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Submitted To:
Submitted by:
Akash Grover
RollNo: 04112201712
DECLARATION
I, hereby declare that the Major Project Report, entitled Customer satisfaction towards
McDonalds v/s KFC, is an authentic work carried out by me at McDonalds and KFC. It
has not been submitted earlier for award of any degree or diploma to any institute or
university.
Candidates signature
Date:
Countersigned
ACKNOWLEDGEMENT
It is my pleasure to be indebted to various people, who directly or indirectly contributed in
the development of this work and who influenced my thinking, behavior and acts during the
course of study.
I express my sincere gratitude to Dr. (Prof). M.S. Chaudhary the worthy Director of Delhi
College of Advanced Studies, for providing me an opportunity to undergo the Major Project
Report under his leadership.
I also extend my sincere indebtedness to Ms. Neha Jain who provided her valuable
suggestion and precious time in accomplishing my project.
I also take the opportunity to express my sincere gratitude to each and every person, who
directly or indirectly helped me throughout the project and without anyone of them this
project would not have been possible.
The immense learning from this project would be indelible forever.
Akash Grover
EXECUTIVE SUMMARY
The international market is flooded with various sectors and industries that involve products
of daily as well as occasional use for the consumers. The use of the products can vary from
industrial purpose to private consumption. One such thriving industry in the modern world is
the food and beverage industry. Food and beverage industry combined with the hospitality
sector makes up one of the most attractive target sectors for multi-national corporations. The
concept evolved from the very first diners in the late 18th century, when the world realized
the concept of paid dining experience. Now, the world cannot live without the taste of a Mc
Aloo Tikki or the zing of a Zinger. The bottom line being that the order-to-eat MNCs have
taken over the market like ants on a corpse, gobbling up every ounce of it.
This sector has slowly covered all income groups of consumers and has targeted to achieve a
market share of the highest percentage and the ever increasing competition is resulting in
more profitable options for the consumers. The consumers are being served with a range of
food and beverages to relish on catering every style of taste and preferences. With growing
competition the food giants have take their services to a higher level with better decreased
serving time, value for money prices and changing specialties in their products. The
following report is a comparative analysis of the operational parameters of McDonaldsonald
and Kentucky Fried Chicken (KFC) and projects an overview of various factors that
differentiate the services of the two food giants.
It covers the market share of KFC and MCD. It covers factors like the product variety,
customer reach, pricing strategies, hospitality management, customer relationship
management, supply chain management and employee satisfaction programmers .The
survey was based on the consumers response on their choice between KFC and
McDonaldsonald and the basis of their choice was differentiated into various factors
TABLE OF CONTENTS
S.No.
Topic
Page No
Declaration
Acknowledgement
ii
Executive Summary
iii
List of Tables
Iv
List of Figures
Chapter-I: Introduction
1-17
1-3
4-7
8-10
Competitors Information
11-12
13-14
15
16
17
Methodology
Chapter-II: Conceptual Framework
18-40
18-20
21
22-24
25
Operations Model
26
PEST analysis
27-28
McDonalds Franchise
29-30
KFCs franchises
31-32
33
34-38
39
40
41-56
57-60
57-58
Limitations
59
60
10
Bibliography
11
Appendix
LIST OF TABLES
Table No.
Title
Page No.
Representing Gender
41
Age Group
42
Annual Income
43
Representing Occupation
44
45
46
47
10
48
49
51
52
53
55
56
LIST OF FIGURES
Figure No
Title
Page No.
Ii
33
Representing Gender
41
Age Group
42
Annual Income
43
Representing Occupation
44
Visits of respondents
45
46
47
48
49
51
10
52
53
55
56
CHAPTER -I
INTRODUCTION
Overview of Industry as a Whole
The food industry is on a high as Indians continue to have a feast. Fuelled by what can be
termed as a perfect ingredient for any industry - large disposable incomes - the food sector
has been witnessing a marked change in consumption patterns, especially in terms of food.
An increasing number of international fast food chains rushing to India are because all of
them see tremendous potential in for this type of business. The large upwardly mobile
population in the urban areas tend to eat out more often or business or for leisure.
The various players operating in India are the well-established Indian chains like nirula's,
haldiram's and multinational companies like McDonalds, pizza hut, domino's pizza, KFC
etc.
In addition to these, apparently some of the best known international food chains are looking
at India. Among them are great American disaster, the burger king, Mexican food chain taco
grill, move-n-pick, etc. Are some of them to name?
At present all these players are fighting for a small pie, as fast food is really not a big habit
with Indians, but they see a big potential.
The players are fighting on products, pricing, positioning and trying to convert their first
trials into regular purchase by providing delightful service quality. The focus is on product
quality and standardization on taste. Consistency is the key, as its standardization in fast food
as the consumer is short on time and wants to satisfy his taste buds with a consistent taste
experience.
Beyond this each player has its own strategy to expand consumer base.
Some feel that pricing is not the deciding factor since fast food is not Price
sensitive market because it is not a single diet of Indians.
Some others are competing on positioning which is surprisingly varied, giving the
small size of the market.
Advertising is popular.
However, with competition hooting up most chains are increasing reach as well as working
on establishing a national presence.
The wind of change is blowing through the empire of fast food. The vision of endless growth
through new markets across the planet for fast food companies now looks unsustainable
when its time to adapt or die. As the fast food companies have expanded around the world,
they have had to adapt to local sensitivities.
There were disturbances in India when it was learned that McDonalds were pre-cooked in
beef fat in the usa, because hindus revere cows and cannot eat beef.
According to a market research company, euro monitor international, amount of money
Indians spend in eating out has more than doubled in past decade, to about us$ 5 billion a
year and is expected to double again in about half that time.
The industry provides direct employment to 5 million individuals, five times the it
industry and 10 times the hotel industry.
There are 10 million street vendors in India, of which 6 million sell ready to eat food.
The evolving industry is a significant contributor in terms of tax or vat to the economy.
Currently it contributes $220 million and has the potential to reach $770 million.
According to a report by techno pak analysis, the market size of the food service sector
is estimated to be $8.1 billion by 2013 and $9.6 billion by 2018. It is growing @ 5-6%
per annum.
dedicated
to
Focus all our resources to our restaurants operation because that is where we
at all times.
Encourage new and innovative ideas because these are the key to our competitive
growth.
Reward result and not simple efforts.
Dedicate ourselves to continuous growth in sales, profit and size of organization.
Work as a team.
McDonalds
The McDonalds corporation is the world's largest chain of hamburger fast food restaurants,
serving
around
68
million
customers
daily
in
119
countries
across
35,000
outlets. Headquartered in the United States, the company began in 1940 as a barbecue
estaurant operated by Richard and Maurice McDonald. In 1948, they reorganized their
business as a hamburger stand using production line principles. Businessman ray Kroc joined
the company as a franchise agent in 1955. He subsequently purchased the chain from the
McDonald brothers and oversaw its worldwide growth.
A McDonalds restaurant is operated by a franchisee, an affiliate, or the actual corporation
itself. The McDonalds corporation revenues come from the rent, royalties, and fees paid by
the franchisees, as well as sales in company-operated restaurants. In 2012, the company had
annual revenues of $27.5 billion and profits of $5.5 billion. According to a 2012 BBC report,
McDonalds is the world's second largest private employerbehind wal-martwith 1.9
million employees, 1.5 million of whom work for franchises.
McDonalds primarily sells hamburgers, cheeseburgers, chicken, French fries,
breakfast items, soft drinks, milk shakes and deserts. In response to changing
consumer tasters, the company has expended its Manu to include salads, fish
wraps, smoothies, fruits and seasoned fries.
McDonalds
1940 is the birth year of McDonalds and they have started everything. Their speedier service
system that was introduced in their very first restaurant is being followed until now in
modern day fast food chains. Their very first mascot was a man with a head of a hamburger
that is wearing a chefs hat. It was replaced by McDonalds ever popular clown man.
McDonalds is recorded to currently serving 58million customers each day in 119 countries.
Their restaurants differ from their settings, some offer by-passers with their drive thru
service, some have playgrounds for kids but are just counter service alone. Some of their
restaurants have outer seats as well. McDonalds signature colors are red and yellow. Their
well-supported products are their famous hamburgers, breakfast offers, desserts, chicken
sandwiches and French fries. For vegetarian customers, McDonalds have offerings that are
suitable for them. When it comes to regional branches, McDonalds are known for being fond
of offering these countries food taboos for them to have some sort of relationship with people
around. For example, Portugal McDonalds are the only ones who have soup in the menu.
Another example would be Indonesia for mc rice.
KFC
On the other hand, KFC or Kentucky fried chicken started during the great depression,
which was in the year 1930. It was first named as sanders court and cafe, following the
name of Harland sanders, the original creator from Kentucky. Their current and most popular
logo is the cartooned image of sanders with their acronym, KFC. They are popular for their
trade secret, their secret recipe made from11 herbs and spices that is known to create the
finger lickin well flavor of their chickens.
Their basic products are fried chickens, chicken wraps, sandwiches, salads and some roasted
and grilled chicken cuisines and desserts, too. Be it McDonalds or KFC, youll surely have a
great treat of a meal. Differentiating both will help unrecognized as to what wed really love
to consume. McDonalds main offer is hamburgers while KFC offers various kinds of
chicken dishes.
KFC: champs stands for our belief that the most important thing each of us can do is to
focus on the customer. It stands for our commitment to provide the best food and best
experience for the best value. Champs stand for the six universal areas of customer
expectation common to all cultures and all restaurants concepts.
McDonalds: we take the burger business more seriously than anyone else. When
McDonalds founder, ray kroc made that memorable statement, he was letting the world in on
the philosophy and secret behind McDonalds phenomenal success.
Our vision to be India's best quick service restaurant experience is supported by a set of
principles and core values [McDonalds way] the principles that guide McDonalds...
A passion and a responsibility for enhancing and protecting the McDonalds brand.
We will seize every opportunity to innovate and lead the industry on behalf of our
customers.
KFC
KFC Corporation (KFC), founded and also known as Kentucky fried chicken, is a chain
of fast food restaurants based in Louisville, Kentucky, in the United States. KFC primarily
sells chicken pieces, wraps, salads and sandwiches. While its primary focus is fried chicken,
KFC also offers a line of grilled and roasted chicken products, side dishes and desserts.
Outside North America, KFC offers beef based products such as hamburgers or kebabs, pork
based products such as ribs and other regional fare.
The company was founded as Kentucky fried chicken by colonel Harland sanders in 1952;
though the idea of KFC's fried chicken actually goes back to 1930. The company adopted the
abbreviated form of its name in 1991. Starting in April 2007, the company began using its
original name, Kentucky fried chicken, for its signage, packaging and advertisements in the
u.s. as part of a new corporate re-branding program, newer and remodeled restaurants will
have the new logo and name while older stores will continue to use the 1980s signage. Born
and raised in Henryville, Indiana, sanders passed through several professions in his lifetime.
Sanders first served his fried chicken in 1930 in the midst of the great depression at a gas
station he owned in north Corbin, Kentucky. The dining area was named "sanders court &
caf" and was so successful that in 1936 Kentucky governor ruby laffoon granted sanders the
title of honorary Kentucky colonel in recognition of his contribution to the state's cuisine. The
following year sanders expanded his restaurant to 142 seats, and added a motel he bought
across the street. When sanders prepared his chicken in his original restaurant in north
Corbin, he prepared the chicken in an iron skillet, which took about 30 minutes to do, too
long for a restaurant operation. In 1939, sanders altered the cooking process for his fried
chicken to use a pressure fryer, resulting in a greatly reduced cooking time comparable to
that of deep frying.
The sanders court & caf generally served travelers, often those headed to Florida, so when
the route planned in the 1950s for what would become interstate 75 bypassed Corbin; he sold
his properties and traveled the u.s. to sell his chicken to restaurant owners. The first to take
him up on the offer was pete harman in south salt lake, utah; together, they opened the first
"Kentucky fried chicken" outlet in 1952. By the early 1960s, Kentucky fried chicken was
sold in over 600 franchised outlets in both the United States and canada. One of the longestlived franchisees of the older col. Sanders' chicken concept, as opposed to the KFC chain,
was the kenny kings chain. The company owned many northern ohio diner-style restaurants,
the last of which closed in 2004.
Sanders sold the entire KFC franchising operation in 1964 for $2 million usd, equal to
$14,027,987 today. Since that time, the chain has been sold three more times: to heublein in
1971, to r.j. Reynolds in 1982 and most recently to PepsiCo in 1986, which made it part of its
tricon global restaurants division, which in turn was spun off in 1997, and has now been
renamed to yum! Brands .additionally, colonel sanders' nephew, lee Cummings, took his own
Kentucky fried chicken franchises (and a chicken recipe of his own) and converted them to
his own "spin-off" restaurant chain, lee's famous recipe chicken.
The first McDonalds restaurants opened in the United States, Canada, Costa Rica, panama,
Japan, the Netherlands, Germany, Australia, France, el Salvador and Sweden, in order of
openings. With the expansion of McDonalds into many international markets, the company
has become a symbol of globalization and the spread of the American way of life. Its
prominence has also made it a frequent topic of public debates about obesity, corporate
ethics. The McDonalds headquarters complex, McDonalds plaza, is located in oak brook,
illinois. It sits on the site of the former headquarters and stabling area of paul butler, the
founder of oak brook. McDonalds moved into the oak brook facility from an office within
the Chicago loop in 1971.
Competitors information
Burger king
Burger king,
often
abbreviated
as bk,
is
food
Nirulas
Established in 1934, nirulas today is a diversified group having chain waiter service
restaurants, family style restaurants, ice cream parlors, pastry shops and food processing
plants in India.
The chain with over 60 outlets operating in 5 states successfully caters to the Indian palate of
over 50000 guests every day for over 70 years.
The restaurants serve a wide variety of multi-cuisine foods, both western and Indian
including pizzas, burgers, chana kulcha, saag-roti and much more!
An ice cream parlor offers an extensive range of exciting and innovative ice cream flavors
with one new flavor added every month nirulas pastry shops are a one-stop shop for bakery
and confectionary items.
Pizza hut
In 1996 pizza hut came to India with a dine in restaurant in bangalore that has special
vegetarian pizzas. In addition to traditional italian topping, it incorporates Indian favorites
such as chicken tikkas, lamb korma, etc. In its list of innovative toppings, along with pizzas
the menu features appetizers like garlic bread and soups, fresh salads, oven baked pastas and
choice f\of ice-cream sundaes.
In 1997 pizza hut opened a restaurant in the capitals bustling m-block market in greater
kailash-i, unlike the existing pizza hut at shanti niketan which is delivery counter for just
pizzas, this is dine-in where the entire menu is available.
Dominos pizza
It was incorporated in 1995 as the master franchise o dominos pizza international inc., of
usa. The first dominos pizza store in India opened in january 1996 at new delhi. Today it has
grown into a countrywide network of over 104 outlets in 30 cities.
Ever since it was established, dominos pizza India has maintained its position of market
leadership with its constant product innovation and maintenance of stringent service
standards. It has established a reputation for being a home delivery specialist capable of
delivering pizzas within 30 minutes. It was the first one to start this facility to customers.
Dominos constantly strives to develop a product that suits the tastes of its customers. Thus
time and again dominos has been innovating toppings suitable to taste buds of the local
populace and these have been very well accepted by the Indian market.
S.W.O.T Analysis
McDonalds
Strengths
Weaknesses
High fat and high calorie food not good for health conscious people
Franchise mismanagement
Opportunity
McDonalds can improve home delivery service.
Get more innovative products for the vegetarian market.
Venture into newer markets.
Threats
KFC
Strength
Weakness
High fat and high calorie food not good for health conscious people.
Franchise management globally is a challenge.
Opportunity
Threats
Objectives of study
and McDonalds.
To know the customer preference between both the brands McDonalds and KFC
Research Methodology
Research design- Descriptive
Method of data collection
Primary data
Secondary data
Primary data
Sampling design- Non -Probability sampling
Sampling technique- Convenience sampling
Sample size- 50
Research instrument- Questionnaire
Tool for data presentation- pie chart, bar graphs
Secondary data
The data has been collected from books and websites to prepare the project.
CHAPTER II
CONCEPTUAL FRAMEWORK
Overview of KFC and McDonalds
As two of the world's largest fast-food giants, McDonalds and Kentucky fried chicken
(KFC) are both from the United States. Hu wei and xie yuanyuan were surprised to find that
there was no KFC in finland, although KFC can be seen everywhere in china. In addition,
they have a different way of development. Due to this situation, we want to find out how
these two companies developed differently in chinese market.hu wei and xie yuanyuan wrote
this thesis. Hu wei was mainly responsible for question introduction, methodology and KFC
parts. Xie yuanyuan was mainly responsible for theoretical basis, thesis analysis methods and
McDonalds parts
KFC corporation: 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 f i v e
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 piein the united states to a salmon
sandwich in japan. KFC continues reaching out to customers with home delivery in more
than300 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, time-strapped 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.
McDonalds corporation: 1940 is the birth year of McDonalds and they have started
everything. Their speedier service system that was introduced in their very first restaurant is
being followed until now in modern day fast food chains. Their very first mascot was a man
with a head of a hamburger that is wearing a chefs hat. It was replaced by McDonalds ever
popular clown man. McDonalds is recorded to currently serving 58million customers each
day in 119 countries. Their restaurants differ from their settings, some offer by-passers with
their drive thru service, some have playgrounds for kids but are just counter service alone.
Some of their restaurants have outer seats as well. McDonalds signature colours are red and
yellow. Their well-supported products are their famous hamburgers, breakfast offers,
desserts, chicken sandwiches and french fries. For vegetarian customers, McDonalds have
offerings that are suitable for them. When it comes to regional branches, McDonalds are
known for being fond of offering these countries food taboos for them to have some sort of
relationship with people around. For example, portugal McDonalds are the only ones who
have soup in the menu. Another example would be indonesia for mc rice.
JOURNEY IN INDIA
KFC: 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, flavourful 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 veggie
burger, veggie
snacker and veg. Rice meals. In India, KFC is growing rapidly and today has presence in 11
cities with close to 50 restaurants.
McDonalds: McDonalds in India is a 50-50 joint venture partnership between McDonalds
corporation [usa] and two Indian businessmen. Amit jatia's company hard castle restaurants
pvt. Ltd. Owns and operates McDonalds restaurants in western India. While connaught plaza
restaurants pvt. Ltd headed by vikram bakshi owns and operates the northern operations.
Amit jatia and vikram bakshi are like-minded visionaries who share McDonalds complete
commitment to quality, service, cleanliness and value (qsc&v). Having signed their joint-
venture agreements with McDonalds in april 1995, they trained extensively, along with their
Indian management team, in McDonalds restaurants in indonesia and the u.s.a. before
opening the first McDonalds restaurant in India.
Mc donald's international through its wholly owned subsidiary McDonalds India entered
into two jvs, one with connaught plaza restaurants pvt. Ltd. In the northern & eastern region
and another with hard castle restaurants pvt. Ltd. In the western & southern region.
As a leader in qsr (quick service restaurant) segment McDonalds has pioneered various
industry benchmark practices over the past decade of serving Indian customers, including
new concepts such as
There is a substantial body of empirical literature that establishes the benefits of customer
satisfaction for firms. This literature is summarized by mittal and frennea .
Types of research
Beyond documentary types of work are studies that attempt to provide an understanding of
why customers have the perceptions they do and what may be done to change those
perceptions. While models-based studies also provide snapshots of customer attitudes, the
results of these studies are more powerful because they present the firm with
recommendations on how to improve customer satisfaction. Frequently, these studies also
provide firms with a prioritization of the various recommended actions. Inferential studies
can also be conducted as tracking studies. When this is done, the firm can gain insight into
how the drivers of customer satisfaction are changing in addition to documenting the levels
and areas of customer satisfaction.
Methods
Quantitative studies allow a firm to develop an understanding of the "big picture" of their
customers' experiences based upon a relatively small number of interviews. This "sample" of
the firm's customers must be carefully designed and drawn if the results of the study are to be
considered representative of the customer population as a whole. In most cases, the results of
quantitative studies are based upon the responses of a relatively "large" number of
interviews. Depending upon the size of the population and the amount of segmentation
desired, "large" can be as few as 50 responses or range from several hundred to thousands of
interviews. Mail-based, telephone-based, and (more recently) Internet-based surveys and
related data collection.
Qualitative studies are used by firms to provide a more detailed and/or unconstrained
understanding of customer experiences. In most cases, the results of qualitative studies are
based upon dozens of interviews. Qualitative studies are not designed to provide insights that
are projectable to the customer population: qualitative studies are used for initial exploration
of experiences and topics or to probe more deeply the reasons behind customer perceptions.
Focus groups (group depth interviews) and "one-on-ones" (individual depth interviews) are
common examples of qualitative studies.
Both KFC and McDonalds implement regular sales and franchising sales on the
management mode to achieve profitable growth. Using the direct sales, the company
may be control shares absolutely, or there may also be a partnership with others.
Under this mode of operation, the company will pay the high up-front costs in relation
to the latter income part, and also the cost will be expended at one time. The long time
gap will have an impact for the capital chain of the entire company; however, using the
franchising sales, although it increases the costs of control and management to the
company's stores, the upfront initial fee to supplement the cash flows of the company
will make the cash flow of the company smoothly as a whole. (alibaba 2012)
Since 1993, KFC began franchising in xian, china. In 1998, it issued the new
franchising policy called not starting from scratch. By the end of 2006, KFC has 95%
regular sales stores in china, and only 5% franchises stores. (study mode 2011)
compared with KFC, McDonalds officially introduced into a franchising business
model in china. McDonalds has more than 700 restaurants in china; most 26restaurants
are joint ventures with local chinese firms accounted for 50% operation modes,
contractual joint venture and wholly foreign-owned enterprises, and only a few stores
are franchise.
Product
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). KFC products are based on high
quality. KFC has a head-on competition with McDonalds so wherever they place their
products; KFC goes there as well. Where in case of MCD, the products are value for
money.
Price
The price strategies of KFC are relatively expensive. Where the prices of MCD products
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 include the government policies as KFC being a
foreign company, but they have to obey the policies of the government laid by the
government of Pakistan, 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
Pakistan, 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 behaviour of the people plays
an important role. KFC also estimated the consumption behaviour 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 behaviour 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 Pakistani culture as they had to serve the people living in Pakistan having
entirely different culture from other areas. And it has not only adopted the Pakistani 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 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.
McDonalds franchise
1. McDonalds is not just a restaurant.
This sentence not only accurately covers business philosophy of McDonalds, but also
reflects franchise concept of McDonalds. McDonalds is not just a restaurant for sale, and as
well as the concept of corporate culture. Initially, McDonalds franchise can be a new store,
or it can be an old one. The investment costs for new stores and old shops are different. In the
medium of 2004, McDonalds opened a regular chain first, and then converted them to
franchised outlets. That franchise can use depreciation equipment; shops, furniture and
decoration, and the joined costs are correspondingly reduced. McDonalds franchisee is a
long-term partnership that the franchise agreement for a period of 20 years. (wenku 2011a)
2. McDonalds franchise mode
McDonalds corporation is one of the most successful franchises in the world; it creates a
unique franchise model: the company will buy or rent the shops, and then subleases it to the
franchisee. This real estates are the important property of McDonalds, while rental income
of these shops also accounted for a significant proportion of the income. The following table
5 will be a very good description of the McDonalds franchise mode. (wenku 2011a)
McDonalds franchise mode (wenku 2011a) location selection 24 provinces in north, central
and south of the china investment initial fee must be non-borrowed funds; company or
partners to join forms are not be allowed. As funds are not enough, McDonalds firm allows
you to rend the facilities, but you need to buy these devices within 3 years 27
Training 12 weeks training. Offer the staff training at the University of Hamburg for the
franchise. It also provides management consulting, advertising and other services.
3. The features of McDonalds stores selection
McDonalds expands their scale though the chain of business, however, the first step in
achieving this objective is through comprehensive market information and the location of the
evaluation criteria to select suitable store locations. It will make the stores more standardized
KFCs franchises
1. Do not start from scratch
The idea called do not start from scratch is a special point of franchise of KFC in china.
This refers to starting a resale of profitable and sophisticated restaurants, which are sold to
franchisees. Franchisees are not required to start from scratch so that will avoid choosing a
place or setting up a shop on their own, such as recruiting, training and managing people as a
result of the work. The franchisees will greatly reduce the risk of investment and also
improve the chances of success. Recently franchise of KFC is a mature restaurant in the form
of transfer. Joining KFC is also a long-term cooperative relationship; the first period of
cooperation will be continued at least ten years for franchising agreements. Franchisee must
voluntarily work on KFC franchise more than a decade. (wenku 2011b)
2. KFC franchise mode
New franchise operators will be authorized to run a mature KFC restaurant, which had
already begun to profit at least for a year. Purchase charge for each restaurant's will be
calculated according to the specifics of the restaurant, which includes all the 28 decoration,
equipment, profit, and transfer of employees except from the purchase of immovable
property. Table 6 explains KFCs franchise mode. (wenku 2011b)
KFCs franchise mode (wenku 2011b)
Location selection
China's non-agricultural zones (150,000 -400,000 population)
Investment financing can find partners, but the main operator's capital ratio must be greater
than 30% or loan, but the loan amount cannot exceed 30% of the amount of investment
training 13 weeks training:<restaurant manager>,<restaurant management>,<how to manage
the franchise restaurant>,<KFC background> and the other relevant courses.
Mcaloo tikki 30
Veg mcpuff 35
Mcegg 35
Chicken mcgrill 45
Masala grill veg 49
Masala grill chicken 59
Mcaloo wrap with chipotle sauce 49
Egg wrap with chipotle sauce 49
Grill chicken wrap with chipotle sauce 59
Filet-o-fish 105
Chicken maharaja mac 109
Mcspicy paneer 119
Mcspicy paneer supreme 125
Mcspicy chicken 125
Mcspicy chicken supreme 135
Double mcspicy chicken 200
Big spicy paneer wrap 149
Big spicy chicken wrap 155
(May not be available in some cities)
Veg mcmuffin 49
Veg supreme mcmuffin 59
Hot cakes (syrup & butter) 65
Egg & cheese mcmuffin 55
Sausage mcmuffin 65
Sausage mcmuffin (with egg) 75
Chicken mcnuggets (6/9/20pcs.) 95/125/265
Mcpaneer royale 127
Grilled chicken royale 137
Extra value meal (burger + coke pet bottle + medium fries)
Mcveggie 155
Mcchicken 165
Filet-o-fish 189
Chicken maharaja mac 204
Mcspicy paneer 209
Mcspicy paneer supreme 215
Mcspicy chicken 214
Mcspicy chicken supreme 220
Double mcspicy chicken 280
Big spicy paneer wrap 239
Big spicy chicken wrap 244
(may not be available in some cities)
Veg mcmuffin 95
Veg supreme mcmuffin 115
Hot cakes (syrup & butter) 115
Egg & cheese mcmuffin 105
Sausage mcmuffin 115
French fries
Small: 60
medium: 75
Large: 95
Extras
Beverages:
Coke/fanta/sprite mcfloat 30
Toppings:
Extra cheese/sauce/syrup/toppings 15
Extra chicken mcnuggets dip 13
Extra mcflurry toppings 20
Desserts:
A la cart :
In case i have missed any product, please share it in the comment box below.
Note: McDonalds is registered trademark of McDonalds India (hrpl). All the content shared
here is only indicative; without any warranty, guaranty or affiliation to the company.
CHAPTER III
DATA ANALYSIS AND INTERPRETATION
In this chapter the data collected from 50 Respondents is presented and analyzed
Demographic information:
A) Gender:
Options
No. Of Respondents
% of Respondents
Male
28
56
Female
22
44
Total
50
100
Female; 44%
Male; 56%
B) Age group
Age ( in year)
No of Respondents
20-30
30-40
Above 40
Total
% of Respondents
29
11
10
50
Table No. B: Age group
58
22
20
100
30-40, 22%
20-30, 58%
35
No of respondent
% of Respondents
11
14
10
15
50
Table No. C: Annual income
22
28
20
30
100
32
28
30
25
20
20
20
15
10
5
0
Below 2 lakhs
2 3lakhs
Above 3lakhs
No income
D) Occupation
Options
Students
Service
Business
Housewife
Total
No. Of Respondents
% of Respondents
8
16
25
50
10
20
7
14
50
100
Table No. : D- Representing occupation
60%
50%
50%
40%
Percentage
30%
20%
20%
16%
14%
10%
0%
Students Service
Business
Housewife
McDonalds
No. Of
% of
No. Of
KFC
% of Respondents
Daily
Respondents
22
Respondents
44
Respondents
1
Once a
16
32
18
36
week
Once a
10
20
26
52
month
Others
10
Total
50
100
50
Table No.1:-Represent the visits of Respondents
60
50
100
52
44
40
32
36
MCD
30
KFC
20
20
10
10
0
Daily
Once a week
Once a month
Others
36
22
Percentage
22%
14%
4%
10%
0%
KFC
No. Of Respondents % of Respondents
Respondents
30
Respondents
18
20
40
16
15
30
24
48
Nominal
15
Expensive
Value for money
Total
McDonalds
No. Of
% of
36
50
100
50
Table No.4:-Represent the opinion of Respondents towards Price
100
60
48
50
40
40
30
36
30
30
KFC
MCD
20
16
10
0
Nominal
Expensive
KFC
McDonalds
No. Of
% of
No. Of
% of
Respondents
Respondents
Respondents
Respondents
18
36
21
42
18
Agree
14
30
60
Strongly agree
14
Strongly
disagree
Disagree
Neither disagree
nor agree
Total
50
100
50
100
Table No.5:-Represent the opinion towards nutritious of the product
70
60
60
50
42
36
40
30
18
20
10
Percentage
14
14
2
KFC
MCD
are neither
disagree nor agree, 14% of respondents are agree and 2% of respondents strongly agree that
it provides nutritious food where in case of McDonalds, 2% of respondents are strongly
disagree, 6% of respondents are disagree, 18% of respondents are neither disagree nor
agree, 60% respondents
KFC
Highly satisfied
Satisfied
Neutral
Dissatisfied
Highly
dissatisfied
Total
McDonalds
No. Of
% of
No. Of
% of
Respondents
7
25
10
6
Respondents
14
50
20
12
Respondents
12
23
8
4
Respondents
24
46
16
8
50
100
50
Table No.6:-Represent the food quality of both the brands
Percentage
60
50
40
30
20
10
0
50
14
24
KFC % of Respondents
100
46
20
16
12
MCD % of Respondents
are highly dissatisfied with the food quality of KFC where 24% of
respondents are highly satisfied, 46% of respondents are satisfied, 16% of respondents are
neutral, 8% of respondents are dissatisfied and 6% of respondents are highly dissatisfied
with the food quality provided by McDonalds.
KFC
McDonalds
No. Of
% of
No. Of
% of
Respondents
Respondents
Respondents
Respondents
Yes
24
48
27
54
No
26
52
23
46
Total
50
100
50
100
Table No.7:- Represent the advertisement influence on demand of both brands
60
50
54
52
48
46
40
Percentage
KFC
30
McD
20
10
0
Yes
NO
Q8 Are you satisfied by the products and services offered by the following brands?
Options
KFC
McDonalds
Frequency
Percentage
Frequency
Percentage
Highly satisfied
11
22
10
20
Satisfied
7
14
25
50
Neutral
25
50
11
22
Dissatisfied
5
10
4
8
Highly dissatisfied
2
4
0
0
Total
50
100
50
100
Table No.8:-Represent the opinion of Respondents toward product and services of both
(KFC & McDonalds)
60
50
50
50
40
30
Percentage
20
22 20
22
14
10
0
10 8
KFC
McD
4
0
Fig No.8:-Represent the opinion of Respondents toward product and services of both
(KFC & McDonalds)
Analysis & interpretation
After consider the above table and bar graph it can be concluded that in case of KFC, 22% of
respondents are highly satisfied, 14% of respondents are satisfied, 50% of respondents are
neutral, 10% of respondents are dissatisfied, 4% of respondents are highly dissatisfied with
the product and services of KFC where in case of McDonalds, 20% of espondents are
highly satisfied, 50% of respondents are satisfied, 22% of respondents are neutral, 8% of
respondents are dissatisfied, none of respondents are highly dissatisfied with the product
and services of McDonalds.
KFC
No. Of
McDonalds
No. Of
% of
% of
Respondents
Respondents
Respondents
Respondents
Near to you
23
46
30
60
Far to you
23
46
16
32
Others
4
8
4
8
Total
50
100
50
100
Table No.9:-Represent the accessibility of Respondents of both brands
70
60
60
50
46
40
Percentage
46
32
KFC
30
McD
20
8
10
0
Near to you
Far to you
Other
KFC
No. Of
McDonalds
No. Of
% of
% of
Respondents
Respondents
Respondents
Respondents
Excellent
9
18
24
48
Good
29
58
18
36
Poor
6
12
7
14
Very poor
6
12
1
2
Total
50
100
50
100
Table No.10:- Represent the rate given by Respondents to both food brands
70
58
60
48
50
40
Percentage
36
KFC
30
20
McD
18
12 14
10
12
2
0
Excellent
Good
Poor
Very Poor
Fig No.10:- Represent the rate given by Respondents to both food brands
Analysis & interpretation
From the above bar graph it can be concluded that 18% respondents rate as excellent, 58%
respondents rate as good, 12% respondents rate as poor, 12% respondents rate as very poor to
KFC where in case of McDonalds, 48% respondents rate it as excellent, 36% respondents
rate as good, 14% of respondents rate as poor and 2% respondents rate it very poor.
CHAPTER-IV
SUMMARY AND CONCLUSION
Results of the study
As two of the world's largest fast-food giants, McDonalds and Kentucky fried chicken
(KFC) are both from the United States.
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. McDonalds
corporation is one of the most successful franchises in the world; it creates a unique franchise
model: the company will buy or rent the shops, and then subleases it to the franchisee. This
real estates are the important property of McDonalds, while rental income of these shops
also accounted for a significant proportion of the income.
The strategy of McDonalds and Kentucky fried chicken is basically growth strategy in china.
Growth strategy can be achieved through direct growth, vertical integration, and horizontal
integration to achieve. Specific strategic development includes mergers, acquisitions,
partnerships, franchising, strategic alliances, and so on.
KFC and McDonalds have taken a direct expansion of growth, but the first McDonalds
children's clothing stores called mckids opening in shanghai, china in 2004 marked the
adjustment of McDonalds business strategy, it means that the company is seeking effective
growth through diversification. In addition, there are also differentiations on drive-through
restaurants. (Brand republic 2004)
In our study, the findings after the analysis of the primary data are given below:
52% people visit KFC once in a month where 44% people visit McDonalds daily and
40% people feels KFC is expensive where only 16% people think McDonalds is
expensive and 48% people think McDonalds products are value for money on the other
hand only 30% people think KFCs products are value for money.
36% people disagree with the nutritious food provided by KFC where only 6% are
disagree with McDonalds and 60% are agree with the nutritious food provided by
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.
Both food brands should adopt certain strategy to attract the customers. 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.
KFC needs to have more outlets, at commercial areas.
Both food brands should organize and run the proper advertisement campaign.
BIBLIOGRAPHY
Google books
B. Hesterman Oran, Fair Food: Growing a Healthy, Sustainable Food System for
All, Sultan Chand publications, New Delhi, fifth edition, Published May 31st 2011.
Roberts Paul, The End of Food, by Houghton Mifflin Harcourt, London, 12th
edition, Published on June 4th 2008.
Websites
February .2015)
http://www.scribd.com/doc/23291169/kfc-Vs-McD#scribd (last accessed on 20.
February. 2015)
http://www.slideshare.net/dankjohn/project-report-and-market-survey-of-mcdonalds-
30.March.2015)
http://www.projectfever.com/index.php?
main_page=product_info&cPath=2&products_id=324 (last accessed on 5.April.2015)
ANNEXURE
QUESTIONNAIRE
Dear Sir / Madam
I am doing a research to know about consumer satisfaction toward KFC and McDonalds
brand in Delhi city as per my topic. So, its my request to you to kindly cooperate with me in
filling the questionnaire. I am assuring you that information provided by you will be
academic purpose only and will not be misused anywhere.
Demographic profile
Name:
G ender:
Male (
Age:
Below 18 ( )
Occupations: Service (
Female (
18-25 ( )
) Business (
25 above ( )
) Housewife (
2L-4L (
4L-6L (
Student (
)
Above 6L (
Once a week ( )
Once a month ( )
Once a week ( )
Once a month ( )
Non-Vegetarian ( )
Occasionally Non-vegetarian ( )
Friends ( )
Alone ( )
Expensive ( )
Value of money ( )
Expensive ( )
Value of money ( )
MCD
Nominal ( )
Disagree ( )
Agree ( )
Strongly Agree ( )
MCD
Strongly Disagree ( )
Disagree ( )
Agree ( )
Strongly Agree ( )
Satisfied ( )
Neutral ( )
Satisfied ( )
Neutral ( )
MCD
Highly satisfied ( )
No ( )
Yes ( )
No ( )
(8) Are you satisfied by the products and services offered by the following brands?
KFC
Highly satisfied ( )
Dissatisfied ( )
Satisfied ( )
Neutral ( )
Highly dissatisfied ( )
MCD
Highly satisfied ( )
Dissatisfied ( )
Satisfied ( )
Neutral ( )
Highly dissatisfied ( )
For to you ( )
Other (specify) ( )
For to you ( )
Other (specify) ( )
MCD
Near to you ( )
Good ( )
Poor ( )
Very Poor ( )
Good ( )
Poor ( )
Very Poor ( )
MCD
Excellent ( )
MCD..........................
.....................................................................................................................................................
Name..
Contact no:
.
-Thanks-