m

 


 

KFC Corporation, based in Louisville, Kentucky, is the world¶s most popular
TM
chicken restaurant chain, specializing in Original Recipe ®, Extra Crispy , and Colonel¶s
Crispy Strips® chicken with home style sides and five new freshly made sandwiches. Every day,
nearly eight million customers are served around the world. KFC¶s menu everywhere includes
Original Recipe® chicken²made 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
products²from a Chunky Chicken Pot Pie in the United States to a salmon sandwich in Japan.

KFC continues reaching out to customers with home delivery in more than 300 restaurants in the
United States and several other countries. And in quite a few U.S. cities, KFC is teaming up with
other restaurants, Taco Bell and Pizza Hut, selling nearly fifty years ago; Colonel Sanders
invented what is now called ³home meal replacement´ ± selling complete meals to harried, time-
strapped families. He called it, ³Sunday Dinner, Seven Days a Week.´

Today, the Colonel¶s spirit and heritage are reflected in KFC¶s brand identity ± the logo features
Colonel Harland Sanders, one of the best-recognized icons in the world.





KFC is an internationally renowned fast food industry in the world. They have the main ambition
to increase & maintain the quality in fast food industry. Their aim is to capture the fast food
market. Basically they want to provide their products to anyone that is why they expanding their
branches in all over the world. They want to increase their profit
Through giving maximum satisfaction & other better facilities to people that they want. Now
after catching such a marvelous position in the International Market, KFC is introducing a new
item ³Boneless Fried Chicken´, with even more attractive and charming taste.



 

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 food service 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 ³finger lickin¶ good´ chicken dinners are served annually. And not just in America.
The colonel¶s cooking is available in more then 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. Ate age
10, his first job working on a nearby farm for $2 a month. 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 a 15-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 travelers 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.




    
 

 


  
 
 

 

! 


 
  


m
 "




" m
"#m
m$"%&m
' %#"#%()
!% !*m+!,#

Manufacturing cost RS. 100/-

5% marketing cost (PER UNIT) RS. 5/-

Total cost RS.105/-

15% G.S.T +15% RETAIL MARGIN RS.25/-

Total retail Price RS.140/-




î 




!
  
 
- 



  - 
 
 
 
 
$  


´ 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 and convenient location. At all times we must be
dedicated to providing excellent and delighting customers.












m 
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 it¶s 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 Sander¶s secret recipe. Its signature dishes include the ³crispy outside, juicy inside´ Hot
and Crispy Chicken, flavorful and juicy Original Recipe chicken, the spicy, juicy & crunchy
Zinger Burger, Toasted Twister, Chicken Bucket and a host of beverages and desserts. For the
vegetarians in India, KFC also has great tasting vegetarian offerings that include the 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.

.  


´ 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 standard 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.


















+

 / 


Current Products

Kentucky fried chicken

Zinger burger
Krushers
GameBox
Twister
Boxmaster
Chicken Bucket
Hot wings
Fries
Corn on the cob
Zing Kong
Snacker(chicken & veggie)
Veggie Feast
Soft Drink
Coleslaw
Chicken Thali
Veg Finger
Snack Box
Sundae
Soft Twirl
Brownie Sundae








,

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
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
Neighborhood restaurants generally have low barriers to entry, these are the barriers to entry for
similar restaurant businesses to enter the fast-food chain market.

01+0    "

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, labor cost is extremely low because the supply of non-skilled workers great
exceeds the demand for them. With so little buyer and supplier bargaining powers, KFC is able
to have a very tight control over its prices and expenditures.

+


 


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 competitors,
their primary products differ 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 quantity 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.

# 

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 to Pizza Hut just because the price for
KFC increased. In addition to that, these 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.


% #

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 builds up cook for 10 minutes.









"
 

In India KFC not advertise there products too much because people KFC due to its reputation in
other countries. They promote their products through special packages.They promote there
products through billboard, pamphlets and through other promotion strategies

+

 

KFC has divided the market of India into distinct groups of customers with different demands,
tastes and behavior who require separate products or marketing mix.

In India the niche marketing is being used for particular classes of people.

They have made segments of the market on the following bases.

´ Demographical
´ Behavior
´ Geographical

By using these three bases they segmented the market as under.



(,î%$#/"m
/&0/+m+

In demographics their first segment is consisted of the income factor i.e. high income, average
income and low income.

0,/.m%#

In behavioral aspect they segmented the market on the basis of quality, taste and price.
Following are the different possible segments in this regard.
 ´ Taste conscious
´ Quality conscious
´ Class conscious
´ Combination of price and quality



$,%$#/"m
/&0/+m+

On the basis of the geographical factor we have divided our market in three main segments.

´ Urban areas
´ Sub urban areas

" 
 

23 Î
 KFC is for each gender both male and female.
 3 m Everyone can use the KFCservice upper and middle class .
3  age limitation for using this product above 15
å3 d By profession also everyone can use this product means businessman student
workers and other peoples.
‰3 ©  It has no need more education that why the person who know something can
easily enjoy with this product.
r3 "!#!$#!KFC is suitable in every stage of life like single married couple and also
those who have children can use this product.
š3 •$%#!This product is used in every level of social class like upper, middle class.
[3   When the customers once buy this product after that they can use the product
continuously.
-3 ½&'% % Often KFC changes the purchasing decision of customers because of
its good attributes.
243Î&'& Geographically KFC is used in every part of the country as well as all
over the world.
½& %
Customer perceive this product as a unique product that other are not giving .
 %
The attitudes of the public is very good people like our this new product like others.
½&'%&%%:
Many people come from home to eat this , and some make impulse decision as they saw it .

î 

 +


KFC will be using differentiated market coverage strategy. It means that different marketing
mix will be used for different age groups.


!/#$,!î/#,! %# /+! %%(
After evaluation of various segments, KFC has decided to target the market of Urban and
Sub-urban Areas of Pakistan.


"
 
´ People are educated and they want variety in their diet.

´ Normally people of rural areas don¶t take fast food. On the other hand people of urban

areas take fast food.

´ Income of the people of urban areas is normally high and they can afford to purchase

such products, which are slightly higher in price as compared to prevailing prices of local

food in the market.

´ People of Urban Areas are more quality conscious than the people of Rural Areas.

´ In Urban Area there lived people from every walk of life and profit generation is easier

than in Rural Areas.

 ´ Population density is higher in Urban Areas as compared to Rural Areas, so the number

of customers are more in Urban Areas.




You 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 areî( 

COMPETITIVE ADVANTAGE


KFC McDonalds

Spicy Products Burger and French Fries

Indian people like spicy products instead of
boiled food

Arabian Rice and Zinger Burger Big Mac

Free Delivery Charges for home delivery

Chicken is eaten by every community Beef is banned in some community

Its Staff consist of simple Graduates and give
Local Staff and Highly Qualified because them training
local staff can better deal with the
customers
McDonalds Uses Top To Bottom Approach.
KFC uses Top to Bottom and Bottom to Top
Approach in Management.
No such Case.
KFC is Co branding with Walls



, /  î 

A market in this context refers to a number of all actual and potential buyers of a product (Kotler

et al 2003). These buyers have a need to 

 

satisfy their needs through exchange

m
 

   
(Graphic 1). These needs make up the 
 

 

 


demand for particular products and

services. Several components must be m 



 

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 attitudes 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 adjust their range

of product and their company image to appeal to these new expectations, people have.

(http://www.marketresearch.com).

Macro environment

KFC operates in a larger macro environment of forces that creates opportunities, but also threats.

(Kotler et al 2003). A company such as KFC usually cannot influence 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.

Micro environment

The microenvironment consists of all

forces that are close to KFC, and on 

  
 


which KFC has an impact. They directly

affect KFC¶s ability to serve its



customers. (Kotler et al 2003). Three

major components influence KFC¶s

micro environment:



 
 
!""  
#  
 

 

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 particular is a direct competitor, as they have already successfully introduced

their Salads plus line (http://www.theage.co.in), which directly targets µhealthy food¶ conscious

Indians. But, there are a number of other competitors that is also focusing on µchicken¶ types

products. All this competition makes it quite difficult 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.

 


KFC¶s customer market consists solely of the consumer market (Kotler et al 2003). KFC¶s

products are bought by individuals (males, females, singles, and families). Therefore, the product

range KFC offer 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.


+
 
    


+trengths: 38 products, Attractive Outlets, Huge Marketing, Budget, More entertainment for kids
*eaknesses: Same type of Menu, No Home Delivery






5

It is found that KFC compete its competitors by five ways:

 KFC compete its competitors through marketing strategy

 They offered different packages at different events like ramdan offer,
midnight offer etc.
 KFC compete there competitors by providing good services
 They must hired the hard selling persons to market their product in the
market and motivate their employees for the sake of organizations and
employees do well and they compete there competitors
KFC has quality products and through these quality products they compete
their competitors










,  
 
 
 


"
 
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 cardiovascular 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.

, 
Though for last 1 year their 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 at 2.965 trillion U.S. dollars in the year 2010. The GDP-
per Capita (PPP) was 2700 U.S. dollars as estimated in 2008. The GDP- real growth rate in 2007
was 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.

+
 
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 65 years 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.

!  
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.

,  

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 lost of green forest opening for plantation activities. Vegetarian
environmentalist criticizes the fast-food giant for cruelty to animals and slaughtering. In
America, 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.


&  

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.
 KFC India - BCG Matrix

Crispy
Boneless
Chicken
Krushers
±
Chicken
Bucket

Veg
Thali


0
 
 
$60
$7î


8
 î 
Currently KFC have launched a new product in the market. They have also tried to come into the
beverages market by launching its new brand of shakes called KRUSHERS. As it is a fairly new
product it comes in the category of the Question Mark in the BCG Matrix. It has a low market
share thus brings low revenue. KFC is advertising a lot to popularize this product so there is a lot
of expenditure on it. This product is individually not bringing any profits and is a cash drain for
the company. Company may decide to completely remove this product from the market if it does
not do well soon and start bringing in revenue.

(%$
KFC¶s Veg Thali comes under this category. Although company had launched this product much
earlier, it has still failed to become a success. As KFC is known more for its non-veg food, this
also results in low demand for this item. It has a low market share and although low on
expenditure (as company does not spend on its promotion), it does not bring in much revenue as
demand is low. The product is mostly CASH NEUTRAL.



/+
%*

KFC¶s Chicken Bucket is the most successful product of the company. It has the highest market
share amongst all the other products. It has good demand in the market and brings in huge sales
revenue. The development and other expenses are also low and thus this product is a CASH
SIRPLUS for the company.
+!/#

The star product of the company is its crispy Boneless Chicken. It has a high market share and
brings in high revenue. But it also has high developmental expenditure involved. The profit
therefore is generally not very high brought in by this product. This product is CASH
NEUTRAL for the firm. The company is trying make this product a cow as well, by reducing the
expenditure
&#$&&%

+*%! analysis mean strength, weakness, opportunities and
threats and the +*%! analysis of KFC are:






+!#,$!+


ô $ 

 : The company certainly has earned a good name
and reputation by its previous products and services in the market. It is even
more recognised in other markets outside India, where the company is
among the leading fast food giants. The brand is recognised and trusted in
India for its quality products, price, and customer service. It therefore has a
good head start and enjoys a good chance of becoming a leader in Indian fast
food industry.

ô ,& 
: Employee Loyalty is one of the major strengths of KFC.
The turnover rate in the company is amongst the lowest in the industry.

ô

 & 
: 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.

ô #  
      

    for its

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



*,/,++,+
ô KFC was   
  as other Chicken chain increased sales at a
faster rate.
ô 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.
ô Huge 

 in this segment.
ô m    
 
  
  
 
 
. South
India is especially very much so. This may reduce the market share of the
company.
ô KFC has not yet invested much on R&D, and innovating new products for
Indian Markets. This may lead to failure of their products as they are not
in line with the Indian mind set, peoples taste and preferences and their
likes and dislikes. This may prove fatal for the company.

%"")#!)m!m,+

ô  î 
: Globalisation has opened doors for new markets for the
company. As the developed markets are mostly saturated, the developing
countries like India and China promises a good market and generation of
demand in the future. With more than 70% of the markets in india being
unexplored and un organised, KFC has a good scope of expanding its
operations in the country.
ô


: 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.
ô & '

 : India has a very large share of youth population a
compared to other countries. More than 60% of the population is under the
age of 30yrs. As the young generation are more open to fast foods and
demand it more, this is a good news for the company.
ô  
 Company can also come up with new variety in the menu like
Pizzas, garlic breads to attract more customers.



!#,/!+

ô


  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.

ô Organisations like PETA People for Ethnic Treatment for Animals have
given a bad name to the company which may prove disastrous to the
image of the firm. Currently, KFC is under massive attacks from animal
organisations, questioning the way KFC¶s suppliers are threatening the
chicken, before they got slaughtered. 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

ô +

)+î 
: Now KFC cannot rely on just its home market to
generate sales. As the US markets are already saturated and leave no or
little scope for growth, company necessarily needs to look at offshore
foreign markets to generate sales and keep up the profits.


 î/#,!m$+!#/!,$m,+% 



There are different strategies adopted by KFC for different events. They
market their products on different events and in different activities as
they are helping SOS village.
According to KFC, kids become the future permanents customers and
we know very well that without any marketing strategy no marketing
program and no product is successful because we depend upon
customers, customer not depend on us.


´KFC is following Niche Marketing and Societal Marketing

techniques.

´KFC possess a western culture because some of the Indian people

are also following that culture.

´KFC are moving from Divisional Level to the District level by

opening branches

´KFC also offer free home delivery.

´KFC open their outlets on reachable places.

´KFC menu consists of more than 30 products.

´ KFC gives more priority to Family.

 î




      
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K & N¶s state-of-the-art Quality Assurance Lab monitors the entire integration process from

livestock to feed and on to preparation of ready-to-cook and cooked products.

,
 

 

HACCP ± K & N¶s ensures food safety by implementing the international HACP (Food Safety

System) and enjoy the unique privilege of being the first and only HACCP certified company is

India producing chicken and chicken products. Free from diseases and bacteria, drug residues

and other contaminants.

8 
/ 

 


Director General ( Research ) has issued quality assurance certificate for the chicken used by

KFC.









"   
We are asked as many questions on our packaging as our products by our customers. The
packaging for 
products is chosen according to performance against three key criteria:

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

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

,  
  

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

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We at KFC UKI are aware of our responsibilities to the Management of Litter and all our
packaging carries the µKeep your Country Tidy¶ signs






0  

This research measured and compared the brand identity of Kentucky Fried Chicken (KFC) in
India. Brand identity was defined as the customer impressions of four different KFC identity
elements - properties, products, presentations, and publications. A survey of young consumers in
the countries (n = 795), showed that the respondents were more apt to eat within KFC
restaurants, and spend more time doing so, than the Americans. The Chinese also had much more
positive impressions of KFC. Brand identity impressions were correlated with overall customer
satisfaction and with future patronage intentions for both groups. These findings support a model
where differences in cultural frames of reference lead consumers to actively localize the brand
identity of this nominally globalized product.


 
 "
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+ 
 

For the sales pormotion KFC introduced their goods like watches , keychain, e.t.c
to the customers.





/



The advert titled Pool was done by OGILVY & MATHER, New Delhi advertising agency for
KFC ZINGER BURGER (KFC company) in INDIA. It was released in the June 2009. Business
sector is Fast food outlets & restaurants.




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1. Tick Your Choice (Ýo

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"ood Quality     
"ood Temperature     
Waiting Time     
Menu Board     
Sitting Arrangement     
Restaurant Temperature     
Music     
Restaurant Cleanliness     
Overall Experience     


2. When will you be back?

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3. How many people were in your group?

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å. Would you rather order than Dine in?
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5. How close is your house to your nearest K"C outlet?
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r. Do you want a K"C home delivery service?
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The data we received is as follows:- 
We did a survey on KFC on people with age group of mostly 20-25yrs. Mostly all were open to
non-veg food, and following were the results. As seen below KFC has shown a good report on
all the micro factors that we considered.

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We also asked questions on whether they would like KFC to start homedelivery services.

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ANALYSIS OF ITS SUCCESS IN CHINA
È As early as 1985, KFC already had its eyes on this market. After a great deal of research,
the first KFC restaurant opened in Beijing in 1987.
È Less than 10 years later, KFC managed to open 100 restaurants throughout China. By the
end of 2004, KFC stores has reached 1200, double the number of its primary competitor,
McDonald¶s.
È KFC¶s target customers are also different from those of traditional Chinese restaurants.
They target the teenagers & give them numerous discounts to high school and college
students, hoping to acquire such a group of young adults with a lot of money from their
parents to spend as their primary customers.
È The acronym CHAMPS, which stands for ³cleanliness,´ ³hospitality,´ ³accuracy,´
³maintenance,´ ³product quality,´ and speed,´ are the goals that KFC aims to
accomplish.

Kentucky Fried Chicken

È Four P¶s of Marketing mix.
È The marketing mix is generally accepted as the use and
specification of the 'four Ps' describing the strategic
position of a product in the marketplace.
È Product
È Price
È Place
È Promotion





"

Anything that can be offered to a market to satisfy a want or need.

KFC's specialty is fried chicken served in various forms. KFC's primary product is pressure-fried
pieces of chicken made with the original recipe. The other chicken offering, extra crispy, is
made using a garlic marinade and double dipping the chicken in flour before deep frying in
a standard industrial kitchen type machine.


+

 
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 :

KFC has outlets internationally and sells its products according to geographic needs of the
customer.
" 


Dividing a market into different groups based on social class, lifestyle, or personality
characteristics is called psychographic segmentation.

( +



In demographic segmentation, the market is divided into groups based on an age, gender, family
size, income, occupation, religion, race and nationality.
KFC divides the market on demographic basis in this way:
È Age is between 6-65.
È Gender is both males and females.
È Family size is 1-2, 3-4, 5+
È Income is Rs 10,000 n above.
È Family lifestyle is almost all.
0 +

 
È taste conscious
È quality conscious
È class
È combination of product and quality
 È Price is the any amount of money that customers have to pay while purchasing the
product. More broadly, price is the sum of all the values that consumers exchange
for benefits of having or using the product or services

(  


È Age: Generally there is no age limit focus by the KFC. The target and focus is on each
and every individual in a society. KFC finds its largest demographic in the young of any
society.
È Gender: Both male and females are focused by KFC, gender does not play any role here.
Household Size: This plays a vital role in the demographic factor of the KFC. Generally they
target whole families rather than single persons. This being the reason for their Family Meals
which are basically bundled items served at a nominally cheaper rate.

©conomic Factors
È Income: Income is an important key factor for KFC. This factor decides which class is to
be targeted. In the early rise of KFC they focused on the upper class but slowly are
introducing economy meals that attract the lower to middle classes.
È Consumption Behavior: It estimates the behavior of people, their liking and disliking
towards the pricing of the products.

Îeographic location preference

È urban
È semi urban

" +



È î 
 : KFC globally enters the market using market skimming. Their
products are priced high and target the middle to upper class people. Gradually they
trickle down the prices focusing on the middle to lower class people to penetrate both
sides of the market.



 
È We can compare the price of their products with McDonald, Dominoes and Pizza Hut. If
the competitor provides the same product at a lower price then the organization usually
lowers the price of its product too. In the case of KFC, Fried Chicken is its main selling
 point and controls a monopoly over the Indian fast food market (only with fried chicken).
It prices its burgers, French fries and soft beverages with relation to its competitors.


0 
È KFC price their product keeping different points in view. They adopt the cost base price
strategy. Pricing of the product includes the govt. tax and excise duty and then comes the
final stage of determine the price of their product. The products are bit high priced
according the market segment and it is also comparable to the standard of their product.
In the cost based method we include the variable and fixed cost.

½romotion
Promotion is the method used to inform and educate the chosen target audience about the
organization and its products. Using all the resources of promotion:
È Advertising
È Sales Promotion
È Public Relations
È Events and Experiences
È Coupons, Discounts and Bundled packages
È An organization finds most of its meanings and survival through promotion.

At KFC, Promotion is the main tool to bring all chicken lovers attention towards its delicious
one-of-a-kind product, the Fried Chicken.

Advertising
The logo of the smiling Colonel is probably one of the most recognized faces in the world and
instantly brings the image of fried chicken to one¶s mind.
È KFC and its new company jingle, ³finger lcikin good´ is a frequent announcement
on televisions, billboards, flyers and radio. The concept of showing a normal
customer deeply involved in devouring his piece of chicken usually turns on the
drool factory in everybody¶s mouth and makes them rush to the nearest KFC. In
India where chicken lovers are plenty abound these ads featuring normal people
connect instantly and create a rush at their outlets. Using the following methods
KFC spreads its message of finger licking good chicken.
 È Using Reminder advertisementsKFC stimulates repeat purchases of its products. The
company anthem ³finger linkin good´ is just a wake up call to the consumer to remind
them how good they felt the last time they ate KFC chicken.
È Sponsorship is another tool to strengthen an organizations image. KFC is currently the
sponsor of the Australian Cricket Team and the colonel logo can be seen on their
uniforms throughout the matches.

+ "
 
È KFC uses the following tools to further enhance its sales.
È Premiums
È Exhibits
È Coupons
È Entertainment
È All KFC outlets offer its customers with various forms of incentives to buy its Chicken.
Using coupons that one can acquire after spending a particular amount over a period of
fixed time, customers can enjoy the benefits of free meals or free add-ons. Additionally
they provide meal vouchers and exciting offers in their print ads, which the customer
must cut and bring along.

m
  
+*
È +
 

ΠMultibranding Strategy
ΠName recognition and Reputation
ΠEmployee Loyalty
ΠGlobal Expansion
ΠTargeting Non-Traditional Outlets
È *  
ΠConflicting Corporate Cultures
ΠNo defined target market
ΠTime it takes to market new products


,
  
%!
È Opportunities
ΠInternational Appeal to American products
ΠEconomies of Scale and Scope
ΠThe downturn of the US economy

È Threats
ΠPETA
ΠConsumer health food trend
ΠSaturated fast food industry

+

î 

Market Development

KFC will introduce their present and new products and services into new
geographic/demographic areas.

Product Development

Bring back rotisserie chicken

Concentric Diversification

Add more to KFC product & service variety to the patients.


î