Introduction

Kentucky Fried Chicken (KFC) is one of the oldest and famous food chain. It was started in the early 1930's by Kernel Sanders and later on Sanders sold the entire KFC franchising operation in 1964 for $2 million USD Since that time, the chain has been sold three more times, most recently to PepsiCo, which made it part of its Tricon Global Restaurants division, which in turn was spun off in 1997, and has now been renamed to Yum! Brands. The products of KFC are usually the fried chicken in the form of pieces, wraps and burgers along with mashed potatoes and potato wedges. One of the world's largest fastfood chains, the company owns and franchises more than 15,000 outlets in more than 100 countries. (About 5,200 locations are in the US.). KFC Pakistan Opening the first KFC outlet in Gulshan-e- Iqbal in 1997, KFC wore the title of being the market leader in its industry. Serving delicious and hygienic food in a relaxing environment made KFC everyones favorite. Since then, KFC has been constantly introducing new products and opening new restaurants for its customers. Presently KFC is branched out in eighteen major cities of Pakistan (Karachi, Lahore, Gujranwala, Sukkur & Muree) with more than 60 outlets nation-wide. Cupola Cupola is a Dubai based multinational company involved in several business activities including oil gas exploration, plastic cards, retail markets and food franchising holds the master franchise rights to operate KFC in Pakistan since 1999. That was a major difference that when Cupola takes complete Operate in Pakistan that was only 05 Outlets in allover Pakistan, and then now the major difference that Cupola takes more than 60 Outlets in Pakistan. In this study we analyze that how marketing environment exits in KFC and how KFC makes its strategies according to marketing environment.

KFC Vision Statement

Food, Fun & Festival, this is what KFC is all about. Leading the market since its inception, KFC provides the ultimate chicken meals for a Chicken Loving Nation. Be it Marketing Environment Page 1

Colonel Sanders secret original Recipe Chicken or the Hot & Spicy Version, every bite brings a YUM on our face. At KFC we can proudly say, We Do Chicken right.

KFC Facts
Apart from fulfilling the commitment of serving delicious, fresh and hygienic food and at the same time providing the customers with the ultimate entertainment; KFC also plays part in the economic development of our country. Presently KFC has provided employment to over 1200 Pakistanis, which adds up to 6000 individuals directly dependent on KFC Pakistan. The Government of Pakistan receives over Rs.10 to 11 million per month from KFC Pakistan as direct taxes. 95% of all food and packaging material used in KFC Pakistan is procured locally, which sums up to a purchase of over Rs.35 million per month. Each new outlet developed by KFC Pakistan costs approximately Rs.40 million, which is a huge amount for our construction industry. Annual turn over in Pakistan 2.5 billion. KFC and PakistanGrowing Together

Mission Statement

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Macro Environmental Forces

It is also called the external environment of any organization and it has the following areas. Demographic Environment Economic Environment Political environment Cultural Environment Natural Environment

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Demographic Environment
It monitors population in terms of age, sex, race, occupation, location and other statistics. KFC Strategies In past KFC did not focus on any particular factor of Demographic environment as the food is for all areas of this environment but with the passage of time as the competition get tough it introduce some innovation in its product and introduce some of its packages to attract customers of different age and gender, Some are discussed as followed Zinger Max for Ladies This is a burger deal that is made especially for the women keeping their love for spice in mind. The specialty of this product is having extra spice in it. KFC kids Zone This area of KFC is designed for kids. Also KFC introduce chicky meal especially for children and KFC provides a toy on it for free. Family Feasts This is a product for families.

Economic Environment
Factors that affect consumer buying power and patterns. The current economic conditions of Pakistan economy badly affected the buying power of a common citizen (Mango People). Now days people emphasize on saving due to high inflation rate. And for entertainment they use prefer traditional food which relatively cheap. KFC Strategy To overcome this problem has KFC reduced its rate as much as possible. They have introduced a deal with the name of Mini Plix having a price Rs. 350 but its original price is Rs.550. Also they have reduced their margin on their products to survive in market, now they are providing international quality in a local quality price. Another example is big deal having a reduced price of Rs.150 from Rs.170.

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Political environment
Laws, agencies and groups that influence or limit marketing actions. The change in political scenario also has a huge influence over the business. Due to change in government the tax rates raised highly which increase the prices of the products as well as the buying power of the consumer.

Cultural Environment
Forces that affect a societys basic values, perceptions, preferences, and behavior. Pakistan has a rich cultural history. There are many types of cultural dishes that are liked so much in the communities, so it is difficult for the fast food to compete with the local food. KFC Strategy The KFC compete with the local traditional food providing chains by providing the public a different taste by mixing the fast food and the local food. The example is rice and spice where the local ingredients used to make this dish and fast food as well. Religion As KFC is an America Based company so there is a negative perception among the people and also created by some of the competitors about its authenticity of HALAL food. KFC Strategy KFC use the trade mark of HALAL food to assure the people that their products are 100% HALAL.

Technology Factors
Forces that creates new product and market opportunities. Rapid pace of change, high R&D Budget, focus on minor improvements and increased regulation. KFC Strategy Research and Development They use this technology to keep aware about the latest requirement of the customer and to develop the business. KFC is using modern technology for cooking and modern cooking recopies to get the competitive advantage. New Baking System: KFC is the first fast food chain that introduced the baking system in front of customer to satisfy the customer. It means that all the cocking, baking and all other work that is involved in the preparation of the fast food. Advertisement

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KFC use both the promotional stratigies that is usually used in promotional activities of any organization Above the line Promotions: Above the line is a type of advertising through media such as TV, cinema, radio, print, banners and search engines to promote brands. Major uses include television and radio advertising, web and Internet banner ads. Bottom the line Promotions: Below the line sales promotions are short-term incentives, largely aimed at consumers. With the increasing pressure on the marketing team to achieve communication objectives more efficiently in a limited budget, there has been a need to find out more effective and cost efficient ways to communicate with the target markets

The Micro environmental Forces

This environment includes the factors that are close to the company and are controllable by the organization. These factors are:

Companys Internal Environment (KFC)

All factors that are internal o the organization are known as the internal environment. Financial resources, Human Resource, Production facilities, Location Financial Resource In Pakistan the a Dubai based multinational company Cupola sponsors the KFC. Human Resource KFC enjoying a low labour rate due to high rate of unemployment Production Facilities KFC acquire latest machinery and production materials for the product Location KFC has its franchises in the key location where buyers have an easy access. In Pakistan it has 63 outlets out of which, 13 are based in Lahore, 21 are in Karachi and the remaining are located in the other cities of Pakistan. Marketing Environment Page 6

Suppliers
Provide the resources needed to produce goods and services. There are two categories of supplies. Dry food: For dry food like buns they have there own KFC bakery and vendors like Dawn Bread for some other cities. Spices are supplied by Dubai to all over restaurants in Pakistan. Frozen food: For the Frozen food like Chicken they have agreement with K&Ns. The fish is supplied by some local suppliers and by Thailand as well.

Consumers
It includes five categories. Consumer Markets KFC has large chain of consumers. According to KFC, We are growing only with our customer. KFC has great environment for their consumers and families. They are concerned about the comfort and satisfaction of their customers. KFC Strategy They use only pull strategy to interact with customers as they directly interact with them. Manufacturer Whole Seller Retailer Consumer

Business Market Business markets buy good and services for further processing or for use in their production process. In case of KFC there is no such business market. Resellers KFC is dealing in fast food, and so they dont have any resellers as such. Marketing Environment Page 7

 Government Customers As such no govt. customer exist so far. KFC is not expecting any govt. customer as such. International Customers KFC is multinational company. They have outlets, almost in every country. So they have international customers all over the world.

Competitors
They are classified into direct and indirect competitors. Direct Competitors Although the Mr. Marketing Manger denies that they have any competitor in the market but in our point of view there are many competitors as follows. Mc Donalds AFC Subway JFC Fri Chicks Indirect Competitors Like Salt & Pepper Kabana Village Bundu Khan

Publics
Its main types are Financial Public KFC is an independent company. It has not any long-term bank loan. For short-term loan, it relies on Standard Chartered Bank. Media Public KFC spends 5% of its revenue on advertisements. To have more advertisement, they are of the view to increase their advertisement. Govt. Public Marketing Environment Page 8

Taxes are always imposed by the govt. public. KFC sales tax on each meal is 1.2 %. Internal Publics The employees are greatly compensated by KFC. Employees get regular bonuses and other benefits which are based on their performances. Employees are assets and we reward them greatly, KFC says. Special badges and pins are assigned to employees.

General Public KFC wants to know the attitude of the public about its products. So, it always gets feedback from the customers whenever its going to launch a new product. Marketing Intermediaries It includes the firms that help the company to promote, sell and distribute its products and services. As in KFC, the goods are manufactured according to needs and wants of the customers and immediately served to customers on their outlets. So no marketing intermediaries are at KFC

Chicken: Combos: Chicken Meals Sandwich Meals Family Meals Fruit Salad Regular & Large Drink Regular & Large Mineral Water Tea Scoop of Walls Ice cream Coffee Page 9 1 piece 2 pieces 5 pieces 10 pieces

Desserts & Beverages:

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Snacks & Side Orders: 5 & 20 Pieces Nuggets Arabian Rice 5 & 10 Pieces Hot wings Dinner Roll Regular & Large Fries Hot Shots Corn on the Cob Hot & Crispy Soup Cole Slaw

Serving size Original Recipe/E- 47(g) Wing Original Recipe/E- 161(g) Breast Original Recipe/E- 59(g) Drumstick Original Recipe/E- 126(g) Thigh Hot & Spicy-Wing 53(g) Hot & Spicy- 179(g) Breast Hot & Spicy- 60(g)

Calories Total 145(g) 370(g) 140(g) 360(g) 180(g) 450(g) 140(g) 390(g) 450(g) 640(g) 460(g) 90(g) 136(g) Fat 9(g) 19(g) 8(g) 25(g) 11(g) 27(g) 9(g) 28(g) 27(g) 40(g) 30(g) 0.5(g) 3.7(g)

Cholesterol 60(mg) 145(mg) 75(mg) 165(mg) 60(mg) 130(mg) 65(mg) 125(mg) 60(mg) 405(mg) 125(mg) 0(mg) 1(mg)

CHO 5(g) 11(g) 4(g) 12(g) 9(g) 20(g) 4(g) 14(g) 22(g) 38(g) 22(g) 19(g) 23.3(g)

Protein 11(g) 40(g) 14(g) 22(g) 11(g) 33(g) 13(g) 22(g) 29(g) 32(g) 25(g) 2(g) 2.3(g) Page 10

Drumstick Hot & Spicy-Thigh 128(g) Original Recipe- 206(g) Fillet Zinger Burger 246(g) Hot Wings 144(g) Corn on the Cob 82(g) 3* French Fries 100(g)

Marketing Environment

Oldest and finest in Business High Goodwill Does not have any Core competitor In chicken serving Large Number of Outlets at prime locations Serves variety of items under single menu Loyal customers Faces numerous advantages of being a Multinational Organization e.g. economies of scale, government incentives etc.

Presence of Multinational competitors in the market e.g. McDonalds(specialized not in chicken serving but in burgers) Imported raw material rise their prime cost

Cheap and easy availability of labor Increase consumption of fast food has increased the market size Consumer prefer All under one roof in order to increase their sales turnover they can increase or add the served items

Entrance of New competitors into the market High political instability/uncertainty

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KFC is a very strong chain of fast food restaurants with more than 10,000 restaurants all over the world. Being in Maturity Stage it has high opportunities of introducing its new products and deals. In Future it will be expanding its chain by introducing more outlets in Pakistan as well as in other countries

Believe in value creation. Provide ultimate choice of quick service restaurants for consumers. Won the hearts of millions of Pakistanis.

www.kfcpakistan.com www.kfc.co

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