KFC India - Relishing On Consumer Learning - CASE STUDY
KFC India - Relishing On Consumer Learning - CASE STUDY
KFC India - Relishing On Consumer Learning - CASE STUDY
“Typically, super consumers are responsible for 30 per cent of category sales, 40 per cent of category growth and 50 per cent of
category profit. They are well-informed about the category, talk a lot about it, give their opinions, are active on social media and
experiment a lot within the category.”1
Roosevelt D’Souza, Senior Vice-President, Nielsen India
“Earlier, there was a reverence for anything foreign because local products were of terrible quality, but as the market developed, the
focus started shifting from the product to the brand. Customers started patronizing a brand only if the product suited them. So the
need arose for companies to adjust their products to customers’ requirements.”2
Abraham Koshy, Professor, Indian Institute of Management, Ahmedabad (IIMA)
“There is a huge scope for consumer engagement in the online space and KFC, one of India’s most loved QSR brand and the biggest
digital brand in the category, is excited to indulge their loyal fan base with exciting engagement and content to bring them closer to
their motto — life is So Good!.”3
Dhruv Kaul, Director, Marketing, KFC India
K
FC evolved from being a road side eatery joint to be ranked second amongst the Top 10 Global
Food Brands listed in Forbes4. While KFC has been on consumer’s wish list in many countries, its
Indian story has largely been that of ‘Made in India vs Made For India’. Since its entry in 1991 and
re-entry in 2003, KFC not only learnt to re-orient and re-discover itself but also co-created several consumer
engagement initiatives with Indian consumers. While KFC learnt from its experiences, Indian consumers
learnt from KFC’s engagement initiatives. However, many wonder if the same tempo can be sustained over
a long time horizon? While India’s demographic dividend, with a median age of 28, is unquestionable, can
KFC be the preferred destination for discerning and demanding Indian consumers?
1
Viveat Susan Pinto, “Homing in on super consumers”, http://www.business-standard.com/article/management/homing-in-on-super-
consumers-115051201417_1.html, May 12th 2015 (accessed date: June 8th 2015)
2
“Made for India: Succeeding in a Market Where One Size Won’t Fit All”, http://knowledge.wharton.upenn.edu/article/made-for-india-
succeeding-in-a-market-where-one-size-wont-fit-all/, March 12th 2009 (accessed date: June 15th 2015)
3
India Infoline News Service, “KFC India bags prestigious awards”, http://www.indiainfoline.com/article/print/news-business/kfc-india-
bags-prestigious-awards-114050700133_1.html , May 7th 2014 (accessed date: June 9th 2015)
4
http://www.forbes.com/pictures/mlf45ejhgi/2-kfc-3/, (accessed date: June 9th 2015)
This Case Study was written by A. J. Swapna and Dr. Nagendra V. Chowdary, ET CASES. It is intended to be used as the basis for classroom discussion
rather than to illustrate either effective or ineffective handling of a management situation. The case study was compiled from published sources.
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CB-1-0020 | KFC India – Relishing on Consumer Learning?
Year Description
1930 Colonel Harland David Sanders (Col. Sanders) opened his first restaurant, “Sanders Court & Café”, attached to a gas station in Corbin, Kentucky
1939 • Fire destroyed the Sanders Court & Café, but it was rebuilt and reopened
• Col. Sanders began using pressure cooker to reduce the 30 minute cook time to fry chicken
1940 Col. Sanders perfected and finalized his original recipe with a mix of 11 herbs and spices, a trade secret, which gave his chicken its distinctive taste
1952 Col. Sanders franchised his recipe to other local stores. Pete Harman took the first Kentucky Fried Chicken franchise in South Salt Lake, Utah
1964 Col. Sanders sold his business to John Brown and Jack Massey
1971 The Kentucky Fried Chicken Corporation merged with Heublein, Inc.
1987 Kentucky Fried Chicken became the first Western fast food company to operate in China
1991 Due to legal reasons, Kentucky Fried Chicken changed name to KFC
1995 Entered Indian Fast Food Segment by setting up an outlet in Bangalore, but had to quit the Indian market
1997 Tricon Global Restaurants, Inc. acquired - KFC, Taco Bell and Pizza Hut
1999 KFC reentered Indian Market and operated through its Bangalore outlet
2002 Tricon Global Restaurants changed its name to Yum! Brands Inc.
2009 KFC introduced Kentucky Grilled Chicken which had low fat and low calories, for health conscious consumers who loved the flavor of KFC
5
“Yum! Brands 2014 Annual Report”, http://www.yum.com/annualreport/ (accessed date: June 15th 2015)
6
“Press Release: Yum! Brands INC. Declares Quarterly Dividend of $0.41 per Share”, http://www.yum.com/investors/news/ir_112014.asp,
November 20th 2014 (accessed date: June 4th 2015)
7
A specially-abled restaurant is one in which all the staff or employees are speech or hearing impaired.
8
Archana Sharma, “Food for thought”, http://www.financialexpress.com/article/fhw/chefs-platter/food-for-thought/20753/, December
18th 2014 (accessed date: June 4th 2015)
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KFC India – Relishing on Consumer Learning? | CB-1-0020
The products that it offered, like the chicken wings and wraps, were unfamiliar for Indian consumers. KFC
was also accused of cooking and frying its food in pork fat, which was not a common practice for a market
like India, where pork was not consumed by majority of the population. Adding to its woes, the Food
Safety Department inspectors soon raided the Bangalore outlet and found out that 2.8% of MonoSodium
Glutamate (MSG)10 was used for frying its chicken as the ceiling for using MSG is set at 1% by The
Prevention of Food Adulteration Act, 1954.11 Anti-KFC movements were organized accusing KFC of
health issues associated with using alarmingly high levels of MSG for frying its chicken. In 1995, its license
was revoked and the outlet had to be closed in Bangalore. Eventually KFC had to end its operations the
Indian market.
9
Anuradha Dayal-Gulati and Dipak Jain, Winning Strategies for the Indian Market (Kellogg School of Management), Northwestern University
Press, September 15th 2010
10
MonoSodium Glutamate (MSG) is a taste enhancer, which is commonly added to Chinese food, soups and canned vegetables and
processed meat. Research stated that consuming high doses of MSG could lead to several health issues such as headaches, weakness,
nausea, heart palpitations, chest pain, retardation and also birth defects.
11
Viveat Susan Pinto, “KFC: Worm in chicken could drive away consumers”, http://www.business-standard.com/article/companies/kfc-
worm-in-chicken-could-drive-away-consumers-112101000193_1.html, October 10th 2012 (accessed date: June 9th 2015)
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CB-1-0020 | KFC India – Relishing on Consumer Learning?
12
Binoy Prabhakar, “How KFC & McDonald’s plan to target each other in India”, http://articles.economictimes.indiatimes.com/2011-
08-28/news/29935857_1_kafeccino-kfc-s-krushers-colonel-sanders/3, August 28th 2011 (accessed date: June 15th 2015)
13
Binoy Prabhakar, “KFC increasingly putting vegetarian items on its Indian menu to cater to customers”, http://
articles.economictimes.indiatimes.com/2012-09-09/news/33697731_1_kfc-india-colonel-harland-sanders-vegetarian-food, September
9th 2012 (accessed date: June 16th 2015)
14
“Made for India: Succeeding in a Market Where One Size Won’t Fit All”, op.cit.
15
Amol Sharma, “KFC’s Big India Plans”, http://blogs.wsj.com/indiarealtime/2013/02/12/kfcs-big-india-plans/, February 12th 2013 (accessed
date: June 16th 2015)
16
“KFC story in India, Kentucky Fried Chicken (KFC)”, http://www.mbarendezvous.com/general-awareness/kfc-story-in-india/ (accessed
date: June 5th 2015)
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KFC India – Relishing on Consumer Learning? | CB-1-0020
To further reinforce its product reorientation to suit Indian consumer preferences, KFC came out with a
TVC campaign called “Great Divide” which was conceptualized by Ogilvy & Mather17 (Exhibit IV). The
campaign showcased how attention to detail was given to separate its vegetarian and non-vegetarian offerings.
The oil used for cooking, eggless mayonnaise and eggless sauces were used for cooking vegetarian items and
the utensils used for cooking the vegetarian items were kept separate. They also had separate workforce for
cooking vegetarian and non-vegetarian menus. The TVC showcased the love story of a Chicken Zinger
burger and a Veg. Zinger burger, who could never meet as they were from different worlds in KFC.
Source: “KFC shows the Great Divide with a love story”, http://www.bestmediainfo.com/2014/06/kfc-shows-the-great-divide-with-a-love-story/, June 10th
2014 (accessed date: June 3rd 2015)
“While the idea was to showcase how serious KFC is towards segregation of veg and non-veg products in
their kitchens – the brief was to convey this in a fun and entertaining manner – without taking away from
the seriousness of the message. We feel confident that this quirky love story between a veg and non-veg
burger does that beautifully,” said Ajay Gahlaut, Creative Head, Ogilvy & Mather.18
KFC had also altered its tagline from ‘finger licking good’ to ‘so veg, so good’ in India. The campaign was
considered a huge success and as a result the company’s sales increased by 60% after ‘So Veg So Good’
campaign.19 “Our ‘So Veg, So Good’ range, which has helped us broaden the brand’s relevance, has been
received very positively by consumers. Considering the sentiments and beliefs of our vegetarian customers,
we at KFC maintain stringent standards to ensure that there is absolutely no mixing of vegetarian and non-
vegetarian offerings at our stores. Everything from the utensils, ingredients and staff are segregated. We
wanted to convey this message to our consumers yet keep it entertaining and informative, and this video
does exactly that” remarked Dhruv Kaul, Director Marketing, KFC India.20
17
Founded by David Ogilvy in 1948, Ogilvy & Mather is one of the largest marketing communications companies in the world.
18
“KFC shows the Great Divide with a love story”, http://www.bestmediainfo.com/2014/06/kfc-shows-the-great-divide-with-a-love-
story/, June 10th 2014 (accessed date: June 4th 2015)
19
Sanskriti Merchant and Prasad Sangameshwaran, “Ab ki baar veggie sarkar”, http://www.thehindubusinessline.com/features/brandline/
ab-ki-baar-veggie-sarkar/article6033986.ece, May 22nd 2014 (accessed date: June 4th 2015)
20
“Food for thought”, op.cit.
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CB-1-0020 | KFC India – Relishing on Consumer Learning?
Similarly, catering to the spice loving segment of the Indian consumers, KFC extended its menu with spicier
offerings. Noteworthy among them was Flaming Crunch Chicken, a signature recipe of KFC made by
adding Assam grown hot chilies’ or ghost pepper (Bhut Jolokia)21 (Exhibit V). The sales of flaming crunch
chicken have tripled since its launch in December 2014 across 350 stores in India.22
Exhibit V: KFC Flaming Crunch made from World’s Hottest Chilli – Assam Ghost Pepper
Source: Saurav Bora, “Finger-licking hot bhut jolokia in KFC”, http://www.telegraphindia.com/1141220/jsp/northeast/story_4337.jsp#.VXF6VM-qqko, December
19th 2014 (accessed date: June 3rd 2015)
21
Bhut Jolokia is a form of ghost pepper commonly grown in Eastern India and Bangladesh. It holds a place in the Guinness World Records
as the world’s hottest chilli.
22
Ratna Bhushan, “Fast food chains like KFC, Dunkin’ Donuts, McDonald’s & others take the spice route to success”, http://
articles.economictimes.indiatimes.com/2015-01-23/news/58382598_1_red-chilli-bhut-jolokia-dunkin-donuts, January 23rd 2015
(accessed date: June 5th 2015)
23
Amit Bapna, “McDonald’s, Pizza Hut, KFC, CCD & Domino’s flourish: Quick Service Restaurant industry on a roll”, http://
articles.economictimes.indiatimes.com/2014-05-28/news/50149354_1_brand-indians-sanjiv-razdan, May 28th 2014 (accessed date:
June 15th 2015)
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KFC India – Relishing on Consumer Learning? | CB-1-0020
KFC along with winning Sennheiser headsets and KFC food coupons. With the campaign, KFC
Facebook page received 170,000 new fans and featured among the Top 10 social media campaigns of
2012. “Music is a huge youth passion and our popular music platform, Radio KFC is giving amateur
artistes a launch pad to showcase their talent. We believe that everyone has an artist within, and the
Radio KFC RJ hunt proved to be the first in a series of initiatives to give that artist a chance to shine.
The response to the nationwide contest was fantastic and we are excited to announce our first RJs”,24
said Tarun Lal (Lal), KFC India and Area Countries GM.
• Currycature: It was another creative campaign that launched the new spicy curry flavored chicken,
cooked in Indian spices in 2012. The app gave users an option to create their own caricature using the
KFC app. The target audience could choose either male or female characters which were funny, had an
ethnic Indian touch to them and then upload their pictures on Facebook. Participants could also
experiment with their looks. A total of 17,264 currycatures were created and shared on Facebook,
besides 400,000 new fans joined the KFC fan page. Rewards for the winning participants were an
iPhone, a cybershot camera and KFC vouchers worth 2000.25
24
RNM Team, “Radio KFC announces its radio jockeys across India”, http://www.radioandmusic.com/content/editorial/news/radio-kfc-
announces-its-radio-jockeys-across-india, January 23rd 2013 (accessed date: June 15th 2015)
25
http://blinksolution.com/projects/kfc-india-curry-crunch-campaign/
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CB-1-0020 | KFC India – Relishing on Consumer Learning?
• Design Your Own Bucket: KFC introduced another Facebook campaign in 2013, wherein the consumers
could design their own creative and colorful KFC buckets featuring themselves. By the end of the
campaign KFC received around 5,500 entries. Among these three winners were selected and gifts such
as Samsung Galaxy Note, iPod Touch and Sony PSP were given as takeaways.
• KFC Krushers Komic: Claimed as the ‘the first ever User Generated Graphic Novel in India’ – Krushers
Komic was another Facebook initiative wherein the consumers could insert pictures, names and create
a story and share it with friends as a personalized novel. Within seven days of its launch KFC received
more than 17000 comics. Printed versions of their personalized novels were gifted to the winners along
with Xbox 360.
• Krushers Time: A digital interactive brand channel on YouTube was also created by KFC, wherein
users logging on to the channel could see a video of two teenagers sitting in a library, bored. Users were
asked to liberate them from boredom. The users had to do so by dragging them a Krusher from the bar
above. “With the launch of a dedicated social media campaign for Krushers, we are taking forward our
journey of fan engagement on digital platforms to the next level. The youth of today, our core TG
spends most of their time online and our initiatives in the past like ‘Currycature’, ‘KFC Wow’ and
‘Design Your Own Bucket’ have done very well for us. Going forward, we are hoping to achieve deeper
engagement with more and more consumers, making KFC the Most Social QSR brand in the country”,26
said Lal.
• KFC Wow: Predominantly targeting customers across all age groups, KFC launched Wow Menu in
2013, through which it offered more than ten products priced between 25 and 100. KFC Wow initiative
lowered its prices in such a manner that it helped change what appeared to many as a special-occasion
dining into an everyday option. With a tagline “25 me khao, kha ke bolo Wow”, KFC lured its customers.
Using digital medium to promote its Wow menu, KFC developed a real-time app which would scan
any Indian currency and suggest KFC menu which can be bought with that money. KFC’s ‘Wow @
25’ App was the only Indian winner at 2014’s Webby People’s Voice Awards (Exhibit VII).
2012 • Ranked 48th - Top 50 Trusted Service Brands, Most Trusted Brands 2012
• Ranked 5th - Top Five Food Services Brand, Most Trusted Brands 2012
2013 • Ranked 36th - Top 100 Trusted Brands, Most Trusted Brands 2013
2014 • National Award for the Empowerment of Persons with Disabilities, Government of India
• Ranked 3rd - Top Five Food Services Brand, Most Exciting Brands 2014
• Ranked 19th - Top 50 Trusted Service Brands, Most Trusted Brands 2014
• Ranked 31st - Top 100 Trusted Brands, Most Trusted Brands 2014
• Webby People’s Voice Awards - KFC’s Augmented Reality App titled ‘Wow @ 25’
2015 • Ranked 3rd - Top Five Food Services Brand, Most Exciting Brands 2015
• Ranked 37th - Top 100 Trusted Brands, Most Trusted Brands 2015
26
Dailybhaskar.com, “KFC India targets net-savvy teens with first ever interactive digital campaign”, http://daily.bhaskar.com/news/NAT-
SPL-kfc-india-targets-net-savvy-teens-with-first-ever-interactive-digital-campaign-4295511-NOR.html, June 18th 2013 (accessed date:
June 10th 2015)
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KFC India – Relishing on Consumer Learning? | CB-1-0020
450
395
400
341
350
KFC Outlets in India
300 260
250
186
200
128
150
100
50
0
2010 2011 2012 2013 2014
However, critics claim that by localizing the menu to suit the Indian consumer preferences, will KFC garner
greater profit margins or dilute its core offerings? Analysts opined that too much Indianization (localization
to serve Indian customers) of the menu would dilute the global brand equity and would also result in poor
brand loyalty in consumers, which was the biggest challenge the QSR industry faced. However, experts
opine that, the main challenge would lie in identifying what motivates the consumers and use them
constructively to build a stronger consumer base. Having learnt the changes in consumer behavior, will KFC
be able to effectively influence consumer decision making? “India is an important emerging country for
Yum! as it’s projected to become the largest consumer market in the world by 2030. Our India Division has
a long runway of exciting opportunities and endless possibilities to grow over the long-term”, Said Greg
Creed, Chief Executive Officer, Yum! Brands.29
27
Ratna Bhushan, “Small-town India gorges on MNC restaurant chains”, http://articles.economictimes.indiatimes.com/2010-05-24/
news/28411213_1_restaurant-chains-smaller-towns-kfc, May 24th 2010 (accessed date: June 4th 2015)
28
Ibid.
29
Virginia Ferguson, “KFC Named Most Trusted Quick-Service Restaurant Brand in India by The Brand Trust Report”, h t t p : / /
www.businesswire.com/news/home/20150303006370/en/KFC-Named-Trusted-Quick-Service-Restaurant-Brand-India#.VXFoRs-qqko,
March 3rd 2015 (accessed date: June 5th 2015)
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CB-1-0020 | KFC India – Relishing on Consumer Learning?
Assignment Questions
I. Are there any differences in the way people learn generally and they learn as consumers? Substantiate
your opinion with relevant arguments. Would there be any difference between the way an individual
consumer learns and the way a group of consumers learn?
II. What do you understand by behavioral learning and cognitive learning? How do you think KFC
India’s initiatives exemplify the purport of these two types of learning?
III. What according to you are the learning measures and outcomes? Are they consumer specific or are they
company/brand specific? Learning measures and outcomes can be different for different consumers,
what’s your analysis for KFC India’s consumers?
Mandatory Reading
• Leon G. Schiffman, et al., “Consumer Learning”, Consumer Behavior,10th Edition, Pearson Education,
Inc., 2010 – To understand how companies influence the way consumers learn
Mandatory Viewing
• “KFC’s Great Divide”, https://www.youtube.com/watch?v=fpPXdw8uYmY, April 29th 2014
• “Social Media Case Study: How KFC India Boosted its Social Media Presence”, https://
www.youtube.com/watch?v=lZsVORnp0kI, January 2nd 2014
• “Radio KFC RJ Hunt Facebook App - Case Study Video”, https://vimeo.com/74379122, September
12th 2013
• “KFC Currycature”, https://www.youtube.com/watch?v=q96ftbETlSk, September 12th 2013
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