An analysis of the use of sales promotion in organization’s marketing.docx

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An analysis of the use of sales promotion in organization’s marketing

plan: A case study of KFC in the UK

1



Abstract:

The research is focused on analysing the use of sales promotion activities in themarketing plan of an organisation by taking the case of KFC for UK market !ifferent

sales promotion strategies "ill be covered in the research along "ith the sales promotion

strategies of KFC restaurant "ill be covered in the research "ork #rimary data "ill be

used$ "hich is collected through %uestionnaires for analysing the impact of sales

promotion activities on the sales of the organisation along "ith the conception of

customers for those activities At last$ the research "ill concluded "ith some

recommendation that "ould benefit the organisation in the light of sales promotion

strategies

2



Abstract:...................................................................................................................1

&' (ntroduction:.........................................................................................................3

&& )esearch *ackground...........................................................................................3

&+ ,rganization *ackground......................................................................................4

&- )ationale for Choosing this Topic............................................................................5

&. Aims and ,b/ectives of the )esearch........................................................................5

&0 )esearch %uestions.............................................................................................. 6

+' 1iterature revie"....................................................................................................6

+& (ntroduction.......................................................................................................7

++ The consumer’s response to"ards the sales promotion..................................................8

+- 2hy there is a need of sales promotion and "hat is it3..................................................9

+. Kinds of sales promotion..........................................................................................9

+0 Consumer sales promotion:..................................................................................10

2hat are the needs and benefits3.............................................................................10

+4 Types of consumer sales promotion........................................................................11

#rice deal:.........................................................................................................11

)e"ards programs:............................................................................................. 11

5uantity deals:................................................................................................... 11#rice pack deals..................................................................................................11

Coupons:..........................................................................................................12

Checkout dispensaries:.........................................................................................12

,nline6couponing:.............................................................................................. 12

)ebates............................................................................................................ 12

#oint of sales promotion:...................................................................................... 12

7ample of the products.........................................................................................13

Kids corners......................................................................................................13

7ales promotion of KFC:......................................................................................... 13

- 8 Conclusion.....................................................................................................13

-' )esearch 9ethodology..........................................................................................14

-& )7A)C; !7(<=...........................................................................................15

-+ )7A)C; A##),AC;......................................................................................16

-- #rimary research..................................................................................................17

-. !ata collection method and Analysis......................................................................19-0 #rimary data collection.......................................................................................... 20

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-4 !ata analysis method.........................................................................................20

-8 1imitation of secondary and primary data...............................................................21

-> ?alidity of secondary data...................................................................................21

-@ #opulation and 7ampling....................................................................................22

-&' thical consideration.......................................................................................22

.' !ATA A=A17(7 A=! F(=!(=<7.........................................................................23

.& (ntroduction..................................................................................................... 23

.+ Findings of 5uestionnaires..................................................................................24

0' Conclusion$ )ecommendations B 1imitations..............................................................45

0& Conclusion of the )esearch..................................................................................45

0+ )ecommendation for KFC...................................................................................46

0- 1imitations of the )esearch 7tudy.........................................................................47

)eferences.............................................................................................................. 48

5U7T(,==A()...................................................................................................51

1.0 Introduction:

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1.1 Research Background

To conduct any research it is imperative to revie" the already available literature by

academicians and scholars related to the topic or industry This "orks as a guide to conduct

the present research This research broadly relates to sales promotion$ marketing mi of KFC

for UK market The effect of sales promotion on the buying behaviour of consumer and

increase in sales due to it are also re%uired to be covered in the research since the buying

decision making process of consumer is also important to understand The literature "ill be

searched under three broad categories: 7ales promotion activities$ #erception of consumer

to"ards sales promotion activities "ith respect to KFC$ appropriate sales promotion mi

D7tuart$ +''0E

7ales #romotion Activities: They can be for distribution channel people Dlike distributorsE$

selling staff or customers 7ales promotion for distribution channel members is kno"n as

trade sales promotion "hereas sales promotion targeted to"ards customer is kno"n as

Consumer sales promotion D<oldstein and 1ee$ +''0E

#erception of Consumer to"ards sales promotion: <enerally$ sales promotion results in

temporarily rise in sales figure for a specified period 7ome consumer gets attracted to"ards price$ some to"ards %uality$ some to"ards brand etc 7o$ understanding the perception of

consumer for fats food industry is important

7ales promotional mi: There are different sales promotions strategies for targeting both

customers and distribution channel members ;aving an appropriate mi is important as huge

cost involved in each kind of sales promotion DKerin$ +'&+E

1.2 Organization Background

Kentucky Fried Chicken commonly kno"n as KFC is the + nd biggest fast food chain in the

"orld having it’s head%uarter in 1ouisville$ United 7tates KFC specialises in Fried Chicken

*esides$ KFC has increased its offerings to "raps$ burgers and 7alads The Company is

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having more than &>''' outlets spread across &+' territories and countries KFC is the

subsidiary of um $ "hich is a restaurant company

KFC’s first store "as opened at #reston in &@407ince thenG KFC has spread its operations in

UK to around eight hundred location 7ome restaurants are company operated and some are

franchisee based

#resently$ KFC has around eight hundred fast food restaurant in (reland and UK The UK

operations of KFC is run by around eight thousand employees "ith o"nership divided into

seventy per cent franchised and remaining thirty percent e%uity The average turnover of KFC

outlet in UK is H&+ and H&>million The yearly sale is around sity thousand metric tons of

chicken KFC’s gro"th is mainly the result of opening of various drives thru outlets "hich

saves much on ground of retail space

1.3 Rationale for Choosing this o!ic

(n this competitive "orld$ sales promotion has become a crucial factor in the marketing mi

of an organisation There are various reasons of using sales promotion via$ popularising the

brand$ launching ne" product or service$ fighting competition$ clearing old or obsolete stock$

increasing market share etc A company may have the best in class product or service but it is

of no use until people are a"are of those products or service Apart from that there are so

many strategies for sales promotion both for customers and distribution channel members that

selection of an appropriate mi is very important since heavy cost is involved in each

decision of sales promotion activity The effect of sales promotion may be for short term like

increasing sales or long term$ building of brand image DKilter$ +''0E

7tudying the sales promotional activities of KFC "ill provide a greater insight into the field

of sales promotion and marketing by large The research "ill also help in understanding the

short term and long term role of sales promotion activities in the marketing plan of the KFC

D;ochbaum et al$ +'&&E

1." Ai#s and Ob$ecti%es of the Research

The prime aim of this research is to analyse the effect of sales promotion strategies on KFC

(n addition to this$ the research "ill also have follo"ing ob/ectives "hich it tries to fulfil

& To study the buying behaviour of customers for buying KFC products in United

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Kingdom market and the factors that stimulates them

+ To eamine the environmental factors of the market "hich have effect on the buying

decisions of customers of KFC3

- (dentifications of sales promotions strategies of KFC for increasing the demand of

product in the UK market. To analyse the effect of sales promotion activities adopted by KFC on its sales figures

in short and long run for UK market

The above mentioned aims and ob/ectives "ill be covered by getting ans"ers of the

follo"ing research %uestions

1.& Research 'uestions

)esearch %uestions set a concise and clear cut path to perform the %ualitative and %uantitative

research considering the sales promotion activities of KFC (n this research "ork the research

%uestions "hich "ill be ans"ered are as follo"s6

&E 2hat are the sales promotion activities used by KFC3

+E 2hether the impact of sales promotion strategies of KFC is for short term or long

term3

-E 2hat factors affects the buying decisions of buyers "ith respect to fast food industry3

.E 2hat "ill be the best possible mi of sales promotion strategies for KFC to get

optimum brand a"areness "ith minimum cost involvement so as to cover the

maimum market areas3

Therefore$ the researcher in this research "ill try to find the ans"ers of the research %uestions

so as to achieve the aims and ob/ectives of the research

7



2.0 (iterature re%ie)

2.1 Introduction

1iterature revie" has become an important part of the researches being carried out day by

day$ it facilitate the researchers to study about the research and to study about it (n the

present research "e are going to discuss about the effective sales strategy and the various

conse%uences "ith respect to it KFC’s strategies and various planning techni%ues for

carrying out an effective research and increase their business "ill also be discussed here The

main motive for this research is sales promotion$ using the present literature "e "ill be able

to develop some %uestions and "ould also ans"er them The merits and demerits "hich

companies are having "ith the sales promotion is an important point to focus upon$ along

"ith all these "e "ill discuss the KFC’s strategic planning and effect and relation of the sales

promotion "ith it (n the present research the literature revie" "ill act as the building block

or functional unit or "e can also assume it as a base for the research D,zersky$ +'&+E The

section "ill also be focusing on detecting the presence of tools of sales promotion and ho"

they are being used by the marketers

1iterature revie" acts as a guide to carry out the research it sho"s the "ay and help to kno"

the base$ ob/ective$ method of research etc (t has been considered as an effective and one of

the most precious tools of the research (t provides the right "ay for the research "hich is

being carried out 1et us discuss about the research "hich is being carried out presently As

discussed earlier the motive is to find out the tools and also to kno" various aspects of it

;o" the customer’s mind is affected and attracted to"ards the sales promotion$ ho" the

decision making of the customer is governed D#app$ )$ +'''E$ 7o many researchers have

been made in different parts of the "orld related to this topic in the past and are still being

made ;o" the consumer decision making and their purchasing behaviour can influence the

sales promotions Three famous personalities 1affy$ 9$ spinosa$ 1$ 9oore$ I and 1odree$

A$ +''- remarked a very important matter that the selling of goods and services of a

company or organization starts "ith the consumers and also ends on them (t is mostly

dependent on their buying behaviour ;aving a great kno"ledge is an important key to gain

success in anythingG same point is to be applied here

The various schemes like announcement of lucky dra"s$ &''J financing at the zero interest

are some of the greedy things are offered to the customers from time to time The ne" future

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plans are also made by the companiesG they set various goals for the "elfare The comparison

is the thing "hich everyone "ant to do "ith the other$ the companies also keeps an eye on the

decisions$ functionality of the companies for making them best of all KFC is focusing over

the attraction of the customer to make its brand image in developing country so that market

shares than other food chain can be enhanced in developing country (n this study main aim is

to find out the factors that affect the consumer behaviour in developing country to"ards the

international food chain KFC is facing competition "ith 9c!onald and pizza hut "hich is

also serving various locations in the "orld

2.2 he consu#er*s res!onse to)ards the sales !ro#otion

Consumer’s response is a very crucial part of sales promotion$ ho"ever around >'J it

depends over this factor for the functionality of sales promotion The t"o most important part

of the sales promotion from the consumer’s point of vie" is the maintenance and designing

of the sales promotion The consumer should definitely focus on these t"o factors so that

they may not get cheated D9orsel$ +'&'E

There are also certain things "hich the marketers should focus on "hile making a sales

promotion the first one is the response of the consumers and second one is effect of sales

promotion the particular offerings (n the past years the study has been made on long as "ell

as short term retention D=eset$ ileen$ and Christopher$ +''> ,n the other hand the branding

also makes the consumer assure of buying the services and the products of a particular

company As high and better is the branding more "ill be the customers This has been

observed in the recent time that the branding of the companies and the products help in

making a loyal and regular set of the customers D1evy$ +''4E These customers "ill prefer to

use the company’s products and services at the time of healthy competition The various

researches have been made in order to have more and more kno"ledge about the sales

promotion$ such a healthy research "as made by 7hrestha of =epal ;e focused on the

consumer’s benefit "hich he gain from the sales promotion as the competition is going to be

more tougher and tougher in the coming years the consumers only get the benefit of only t"o

things first one is of price that is the reduction or discount offered by the company and other

one is of the %uality of the products$ leaving the t"o all the remaining ones goes to the

companies D,liver$ +''0E There is a need of more advantages for the customers so as to get

the maimum benefits *ecause of only a fe" benefits the repurchasing decreases And this

does not result into the formation of ne" customers (n another research made in =igeria the

customers "ere not easily provided "ith the 7(9 card$ customers raised their voice against it

9



and at last they "on And this further leads to the dissatisfaction of the customers "ith the

company

2.3 +h, there is a need of sales !ro#otion and )hat is it-

The various marketing activities are governed by sales promotion The promotional sale has

been divided under the seven parts The basic aim of the dales promotion is to eceed the

speed of the slo" moving products in the market According to the previous researches there

are t"o types of sales promotion DKarim$ and ;eckman$ +''0Eone is the discount "hich is

offered by the trade and another is "hich is offered by the consumers The difference bet"een

the trade discount and the customer discount forms the sales promotion

2." inds of sales !ro#otion

=o" "e are onto the different parts of the sales promotion$ under this section the parts and

their ob/ectives "ill be discussed 7o let us begin "ith the trade allo"ances

2.".1 rade allo)ances/

These are "idely used by the stockers for the stocking of the productsG the techni%ue of the

sales promotion is helpful in the services like that of bulk For e: a retailer selling the 7(9

cards and other mobile accessories gets the products likes cards$ earphones$ chargers and

many other accessories in a cheaper rate $ after some time they sell these products in the full

price to the customers This is also termed as channel stuffingG this coin "as termed by )obin

Colin (= &@'' (n channel stuffing a company sells a more number of the products "hich are

above its capabilities (n the other parts of the "orld it is termed as dumping 7econd part

"hich "e are going to discuss is trade contest KFC is changing its business operating

pattern to make customers more engaged "ith business and also to be loyal customers

2.".2 rade contest:

very company "ants to sell their products and services as much as they can$ for this they

keep some street boys or the vagabonds These boys help the company in selling their

productsG some of them become permanent sellers !uring the period of selling the products$

the re"ard is usually issued to the retailer "ith the highest selling of the products (n response

to it certain re"ards are to be issued to him from the manager of the company The amount

given to the each retailer is recorded and they become a art of the competition$ the

competition of selling the most number of products This competition takes place bet"een the

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same level of the retailers it is also a point to look upon the store and its location D,g"o$

+'&-E

2.".3 ealer holder:

A bonus is usually provided to the retailers "ho purchase the products of a company in bulk$

it is also kno"n as dealer holder The aim of this is to hold up the customers to"ards their

company rather than other company DFeighery$ &@@4E

2."." raining !rogra#s

*efore starting any "ork there is a need of the proper training for it$ various companies have

focused on this issue very deeply The deep and proper kno"ledge should be in the mind of

the retailers before selling the products to the customers For instance the kno"ledge for

selling the medicines like mfg date$ epiry date are not enough to carry out the task other than

these other keys about the medicines are also important 7ame thing arises in the case of

automobiles selling$ there also you need to do a lot of research and should also have the depth

kno"ledge of it

The net generation is no" being more advanced$ making themselves to "ork in the auto

dealership sector They search it from the various sources like internet and many moresources

2.".& iscount on trades:

These are also kno"n as functional discountsG these payments are usually given to the

channel for doing some specific "ork These discounts are mostly for the persons like

"holesalers$ retailers etc these are given or issued to these persons to increase the sale of the

company’s products (t can be assume that as large is the discount large is the selling

2.& Consu#er sales !ro#otion:

+hat are the needs and benefits-

Along "ith the trade sales promotion$ consumer sales promotion is also a crucial part of the

sales promotion The field of sales promotion is a big one$ having vast aspects of sales

promotion in it D<rimes$ 2illiam$ +'&+E These helps in the stocking process of the productsG

this is mostly beneficial to the traders and dealers too The discount on "hich there is a keen

vie" of customers are mostly offered at the time of the festivals like aster and many more

11



The most probable reason for the increase in the demand of products by the customers has

been discussed earlier that as more as the discount as more as the selling of the products

Customer sales promotion also helps in the maintenance of the product in the "orld market

The fall in sales is usually seen "hen there the additional scheme related to it ends The

customer’s behaviour may decrease as "ell as can increase the branding of the company and

its products 7o there is a need of to keep the need of customers in the mind$ the companies

also have understood this point very "ell

2. ,!es of consu#er sales !ro#otion

rice deal:

7ometimes the company looks for attracting more and more customer to"ards them for this

they start offering the discounts at the base price They even takes the discount to limit o

nearly 0'J$ this changes are usually done by changing the list of manufacturing$ retail price

or the list price There are several of reasons for the lo"ering of the prices such as for

increment in short term sales

Re)ards !rogra#s:

Consumers are provided "ith the coupons$ re"ards and various other things "hen they

purchase some articles from the company These schemes are for a short time only this is alsofor attracting the customers This further helps in the buying behaviour$ some companies have

the facility of issuing the loyalty cards to some of the loyal customers D1indale$ +''@E *y

using this card either the company offers some discount to the customers or they can add

some points into their account "hich can be used in the future shopping purposes DAaseng$

+''&E This card is also used for the verification purposes such as during the issuing and

"ithdra"ing the che%ue

uantit, deals:

(n these deals there is also a plan for the reduction of the prices for the products these all are

for providing the maimum benefits to the customers ?arious companies have various plans

for it$ in some companies there is a formation bet"een the customers and the company

management to share these deals and discounts This increased the consumer’s trust over the

company for longer time period

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rice !ack deals

Along "ith all the benefits there more for the customers to get through the companies

customers sometime are in more advantage than the company’s offers more at the same price

D7mith$ Andre"$ +'&& For e on a packet of tea$ the earlier price "as +'' for &kg after some

time the company offers some etra tea for the consumers they offers +0Jetra and much

more schemes The motive is same for all these$ to earn and increase the sales promotion

Cou!ons:

A document "hich can be used as a means of echanging the document "ith the product is

termed as a coupon The main feature of this document is that it also helps in the discount

related aspects The %uestion arises that "here do these coupons come from3 1et us make

you kno" that this document is usually issued to the customers by the manufacturers D*inney$

+'&+E The various means of distributions are like cell phones$ ne"spapers etc having the

coupons have another advantage too this advantage is of getting the products in a cheaper

price (n this healthy competition coupons are a source of income to the manufacturer

Checkout dis!ensaries:

(n the case of checkout$ a coupon is issued to the customers (t ( an important tool$ if a

customer "ant to repurchase the products ?arious products like po"der are used to issue a

coupon to the customers

Online/cou!oning:

There are t"o folds advantages of online couponing first one is the a"areness and other one

is collection ,ther than these merits the various advantage are related to it The discount is

offered by the company at a high rate

Rebates

The companies allo" the many back guarantee for some people and customers$ from them

9() is the main important This facility lets a consumer to order the products through the

mails (t has been said by Cro" in +''> the main motive of the rebates is to provide the

customers "ith the discount$ for the purpose of attracting the more customers and also to

raise the efficiency of the product by fiing the price of the products DColling"ood$ +''>E

The slight fall in the price of a particular product results in the decrease of overall prices of

the entire products

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oint of sales !ro#otion:

This is the techni%ue of selling the product of the company at the same place$ they attract the

customer’s attention through various methods like discount$ lucky dra"s etc these are

usually carried out at the time of special occasions like that of festivals$ marriages etc the

various things they have usually "ith them to sell are che"ing gums$ cold drinks$ magazines$

tobacco etc these all things together cover a lot of space on the counter$ consumers get

attracted by it and start the purchasing of the products in a bulk %uantity D7haron$ +'&'E

4a#!le of the !roducts

The sample of a products help in making the mind to buy a product or in ignoring it$ it is

mostly given to the customers for the checking purposes$ this further decide that the

follo"ing product "ill be a successful one or notD;orovitz$ +''. E

ids corners

After all of the discounts the discounts are offered to the kids on their items such as candies$

"ear etc in big restraints also it has become common that "ith t"o regular meals one "ould

be provided free of cost

4ales !ro#otion of 5C:

KFC is a "orld"ide accepted company kno"n for its best meals There are many specialtiesof KFC but the most liked by the customers is their clean environment for the eating

purposes *ecause of all these %ualities adopted by it is no" one of the "orld’s best

companies This company has marked a tremendous success in /ust a %uick lap of time Along

"ith all these no" "e discuss about its business strategies$ "hich are kno"n for its success

all over the "orld The company offers around &'' eisting deals online presently D7olace$

+''@E The KFC group of companies has "idely used coupons codes "hich can be used in

any KFC centre of the "orld The loyalty coupons$ discounts$ sales combo$ surveys are its

some of the specialties 1oyalty coupons are provided to the customers for their "elfare

purposes$ after collecting the three coupons these are needed to be submitted on the counter

of KFC$ for the future discounts on other meals (n the case of survey discount the customers

are provided "ith the +'J off on the net meal$ if they order it online ,ther offers like

combo packs are for the specific purposes of the customers KFC also provides free gifts for

the kids to make emotional touch "ith them and making their family members more engaged

"ith the business

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3. 6 Conclusion

(t is concluded by analysing all the above information that consumer behaviour is shaped

"ith various kinds of factors and also influence time to time "ith the change of the

environmental factors 7ales promotions have impact over the consumer behaviour "hich is

highly influenced consumer behaviour *usiness activity and events have ma/or impact over

the shaping of positive attitude to"ards the company image and its services KFC is focusing

over the development of brand communication by using different modes so that large group

of customers can be targeted motional marketing is also beneficial mode of communication

and developing distinct image in the mind of customers (t is critically analysed that

consumer behaviour depends over the intensity of information flo" in market through easy

mode of communication (f Company is focusing over the development of the

communication tools for making effective communication$ it "ill be on the ape of the

industry level

3.0 Research 7ethodolog,

This chapter is one of the most important chapters of the research report The selection of the

research "ill be dependent completely upon the analysis of the use of sales promotion in

organizations market plan "hich is specific to the case study of KFC in the United Kingdom

The research methodology provides a detailed analysis of the various methods$ tools and

techni%ues "hich are available for conducting a research and selecting the best out of it in

accordance to the topic of research DLikmund$ +'''E The use of an appropriate method of

conducting the research aids in increasing the reliability and the validity of the research data

The purpose of research$ research study and various sample selection methods as "ell as data

analysis method "ill be discussed The study of reliability and validity issues "ill also be

studied in the chapter This part "ill help in providing a better understanding concerning the

15



topic of research The study "ill also be carried out in a "ell6defined and structured manner

This part of the research "ill include the research approach research strategy$ research design$

data collection methods$ data analysis methods and the ethical considerations as "ell

3.1 R848ARC9 84I;

According to Kumar$ D+'&'E$ the research designing can either be descriptive or eploratory

in nature The descriptive research aims at gathering the re%uired information concerning the

research topic "hich is the analysis and the use of sales promotional in the organizations

marketing plan "hich is concerned "ith KFC The descriptive research is concerned "ith the

formation of an assumption "hich is formed by the researcher "hich is even termed as

hypothesis The aim of the study is to check the hypothesis This approach is generally used

"hen the variables concerning the research are very clear "ith the situations D)osemary$

+''0E Also the information re%uired to analyse the research is %uite preside as "ell ,n the

other hand the eploratory research pays heed on gaining the %ualitative results and is limited

to a specific but small number of respondents 9oreover$ descriptive research is concerned

"ith the %uantitative study of the provided samples of the concerning population !escriptive

research is an effective tool understand the factors "hich are concerned "ith the decision

making process of the customers "hich is in this case is concerning the products of KFC

ploratory research at the same time is regarding the collection of %ualitative data about

KFC This particular approach to research is not dependent upon the assumptions or even the

ideas formed before D=e" man and *enz$ &@@>E This approach is very relevant and affective

"hen there is no information available about the topic of research or even "hen only little

information is available For this particular data an amalgamation of these t"o approaches

"ill be appropriate There are certain areas "here insignificant information is available about

the company KFC This is a more fleible as "ell as unstructured in its nature The data is

even %ualitative The use of eploratory research "ill be done for different reasons "hich are

as follo"s:

• To clearly define the issues "hich are concerned "ith the marketing issues of KFC3

• Aids in the generation of impetus for ne" products$ generation of feedbacks$ pre

testing of the %uestionnaire

• Affective analysis of the marketing strategies of KFC and their impact on the market

16



share of the company

• ven the evaluation of the customer’s preferences and attitudes to"ards the products

of the company "hich "ill help in understanding the marketing strategies formed by

KFC are effective or not

3.2 R848ARC9 AROAC9

There are various philosophies "hich gave rise to different research approaches There are

some approaches "hich gained more popularity rather than others (n the perception of

7unders$ 1e"is$ Thornhill$ D+'''E$ some of these approaches are as follo"s:

• mpirical approach: this approach is divided by three approaches "hich can be

"idely divided into %uantitative and %ualitative approach$ inductive and deductive and

ob/ective and the sub/ective approach

• =on empirical approach

4econdar, researchThe secondary research is concerned "ith the eisting data "hich is available about topic and

KFC The literature part of the research report "ill be formed "ith the help of this secondary

research "hich is gathered from the "orks of different academicians and scholars The

secondary research and dra"ing the important parts of it is the initial stage of any research

The secondary information about KFC is available from various articles$ advertisements$

ne"spapers and some other sources The marketing strategies of the company are given a lot

of importance The value of the secondary research is even enhanced as it provides the

researcher the relevant as "ell as valid information "hich aids in evaluation of the demand of

the products of KFC and help in understanding the market of the food industry "hich is

specific to KFC in this case

A<A;A84 O5 48CO;AR= AA:

• This data re%uires minimal search for the information

• (t re%uires less amount of time

• The availability of this data is either at no cost or at very less cost Dasterby67mith$

17



Thorpe$ and 1o"e$ D+''+E

• The data can be gathered at a very small amount of time

• The secondary data is al"ays collected for a particular purpose and the data is valid as

"ell as relevant

• The data gathered "ill be specific to KFC "hich "ill provide structure to research

(t is often observed that the information "hich is related to the company directly re%uires a

lot of research and at times it is even difficult to find this information At times the data

related to the company is even not available D#anneerselvam$ D+''.E Also$ the data can either

be related to a particular year or sub/ect of "ork "hich makes the data irrelevant for use Thedata can be collected from various sources such as books$ government organizations$

/ournals$ articles$ "ebsites$ magazines$ ne"spapers$ and publications to name a fe" To make

the data related to KFC more effective and valid a miture of data "ill be taken from

different sources of secondary data

3.3 ri#ar, research

3.3.1 ualitati%e a!!roach

This data is collected for the first time and is only concerned "ith the current topic of study

This data is useful for the evaluation of the descriptive data by the "ritten or oral observed

behaviour of the selected respondents (t can be described as the "ay of conducting research

"hich is in the favour of the topic of research and provides meaning and phenomenon of

observation The data is al"ays very difficult to %uantify The figures and the statistics are not

completely denied by this approach but are al"ays used at the second place The research

methods used are:

Inter%ie)

(ntervie"s are the most commonly used tool of the research approach and it distinguishes

"ith the oral and the "ritten %uestionnaires The %uestionnaires are often termed as the part

of different subsets of the huge range of intervie"s process D7aunders$ 1e"is and Thornhill$

18

http://www.google.co.in/search?sa=X&biw=1241&bih=606&tbm=bks&tbm=bks&q=inauthor:%22R.+PANNEERSELVAM%22&ei=ezgSUp_0GIeFrAf5mID4Dg&ved=0CC8Q9AgwAA




+''-E The researches define the process of intervie" as an event of speech in "hich the

intervie"er gathers the information from different respondents and even the related

information of the respondents

The researcher is free to conduct different types of intervie"s and the researcher must select

one "hich is best suited to the research study The intervie"er has the option to conduct free

intervie" "here the researcher has the option to redirect the intervie" This method of

intervie" goes in accordance to the flo" "hich means that the %uestions are unstructured and

are formed in accordance to the ans"ers of the respondents ,n the contrary there is an

intervie" "hich is structured or systematic in its "orking D9iles and ;uberman$ &@@.E For

this intervie" the %uestions "hich are to be asked to the respondents are already planned and

pre tested before putting them to use Also$ there is option of conducting semi structured

intervie"s "ith the intervie"er in "hich some of the %uestions are pre planned and some

%uestions go "ith the flo" (t is to be noted that the intervie" may or may not be individual

as the intervie" can be taken in the groups The reason for conducting the intervie" can also

differ from one research to another one in a diverse manner The effective use of the

participatory observation involves the voluntary attention and intelligence and "orks in

accordance to a pre6set ob/ective or the ob/ects set by the organizations for the accumulation

of the information (n this particular research the observation is directed to"ards the

organization KFC by keeping the theoretical "ork in reference

7ur%e,

(t is very difficult for the researcher to gather information from end number of respondents

and also this is a very costly process D#resser$ +''.E To remove this hazard the help of the

effective tool called survey is made by "hich the opinions of the customers or the

respondents become clear

Benefits of qualitative research

There are several benefits of conducting the %ualitative research The area of study is "ell

eplored and evaluated Any research becomes successful only "hen the %uality of the

%ualitative research is high and unbiased D!a"son and Catherine$ +''+E *y conducting the

%ualitative research the marketing strategies of KFC "ill become clear and it "ill even aid in

providing recommendations to the company "hich are practical in nature

19



Quantitative approach

The information "hich is accumulated "ith the help of %uestionnaire "ill be used for the

research "ith the effective use of the %uantitative methodology and the results "ill be in the

form of facts and figures The research methods used are:

educti%e a!!roach

!eductive approach can be described as a scientific "ay by "hich a hypothesis is formed for

increasing the validity and the reliability of the data of KFC 2hen$ this deduction id done for

the future prospective then it is termed as prediction 2ith the help of this method the results

can be easily compared and the observations could be made out

Ob$ecti%e a!!roach

(n this research the application of ob/ective approach "ill be evident as this method is far

independent "hen it comes to conducting the research and evaluating the data

3." ata collection #ethod and Anal,sis

ata collection #ethod

The methods of data collection are "idely divided into t"o "hich are the secondary data

collection methods and the primary data collection methods

4econdar, data collection

The secondary data is the one "hich is available already and have been used earlier in the

researches This data can be from various sources The data "hich is relevant to the KFC and

its marking strategies "ill be taken into consideration !ifferent sources of secondary data

collection are as follo"s:

• Sales report :

This is the source of information "hich is highly observed by the

researchers and the retailers DCres"ell$ +'&+E This "ill help the researcher

20



to gather relevant information about the brand KFC

• Customers report :

These reports can be searched in the customer forums and can help theresearcher to update the information to a great etent

• Articles:

They are a very important source of data collection and aid in fetching the

information "hich is not even available in various publications

• Books:

They act as the most relevant source of information and aids in the

accumulation regarding different aspects of marketing concerning the brand

KFC

3.& ri#ar, data collection

Inter%ie)

As far as conducting the primary research is concerned the emphasis "ill be conducting face

to face intervie" "ith the selected respondents For this purpose the employees of KFC "ill

be asked to fill up a %uestionnaire "hich "ill be concerning the topic of research D9ertens B

9c1aughlin$ +''.E The respondents "ill be eplained the reason for conducting the research

and the facts "on’t be misguided in any "ay The respondents "ill be set free to ans"er and

no limitations "ill be set on them

4ur%e,

The method of survey "ill be very useful for the current research The %uestionnaires "ill be

formed in a structured manner and "ill have close ended %uestions As the respondents are

eplained the reason for conducting the research the truthful ans"ers "ill be epected out of

them This method "ill enable the researcher to collect the concerning information about the

research$ marketing strategy and KFC The %uestionnaires "ill be distributed to those "ho are

21



related "ith KFC in any "hich "ay

3.. ata anal,sis #ethod

The effective use of %ualitative and the %uantitative data "ill be helpful in analysis of the

primary data ven in this particular study an amalgamation of the %ualitative as "ell as

%uantitative data "ill be helpful in evaluation and the analysis of the %uestionnaire and

generation of the results from the intervie"s As far as the %ualitative methods are concerned

the method of intervie" "ill be evident and for the %uantitative method the %uestionnaire "ill

be helpful The ans"ers from each and every respondent "ill be taken into consideration for

gathering the high %uality information D9c=iff B 2hitehead$ +''+E The distribution of the

%uestionnaire to the esteemed customers of the brand KFC "ill be generating the %uantitative

data from the perspective of the customers also The summation of both of these methods as

the tools for analysis "ill enable the researcher to reach to reliable$ valid$ truthful and

authentic results concerning the marketing strategy and KFC The relation bet"een the t"o

"ill also be understood in a better "ay

3.6 (i#itation of secondar, and !ri#ar, data

Although the primary and the secondary sources of data collection are used enormously in the

research and are the most commonly used methods of conducting the research but still these

methods have their o"n shortcomings The secondary data is %uite easy to gather but at the

same time the credibility of the research is al"ays a %uestion of doubt Also$ the information

available from the secondary sources is never complete The information should al"ays be

accurate and trusted one The secondary data is also the past data and often becomes

irrelevant in the present situation The secondary data is often observed to be unclear$

unstructured and false The primary data even takes a lot of time and money "hich acts as its

biggest limitation

3.>. <alidit, of secondar, data

The validity of the secondary source of data is al"ays a %uestion of doubt This information

should al"ays be appropriate and "ell6constructed !ouble checking and pre testing the

data is al"ays being helpful The %uestions formed "ill include the information "hich "ill

be concerned "ith the brand KFC The manner in "hich the data is collected "ill be

22



etremely important The information "ill be latest and "ill enlighten the current scenario

The process of collecting the data "ill be clear and "on’t have any dilemmas

The validity of the %ualitative research at the same time "ill be ensured$ evaluated and

analysed The data must be verified internally as "ell as eternally D9erriam$ B Associates$

+''+E The internal validity can be described as the degree to "hich the further eplain

nations and measurements of marketing strategy of KFC are studied in the best "ay

possible

3.?. o!ulation and 4a#!ling

For conducting the study the size of the respondents must be considered as the %uestionnaire

is distributed among these respondents These respondents help in gathering the perception

they have about the brand KFC and different aspects of marking the company is engaged in

There are end numbers of people "ho visit KFC for dining out The population "ill be

limited to the customers of the United Kingdom For purpose of conducting the research it is

impossible to evaluate the ans"ers of this endless population because of "hich the sampling

method "ill be used A total of &0' people "ill be provided "ith the %uestionnaire This

sample "ill be a combination of the customers "ho enter at KFC at different times of the day

by "hich the data can be evaluated in a better manner As far as sampling methods areconcerned there are various methods of sampling such as stratified sampling and random

sampling to name a fe" ,ut of these methods section of the random sampling methods "ill

be appropriate for this particular research as the ransom sampling is supposed to be most

unbiased method of sampling and a true reflector of the results mphasis "ill be given on

obtaining the needful information from the %uestionnaire "hich "ill be having close ended

%uestions and the respondents "ill be asked to select from the ans"ers provided

3.10. 8thical consideration

To conduct any research the ethical considerations must be considered These ethical

considerations provide a specific guideline in accordance to "hich the related research moves

for"ard They even enhance the %uality of the data accumulated and remove the concern of

validity and reliability 2ithout use of these set of rules the data collected and analysed is

considered to be false (t is etremely essential to collect the secondary information for the

research but the information should al"ays be cited in an appropriate manner The research

must be an original piece of "ork and should not be copied The referencing part must be

23



given a lot of heed The respondents must be "ell informed about the research and the reason

because of "hich the research is being conducted D,liver$ +'&'E Also$ the data "hich is

gathered from the %uestionnaires must not be manipulated in any "hich "ay These ethical

issues "ill also be follo"ed in this particular research

".0 AA A;A(=4I4 A; 5I;I;4

".1 Introduction

This chapter is very essential as it gathers the data from the selected methods and then

evaluation of the data gathered is done "hich results in reaching to the findings of the

research (n this particular chapter heed is paid to design a %uestionnaire be keeping the

aims and the ob/ectives of the research report in mind The evaluation of these ob/ectives

"ill be made by the use of effective tools by "hich the conclusion "ill be dra"n to the

eisting research problem (n the %uestionnaire the primary survey of the customers "ho

are regular visitors of KFC "ill be made The total number of visitors "ho "ill be

provided "ith the %uestionnaire "ill be &0' The analysis of these customers "ill be on a

"eek’s basis and the %uestionnaire "ill be handed to them The customers "ill be set free

to ans"er on their o"n and the reason for conducting the research "ill be eplained to

them The %uestions formed "ill be concerned "ith the fulfilment of the aims of the

research "hich is to analyse the impact of the sales promotional activities of KFC

specifically to the customers of United Kingdom The main ob/ective "hile the formation

24



of the %uestionnaire "ill remain to evaluate the promotional strategies "hich are used and

by the brand KFC (t "ill even to understand the impact "hich these strategies have in

motivating the customers to make purchase at KFC The promotional strategies even aid

in attracting the customers to"ards KFC The sales promotion acts as an etremely

crucial tool for the organizations to boost up the sales and the profits earned

2ith it there are many environmental factors "hich "ill be studied and eamined "hich

have their diverse impact on the purchasing behaviour of the consumer of United

Kingdom There are different promotional activities "hich are performed by the

management of the KFC the influence of these activities on the consumer of the

organization At last$ the dimensions of the sales promotion of KFC in the short as "ell as

the long run "ith the buying or the purchasing behaviour of the consumer "ill be

understood To reach to the findings and achieve the ob/ectives formed a sum total of

fourteen %uestions "ere developed "hich "ere ans"ered by the customers Also$ to

understand the process in a better "ay the details about the customers "ere even asked

such as their age$ se and occupation The sample size "hich "as given preference "as of

&0' customers and the application of random sampling "as done

".2 5indings of uestionnaires

The research "ill be divided into several %uestions "hich "ere asked from the

respondents from the medium of %uestionnaire These %uestionnaires "ere distributed to

the customers "ho entered the KFC restaurant (t "as made sure that the %uestionnaire

"as distributed to random customers of different age groups at different times of the day

and the evenings mphasis "as given to maintain a huge scope of timing concerning the

entry of the customers in the store because of "hich the interaction "ith different

customers "as possible at varied time intervals 7ome basic information "as even taken

from the customers "ho "ere to understand the demographic division of the customers

of KFC These demographic details are as follo"s:

1. ender

A total of &0' respondents "ere asked to fill up the %uestions and it "as observed that

about &'> respondents and the people entering in the restaurant of KFC "ere males

and only .+ of the customers of KFC "ere females This means that out of &0'

respondents a total of 8+J of the KFC’s customers are predominantly males and only

25



+>J of the customers are females *y understanding the ration of male female "ho

prefer to dine at KFC the promotional strategies can be developed in a better "ay to

attract those set of customers The diagram belo" describes this statistic in a

systematic mannerG

Males Females0%

20%

40%

60%

80%

Gender

Axis Title

<ender =umber of people #ercentage

9ale &'> 8+ per cent

Female .+ +> per cent

Total &'0 &'' per cent

Findings: 9ore number of males visits KFC than females

+ Age

(t is observed that the people of different age have separate preferences and choices

As far as the age of the customers is concerned the division "as made in five groups

"hich consisted of different age The division of the groups "ill be very helpful in

26



understanding the similarities and the differences among the customers 7ome of the

groups "ill have similar preferences and choices of promotional strategies "hereas

fe" "ill differ in their opinion and epectations from the promotional strategies and

the brand KFC 9oreover the actions of the buying behaviour of the people can also

be easily monitored and eamined "hen the customers are divided into various age

groups and segments

The different groups "ere divided as <roup A: "hich has the customers "ho are

belo" than &4 years of age This group "as named as group and the teens The total

number of respondents from this group "as &. and they constituted @--J of the

total The second group "as the <roup *: "hich constituted of the customers bet"een

the age group &4 to +0 years and "as termed as youth The total number of theserespondents "as 04 "hich "as the highest among all the customers and formed a total

of &8-- J The third group "as the <roup C: "hich had the people of the age group

+0 to -0 years of age and this group had .+ customers and formed +>J of the total

customers "ho visited KFC This group "as called adult people group The fourth

category belonged to the <roup !: "as made up of the mid aged people of age

bet"een -4 to .0 years The total numbers of respondents "ere +0 years of age and

constituted a sum total of &444J The last group formed "as the <roup : "hich had

the customers belonging to the age group of .4 to 00 years of age and "as named post

mid aged people The total number of respondents belonging to this group "as &- and

constituted of >4J

Age groups Category )espondents #ercentage

<roup A: *elo"&4 years Kids and the teens &. @-- per cent

<roup *: &4 M +0years outh 04 &8-- per cent

<roup C: +0 6 -0 years Adult people .+ +> per cent

<roup !: -4 6 .0 years 9id aged people +0 &444 per cent

<roup : .4 6 00 years #ost 9id aged &- >4 per cent

27



people

Total &0' &''J

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

Number of people

Number of people

5indings: the youths and adults visit KFC the most

- ;ave you visited KFC before3

This "as the first %uestion "hich "as asked to the customers and it "as not

astonishing that out of &0' customers only + customers "ere visiting KFC for the first

time and the others had been to KFC before The t"o options "ere given to the

customers to select from and constituted of:

• es

• =o

Categor, Res!ondents ercentage

=es &.> @>44 J

;o + &.J

28



yes no0

20

40

60

80

100

120

140

160

Visit to KFC

Column2

5indings: 9aimum people have visited KFC before

. ;o" fre%uently do you prefer to visit KFC3

The fre%uency of visiting a restaurant describes about its popularity and likability

among the customers 2hen this %uestion "as put for"ard to the respondents the

ans"ers "ere astonishing The respondents "ere given four options to choose from

These options "ere:• very three days

• (n a "eek

• very fifteen days

• =ot sure

From &0' respondents &> respondents ans"ered every three days (n a "eek "as ans"ered by

a sum of .> respondents very fifteen days "as the ans"er "hich had the maimum

customers and about 84 respondents marked on this option "hich "as astonishing The least

"as a total of > respondents "ho "ere not sure about their visits Another surprising part "as

that 84 respondents "ho visit KFC in every fifteen days "ere a miture of adults and youths

&+J of the customers prefer to visit KFC in every three days 2ithin a "eek’s time the

restaurant is visited by about -+J of the customers 0'44J of the customers prefer to visit

the place in a gap of every fifteen days ,n the other hand it "as a total of 0-- customers

"ho "ere unsure about the fre%uency of their visit to KFC

29



30

Fre%uency of visit )espondents #ercentage

In e%er, three da,s &> &+ per cent

+ithin a )eek*s ti#e .> -+ per cent

8%er, fifteen da,s* ti#e 84 0'4per

cent;ot sure > 0-- per

cent

Total &0' &''J



0%

20%

40%

60%

80%

100%

120%

Frequency of visit to KFC

Frequeny of !"s"#

Axis Title

Axis Title

5indings: 0'J of the customers visit KFC in every &0 days

0 !o you pay heed to the promotional schemes’ of KFC and place order accordingly3

2hen the respondents "ere asked that they pay attention to the promotional schemes

made by the company and then place the order in the restaurant about &-> customers said

yes as an ans"er This %uestion "as having t"o options as an ans"er "hich "ere:

• es

• =o

The remaining &+ customers had their o"n perspectives on the %uestion and did not

order there food keeping in mind the promotional schemes (t refers that a total of

@+J customers agreed that they prefer to go through promotional schemes and >J

neglected it

31

;eed on sales promotional schemes )espondents #ercentage

=es &-> @+ per cent

;o &+ > per cent

Total -' &''J



$es No0

20

40

60

80

100

120

140

160

Heed on sales promotion

ee& on sales promo#"on

Findings: the customers pay attention on sales promotion schemes

. ;o" much do you spend at KFC at once3

The spending po"er of the customers can be /udged by the amount of money they spend at

the restaurant at one "hile dining out there There "ere different slabs of spending "hich

"ere formed for the customers to select from and each customer ans"ered in accordance to

their spending of that particular day at KFC The data concerning the spending of the

customers are as follo"s:

32


Belo) & ounds +4 &8-- per cent

&/10 ounds 48 ..48 per cent

10/1& ounds .- +>44 per centAbo%e 1& ounds &. @-- per cent

&0' &''J



*y the evaluation of the data gathered it "as observed that the maimum number of

customers belonged to the second category made "hich "as from five to ten pounds As$

about 48 customers or respondents choose this as an ans"er This constituted of a sum of

..48J The customers "ho did spend less than 0 pounds "ere +4 and contributed

&8--J of the total From ten to fifteen pounds "as selected by .- people "ho

contributed +>44J of the total respondents The lo"est marked option "as of above &0

pounds and "as selected by fourteen people forming @--J The graphical representation

of the same is follo"s:

0

20

40

60

80

100

120

140

160

Spendins by customers

Column1

'er"es 3

33



Findings: the customers pay 06&'pounds during their visit to KFC

4 The last time you visited KFC did you spend the same amount of money or less3

To understand the process of buying of the customers this particular %uestion "as formed

"hich helped in understanding the spending pattern of the customers of KFC This "as a

detailed analysis of the ependiture made by the customers To generate detailed

information the help of the organizational customer database "as taken and the details

"ere dra"n by entering the name of the customers or even the mobile number 9ost of

the customers visited the same restaurant of KFC beforehand because of "hich the

process of generation of the data became a bit easier The data even aided in

understanding the effect of the sales "hich "ere made after the process of sales

promotion applied to the organization The results gathered "ere as epected as it "as

found that the sales of the products offered by the organization increase in an incredible

amount "hen the sales promotional measures are taken by the company This data pays

heed on the saes of the organization "hile the absence of sales promotional techni%ues

The slabs of amount spent "ere kept the same as before The data "hich "as gathered is

as follo"s:

Categor, Res!ondents ercentageBelo) & ounds .> -+ per cent

&/10 ounds 4+ .&-- per cent

10/1& ounds -0 +--- per cent

Abo%e 1& ounds 0 --- per cent

(t "as found that before the implementation of the promotional strategies there "ere a

total of .> respondents "ho belonged to the first category "hich "as belo" 0 pounds and

constituted of -+J of the total customers After the sales promotional strategy "as

applied the number of customers reduced to +4 and the people started spending more on

the company There "ere 48 people "ho belonged to the second category after the

application of sales promotional strategies "hich "as before 4+ and constituted .&--J

The third group had only -0 customers before the application of the promotional

strategies and contributed +---J "hich after the application of sales promotion

strategies increased to .- ,nly five customers used to purchase products of KFC before

and contributed only ---J "hich later increased to &0 people 2hen the promotional

34



schemes "ere implemented the amount "hich the customers used to invest in the brand

even increased to a considerable amount

(elo) 5 *oun&s 5+10 *oun&s 10+15 *oun&s ,bo!e 15 *oun&s0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Spendins before !romotional stareteies

Column2

8 ;o" do you perceive the promotional offer of the band KFC3

Kno"ing the customers opinion about the promotional offers is etremely important by

"hich formation of better and ne" strategies can be done "hich are suited "ith the

customer’s likings The customers "ere provided various options to select from These

options are as follo"s:

• cellent

• <ood

• Average

35



• #oor

(t "as observed that a total of -> respondents thought the promotional strategies of the

company to be ecellent They formed +0--J of the total customers of KFC 0> respondents

thought that the promotional strategies formed "ere good and contributed to +>44J ,n the

other hand$ it "as 0' customers "ho thought the promotional strategies to be average and

formed a total of ----J 9oreover$ there "ere only . customers "ho thought the$ marketing

strategies and the promotions done by the company to be poor and comprised of +44J

36

)ating scale )espondents #ercentage

8@cellent -> +0--per

cent

ood 0> ->44 per

cent

A%erage 0' ---- per

cent

oor . +44 per

cent

Total &0' &''J



-ellen# /oo& ,!erae *oor o#al

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

Number of respondents

Number of respon&en#s

Findings: the customers perceive the promotional offers at KFC to be good

> 2hat according to you as a customer is the best "ay of promoting the products of KFC3

The company takes into consideration various "ays by "hich the products can be

promoted and the sales can be influenced of KFC ,ut of all the promotional strategies

the most fre%uently follo"ed are:

• conomical price

• ;igh %uality

• Coupons and discounts• nough %uantity

37



• ,ther gifts

These strategies "ere mentioned as options from "hich the customers "ere asked to select

one This %uestion "as very crucial as it had the capacity to uncover the perspectives of the

customers "hich they had for the promotional strategies This "ill even help in understanding

the preferences of the customers to"ards the promotional strategies The customers "ere

asked to select one from the four options and then calculations "ere dra"n out of them

An economical price of the product "as the first option and it "as observed that

maimum number of respondents preferred to buy the product "hen the prices offered by

KFC are economical A total of 8+ respondents selected this option and constituted of .>J The net option "as of high %uality (t is a fact that "hen the organization offers a

38

)ating scale )espondents #ercentage

8cono#ical rices 8+ .> per cent

9igh 'ualit, &- >44 per

cent

Cou!ons and discounts -' +' per cent

8nough 'uantit, +> &>44 per

cent

Other gifts 8 .44 per

cent

Total &0' &''J



high %uality of food the customers are automatically attracted to buy the products A total

of &- respondents agreed to it and constituted of >44J The third option "as of coupons

and discounts "hich "ere selected by -' people constituting +'J nough %uantity "as

the fourth option and +> respondents selected the same contributing to &>44J The

%uantity of the food matters a lot to the people The last option "as any other form of

gifts "hich "as selected by the minimum number of people and came up to be seven

This even made .44J of the total

0%

20%

40%

60%

80%

100%

120%

!references of !ronotional Sc"emes

Column2

Findings: economical process follo"ed by coupons and discounts are the best

promotional schemes

@ !o you inform about the offers going out at KFC to your friends and peer groups3

2hen the customers visit any restaurant they often talk about it "ith their friend$

relatives$ community and other peer groups This often brings ne" customers to the

organization There "ere t"o options "hich "ere given to the customers of KFC to select

from These t"o options are as follo"s:

• es

• =o

39



,ut of a total of &0' customers a sum of &-8 customers stated that they inform about the

offers going on at KFC "hile there visit to their friends and other relatives the maimum

sharing of information takes place bet"een the teenagers and the youths as they are more

curious to try at different restaurants These people formed @&--J of the total customers of

KFC The customers "ho said =o as an ans"er$ "as limited to &- and they compromised of

>44J of the total number of customers

The tabular and the graphical representation of the same are as follo"s:


=es &-8 @&-- per cent

;o &- >44J

40



$es No0

20

40

60

80

100

120

140

160

S"arin #nformation

Column1

Findings: "ord of mouth has its o"n place in spreading the promotional offers

&' 2ould you like the offers to remain as a part of KFC culture3

This %uestion "ill provide an insight about the likability of the customer’s to"ards the

promotional offers at KFC The customers "ere given three options to select from These

options are as follo"s:

• es

• =o

• !oesn’t matters

A total of &-0 respondents ans"ered it as a es This refers that these customers "ould like

the promotional offers to be a regular part of the organization and they are attracted "ith

these offered =o "as an ans"er of very fe" respondents and these respondents "ere &- in

41



number ,n the other hand doesn’t matter "as selected by + people These numbers

constituted to @'J$ >4J and &-- J respectively


=es &-0 @'per cent;o &- >4 per cent

oesn*t #atter + &-- per cent

yes no &oesn# ma##er0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

$o you %ant o&ers to remain'

Column2

Findings: the customers of KFC "ant the sale promotional schemes to be a part of KFC

&& 2hich of the offers given by KFC do you relate yourself the most3

This %uestion "ould help the preferences of the customers and even "ill help in

developing an understanding about the effectiveness of particular offers from the laid

options so as these options can be re implemented in the future as a part of sales

promotion schemes so as to increase the profits and market share of the organization The

sales promotion schemes at KFC can be planned and "ell organized in future "ith the

help of this %uestion The different options "hich "ere given to the customers "ere

concerning the old sales promotion offers "hich "ere implemented at KFC either once or

42



t"ice in past and then no implementation "as done The offers given previously "ere as

follo"s:

• Free toppings of your choice

• ,ne on one• Free eatables for kids under 0 years of age

• Combo meals

• Coupons for future order


5ree to!!ings of ,our choice &@ &+44 per cent

One on one free 04 -8-- per cent

5ree eatables for kids under

& ,ears of age

&& &&8- per cent

Co#bo 7eals .- +>44J

Cou!ons for future order +& &.J

Among the total of &0' customers the option free toppings "as selected by about &@ of the

customers These customers comprised of a total of &+44J The net option given "as of

one on one free "hich the most preferred option "as and a sum of 04 respondents selected it

"ith a percentage of -8-- The third option given "as of free eatables for kids under the age

of 0 years and only && respondents selected it "ith a total percentage of 8-- the combo

meals "as the fourth option and "as the second most preferred option as .- respondents

agreed on the same The total percentage of this option "as +>44 The last and the final

option "ere of free coupons for the future order and +& respondents selected it "ith &.J as

its total

43



0.00%5.00%

10.00%15.00%20.00%25.00%30.00%35.00%40.00%

Customers remembered

*eren#ae

Findings: the customers like the offers of one on one free the most

&+ 2hat are the main reasons "hich have impact on the purchase decision as acustomer3

(t’s the purchase decision of the customers "hich makes the customer to buy a

particular product or service (t is essential for all the organizations to understand the

buying behaviour of the customers !ifferent options "ere given to the customers to

select from and these options are as follo"s:

• Cost

• Advertisements

• Taste preference

• *rand name

Categor, ;u#ber of Res!ondents ercentage

Cost 4- .+ percent

Ad%ertise#ents 0- -0-- percent

aste reference ++ &.44 percent

Brand ;a#e &+ > percent

44



The ans"ers to this %uestion "ere very different from one another The first option given to

the customers "as that of the cost as cost is the most important factor "hich influences the

buying decision of the customers A total of 4- respondents marked it and formed .+ percent

of the total customers "hich "as the highest among all Advertisements are often broadcasted

and displayed on the hoardings "hich attract the customers and motivate them to make

purchase 0- respondents stated that the advertisements of KFC stimulate them to make

purchase and contributed about -0--J The taste buds play an essential role "hen it comes

to liking of the food The taste preference is an important determinant "hich influences

buying and ++ customers agreed "ith it form it &.44 percent of the total customers The last

option "as the brand name and "as least marked by the customers as only &+ customers

selected it "ith a total percentage of >J "hich refers that till the time the food is good and

economical at cost the customers do not pay importance to the brand name

Cos# ,&!er#"smen#s as#e preferne (ran& name0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Factors in(uencin t"e purc"ase decision of t"e customer

Column2

45



Findings: pricing and the advertising of the sales promotional schemes stimulate the

customers to make purchase

&- !o you feel that any other brand offers better promotional schemes than KFC3

KFC is having several competitors such as 9c!onalds$ *urger King$ 7ub"ay and #izza ;ut

to name a fe" These competitors also offer different promotional schemes so as to attract

their customers The customers being "ell a"are today often compare the promotional

strategies of different companies "ith each other This "ill even aid in formation of better

strategies in future The customers "ere given four options out of "hich they needed to select

one These options "ere as follo"s:

• 9c!onalds• *urger King

• 7ub"ay

• #izza ;ut

Categor, ;u#ber of Res!ondents ercentage

7conalds 0' ---- percent

Burger ing -- ++ percent4ub)a, +@ &@-- percent

izza hut -> +0-- percent

*y asking this %uestion it "as found that 0' respondent’s thoughts that 9c!onalds has better

promotional schemes and 0' respondents supported it "ith a total percentage of ----

Furthermore$ +0--J "as gained by #izza ;ut "ith -> respondents *urger king on the other

hand "as preferred by -- respondents "hich formed a total percentage of ++J 7ub"ay on

the other hand "as the least preferred brand for the promotional schemes among all "ith +@

respondents and &@--J

46



Monal&s (urer "n 'ubay *"a u#0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

Competitors

Findings: 9c!onalds is the brand "ith KFC needs to compete in terms of sales

promotions

A total of thirteen %uestions "ere formed "hich reflected the different sides of the brand

KFC and the aspects related to the promotional strategies The promotional schemes have

an immense impact on the sales of any of the organization *y conducting the

%uestionnaire the various aspects of the sales promotion concerning KFC "ere analysed

(t "as found that the customers of the brand KFC are very price sensitive and the offers

such as one on one free attract a lot of customers very organization "hich competes

"ith KFC tries to offer the best to the customers and attract them because of "hich the

evaluation of the dimensions preferred by the customers is very essential so as the best

promotional strategies can be formed by the KFC The %uestionnaire even proved to be

the best tool for finding the ans"ers to the desired %uestions by "hich the sales and the

profitability of the organization can be boosted up to an incredible amount in a short

period of time

47



&.0 Conclusion Reco##endations (i#itations

&.1 Conclusion of the Research

The previous chapter of data analysis helped immensely in developing an understanding

bet"een the sales promotional strategies and the increase in the sales of KFC 2hen a

promotional strategy is applied not only the number of customers is increased but even

the %uantity of purchase even gets a boost *y the study the comparison of the spending

of the customers "ere calculated "hich "ere before and after the application of the

promotional strategies and it "as found that the sales increased in a considerable amount

after the sales promotional strategies DChandon$ 2ansink$ B 1aurent$ +'''E Also the

customers do inform their friends$ relatives and peer groups about the on6going sales

promotion schemes "hich adds up to sales to a great etent (t "as found that to increase

the sales the customers must be provided "ith the best promotional tools "hich make

them realise that they are getting a lot of benefits Also it "as observed that the

competition in the market of fast food is immense and to succeed the company must

come up "ith different and attractive strategies (t is the youths "ho relate a lot to KFC

and prefer spending the money on fast food 2ith it "as even found that many of the

customers prefer to purchase the products "hen the products are priced veryeconomically and the %uantity is more Also$ the spending above &0 pounds over the

food products "as found to be the least (n order to keep "ith the demands of the

customers and compete in the sector of fast food it is a must for the brand KFC to offer

ne" and innovative promotional schemes The company even has the option of giving

rebates to the customers rather than providing discounts as the customers "ill be more

delighted "hen they are given various rebates The main findings by conducting the

research are as follo"s:

• The customers are very sensitive to the price and the %uantity of food provided at

KFC

• 2hen the promotional strategies are implemented the sales gets a boost

automatically and the number of customers visiting KFC even increases

• 2hen the customers are regularly given different offers than they tend to visit the

store more often

• The most desired offer by "hich the customers are tempted to make purchase is

one on one free and coupons

48



• The customers "hen given cash discounts are more tempted to make purchase

• The completion in the fast food market is increasing at a great level because of

"hich it is essential for the organization to innovate ne" strategies "hich are

acceptable by the customers and are stimulated to make purchase The net part

of the research report "ill emphasize on practical recommendations "hich "ill

enhance the sales and "ill aid in development of effective promotional strategies

for KFC

&.2 Reco##endation for 5C

The basic reason for "hich any organization "orks is the increase in the profits or return

on investments 7ame is the case "ith KFC as the organization "ants its customers to be

loyal to the brand and make repeated purchase ven the effective of positive "ord of mouth by the customers "ill enhance the sales to a particular etent The organization

must conduct trade off analysis at every single restaurant "ithin a limited period of time

7tep &6 (dentification of the customers "ho are more enticed by the discountsG this can be

done by using the 9(7 data$ "ithin the back end office of the company by analysing the

purchase behaviour of certain customers (t "as found that the customers "ere attracted

the most "ith the offers such as one on one free and free coupon Therefore$ "hile

making purchase the customers must be given the discount coupons for the net visit

The level of discounts must be based on the amount spent on the current visit D*lattberg$

B =eslin$ &@@'E ven the customers "ho visit the restaurant fre%uently and are loyal to

the brand must be provided "ith higher discounts "hich "ill encourage regular sales

ven the customers "ho are highly price sensitive must be recognized and should be

given various offers at different times The customers can even be provided "ith the

loyalty rebate "hich can be redeemed any time the customer’s desire 2ith it on the

purchase of more than &+ #ounds a free choice of shake or cold dink can be given to the

customers To avoid confusions concerning the discounts the policies must be displayed

in the restaurant for the customers 7trategies of fe" of its competitors "ere considered

to be better by the customers and to overcome this brand KFC has a chance to develop

strategic alliances "ith the suppliers to get a competitive edge over the others

49



&.3 (i#itations of the Research 4tud,

According to 7tan"orth$ D&@@0E$ there are various limitations of the research study and

the research "as made in lieu "ith these limitations ,ne of the biggest limitation lies

"ith the %uestionnaire as all the respondents might not ans"er all the %uestions of asked

in the %uestionnaire Also$ the respondent might lose patience "hile ans"ering the

%uestions because of "hich gathering the needful and the correct information "on’t be

possible Also$ for the propose of avoiding any confusions the customers "ere asked

about different personal details such as mobile numbers$ e mails and spending "hile

dining at KFC Fe" of the respondents sho"ed a negative attitude to"ards such

%uestions Also$ the spending at a restaurant is the matter of self6esteem and status of a

person because of "hich the customers might give false and misleading information

"hich "ill dra" "eird results Time limit "as yet another limitation of the research

study as the research took place in a very short period of time$ during a festive season the

sales of the restaurant even observe an immense change and rapid sales Also$ the

research is /ust limited to the aspects of sales promotion "hereas the sales are dependent

on numerous other aspects such as location of the restaurants$ friendliness of the

employees$ availability of the menu and some other factors The presence of these

limitations made the study really precise and gave an ample amount of scope for the

future study

50



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A##=!(C7 A:

84IO;;AIR8

;A78

7OBI(8

53





;7B8R

87AI(

uestions asked/

2hat is your gender3

• 9ale

• Female

2hat is your age3

• *elo" &4

• &46+0

• +06-0

• -46.0

• .4600

;ave you visited KFC before3

• es

• =o

;o" fre%uently do you prefer to visit KFC3

• very - days

• (n a "eek

• very &0 days

• =ot sure

!o you pay heed to the promotional schemes’ of KFC and place order

accordingly3

• es

• =o

;o" much do you spend at KFC at once3D in #oundsE

• *elo" 0

• 06&'

• &'6&0

• &0 and above

The last time you visited KFC did you spend the same amount of money or less3

• *elo" 0

• 06&'

• &'6&0

• &0 and above

;o" do you perceive the promotional offer of the band KFC3

An analysis of the use of sales promotion in organization’s marketing.docx

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