PROJECT REPORT

ON
“Study of the Marketing Strategies of Kentucky Fried
Chicken”
SUBMITTED TO
GURU NANAK INSTITUTE OF MANAGEMENT

IN PARTIAL FULFILMENT OF FIRST YEAR FOR THE DEGREE OF

BACHELOR OF COMMERCE
HONOURS
(2017-2020)
SUBMITTED TO - SUBMITTED BY-
MRS MAMTA SHAH RITIKA BALIYAN

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 CERTIFICATE
This is to certify that Ms Ritika Baliyan student of
B.com(Hons) batch 2017-2020 , enrollment no 01813088817
has successfully completed her minor project report on the
topic “THE STUDY OF MARKETING STRATEGIES OF KENTUCKY
FRIED CHICKEN (KFC)”.
This project is submitted in the partial fulfilment of the award
for bachelor of commerce .This project has the requisite
standard and to the best of my knowledge, no part has been
reproduced from any other minor project, monograph,
report or book.

I wish her all the best in life.

MRS MAMTA SHAH

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 ACKNOWLEDGEMENT

In the accomplishment of this project successfully, many

people have best owned upon me their blessings and the
heart pledged support, this time I am utilizing to thank all the
people who have been concerned with this project.
Primarily I would thank god for being able to complete this
project with success. Then I would like to thank my project
incharge Mrs. Mamta Shah, whose valuable guidance has
been the ones that helped me patch this project and make it
full proof success. Her suggestions and her instructions have
served as the major contributor towards the completion of
the project.
Then I would like to thank my parents and friends who have
helped me with their valuable suggestions and guidance has
been very helpful in various phases of the completion of the
project.
Last but not the least I would like to thank my classmates
who have helped me a lot.

RITIKA BALIYAN

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 DECLARATION

I, RITIKA BALIYAN, student of B.com, studying at Gurunanak

Institute of management, New Delhi, hereby declare that the
project report on “Study of marketing strategies of KFC”
submitted to the institute in partial fulfilment of the
requirement for the award of B.com(hons) is the original

work conducted by her.

The information given in this report is authentic to the best of

my abilities and knowledge.

RITIKA BALIYAN

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 CONTENT
NO. CONTENT PAGE SIGNATURE
NO.
1 Summary 8
2 Introduction 10
3 Objective of the study 13
4 History 14
5 Company overview 15
6 Mission Statement 17
7 KFC Current Product 21
8 KFC Recipe 23
9 KFC India 24
10 Globalisation 27
11 Philosophy of KFC 28
12 Segmentation 29
13 Marketing Strategies-4Ps 34
14 SWOT analysis 42
15 PESTEL analysis 47
16 Competitive analysis -KFC 51
&Mcd
17 Criticism of KFC 53
18 Economic analysis of 55

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 market
19 PORTERS analysis 59
20 Market Share 63
21 Research Methodology 64
22 Limitations of the study 74
23 Data Analysis 76
24 Suggestion and Conclusions 83
25 Bibliography 88
26 Questionnaire 89
27 Response 92

FIGURE CONTENT
S.N CONTENT/FIGURES PAGE SIGNATUR
O NO E
1 Fig 1.1 55
2 Fig 1.2 57
3 Fig 1.3 57
4 Fig 2.1 64
5 Fig3.1 77
6 Fig 3.2 78
7 Fig 3.3 78
8 Fig 3.4 79
9 Fig 3.5 79
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10 Fig 3.6 80
11 Fig 3.7 81
12 Fig 3.8 81
13 Fig 3.9 82

SUMMARY:

This report has been prepared with a specific purpose in

mind. It outlines the history and current scenario of the
Kentucky Fried Chicken globally and locally. The first part of
the study takes us through the present state of affairs of the
food industry and Kentucky Fried Chicken Company globally.

The report contains a brief introduction of Kentucky Fried

Chicken and Kentucky Fried Chicken India and a detailed
view of the tasks, which have been undertaken to analyse the
market of KFC i.e. we have performed Competitive, PESTLE
and SWOT analysis of Kentucky Fried Chicken and PESTLE and
SWOT analysis of KFC India in order to identify areas of
potential growth for KFC . We have also given a brief

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description of Trends and Forces that are affecting KFC
globally.

The main objective of this project report is to analyse and

study in efficient way the current position of KFC . The study
also aims to perform Market Analysis of KFC & find out
different factors effecting the growth of KFC. Another
objective of the study was to perform Competitive KFC
analysis between and its competitors. Apart from these
objectives this study is also conducted to understand the
Customer preferences towards various KFC products.

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INTRODUCTION OF COMPANY - KFC

KFC is a fast food restaurant that specializes in chicken.

Today, the company owns around 19500 units and operates
in more than 115 countries. Kentucky Fried Chicken (KFC)-
one of the most known fast food chains in the world started
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in the early 1930's by Kernel Sanders in the Southern USA as
a small franchise operation with the first unit in Salt Lake City.
Colonel Sanders has become a well known personality
throughout thousands of KFC restaurants Worldwide. Quality,
service and cleanliness (QSC) represents the most critical
success factors to KFC's global success.
Food, Fun & Festivity, this is what KFC is all about. Leading the
market since its inception, KFC provides the ultimate chicken
meals for the Chicken Loving Nation. Be it Colonel Sanders
secret Original Recipe Chicken or the Hot & Spicy version,
every bite brings a YUM on the face. At KFC we proudly say:

KFC has more than 11,000 restaurants in more than 80

countries and territories around the World. In 1971,
Heublein, Inc. acquired KFC, soon after; conflicts erupted
between the Colonel (which was working as a public relations
and goodwill ambassador) and Heublein management over
quality control issues and restaurant
KFC is part of Yum! Brands, Inc., however in the case of India
KFC builds the relation of Quality Service and cleanliness for
Customer.

KFC was acquired by PepsiCo in 1986; it had grown to

approximately 6,600 units in 55 countries and territories. Due
to strategic reasons, in 1997 PepsiCo spun off its restaurant
businesses (Pizza Hut, Taco Bell and KFC)

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Perfecting its secret recipe of 11 herbs and spices in 1939,
KFC has come a long way, with over 10,000 outlets in the
world; KFC has maintained its title, for the last 60 years, of
being “The Chicken Experts”.

Objectives of the Study:

 The main objective of the project is to analyze and study
in efficient way the current position of KFC.
 To perform PESTLE and SWOT analysis of KFC globally as
well as locally. This would help us identify areas of
potential growth.

 To perform Porters Five Force Analysis of KFC all around

the world. This would give the brief analysis of the
organization.

 The study was aimed to perform Market Analysis of KFC

Company & find out different factors effecting the
growth of KFC.
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  Another objective of the study was to perform
Competitive analysis between KFC and its competitors.
 To understand the economic analysis of the market of
the KFC product in which study of KFC product through
Micro and Macro environment could be done.
 To understand the reasons behind the purchase of KFC
products.

KFC specialized in chicken and they says, “No body’s

cooking like KFC today and we are the chicken
experts”

“There is no competitor for spicy chicken which is

made by KFC”

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History

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Harland Sanders,
founder of the
original Kentucky
Fried Chicken, born in
1890, just outside
Henryville, Indiana.
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. He began serving meals to travellers on the dining
table in the living quarters of his service station because he
did not have a restaurant. It is here that Sanders began
experimenting with different seasonings to flavour his
chicken which travellers loved and for which he soon became
famous. He then moved across the street to a motel and
restaurant, which seated 142 people. 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. In 1939, his establishment was first listed
in Duncan Hines’ “Adventures in Good Eating”.
In 1952 the Colonel Harland Sanders begins actively
franchising his chicken business by travelling from town to
town and cooking batches of chicken for restaurant owners
and employees. When the reaction was favourable The
Colonel awards Pete Harman of Salt Lake City with the first
KFC franchise.

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Company overview:

Colonel Harland sanders, born September 9, 1890, actively

began franchising his chicken business at the age of 65.
Now, the Kentucky fried chicken business he started has
grown to be one of the largest retail foodservice systems
in the world. And colonel sanders, a quick service
restaurant pioneer, have become a symbol of
entrepreneurial spirit. More than two billion of the
colonel’s “finger lickin’ good” chicken dinners are
served annually. And not just in America. The colonel’s
cooking is available in more than 82 countries around the
world. When the colonel was six, his father died. His
mother was forced to go to work, and young Harland had
to take care of his three year old brother and baby sister.
This meant doing much of the family cooking. By the
age of seven, he was a master of a score of regional dishes.

At age 10, his first job working on a nearby farm for $2

a month.

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When he was 12, his mother remarried and he left his
home near Henryville, Ind., for a job on a farm in
Greenwood, Ind. He held a series of jobs over the next
few years, first as a15-year-old streetcar conductor in
New Albany, Ind., and then as a 16-year-old private,
soldiering for six months in Cuba.

After that he was a railroad fireman, studied law by

correspondence, practiced in justice of the peace court,
sold insurance, operated an Ohio River steamboat ferry, sold
tires, and Operated service station. When he was 40, the
colonel began cooking for hungry travellers who stopped
at his service station in Corbin, KY. He didn’t have a restaurant
then, but served folks on his own dining table in the living
quarters of his service station. As more people started
coming just for food , he moved across the street to a motel
and restaurant that seated 142 people . Over the next nine
year, he perfected his secret blend of 11 herbs and spices and
the basic cooking technique that is still used today.

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Mission statement

“TO BE THE LEADER IN WESTERN STYLE

SERVICE RESTAURANTS TROUGH FRIENDLY
SERVICE , GOOD QUALITY FOOD AND CLEAN
ATMOSPHERE ”.

Goals of KFC

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  Build an organization dedicated to excellence.

 Consistently deliver superior quality and value in our

products and services.

 Maintain a commitment to innovation for continuous

improvement and grow, striving always to be the leader
in the market place changes.

 Generate consistently superior financial returns and

benefits our owner and employees.

To establish in India our position as leading WQSR (Western

Quick Service Restaurant) chain, serving good value.
Innovative chicken-based products .Consistently, providing a
pleasant dining experience, with fast friendly, in a clean a n d
convenient location . At all times we must be dedicated to
providing excellent and delighting customers.

Values of KFC

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 Focus all our resources to our restaurants
operation because that is where we serve
our customers.

 Reward and respect the contributions of each

individual at KFC.

 Expand and update training with time and be the

best we can be and more.

 Be open, honest and direct in our dealings with one

and other

 Commit ourselves to the highest standards to the

personal and professional integrity 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.

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Increase profitability of KFC through the
following:

 Reduced overhead costs

 Increased efficiencies

 Improved customer service

 Cleaner restaurants

 Faster and friendlier service

 Continued high quality products

 Resolve franchise problems in the United States

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Current Products

 Kentucky fried chicken

 Zinger burger

 Krushers

 GameBox

 Twister
 Box master

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  Chicken Bucket

 Hot wings

 Fries

 Corn on the cob

 Zing Kong

 Snacker(chicken & veggie)

 Veggie Feast

 Coleslaw

 Chicken Thali

 Veg Finger

 Snack Box

 Sundae

 Soft Twirl

Original Reci2

KFC ORIGINAL RECEIPE

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  6 cups Crisco Shortening
 1 eggs well beaten
 2 cups Milk
 2 cups Flour
 2 teaspoons ground pepper
 3 tablespoons salt
 1 teaspoon MSG
 1/8 teaspoon Garlic Powder
 1 dash paprika
 2 Frying Chickens cut into 6 pieces

Place shortening into the pressure cooker and heat over

medium heat to the shortening reaches 400F. In a small bowl,
combine the egg and milk.

In a separate bowl, combine the remaining six dry

ingredients. Dip each piece of chicken into the milk until fully
moistened. Roll the moistened chicken in the flour mixture
until well coated. In groups of four or five, drop the covered
chicken pieces into the shortening and lock the lid .When
pressure build sup cook for 10 minutes.

KFC India
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KFC is the world’s 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!

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KFC has introduced many offerings for its growing customer
base in India while staying rooted in the taste legacy of
Colonel Harland Sander’s 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.

KFC Outlets in Delhi

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 KFC in East Delhi
KFC in Central Delhi
Shipra
A-12, Inner Circle,CP,
Mall,Indirapuram,
Delhi-110001Store
Delhi-201012Store
Timing:8:30am to 11pm
Timing:11am to
11pmV3S Mall,Laxmi
Nagar

KFC in Noida KFC in West Delhi

Sector 18, Noida City Square
-201301Store Mall,Rajouri
Timing:11am to Garden,Delhi-
11pmGreat India 10027Store
Place, Noida Timing:11am to 11pm

KFC in South Delhi KFC in Gurgaon

Back Wing,Select Citywalk
Mall,Saket, Delhi-
110017Store Timing:11am
to 11pmVasant Square
Mall,Vasant Kunj-
110070Store
JMD Regent Mall,Mall
Road,Gurgaon-Store
Timing:11 am to 11
pmAmbience
Mall,Gurgaon

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Globalization of KFC
Reasons for going overseas KFC moves beyond domestic
markets into international markets for the following reasons:

* Potential demand in foreign market

* Saturation of domestic markets

* Follow domestic customers that go abroad

* Bandwagon effect

* Comparative advantage – some countries possess unique

natural or human resources that give them an edge when it
comes to producing particular products. This factor, for
example, explains South Africa’s dominance in diamonds, and
the ability of developing countries in Asia with low wage rates
to compete successfully in products assembled by hand.
Technological advantage – In one country a particular
industry, often encouraged by government and spurred by
the efforts of a few firms, develops a technological advantage
over the rest of the world. For example, the United Sates
dominated the computer industry for many years because of
technology developed by companies such as IBM. “We plan
to expand to wherever our customers are and there is no
limit to our expansion”, said Sandeep Kohli, managing
director (Indian subcontinent) of Yum! Restaurants
International (YRI), whose flagship brand is KFC.

As KFC expanded their operation in various countries in the

world market; so it is impossible to cover all the operations of
KFC in this report. So we focused on its operational strategy,
motive behind operations etc in selected countries.
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PHILOSOPHY OF KFC

The CHAMPS Program

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.
THE CHAMPS
These are
Cleanliness
Hospitality
Accuracy
Maintenance of Facilities
Product Quality
Speed of Service

CHAMPS is the philosophy to ensure that the

customer has the consistent quality experience in
every restaurant, everyday, on every occasions and you
will be playing role in delivering CHAMPS to our
customers.

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Current target market

Segmentation

KFC has divided the market of India into distinct groups

of customers with different demands, tastes and behaviour
who require separate products or marketing mix. Initially, the
company utilized niche marketing to promote its products to
the consumers. But as a result of increased competition, the
company changed its marketing strategy in order to expand
its market share.
In India the niche marketing is being used for particular
classes of people.

 Geographic Segmentation
Geographic segmentation refers to the process of dividing the
market into various geographical regions such as states,
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 cities, neighbour hoods, and countries . KFC has different
outlets in different countries. The products are sold
depending on the needs of customers in a given geographic
unit. Moreover, the geographic unit must be measurable to
allow the firm to function efficiently. Most outlets of KFC are
located in the urban areas. This gives the company an
opportunity to reach as many customers as possible . KFC
operates several stores in the main cities of the world. Its
products are designed in such a way that they accommodate
the cultural differences of people residing in these towns.

 Demographic Segmentation
Demographic segmentation refers to dividing up the market
based on the income, gender, religion, family, race,
occupation, and nationality of the consumers (Cravens &
Piercy, 2006). KFC has demographically segmented its market
to cater for the different customers who reside in various
cities where it has its outlets. KFC considers the following
demographic factors in its market segmentation.
 Age
Age is one of the important demographic variables that are
used in market segmentation. The needs and wants of
customers always change as their age advances . KFC does
not consider age limit. It provides products that suit people of
all ages. This has given it an opportunity to expand rapidly in
different countries, since it can accommodate the needs of
individuals from all ages including kids, youths, and elderly
people. The firm also considers the life cycle of its consumer.
They are served with the right kind of food that they require

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 at that particular time. For instance, children are always
served a meal with toys while elderly person – veggie burger.
This gives it a competitive advantage over other fast food
restaurants that do not consider the life cycle of their clients.
In this case, several customers are interested in the foods,
since their needs are always met.
 Income
Income is also another important demographic variable that
KFC considers while conducting market segmentation. An
individual’s level of income determines their ability and
willingness to purchase products and services. Income is the
primary decisive factor that producers consider before
availing a particular type of product to consumers. Income
influences the purchasing power of consumers. The
customers who earn low incomes may not be in a position to
purchase the products which they desire . On the other hand,
consumers who receive a substantial amount of income may
not be satisfied with the existing goods and services provided
in the market. In this case, the products offered by KFC target
people from the upper class who have a high income.
However, they have introduced the economy meals to attract
individuals who earn low incomes or come from the middle
and lower class. Adding foods that appeal to people who
come from the middle and lower class is a competitive
strategy that would allow the company to create more value
for its products and serve a variety of market segments.
 Social Class
Social class plays an important role in market segmentation. It
is important for a firm to understand the social class of a
particular people before they introduce a product in a given
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market segment. Most of the products offered by KFC are
expensive. As such, their market strategy targets people
coming from the upper class, middle class, and lower class. In
most of their market segments, their products are out of
reach for people who belong to the poor working class.
People from the poor working class consider their products
as a luxury. In this case, they have not created value for their
products for people from this class. The demographic
segmentation of KFC also focuses on the ethnic group of
individuals where they operate. For instance, the company
introduced Halal Foods to cater for the interests of Muslims
who are interested in their products . This has enabled the
company to expand its market share and appeal to people
from different ethnic backgrounds.

 Psychographic Segmentation
Psychographic market segmentation refers to the market
division based on various characteristics such as lifestyle,
social class, and personality characteristics . KFC has divided
its market based on various psychometric variables such as
personality characteristics and lifestyle. Concerning
personality characteristics, its products target the
authoritarian and ambitious consumer. Under social class, the
firm has segmented its market to meet the needs of people
from the middle and upper class. Psychometric segmentation
is the most important type of market segmentation utilized
by KFC to appeal to the different lifestyles of its consumers .
For instance, people from both upper and middle class are
interested in super-quality products. KFC can provide super-
quality chicken products that appeal to those who enjoy
luxury. As such, the firm has gained trust from the middle and

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upper class. Most consumers from these two social classes
identify themselves with the brand created by KFC.

 Behavioural Segmentation
Behavioural market segmentation is where a market is
divided based on the customer’s level of knowledge, attitude,
and response towards a particular product . Under
behavioural segmentation, KFC has differentiated price,
quality, and taste. In the market, there are customers who are
taste conscious, quality conscious, class conscious and those
who are conscious about the quality and price . KFC is also
aware of the needs of its consumers and provides products
that satisfy their wants. KFC also offers foods that are suited
for different occasions. For instance, they allow their
customers to celebrate various occasions where they are
provided with foods that meet the expectations of their
clients. They offer popcorn chicken for couples who are
celebrating Valentine at a discounted rate. Behavioural
market segmentation has enabled KFC to attract customer’s
loyalty, since they are provided with what they require at the
right time. The ability of KFC to divide its market based on
various characteristics has allowed it to remain one of the
most famous international fast food company.

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MARKETING STRATEGIES OF KFC

There are different strategies adopted by KFC for different

events. They market their products on diff erent
events and in diff erent activities as they are helping SOS
village. According to KFC, kids become the future permanents
customers and we know very well that without any
marketi ng strategy no market and no product is
successf u l b e c a u s e w e 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 also offer free home delivery.

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  KFC open their outlets on reachable places.

 KFC menu consists of more than 30 products.

 KFC gives more priority to Family

The 4Ps Marketing Strategy of KFC

KFC operates in a competitive market and must utilize 4ps

marketing mix to allow it remain ahead of its competitors in
the industry.
There are 4 P’s of Marketing:
1.PRODUCTION
2.PRICING
3.PROMOTION
4.PLACEMENT

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PRODUCT-
B a s i ca l l y t h e p ro d u c t i s a ny t h i n g t h at b e o ff e re d
to a m a r ke t fo r attention, acquisition, use, or consumption
that might satisfy a want or need. KFC is specially dealing
in the chicken products; Basically, KFC has the special
raspy for chicken products that is why, KFC known as a
chicken specialist all over the globe. KFC target the Asia
and east side because they observe that they people are
like the chicken products,
s o t h e y e nte r i n t h e m a r ke t d u e to t h e d e m a n
d o f t h e i r c h i c k e n products. KFC product variety of
product in the chicken, those products are:

PRODUCTS:
•Original recipe® chicken
•Extra Tasty Crispy TM chicken
•Hot Wings TM pieces
•Tender Roast® chicken
•Chunky Chicken pot pie
•Kentucky Nuggets®
•Colonel’s Crispy Strips®
Page 36
•Honey BBQ sandwich
•Original Recipe® Sandwich
•Tender Roast® Sandwich
•Triple Crunch® Sandwich
•Triple Crunch ®Zinger® Sandwich

BRAND-

There are three brands of the KFC:

1. TACO BELL
2. PIZZA HUT
3. LONG JOHN SILVERS

PRICE-
It is another marketing mix strategy used by the firm to
remain competitive in the market. KFC utilizes market
skimming to determine price for its products. Most products
of KFC are priced highly and majorly target the major class
and middle class individuals. However, the company has
introduced economy foods whose prices are relatively low to
suit the demands and needs of the lower class people. The
prices of the foods provided by KFC are always inclusive of
the variable and fix costs. Such costs include exercise duty
and the tax imposed by the government in various regions
where it operates. The company compares its price with
those of the competitors such a McDonalds and Subway

Page 37
before deciding on the appropriate price to settle on. For
instance, if McDonald’s provides similar product at a lower
price, KFC will also lower the price to retain its customers.

Calculation of the price under Cost Based Pricing Strategy:

Total Pounds of Chicken Served in KFC Restaurant

Annually
=1.914 Billion
Total KFC Chicken Pieces Sold Annually
= 5.89 Billion
Total Retail Sales
= $8.9 Billion
Sales Price of per Chicken Piece
= Total Retail Sales / Chicken Pieces sold
= $8.9 Billion / $5.89 Billion
=$1.51

We assume that Fixed Cost is = $6000000000

Variable Cost
= $675000000
Profit Margin
is Or Mark Up = $225000000(25% of Sales)
Per Unit Variable Cost
= $675000000 / 5890000000 =$
0.115

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Unit Cost= Variable Cost + Fixed Cost / Chicken pieces Sold
= 0.115 + 6000000000 / 5890000000
= 0.115 + 1.02
= $1.135

Now suppose manufacturer wants to earn 25% mark up

on sale.
The manufacturer mark up price is calculated:
Mark Up Price
= Unit Cost / (1 – Desired Return on Sales)
=1.135 / (1-.25)
= 1.135 / 0.75
= $1.51

PLACE-
It is another factor that plays a critical role in market
competition. It refers to the channels of distribution, location
and the intermediaries involved before the final product
reaches the consumer. Most of the outlets of KFC can be
accessed easily by the consumers. Most outlets are located in
the major cities at strategic locations where customers can
easily access. KFC also locates its outlets next to schools,
market areas, colleges, and cinemas so as to attract more
customers.

Page 39
PROMOTION-

It also plays an important role in ensuring that the products

reach the intended customers in the market. Promotion is
also used to educate the customers about the existence of a
product and their usage. KFC uses reminder advertisements
to inform consumers about the different products they offer
in the market to encourage repeat purchase. The company
utilizes a slogan known as finger licking to promote its
products in various market segments. Finger licking is an
advert that is used to remind consumers of their previous
experience about their products. This encourages to do
repeat purchase. The company also utilizes sponsorship as a
promotional strategy to increase the image of its brand in the
market. For instance, it sponsors a cricket team in Australia.
Besides, KFC uses sales promotion to reach potential
customers. Other promotional strategies utilized by the firm
include coupons, exhibits and entertainment to promote its
products and increase its sales.

KFC in its advertisements says;

“Nobody does chicken like KFC”
“We do chicken right”
Hence, focuses on product advertising. KFC does mass selling
in order to reach its target market (as it has trickle down). KFC
in its ads try to convert people to people who eat boring
bland fast food over to KFC.
The message conveyed in the ads is recognition for the brand.
KFC does competitive advertisement with its head on
competition with McDonalds. Regarding this KFC uses Pricing
below competition strategy.

Page 40
KFC sponsor’s many NGO’s and other social welfare
organizations. They also offer different deals according to the
season and occasions.

Sales promotion

For the sales promotion KFC introduced their goods like

watches , key chain ,etc to the customers
.

Page 41
SWOT analysis of KFC are:

 STRENGTHS
 WEAKNESS
 OPPORTUNITY
 THREATS

Page 42
 STRENGTHS

1. Goodwill and reputation-

The company certainly has earned a good name and
reputati on 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.

2. Employee Loyalty

Page 43
 Employee Loyalty is one of the major strengths of
KFC. The turnover rate in the company is amongst the
lowest in the industry.

3. Customer Loyalty
Despite gain by Boston Market and Chick-fill A,
KFC customer base remained loyal to the KFC
brand because of its unique taste. KFC has
continued to dominate the dinner and take out
segment of the Industry.

4. Ranks highest among all chicken restaurant chains

for its convenience and menu variety. It generates $1B
revenue each year.

WEAKNESSES

 K F C w a s losing market share

as other Chicken chain increased sales at a faster
rate.

 KFC share of Chicken Segment sales fell from 71

percent 1999 , to less than 56 percent in 2009 ,
a 10 -years drop of 15 percent.

 Huge competition in this segment.

 India is sti ll mostly a vegetarian dominated

Cultured society. South India is especially very

Page 44
 much so. This may reduce the market share of the
company.

 KFC has not yet invested much on R&D, and

innovati ng new products for Indian Markets. This may
lead to failure of their products as t h e y a r e n o t i n
line with the
Indian mindset, 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 g e n e r a ti o n o f d e m a n d i n t h e f u t u r e .
W i t h m o r e t h a n 7 0 % o f t h e 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.

Page 45
  Large Youth population: I n d i a h a s a v e r y
l a r g e s h a r e o f y o u t h populati on as
compared to other countries. More than 60%
of the populati on is under the age of 30yrs. As
the young generati on are more open to fast
foods and demand it more, this is a good news
for the company.

 New variety: Company can also come up with new

variety in the menu like Pizzas, garlic breads to attract .

THREATS

 Competition:
Competitor companies like McDonalds are fast
catching up with the market. McDonald’s with sales of
more than 19 billion in 1999, accounted for 15 percent
of the sales of the nation’s top 100 restaurant chains.

 Organisations like PETA People for Ethnic Treatment

for Animals have given a bad name to the company
which may prove
d i s a s t r o u s t o t h e i m a g e o f t h e fi r m . C u r r e n t
l y, K F C i s u n d e r massive attacks from animal
Page 46
 organisations, questioning the
wayKFC ’s suppliers are threatening the chicken,
before they gotslaughtered. Anti-KFC campaigns,
such as the one from PETA are affecting KFC’s brand
image in a negative way and result in direct dollar losses,
as less people are consuming KFC chicken

 Saturated US Market: Now KFC cannot rely on

just its home market to generate sales. As the
US markets are already
s a t u r a t e d a n d l e a v e n o o r l i tt l e s c o p e f o r g r
o w t h , c o m p a n y necessarily needs to look
at offshore foreign markets to generate sales and keep
up the profits.

Environmental factors and opportunities

Page 47
Political :
The operations of KFC are affected by the government
policies on the regulations of fast food operation. Currently
government are controlling the marketing of fast food
restaurant because of health concern such as cardio vascular
and cholesterol issue and obesity among the young and
children in the country. Governments also control the license
given for open the fast food restaurant and other business
regulation need to follow such as for a franchise
business. Good relationship with government in giving
mutual benefits such as employment and tax is a must for the
company to succeed in any foreign market.

Economic:
Though for last 1 year there was economic slowdown all
across the globe but the sales of KFC and other fast food
chains did not slow down to that extent that of other sectors
in. The GDP (Purchasing Power Parity) is estimated at2.965

Page 48
trillion U.S. dollars in the year 2010. The GDP- per Capita
(PPP) was2700 U.S. dollars as estimated in 2008. The GDP-
real growth rate in 2007was 8.7%. India has the third highest
GDP in terms of purchasing power parity just ahead Japan
and behind U.S. and China. Foreign direct investment rose in
the fiscal year ended March 31 2007 to about $16 billion
from just $5.5 billion a year earlier. There is a continuous
growth in per capita income; India’s per capita income is
expected to reach 1000 dollars by the end of 2007-08 from
797 dollars in 2006-07. This will lead to higher buying power
in the Hands of the Indian consumers. So taking into
considerations the economic factors of India KFC is safe. The
only danger to it will be if there is a terrorist attack in India
and the victim is KFC.

Socio cultural:
India is the second most populous nation in the world with
an approximate population of over 1.1billion people. This
population is divided in the following age structure: 0-14
years – 31.8%, 15-64 years – 63.1% and 65years and above –
5.1%.There has also been a continuous increase in the
consumption of fast food in India. The social trend toward
fast good consumption is changing and India has seen an
increase of 90% fast food consumption from the year 2002-
2007. This increase is far greater than the increase in the BRIC
nations of Brazil (20 per cent), Russia (50 per cent) and China
(almost 60 per cent).Thus this shows a positive trend for
fast food industries in India.

Page 49
Technological:
The Indian fast food Industry is heating up with a lot
of foreign players entering the Indian market. The
technological knowhow and expertise will also enter the
Indian market with an increase in competition. With the
lower rates and increase technology the fast food counters
are attracting youth by giving them attractive deals. For e.g.
KFC and Domino’s pizza. For a fast food restaurant,
technology does not give a very high impact on the company
and it is not a significant macro environment variables.
However KFC should be looking to competitors innovation
and improve itself in term of integrating technology in
managing its operation. For example in inventory system,
supply chain management system to manage its supply , easy
payment and ordering systems for its customers and wireless
internet technology. Implementation of technology can make
the management more effective and cost saving in the long
term. This will also make customer happy if cost savings
results in price reduction or promotional campaign discount
which will benefits them from time to time.

Environmental:
As one of world largest consumer of beef, potatoes and
chicken, KFC always had been critics for world
environmentalist. This is because high consumption of beef
causing the green house effect by methane gasses coming
from the cow’s ranch. Large-scale plantation has effect the
environment and most of green forest opening for plantation
activities .Vegetarian environmentalist criticizes the fast-food
giant for cruelty to animals and slaughtering. In America,

Page 50
once KFC want to introduce whale burger causing uproar
because whales are endangered species. Before using paper
packaging, KFC once had been criticized for being insensitive
to pollution because of using ne based packaging for its
food products. Imagine millions of people purchase from fast
food operator and how is the impact to world environment
by throwing away those hard to recycle packaging .Our world
is getting concern on environment issue and
business operating here should not just care for profit, but
careful usage of world resources for sustainable development
and care for environment safety and health for our future
generation. Critics and concern from all public or activist
should be review and support if necessary to ensure we play
our social responsibility better.

Legal factors:

As a certified fast food operator, there are many regulations

and procedures that KFC should follow. For example is the
Halal certification that becomes a concern to Muslim
consumers. KFC should protect its integrity and consumer
confidence by ensuring all materials and process are as
claimed or must followed . Other legal requirement that the
business owner should follow as stipulated in laws are such
as operating hours, business registration, tax requirement,
labor and employment laws and quality & environment
certification (such as ISO) in which the outlet has been
certified. The legal requirement is important because the
offenders will be fined or have their business prohibited from
operating which can be disastrous.

Page 51
 Competitive analysis

Competitors
You cannot enjoy the business without competitors. No
organization can afford to ignore the competitors. It is very
important for a marketing managers 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 are
Mc Donald

COMPETITIVE ADVANTAGE

KFC McDonalds

Spicy Products Burger and French Fries

Indian people like spicy
products instead of boiled
food

Arabian rice and Zinger Big Mac

Burger

Free Delivery Charges for home delivery

Page 52
Chicken is eaten by every com Beef is banned in some community
munity

Local Staff and Highly Qualified Its Staff consist of simple

because local staff can better Graduates and give them training
deal with the customers
KFC uses McDonalds Uses Top To Bottom
Top to Bottom and Bottom Approach
to Top Approach
In Management.

KFC is co branding with the No such cases

Walls or Yum

Page 53
Criticism of KFC
KFC has been criticized for different things; Critics accuse KFC
offences against animal protection regulations. Those
disputed animal protection organization PeTA (People for the
Ethical Treatment OF Animals) started for its part 2003 a
world-wide action with the name “Kentucky Fried Cruelty” ,
2003 joined Pamela Anderson PeTA and the campaign against
KFC, which pushed consumers to boycott KFC until a better
treatment of the “chickens”.PETA undercover investigations
and videos of these and other KFC suppliers purport to show
chickens being beaten, ripped apart, and thrown against walls
contradict KFC’s claims. PETA has criticized some of the
practices of chicken breeders, such as beak trimming and
overcrowding, PETA states that they have held more than
12,000 demonstrations at KFC outlets since 2003 because of
this alleged mistreatment of chickens by KFC suppliers.

Greenpeace accused KFC of destroying the Amazon

Rainforest. This is because KFC bought their soy they use for
chicken food from Cargill. The soy has been traced back to
the European KFC. Cargill has reportedly been exporting soy
illegally for several years. The Greenpeace organization
researched the issue and brought it to the attention of the
parent company YUM! Brands, Inc.

KFC has a long time to market with new products. Because of

the nature of the chicken segment of the fast food industry,
innovation was never a primary strategy for KFC. However,
during the late 1980’s, other fast food chains, such as
McDonald’s, began to offer chicken as a menu option. During
this time, McDonald’s had already introduced the McChicken

Page 54
while KFC was still testing its own chicken sandwich. This
delay significantly increased the cost of developing consumer
awareness for the KFC sandwich.

Conflicting cultures of KFC and Pepsi Co, While KFC’s culture

was largely based on the Colonel’s laid back approach to
management, while PepsiCo’s culture is more of a “fast track”
attitude. Employees do not have the same level of job
security that they enjoyed before the PepsiCo acquisition.

The advertising campaign of KFC does not specifically appeal

to any segment. It does not appear to have a consistent long-
term approach. The U.S. has enormous changes in its
demographics. Single-person households have increased
from 12% in 1970 to 25% in 1995. With this kind of dramatic
change, KFC does not have a proper approach to its target
market.

Page 55
Economic Analysis of Market

Fig 1.1

The market in this context refers to a number of all actual

and potential buyers of a product. T h e s e b u y e r s h a v e a
n e e d t o satisfy their need through exchange
(Graphical 1). These needs makeup the demand for
parti cular products and services .
S e v e r a l c o m p o n e n t s m u s t b e considered, as all
these components have a direct or indirect impact on KFC’s
success. Changes in the below described components over
the last couple of years have led to big changes in people’s
atti tudes towards healthy food. It explains why
Australians today want to eat healthy and nutritious-rich
food in order to keep themselves healthy and that KFC must

Page 56
adjust their range of product and their company image to
appeal to these new expectations, people have.

Macro environment

KFC operates in a larger macro environment of forces that

creates opportunities, but also threats. A company such
as KFC usually cannot infl uence trends in the macro
environment, as they affect people and organisations on a
larger scale.

However, KFC has to carefully examine macro

environmental trends and must create competitive
responses to such trends. There are six major macro
environmental forces KFC has to take into account.

Fig 1.2 given below

Page 57
 Company Competitors

KFC

Consumer

Micro
Environment

Fig 1.3
Micro environment
The microenvironment consists of all
f o r c e s t h a t a r e c l o s e t o K F C , a n d o n which
KFC has an impact. They directly
a ff e c t K F C ’ s a b i l i t y t o s e r v e i t s
c u s t o m e r s . T h r e e major components influence KFC’s
micro environment

COMPETITORS
COMPETITOR
Page 58
Because the fast food market in India is highly competitive,

KFC faces a wide number of direct and indirect

competitors. KFC’s main competitors are fast food
chains such as McDonald’s and Domino’s, which are already
well established throughout
India.McDonalds’s in parti cular is a direct competi to
r, as they have already successfullyintroduced their
Salads plus line, which directly targets ‘healthy food’
conscious Indians. But, there are a number of other
competitors that is also focusing on ‘chicken’ types
products. All this competition makes it quite diffi cult
for KFC to maintain or even broaden their customer base.
However, with the introduction of a new and healthy product
range, KFC can differentiate itself from most competitors and
will gain a competitive advantage.

CUSTOMERS

KFC ’s customer market consists solely of the

consumer market
KFC ’s products are bought by individuals (males, fe
males, singles, and families).Therefore, the product
range KFC off er should appeal to as many people
within this consumer market as possible, to ensure
that the maximum amount of products can be sold. The
characteristics of these individuals and a segmentation
of them are discussed later in this report.

Page 59
PORTERS FIVE-FORCES ANALYSIS

Entry

For the current Indian market for fast food, it is not difficult
for a fast food restaurant to enter the market. However, it
would be extremely difficult to take over already running
major fast food chains' dominancy in India or
even make a significant amount of profit. While there are
enough people in urban India for any restaurant to survive,
KFC holds the first-mover advantage into the 'non-veg food
specialty food segment' that gives them free
reputation. Customers, especially children who are used
to going to KFC as a treat or reward from their parents or
grandparents, are not going to want to go to other
restaurants they’ve never heard of. The brand name is

Page 60
already established. Also, there is already a large variety in
the numerous western-style dining places in India, such as
McDonald’s, Pizza Hut, Domino's and Subway, and any
new fast-food entrants would just be presenting
something very similar to what’s already there. While
small Neighbourhood restaurants generally have low
barriers to entry, these are the barriers to entry for
similar restaurant businesses to enter the fast-food chain
market.

Buyer/Supplier Bargaining Power

The customers of KFC, especially as individual buyers, have

almost no bargaining power because if only one customer
threatens to no longer eat at KFC, the store is not going to
lower its price because the cost of losing one customer is not
very great. The suppliers, like the buyers, have very little
bargaining power .In terms of food, KFC, upon its move into
India, urged many of its U.S. suppliers to also extend
branches into India. KFC also began helping local
suppliers by giving them technological support to
improve their products. This is a brilliant strategy because the
supplies that KFC would otherwise need to import from the
U.S. can now be obtained domestically, and if the U.S.
suppliers decide to raise their prices, KFC can easily
switch to the local suppliers. This gives us a brilliant
strategy. With this strategy, KFC created competition among
its suppliers, lowering the supplier bargaining power. In terms
of human resources, labour cost is extremely low because the
supply of non-skilled workers great exceeds the demand
for them. With so little buyer and supplier bargaining

Page 61
powers, KFC is able to have a very tight control over its
prices and expenditures.

Substitutes and Complements

As mentioned above, there are a few major competitors in

the fast-food industry in India for KFC, namely McDonald’s,
Pizza Hut, Domino's and Subway. The substitute products,
in this case, would be burgers, pizza, and
sandwiches. Though they are competi tors, their
primary products diff er greatly from each other, in
that they sell, chicken, burgers and fries, pizzas, and
sandwiches, respectively. Traditional Indian dining, home-
cooked meals, and grocery stores with ready-to-eat
foods are also substitutes, as families could choose any
one of these over fast food for a meal. These
substitutes are definitely considered healthy as
compared to the fast food chains. Even foods from street
vendors count as substitute goods .While other fast foods
serve as substitute to KFC, they can also serve as
complements for fast foods as a whole. If the general price of
fast foods goes up, KFC’s price rises as well, and the same
can be said of the quanti ty sold of these products,
which make them complements to each other. KFC
also sets up stores located near popular tourist
attractions, so tickets to these tourist spots are also
complementary goods because the more people tour
these attractions, the more customers KFC will get.

Rivalry

Page 62
Unlike what one would expect, KFC has little rivalry with
similar fast-food chains in India. The primary reason is that
their core products are different, as in they sell different
kinds of fast foods with very different tastes and
styles. For example, if KFC raised its price for chicken by a
small amount, Indian chicken lovers who may not be as
accepting to pizzas (many Indian people strongly dislike the
taste of cheese) are not going to switch t o P i z z a H u t
just because the price for KFC increased. In
a d d i ti o n t o t h a t , t h e s e restaurants have such
different target customers that the fluctuation of price
for one restaurant is not going to affect the others. For
example, a full meal at KFC ranges about Rs. 100,whereas a
full meal at Pizza Hut can cost over Rs. 300. The drastic
difference in price assures no price competition
between these restaurants.

Page 63
Market Share

KFC has a very long history and has the most

r e c o g n i ze a b l e b r a n d i n chicken with over 50% of
the market share. It becomes diffi cult for the
companies like Sub way, Mc Donald’s, Chicken planet, Dixie or
those who may want to enter in the market of fast food
restaurants . Due to with over 50% of the market share in
fast food industry KFC has recognition around the world
and has been globally positioned for many y e a r s i n
I n d i a a n d t o c a p t u r e t h e m a r ke t s h a r e i n I n d i a
a d o p t s c h a m p s philosophy.

Page 64
RESEARCH
METHODOLOGY

Fig 2.1

Page 65
SCOPE OF THE STUDY:-

This study basically tries to discover the current position of

Kentucky fried chicken in the market. It also informs about
the KFC dos and don’ts . It tries to discover the preferences
of the customers when posed with a choice between KFC
and MC Donalds . It is primarily directed to the general public
but was done only in New Delhi, Noida and Greater Noida

Page 66
RESEARCH DESIGN

A research design is the specification of methods and

procedures for acquiring the needed information. It is overall
operational pattern or framework of the project that
stipulates what information is to be collected from which
source by what procedure.

There are three types of objectives in a marketing research

project:-

 Exploratory Research.
 Descriptive Research.
 Casual Research.
1. Exploratory Research:-

The objective of exploratory research is to gather

preliminary information that will help define problems and
suggest hypothesis.

2. Descriptive Research:-

Page 67
 The objective of descriptive research is to describe things,
such as the market potential for a product or the
demographics and attitudes of consumers who buy the
product.

3. Casual Research:-

The objective of casual research is to test hypothesis about

casual and effect relationships.

Based on the above definitions it can be established that this

study is a Descriptive Research as the attitudes of the
customers who buy the products have been stated. Through
this study we are trying to analyze the various factors that
may be responsible for the preference of KFC products.

Page 68
Data collection

In this project both primary data as well as secondary data

are used.

Primary data
Primary Data are those, which are collected afresh and for
the first time, and thus happens to be original in character. It
is the most common method used for collecting the data and
the most reliable to look upon to.
Primary data used in this project is collected through two
methods, namely
 Questionnaire method
 Direct personal Interview method.

Both these methods proved to be great help in getting the

required information.

Page 69
Secondary data

Secondary Data are those, which have already been collected

by someone else and which have already been passed
through the statistical process. Some related information on
the two companies and any past comparison of the two
chains was collected through secondary data from various
sources like Internet, Print Media.
The various sources of secondary data used for this study
are:-

 News papers.
 Magazines.
 Text books.
 Marketing reports of the company.
 Internet.

Page 70
Statistical & Presentation tools used

PRIMARY DATA is:

First classified i.e. grouped qualitatively and quantitatively
according to the situation or the type of the data which was
collected.
After classifying is represented in the form of tables i.e.
systematically arranged in columns and rows.
Some of the data is also graphically represented in the form
of BAR CHARTS.
The primary tool for the data collection used in this study is
the respondent’s response to the questionnaire given to
them. The various research measuring tools used are:-

 Questionnaire.
 Personal interview.

Secondary data is represented:

In the form of tables.
By the way of bar graphs and Pie CHARTS
 Tables.
 Percentages.
 Pie-charts.
 Bar-charts.

Page 71
  Column charts

SAMPLING
An integral component of a research design is the sampling
plan. Especially it addresses three questions: Whom to survey
(sample Unit), how many to survey (Sample Size) and how to
select them (sampling Procedure). Making the census study
of the entire universe will be impossible on the account of
limitations of time and money. Hence sampling becomes
inevitable. A sample is only his portion of population.
Properly done, sampling produces representative data of the
entire population

Sample size and Areas covered

A customer-based survey was conducted in which 100 people
were asked to fill the questionnaire covering the cities of
Delhi and Greater Noida.
Non Probability sampling was used within which convenience
sampling technique has been used. The responses have been
collected from the customers depending on their availability
and their willingness to respond.

Page 72
SAMPLE SIZE:-

 Through questionnaire – 100 respondents.

 Through personal interview – 2O respondents.

SAMPLING TOOL:-

Questionnaire was used as a main tool for the collection of

data, mainly because it gives the chance for timely feedback
from respondents. Moreover respondents feel free to
disclose all necessary detail while filling up a questionnaire.
Respondents seeking any clarification can easily be sorted out
through tool.

Sampling Respondents Number

Tools
Questionnaire Customers 100
Personal Customers 20
Interview
Total 120
Page 73
FIELD WORK:-

The study was conducted in New Delhi, Noida and Greater

Noida.

 The questionnaires were given to the respondents to fill

in order to get their feedback.

 Questions were read out to the respondents and the

answers were noted.

Limitations of the study

Since the road to improvement is never ending, so this

study also suffers from certain limitations. Some of them
are as follows:

Page 74
 Scope of project is limited in the sense that only
McDonalds and KFC have been taken for comparison of
consumer research.
 The extent of the survey was Noida , Greater Noida and
New Delhi only. So the suggestions or arguments given
in the report may not hold true for other locations in
India.
 It was a time consuming method in which continuous
guidance was required.

 Questionnaire method involves some uncertainty of

response. Co-operation on the part of informants, in
some cases, was difficult to presume.
 Because of time constraints and reserve constraints, a
mix of convenient sampling and judgement sampling
was used.
 Also because of above mentioned constraints, the
sample size chosen for the survey was 100 people for
questionnaire and 20 for the personal interview.
 It is possible that the information supplied by the
informants may be incorrect. So, the study may lack
accuracy.
 For presenting about KFC, only secondary source of data
was referred. No interviews with the company
personnel, whether the operational or managerial levels
were conducted.

Page 75
 Economic and market conditions are very unpredictable
(Present and future).

 The project duration is limited to 4 weeks so it limits the

area of study.

Page 76
 DATA

ANALYSIS

The data we received is as follows:-

Page 77
We did a survey on KFC on people with age group of mostly
20-25yrs. Mostly all were open to KFC’s reciepe , and
following were the results.
As seen below KFC has shown a good report on all the micro
factors that we considered.

Fig 3.1

We also asked questions on whether they would

like KFC to start home delivery services.

AND

We also inquired “

Page 78
How close is the nearest KFC outlet from your
house?
Fig 3.2

Fig 3.3

We also asked which favourite fast food

restaurant would you prefer?

Page 79
 Fig 3.4
We even asked which is the healthier fast food
outlet you would prefer?

Fig 3.5

Page 80
Which is your favourite non-veg fast food outlet ?

Fig 3.6

We also asked how often would you like to

consume Non-veg in a week?

Page 81
 FIG 3.7

We also asked how often you eat fast food ?

Fig 3.8
Would you like to order at home or Dine in?

Page 82
Fig 3.9

Page 83
SUGGESTIONS

AND

CONCLUSION

Page 84
RECOMMENDATIONS:

KFC is a market leader in providing Fried chicken. As KFC, so it

is competing with the prominent market signs like pizza hut,
McDonalds. N its product category, it is doing really well but
they need improvements in their hot menu. They should also
make their menu dynamic, by introducing new meals after
certain period of time. New items should be introduced by
varying the taste. They should also try the local 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

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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
Going through the analysis of response from the survey
conducted, it is concluded that McDonalds scores a certain

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edge over KFC in being able to retain at top. McDonalds is
also preferred and the first brand to be recalled when it
comes to the fast food category over Pizza hut, Domino's and
KFC.

KFC should meet all legal business requirements to enhance

their survival competence. The Department for Environment,
Food and Rural Affairs recommends a maximum stocking
density of 34 kg—around 30 chickens—per square meter, and
say that in circumstances where beak trimming needs to be
carried out to prevent the birds injuring each other, only one
third of the beak should be trimmed “measured from the tip
towards the entrance of the nostrils”.

KFC should stop purchasing soy from Cargill, to avoid

contributing to the destruction of the Amazon.

KFC should give more emphasis on products innovation

strategy and should launch new products rapidly to keep pace
with the competitive market.

KFC should confirm its culture to PepsiCo.

KFC should have a defined target market.

We also concluded that people prefer to dine in at home and

it would be really beneficial for the KFC to offer the home

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delivery for its better future and also to compete with its
competitors.

Since KFC is a global company with a diverse and ever-

changing work force, faces significant challenges in operating
their businesses internationally but they faces those
challenges strategically, adapt with policies to these markets.
KFC Built a diverse foundation to operate as a local business
in international markets .Criticism work as a motive toward
success. Though criticism rose about KFC but it could not
hinder its success because of their policy and strategy. A
proverb goes on “prosperity’s right hand is industry”, by
expanding its operations globally KFC facilitated its success
and become famous to worldwide, which proves that “Fame
is the perfume of heroic deeds”.

BIBLIOGRAPHY

WEBSITES

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  en.wikipedia.org/wiki/KFC
 www.india-server.com
 www.magindia.com

 www.KFCindia.com

 www.open2.net

 http://mbamarketingproject.blogspot.in

 www.ukessays.com

BOOKS
 Marketing Management – Kotler Philip.
 Research Methodology – Kothari.

Q
QUESTIONNAIRE
1 . A g e
2 .Y o u r o c c u p a ti o n
3. When did you know about KFC?
4. Why do you choose KFS but other restaurants?
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5)what way did you know about KFC?
a) Adverti sement on newspaper/magazine
b) Internet
c) Family/ friends/ colleagues
d) Banner
e) People working for KFC
f ) Others

6)Do you think KFC should start Home Delivery

Service ?
a . YES
b . NO

7). In terms of loc ati on, why do you come t o KFC?

a. It lies on a main road
b. It lies next to a supermarket
c. It looks out of 2 roads
d. Others
(You can tick more than 1 option)

8).Wou ld you prefer o rder at home or d ine in the

KFC ? .
a. Order at home

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 b. Really doesn’t matter

9).What factors of location affect your decision?

a. Near your house
b.On the way to work or sc hool
c. Near shopping centre
d. Near the red light so that it ’s easy to be
recognize
e. Others

10).What do you think about the parking area at KFC?

a . . Good
b . Normal
c . Bad

11).How does the KFC’s prestige affect your decision

A .Ve r y m u c h
b. Normal
c . V e r y l i tt l e
12). Does the logo attract you?
Yes
No

13).How often do you come to KFC

a.Every 3 days
b.Once a week

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 c.Once a month
d .O t h e r o p ti o n s

14). What do you think about the price here?

a .V e r y e x p e n s i v e
b.Expensive but sti ll payable
c.Reasonable
d . Cheap

15).How do you feel about KFC's food?

a.Delicious
b .G o o d
c.Normal
d.Not Good

16. What are your suggestions for improving KFC's service

quality? (If any)
a.improve food quantity
b.improve food quality
c.improve food service
d. others

RESPONSE
It is as follows:

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RESPON Q Q Q Q Q Q1 Q1 Q1 Q1 Q1 Q1 Q1
SE 5 6 7 8 9 0 1 2 3 4 5 6

Group 1 a A C A A B C Y D C A A
Group 2 C A B A C A A Y D C A D
Group 3 D A B A E A C Y A B A D
Group4 A A B B B A A Y A B b B
Group 5 B B A B C C A Y B B C B
Group 6 C A A A C C A Y C B B B
Group 7 C A C A A B A N b B B C
Group 8 F A A B A B A Y B C B A
Group 9 E B B A D C A Y C A A C
Group A A C A B A C Y B D B C
10

 Each group includes 10 people of different

category which is as follows

Group 1- female working woman

Group 2-female college student

Group 3 –female school student

Group 4-female house maker

Group 5-female above age 40

Group 6-male working man

Group 7-male college student

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 Group 8-male school student

Group 9-children below 10 years

Group 10 –people living away

from home.

THANK
YOU

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