DEPARTMENT OF MUMBAI UNIVERSITY

MARKET RESEARCH
ON KFC
Submitted by
SURESH NANAVARE-30
BHUSHAN DANANI-07
ABHINAV NALE-29
BADAL RATHOD-41
ANAND GORI-15
PRATEEK NAGAR-36
YOGESH REDKAR-42

Submitted to
Sushmita Mukharji

ALKESH DINESH MODY INSTITUTE OF FINANCIAL AND

MANAGEMENT STUDIES,DEPARTMENT OF MUMBAI UNIVERSITY
 Introduction of
Company
KFC Corporation, based in Louisville, Kentucky, is the world’s most popular
chicken restaurant chain, specializing in Original Recipe ®, Extra Crispy TM,
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® chicken
—made 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
products—from 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

KFC
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
“home meal replacement” – selling complete meals to harried, time-strapped

KFC
families. He called it, “Sunday 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 specialized in chicken and they says,

“No body’s cooking like KFC today and we are the

chicken experts”

“There is no competitor for spicy chicken which is

made by KFC”
M issio n sta tem en t

“ T o b e t h e l e a d e r i n w e s t e r n s t y l e sqeur ivcikc e
r e s ta u r a n ts th r o u g h fr ie n d ly se r v ic e , g o o d q u a lity
f o o d a n d c l e a n a t m o s p” h e r e

Goals of KFC
 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.

KFC History
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 “Boneless Fried Chicken”,
with even more attractive and charming taste.
Company overview:
Colonel Harland sanders, born September 9, 1890, actively began franchising
his chicken business at the age of 65. Now, the Kentucky fried chicken business
he started has grown to be one of the largest retail 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 “finger
licking’ good” chicken dinners are served annually. And not just in America.
The colonel’s cooking is available in more than 82 countries around the world.

When the colonel was six, his father died. His mother was forced to go to work,
and young Harland had to take care of his three year old brother and baby sister.
This meant doing much of the family cooking. By the age of seven, he was a
master of a score of regional dishes. At the 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.

KFC India
KFC is the world’s No.1 Chicken QSR and has industry leading stature across
many countries like UK, Australia, South Africa, China, USA, Malaysia and
many more.

KFC is the largest brand of Yum Restaurants, a company that owns other
leading brands like Pizza Hut, Taco Bell, A&W and Long John Silver.
Renowned worldwide for its finger licking good food, KFC offers its signature
products in India too! KFC has introduced many offerings for its growing
customer base in India while staying rooted in the taste legacy of Colonel
Harland Sander’s secret recipe. Its signature dishes include the “crispy outside,
juicy inside” Hot and Crispy Chicken, 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 Snicker and veg Rice meals. In India, KFC is growing rapidly and today
has presence in 11 cities with close to 50 restaurants.

Values of KFC

 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.
PHILOSOPHY OF KFC
The CHAMPS Program
Champs stands for our belief that the most important thing each of us can do is
to focus on the customer. It stands for our commitment to provide the best food
and best experience for the best value.
CHAMPS stand for the six universal areas of customer expectation common to
all cultures and all restaurants concepts.

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

CHAMPS is the philosophy to ensure that the customer

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

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

Buyer/Supplier Bargaining Power

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

Substitutes and Complements

As mentioned above, there are a few major competitors in the fast-food industry
in India for KFC, namely McDonald’s, Pizza Hut, Domino's and Subway. The
substitute products, in this case, would be burgers, pizza, and sandwiches.
Though they are 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.

Rivalry

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.

KFC Original Recipe

6 cups Crisco Shortening

1 egg 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 it for 10 minutes.
Environmental factors and opportunities

Political:

The operations of KFC are affected by the government policies on the

regulations of fast food operation. Currently government are controlling the
marketing of fast food restaurant because of health concern such as
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.

Economic:

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

India is the second most populous nation in the world with an approximate
population of over 1.1billion people. This population is divided in the following
age structure: 0-14 years – 31.8%, 15-64 years – 63.1% and 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.

Technological:

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

As one of world largest consumer of beef, potatoes and chicken, KFC always
had been critics for world environmentalist. This is because high consumption
of beef causing the green house effect by methane gasses coming from the
cow’s ranch. Large-scale plantation has effect the environment and lots 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.

Legal factors:

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

A market in this context refers to a number of all actual and potential buyers of
a product (Kotler et al 2003). These
Communication
buyers have a need to satisfy their
needs through exchange (Graphic
Product / service
1). These needs make up the Industry Market
(a collection (a collection
demand for particular products and of seller) Money of buyers

services. Several components must

be considered, as all these Information
Graphic 1
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

Company Competitors
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 KFC
serve its customers. (Kotler et al
2003). Three major components
influence KFC’s micro
environment: Consumers

Graphic 3 (Source: Kotler et al 2003) Micro Environment

Current target market

Segmentation
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. .
Levels of Market Segmentation

 Segment marketing

 Individual marketing

 Niche marketing

 Local marketing

 . Individual marketing

• Extreme marketing in which marketers focus on individual

customers

• Keep track of individual tastes & preferences of individual

customers

• Many companies are approaching individuals through e-mails to

promote their products.

 Segment marketing

 Dividing the market into different segments on the basis of

homogenous need

 Segmented on basis of broad similarity with regard to some

attributes
  Segmentation is also sometimes identifying, capturing &
retaining potential new markets

 Niche marketing

 Marketers effort to position their product or service in smaller

markets that have similar attributes and have been neglected by
other marketer

 Segment further divided into sub segments to cater unsatisfied

needs of small group is called as niche

 Local marketing
 marketers offer customized products to suit the local markets
 KFC introduced “Muslim” products such as Spicy Chicken,
Halal Chicken, Zinger Extreme…
Geographic segmentation:
KFC has outlets internationally and sells its products according to geographic
needs of the customer. In India KFC focuses how geographically its customers
demand different products. In north India Chicken is the main selling product,
while in the south the Veg. items sell more than the chicken.
 Urban areas

 Sub urban areas

Demographic 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:

 Age is between 6- 65.

 Gender is both males and females.

 Family size is 1-2, 3-4, 5+

 Income is Rs 10,000 n above.

 Family lifestyle is almost all.

Psychographic segmentation

Dividing a market into different groups based on social class, lifestyle, or

personality characteristics is called psychographic segmentation.
KFC divides market on the basis of psychographic variables like
 Social class- Upper and Middle class.

 Lifestyle is not specific.

Personality is ambitious and authoritarian

BEHAVIOR

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
Profile criteria:

1. Gender: KFC is for each gender both male and female.

2. Income: Everyone can use the KFCservice upper and middle class .

3. Age: age limitation for using this product above 15

4. Occupation: By profession also everyone can use this product means

businessman student workers and other peoples.

5. Education: It has no need more education that why the person who know

something can easily enjoy with this product.

6. Family life cycle: KFC is suitable in every stage of life like single married

couple and also those who have children can use this product.
7. Lifestyle: This product is used in every level of social class like upper,
middle class.
8. Attitude: When the customers once buy this product after that they can use

the product continuously.

9. Purchasing decision: Often KFC changes the purchasing decision of

customers because of its good attributes.

10. Geographic region: Geographically KFC is used in every part of the country

as well as all over the world.

Product positioning
Customer perceive this product as a unique product that other are not giving .
Attitudes
The attitudes of the public is very good people like our this new product like
others.
Purchasing process:
Many people come from home to eat this, and some make impulse decision as
they saw it.
Market Coverage Strategy
KFC will be using differentiated market coverage strategy. It means that
different marketing mix will be used for different age groups.

TARGET MARKET FOR FAST FOOD

After evaluation of various segments, KFC has decided to target the market of
Urban and Sub-urban Areas of India.

Product usage
 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

numbers of customers are more in Urban Areas.
Competitive analysis

Competitors

You cannot enjoy the business without competitors. No organization can afford
to ignore their competitors. It is very important for marketing managers to
monitor the activities of their competitors, what they are doing? KFC adopted
such sort of strategy that there is no competitor for spicy chicken, which is
made by KFC.

KFC beats its competitors through the revising marketing strategy at every
movement but the main competitor of KFC is Mc Donald.

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 ‘healthy food’ conscious Indians. But, there are a number of
other competitors that is also focusing on ‘chicken’ types products. All this
competition makes it quite 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.

Strengths and weakness of competitor

Strengths: 38 products, Attractive Outlets, Huge Marketing, Budget,

More entertainment for kids
Weaknesses: Same type of Menu, No Home Delivery
How do they compete their competitors?

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 their 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 their competitors
• KFC has quality products and through these quality products they
compete their competitors

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 Beef is banned in some community

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

Summary of current situation

SWOT analysis

STRENGTH

 Goodwill and reputation: The Company certainly has earned a good

name and reputation by its previous products and services in the market.
It is even more recognized in other markets outside India, where the
company is among the leading fast food giants. The brand is recognized
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.

 Employee Loyalty: Employee Loyalty is one of the major strengths of

KFC. The turnover rate in the company is amongst the lowest in the
industry.

 Customer Loyalty: Despite gain by Boston Market and Chick-

fill A, KFC customer base remained loyal to the KFC brand because
of its unique taste. KFC has continued to dominate the dinner and
take out segment of the Industry.
  Ranks highest among all chicken restaurant chains for its
convenience and menu variety. It generates $1B revenue each year.

WEAKNESSES

 KFC was losing market share as other Chicken chain

increased sales at a faster rate.
 KFC share of Chicken Segment sales fell from 71 percent
1999, to less than 56 percent in 2009, a 10 -year’s drop of 15 percent.
 Huge competition in this segment.
 India is still mostly a vegetarian dominated cultured
society. South India is especially very much so. This may reduce the
market share of the company.
 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.

OPPURTUNITIES

 New Markets: Globalization 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 unorganized, KFC has a good scope of expanding its
operations in the country.

 Cross Culture: Generally there is a good acceptance of American culture

of fast food in India. People are opening up to fast foods more regularly
in their daily lives and not just keeping it a once in a month affair. Thus
Indian mindset is fast changing.
 Large Youth population: 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 generations are more
open to fast foods and demand it more, this is good news for the
company.

• New variety: Company can also come up with new variety in the
menu like Pizzas, garlic breads to attract more customers.

THREATS

 Competition: Competitor companies like McDonalds are fast

catching up with the market. McDonald’s with sales of more than 19
billion in 1999, accounted for 15 percent of the sales of the nation’s
top 100 restaurant chains.

 Organizations 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 organizations, 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

 Saturated US Market: 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.
MARKETING STRATEGIES OF KFC

4 P’s of Marketing:

1. PRODUCTION
2. PRICING
3. PLACEMENT
4. PROMOTION

1. Production:
Basically the product is anything that be offered to a market for attention,
acquisition, use, or consumption that might satisfy a want or need. KFC is
specially dealing in the chicken products; Basically, KFC has the special raspy
for chicken products that is why, KFC known as a chicken specialist all over the
globe. KFC target the Asia and east side because they observe that they people
are like the chicken products, so they enter in the market due to the demand of
their chicken products. KFC product variety of product in the chicken, those
products are:

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

BRAND:
There are three brands of the KFC:
1) Taco bell
2) Pizza Hut
3) Long john silvers

2. Pricing:
KFC during pricing their products keep the different points in the mind like they
adopt the cost base price strategy. Pricing of the product includes the
Government taxes and excise duties and then they come at final stage of
determine the price of their products. KFC prices of products are a bit high
according to the market segment and it is also compatible to the stander of their
products.

Calculation of the price under Cost Based Pricing Strategy:

Total Pounds of Chicken Served in KFC Restaurant Annually = 1.914

Billion

Total KFC Chicken Pieces Sold Annually = 5.89 Billion

Total Retail Sales = $8.9 Billion

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

We assume that Fixed Cost is = $6000000000

Variable Cost = $675000000

Profit Margin is Or Mark Up = $225000000(25% of Sales)

Per Unit Variable Cost = $675000000 / 5890000000
= $ 0.115

Unit Cost = Variable Cost + Fixed Cost / Chicken pieces Sold

= 0.115 + 6000000000 / 5890000000
= 0.115 + 1.02
= $1.135

Now suppose manufacturer wants to earn 25% mark up on sale. The

manufacturer mark up price is calculated:

Mark Up Price = Unit Cost / (1 – Desired Return on Sales)

=1.135 / (1-.25)
= 1.135 / 0.75
= $1.51

3. Placement:
In the case of the KFC the placement of the product is not important but
the placement of the restaurant is important. The products of the KFC is
cooked at the sport and then served after that. KFC Cavalry branch
opened in June 1998, in the main commercial zone of Cavalry Grounds
near the Jinnah Flyover. The restaurant is a three-story building including
the basement (where the chick play area is located). It is ideally located in
the center of a main commercial and residential area of Lahore. The area
that KFC Cavalry caters for is the residential and office area of Cavalry
Grounds and Cant, as the main target market. Another branch the KFC
opened in the Lahore is in Garden Town (opposite to Market). KFC also
target the and open its branch in D ground. Now we can easily judge that
the KFC target the place for their restaurant, which is well known and is
 in the Porsche area where the income level of the people is high then the
middle class level. Because the prices of the KFC products is high with
comparison to the local products manufacturer who are dealing in the
same kind of product in which KFC is dealing but the prices of the KFC
is high due to special taste, high quality, and due to international brand, it
is the world recognized fast food restaurant all around the world. So, for
the placing strategy, KFC chose the well income class area for their
restaurants.

4. Promotion:
Promotion is one of the necessary plates in any form of business or in other
words you can say that promotion is the key of success. You promote your
product at right time. KFC also known the importance and significance of
promotion so they uses the bill boards the major source of advertisement and
one of the most important thing that they uses media especially the newspapers
to promote their products. They are also creating awareness among the masses
about their existing product range as well they tell us about the future product.

Marketing efforts to be taken by the restaurant:

 Paste delivery posters at petrol pumps, flats, colleges, plazas, and

departmental stores.
 Distribution of delivery flyers in residential areas, markets, plazas and
institutions (as per the plan)
 Visit offices and business places.

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

Sales promotion

For the sales promotion KFC introduced their goods like watches, keychain, etc
to the customers
Advertisement
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.
One of KFC's latest advertisements is a commercial advertising its "wicked
crunch box meal". The commercial features a fictional black metal band called
"Helvetica" performing live, the lead singer then swallows fire. The commercial
then shows the lead singer at a KFC eating the "wicked crunch box meal" and
saying "Oh man that is hot".

In 2007, the original, non-acronymic Kentucky Fried Chicken name was

resurrected and began to reappear on company marketing literature and food
packaging, as well as some restaurant signage.

Branding
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.

FEED US BACK
1. Tick Your Choice (√)
Perfect Above Average Below Poor
Average Average
Food Quality
Food Temperature
Waiting Time
Menu Board
Sitting Arrangement
Restaurant Temperature
Music
Restaurant Cleanliness
Overall Experience

2. When will you be back?

 Next time I blink (very soon)
 May be sometime later
 When I win a Nobel Prize (Never)

3. How many people were in your group?

 I was alone
 Just me and someone
 For me, three is company
 4 or more

4. Would you rather order than Dine in?

 Yaa, I like to mostly order at home
 Sometimes, but I mostly like to dine in
 No fun without Dine in

5. How close is your house to your nearest KFC outlet?

 Within 1 Km
 Between 1 – 3 Kms
  Between 3 – 5 Kms
 Above 5 Kms

6. Do you want a KFC home delivery service?

 My dreams are coming true
 That would help
 Doesn’t make much of a difference
 No thanks

Thank You

DATA INTERPRETATION -
It is clear from the above report that a high number of people actually like to
order from their home or workplace rather than coming. This may be due to
more convenience, time shortage or just not willing to come and dine. Certainly
the home delivery market is huge and KFC can take well advantage of the
situation. Thus it would be in the best interest of the company to start the
service as soon as possible and capitalize on the opportunity. KFC expects a rise
in the orders by at least 20% by starting this service.

Therefore, to conclude we would say that

 KFC should definitely have a home delivery service
 Sales to rise by 20%
 Outlets in 2 tire cities
 More outlets in metros