Project Report

On
CONSUMER BEHAVIOUR OF KFC

Submitted in Partial Fulfillment of the requirement of

MBA

Submitted By:

Sukhdeep Singh
Roll no: 1636766
 Evaluation Certificate

This is to certify that the project titled “Consumer Behavior of KFC” submitted by
Sukhdeep Singh of MBA of Pyramid College Of Business and Technology has been
examined by the following examinee.

INTERNAL EXAMINER EXTERNAL

EXAMINER

Declaration

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I Sukhdeep Singh of MBA hereby declare that the project work titled Consumer
Behavior of KFC, which has been submitted to Pyramid College Of Business and
Technology, is an original work of the undersigned and has not been reproduced from any
other source.

Date:
Place: Pyramid College Of Business and Technology

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 ACKNOWLEDGEMENT

A lot of hard work and effort has gone into this project. However, it would not have been
possible without the kind support and help of many individuals. I would like to extend
my sincere thanks to all of them.

I am highly indebted to Ms Loveleen for her guidance and constant supervision as well as
for providing necessary information regarding the project and also for her support in
completing the project.

I would like to express my gratitude towards my parents and member Pyramid College
Of Business and Technology for their kind co-operation and encouragement which help
me in completion of this project.

My thanks and appreciations also go to my colleagues in developing the project and

people who have willingly helped me out with their abilities.

SUKHDEEP SINGH

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 CONTENT

S.No. Topic Page No.

1. PREFACE 5

2. INTRODUCTION 8

3. INDIAN FAST FOOD INDUSTRY- OVERVIEW 12

4. RESEARCH OBJECTIVES 18

5. LITERATURE REVIEW 19

6. METHODOLOGY OF STUDY 21

7. STUDY RESULTS AND ITS INTERPRETATIONS 22

8. CONCLUSION 39

9. RECOMMENDATIONS 40

10. QUESTIONNAIRE 85

11. BIBLIOGRAPHY 89

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 PREFACE

The Fast Food phenomenon has finally come of age in India. According to the findings of
the latest online survey from ACNielsen, over 70% of urban Indians consumes food from
take-away restaurants once a month or more frequently. Of these 37% of adult Indian
population do so at least once a week. This makes India one of the top 10 countries
amongst the 28 surveyed, in terms of frequency of fast food consumption. The incidence
of Fast Food consumption in urban India is accelerating much faster than most people
anticipated. Changing lifestyles, an altered view towards out-of-home meals, a
willingness to spend and, most importantly, the urban Indian acquiring a more ‘global
palette’ have catalyzed its consumption.

As fast food consumption moves from being an impulse led occurrence to a part of
everyday life, eating habits are changing rapidly. While eating fast food may have been
uncharacteristic earlier, almost a third of urban Indians now claim to opt for fast food
even for breakfast. As the rapid pace of an urban lifestyle exerts its demands, fast food
will probably find itself the default choice. This will see an increasing proportion of in-
home food and beverage consumption migrating outdoors.

The fast food business has become ever more competitive, with various multinational fast
food chain operators expanding into new geographies daily, along with the emergence of
new players, new types of cuisines and new menu choices.

Riding on the consistently impressive performance of the past one decade, global food
retailing major Yum! Restaurants International is now aiming really big in India. After
clocking 40% growth during the past five years, driven by the massive success of its
flagship brand Pizza Hut here, Yum wants to log in a massive eight-fold growth in the
next decade.

Yum’s decade long affair with India went through some teething problems, most notably
the ill-fated launch of KFC in 1995 in Bangalore. The launch got mired in a controversy,

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but the company has managed to put that behind and has been recording an impressive
double digit growth since then, and today, over 1.7 lakh people walk into KFC outlets
across the country every week. A major part of the India strategy is the allocation of clear
roles to Pizza Hut and KFC to deliver on the vision. KFC will be the mass brand with
focus on tasty food. And to make this possible a better understanding of KFC consumers
was required.

Brands have personalities that can scream quality, great taste, real value or other
attributes. Through marketing and sales techniques, it is possible to improve and change
consumers’ perceptions of a brand. Knowing how consumers view your brand is critical
to developing the brand through a more effective marketing and promotion strategies.

The study was undertaken to generate information on the lines of

 Who is buying my brand / category
 Who are the heavy category buyers
 Why do consumers choose my brand
 Do consumers understand what my brand stands for
 How do they spend money on eating- out?
 What motivates consumer to purchase
 What is my brand personality perceived as and how does it compare to the
competition
 What other categories interact with mine, and which are important
 What cross category opportunities are there
 How loyal are category buyers

The study was conducted in two phases. The first phase was carried to profile customers
of KFC and Mc Donald’s. The study was conducted at KFC and McDonald’s outlets in
Jalandhar and Ludhiana covered 100 Respondents for each. Questionnaire included
demographic profile and behavior-based profile mainly in for of open-ended questions.
After preparing the questionnaire and selecting the respondents for the survey, it was
thought best to get the questionnaire filled by personally interviewing the people eating-
out upon their exit from these joints.

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The survey was an eye opener of sorts in many respects as the agency got many valuable
insights from the extensive research carried out.

We came to know that the present key customers are young adults either executives or
students who come with friends in groups of 2 to 5. The store mainly attracts customers
from limited neighboring areas. The frequency of eating out is very high among KFC
consumers most of who are non-vegetarians. The most important reasons being “to catch-
up with friends” and “being in the area”. Data also indicates that there is a high
inclination of KFC consumers to also visit Mc Donald’s while very less inclination of Mc
Donald’s consumers to visit KFC

The second phase was carried out was an In-store exercise with a sample size of 270
respondents and focused on 6 main products of KFC and understanding of their
consumers. The products were Chana Crunch Snacker, Chicken Crunch Snacker, Hot &
Crispy Chicken, Original Recipe, Zinger Burger and Chicken in a Bucket. The Key
findings were the Key target segment for each product, the product as it stands for in
minds of people, the day part and occasion when it is consumed; and also the need states
it satisfies. These further helped devise a positioning strategy for each of these products
so as to give them a personality of their own which will stand out in customers minds the
moment they think of food.

The complete analysis and other results are included in this report. It was an enriching
experience and I was able to learn a lot from the project. It improved my understanding
of various concepts and the most valuable input was the ability to integrate classroom
learning with on-field learning. The fast food industry is all set to grow at a scorching
pace and it is an honor to be involved with an International Player in that segment and do
this project on their ad-agency’s behalf.

INTRODUCTION
Fast Food: A fast-food restaurant is characterized both by food which is supplied quickly
after ordering, and by minimal service. Often this food is referred to as fast food. In

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response to increasing backlash against "fast food", the industry has been trying to move
the public away from that term over the past five years, shifting to the term quick service
restaurant (QSR for short). Consumers still refer to the restaurants as fast-food restaurants
despite the industry's efforts to change them

The food in these restaurants is often cooked in bulk in advance and kept cold, or
reheated to order. Many fast-food restaurants are part of restaurant chains or franchise
operations, which ship standardized foodstuffs to each restaurant from central locations.
There are also simpler fast-food outlets, such as stands or kiosks, which may or may not
provide shelter or chairs for customers

History: Although fast-food restaurants are often seen as a mark of modern technological
culture, the idea of ready-cooked food to go is as old as cities themselves, with unique
variations from culture to culture. Ancient Roman cities had bread-and-olive stands, East
Asian cultures feature noodle shops. Flat bread and falafel are ubiquitous in the Middle
East.
The modern history of fast food in America is connected with the history of the
hamburger, as the earliest fast-food outlets sold hamburgers as their primary product. The
American company White Castle is generally credited with opening the first fast-food
outlet in 1921, selling hamburgers for five cents apiece.

Food Preparation: The convenience of traditional street food around the world, lies in
serving one or two basic ingredients that can be cooked in batches and served quickly on
the spot. Modern commercial fast food, by contrast, is often highly processed and
prepared in an industrial fashion, i.e., on a large scale with standard ingredients and
standardized cooking and production methods. It is usually rapidly served in cartons or
bags or in a plastic wrapping, in a fashion which minimizes cost. In most fast food
operations, menu items are generally made from processed ingredients prepared at a
central supply facility and then shipped to individual outlets where they are reheated,
cooked (usually by microwave or deep-frying) or assembled in a short amount of time.
This process ensures quality and consistency of product, but is also the key to being able

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to deliver the order quickly to the customer and eliminate labor and equipment costs in
the individual stores.

International Chains: Fast-food restaurants are popular in the United States, the source
of most of its innovation. Multinational corporations typically modify their menus to
cater to local tastes and most oversees outlets are owned by native franchisees.
McDonald's in India, for example, uses lamb rather than beef in its burgers because
Hinduism traditionally forbids eating beef. In Egypt and Saudi Arabia, all menu items are
halal. However, these concessions to local practice have not quashed criticism.

Additionally, multinational fast-food chains are not the only or even the primary source
of fast food in most of the world. Many regional and local chains have developed around
the world to compete with international chains and provide menu items that appeal to the
unique regional tastes and habits. Most fast food in the developing world, however, is
provided by small individual mom and pop eateries. In the developing world,
multinational chains are considerably more expensive; they usually are frequented
because they are considered chic and somewhat glamorous and because they usually are
much cleaner than local eateries

Nutritional Value: Because the fast food concept relies on speed, uniformity and low
cost, fast food products are often made with ingredients formulated to achieve a certain
flavor or consistency and to preserve freshness. This requires a high degree of food
engineering, the use of additives and processing techniques that substantially alter the
food from its original form and reduce its nutritional value.

Changes: Fast-food chains have come under fire from consumer groups (such as the
Center for Science in the Public Interest, a longtime fast-food critic) over the past decade.
Some of the concerns have led to the rise of the so-called Slow Food movement. This
movement seeks to preserve local cuisines and ingredients, and directly opposes laws and
habits that favor fast-food choices. Among other things, it strives to educate consumers'

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palates to prefer what it considers richer, more varied and more nourishing tastes of fresh
local ingredients harvested in season
Some of the large fast-food chains are beginning to incorporate healthier alternatives in
their menu, e.g., salads and fresh fruit. However, some people see these moves as a
tokenistic and commercial measure, rather than an appropriate reaction to ethical
concerns about the world ecology and people's health. McDonald's has announced that in
March of 2006, the chain will include nutritional information on the packaging of all of
its products

Consumer appeal: Fast-food outlets have become popular with consumers for several
reasons. One is that through economies of scale in purchasing and producing food, these
companies can deliver food to consumers at a very low cost. In addition, its predictability
can be reassuring to a hungry person in a hurry or far from home.

World over, American and American-style fast food outlets have been popular for their
quality, customer service and novelty. Many consumers nonetheless see them as symbols
of the wealth, progress and well-ordered openness of Western society and therefore
become trendy attractions in many cities around the world, particularly among younger
people with more varied tastes

Criticisms: Because of its convenience, fast food is popular and commercially successful
in most modern societies, but it is often criticized for having the following shortcomings:

 Many popular fast-food menu items are unhealthy, and excessive consumption
can lead to obesity
 Exploitative advertising and marketing are used, especially directed at
children (which can have an adverse effect on their eating habits and health)
 It causes environmental damage through excessive packaging and clearing
forests for animal rearing
 It reduces the diversity of local cuisines

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 It survives on a low-wage, low-benefit employment model, promoting
exploitative labor practices throughout the food and food service industry
 Its franchising scheme (royalties)

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 INDIAN FAST FOOD INDUSTRY- OVERVIEW

In the mid 1990s, a spate of global fast food chains entered India hoping to capture a part
of Indian fast food segment. But they found it difficult to establish themselves. Gaining
acceptance locally and blending into the Indian culture proved difficult.

McDonald’s began to look at the Indian market sometime in 1990, when its executives
started making exploratory trips. By 1994, some international suppliers of McDonald’s
had visited India to identify local partners. Meetings with agriculturists were conducted
with a view to set up a supply chain. Finally, all this fructified when a 50:50 joint venture
was entered between McDonald’s and Hardcastle Restaurants Pvt. Ltd. owned by Amit
Jatia and his family. Similarly, Vikram Bakshi (whose family was in real estate) entered
into a JV with McDonald’s for Delhi. Both partners signed the JVs in April 1995.

In 1996, Domino’s set up base in India by entering into a long-term franchisee agreement
with the Bhartia brothers who had businesses in chemicals and fertilizers. The previous
year, KFC has chosen to set up its own outlet in Delhi, when it entered the Indian market.
Pizza Hut entered in 1996, and opened its first restaurant in Bangalore.

While McDonald's was establishing itself Domino's faced tough competition when it
entered India, with homegrown players like Niruala's and Pizza Corner and MNCs like
Pizza Hut and Wimpy's already having established themselves in the market. The home
delivery concept that the company introduced had not yet caught on. Besides, Domino's
was in a dilemma about how it should position pizza - as a meal or a snack? How far
should they go in indianising the pizza so that it had mass appeal, and yet did not lose its
identity?

In 1997, McDonald's was facing several problems. Most Indians thought McDonald's was
expensive, and many didn't like the fact that it served only non-vegetarian meals. The
'bland' taste of its preparations didn't go down well with the Indian palate. In 1998, the
company faced intense competition from domestic food chains. Globally, McDonald's
success had been built on its commitment to the QSCV (quality, service, cleanliness and
value) principle. However, Indian customers viewed the product sold by McDonalds not

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as burgers per se but as fast service in a clean setting. This notion of value was something
that could not remain unique. Other fast food chains began to adopt the same 'fast and
clean service' formula, and soon it wasn't a distinguishing feature of McDonald's
anymore.

The entry of Kentucky Fried Chicken (KFC) was greeted with protests of farmers,
consumers, doctors and environmentalists. The fast food chain, which initially planned to
set up 30 restaurants by 1998, was not able to do so, as its revenues did not pick up. In
early 1998, KFC began to investigate whole issue more closely. Their findings revealed
that KFC was perceived as a restaurant serving only chicken.

Indian families wanted more variety, and the impression that KFC had only one item on
its menu, didn’t enhance its appeal. Moreover, KFC was also thought to be expensive.
KFC’s failure was also partly attributed to certain drawbacks in the message it sent out to
consumers about its positioning. It wanted to position itself as a family restaurant and not
as a teenage hangout. But according to analysts, the ‘family restaurant’ positioning didn’t
come clearly in its communication. Consumers saw it as a fast food joint specializing in a
chicken recipe.

INDIANIZING ALL THE McDonald’s WAY

It gain acceptance locally, McDonald’s had to modify its menu – substituting mutton for
beef in the burgers, (something it had never done in any other market), choosing names
like McAloo and Maharaja Mac, and introducing variations and dishes that were not
available at any McDonald's outlet anywhere in the world.

From the meticulous sourcing of raw materials and the elimination of beef and pork from
its ‘desi’ menus to even segregating the vegetarian and non-vegetarian workers,
McDonald’s seemed to be extremely orthodox in its approach. India was the first country
to use the complete vegetable burger, creating the eggless mayonnaise vegetable burger,
so was the case with ‘mutton’ burgers.

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 KFC HISTORY

“Chicken is our business, but innovation and customer satisfaction are our passions”

Since the 1950's, KFC has grown at a remarkable pace from one small roadside
restaurant, to an internationally renowned restaurant chain - the largest chain of chicken
restaurants in the world.

It was at the age of 40 working as a service station operator in Kentucky that the Colonel
Harland D Sanders began to serve food to hungry travelers from his own living quarters.
Before long customers were turning up for food alone, so he moved across the street to a
motel and 142-seater restaurant which he named "Sanders". It was during this time that
the Colonel devised his recipe for fried chicken using a secret blend of eleven Herbs and
spices. His restaurant became so popular the state governor made Harland Saunders a
Kentucky Colonel in honour of his fine contribution to state cuisine.

Using his last $105 Social Security cheque he set up Kentucky Fried Chicken, his own
chicken franchising business, travelling across the country from restaurant to restaurant
cooking chicken for the owners and their employers. Following the owners' approval of
his special KFC recipe, Colonel Sanders entered upon a handshake agreement, which
provided him with a nickel for every chicken the restaurant sold.

In January 1997, PepsiCo, Inc. announced the spin-off of its quick service restaurants --
KFC, Taco Bell and Pizza Hut -- into an independent restaurant company, Tricon Global
Restaurants, Inc. In May 2002, the company announced it received shareholders' approval
to change it's corporation name to Yum! Brands, Inc. The company, which owns A&W
All-American Food Restaurants, KFC, Long John Silvers, Pizza Hut and Taco Bell
restaurants, is the world's largest restaurant company in terms of system units with nearly
32,500 in more than 100 countries and territories.

KFC now offers great tasting meals and snacks in over 30,000 restaurants around the
world. Every day over 6.5 million people make KFC part of their lives. Laid head to

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claw, KFC chickens consumed worldwide would stretch 458,065 kilometres and would
circle the earth at the equator 11 times.

When India’s first KFC (Kentucky Fried Chicken) opened in 1995, its arrival sparked
immediate controversy, ranging from local government charges that the restaurant sold
carcinogenic foods laced with harmful monosodium glutamate; to tens of thousands of
farmers protesting against a suspected takeover of the locally based agricultural system.

But the company has managed to put that behind and has been recording an impressive
double-digit growth since then, and today, over 1.7 lakh people walk into the 12 KFC
outlets across the country every week. The Delhi outlet saw over 10,000 storming into it
in the first two days of opening!

As a part of the growth strategy, YIR plans to add about 20 more KFC footprints from the
present 12 outlets. A major chunk of this operation will target big cities, especially Delhi
and Mumbai, as it wants to tap these markets first. The company plans to make it a mass
brand, which indicates the beginning of the expansion spree, as KFC is present at only 12
locations. Also, this expansion will be company-financed to a large extend, unlike Pizza
Hut’s franchisee model, with the KFC Hyderabad being a case in point.

The other significant point is KFC’s efforts too woo vegetarians in India, a first in the
world. Combine the inclusion of vegetarian items and with the affordability platform, and
its clear the company is ready to tweak its global positioning around tasty-chicken
platform to woo Indian vegetarians.

The positioning, which is in the process of getting finalized, is not going to be chicken
specific but for taste. This research is designed to confirm the feasibility of this fact and
also find the key consumer’s demographic, behavioral aspects and need states to fine tune
the positioning strategy. This is just the beginning of the decade long plan for
consolidating its position in here.

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McDonald’s

Our first restaurant opened on 15th April 1955 in Des Plaines, Illinois, U.S.A. Almost 50
years down the line, we are the world's largest food service system with more than 30,000
restaurants in 100 countries, serving more than 46 million customers every day

McDonald's opened its doors in India in October 1996. Ever since then, McDonald’s has
opened family restaurants in Mumbai, Delhi, Pune, Ahmedabad, Vadodara, Ludhiana,
Jaipur, Noida Faridabad, Doraha, Manesar.

McDonald’s in India is a 50-50 joint venture partnership between McDonald’s

Corporation [USA] and two Indian businessmen. Amit Jatia’s company Hardcastle
Restaurants Pvt. Ltd. owns and operates McDonald's restaurants in Western India. While
Connaught Plaza Restaurants Pvt. Ltd headed by Vikram Bakshi owns and operates the
Northern operations.

Amit Jatia and Vikram Bakshi who share McDonald's complete commitment to Quality,
Service, Cleanliness and Value (QSC&V) signed their joint-venture agreements with
McDonald's in April 1995, after which they trained extensively, along with their Indian
management team, in McDonald's restaurants in Indonesia and the U.S.A. before opening
the first McDonald’s restaurant in India.

McDonald's India has developed a special menu with vegetarian selections to suit Indian
tastes and preferences and does not offer any beef or pork items in India. In addition, they
have re-formulated some of their products using spices favoured by Indians. Among these
are McVeggie burger, McAloo Tikki burger, Veg. Pizza McPuff and Chicken McGrill
burger. They also created eggless sandwich sauces for our vegetarian customers. Even
their soft serves and McShakes are egg-less, offering a larger variety to our vegetarian
consumers.

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 NEED FOR STUDY
Knowing and understanding customer needs is at the centre of every successful business,
whether it sells directly to individuals or other businesses. Once you have this
knowledge, you can use it to persuade potential and existing customers that buying from
you is in their best interests or alter it to satisfy customer’s wants, needs and ultimately
delight him with your product.

The incidence of Fast Food consumption in urban India is accelerating much faster than
most people anticipated and western quick service restaurants (QSR’s) are increasingly
making their presence felt in India.

Mc Donald’s entered India a decade ago and have succeeded in expanding rapidly and
successfully. They had targeted kids & parents initially and have now moved on to
popularizing their menu options and drive affordability. Past research has also showed
McDonald’s to have a high popularity amongst kids and their preferred choice when
eating out.

KFC also entered India almost a decade ago but has remained largely dormant in its
marketing activities. However it now wishes to expand its presence across various cities
and step up its marketing aggression.

In that context it wants to explore

Phase I- The manner in which people evaluate and relate to various branded QSR’s, his
perception of KFC, key customers, their demographic and behavioural profile, occasions
of visit and key similarities and differences between KFC and McDonald’s. Whether is
should be positioned as a snack or a meal joint and where is KFC losing out or is at an
advantage.

Phase II- The manner in which people choose and relate to various products at KFC, key
customers, their demographic and behavioural profile, occasions and time of visit.
Alternate choices and expectations while eating-out.

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 RESEARCH OBJECTIVES

The objective of the research broadly is, “Understanding the KFC consumer”. To be able
to understand the consumer behaviour for fast food industry, information in following
areas need to be found out:
 Who is buying my brand / category
 Who are the heavy category buyers
 Why do consumers choose my brand
 Do consumers understand what my brand stands for
 How do they spend money on eating- out
 What motivates consumer to purchase
 What is my brand personality perceived as and how does it compare to the
competition
 What other categories interact with mine, and which are important
 What cross category opportunities are there

The same exercise is repeated in Phase II but with a focus on six products of KFC
amongst KFC consumers.

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 LITERATURE REVIEW

(1) Urban Indian Consumers amongst the Top 10 Most Frequent Eaters of Fast
Food Globally
 One-third of urban Indians opt for fast food even during breakfast, cite
‘Cleanliness and Hygiene’ as the clincher for brand choice
 Asians flock to fast food counters more frequently than their American and
European counterparts

The Fast Food phenomenon has finally come of age in India. Urban Indians now find
themselves amongst the top 10 most frequent consumers of Fast Food across the globe.
According to the findings of the latest online survey from ACNielsen, the world’s leading
market research firm, over 70% of urban Indians consume food from take-away
restaurants once a month or more frequently. Of these 37% of the adult Indian population
do so at least once a week. This makes India one of the top 10 countries amongst the 28
surveyed, in terms of frequency of fast food consumption.

(http://www.acnielsen.co.in/news.asp?newsID=112)
(2) Protest marks KFC launch in Mumbai, expansion plan
May 11, 2006
The launch of fast food major Kentucky Fried Chicken's (KFC) outlet and its
announcement of countrywide expansion plan here Thursday were marked by protests
against the alleged maltreatment of chicken by the company.

Activists of the People for Ethical Treatment of Animals (PETA), a non-government

organisation, demonstrated against KFC's treatment of animals before the new restaurant
in the western Mumbai suburb of Bandra.

They held placards alleging that KFC's suppliers keep chickens in overcrowded farms.
"KFC is the largest buyer of chicken and therefore the largest killer of chickens too," Jaya
Simha, campaign and legal affairs coordinator of PeTA, told IANS.

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"Ideally we would like the world to turn vegetarian. But the least KFC can do is keep the
chicken comfortable till they are killed," Simha said.

KFC, the world's largest chicken restaurant chain, Thursday also announced its expansion
plan to have up to 28 outlets in the country by the end of 2006.

"By what we have experienced till now, our customers have had the best of experiences
with us," said Sandeep Kohli, managing director (Indian subcontinent) of "Yum!
Restaurants International" (YRI), whose flagship brand is KFC.

"We plan to expand to wherever our customers are and there is no limit to our expansion.
By the year-end we will have anywhere between 25-28 outlets," Kohli said.

KFC, which opened its first restaurant in Bangalore in 1995, now has 15 outlets -
including five in Bangalore, three in Delhi, two in Pune and one each in Mumbai,
Kolkata, Chandigarh, Ludhiana and Hyderabad.

With around 2,000 customers already being handled per outlet every day in the country,
KFC's presence in Mumbai is an important step in extending the brand's presence in
India, Kohli said.

Speaking about the long delay in entering the Mumbai market, he said the reason was that
the company always looked to maintain its presence in the most important business
location of any city.

"We were waiting for the right location all this while," Kohli clarified.
With global sales of $13.2 billion, company officials view India as a key strategic market
with immense potential for future growth.

KFC today has more than 12,300 restaurants in more than 80 countries serving eight
million customers everyday. It is one of the five brands of YRI including, Pizza Hut, Taco
Bell, A&W and Long John Silver's. (IANS)

PROCESS/METHODOLOGY OF STUDY

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MODUS OPERANDI

 Knowing KFC and understanding its problems since its entry in India
 Identification of customers, products and other differencing features through
researches done for KFC Bangalore
 Studying KFC brand identity, Emotional, Experiential and Positioning Aspect of
KFC and KFC Ad-cept finding
 Designing a questionnaire that incorporates all factors which have a say directly
or indirectly in a consumer’s decision (A sample of the questionnaire is attached
with the report)
 Sampling – A statistical approach to decision making
Sample size chosen – 200 consumers for Phase I and 270 for phase II
 Proposed time for completion of the project – 8 weeks
 Data sources:
Primary data – Consumer’s responses to their answers to questions in
questionnaire.
Secondary data – Collected from documents of the company, Past MR by various
reputed organizations, magazines and online resources.
 Research environment – Outside KFC and Mc Donald’s outlets for Phase I and
In-store KFC for Phase II

 Areas chosen for study:

Noida Sector 18 and Rajouri Garden
 Sample is chosen at random for phase I and for phase II, consumers of
specifically these products are chosen are interviewed.
Interviewing customers who have just eaten at these outlets
Sample comprised the head of the group
 Collection and tabulation of all data
 Analysis and data interpretations

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  Drawing inferences from the sample statistics
 Presentation of result

RESEARCH METHODOLOGY

We followed the non-probability sampling method as no well-defined databases or lists

were available (sampling frame) for our target population from which we could randomly
pick up sample elements. Hence we followed random sampling.
For Phase I- Data was collected from two outlets of KFC at Noida Sector 18 and City
Square Mall, Rajouri garden and a sample size of 100 respondents was covered. Similarly
100 respondents were interviewed at two locations of McDonald’s outlets at Sector 18
and Center Stage Mall, Noida. People coming out of these outlets after eating were
questioned using a structured questionnaire.

For Phase II- Date was collected from two outlets of KFC at Noida Sector 18 and City
Square Mall, Rajouri garden and a sample size of 270 respondents was covered in total.
Six products of KFC- Chana Crunch Snacker, Chicken Crunch Snacker, Hot & Crispy
Chicken, Original Recipe Zinger Burger had 50 respondents each and Chicken in a
Bucket had 30 respondents.
The research also tried covering the entire day’s timings from 11 a.m. to 11 p.m. so that it
has a fair reflection on its findings and was directed at people who had visited the outlet
before.

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 STUDY RESULTS AND ITS INTERPRETATIONS

PHASE- I

I. DEMOGRAPHIC PROFILE OF RESPONDENTS

(1) SEX PROFILE OF RESPONDENTS

Figure 1.1a Figure 1.1b

KFC consumers show a male skew vis-à-vis Mc Donald’s which has an even
distribution.

(2) AGE DISTRIBUTION OF RESPONDENTS

Figure 1.2a Figure 1.2b

Age distribution of Respondents shows both KFC & Mc Donald’s being dominated
by the age group of 18-25 or the Young Adults. The next group is between 25-35
years again for both fast food joints. But the point to be noted here is that in case of
Mc Donald’s, a major segment from these age groups are also coming with kids and
usually the decision makers are the kids themselves which is not the case with KFC.

24
(3) OCCUPATION OF RESPONDENTS

Figure 1.3a Figure 1.3b

Mc Donald’s has dominance in the working segment primarily driven by families.

KFC clearly is the preferred choice of youth & young adults.

(4) NUMBER OF PEOPLE IN THE GROUP

Large families show a preference for Mc Donald’s whereas KFC has more nucleus
audience profile. Apart from single combos and bucket we also have duet meals.

25
(5) NATURE OF GROUPS

Figure 1.5a Figure 1.5b

For Mc Donald’s and KFC the highest percentage of Respondents coming to these
outlets are with friends followed by families. But KFC has 9% more respondents
coming with friends than Mc Donald’s while Mc Donald’s has a 10% more
respondents coming with families than KFC.

26
(6)FOOD PREFERENCE OF EXISTING CONSUMER GROUPS

Figure 1.6a Figure 1.6b

While Mc Donald’s seem to find appeal to all three segments, KFC seems to be losing
out on mixed groups. We may have to give some support to our vegetarian products.

(7) INDIVIDUAL VEG/NONVEG SPLIT

Figure 1.7a

Mc Donald's KFC
AVG Bill Value 67.85 97.89

72.4% of KFC consumers (including all people accompanying the respondents) are
non-vegetarian while only 59.4% of Mc Donald’s consumers (including all people
accompanying the respondents) are non-vegetarian showing a clear liking of non-
vegetarians for KFC food

27
 Figure 1.7b

Mc Donald’s focus on low unit price of its products & perceptions as a snack place
seems to negatively rub off on average amount spent

(8) AREA DISTRIBUTION OF CONSUMERS FROM RESPECTIVE OUTLET

Figure 1.8a

For both stores appeal is limited to primary to <10km of store radius. Indicates we
need to focus most of our marketing activities within this area

28
 Figure 1.8b

Appeal primary limited to <10 km radius of store.

Figure 1.8c

Primarily appeal limited to west Delhi. However a significant number of people from
south Delhi (having their office in the area)

Area Distribution- An overview

 All these outlets attract most of their present consumers from nearby areas
especially so for the Noida outlets of both Mc Donald’s and KFC

29
  There are already a large number of fast food outlets in the area including
specialty chicken restaurants in Noida Sector 18 that have a huge consumer base.

 With a large number of restaurants and fast-food joints or food courts coming up
in various new malls there is a probability of shifting of consumers to nearer
joints.

2. BEHAVIORAL PROFILE OF CONSUMERS

(1) NUMBER OF VISITS TO THE OUTLET

Figure 2.1a Figure 2.1b

Sharp difference in translating initial 2-3 visits to most visited fast food outlet. However
this needs to be validated over time as KFC is a newer outlet compared to McDonald’s in
Noida
Sharp difference in translating initial 2-3 visits to most visited fast food outlet.
However this needs to be validated over time as KFC is a newer outlet compared to
McDonald’s in Noida

30
(2) Comparison of number of times visit to KFC Noida & Rajouri

Figure 2.2

Maximum consumers of KFC Noida have visited the outlet just 2-3 times, where as KFC
Rajouri has maximum consumers in 2-3 times and an almost equal number in more than
6 times visit which is in alignment with the fact that KFC Rajouri is an older outlet than
Noida.

(3) Mc DONALD’S CONSUMER’S awareness of KFC

Figure 2.3a Figure 2.3b

Significant number of McDonald’s consumers is not aware of KFC (refer to figure

2.3a) while a large number also aware of KFC but never visited (refer to figure 2.3b)

31
(4) Variation of awareness about KFC among McDonald’s consumers with their
age

Figure 2.4

Awareness of KFC is highest among 18-25 year old consumers followed by 25-35
years old.

(5) Fast food eating out frequency

Figure 2.5a
The KFC consumer is young and an ‘eat out freak’. Comparatively Mc Donald’s
more popular amongst a mature audience with a comparatively passive eating out
behavior

32
(6) NATURE OF GROUP VIS-À-VIS FREQUENCY OF EATING OUT

Figure 2.6a Figure 2.6b

When consumers are alone there is no difference in their eating-out frequency for Mc
Donald’s or KFC consumers.

Figure 2.6c Figure 2.6d

When with friends 87% of KFC Respondents tend to visit the outlet One or more
times a week where as in case of Mc Donald’s only 45% of Respondent’s with
friends visit One or more times a week and almost an equal percentage(44%) visit
Mc Donald’s once in a fortnight.

33
 Figure 2.6e Figure 2.6f
Mc Donald’s consumers coming with family are more varied in their frequency of
eating out than KFC consumers 95% of which eat-out One or more times a week at
any fast-food outlet.

Figure 2.6g Figure 2.6h

All Work Colleagues eating out at KFC had an eating-out frequency of One or more
times a week while only 69% Mc Donald’s consumers have the same frequency

Overview:

 Majority of consumers have a frequency of eating out “One or more times a

week”, in all four categories of “Nature of Groups” for both Mc Donald’s & KFC
 Mc Donald’s consumers have a more varied frequency distribution than KFC
consumers who have a higher and concentrated frequency of eating-out hence, “A
greater opportunity to convert these eat-outs of existing KFC consumers at
various fast-food outlets to visits to KFC”.

34
7) REASON FOR EATING OUT

Figure 2.7a Figure 2.7a

KFC suggests a more planned outing compared to McDonalds which scores highly on
quick fix too

Overview:

 “Wanted to get together with friends” is the single most important reason for both,
more so in case of KFC(44%) than Mc Donald’s(28%).
 The second most important reason for Mc Donald’s consumers (13%) is “I was in
this area & hence decided to come here” and “Wanted an enjoyable outing with
family”, while for KFC consumers (18%) it was ‘lunch’.

35
(8) REASON FOR EATING OUT VIS-À-VIS THE NATURE OF GROUP

Mc Donald’s

Figure 2.8a

 For Friends & Family the experience of getting together and enjoying while
eating out is the major reason for consumers to visit Mc Donald’s
 For Work Colleagues & when Alone reason shifts to food for as either a break
from home food or lunch
 Hence depending upon the nature of group the reason for eating out changes and
two important constituents that emerge are the food itself and secondly the
experience of eating out at the outlet

36
KFC

Figure 2.8b

 The same trend is observed among consumers visiting KFC emphasizing the
universality of consumer’s need vis-à-vis the nature of group they eating out with.
 For consumers who are alone or with work colleagues, it’s the food and hence its
attributes like taste, filling, and nutrition or its affordability
 For families and friends the experience of eating at the outlet like the ambience,
comfort, enjoyment, and variety along with value for money assumes equal
importance along with the good food.

37
(9) OTHER FAST-FOOD OUTLETS CONSUMERS VISIT

Figure 2.9a

 Pizza Hut is the often named Other fast-food outlet by Mc Donald’s consumers,
with 47 Responses i.e. 27% of all named outlets
 Pizza Hut is followed by Taste Of India(8%) and Karims(7%)
 KFC constitutes only 4% of all named outlets

38
 Figure 2.8b

 Mc Donald’s is the often named Other fast-food outlet by KFC consumers, with
43 Responses i.e. 31% of all named outlets
 This is followed by Pizza Hut(26%) followed by Café Joints(10%)

This indicates that there is a high inclination of KFC consumers to also visit
McDonald’s while very less inclination of Mc Donald’s consumers to visit KFC

39
 CONCLUSION:

Key Target Segment: The young adults (18-25 years) and significant number in 25-35
year old, either students or working executives who come mostly males who are non-
vegetarian and reside in neighboring areas of the respective outlets and have visited the
outlets before too. Comparatively McDonald’s has a significant consumer base that
comprises of vegetarians and families. The most important reason for frequently the
outlets more than once in a week is catching up with friends and the average spending per
consumer at KFC is Rs 98/- comparatively much higher than McDonald’s Rs 68/- There
is a high inclination of KFC consumers to also visit Mc Donald’s while very less
inclination of Mc Donald’s consumers to visit KFC.

Product Scope: Fast food/ New/ Different/American/ Alienness of taste

Use/User: Enjoyable break/ togetherness/ Young adults

Brand as a person: Spirited/ Cool/ Young

Brand as a symbol: Col Sanders with KFC logo or Red & Blue colours/ Only Chicken

Brand as organization: American MNC

Main Competitor: McDonald’s

40
 RECOMMENDATIONS:

 In the established markets like Australia and the United Kingdom, people have good
idea what a KFC Chicken is. Folks in India need an introduction to the brand.

 Build heritage story into brand communication as well as overall product experience

 Extend KFC experience beyond just chicken

 Vegetarian offering to be communicated on equal footing with chicken rather than as

“also runs”.

 Positioning should revolve around providing “great tasting food”, very close to the
international positioning of “Finger Licking Good”.

 Ambience and value of money to be emphasized

Phase II

(1) CHANA CRUNCH SNACKER VS CHICKEN CRUNCH SNACKER

Sample Covered- Outlet wise

Chana Crunch Chicken Crunch
Snacker Snacker
Noida 21 25
Rajouri 29 25
Total Sample Covered 50 50

41
(1.1)GENDER

Figure 1.1a Figure 1.1b

(1.2) AGE

Figure 1.2a Figure 1.2b

42
(1.3) SEC

Figure 1.3a Figure 1.3b

A significantly higher percentage of SEC A2 & B1 is coming to eat Chicken Crunch

Snacker which is not seen in Chana Crunch Snacker

(1.4) NUMBER OF PEOPLE IN THE GROUP

Figure 1.4a Figure 1.4b

Chana Crunch Chicken Crunch

Snacker Snacker
Average Group Size 2.84 2.58

Could indicate that the Chana Crunch Snacker is driven to KFC mostly because of his
group & not choice.

43
(1.5) EDUCATION

Figure 1.5a Figure 1.5b

(1.6) OCCUPATION

Figure 1.6a Figure 1.6b

44
(1.7) DAY PART (%)

(1.8) GROUP TYPE

Figure 1.8a Figure 1.8b

45
(1.9) NUMBER OF VISITS EARLIER

Figure 1.9a Figure 1.9b

(1.10) What else has been ordered along with the Snacker

46
 Figure 1.10a Figure 1.10b

(1.11) REASON FOR VISITING KFC

Figure 1.11a

Figure 1.11b

47
(1.12) Which main dish was ordered during last visit?

Table 1.12a

Chana Crunch Chicken Crunch

Snacker Snacker
Chana Crunch Snacker 7 0
Veg Thali 8 0
Veg Fingers 2 0
Veggie Feast 8 1
Paneer Tikka Wrap n Roll 5 1
Chicken Crunch Snacker 4 5
Chicken Thali 1 8
Hot & Crispy Chicken 5 13
Original Recipe Chicken 2 5
Crispy Chicken Strips 0 6
Chicken Tikka Wrap n Roll 1 2
Zinger burger 6 5
Colonel burger 1 3
Bucket Of Chicken 0 1

(1.13) Which dish would you eat if their was no KFC

Figure 1.13a Figure 1.13b

Overall 56% people choose burger (Figure 1.13a) and Overall only 38% people choose a
burger (Figure 1.13b)

48
(1.14) WHERE WOULD YOU GO IN CASE THERE WAS NO KFC?

Figure 1.14a Figure 1.14b

(1.14) Vegetarians as a percentage of total number of consumers

Table 1.14a

Chana Crunch Snacker 32.64%

Chicken Crunch Snacker 8.53%

(1.15) EXPECTATION FROM SNACKER

Figure 1.15a Figure 1.15b

49
Quick fix meal (on the go) is the most important reason for Chana Crunch Snacker
(Figure 1.15a) and Specific food taste is an important reason for chicken crunch snacker
which reflects its liking (Figure 1.15b)

(1.16) Why is this dish apt for this occasion?

Figure 1.16a Figure 1.16b

Light & Wanted to experiment are two most important reasons for eating a snacker.

50
(2) BUCKET OF CHICKEN

(2.1) Sample Covered- Outlet wise

Table 2.1

Noida 22
Rajouri 9
Total Sample Covered 31

(2.2) Gender

Figure 2.2

(2.3) Age

51
Figure 2.3
(2.4) SEC

Figure 2.4

(2.5) EDUCATION

Figure 2.5

52
(2.6) OCCUPATION

Figure 2.6

Majority of BOC consumers are Students followed by Executives/Officers

(2.7) GROUP SIZE

Figure 2.7

Average Group Size 3.87

53
(2.8) Generally Bucket of Chicken is ordered when the group size is larger

Figure 2.8

Almost half of COB consumers are groups of FRIENDS followed by families.

(2.9) Number of times visited earlier

Figure 2.9

Almost half of BOC Consumers have visited the outlet more than 4 times

54
(2.10) DAY PART (%)

Figure 2.10

(2.11) What else has been ordered along with the main dish?

Figure 2.11

Soft Drink & French Fries are the most ordered along with the main dish

55
(2.12) REASONS FOR VISITING KFC

(2.13) MAIN DISH ORDERED ON LAST VISIT

Figure 2.13

56
(2.14) WHAT WOULD YOU EAT IN CASE THERE WAS NO KFC?

Figure 2.14

Chicken Burger & Chicken Mc Grill together also account for 26% which equal to the
number of people opting for any other Chicken Dish

(2.15) WHERE WOULD YOU EAT IN CASE THERE WAS NO KFC?

Figure 2.15

57
(2.16) Which of the following best describes what you were looking for in the Bucket
Of Chicken

Figure 2.16

(2.17) Why is this dish apt for this occasion

Figure 2.17

58
(3) ZINGER BURGER

(3.1) Sample Covered- Outlet wise

Noida 35
Rajouri 15
Total Sample Covered 50

(3.2) GENDER

Figure 3.2

59
(3.3) AGE DISTRIBUTION

Figure 3.3

The age group of 19-24 years comprises 38% of Zinger Burger Consumers followed by
25-29 years of age group (26%)

(3.4) SEC

Figure 3.4

Insignificant penetration in SEC B1 & B2 for Zinger Burger.

60
(3.5) GROUP SIZE

Figure 3.5

60% of Zinger Consumers come in groups of “Two’s”

(3.6) EDUCATION

Figure 3.6

61
(3.7) OCCUPATION

Figure 3.7

Majority of Zinger consumers are Students followed by Executives/Officers similar to

Bucket Consumers

(3.8) GROUP TYPE

Figure 3.8

62
(3.9) DAY PART (%)

Figure 3.9
Zinger has highest “snack presence” and also a significant number of customers at lunch

(3.10) NUMBER OF TIMES VISITED EARLIER

Figure 3.10

42% of Zinger Burger Consumers are moderate or heavy consumers who have visited the
outlet more than 4 times

63
(3.11) What else has been ordered along with the main dish?

Soft Drink & French Fries are again the most obvious Ordered with Zinger (main dish)

(3.12) REASON FOR VISITING KFC

Figure 3.12

64
(3.13) MAIN DISH ORDERED ON LAST VISIT

Zinger Burger Consumers seem to be very loyal to the product & obviously like the
product too

(3.14) What would you eat if there was no KFC?

Figure 3.14

For 36% Zinger burger consumer Burger itself is the alternate choice in case there was no
KFC

65
(3.15) Where would you go if there was no KFC?

(3.16) Which of the following best describes what you were looking for in the Zinger
Burger

Figure 3.16

Zinger Burger is attracting people who want to experiment and discover a new taste.
IT REFLECTS THE FACT THAT PEOPLE ARE GETTING BORED OF THE USUAL
(Read Mc Donald’s)

66
(3.17) WHY IS THIS DISH APT FOR THIS OCCASION

(4) HOT & CRISPY VS ORIGINAL RECIPE

(4.1) Sample Covered- Outlet wise

Table 4.1
Hot & Crispy Original Recipe
Noida 27 29
Rajouri 23 21
Total Sample Covered 50 50

67
(4.2) GENDER

Figure 4.2a Figure 4.2b

(4.3) AGE

Figure 4.3a Figure 4.3b

36% OR Consumers are in 19-24 age group than 24% H&C Consumers

68
(4.4) SEC

Figure 4.4a Figure 4.4b

(4.5) NUMBER OF PEOPLE IN A GROUP (%)

Figure 4.5a Figure 4.5b

69
(4.6) EDUCATION

Figure 4.6a Figure 4.6b

(4.7) OCCUPATION

Figure 4.7a Figure 4.7b

70
(4.8) GROUP TYPE

Figure 4.8a Figure 4.8b

Table 4.8c
Hot & Crispy Original Recipe
Average Group Size 2.3 2.28

(4.9) DAY PART (%)

Figure 4.9a Figure 4.9b

Both have significant snack presence significantly more so in case of OR. H&C is
more customers during lunch while OR has more customers at dinner time

71
(4.10) NUMBER OF VISITS TO THE OUTLET EARLIER

Figure 4.10a Figure 4.10b

New Customers of KFC are attracted by H&C later they try OR and eventually settle
according to their taste & liking, higher percentage settling for H&C (52%) than OR
(50%)

(4.11) What else has been ordered along with the main dish?

72
(4.12) REASONS FOR VISITING KFC

Figure 4.12a Figure 4.12b

(4.13) Which main dish was ordered during last visit?

Figure 4.13a Figure 4.13b

73
(4.14) REASON FOR VISITING KFC

Figure 4.14a Figure 4.14b

(4.15) Which of the following best describes what you are looking for?

Figure 4.15a Figure 4.15b

74
(4.16) What would you have eaten on this occasion if there was no KFC?

Figure 4.16a Figure 4.16b

H&C: Burgers together comprise 54% as the alternate choice while a chicken dish is
only 14%
OR: Burgers together comprise 56% as the alternate choice while a chicken dish is
only 20%

(4.17) Where would you have eaten on this occasion if there was no KFC?

Figure 4.17a Figure 4.17b

Mc Donald’s is the clear alternate choice for majority of KFC Consumers

75
(4.18) Vegetarians as a percentage of total number of consumers (who
accompanied H&C or OR consumers)

Table 4.18
Hot & Crispy 3.45%
Original Recipe 6.14%

(4.19) Why is this Dish apt for this occasion?

Figure 4.19b

76
 (5) FINDING OF PHASE II- SNAPSHOT:

5.1 CHANA CRUNCH SNACKER & CHICKEN CRUNCH SNACKER

CHANA CRUNCH CHICKEN CRUNCH

SNACKER SNACKER
AGE 19-24 19-24
SEC A1 A1,A2
Average Group Size 2.84 2.58
Education Grad/PG General Grad/PG General
Occupation Student/Executive,
officer Student/Executive, officer
Day Part 3p.m. to 7p.m 3p.m. to 7p.m
Group Type Friends/Family Friends/Family
Number of visits 1-2 times 1-2 times
What else has been ordered Soft Drink, French Soft Drink, French Fries
along with the main dish Fries
Reason Quick meal (on the Quick meal (on the go),
go), Catching up with Catching up with friends
friends
Main Dish ordered last time Veg Thali & Veggie H&C
Feast
Alternate dish Burger (Aloo Tikki Burger
Burger)
Alternate eating-joint McDonald’s McDonald’s
Expectations for the dish Quick meal, Discover Quick meal, Discover a
a new taste new taste
Why is this apt apt for this Wanted to experiment, Light, Wanted to
occasion Light experiment

Product: Light, New & Unique taste , Affordable

Key target customers: 19-24 year students and executives belonging to SEC A1 and also
SEC A2 in case of Chicken Crunch Snacker.

Day Part: Snack time (3p.m. – 7p.m.)

Need State: (a) Quick Meal on the go (b) A new exciting taste at affordable price (c)
Convenient place to interact with friends & de-stress

77
Occasion: Catching up with friends over a snack or a Quick Meal with family and
friends
Positioning: Fast-food, exciting, uniqueness, young, lightness, Value for money,
Enjoyable break/ togetherness of friends & family

However its target segment is quiet limited to young adults, mainly students and
vegetarian consumers accompanying a group which is a matter of concern.

Recommendation:

(1) Adding a few more variations in snacker especially Chana Crunch on the lines of
“Aloo McTikki Burger” & “McVeggie Burger” of McDonald’s which are very popular

(2) Adding a new range of light sandwiches that KFC already has in other countries

5.2. CHICKEN in a BUCKET

CHICKEN in a BUCKET
Age 19-24, 25-29
SEC A1,A2
Average Group Size 3.87
Grad/PG Professional, Grad/PG
Education
General
Occupation Student/Executive, officer
Day Part 3p.m. to 7p.m
Group Type Friends (49%)
Number of visits More than 4 times
What else has been ordered along with the
Soft Drink, French Fries
main dish
Indulge treat myself/others to
Reason
great food
Main Dish ordered last time H&C
Alternate dish Burger (26%) , Chicken (26%)
Alternate eating-joint McDonald’s

78
Expectations for the dish Discover a new taste
Why is this apt for this occasion Good Taste, Tried and liked before

Product: Filing, Uniqueness, Taste , Crispy & Crunchy, Heritage

Key target customers: 19-24 and 25-29 year students and executives belonging to
SEC A1 and SEC A2, Moderate to heavy visitors

Day Part: Snack time (3p.m. – 7p.m.)

Need State: (a) Filling meal (b) Indulge/treat myself/others to great food (c) A new
unique taste (d) Convenient place to interact with friends & de-stress

Occasion: Enjoyable togetherness of friends over a meal or treating them for special
occasions with great food

Positioning: Fast-food, exciting, uniqueness, young, filling, Crispy & Crunchy, Value
for money, Enjoyable break/ togetherness of friends, Heritage story

However its target segment is quiet limited to young adults, mainly students and
vegetarian consumers accompanying a group which is a matter of concern

Recommendations:

(1) To increase its popularity in groups of families and in higher age groups it can be
Combo-ed with Bread or with Veggie Pulao+ Curry since at lunch or dinner this
combination gives a more “Filling-Meal-Appeal”
(2) Although Chicken Thali is a good affordable meal, the Makhani Curry is not very
appealing to customers and needs to be changed when Combo-ed with COB else
it spoils the experience of Eating COB too
(3) KFC at present has just the fried chicken while that is a new taste that’s attracting
Indian customers however in sync with the Indian palate it should come out with

79
 Roasted, Grilled Chicken which are dry or semi-dry since there is a large number
of potential customers there who are ready to experiment the Indian Chicken Dish
with a different taste but are a little wary of trying a “Complete American Food”.

5.3. ZINGER BURGER

Zinger Burger
Age 19-24 (36%) , 25-29 (26%)
SEC A1,A2
Average Group Size 2.58
Education Grad/PG Professional
Occupation Student/Executive, officer
Day Part 3p.m. to 7p.m
Group Type Friends , Work Colleagues
Number of visits More than 4 times
What else has been ordered along with the Soft Drink, French Fries &
main dish H&C
Work Lunch & Want Specific
Reason
type of food
Main Dish ordered last time Zinger Burger
Alternate dish Burger (36%)
Alternate eating-joint McDonald’s
Expectations for the dish Discover a new taste
Tried and liked before (34%),
Why is this apt for this occasion
Good Taste (18%)

Product: Filing, Innovative, Uniqueness Concept of a big chicken piece in a burger,

Taste, Crispy & Crunchy

Key target customers: 19-24 and 25-29 year students and executives belonging to SEC
A1 and SEC A2, Moderate to heavy visitors

Day Part: Highest Snack time (3p.m. – 7p.m.), however meal time (lunch & dinner)
presence significant too

80
Need State: (a) Filling lunch (b) Specific food taste (c) A unique riveting taste (d)
Convenient place to interact with friends & de-stress

Occasion: Work lunch & Craving for a specific taste

Positioning: Fast-food, interesting palate unique to KFC, young, filling, Crispy &
Crunchy, Surprising break from other burgers (McDonald’s)

The only areas that need probing is:

(1) The Crispiness of the burger is not as much as claimed.

(2) There is a divided opinion on whether the chicken piece in Zinger Burger be of the
present big size or smaller pieces assorted together to make it easier to eat.

5.4. HOT & CRISPY and ORIGINAL RECIPE

HOT & CRISY ORIGINAL RECIPE

Age 25-29 19-24
SEC A1 (80%) A1(56%), A2 (34%)
Average Group Size 2.30 2.28
Education Grad/PG General Grad/PG General
Executive, Executive,
Occupation Officer(30%), Officer(36%),
Businessmen(28%) Businessmen(36%)
Day Part 3p.m. to 7p.m (56%) 3p.m. to 7p.m (66%)
Family, Work Friends, Work
Group Type
Colleagues Colleagues
Number of visits More than 4 times More than 4 times
What else has been ordered Soft Drink, French
Soft Drink, Burger
along with the main dish Fries
Indulge/Treat
Reason After Shopping myself/others to great
food
H&C (42%),
Main Dish ordered last time H&C (34%), OR (23%)
OR(12%)
Alternate dish Burger (54%), Burger (56%), Chicken

81
 Chicken (12%) (20%)
Alternate eating-joint McDonald’s McDonald’s
Discover a new taste,
Expectations for the dish Specific food taste
Specific food taste
Why is this apt apt for this Tried before and
Wanted to experiment
occasion liked

FOR HOT & CRISPY:

Product: Uniqueness, Taste , Crispy & Crunchy, Heritage

Key target customers: 25-29 year executives and businessmen belonging to SEC
A1,Moderate to heavy visitors

Day Part: Snack time (3p.m. – 7p.m.)

Need State: (a) Snacking (b) Specific food taste that's new unique & riveting (d)
Convenient place to relax with family and work colleagues & de-stress

Occasion: After Shopping for families and Work-lunch for Colleagues

Positioning: Fast-food, uniqueness, Chicken Specialist, Crispy & Crunchy, Enjoyable

break from work or shopping, International Taste & standard and Heritage story

82
FOR ORIGINAL RECIPE:

Product: Uniqueness, Taste ,Tender & Juicy, Secret formulae of 11 herbs, Heritage

Key target customers: 19-24 year executives and businessmen belonging to SEC A1 and
A2,Moderate to heavy visitors

Day Part: Snack time (3p.m. – 7p.m.)

Need State: (a) Snacking (b) Discover a new taste & A specific food taste (d)
Indulge/Treat myself/others to great food with friends and work colleagues & take a
break from normal boring food

Occasion: Enjoyable togetherness with friends over a great tasting snack and Work-
lunch for Colleagues

Positioning: Fast-food, uniqueness, New taste , Chicken Specialist, Tender & Juicy,
Adventurous , International Taste & standard ,Heritage story and Enjoyable break

H&C and OR

H&C is actually attracting people and it is the trial dish, OR is experimented after few
visits especially by a younger age group from both SEC A1 & A2 that is more
adventurous and are visiting KFC with a friends while families are generally settling for
H&C which is tried before & liked dish.

Recommendations:

(1) Its observed that a piece of H&C is included in “Chicken Thali”, “Variety Meal”, “2
in 1 Meal”, as the filling in “Zinger Burger and also has a “Chicken in a Bucket”
option. While OR is only available as a separate dish which implies there is no trial

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 by a consumers taking any of these other dishes. All these meals should also have an
option with OR and should be asked while ordering.

(2) More variations of Chicken Dishes (Roasted or Grilled, Dry or Semi-Dry) should be
introduced since lack of variety was a common complain by customers besides these
could be served with salad and ketchup of different types (Tomato, Chilly, Mint,
Tamarind etc) to enhance taste and give more options to customers.

(6) Comments by consumers of KFC

NOIDA

 A very strong pungent smell (of frying of Chicken)

 Plates given were cracked
 French fries are not good/not fresh
 Curry given with Chicken Thali is awful
 Wrong orders were served by helper
 Chicken piece in the Zinger Burger is one single big piece which makes it
uncomfortable to eat
 The Chicken Tikka Wrap ‘n’ Roll has a bone in its tikka
 Lack of variety in the menu & Standardization of products at different outlets

RAJOURI

 No fizz in the Soft Drink

 The Burgers is soft & starts breaking after some time
 They have only one type of ketchup (tomato)
 Lack of variety in the menu & Standardization of products at different outlets

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OVER ALL POSITIONING:

Nature favors extremes

The same is true in marketing. The best chance for success is to position your brand
as far from the leader as possible. Build your position too close to the leader & they
will crowd you out. For example Coke is marketed as authentic & red while Pepsi is
choice of a new generation & blue.

So even though Mc Donald’s is undoubtedly the most important competitor of KFC,

KFC should try being as different as it can because although consumers may be
looking for the same dish called burger but clearly want a completely new, different
taste.

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 APPENDIX - QUESTIONNAIRE (PHASE I)

Respondent's Personal For Mc Donald's

Details consumers
Other
Veg / Tota No. of Last time fast No. of Last Reaso
No. in Non l bill times you food Are you times time Fast food ns for
Respondent's the Nature of veg valu visit to visited outlets aware of Visited visited visited eating out eating
Day Name Sex Age Address Occupation group group split e the outlet the outlet you visit KFC? KFC KFC KFC frequency out

APPENDIX D- QUESTINNAIRE (PHASE-II)

Market Visit Questionnaire (In-store)

Name: ________________________________Sex: M / F

Address:___________________________________________________________________

Age:

(a) 18 or below (b) 19-24 (c) 25-29 (d) 30-39 (e) 40 and above

Occupation:

(a) Student (b) Executive/Officer (c) Businessmen (d) Self Employed Professional (e) House
Wife (f) Others(Specify)

Education:

(a) School up to 12th (b) Some College but not graduate (c) Graduate/PG General (d)
Graduate/PG Professional

Group Type:

(a) Friends (b) Family (c) Work Colleagues (d) Bf/Gf (e) Alone (f) Others(Specify)
___________

No. of people in the group: _______________Veg/ Non Veg split: _____________________

Education & Occupation of the person who contributes maximum to the household:

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 Illiterate School School SSC/ Some Graduate Graduate/
upto 4 upto 5-9 HSC college but / PG PG (Prof)
yrs yrs not grad (Gen)
Unskilled E2 E2 E1 D D D D
Skilled worker E2 E1 D C C B2 B2
Petty trader E2 D D C C B2 B2
Shop owner D D C B2 B1 A2 A2
Businessman/Industrialist
No. of employees
None D C B2 B1 A2 A2 A1
1-9 C B2 B2 B1 A2 A1 A1
10+ B1 B1 A2 A2 A1 A1 A1
Selfemployed D D D B2 B1 A2 A1
professional
Clerical/Salesman D D D C B2 B1 B1
Supervisory level D D C C B2 B1 A2
Officer/Executive C C C B2 B1 A2 A2
(Junior)
Officer/Executive(Middle B1 B1 B1 B1 A2 A1 A1
/Sr)

Hi, I am here to ask you a few things about your eating preferences, our food and your
suggestions to improve your eating experience here. I would be grateful if you can spare a
few minutes for the same.

Q1. Which of the following best describes your visit to KFC today?

First visit 1
Visited earlier 2

Proceed to Q2 if coded 2 in Q1, else terminate

Q2. How many times you have visited earlier?

1-2 times 1
3-4 times 2
4+ times 3

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Now let’s discuss what you have eaten here today

Q3. Which of the following best describes the main dish you had here today?

Veg Code Non Veg Code

Chana Crunch Snacker 1 Chicken Crunch Snacker 6
Veg Thali 2 Chicken Thali 7
Veg Fingers 3 Hot & Crispy Chicken 8
Veggie Feast 4 Original Recipe Chicken 9
Paneer Tikka Wrap n Roll 5 Crispy Chicken Strips 10
Chicken Tikka Wrap n Roll 11
Zinger burger 12
Colonel burger 13
Bucket Of Chicken 14

Q4. Which of the following did you order along with your main dish?

Soft Drink 1
French fries 2
Thali 3
Burger 4
Snacker 5
Salad 6
Bread 7
Ice cream/ sundae 8
Coleslaw 9
Any Other (Please mention) 10

Q5 (a). Which of the following reasons best describes your current visit to KFC?

After Shopping 1
Work Lunch 2
Catching up with friends 3
Quick meal (on the go) 4
Indulge/ Treat myself/ourselves to great food 5
Celebrating special occasions/events 6
Break from home food 7
Want a specific type of food 8

Q5 (b). Which of the following best describes what you are looking for in the dish ordered by
you at KFC?

Discover a new taste 1

Pick myself up (Positive energy/uplift mood) 2

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 Share with others 3
Quick fix meal 4
Saving time (by not cooking) 5
Reward myself/ others 6
Specific food taste 7

Q6. You just had _________________ (Refer to Q3). What in your current dish made it a
perfect choice for ________________________occasion (quote from Q5)
This dish (__________________________) was apt for ___________________(occasion)
because____________________________________________________________________

Q7. Imagine if there was no KFC.

What would you have eaten on this occasion? (Instead of what you referred in Q3)
_______________________________________________________________________

Where?
________________________________________________________________________

Q8. Which of the following main dish you had on your last visit to KFC?

Veg Code Non Veg Code

Chana Crunch Snacker 1 Chicken Crunch Snacker 6
Veg Thali 2 Chicken Thali 7
Veg Fingers 3 Hot & Crispy Chicken 8
Veggie Feast 4 Original Recipe Chicken 9
Paneer Tikka Wrap n Roll 5 Crispy Chicken Strips 10
Chicken Tikka Wrap n Roll 11
Zinger burger 12
Colonel burger 13
Bucket Of Chicken 14

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 BIBLIOGRAPHY

Web Sites
www.kfc.com

www.google.com

www.ask.com

www.wikipedia.com

Class Notes is referred

Magazines

India Today
Business Today
The week
Outlook Express

Newspapers

The Times of India

The Hindustan Times
The Economic Times
Books:
 PHILIP KOTLER, MARKETING MANAGEMENT, NEW MILLENNIUM
EDITION 2000.

 V.S RAMASWAMY AND S. NAMAKUMARI MARKETING MANAGEMENT,

SECOND EDITION.
 WILLIAM STANTON.J, MICHALL J.ETJEC, BRUCE J.WALKER

FUNDAMENTAL OF MANAGEMENT.

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