Group members

Introduction

Colonel Harland Sanders, founder of the original Kentucky Fried Chicken, began experimenting different seasonings to flavor his chicken and soon became famous. KFC stretches worldwide with more than 13,000 restaurants in more than 80 countries and territories around the world serving up the Colonels Original Recipe. It is a $13 billion brand based out of Kentucky . Yum! Brands own 5 brands, out of which KFC is the largest brand within the Yum! Portfolio, founded by Colonel Harland Sanders in the year 1938 .

KFC at present

The organization is currently structured with two divisions under PepsiCo. PepsiCo Worldwide Restaurants PepsiCo Restaurants International. Both of these divisions of PepsiCo are based in Dallas. David Novak is president of KFC

Structure
The strategy of KFC is to improve operating efficiencies. They emphasized 1. Cleaner restaurants, 2. Faster and friendlier service, and 3. Continued high-quality products. They gave the responsibilities to restaurant franchises and marketing managers.

OBJECTIVE

To take advantage of potential growth in other country to establish a strong position and develop image Key success factors are ever continuing, cost saving through R&D, innovation and use of new technology to work efficiently. These success technology will lower cost and increase profit. Expansion of business whether world wide business or just to open up a few more restaurants to provide a better service/faster service/better customer service to beat competitors such as mc donalds, burger king, pizza hut etc

Stated Objectives
1.Product development Increase variety on menu Introduce desert menu Introduce buffet to restaurants 2. Introduction on the Neighborhood Program.

Implied Objectives
Expansion of international operations to provide the following: Increased percentage of overall sales growth Increased percentage of profit growth Increased expansion of franchises into Mexico Continued promotion of healthier image through removal of the word "fried" from the name Improve menu selection of rotisserie

Products offered
KFC has also met the changing demands of society. As the world has gone to a more healthy living, KFC has come out with many changes on its menu Honey BBQ Chicken, Popcorn Chicken, Rotisserie Chicken Chicken sandwiches chicken pot pies crispy chicken strips mashed potatoes and gravy potato wedges

Service locations
KFC has also tried to meet the demands of consumers wanting fast-food in other "non-traditional" locations. They are currently serving airports shopping malls universities high-traffic areas.

SWOT ANALYSIS

STRENGTH

1. KFC's secret recipe. 2. Name recognition and reputation 3. PepsiCo's success with the management of fast food chains 4. Traditional employee loyalty 5. Improving operating efficiencies by reducing overhead and other operating costs can directly affect operating profit.


1. 2. 3. 4. 5.

WEAKNESSES
Many KFC sales lead to a confusing corporate direction. KFC has a long time to market with new products Conflicting cultures of KFC and Pepsi Co Turnover in top management. Recent contractual disputes with franchisees in the United States

OPPORTUNITIES

1. International appeal to American product. 2."Dual branding" helps to appeal to the wider customer base and also provide higher profit.

3.New franchise laws give fast food chains the opportunity to expand their restaurant bases
4. New distribution channels offer a significant growth opportunity. 5. Economies of scale and scope

THREATS

1.Saturation of the US market. 2.Increasing competition and rising sales of substitute products 3.Changing preferences of consumers. 4. PETA

Problems
1. No defined target market 2. Saturation of the U.S. Market. 3. Health Conscious Consumers 4. Increased Start Up Costs.

SEGMENTATION
GEOGRAPHIC SEGMENT: KFC outlet are internationally. Sells product according to the geographic needs of customer.

DEMOGRAPHIC SEGMENT: The market is divided into groups 1. Age (6-65) 2. Gender both male and female. 3. Family size (1-2,3-4,5+) 4. On the basis of income.

PSYCHOGRAPHIC SEGMENT: Dividing market into different groups based on Social class-upper and middle class Personality is ambitious and authoritarion.

BEHAVIOUR SEGMENT: Taste conscious Quality conscious. Class.

STRATEGIC MANAGEMENT
MARKETING DEVELOPMENT
Will introduce present and new product and services into geographic and demographic area

PRODUCT DEVELOPMENT
Bring back Rotisserie chicken

CONCENTRIC DEVELOPMENT
Add more to KFC product and services variety

IMPLEMENTATIONS
MARKET RESEARCH
Determine area of demand to determine boundaries.

EXPAND MENU
Healthier choice

Meals will be sold at cost

It determines effect on budget

4Ps
PRODUCT
Variety, Quality, features, Packages, services, Brand name

PRICE
List price, Discounts, Allowance, payment period

PLACE
Channel, Location, transport, Logistic. Assortment, internet

PROMOTION
Advertisement, sales promotion, Public relation.

ENVIRONMENT
POLITICAL: Global environment, different political infrastructure. ECONOMICAL: High target market, low cost and more income SOCIAL: Working with social groups, increase employment TECHNOLOGICAL: Quality standard LEGAL: Legislation for product, sustained logo ENVIRONMENTAL: Quality packaging

Attribution of KFC
The main attributes for KFC restaurant excellence are CHAMPS C- Cleanliness H- Hospitality A- Accuracy M- Maintenance P - Product Quality S - Speed of Service

Environmental concerns
Trademark disputes Wages and working conditions Animal rights Hygiene

CSR
Corporate social responsibility framework areas The Community The Marketplace The Workplace The Environment -We are committed towards strengthening local communities, - promoting equal. opportunity in the workplace, - people development efforts- enhancement of our customers comfort. - undertake a more environmentally conscious business approach

More to KFC

CO-BRANDING
In 1986 soft-drink giant PepsiCo, Inc., bought Kentucky Fried Chicken for $840 million just for company's superior performance and its increased worldwide revenue and earnings. PepsiCo saw Kentucky Fried Chicken's national niche as secure for two reasons: 1. Competition in large number of fast-food suppliers 2. Kentucky Fried Chicken still had room to grow Internationally

Mission
1.To sell food in a fast, 2. Friendly environment that appeals to pride conscious, health minded consumers

BCG Matrix
Asia Europe

USA

Americas

STAR

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

CASH COW

KFCs 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 SURPLUS for the company

DOG:

KFCs 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

Question Mark:

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. There is a lot of expenditure on it through advertisement.

IMC
IMC is the method used to inform and educate the chosen target audience about the organization and its products.

IMC TOOLS

Advertising Sales Promotion Public Relations Events and Experience Coupons, Discounts at KFC

PLC

KFC is at growth and maturity stage as fast food industry

Contingency plan
SHORT TERM First, they need to have a clear vision, solve the internal issues strong as a company and ready to compete internationally before going ahead with their expansion project. Create a great working atmosphere Develop a healthier menu Get some cash from selling unprofitable restaurants Evaluate countries based on attractiveness provide their customers with quality food, excellent service and restaurant cleanliness.

LONG TERM KFC need to keep an eye and be aware of new technology in order to improve their productivity and be able to compete more efficiently Stick to their mission; quality food-excellent service restaurant cleanliness Come up with new items regularly Keep an eye on possible mergers & acquisitions They also have to follow the trend and go hand in hand with customers to satisfy their changing needs