[Sem-10]-Marketing strategies at KFC final report-Ameena Osman

8/7/2019 [Sem-10]-Marketing strategies at KFC final report-Ameena Osman

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A Final Report on

Marketing Strategies

In

Kentucky Fried Chicken

SUBMITTED TO:

FACULTY GUIDE: Mr. Maula Ali

Faculty guide

SUBMITTED BY: Ameena Osman

6NI14054

INC HYDERABAD


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A Report on Final Evaluation

SUBMITTED TO:


Faculty guide

SUBMITTED BY: Ameena Osman

6NI14054

KFC India


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ACKNOWLEDGEMENT

I express my thanks to all Marketing managers under whose able

guidance and direction, I was able to give shape to my training.

Their constant review and excellent suggestion throughout the

project are highly commendable.

I am thankful to the faculty guide Mr. Maula Ali who has been a

constant source of guidance to me.

Submitted by Ameena Osman

Submitted to Mr. Maula Ali


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INTRODUCTION

NAME: AMEENA OSMAN

ENROLLMENT NUMBER: 6NI14054

COMPANY NAME: KFC India


REPORT TYPE: Final Report

Signature of student,

Ameena Osman


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CONTENTS

INTRODUCTION

GOALS OF KFC

KFC HISTORY

KFC INDIA

VALUES OF KFC

PHILOSOPHY OF KFC

PORTERS FIVE FORCE ANALYSIS

PROMOTIONS

CURRENT TARGET MARKET

MARKET COVERAGE STRATEGIES

CURRENT SALES ANALYSIS

SUMMARY ON PRESENT SITUATION

MARKETING STRATEGIES O KFC

PACKAGING


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BRANDING

CONCLUSION

INTRODUCTION

KFC Corporation, based in Louisville, Kentucky, is the worldsmost popular chicken restaurant chain, specializing in OriginalRecipe , Extra Crispy TM, and Colonels Crispy Strips chickenwith home style sides and five new freshly made sandwiches.Every day, nearly eight million customers are served around theworld. KFCs menu everywhere includes Original Recipechickenmade with the same great taste Colonel Harland Sanders

created more than a half-century ago. Customers around the globealso enjoy more than 300 other productsfrom a ChunkyChicken Pot Pie in the United States to a salmon sandwich inJapan.

KFC continues reaching out to customers with home delivery inmore than300 restaurants in the United States and several other

countries. And in quite a few U.S. cities, KFC is teaming up withother restaurants, Taco Bell and Pizza Hut, selling nearly fiftyyears ago; Colonel Sanders invented what is now called homemeal replacement selling complete meals to harried, time-strapped families. He called it, Sunday Dinner, Seven Days aWeek. Today, the Colonels spirit and heritage are reflected in


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KFCs brand identity the logo features Colonel Harland Sanders,one of the best-recognized icons in the world

KFC specialized in chicken and they says,No bodys cooking like KFC today and we arethe chicken expertsThere is no competitor for spicy chicken which ismade by KFC

Introducing New Product

KFC

Pricing Issues

PRICING POLICY FOR PRODUCT OF TWISTER


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Manufacturing costRS. 100/-5% marketing cost(PER UNIT)RS. 5/-

Total costRS.105/-15% G.S.T +15% RETAIL MARGINRS.25/-Total retail PriceRS.140/-PRICING STRATEGY FOR DEAL 6

Manufacturing costRS. 140/-5% marketing cost(PER UNIT)RS. 25/-Total costRS.165/-

15% G.S.T +15% RETAIL MARGINRS.55/-Total retail PriceRS.220/-

MISSION STATEMENT

To be the leader in western s tyle quick servicerestaurants through fr iendly service, good quali tfood and c lean a tmosphere

GOALS OF KFC

Build an organization dedicated to excellence.


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Consistently deliver superior quality and value in our productsand services. Maintain a commitment to innovation for continuousimprovement and grow, striving always to be the leader in the

market place changes. Generate consistently superior financial returns and benefitsourowner and employees.

To establish in India our position as leading WQSR (WesternQuick Service Restaurant) chain, serving good value.

Innovative chicken-based products. Consistently, providing apleasant dining experience, with fast friendly, in a clean andconvenient location. At all times we must be dedicated toproviding excellent and delighting customers.

KFC HISTORY

KFC is an internationally renowned fast food industry in theworld. They have the main ambition to increase & maintainthe quality in fast food industry. Their aim is to capture the fastfood market. Basically they want to provide their products toanyone that is

why they expanding their branches in all over the world. Theywant to increase their profit through giving maximum satisfaction& other better facilities to people that they want. Now aftercatching such a marvelous position in the International Market,KFC is introducing a new item Boneless Fried Chicken, witheven more attractive and charming taste.


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Company overview:

Colonel Harland sanders, born September 9, 1890, actively beganfranchising his chicken business at the age of 65. Now, theKentucky fried chicken business he started has grown to be one ofthe largest retail foodservice systems in the world. And colonelsanders, a quick service restaurant pioneer, have become a symbolof entrepreneurial spirit. More than two billion of the colonelsfinger lickin good chicken dinners are served annually. And notjust in America. The colonels cooking is available in more then 82countries around the world.

When the colonel was six, his father died. His mother was forcedto go to work, and young Harland had to take care of his three yearold brother and baby sister. This meant doing much of the familycooking. By the age of seven, he was a master of a score ofregional dishes. Ate age 10, his first job working on a nearby farmfor $2 a month. When he was 12, his mother remarried and he lefthis home near Henryville, Ind., for a job on a farm in Greenwood,

Ind. He held a series of jobs over the next few years, first as a15-year-oldstreetcarconductor in New Albany, Ind., and then as a 16-year-old private, soldiering for six months in Cuba. After that hewas a railroad fireman, studied law by correspondence, practicedin justice of the peace court, sold insurance, operated an OhioRiver steamboat ferry, sold tires, and Operated service station.When he was 40, the colonel began cooking for hungry travelerswho stopped at his service station in Corbin, KY. He didnt have arestaurant then, but served folks on his own dining table in theliving quarters of his service station. As more people startedcoming just for food, he moved across the street to a motel andrestaurant that seated 142 people. Over the next nine year, he


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perfected his secret blend of 11 herbs and spicesand the basiccooking technique that is still used today.

KFC INDIA

KFC is the worlds No.1 Chicken QSR and has industry leadingstature across many countries like UK, Australia, South Africa,China, USA, Malaysia and many more.KFC is the largest brand of Yum Restaurants, a company that ownsother leading brands like Pizza Hut, Taco Bell, A&W and LongJohn Silver. Renowned worldwide for its finger licking goodfood, KFC offers its signature products in India too! KFC hasintroduced many offerings for its growing customer base in Indiawhile staying rooted in the taste legacy of Colonel HarlandSanders secret recipe. Its signature dishes include the crispyoutside, juicy inside Hot and Crispy Chicken, flavorful and juicy

Original Recipe chicken, the spicy, juicy & crunchy Zinger Burger,Toasted Twister, Chicken Bucket and a host of beverages anddesserts. For the vegetarians in India, KFC also has great tastingvegetarian offerings that include the Veggie Burger, VeggieSnacker and Veg Rice meals. In India, KFC is growing rapidly andtoday has presence in 11 cities with close to 50 restaurants.

VALUES OF KFC

Focus all our resources to our restaurants operation becausethat is where we serve our customers. Reward and respect the contributions of each individual atKFC.


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Expand and update training with time and be the best we can beand more. Be open, honest and direct in our dealings with one and other.

Commit ourselves to the highest standard to the personal andprofessional integrity at all times. Encourage new and innovative ideas because these are the keyto our competitive growth. Reward result and not simple efforts. Dedicate ourselves to continuous growth in sales, profit andsize of organization.

Work as a team

PHILOSOPHY OF KFC

The CHAMPS Program

Champs stands for our belief that the most important thing each of

us

can do is to focus on the customer. It stands for our commitment to

provide the best food and best experience for the best value.


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CHAMPS stand for the six universal areas of customer expectation

common to all cultures and all restaurants concepts.THE CHAMPS

These are:CleanlinessHospitalityAccuracyMaintenance of Facilities

Product QualitySpeed of Service

CHAMPS is the philosophy to ensure that the

customer has the consistent quality experience in every restaurant,

everyday, on every occasions and you will be playing role in

delivering CHAMPS to our customers.

Situational Analysis

Current ProductsKentucky fried chicken

Zinger burger Krushers Game Box Twister Box master Chicken Bucket


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Hot wings Fries Corn on the cob Zing Kong

Snacker(chicken & veggie) Veggie Feast Soft Drink Coleslaw Chicken Thali Veg Finger Snack Box Sundae Soft Twirl Brownie Sundae

PORTERS FIVE FORCE ANALYSIS

EntryFor the current Indian market for fast food, it is not difficult for afast food restaurant to enter the market. However, it would beextremely difficult to take over already running major fast foodchains' dominancy in India or even make a significant amount ofprofit. While there are enough people in urban India for anyrestaurant to survive, KFC holds the first-mover advantage into the

'non-veg food specialty food segment' that gives them freereputation. Customers, especially children who are used to going toKFC as a treat or reward from their parents or grandparents, arenot going to want to go to other restaurants theyve never heard of.The brand name is already established. Also, there is already a


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large variety in the numerous western-style dining places in India,such asMcDonalds, Pizza Hut, Domino's and Subway, and any new fast-food entrants would

just be presenting something very similar to whats already there.While small Neighborhood restaurants generally have low barriersto entry, these are the barriers toentry for similar restaurant businesses to enter the fast-food chainmarket.Buyer/Supplier Bargaining Power

The customers of KFC, especially as individual buyers, havealmost no bargaining power because if only one customer threatensto no longer eat at KFC, the store is not going to lower its pricebecause the cost of losing one customer is not very great. Thesuppliers, like the buyers, have very little bargaining power.In terms of food, KFC, upon its move into India, urged many of itsU.S. suppliers to also extend branches into India.KFC also began

helping local suppliers by giving them technological support toimprove their products. This is a brilliant strategy because thesupplies that KFC would otherwise need to import from theU.S. can now be obtained domestically, and if the U.S. suppliersdecide to raise their prices, KFC can easily switch to the localsuppliers. This gives us a brilliant strategy. With this strategy, KFCcreated competition among its suppliers, lowering the supplier

bargaining power. In terms of human resources, labor cost isextremely low because the supply of non-skilled workers greatexceeds the demand for them. With so little buyer and supplierbargaining powers, KFC is able to have a very tight control over itsprices and expenditures.


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Substitutes and Complements

As mentioned above, there are a few major competitors in the fast-food industryin India for KFC, namely McDonalds, Pizza Hut, Domino's andSubway. The substitute products, in this case, would be burgers,pizza, and sandwiches. Though they are competitors, their primaryproducts differ greatly from each other, in that they sell, chicken,burgers and fries, pizzas, and sandwiches, respectively. TraditionalIndian dining, home-cooked meals, and grocery stores with ready-to-eat foods are also substitutes, as families could choose any one

of these over fast food for a meal. These substitutes are definitelyconsidered healthy as compared to the fast food chains. Even foodsfrom street vendors count as substitute goods.While other fast foods serve as substitute to KFC, they can alsoserve as complements for fast foods as a whole. If the general priceof fast foods goes up, KFCs price rises as well, and the same canbe said of the quantity sold of these products, which make them

complements to each other.KFC also sets up stores located nearpopular tourist attractions, so tickets to these tourist spots are alsocomplementary goods because the more people tour theseattractions, the more customers KFC will get.

Rivalry

Unlike what one would expect, KFC has little rivalry with similarfast-food chains in India. The primary reason is that their coreproducts are different, as in they sell different kinds of fast foodswith very different tastes and styles. For example, if KFC raised itsprice for chicken by a small amount, Indian chicken lovers whomay not be as accepting to pizzas (many Indian people strongly


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dislike the taste of cheese) are not going to switch to Pizza Hut justbecause the price for KFC increased. In addition to that, theserestaurants have such different target customers that the fluctuationof price for one restaurant is not going to affect the others. For

example, a full meal at KFC ranges about Rs. 100, whereas a fullmeal at Pizza Hut can cost over Rs. 300.The drastic difference inprice assures no price competition between these restaurants.

PROMOTIONS

In India KFC not advertise there products too much because people

KFC due to its reputation in other countries. They promote theirproducts through special packages. They promote there productsthrough bill board, pamphlets and through other promotionstrategies

CURRENT TARGET MARKET

Segmentation

KFC has divided the market of India into distinct groups ofcustomers with different demands, tastes and behavior who requireseparate products ormarketing mix.


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In India the niche marketing is being used for particular classes ofpeople.They have made segments of the market on the following bases. Demographical

Behavior GeographicalBy using these three bases they segmented the market as under.

DEMOGRAPHICAL BASIS

In demographics their first segment is consisted of the incomefactor i.e.high income, average income and low income.

BEHAVIOR

In behavioral aspect they segmented the market on the basis ofquality, tasteand price. Following are the different possible segments in this

regard.

Taste conscious

Quality conscious

Class conscious

Combination of price and quality

GEOGRAPHICAL BASIS


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On the basis of the geographical factor we have divided our marketin threemain segments. Urban areas

Sub urban areas

Profile criteria:

1.Gender: Kfc Is For Each Gender Both Male And Female.

2.Income: Everyone Can Use Kfc service Upper & Middle Class .

3.Age: Age Limitation For Using This Product Above 15

4.Occupation: By Profession Also Everyone Can Use This

Product Means BusinessmanStudent Workers And Other Peoples.

5.Education: It Has No Need More Education That Why The

Person Who Know SomethingCan Easily Enjoy With This

Product.

6.Family Life Cycle: Kfc Is Suitable In Every Stage Of Life Like

Single Married Couple AndAlso Those Who Have Children Can

Use This Product.

7.Lifestyle: This Product is Used In Every Level Of Social Class

Like Upper, Middle Class.

8.Attitude : When The Customers Once Buy This Product After

That They Can Use TheProduct Continuously.

9.Purchasing Decision: Often Kfc Changes The PurchasingDecision Of CustomersBecause Of Its Good Attributes.

10.Geographic Region: Geographically Kfc Is Used In Every Part

Of The Country As WellAs All Over The World.

Product Positioning


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Customer Perceive This Product As A Unique Product that Other

Are Not Giving .

Attitudes

The Attitudes Of The Public Is Very Good People Like Our This

New Product Like Others.

Purchasing Process:

Many People Come From Home To Eat This , And Some Make

Impulse Decision As They Saw It .

MARKET COVERAGE STRATEGY

KFC will be using differentiated market coverage strategy. Itmeans that differentmarketing mix will be used for different age groups.

TARGET MARKET FOR FAST FOOD

After evaluation of various segments, KFC has decided to targetthe market of Urban and Sub-urban Areas of Pakistan.Product usage

People are educated and they want variety in their diet. Normally people of rural areas dont take fast food. On theother hand people of

urban areas take fast food. Income of the people of urban areas is normally high and theycan afford topurchase such products, which are slightly higher in price ascompared toprevailing prices of local food in the market.


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People of Urban Areas are more quality conscious than thepeople of Rural Areas. In Urban Area there lived people from every walk of life andprofit generation is

easier than in Rural Areas.

Population density is higher in Urban Areas as compared toRural Areas, so thenumber of customers are more in Urban Areas.

Competitive analysis

CompetitorsYou cannot enjoy the business without competitors. Noorganization can afford to ignore there competitors. It is veryimportant for a marketing managers to monitor the activities ofthere competitors, what they are doing? KFC adopted such sort ofstrategy that there is no competitor for spicy chicken, which ismade by KFC.

KFC beats its competitors through the revising marketing strategyat every movement but the main competitor of KFC are McDonald.

COMPETITORS

Because the fast food market in India is highly competitive, KFC

faces a wide number of direct and indirect competitors. KFCs

main competitors are fast food chains such as McDonalds and

Dominos, which are already well established throughout India.


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McDonaldss in particular is a direct competitor, as they have

already successfully introduced their Salads plus line

(http://www.theage.co.in), which directly targets healthy food

conscious Indians. But, there are a number of other competitors

that is also focusing on chicken types products. All this

competition makes it quite difficult for KFC to maintain or even

broaden their customer base. However, with the introduction of a

new and healthy product range, KFC can differentiate itself from

most competitors and will gain a competitive advantage.

CUSTOMERS

KFCs customer market consists solely of the consumer market

.KFCs products are bought by individuals (males, females,

singles, and families).Therefore, the product range KFC offer

should appeal to as many people within this consumer market as

possible, to ensure that the maximum amount of products can be

sold. The characteristics of these individuals and a segmentation of

them are discussed later in this report.

CURRENT SALES ANALYSIS

Market Share

KFC has a very long history and has the most recognize able brandin chicken with over 50% of the market share. It becomes difficultfor the companies like Sub way, Mc Donalds, Chicken planet,


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Dixie or those who may want to enter in the market of fast foodrestaurants.Due to with over 50% of the market share in fast food industryKFC has recognition around the world and has been globally

positioned for many years in India and to capture the market sharein India adopts champs philosophy

Environmental factors and opportunities

Political :

The operations of KFC are affected by the government policies onthe regulations of fast food operation. Currently government are

controlling the marketing of fast food restaurant because of healthconcern such as cardiovascular and cholesterol issue and obesityamong the young and children in the country. Governments alsocontrol the license given for open the fast food restaurant and otherbusiness regulation need to follow such as for a franchise business.Good relationship with government in giving mutual benefits suchas employment and tax is a must for the company to succeed in

any foreign market.Economic:

Though for last 1 year their was economic slowdown all across theglobe but the sales of KFC and other fast food chains did not slowdown to that extent that of other sectors in. The GDP (PurchasingPower Parity) is estimated at 2.965 trillion U.S. dollars in the year2010. The GDP- per Capita (PPP) was 2700 U.S. dollars asestimated in 2008. The GDP- real growth rate in 2007 was 8.7%.India has the third highest GDP in terms of purchasing powerparity just ahead Japan and behind U.S. and China. Foreign directinvestment rose in the fiscal year ended March 31 2007 to about$16 billion from just $5.5 billion a year earlier. There is a


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continuous growth in per capita income; Indias per capita incomeis expected to reach 1000 dollars by the end of 2007-08 from 797dollars in 2006-07. This will lead to higher buying power in theHands of the Indian consumers. So taking into considerations the

economic factors of India KFC is safe. The only danger toit will be if there is a terrorist attack in India and the victim is KFC.

Socio cultural:

India is the second most populous nation in the world with anapproximate population of over 1.1billion people. This populationis divided in the following age structure: 0-14 years 31.8%, 15-

64 years 63.1% and 65 years and above 5.1%.There has also been a continuous increase in the consumption offast food in India. The social trend toward fast good consumptionis changing and India has seen an increase of 90% fast foodconsumption from the year 2002-2007. This increase is far greaterthan the increase in the BRIC nations of Brazil (20 per cent),Russia (50 per cent) and China (almost 60 per cent).

Thus this shows a positive trend for fast food industries in India.

Technological:

The Indian fast food Industry is heating up with a lot of foreignplayers entering the Indian market. The technological knowhowand expertise will also enter the Indian market with an increase incompetition. With the lower rates and increase technology the fastfood counters are attracting youth by giving them attractive deals.For e.g. KFC and Dominos pizza. For a fast food restaurant,technology does not give a very high impact on the company and itis not a significant macro environment variables. HoweverKFC should be looking to competitors innovation and improve


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itself in term of integrating technology in managing its operation.For example in inventory system, supply chain managementsystem to manage its supply, easy payment and ordering systemsfor its customers and wireless internet technology. Implementation

of technology can make the management more effective and costsaving in the long term. This will also make customer happy if costsavings results in price reduction or promotional campaigndiscount which will benefits them from time to time.

Environmental:As one of world largest consumer of beef,

potatoes and chicken, KFC always had been critics for worldenvironmentalist. This is because high consumption of beefcausing the green house effect by methane gasses coming from thecows ranch. Large-scale plantation has effect theenvironment and lost of green forest opening for plantationactivities. Vegetarian environmentalist criticizes the fast-food giantfor cruelty to animals and slaughtering. In America, once KFCwant to introduce whale burger causing uproar because whales areendangered species. Before using paper packaging, KFC once hadbeen criticized for being insensitive to pollution because of usingne based packaging for its food products. Imagine millions ofpeople purchase from fast food operator and how is the impact toworld environment by throwing away those hard to recycle

packaging. Our world is getting concern on environment issue andbusiness operating here should not just care for profit, but carefulusage of world resources for sustainable development and care forenvironment safety and health for our future generation. Criticsand concern from all public or activist should be review and


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support if necessary to ensure we play our social responsibilitybetter.Legal factors:

As a certified fast food operator, there are many regulations and

proceduresthat KFC should follow. For example is the Halal certification thatbecomes a concern to Muslim consumers. KFC should protect itsintegrity and consumer confidence by ensuring all materials andprocess are as claimed or must followed.Other legal requirement that the business owner should follow asstipulated in laws are such as operating hours, businessregistration, tax requirement, labor and employment laws andquality & environment certification (such as ISO) in which theoutlet has been certified. The legal requirement is importantbecause the offenders will be fined or have their businessprohibited from operating which can be disastrous.

Boston Consultancy Group (BCG) Matrix

Question Mark:

Currently KFC have launched a new product in the market. Theyhave also tried to come into the beverages market by launching itsnew brand of shakes called KRUSHERS. As it is a fairly new


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product it comes in the category of the Question Mark in the BCGMatrix. It has a low market share thus brings low revenue. KFC isadvertising a lot to popularize this product so there is a lot ofexpenditure on it. This product is individually not bringing any

profits and is a cash drain for the company. Company may decideto completely remove this product from the market if it does not dowell soon and start bringing in revenue.DOG:

KFCs Veg Thali comes under this category. Although companyhad launched this product much earlier, it has still failed to becomea success. As KFC is known more for its non-veg food, this alsoresults in low demand for this item. It has a low market share andalthough low on expenditure (as company does not spend on itspromotion), it does not bring in much revenue as demand is low.The product is mostly CASH NEUTRAL.CASH COW:

KFCs Chicken Bucket is the most successful product of the

company. It has the highest market share amongst all the otherproducts. It has good demand in the market and brings in hugesales revenue. The development and other expenses are also lowand thus this product is a CASH SIRPLUS for the company.STAR:

The star product of the company is its crispy Boneless Chicken. Ithas a high market share and brings in high revenue. But it also has

high developmental expenditure involved. The profit therefore isgenerally not very high brought in by this product. This product isCASH NEUTRAL for the firm. The company is trying make thisproduct a cow as well, by reducing the expenditure.


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SUMMARY OF CURRENT SITUATION

SWOT analysis mean strength, weakness, opportunitiesand threats and the SWOT analysis of KFC are:

STRENGTHS Goodwill and reputation: The company certainly has earneda good name and reputation by its previous products andservices in the market. It is even more recognized in othermarkets outside India, where the company is among the leadingfast food giants. The brand is recognized and trusted in India for itsquality products, price, and customer service. It therefore has agood head start and enjoys a good chance of becoming a leader inIndian fast food industry. Employee Loyalty: Employee Loyalty is one of the majorstrengths of KFC. The turnover rate in the company is amongstthe lowest in the industry.Customer Loyalty: Despite gain by Boston Market and

Chick-fill A, KFC customer base remained loyal to the KFC brandbecause of its unique taste. KFC has continued to dominate thedinner and take out segment of the Industry.Ranks highest among all chicken restaurant chains orits convenience and menu variety. It generates $1B revenue eachyear.

WEAKNESSESKFC was losing market share as other Chicken chainincreased sales at a faster rate.

KFC share of Chicken Segment sales fell from 71percent1999 , to less than 56 percent in 2009 , a 10 -years dropof 15 percent.

Huge competition in this segment.


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India is still mostly a vegetarian dominated culturedsociety. South India is especially very much so. This may reducethe market share of the company.KFC has not yet invested much on R&D, and innovating new

products for Indian Markets. This may lead to failure of theirproducts as they are not in line with the Indian mind set, peoplestaste and preferences and their likes and dislikes. This may provefatal for thecompany.OPPURTUNITIES

New Markets: Globalization has opened doors for newmarkets for the company. As the developed markets are mostlysaturated, the developing countries like India and China promises agood market and generation of demand in the future. With morethan 70% of the markets in India being unexplored and unorganized, KFC has a good scope of expanding its operations inthe country. Cross Culture: Generally there is a good acceptance of

American culture of fast food in India. People are opening up tofast foods more regularly in their daily lives and not just keeping ita once in a month affair. Thus Indian mindset is fast changing. Large Youth population: India has a very large share ofyouth population a compared to other countries. More than 60%of the population is under the age of 30yrs. As the younggeneration are more open to fast foods and demand it more, this is

a good news for the company.New variety: Company can also come up with new variety in themenu like Pizzas, garlic breads to attract more customers.

THREATS


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Competition: Competitor companies like McDonalds arefast catching up with the market. McDonalds with sales of morethan 19 billion in 1999, accounted for 15 percent of the sales of thenations top 100 restaurant chains.Organizations like PETA People for Ethnic Treatment forAnimals have given a bad name to the company which may provedisastrous to the image of the firm. Currently, KFC is undermassive attacks from animal organizations, questioning the wayKFCs suppliers are threatening the chicken, before they gotslaughtered. Anti-KFC campaigns, such as the one from PETA areaffecting KFCs brand image in a negative way and result in directdollar losses, as less people are consuming KFC chicken

Saturated US Market: Now KFC cannot rely on just itshome market to generate sales. As the US markets are alreadysaturated and leave no or little scope for growth, companynecessarily needs to look at offshore foreign markets to generatesales and keep up the profits.

MARKETING STRATEGIES OF KFC

There are different strategies adopted by KFC for different events.They market their products on different events and in differentactivities as they are helping SOS village.According to KFC, kids become the future permanents customersand we know very well that without any marketing strategy no


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marketing program and no product is successful because wedepend upon customers, customer not depend on us.KFC is following Niche Marketing and Societal Marketingtechniques.

KFC possess a western culture because some of the Indianpeople are also following that culture. KFC are moving from Divisional Level to the District levelby opening branches KFC also offer free home delivery. KFC open their outlets on reachable places. KFC menu consists of more than 30 products.KFC gives more priority to Family.

MARKETING

Since 1982, KFCs All-American salute to Mothers national cardcontest has been KFCs way of honoring moms and their familiesfor making mothers Day KFCs biggest sales day of the year. The

contestant courages children to creatively express their feelingsfor their moms by making a homemade card and give them chanceto compete for more than$10,000 in cash and prizes. Educationalpackets, including language, history and art exercises highlightingMothers Day, were sent to thousands of schools nationwide.There are 4 Ps of Marketing:1.PRODUCTION

2.PRICING3.PROMOTION4.PLACEMENT

Production:


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Basically the product is anything that be offered to a market forattention, acquisition, use, or consumption that might satisfy awant or need. KFC is specially dealing in the chicken products;Basically, KFC has the special raspy for chicken products that is

why, KFC known as a chicken specialist allover the glob. KFCtarget the Asia and east side because they observe that they peopleare like the chicken products, so they enter in the market due to thedemand of their chicken products. KFC product variety of productin the chicken, those products are:

1. PRODUCTS: Original recipe chicken Extra Tasty Crispy TM chicken Hot Wings TM pieces Tender Roast chicken Chunky Chicken pot pie Kentucky Nuggets Colonels Crispy Strips

Honey BBQ sandwich Original Recipe Sandwich Tender Roast Sandwich Triple Crunch Sandwich Triple Crunch Zinger Sandwich

2. BRAND:

There are three brands of the KFC:1)Taco bell2)Pizza Hut3)Long john silvers

Pricing:


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KFC during pricing their products keep the different points in themind like they adopt the cost base price strategy. Pricing of theproduct includes the Government taxes and excise duties and thenthey co meat final stage of determine the price of their products.

KFC prices of products are a bit high according to the marketsegment and it is also compatible to the stander of their products.Calculation of the price under Cost Based Pricing Strategy:Total Pounds of Chicken Served in KFC Restaurant Annually=1.914 BillionTotal KFC Chicken Pieces Sold Annually = 5.89 BillionTotal Retail Sales = $8.9 BillionSales Price of per Chicken Piece= Total Retail Sales / Chicken

= $8.9 Billion / $5.89 Billion=$1.51We assume that Fixed Cost is = $6000000000

Variable Cost= $675000000Profit Margin is Or Mark Up= $225000000(25% of Sales)Per Unit Variable Cost= $675000000 / 5890000000= $ 0.115

Unit Cost = Variable Cost + Fixed Cost / Chicken pieces Sold= 0.115 + 6000000000 / 5890000000= 0.115 + 1.02= $1.135Now suppose manufacturer wants to earn 25% mark up on sale.Themanufacturer mark up price is calculated:


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Mark Up Price = Unit Cost / (1 Desired Return on Sales)=1.135 / (1-.25)= 1.135 / 0.75= $1.51

Promotion:Promotion is one of the necessary plates in any form of business orin other words you can say that promotion is the key of success. Ifyou promote your product at the right time. KFC also known theimportance and significance of promotion so they uses the billboards the major source of advertisement and one of the mostimportant thing that they uses media especially the newspapers topromote their products. They are also creating awareness amongthe masses about their existing product range as well they tell usabout the future product.Marketing efforts to be taken by the restaurant: Paste delivery posters at petrol pumps, flats, colleges, plazas,

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

Placement:In the case of the KFC the placement of the product is not

important but the placement of the restaurant is important. Theproducts of the KFC is cooked at the sport and then served afterthat. KFC Cavalry branch opened in June 1998, in the maincommercial zone of Cavalry.


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Grounds near the Jinnah Flyover. The restaurant is a three-storybuilding including the basement (where the chicky play area islocated). It is ideally located in the center of a main commercialand residential area of Lahore. The area that KFC Cavalry caters

for is the residential and office area of Cavalry Grounds and Cant,as the main target market. Another branch the KFC opened in theLahore is in Garden Town (opposite to Barkat Market). KFC alsotarget the Faisalabad and open its branch in D ground. Now we caneasily judge that the KFC target the place for their restaurant,which is well known and is in the Porsche area where the incomelevel of the people is high then the middle class level. Because theprices of the KFC products is high with comparison to the localproducts manufacturer who are dealing in the same kind of productin which KFC is dealing but the prices of the KFC is high due tospecial taste, high quality, and due to international brand, it is theworld recognized fast food restaurant all around the world. So, forthe placing strategy, KFC chose the well income class area for

their restaurants.

PACKAGING

We are asked as many questions on our packaging as our productsby our customers. The packaging forKF C products is chosenaccording to performance against three key criteria:

Heat RetentionMoisture removalGrease absorptionThe packaging material and carton design are all adapted tomaximize performance against these three criteria.


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Recycled Paper

All our clamshells and chicken boxes contain as much recycledmaterial as it is legally allowed. By law we are required to have

virgin fiber board in any part of the packaging that is in contactwith food. Any virgin fiber comes from boardsuppliers who use pulp bought from managed forest inScandinavia. This ensures that any wood cut for paper productionis replaced with new plantings.

Environmental concerns

Over and above ensuring our packaging is supplied via recycled orrenewable resources; KFC are enthusiastically complying with thenew environmental directives on recovery and recycling ofpackaging waste.

Litter

We at KFC UKI are aware of our responsibilities to theManagement of Litter and all our packaging carries the Keep yourCountry Tidy signs.

BRANDING

This research measured and compared the brand identity of

Kentucky Fried Chicken (KFC) in India. Brand identity was

defined as the customer impressions of four different KFC identity

elements - properties, products, presentations, and publications. A


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survey of young consumers in the countries (n = 795), showed that

the respondents were more apt to eat within KFC restaurants, and

spend more time doing so, than the Americans. The Chinese also

had much more positive impressions of KFC. Brand identity

impressions were correlated with overall customer satisfaction and

with future patronage intentions for both groups. These findings

support a model where differences in cultural frames of reference

lead consumers to actively localize the brand identity of this

nominally globalized product.

CONCLUSION

It is clear from the above report that a high number of

people actually like to order from their home or workplace

rather than coming. This may be due to more convenience,

time shortage or just not willing to come and dine. Certainly

the home delivery market is huge and KFC can take well

advantage of the situation. Thus it would be in the best

interest of the company to start the service as soon as


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possible and capitalize on the opportunity. KFC expects a

rise in the orders by at least 20% by starting this service.

Therefore, to conclude we would say that KFC should

definitely have a home delivery service.

[Sem-10]-Marketing strategies at KFC final report-Ameena Osman

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