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Kentucky Fried
Chicken
Presented To:
Ms Tahira Umair
Program:
MBA
Group Members:
Ahsan Sarwar (Leader) 008
Ayyaz ul Haque 032
Atif Numan 029
M. Zahid 110
M. Afzal 080
COMSATS
Institute of Information
Technology Lahore
Dedication
To Our Beloved
Parents
&
Teachers
Acknowledgement
We all are thankful to God Almighty
The KFC food product is one of the fast food manufacturers in all
over the world and also in Pakistan. They produce numbers of fast food
products. They have a brand name as KFC (Kentucky Fried chicken).
We have written the history of KFC and the products they offered
and we also written the micro and macro environment of KFC and the
marketing strategy is also discussed. It is also mentioned about the
products prices and places and promotion strategies. The BCG Matrix is
also drawn for product analysis.
Table of Contents
Sr. No. Topic Page No.
1. About The Cupola
1
2. Business portfolio
3
3. Brand Name, Logo, Slogan,
4
Launching time, Target Market 4
4. KFC History
5
5. KFC Introduction
7
6. Branches of KFC in Pakistan
9
7. Product Line
11
8. Product Life Cycle, Price
Strategy 13
9. Micro Environment
14
10. Macro Environment
18
11. Marketing Strategy
22
12. Competitor Advantage, Analysis
24
13. Tools of promotion Mix
25
14. SWOT Analysis
26
15. Marketing Mix
30
16. BCG Matrix
50
17. Strategies for Growth &
53
Downsizing
18. Conclusion
56
19. Appendix
58
20. References
60
1
About the Company
"CUPOLA"
Cupola
Cupola is a Dubai based multinational company involved in
several business including, oil gas exploration, plastic cards, retail markets
and food franchising. Cupola holds the master franchise rights to operate
KFC in Pakistan.
Vision:
Cupola creates value through change, challenging existing
paradigms and by applying vision, innovation and skilled execution. We
seek opportunities for investment where others do not look and we examine
these opportunities with open-mindedness, thoroughness and hard-headed
practicality.
Mission:
Our mission is to harness and reap the potential of the rapidly
developing markets of the Arabian Peninsula and South Asia. We apply a
regional focus to allow us to reap the potential of rapidly expanding markets
in the Arabian Peninsula and South Asia. In the mature capital markets of
Europe and the United States, we are well regarded as innovative and
creative niche investors. We believe in the minimization of risk: through the
depth of our senior management and the quality of our professional staff;
through exhaustive and through an emphasis on pre-feasibility.
What everyone in Cupola shares is an almost obsessive drive for
quality, an active consciousness of the team approach and a commitment to
our collective success. We strive continually to improve the tangible and
intangible returns for all our stakeholders
Business Portfolio
1. KFC
2. Indulge
3. My Super Store
4. L'Occitane
5. LoLQiLo
6. CASE Bakery
Brand Logo :
Launching Time : 1996
Target Marketing :
Kfc target the young generation.
It target the early single segment that is upper class.
KFC
History
6
History
KFC came to Pakistan in 1996 with the first branch opening in Karachi
and later in Lahore. The franchise was a Pakistani owned and operated, Dubai
based company the Cupola Group, which owns licenses and its own restaurants
throughout Pakistan and the Middle East. The company’s creative’s have been
changed significantly over the years to promote a Pakistani image rather than a
American one.
KFC
Introduction
Introduction
9
Branches Of
KFC
In Pakistan
10
Branches Of
KFC
In Pakistan
Cities No. of Branches
Karachi 18
Lahore 9
Hyderabad 1
Islamabad 1
Rawalpindi 2
Sialkot 1
Multan 1
Peshawar 1
Faisalabad 1
Gujranwala 1
Jhelum 1
Sukhur 1
Murree 1
11
Company
Product Line
12
Company Product
Line
In Pakistan KFC introduce following products that are………….
13
Price Strategy:
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
14
Micro
Environment
The Company
Suppliers
Competitors
Customers
Publics
Marketing Intermediaries
15
The Company:
KFC is a multinational company. Its first
branch in Pakistan was opened in 1996 in Karachi. It is run by Dubai Based
Company The Cupola Group. It have several branches in Pakistan. It is one of the
biggest Fast Food Company in Pakistan. It has a indirect competition with
McDonald’s. It provides different kinds of Deals in all over Pakistan. Some of
them are liked by children and some are liked by old people and some are liked
by youngsters. It is making progress day by day by delivering quality products. It
is being popular for many years because of its cleanliness, quality products and
its environment.
Suppliers:
In Pakistan different companies supplies their products to KFC. These
products are used in KFC and people are satisfied by these products.
Suppliers Items
Pepsi Aqua Fina
Nestle Milk
16
Competitors:
KFC
Direct Indirect
Direct Competitors:
Indirect Competitors:
Customers:
In KFC Pakistan average age of group of people like
KFC foods but the KFC management only focus on Young Generation. Few
months a go they survey of their customers to know what age of people mostly
like KFC foods then came to know……….
17
Publics:
Inflation:
If the supply of the money is increased in market then the prices
of the products of different companies become high. With this KFC product’s
prices also become high and people are not able to purchase their products.
Purchasing Power:
If the people don’t have the ability to purchase or
they don’t have such purchasing power to have some fast food to eat other then
their basic needs. Then this is also effects the sales of the KFC.
Basic Needs:
In Pakistan people with average income they firstly prefer to
fulfill their basic needs and then if they have such ability to buy any product of
KFC. Otherwise it will be effect the sale of KFC.
Marketing Intermediaries:
Market Intermediaries
includes manufacturers, producers, wholesalers and retailers. KFC is run by
Dubai Based Company The Cupola Group. They are manufacturer and producer
and also wholesalers. KFC have its own franchises which are owned by Cupola
Group and they provide facility to their customers at their restaurants and they
also provide facility to deliver the goods at customers place.
18
Macro
Environment
Demographics
Political Forces
Natural Forces
Technological Forces
Economic Forces
Cultural Forces
19
Demographics:
In Pakistan some of the following things are
different and some are same as KFC provide in foreign countries.
Points Answers
Age of Workers Same (18 to 35)
Interior or Exterior Design Different
Environment Different
Product Quality Same
Product Size Same
Services Same
Religion Every
Group of people Every
Political Forces:
Points Answers
Any threat No
*1) Any support by Gov’t Yes
*2) Any effect Because Of Political Instability Yes
Examples:
*1) In 1996 when 1st branch of KFC was opened in Karachi, this is just because of
help by Government. Without the help of Government may be they couldn’t open
KFC.
*2) As we can see that now a days in Pakistan there is a political instability, which
effects the growth of every business as well as KFC.
20
Natural Forces:
When any natural forces came in Pakistan
like earth quake, floods, thunderstorm etc KFC face a bad effect on their sale but
their customers have same kind of interest in their food.
Points Answers
Effect on customers interest No
Effect on sales or profit Yes
Effect on goodwill No
Example:
When the Earth Quake came in Pakistan in 2005 the people were
afraid of the Earth Quake. Many people were died and many were injured so for
this reason they didn’t go to any restaurant or any where for outing for many
months. With this KFC had a bad effect on their sale.
Technological Forces:
In today’s era any company
should focus in technological department because this is very important for the
growth of business of any kind. KFC have adopted technological method to
increase their business all over the Pakistan. They advertise them selves through
internet, television, radio etc; with this they have a big effect in their sale n
growth.
Points Answers
*1) Important in present Era Yes
*2) Effect on sales Yes
*3) Source of advertisements Yes
21
Economic Forces:
The Economic forces plays very
important role in our economy. Rising inflation rates, unemployment and
poverty are the major economic factors facing KFC. When the price of petroleum
increases it effects on prices of KFC’s products. These are the reasons of
economic factor with which people interest are affected. Following are the
conditions which effects the sale of KFC in Pakistan.
Points Answers
Unemployment Yes
Increase in petroleum prices Yes
Devaluation Yes
Cultural Forces:
In Pakistan our culture is different as
compared to Western and European culture. That’s why KFC Pakistan introduce
different culture I our country. Following are the factors which effects the sale of
the KFC.
Factors Answers
Western and European Culture Yes
Haram Products Yes
Hard Drinks Yes
22
Marketing
Strategy
Market Segmentation
Market Targeting
Market Positioning
23
Market Segmentation:
The company must first decide
who it will serve. It does this by dividing the market in to segments of customers
and selecting which segments it will go after. Some people think of marketing
management as finding as customers as possible and increasing demand.
KFC choose those areas where they can find such suitable place in
which traffic is more and population of that area is also high and as well the
environment and the society where the people can afford their products. Those
colonies where people like fast food.
Market Targeting:
After segmentation the next step is
targeting the market. Targeting means which segments to go after. In targeting
the marketer select the customers on which they have to focus. They target the
people who are interested in their products.
KFC target the different groups and age of people for their products.
They provide a lot of fast food products for every age of people. They also target
the children and give them the facility to play at their restaurants and also give
the toys with their deals. They have small deals for children. They also target the
youngsters and families as well. They provide them friendly environment and
quality product by which they are attracted.
Market Positioning:
A products position is the way the
product defined by consumers on important attributes, the place, the products
occupies in consumers minds relative to competing products. Some companies
find it easy to choose a differentiation and their positioning strategy.
KFC is one of the most popular fast food companies in Pakistan. In
earlier days they work hard to find the better position in market. They always try
to compete the McDonald’s which is also a well reputed fast food company and
which is its indirect competitor. But KFC progress is very well in past few years;
they give quality products and satisfy their customer’s needs to get a better
position in market.
24
Competitive Advantage:
.1 Taste of food
.2 Consistency of food
.3 More Branches
Competitor analysis:
Any Organization cannot enjoy the business
without competitors. No organization can afford to ignore
there competitors. It is very important for a marketing
managers to monitor the activities of there 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 Mc Donald’s.
KFC McDonalds
Spicy ProductsPakistani people Burger and French Fries
like spicy products instead of
boiled food
25
Tools Of Promotion Mix
1. Sales promotion
2. Advertisement
i. Press advertising
ii.Hoardings
SWOT
Analysis
Strength (Internal Environment)
Weakness (Internal Environment)
Opportunities (External
Environment)
Threats (External Environment)
27
Brand Name:
It has a brand name which distinguishes them from
other brands .it uses price skimming and earns higher profits from other
companies due to their brand name.
Superior services:
The staff is well trained and does their work on
time. It uses electronic media to record their transactions which increase
their efficiency. Their senior staff is highly educated and well experienced.
There deliveries are on time and customers do not have to wait for long
time.
Courteous:
The behavior of the staff of KFC is courteous with their
customers and they always attract the customers by their courteous
behavior.
Management:
The management and maintenance of KFC is very
well. They manage the staff with great care and they also maintain their
restaurants by good management.
28
Ill cleanliness:
Their floors are not so cleaned .their cleanliness
standard does not match with those of their competitors. Their kitchen is not dirt
free as compare to McDonalds. The atmosphere is not so comfortable, which
discourages many of their potential customers.
Expansions:
Their outlets are in limited areas whish does not
satisfy many of the customers wants. Customers have to cover a long distance in
ordered to reach their outlets.
Expensive:
Products of the KFC are so expensive that it is not
affordable by middle level people and it is out of range.
Opportunities (External
Environment):
By increasing Branches:
For more expansion in business they
needs to increase their branches in different areas all over the Pakistan, where
people easily reach and doesn’t cover many distance.
Surrounding Location:
To expand their business the KFC must
clean their surrounding areas where they open their new branch because it
creates good impression on the customers.
29
More Facilities:
They needs to provide more facilities to their
customers for attraction such as internet, television and wide parking area and
should also expand the play land.
Threats (External Environment):
Competitors:
The competitors are main threat for KFC; they have
to improve their product and services as compared to their competitors so that
they can get better position in market.
Political Instability:
It is another factor which is a great threat for
KFC in Pakistan because the government is not stay for long time and by the
change in the government the policies ate also change such as tax policy
Terrorism:
It is also a threat for KFC because Pakistan is instable
due to terrorism and terrorism affects all the aspects of the country.
International Factors:
These are also effects the KFC because
change in international policies and it effect the economy of the country which
leads to change in the behavior of the customer.
30
Marketing
Mix
Product & Price Information
Place Information
Promotion Information
31
Zinger:
1) Spicy Sub:
32
2) Add On:
3) Up Size:
33
4)Twister:
5) Nuggets:
34
6) Hot Shots:
7) Wings n Rice:
35
8) Rice n Spice:
In this deal of KFC they offered a
bawl of rice. The rice are spicy and also they added some chicken pieces
in it which makes it so much delicious. Its price is Rs. 175/- and it is
mostly liked by family and old people.
9)Fish Burger:
36
37
38
39
16) Chicken Mania:
41
Place Information:
In Pakistan there are many branches
of KFC in different cities. Karachi have the most number of branches all over the
Pakistan. Following are the detail of the branches of the KFC in Pakistan is
discussed below.
1) Karachi:
Clifton:
SA-2, See Breeze Centre,
F1-17, Block - 5,
Kh-e-Roomi, Clifton,
Karachi.
For Delivery:
Ph: 111-KFC-KFC
(111-532-532)
Chicky Fun Area
Tariq Road:
49-CA, Market Area,
Tariq Road, Karachi.
For Delivery:
Ph: 111-KFC-KFC
(111-532-532)
Chicky Fun Area
DHA:
P-56, Beach Avenue, Phase 5, DHA,
Karachi.
For Delivery:
Ph: 111-KFC-KFC
(111-532-532)
Chicky Fun Area
42
North Nazimabad:
Plot D-14, Block 2,
North Nazimabad, Karachi.
For Delivery:
Ph: 111-KFC-KFC
(111-532-532)
Chicky Fun Area
Site:
D-119, Maghopir
Road, SITE,
Karachi.
For Delivery:
Ph: 111-KFC-KFC
(111-532-532)
Pechs:
Plot No. 14-A-1,
Block 6, PECHS, Karachi.
For Delivery:
Ph: 111-KFC-KFC
(111-532-532)
Chicky Fun Area
Main Rashid Minhas Road:
Millenium Mega Mall,
Main Rashid Minhas Road,
Adj. Drive in Cinema, Karachi
For Delivery:
Ph: 111-KFC-KFC
(111-532-532)
Chicky Fun Area
Clifton:
Shop # 11, Yousuf Grand Square,
Clifton, Karachi.
For Delivery:
Ph: 111-KFC-KFC
(111-532-532) Separate Party Area &
Chicky Fun Area
43
Cliftion:
Park Tower Drive Through,
Shahrah-e-Firdousi, Cliftion , Karachi.
For Delivery:
Ph: 111-KFC-KFC
(111-532-532
Chundrigar:
Muhammadi House,
I.I.Chundrigar Road,
Karachi.
For Delivery:
Ph: 111-KFC-KFC
(111-532-532
Commercial Area DHA:
21-C, Street 26th,
Badar Commercial
Area, Phase 5, DHA, Karachi.
For Delivery:
Ph: 111-KFC-KFC
(111-532-532)
Chicky Fun Area
Korangi Industrial Area:
Plot 28N, Sector 16,
Korangi Industrial
Area, Karachi.
For Delivery:
Ph: 111-KFC-KFC
(111-532-532)
M.T. Khan Road:
PIDC Building, M.T. Khan Road,
Karachi.
For Delivery:
Ph: 111-KFC-KFC
(111-532-532)
Chicky Fun Area
44
Machs:
Plot 35-F, MACHS, Karachi.
For Delivery:
Ph: 111-KFC-KFC
(111-532-532)
Separate Party Area & Chicky Fun Area
SMCHS:
Plot 6DA, 7DA, SMCHS, Karachi.
For Delivery:
Ph: 111-KFC-KFC
(111-532-532)
Chicky Fun Area
Khayaban-e-Ittehad:
88-C, 11th Street, Khayaban-e-Ittehad, Karachi.
For Delivery:
Ph: 111-KFC-KFC
(111-532-532)
Chicky Fun Area
Bahadurabad:
Shop # 9, Central Commercial Area,
K.C.H.S., Union Ltd, Block-3,
Bahadurabad, Karachi
For Delivery:
Ph: 111-KFC-KFC
(111-532-532)
Chicky Fun Area
Gulshan-e- Iqbal:
Plot # Z-C/8, Block 7, KDA Scheme # 24,
Gulshan-e-Iqbal, Karachi.
For Delivery:
Ph: 111-KFC-KFC
(111-532-532)
Chicky Fun Area
45
2) Lahore
Cavalry Ground:
Property No. 77,
Commercial Zone,
Cavalry Ground,
Ext Lahore Cantt.
For Delivery:
Ph: 111-532-532
Chicky Fun Area
LCCHS:
160/2, Block 2,
Phase-1 LCCHS,
Lahore
For Delivery:
Ph: 111-532-532
Chicky Fun Area
New Garden Town:
Plot 27 A&B, Ali Block,
New Garden Town,
Lahore.
For Delivery:
Ph: 111-532-532
Chicky Fun Area
Gulberg III:
90-B/1 Gulbarg III,
Lahore.
For Delivery:
Ph: 111-532-532
Chicky Fun Area
Jail Road:
Plot No. 2,
Shadman 2, Jail Road,
Lahore.
For Delivery:
Ph: 111-532-532
Chicky Fun Area
46
Multan Road:
Opposite Toyota Ravi
Motors, Near Shah
Pur Interchange Multan
Road, Lahore.
For Delivery:
Ph: 111-532-532
Mall Road:
70 - Copra Building,
The Mall Road,
Lahore.
For Delivery:
Ph: 111-532-532
DHA:
171/Y, Commercial Area,
Phase III, DHA,
Lahore.
For Delivery:
Ph: 111-532-532
Chicky Fun Area
Shadman 2 Jail Road:
Plot No. 2,
Shadman 2, Jail Road,
Lahore.
For Delivery:
Ph: 111-532-532
Chicky Fun Area
3) Hyderabad:
Thandi Sarak:
Unit No. 1,
Shah Latifabad,
Thandi Sarak, Hayderabad.
For Delivery:
Ph: 111-532-532 Chicky Fun Area
47
4) Islamabad:
Super Market:
11 - United Bakery
Building, F-6/2, Super
Market, Islamabad.
For Delivery:
Ph: 111-532-532
Chicky Fun Area
5)Rawalpindi:
Arab Square Murree Road:
Plot 2732, Singapore
Plaza, Arab Square,
Muree Road Rawalpindi.
For Delivery:
Ph: 111-532-532
Chicky Fun Area
Pindi 2:
Satellite Town,
Pindi.
For Delivery:
Ph: 111-532-532
Chicky Fun Area
6) Sialkot:
Cantt:
Aziz Shaheed Road,
Cantt., Sialkot
For Delivery:
Ph: 111-532-532
Chicky Fun Area
48
7)Multan:
Multan High Court:
Railway Services Club,
Bahawalpur Road
Opp. Multan High Court,
Multan.
For Delivery:
Ph: 111-532-532
Chicky Fun Area
8) Peshawar:
Shadman Chowk:
University Road,
Burjaman Plaza
Near Shadman Chowk,
Peshawar.
For Delivery:
Ph: 111-532-532
Chicky Fun Area
9) Faisalabad:
People’s Colony:
Plot 2-D, Commercial D
Ground, People's Colony,
Faisalabad.
For Delivery:
Ph: 111-532-532
Chicky Fun Area
10) Gujranwala:
G.T. Road:
Near G.D.A Trust
Plaza, G.T. Road,
Gujranwala.
For Delivery:
Ph: 111-532-532 Chicky Fun Area
49
11) Jhelum:
Jhelum Bridge G.T. Road:
Jhelum Cantt, Near
Jhelum Bridge GT Road,
Jhelum.
For Delivery:
Ph: 111-532-532
Chicky Fun Area
12) Sukkur:
Military Road:
Military Road, Near
Public School
Sukkur.
For Delivery:
Ph: 111-532-532
Chicky Fun Area
13) Murree:
Millenium Mall:
Millenium Mall,
Murree.
For Delivery:
Ph: 111-532-532
Promotion Information:
At the end of the year when
the company earns the profit, they should separate the small portion from its
profit for the sake of promotion. After that it should conduct a meeting of
marketing managers. They must decide that how much portion is used in
different promotions. Following are the promotions on which they should focus
and spend money for their beneficial of business.
50
Streamers
Pylon
Newspapers
Bill Boards
BCG
MATRIX
Stars
Cash Cows
Question Marks
Dogs
51
BCG:
BCG is stand for “Boston Consultant Group”. Following are the
components of the BCG Matrix.
Star:
Stars are high-growth, high share business or products. They often
need heavy investment to finance their rapid growth.
Cash Cow:
Cash Cow are low growth, high share businesses or products.
These established and successful SBU’S need less investment to hold their market
share. Thus they produce a lot gas that the company uses to pay its bills and to
support other SBUS that need investment.
Question Mark:
It is low share businesses units in high growth
markets. They required a lot of cash to hold their share. The management has to
think hard about which question marks it should try to build into stars and which
should be faced out.
Dogs:
It is low growth, low share businesses and products. They may
generate enough cash to maintain their themselves but do not promise to be large
sources of cash.
52
BCG Matrix:
STAR PRODUCTS QUESTION MARK
Zinger Madness Twister
53
Strategy
For
Growth &
Downsizing
Market Penetration
Market Development
Product Development
Diversification
54
Market Penetration:
When there is no innovation in
market and product such situation is called market penetration.
Market Development:
Such as situation in which
market should be developed and product cannot be is called market
development.
Product Development:
Such situation when there is
development in product but no development take place in market called product
development.
Diversification:
The situation in which market and product
sectors are developed and newly take place called diversification.
55
Functional Strategies for growth &
downsizing:
56
Conclusion
57
Conclusion:
At the end we conclude that KFC is one of the
fastest growing Fast Food Company in Pakistan, which provide quality products
and quality services to its customers. It is biggest fast food chain in the world in
which we survey that they providing different deals to their customers. They have
several branches in all over the Pakistan. KFC makes progress in very short time.
During survey we take the information about markets strategies, segmentation
and targeting. We observe the micro and macro environment of KFC that how
they effected KFC and also mentioned the SWOT analysis and marketing mix.
58
Appendix
59
Questionnairs
Q#1 : Tell us about the mission and vision of the CUPOLA?
Q#2 : Tell us about the business portfolio of CUPOLA?
Q#3 : What is the logo of KFC?
Q#4 : What is the slogan of KFC?
Q#5 : what is the launching time of KFC?
Q#6 : Tell us about the current Marketing Mix?
Q#7 : What external and internal Factors affect your Brand?
Q#8 : What is the product line of KFC?
Q#9 : What is the competitive advantage you gain over competitors?
Q#10 : Which customer driven strategy your product follow?
Q#11 : What is your target marketing?
Q#12 : Which advertising media you used?
Q#13 : what is your price strategy at the time of launching?
Q#14 : Which promotion mix tool you used?
60
References
1) M. Shah Rukh Hashmi
Asst. Brand Manager
27-A Ali Block
New Garden Town Lahore
Email: shahrukhhashmi@cupola.com.pk
2) www.kfcpakistan.com
3) www.cupola.com.pk