A Project on Retail ManagementStrategy by KFC in Bihar

BACKGROUND OF KFC Based in Corbin, Kentucky, U.S. and is the world’s most popular chicken

restaurant chain, founded by Colonel Harland Sanders in in the early 1930s.

In 1952 ,started franchising his chicken business & named it as KENTUCKY FRIED CHICKEN.

Part of Yum! Brands, Inc., world's largest restaurant company in terms of system restaurants, with more than 36,000 locations around the world.

Operates 15,000 + units in 109 countries and territories around the world.

World famous for its Original Recipe fried chicken -- made with the same secret blend of 11 herbs and spices.

Ranked #239 on the Fortune 500 List, with revenues of $11 bn + in 2008.

KFC’s Entry in INDIA: Was the first fast food multinational to enter INDIA , after liberalization

Received permission to open 30 new outlets across the country

Opened first outlet in Bangalore in June 1995 targeting upper middle class

PepsiCo planned to open 60 KFC and Pizza Hut outlets in next 7 yrs.

Indian Fast food market is fundamentally different-Eating at home remains very much ingrained in Indian culture.

QSRs are one of the cheap sources of taking a break from home cooked food and eating out.

The growth in nuclear families, particularly in urban India, exposure to global media and Western cuisine and an increasing number of women joining the workforce are responsible for changing this trend.

KFC’s &BIHAR- A Strategic Move : Opened on 29 November 2012 Set up in an area of about 5,000 square feet Capacity of catering to 150 customers at a time. Demography: Urban people of both genders aged between 15

to 45 years of age. Target Market (Consumers):

Income Group: A, B and C segment of people. Psychographic: People who have a busy lifestyle and are influenced

by western culture . Initially KFC faced a real big time glitch in Bihar when not even

one month completion of its operation it was sealed due to lack of “License for Operations”.

It successfully overcame through this and is now operating with 3 prime locations in Patna.

SWOT Analysis:Strength•Good Taste•Brand Equity•Global Experience•Operations•Trademark Recipes•Strong Customer Focus

Weakness•High Price•Image of “Fried”•Poor Reach•Limited variety in menu•Management conflict in between Brand

“Yum” and PepsiCo.•Logistic problems

Opportunities•Increase in outlets•Increase in Per Capita income (here of Bihar)•Change in mindsets•Increase in youth segment who admires the metro

culture•A step to increase the variety by introducing

vegetarian cuisines like “Rice bowl veg curry "and others.

ThreatHealth conscious eating habits.Animal welfare activistsIntense competitionsPlan of Biggies like Mc Donald to enterOther competitors with equal brand repute and demand CCD, Pizza Hut, Dominos etcThreat from Indigenous brands like Haldirams, Food Plaza,Nirulas etc.

KFC’s Bihar Saga: Going Long and StrongObjective: The objective of KFC’s set up in Bihar was to get « First Mover Advantage » in the market of

Bihar which was changing and getting inspired with the metro culture. Strong Cash Generation and Returns. Increasing the profit margin from 11% to 17% through improved operations and reduced

overhead

Overall Strategies & Specific Promotional activities: To deliver the customers with world class fast food delicacies which was restricted for them due to these being only limited upto metros. A strategic move as large number of population here are chicken lovers. Targeted prime locations of Patna.

KFC’s Bihar Saga: Going Long and Strong Various interesting offers and in –store promotional campaigns

specifically for youth and couples.

Promotional offers to their loyal and repeat customers through SMS, e-mails,

Celebration and other festive offers (keeping in mind Bihar).

After riding high in Patna, KFC is planning further expansion in other parts of Patna and also in some cities like Gaya, Muzaffarpur etc.

Further at present they are working at expanding their menu and introducing more variants, with emphasis on Vegetarian menu.

It is also working on its pricing part as to give an competitive edge to their other counterparts and local players.

KFC & Bihar : A Different ScenarioMarket Share

DominosCCDKFCPizza HutOthers

Source: Cold calls and interaction with the sample customers of different age group in between 15 to 35

KFC Bihar: Control and Recommendations Open up new outlets

Introduce cheaper items in the menu

Differentiate as one proving fastest service

Should work on its logistics.

Also work on their service and delivery over the counter.

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