanded rapidly in China, which
23

is now the company's single largest market. PepsiCo spun off its restaurants division as Tricon
Global Restaurants, which later changed its name to Yum! Brands. KFC's original product is
pressure fried chicken pieces, seasoned with Sanders' recipe of 11 herbs and spices. The
constituents of the recipe represent a notable trade secret. Larger portions of fried chicken are
served in a cardboard "bucket," which has become a well known feature of the chain since it was
first introduced by franchisee Pete Harman in 1957. Since the early 1990s, KFC has expanded its
menu to offer other chicken products such as chicken fillet burgers and wraps, as well as salads
and side dishes, such as French fries and coleslaw, desserts, and soft drinks, the latter often
supplied by PepsiCo. KFC is known for the slogan "finger lickin' good," which has since been
replaced by "Nobody does chicken like KFC" and "So good.

Product:
The first and then most important thing that a company need to have is the P, Product. A product is
anything that can be offered to a market that might satisfy a want or a need. KFCS product planning is
classified as consumer product as it has no intermediate. It offers special goods in different occasions. For
instance- when stock market fails or recession breaks out. The product quality & the price are same all
around the world. KFCs product includes goods such as chicken, burgers etc. and services such as
24

cleanliness, quick service and parties. It also offers special goods for the people of different regions. Now
it has introduced the idea of HALAL CHICKEN for the Muslim community. List of some products
offered by KFC are-

Streetwise: Veg Snacker, Chicken Snacker, Snack Box, Rizo Rice, Rizo Gravy
Snacks: Popcorn Chicken, Hit Wings, Boneless chicken strips
Veggie Selection: Veg Snacker, Veg Zinger, Veg Strip with Salsa, Toasted Wraps
Burger: Veg Zinger, Chicken Zinger, Tower Zinger, Box Meal
Chicken Delight: Fiery Grilled, Hot and Crispy, Original Recipe, Bucket Chicken
Signature sides: Corn on the cob, Coleslaw, Fries
Krusher: Frappe, Iced Mochaccino, Iced Kappucino
Desserts: Soft wirl, Choamor, Brownie Sundae
Price:
The second P from 4Ps is the Price. Price is the any amount of money that customers have to
pay while purchasing the products. At the beginning stage KFC entered the market using marketskimming strategy. Their products were high price and targeted only to the upper class
community. But now have reduced the price of their product targeting all community level to
penetrate the market. The political and legal forces often affects the policies of KFC and
eventually results in change of price that is due to imposing of taxes. We can compare the
products price of KFC with other brands as well. If the competitors provides the same product at
a lower price then the organization usually lower the price of its product too.
KFC follows both optional pricing and mixed bundling pricing. A consumer can buy dishes from
the basic menu and go for add-ons (Optional pricing) and there are combo offers which comprise
a mix of items. They also offer a specific price range. For instance 40~1000 tk. KFC has variety
of options in each category. For example- In Bucket, there are menus with 8pcs, 12pcs and also
12pcs variety bucket (Hot & Crispy Original Recipe and Chicken Strips).

25

Place:
The third P is the Place. Place refers to how the product gets to the consumer. It is also called as
placement, referring to the channel by which a product or service is sold either online or retail,
which geographic region, to which segment either young, adults, families, business people etc.
KFC has only one channel distribution. Its only distributing its product directly to the consumer
and no need of middleman. KFC also does distribution of services to the consumer like parking,
sitting etc. KFC place their outlets in strategic areas such as college, schools, offices urban places
or any other market are mostly populated by youngsters and some adults. They place it
strategically so that KFC can pleasure their consumers with their products. As a result of their
intelligent target market they get a large number of customers every day. In addition KFC also
have many outlets in one district.

26

Promotion:
The last P is Promotion. Promotion is the method to inform and educate the chosen target
audience about the organization and its product. KFC promotion strategy is the logo itself. 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. The logo of the smiling Colonel is probably one of the most
recognized faces in the world and instantly brings the image of fried chicken to ones mind.
Today the Colonels spirit and heritage are reflected in KFCs brand identity. There are several
ways KFC promote its product. KFC finds most of the meanings and survival through
promotions. Promotion is the main tool to bring all chicken lovers attention toward KFC.
Advertising is the most fundamental way KFC promote its products. KFC, by its advertisements
derives the desire in their customer to come and enjoy their meal. KFC spend 2% out of its
profits on advertisement and use print media and most recently doing internet advertisements
marketing to promote their products. The advertising media involve newspaper, pamphlets,
billboards, television, radio and internet. KFC also do institutional advertising to stimulate
demand. When KFC offers new product then it does product advertising. They also offer
different deals according to the season and occasions. They also sponsor different events, NGOs
& different social welfare organizations. KFC is currently the sponsor of the Australian Cricket
Team.

Objective of the study

27

 To study the evolution of KFC and its introduction into India

To find out the marketing strategy of KFC
The service quality prevailing in KFC
To find out the service quality of KFC in various other areas and
find out the deficiency.
.

DATA SOURCES
The collection of data that is accumulated by conducting research when attempting to determine
the demographics and lifestyles of a particular area.
DATA SORCES ARE OF TWO TYPES :PRIMARY DATA
SECONDARY DATA

Primary data
Primary research consists of a collection of original primary data collected by the researcher. It
is often undertaken after the researcher has gained some insight into the issue by reviewing
secondary research or by analyzing previously collected primary data.

METHODS OF COLLECTING PRIMARY DATA ARE :

OBSERVATION METHOD
Through personal observation
PERSONAL INTERVIEW
Through Questionnaire
TELEPHONE INTERVIEW
Through Call outcomes, Call timings
MAIL SURVEY
Through Mailed Questionnaire

SECONDAY DATA

Data gathered and recorded by someone else prior to and for a purpose other than the
current project
28

Secondary data is data that has been collected for another purpose.
It involves less cost, time and effort
Secondary data is data that is being reused. Usually in a different context.

SOURCES

INTERNAL SOURCES
Internal sources of secondary data are usually for marketing applicationSales Records
Marketing Activity
Cost Information
Distributor reports and feedback
Customer feedback

EXTERNAL SOURCES
External sources of secondary data are usually for Financial applicationJournals
Books
Magazines
Newspaper
Libraries
The Internet
Data Collection Flow

29

In this Project Secondary data has been adopted.

In India, system sales increased 14%* for the year and we sustained a strong pace of
development, with 156 new restaurants. While we are outperforming the category in India,
macroeconomic conditions weighed on our overall results. Yum! India President Niren
Chaudhary is using this opportunity to strengthen our positioning with consumers as well as our
business model. This will set us up for success in a country which is expected to become the
largest consumer market in the world.
*India system sales growth excludes Mauritius from the prior year amounts and the impact of
foreign currency translation to enhance comparability.

30

U.S.

CHAPTER 4
ANALYSIS OF THE TOPIC
MARKETING STRATEGIES OF KFC
There are different strategies adopted by KFC for different events. They market their products on different
events and in different activities as they are helping SOS village.

31

According to KFC, kids become the future permanents customers and we know very well that without
any marketing strategy no marketing program and no product is successful because we depend upon
customers, customer not depend on us.

KFC is following Niche Marketing and Societal Marketing techniques.

KFC possess a western culture because some of the Indian people are also following that culture.
KFC are moving from Divisional Level to the District level by opening branches
KFC open their outlets on reachable places.
KFC menu consists of more than 30 products.
KFC gives more priority to Family.

MARKETING Mix
The marketing mix is generally accepted as the use and specification of the four Ps describing the
strategic position of a product in the market place.

Product (goods and service)

Price (value of the product)
Promotion (aware the people for product)

Place (distribution of product

32

The marketing mix of KFC consists of 4Ps. It contains everything KFC do it to influence the demand for
their products.

1. PRODUCT:
A product is anything that can be offered to a market that might satisfy a want or need.

KFC product planning

KFC product is classified as consumer product as it has no intermediates.

KFC offers specialty goods.
The stock turnover of KFC is high.
Price and quality of the product is always compared.
KFCs product includes
Goods (Burgers, Chicken Meals etc)
Services (cleanliness, quick service, parties)

Product:
The first and then most important thing that a company need to have is the P, Product. A
product is anything that can be offered to a market that might satisfy a want or a need. KFCS
product planning is classified as consumer product as it has no intermediate. It offers special
goods in different occasions. For instance- when stock market fails or recession breaks out. The
product quality & the price are same all around the world. KFCs product includes goods such as
chicken, burgers etc. and services such as cleanliness, quick service and parties. It also offers
special goods for the people of different regions. Now it has introduced the idea of HALAL
CHICKEN for the Muslim community. List of some products offered by KFC are-

Streetwise: Veg Snacker, Chicken Snacker, Snack Box, Rizo Rice, Rizo Gravy
Snacks: Popcorn Chicken, Hit Wings, Boneless chicken strips
33

Veggie Selection: Veg Snacker, Veg Zinger, Veg Strip with Salsa, Toasted Wraps
Burger: Veg Zinger, Chicken Zinger, Tower Zinger, Box Meal
Chicken Delight: Fiery Grilled, Hot and Crispy, Original Recipe, Bucket Chicken
Signature sides: Corn on the cob, Coleslaw, Fries
Krusher: Frappe, Iced Mochaccino, Iced Kappucino
Desserts: Soft wirl, Choamor, Brownie Sundae
BRAND:
There are three brands of the KFC:
1) Taco bell
2) Pizza Hut
3) Long john silvers
KFC has introduced a new product Veg Zinger. It is new in the market and hasnt been
launched in all the outlets. Their tagline for this new product is Living on the Veg. KFC is
trying so hard to convince people that it is not 100% non-veg; but also 100% veg.

Product mix strategy

The product mix strategies are in relation to:
34

Competitors:
KFC has a head-on competition with McDonalds. Wherever they place
their products; KFC goes there as well.
Attributes:
The brand of KFC is so strong that it is the attribute itself.
Place and Quantity:
KFC products are based on high quality and prices.

Brand of KFC
Brand Name: KFC
Colour: Red and 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's brand identity -- the logo features Colonel Harland Sanders, one of the best
recognized icons in the world.
KFC is trademarked registered brand.
It is distinctive, adaptable to addition to product line.
It suggests something about product.
It is legally protected and registered
The brand equity is very high as the value added by brand to the product effects the
product selling.
KFC is marketing the entire output under products own brand

PACKAGING
The packaging for KFC products is chosen according to performance against three key criteria:
Heat Retention
Moisture removal
35

Grease absorption
The packaging material and carton design are all adapted to maximise performance against these three
criteria.

Recycled Paper
KFCs clamshells and chicken boxes contain as much recycled material as it is legally allowed. By law
they are required to have virgin fibre board in any part of the packaging that is in contact with food. Any
virgin fibre comes from board suppliers who use pulp bought from managed forest in Scandinavia. This
ensures that any wood cut for paper production is replaced with new plantings.

Environmental concerns
Over and above ensuring KFCs packaging is supplied via recycled or renewable resources; KFC are
enthusiastically complying with the new environmental directives on recovery and recycling of packaging
waste.

PRICE
Price is the any amount of money that customers have to pay while purchasing the product. More
broadly, price is the sum of all the values that consumers exchange for benefits of having or
using the product or services
Price strategies of KFC
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.
Price competition
We can compare the price of KFC products with McDonald, Dominoes and Pizza Hut. If the
competitor provides the same product at a lower price than the organization usually lowers the
price of its product too. In the case of KFC, Fried Chicken is its main selling point and controls a
monopoly over the Pakistan fast food market. It-prices its burgers, French fries and soft drinks.

Cost Based pricing

KFC prices their product keeping different points in view.

They adopt the cost base price strategy.
Pricing of the product includes the govt. tax and excise duty and then comes the final stage of
determine the price of their product.
The products are bit high priced according the market segment and it is also comparable to
the standard of their product.
In the cost based method we include the variable and fixed cost.
36

Calculation of the price under Cost Based Pricing Strategy

Total Pounds of Chicken Served in KFC Restaurant Annually = 1.914 Billion

PLACE
This refers to how the product gets to the customer; for example, point-of-sale placement or
retailing. This third P has also sometimes been called Placement, referring to the channel by
which a product or service is sold (e.g. online vs. retail), which geographic region or industry, to
which segment (young adults, families, business people), etc. also referring to how the
environment in which the product is sold in can affect sales.
KFC distribution
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 goods and services
KFC does distribution of consumer goods directly to the consumer.
Target areas
Accessibility Resulting in several outlets to cater to the needs of people in & around the city.
Hectic lifestyle Due to the hectic lifestyle of office goings individuals the fast food concept
saves time of preparing food and gives the customer a full meal quickly.
Commercialization of urban and sub-urban markets leading to more mid-sector people that find
high-end eating joints too expensive. Mid-sector people are always looking for change which
KFC provides in their range of fast food.
Quality conscious people in urban areas are more conscious about the quality of food than rural
areas.
Urban areas are more populated therefore they help with attracting higher revenues.
Placement of outlets
Due to KFC placing itself close to schools, colleges, cinemas and markets which are mostly
populated by the young and those who are in a hurry, KFC enjoys a large number of footfalls
every day.
CHANNEL PROCESS
KFC works on the flow of good operation techniques i.e. Good Operating Manager leads to
Good Team Selection Good Services Good Targets Good Revenues through the
following internal strategies:
Training
Incentive based targets
Recognition for good work
37

Performance based bonus

Employee benefits to keep them motivated
Promotion

Vertical marketing system

KFC has corporate vertical marketing system because it is centrally owned by its subsidiary Yum
Brands. KFC is affected by the geographic distribution (they have few outlets then its competitor
McDonalds). The unit value of the items is comparatively lower then McDonalds. KFC has a
well-equipped sitting area for the customers and a Chicky play area for the kids.
Conclusion

KFC deals in internal market.

Target only city areas
KFC has well equipped sitting.
KFC has no intermediaries.
Well trained staff with expert supervisors.
Seeking customers response for quality.
KFC has no entertainment in some franchises.
Quality conscious people are the main target of KFC.

Promotion:
Promotion is the method used to inform and educate the chosen target audience about the
organization and its products. Using all the resources of promotion
KFC promotion strategy
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. The logo of the smiling Colonel is probably one of the most
recognized faces in the world and instantly brings the image of fried chicken to ones mind.
Today the Colonels Spirit and heritage are reflected in KFCs brand identity.
KFC promotion sources
Advertising
Sales Promotion
Public Relations
Events and Experiences
Coupons, Discounts and Bundled packages
An organization finds most of its meanings and survival through promotion. At KFC, Promotion
is the main tool to bring all chicken lovers attention towards its delicious one of- a-kind.

38

Advertising

KFC by its advertisements derives the desire in the customer to come and enjoy healthy
food in their favourite restaurant.
They spend 2% of its profits on advertisement and 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).
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.
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 colours used in advertising are Red, White and blue which itself is recognition for
the brand.

Sales promotion
For the sales promotion KFC introduced their goods like watches, keychain and so on to the
customers.

39

The company is slowly expanding across the African continent, opening 70 outlets, but progress
has been hampered by sourcing issues, such as a lack of quality suppliers.

ON THE GROUND FLOOR OF GLOBAL GROWTH

Yum! Brands have an international franchise infrastructure of 1,000 franchisees, with 40% of
our international restaurants owned by franchisees who operate more than one of our brands. We
have focused equity in key countries, and are growing in emerging markets with our franchisees
who are investing in the business and generating significant royalties for Yum!. Our divisions
are diversified with a strong presence in developed markets, a lead in many emerging markets,
and global brand control. Our 100% focused teams are now organized to deliver growth and
champion our culture. We also drive know-how sharing across both geographic and brand
borders. And with our massive scale, we have supply chain purchasing advantages and an ability
to create big career opportunities for top talent. Going forward we will further leverage the
power of Yum!.

2014 FINANCIAL HIGHLIGHTS

(In millions, except for per share amounts)

Year-end

2014

2013

% B/(W) change

$11,324

$11,184

1,955

1,900

$13,279

$13,084

Operating Profit

$1,557

$1,798

(13)

Net Income - Yum! Brands, Inc.

$1,051

$1,091

(4)

Company sales
Franchise and license fees and income
Total revenues

40

Diluted Earnings Per Common Share before Special Items (a)

$3.09

$2.97

Special Items Earnings Per Common Share (a)

(0.77)

(0.61)

NM

Reported Diluted Earnings Per Common Share

$2.32

$2.36

(2)

$2,049

$2,139

(4)

Cash Flows Provided by Operating Activities

(a) See our 2014 Form 10-K for further discussion of Special Items.

WORLDWIDE SYSTEM UNITS

Year-end

2014

2013

2012

2011

2010

Company

8,664

8,097

7,544

7,403

7,238

757

716

660

587

525

30,032

29,305

28,565

26,887

26,178

2,093

2,115

2,168

2,169

2,186

41,546

40,233

38,937

37,046

36,127

Unconsolidated Affiliates
Franchisees
Licensees
Total

2014

2013

2012

2011

2010

4-Year
Compound
Annual
Growth
Rate

KFC Division

14,197

13,904

13,612

13,450

13,418

1%

Pizza Hut Division

13,602

13,333

13,060

12,725

12,583

2%

Taco Bell Division

6,199

6,048

5,977

5,942

5,894

1%

Year-end

41

CHINA
KFC

4,828

4,563

4,260

3,701

3,244

10%

Pizza Hut

1,572

1,264

987

764

642

25%

291

389

451

--

--

NA

24

27

28

28

20

5%

6,715

6,243

5,726

4,493

3,906

15%

KFC

395

341

260

186

128

33%

Pizza Hut

431

359

299

247

196

22%

Taco Bell

37%

833

705

562

436

326

26%

41,546

40,233

38,937

37,046

36,127

4%

Little Sheep
East Dawning
Total China
INDIA

Total India
Total

Globally our KFC business model is incredibly strong. I love the combination of being the
emerging markets leader, being franchise led and having a line of sight to double-digit operating
profit growth well into the future. KFC delivered a strong year of system sales growth led by
emerging markets like Russia, Africa and Thailand and international developed markets like the
UK, Continental Europe and Australia. Demonstrating its global power as an iconic brand, KFC
set a new record for international development and opened nearly 670 restaurants. The new news
for KFC is the U.S. business is performing much better. The KFC U.S. business grew same-store
sales 6% in the 4th quarter and is poised for its best year in some time. All of this sets up the KFC
division for a solid 2015.
As strong as the global business is, I know it can be even better. Our assets are
underleveraged.Were going to remedy this by expanding operating hours, leveraging digital and
strengthening the core. We also expect the recent improved performance in the U.S. to continue.

42

Micky Pant, our KFC CEO, deserves a lot of credit for breakthrough leadership of this iconic
brand. And with its brand positioning of Always Original, Im confident the best is yet to come.

Nutrition Analysis
NABL accredited and ISO 17025 certified laboratories shows trans fat per portion is not
detected.
Fat (g)
Product
Name

Average Energy Carbohydrat Protei Total

Sodiu
Sat.
MUFA
PUFA
Trans
Portion (kcal)
e (g)
n (g) Fat
m (g)
Fat
(g)
(g)
Fat (g)
(g)
(g)

Veg products
Alphonso
Burst (Reg)
Brownie
Blast (Reg)
Brownie
Sundae

338 g

393.43 52.73

22.82

10.14 2.37

0.34

7.44

287 g

380.13 75.14

5.63

6.34

1.84

0.46

4.05

215 g

479.0

71.06

8.99

17.65 4.43

1.68

11.55

150 g

419.4

45.78

6.69

23.28 8.415

4.635

Cheezy
Crunch
Burger

Not
Detected
Not
Detected
Not
Detected

10.2 Not
3

Detected

0.10
0.15
0.24

0.861

43

Cheezy
Crunch Wrap
Chocolash
Chocopeanut
Bolt (Reg)

110 g

252.51
6

30.569

3.751

12.804 4.411

2.629

5.76 Not
4

302 g

402.6

52.25

11.02

16.61 4.23

0.91

11.48

320 g

496.00 66.88

11.20

20.48 8.00

3.84

8.32

Detected

0.6391

Not
Detected
Not
Detected

0.20

The chicken is transported, distributed and stored under temperature controlled conditions.
Further, at stores it is marinated at the right temperature. The chicken is cooked at temperature
above 170 deg C and is kept at temp around 60 Deg C, so that it is served hot.
Food at KFC is always so good because our chefs cook it fresh, several times a day.
We have zero added trans fat in all our products at KFC. The nutrition analysis of our products
done by internationally recognized,
NABL accredited and ISO 17025 certified laboratories shows trans fat per portion is not
detected.

KFC FOOD FACT

We buy chicken from trusted suppliers, who meet international safety norms. So what you
bite into is nothing but the best.

We use 100% real whole muscle chicken because 99.9% does not taste the same

The chicken is transported, distributed and stored under temperature controlled conditions.
Further, at stores it is marinated at the right temperature. The chicken is cooked at
temperature above 170 deg C and is kept at temp around 60 Deg C, so that it is served hot.

In India, system sales increased 14%* for the year and we sustained a strong pace of
development, with 156 new restaurants. While we are outperforming the category in India,
macroeconomic conditions weighed on our overall results. Yum! India President Niren
Chaudhary is using this opportunity to strengthen our positioning with consumers as well as our
business model. This will set us up for success in a country which is expected to become the
largest consumer market in the world.

44

*India system sales growth excludes Mauritius from the prior year amounts and the impact of
foreign currency translation to enhance comparability.

U.S.

China
KFC is the largest restaurant chain in China, with 4,563 outlets.[1] KFC became the first Western
fast food company in China after its first outlet opened in Qianmen, Beijing, in November 1987.
Local food items include rice congee and tree fungus salad, with an average of 50 different menu
items per store.
n July 2014, Chinese authorities closed down the Shanghai operations of the OSI Group, amidst
allegations that it had supplied KFC with expired meat.[64] Yum! immediately terminated its
contract with the supplier, and stated that the revelation had led to a "significant [and] negative"
decline in sales

45

Africa

KFC restaurant in Ilorin, Kwara, Nigeria

The company hopes to expand its African operations, where it is already the regional
leader among US fast food chains.[48][49] The company is slowly expanding across the
African continent, opening 70 outlets, but progress has been hampered by sourcing
issues, such as a lack of quality suppliers.

United Kingdom

A KFC in Belfast, Northern Ireland

As of December 2013, there were 784 KFC outlets in the United Kingdom.British turnover was
around 684.5 million in 2013, according to Technomic About 70 percent of outlets are run by
franchisees, with the remainder company owned.The company employs 24,000 people. ] Around
400 sites are drive-through outlets.[89] Average outlet turnover is between 1 and 1.5 million.

46

Australia
Yum! directly operates 160 KFC outlets in Australia.[119] The largest of the 53 independent
franchisees in Australia is Collins Foods, which operates 169 stores.[119][120] KFC's major poultry
suppliers in Australia are Inghams, Steggles and Turi Foods.[119]
The first Australian KFC was opened in 1968 in Guildford, a suburb of Sydney.[121] The franchise
was owned by a Canadian entrepreneur called Bob Lapointe.[122] Between 1970 and 1971, 75
outlets were opened.[122] This had a major impact on Australian chicken production, which
increased by 38 percent during the period.[122] By 1995 there were 452 outlets, and the company
employed 12,000 staff.[121] That year, Australia produced 35 percent of KFC's international
earnings.[121]

India

KFC outlet on Middleton Row inKolkata.

47

KFC in Polayathode, Kollam city. This is one of the largest KFC stores inKerala state, India
In December 2013, there were 361 KFC outlets in India.[1] As well as the standard KFC
offerings, the chain sells a chickpea burger, apaneer burger, hot wings with chilli lemon sprinkles
and other country-specific products.[66][67] A major franchise holder is QSR Brands (M) Holdings,
which operated 26 outlets as of 2012.[68]
The first Indian KFC was a two-storey outlet on the fashionable Brigade Road in Bangalore in
June 1995.[69] According to journalistMichael White, the company could not have chosen a "more
difficult venue for its maiden entre into the country".[70] Bangalore housed the headquarters of
the Karnataka Rajya Raitha Sangha, one of the most influential, vocal and anti-foreign
investment farmers' associations in the country.[70] The first outlet suffered protests from left
wing, anti-globalisation and environmental campaigners, as well as local farmers, who objected
to the chain bypassing local producer

CHAPTER 5
OBSERVATIONS

. KFC has surpassed its own bold goal this year, raising $40 million in cash and food
donations for the United Nations World Food Programme and hunger relief agencies.
Since 2007, our efforts have raised $600 million in cash and food donations resulting
in 2.4 billion meals going to people in need.

48

Kentucky, in the United States. It is the world's second largest restaurant chain (as
measured by sales) after McDonald's, with 18,875 outlets in 118 countries and territories
as of December 2013.

The company is a subsidiary of Yum! Brands, a restaurant company that also owns
the Pizza Hut and Taco Bell chains.

KFC had sales of $23 billion in 2013.[3]

According to the finanacial report 2014 there has been substantive progress in total sales
of the products from $11,184 to $11,324 millions

Japan is the third-largest market for KFC after China and the United States with 1,200
outlets.

The company is slowly expanding across the African continent, opening 70 outlets, but
progress has been hampered by sourcing issues, such as a lack of quality suppliers.

KFC have now 335 restaurants in more than 100 cities.

CONTROVERSIES AND CRITICISM!

Since the turn of the 21st century, fast food has been criticised for its animal welfare
record, its links to obesity and its environmental impact.
49

Eric Schlosser's book Fast Food Nation (2002) and Morgan Spurlock's film Super Size
Me
(2004) reflected these concerns.
Since 2003,People for the Ethical Treatment of Animals (PETAhas protested KFC's
choice of poultry suppliers worldwide.
The exception is KFC Canada, which signed an agreement pledging to only use "animal
friendly" suppliers.
PETA have held thousands of demonstrations, sometimes in the home towns of KFC
executives, and CEO David Novak was notably soaked in fake blood by a protester .
President of KFC's US division Gregg Dedrick said PETA mischaracterized KFC as a
poultry producer rather than a purchaser of chickens.
In 2008, Yum! stated: "[As] a major purchaser of food products, [Yum!] has the
opportunity and responsibility to influence the way animals supplied to us are treated. We
take that responsibility very seriously, and we are monitoring our suppliers on an ongoing
basis."
In 2006, Greenpeace accused KFC Europe of sourcing the soya bean for its chicken feed
from Cargill, which had been accused of clearing large swathes of the Amazon rainforest
in order to grow the crop.
In May 2012, Greenpeace accused KFC of sourcing paper pulp for its food packaging
from Indonesian rainforest wood.
Independent forensic tests showed that some packaging contained more than 50 percent
mixed tropical hardwood fiber, sourced from Asia Pulp & Paper (APP).
APP said such fiber can be found in recycled paper, or: "It can also come from tree
residues that are cleared, after a forest area has become degraded, logged-over or burned,
as part of a sustainable development plan. APP has strict policies and practices in place
to ensure that only residues from legal plantation development on degraded or loggedover forest areas and sustainable wood fiber enters the production supply chain."
KFC said: "From a global perspective, 60 percent of the paper products that Yum! (our
parent company) sources are from sustainable sources. Our suppliers are working towards
making it 100 percent."
In December 2012, the chain was criticized in China when it was discovered that a
number of KFC suppliers had been using growth hormones and an excessive amount of
antibiotics on its poultry in ways that violated Chinese law.

RECCOMENDATIONS
KFC is a market leader in providing Fried chicken. As KFC, so it is competing with the
dominant 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
50

introducing new meals after certain period of time. New items should be introduced by varying
the taste. They should also try the local taste addressing the local 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 the promotional activities

Conclusion
After our research of KFC, I come to conclusion that KFC has a good product as far as chicken
items are concerned. But they have to increase other varieties to attract the customers. And they
must targets the children, as McDonalds targeting by making a play land because children are
the main source and important ones to push their parents to go to their favourite restaurants. And
51

one more aspect for KFC is that it must also reduce their prices to compete their competitors like
McDonald,
Crisps Pins and Pizza Hut. The largest threat KFC is faced with is the restaurant industry as a
whole. The consumer continues to have many choices when it comes to fast food restaurants.
KFC struggles are much do to the inability to bring new products to the market quickly and its
innovation of new products. KFC fell behind the market in new products and was copying other
fast food chains to stay competitive.

BIBLIOGRAPHY
Marketing Management: Analysis, Planning Implementation & Control 9th Edition 1998,
Prentice Hall of India Ltd., New Delhi

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Magazines, Journals & Newspapers: Name of article - Business Today,

22 May, 2007 Name of article - The Times of India, Mumbai,
Internet: www.webindia.com
www.crm.com/papers/php.htm
www.google.com
www.yum.com
www.kfc.co.in

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