KFC Reportttttt)
KFC Reportttttt)
All praises and thanks to the Almighty ALLAH, the creator who is the one source of knowledge
and wisdom endowed to mankind.
We feel much obliged to our beloved family members for their moral support and
encouragement. Particularly, we have always been feeling our parent right behind us praying,
patronizing and enabling us to work out the era of life both spiritually and physically and whose
prayers was incessant enabling us to acquire this stay. To our course supervisor Sir Naeem
Bojhani, who invested his time and efforts to help us in our project and guided us through it.
Without his guidance we would have never been able to accomplish our task.
We are also very grateful to our well-wishers and our group members, as without their combined
efforts we would have never been able to accomplish this task.
Together, we sincerely acknowledge and thanks the people mentioned above who have brought
the success of doing this project. We are very grateful for this wonderful accomplishment.
EXECUTIVE SUMMARY
Kentucky Fried Chicken (KFC) is a Quick service restaurant spread across the world which have
positioned itself as a very tasty and freshly prepared chicken that they can eat whenever they
want at the same quality, chicken products which can be enjoyed as a family in the environment
of a social gathering. KFC emphasize at creating good memory and positive feelings towards
their products. Whenever you think of KFC you have to think of somebody. It can be your
family, friends, loved ones or somebody else, somebody to share the fun of eating and to share
the taste.
KFC creates ‘attributes’ around their product as a level of positioning. They highlight the
product functionality which is “tasty” food. KFC has a very unique recipe for their products
which is also their core competency.
The purpose of KFC is to feed the world. The brand mantra of KFC is fun, folks and tasty. The
main point of difference of KFC is Chicken. KFC brand elements are memorable, meaningful,
likable, transferable and easily adaptable across globe. KFC have strong communication with its
customers by creating creative ads and their recent marketing campaign is adding HOPE
campaign in motive to eliminate hunger. KFC have loyal customers with high repeat purchase
rate are people who prefer chicken than burgers. KFC wants to add value to the customers
throughout the week instead of coupons and offers.
The brand “KFC” have positioned from “Tasty” to “Freshly Prepared”. Being a processed food
quick service restaurant it positions itself as freshly prepared. The problem is customer’s wants
to stay healthy so, KFC can only be successful if it include Healthy feature into its positioning.
INTRODUCTION
HISTORY:
Harland Sanders, founder of the original Kentucky Fried Chicken, born in 1890, just outside
Henryville, Indiana. After a series of jobs, in the mid 1930s at the age of forty, Colonel Sanders
bought a service station, motel and cafe at Corbin, a town in Kentucky. He began serving meals
to travelers on the dining table in the living quarters of his service station because he did not
have a restaurant. It is here that Sanders began experimenting with different seasonings to flavor
his chicken which travelers loved and for which he soon became famous. He then moved across
the street to a motel and restaurant, which seated 142 people. During the next nine years he
developed his secret recipe of 11 herbs and spices and the basic cooking technique which is still
used today. Sander’s fame grew. In 1939, his establishment was first listed in Duncan Hines’
“Adventures in Good Eating”.
The first KFC franchise opened in the United States in 1952 and in Canada a year later. The first
overseas franchise was established in the United Kingdom in 1965. A large number of Caribbean
and developed Western markets entered by the early 1970s. This was followed by expansion
throughout the Middle East and developed Asian markets from the mid-1970s and into the
1980s. China was entered in 1987. Expansions were made into most of Europe and South
America in the early 1990s. The most recent area of expansion is Africa, where the company is
targeting the continent's growing middle class. Renowned worldwide for it’s finger licking good
food, KFC offers its signature products in Pakistan too!
KFC has introduced many offerings for its growing customer base in Pakistan while
staying rooted in the taste legacy of Colonel Harland. As of year end 2018, there are
23,000 KFC outlets in 119 countries and territories across the world. There are 4,563 outlets in
China, 4,491 in the United States, and 9,821 across the rest of the world.
KFC's original product is pressure fried chicken pieces, seasoned with Sanders' recipe of 11
herbs and spices. The constituents of the recipe represent a notable trade secret. Larger portions
of fried chicken are served in a cardboard "bucket," which has become a well-known feature of
the chain since it was first introduced by franchisee Pete Harman in 1957. Since the early 1990s,
KFC has expanded its menu to offer other chicken products such as chicken fillet burgers and
wraps, as well as salads and side dishes, such as French fries and coleslaw, desserts, and soft
drinks, the latter often supplied by PepsiCo. KFC is known for the slogan "finger lickin good,"
Outlets are owned by franchisees or directly by the company. KFC's core product offering is
pressure fried on-the-bone chicken pieces seasoned with the "Original Recipe". The product is
typically available in either two or three piece individual servings, or in a family size cardboard
bucket, typically holding between 6 and 16 chicken pieces. The product is hand-breaded at
individual KFC outlets with wheat flour mixed with seasoning in a two to four minute process. It
is then pressure fried for between seven and ten minutes (the timing differs between countries) in
oil at 185 degrees Celsius. Following this, the chicken is left to stand for 5 minutes in order for it
to sufficiently cool before it is placed in the warming oven. It is KFC policy to discard chicken if
it has not been sold within 90 minutes, in order to ensure freshness.
VISION
"To sell food in a fast, friendly environment that appeals to price conscious, health-minded
consumers."
Mission
“To maximize profitability, improve shareholder value and deliver sustainable growth year after
year.”
The aims and objectives of KFC are not only to sell chicken to make money and make a profit,
they are to expand as a business whether that’s to be a worldwide business or just to open up a
few more restaurants around the country to provide a better and faster service for the customer,
to beat competitors/rivals such as McDonalds, burger king, pizza hut etc.
GOALS OF KFC
VALUES OF KFC
Focus all our resources to our restaurants operation because that is where we serve our
customers.
Reward and respect the contributions of each individual at KFC.
Expand and update training with time and be the best we can be and more.
Be open, honest and direct in our dealings with one and other.
Commit ourselves to the highest standard to the personal and professional integrity at all
times.
Encourage new and innovative ideas because these are the key to our competitive growth.
Reward result and not simple efforts.
Dedicate ourselves to continuous growth in sales, profit and size of organization.
Work as a team.
Brand Element
Brand Elements, sometimes called brand identities, are those trademark able devices that serve to
identity and differentiate the brand. The main ones are brand names, URLs, logos, symbols,
characters, slogans, jingles, packages and signage.
Brand Name
The brand name of KFC is “Kentucky Fried Chicken”. The name "Kentucky" is of Native
American origin, Where Kentucky is a state located in the east south-central region of the United
States. At age 40, Harland Sanders was running a service station in Kentucky, where he would
also feed hungry travelers. Sanders eventually moved his operation to a restaurant across the
street, and featured a fried chicken so notable that he was named a Kentucky colonel. Since
Sanders sold fried chicken from Kentucky, while his fried chicken sold globally it was called as
Kentucky Fried Chicken
Brand Awareness
At early years KFC was called as Kentucky fried chicken. Due to globalization the name got
shifted to “KFC” being easy to adapt to other countries culture and easy to pronounce by people
across globe. The Brand name “KFC” is simple and easy to pronounce or spell, familiar and
meaningful and different, distinctive which improves brand awareness. The short name “KFC”
often facilitates recall because they are easy to encode and store in memory.
Brand Association
Brand Awareness deals with Brand Recognition and Recall ability. KFC is easy to recognize and
recall. The brand “KFC” is recalled by its product category called Quick Service Restaurants and
recognized by the brand elements.
URLs
URLs (Uniform Resource Locators) specify locations of pages on the web and are also
commonly referred to as domain names. KFC have its own specific URL https://www.kfc.com/
(World) and https://online.kfc.co.in/ (India).
Logos
Logos have a long history as a means to indicate origin, ownership or association. “KFC” logo
represents the founder “Harlan Sanders” and his secret 11 spices. The logo of KFC has evolved
over the years and it communicates to customers the realness of Colonel Sanders and the fact that
he was a chef.
Characters
The Character of the KFC is the founder Harland Sanders. Usually brand characters are
introduced through advertising and can play a central role in ad campaigns and package designs.
Slogans
Slogans are short phrases that communicate descriptive or persuasive information about the
brand. The brand “KFC” communicates to the customers in a single line about its brand as
"Finger Lickin' Good".
Meaningful
The brand “KFC” is Descriptive. It conveys the general information about the function of the
product or service offered by KFC and specific information about particular attributes and
benefits of the KFC.
Likable
The brand “KFC” puts in fun and interesting in youth through its packaging, 5 in 1 box, and
Charger box. The brand KFC has a rich visual imagery and it is aesthetically pleasing. A
memorable, meaningful and likeable set of brand elements of “KFC” offers many advantages to
the brand.
Transferable
The brand “KFC” is easily transferable within and across product category and adds the brand
equity for new products, or in new markets. It is also transferable across geographic boundaries
and culture by providing transnational products to respective countries.
Adaptable
The brand “KFC” is adaptable over the period of time with the changes in consumer values and
opinion. Since the brand elements of KFC are more adaptable and flexible, it is easy to update.
The logo of KFC is given a new design to make them appear modern and relevant.
Protectable
The "Finger Lickin' Good" slogan was trademarked by KFC and so it is legally protected. The
brand “KFC” is legally protected internationally and formally registered with appropriate legal
bodies.
Marketing Mix
PRODUCT PRICE
Product Variation Cost Recovery Pricing
Product Differentiation Penetration Pricing
Product Innovation Price Skimming
PLACE PROMOTION
Distribution Channel Individual Communication
Direct Sales Mass Communication
Indirect Sales Brand Management
E-Commerce Corporate Identity
Product
Snacks: Popcorn Chicken, Hit Wings, Boneless chicken strips
Veggie Selection : Veg Snacker, Veg Zinger, Veg Strip with Salsa
Toasted Wraps
Burger: Veg Zinger, Chicken Zinger, Tower Zinger
Box Meal
Chicken Delight : Fiery Grilled, Hot and Crispy, Original Recipe
Bucket Chicken
Signature sides: Corn on the cob, Coleslaw, Fries
Krusher: Frappe, Iced Mochaccino, Iced Kappucino
Desserts: Soft wirl, Choamor, Brownie Sundae
Price
Market skimming: KFC globally enters the market using market skimming. Their products
are priced high and target the middle to upper class people. Gradually they trickle down the
prices focusing on the middle to lower class people to penetrate both sides of the market.
Cost Based: KFC price their product keeping different points in view. They adopt the cost
base price strategy. Pricing of the product includes the govt. tax and excise duty and then comes
the final stage of determine the price of their product. The products are bit high priced according
the market segment and it is also comparable to the standard of their product. In the cost based
method we include the variable and fixed cost.
Place
Placement of outlets: Due to KFC placing itself close to schools, colleges, cinemas and markets
which are mostly populated by the young and those who are in a hurry, KFC enjoys a large
number of sales every day. KFC works on the flow of good operation techniques. Good
Operating Manager leads to Good Team Selection to Good Services to Good Targets to Good
Revenues through the following internal strategies
Training
Incentive Based Targets
Recognition For Good Work
Performance Based Bonus
Employee Benefits To Keep Them Motivated
Promotion
KFC always believes in keeping its outlet in premium areas as well as in malls and shopping
complexes. These KFC outlets can also carry out delivery for online orders of KFC. As a result,
KFC covers both online and offline deliveries.
Free home Delivery strategy - They provide free home delivery to offices & homes
(selected countries)
Accessibility - Resulting in several outlets to cater to the needs of people in & around the
city.
Hectic lifestyle - Due to the hectic lifestyle of office goings individuals the fast food
concept saves time of preparing food and gives the customer a full meal quickly.
Economically convenient - The pricing appeals to the many classes of a society.
Hectic lifestyle of individuals - giving them more time at work and less stress about
waiting for food.
Commercialization - Commercialization of urban and sub-urban markets leading tomore
mid-sector people that find high-end eating joints very expensive.
Quality conscious people in urban areas are more conscious about the quality of foodthan
rural areas.
Urban areas are more populated therefore they help with attracting higher revenues.
Promotion is the method used to inform and educate the chosen target audience about the
organization and its products. Using all the resources of promotion, like Advertising, Sales,
Promotion, Public Relations, Events, Coupons, Discounts and Bundled packages. At KFC,
Promotion is the main tool to bring all chicken lovers attention towards its delicious one-of-a-
kind product, the Fried Chicken.
Advertising: The logo of the smiling Colonel is probably one of the most recognized faces in the
world and instantly brings the image of fried chicken to one’s mind. KFC and its logo, ‘finger
lickin good´, is a shown on billboards, flyers regularly. The concept of showing a normal
customer deeply involved in consume his piece of chicken usually turns on the drool factory in
everybody’s mouth and makes them rush to the nearest KFC. In India, where chicken lovers are
plenty abound these ads featuring normal people connect instantly and create a rush at their
outlets. Using the following methods KFC spreads its message of finger licking good chicken.
Using Reminder advertisements KFC stimulates repeat purchases of its products. The company
anthem ‘finger linkin good´ is just a wakes up call to the consumer to remind them how good
they felt the last time they ate KFC chicken.
Sales Promotion: All KFC outlets offer its customers with various forms of incentives to buy its
Chicken. Using coupons that one can acquire after spending a particular amount over a period of
fixed time, customers can enjoy the benefits of free meals or free add-ons. Additionally they
provide meal vouchers and exciting offers in their print ads, which the customer must cut and
bring along.
Salience:
1. Product Category: Chicken Quick Service Restaurant
2. Customers recognize KFC brand by their brand elements
3. Customers recall KFC brand as Chicken Quick Service Restaurant
4. Need satisfied is food
Performance:
Service
Quick Service Restaurants
Self Service
Imagery
1. User Profile: Kids and Youngsters
2. User Situation: hungry and want to eat chicken
3. Personality: Fun of eating and to share the taste with friends
Judgements:
1. Quality: Good Quality
2. Consideration: Better Service
3. Superiority: Convenient
Feelings
1. Convenient
2. Cozy
3. Prestigious by eating western food
Resonance
1. Loyalty
Loyal customers with high repeat purchase rate are the people who prefer crispy chicken
than burgers
Customers have both Attitudinal and behavioral Loyalty
2. Attachment
Customers love the brand KFC
Customers feel the brand KFC is special to them
Whenever customers thinks of Chicken They remember KFC
3. Community
KFC have social media community like Facebook and twitter
4. Engagement
Customers who like KFC follows the brand closely
Customers like to visit KFC website
BRAND COMPETITIVE
You cannot enjoy the business without competitors. No organization can afford to ignore their
competitors. It is very important for marketing managers to monitor the activities of their
competitors, what they are doing? KFC adopted such sort of strategy that there is no competitor
for crispy chicken, which is made by KFC. Always KFC beats its competitors through the
revising marketing strategy at every movement but the main competitor of KFC is McDonald’s.
McDonald’s is the direct competitor for KFC since because they also offer burger with
chicken but at low cost. Subway in the way of offering subs with chicken becomes
competitor for KFC.
Pizza hut and Dominos also becomes competitor for KFC. Even recently Dominos had
come up with burger pizza which is the threat for KFC.
BRAND ASSOCIATION / BRAND IMAGE
Perceptual Map among customers states it as Junk or fun food for both kids and
adult.
Perceptual Map also states KFC as high value proposition product for high price.
Social media
1. KFC Facebook Page
2. KFC Youtube Page
3. KFC twitter page
4. KFC Instagram page
Distribution
They provide free home deliveries for some specific cities. They open theiroutlets in those places
in the cities where people can buy products easily andwithout difficulties. They also introduce
mobile units for delivery of their products. Major cities covered in Pakistan
Lahore
Islamabad
Rawalpindi
Faisalabad
Sialkot
Multan
Peshawar
Karachi
Hyderabad
Gujranwala and more
Promotions
In Pakistan,they promote their products through specialpackages like Ramadan packages, mid
night package. They promote theirproducts through billboard, pamphlets and through other
promotion strategies.
Services
KFC offered free home delivery service at specific branches in specifics cities. They take at 30
min for delivery and the minimum delivery order should Rs.200.They also provided services to
celebrate the birthdays of kids at their home or in KFC restaurants. Now recently KFC also
provide services of mobile unit of KFC.
Demographical
Behavior
Geographical
BEHAVIOR
In behavioral aspect they segmented the market on the basis of quality, taste and price.
Following are the different possible segments in this regard.
Taste conscious
Quality conscious
Class conscious
Combination of price and quality
GEOGRAPHICAL BASIS
On the basis of the geographical factor they have divided their market in two mainsegments.
Urban areas
Sub urban area
Target market
After evaluation of various segments, KFC have decided to target the market of Urban and Sub-
urban Areas of Pakistan.
KFC survey
Perception of customer
There are three different perception of customer towards KFC. A customer who appreciate KFC
but won’t eat it, a customer who won’t prefer but they eat KFC and also there is a customer who
prefer KFC if they don’t have any option.
They prefer KFC among all other fast food chain running in Pakistan. When we talk about fast
food mostly customer preferred KFC or MC Donald although there is many other food chains
who provide fast food.
Trust issue
The issue they face as compare to MC Donald is consistency like their customer get similar
product in all their branches reason behind is that their product is freezer to fry so customer trust
them blindly but the customer of KFC have trust issue on them because there is no consistency in
their products the reason is that the staff of KFC in all branches prepared product by their own.
So the customer doesn’t trust them blindly until they don’t get according to their taste. So the
consistency is challenge and also it is USP for them because they provide fresh product.
Values of KFC
KFC have multiple branches all over the world so the advantage of KFC have that they localized
according to the country’s culture. They link their values to the global practices but they deliver
these values according to the culture of the country. They relate them according to the customer
need or demand. Their tagline says “Always original”. When they talk about original, they are
not talking about the product and packaging only. They have so many parameters in which they
belief on originality. According to their global marketing head KFC should have to link with
customers and their cultural values. For example, if KFC running in a culture in which
customer’s demands spicy food so KFC have to be linked with their customers according to their
needs. Their values are same globally but they explain their values as per the country’s culture.
Price justification
They provide value to justify the price of their product. They are the pioneer in value based
pricing.
Customer willingness towards your brand after launching new exciting menu
Definitely it will help to increase the pool of customers because they get variety but before they
have to do research to know about their customers taste and preferences.
Objectives of KFC
100 plus outlets and stabilize their brand by sales to accomplish coming task
Sales over night
Brand over time
Satisfaction of customer
It is difficult for them to change the perception customers especially the group of youth because
there is a multiple options for them. it required capability and hard work to change it. But it is
easy for them to satisfy those customers who don’t want any other option rather than KFC.
CONCLUSION
Kentucky Fried Chicken (KFC) is a fast food restaurant chain that specializes in fried chicken. It
is the world's second largest restaurant chain (as measured by sales) after McDonald’s.
Customers preferred KFC among most of the fast food chain because of their strong brand
image. KFC has introduced many offerings for its growing customer base in Pakistan .KFC's
original product is pressure fried chicken pieces, seasoned with Sanders' recipe of 11 herbs and
spices. The brand name of KFC is “Kentucky Fried Chicken”. The brand “KFC” is easily
recognized by its logo “Sanders” and color “Red” and it is easily recalled by its product category
of quick service restaurants. The brand “KFC” is Descriptive. It conveys the general information
about the function of the product or service offered by KFC and specific information about
particular attributes and benefits of the KFC. The brand “KFC” puts in fun and interesting in
youth through its packaging. The brand KFC has a rich visual imagery and it is aesthetically
pleasing. A memorable, meaningful and likeable set of brand elements of “KFC” offers many
advantages to the brand.
To further increase the brand image of KFC we decided to add a different and unique combo in
their menu which is consist of a chicken and cheese filled pizza burger, crispy fried chicken balls
and a chilled juice or shakes. It will add a new variety in their menu which will attract more
potential customers. According to the manager, innovation or adding variety in menu is always a
good thing for a company but KFC is restricted with chicken because of their basic objective and
customers perceived KFC as a fried chicken so it is difficult to change customer perception but
with your capability and hard work you can change it. According to her they can play with
chicken like they can offer grilled chicken and many other options in which they can add
different flavors. Their business objective is now become sales overnight and brand over time.
They always working on innovations according to their objective like they recently introduced
devil zinger burger. They have further plans to create value to customers just like mc Donald’s
offer tour to kitchen which is a very good way to tell customers about how much they relate or
value to a company.