Restaurant business is one of the oldest known to man and to a large extent is still an art and will remain

so in future. System and practices make the job of managing a hotel or restaurant much similar, but the human element is difficult to systemize. The field of restaurant business is interdisciplinary. It draws up economics, psychology, management, food technology, architecture and marketing clustered together. It is a business of hospitality. Multan is one of the oldest cities of Pakistan and is expanding everyday. The trend of the people of Multan is drifting extensively towards modern means of socializing and relaxation. People are getting more involved in fast food. Therefore, we have worked on the marketing management of KFC to see how its affecting the lifestyle of people in this locality. KFC, the name requires no explanation. It is a chain of restaurants operating in more than 80 countries with over 1000 outlets around the world from Shanghai to Sao Polo; from the sand of Saudi Arabia to the side walks of New York and now in Pakistan. It is part of the Tricon restaurants internationals which is one of the most leading multinational organizations in the world. Said to be the second most famous and largest fast food franchise in the World, No. 1 brand in Asia with the market leader ship in Japan, China, Malaysia, Indonesia, and Korea. In this report, we have discussed the history of KFC; Its evolution and expansion in Pakistan, KFCs sales and promotion techniques, operational activities and unique style. This organizations internal and external analysis, its strengths, weaknesses, opportunities and threats are discussed in this report. We have proposed a new product, Chocolate Brownies, which satisfies the KFC customers who seek dessert in the restaurant but find none. We have discussed its marketing strategies and pricing policy. If this product is actually introduced, more customers and more value will be attracted towards KFC.

CONTENTS

KENTUCKY FRIED CHICKEN THE HISTORY KFC MILESTONES IN CORPORATE HISTORY KFC TODAY MISSION STATEMENT & GOALS VALUES THE CHAMPS PROGRAM KFC IN PAKISTAN MARKETING TARGET MARKET OF KFC IN PAKISTAN PLACE PRODUCTS BCG MATRIX OF KFC INTRODUCING CHOCOLATE BROWNIES PROMOTION PRICE K&NS VALUE CHICKEN PLANT & FOOD SAFETY DELIVERY METHODS PAYMENT METHODS CUSTOMER INTERACTION PEST ANALYSIS SWOT ANALYSIS CONCLUSION & RECOMMENDATIONS REFERENCES

KENTUCKY FRIED CHICKEN

Food, fun & Festivity, this is what KFC is all leading the market since its inception, KFC provides the ultimate chicken meals for a chicken loving nation. Be it colonel sanders secret original recipe chicken or the hot & spicy version, every bite brings a yum on our face. At KFC we can proudly say, We do chicken right. Perfecting its secret recipe of 11 herbs and spices in 1939, KFC has come a long way. With over 10,000 outlets in the world, KFC has maintained its title, for the last 60 years, of being the chicken Experts. Opening the first KFC outlet in Gulshan-e- Iqbal in 1997. KFC wore the title of being the market leader in its industry. Serving delicious and hygienic food in a relaxing environment made KFC everyones favorite. Since then, KFC has been constantly introducing new products and opening new restaurants for its customers. Presently KFC is branched out in nine major cities of Pakistan (Karachi, Lahore, Gujranwala, Sukkur & Muree) with more than 45 outlets nation-wide. KFC, based in Louisville, Kentucky, is the world's most popular chicken restaurant chain specializing in Original Recipe, Extra Crispy and Colonel's Crispy Strips chicken with home-style sides and freshly made chicken sandwiches. Since its founding by Colonel Harland Sanders in 1952, KFC has been serving delicious, already-prepared complete family meals at affordable prices. KFC has more than 11,000 outlets in 85

countries and territories around the world, serving some 8 million customers each day. KFC fast-food chains are currently under the restaurant division of Pepsi Co Incorporated. Pepsi Co. is a corporation with three divisions including beverages, snack foods, and restaurants. The restaurant division of Pepsi Co. is named as YUM! Brands Inc. Yum! Restaurants International (YRI) is the division of Yum! Brands that operates all restaurants outside the U.S.A. YRI is Pepsi Co.s fastest growing and most profitable division. In fact, KFC makes more profit outside the U.S.A. than in the U.S.A. In 2002, the YRI system opened a record 1,051 traditional restaurants with over 6,000 KFC outlets and over 4,000 Pizza Huts. The financial position of PepsiCo is very good. The corporation compares well with industry averages. Operationally, they have improved the health environment of their employees and customers by enforcing a smoke-free policy. Also, they have increased employee training for better service and cleaner restaurants.

THE HISTORY Colonel Harland Sanders, born September 9, 1890, actively began franchising his chicken business at the age of 65. now, the Kentucky Fried Chicken (R) business he started has grown to be one of the largest retail food service systems in the world. And colonel sanders, a quick service restaurant pioneer, have become a symbol of entrepreneurial spirit. More than two billion of the colonels finger lickin good, chicken dinners are served annually. And not just in North America. The colonels cooking is available in more than 82 countries around the world. He sold his interest in the US 1980 to 1984. The Colonel remained a public spokesman for the company. In 1976, an independent survey ranked the Colonel as the worlds second most recognized celebrity. Under the new owners, Kentucky Fried Chicken Corporation grew rapidly. It

went public on March 17, 1966, and was listed on the New York Stock Exchange on January 16, 1969. More than 3,500 franchised and companyowned restaurants were in worldwide operation when Heublein Inc. acquired KFC Corporation on July 8, 1971, for $285 million.

KFC Original Recipe Kentucky Fried Chicken became a subsidiary of R.J. Reynolds Industries, Inc. (now RJR Nabisco, Inc.), when Reynolds acquired Heublein Inc. in 1982. KFC was acquired in October 1986 from RJR Nabisco, Inc. by PepsiCo, Inc., for approximately $840 million. In January 1997, PepsiCo, Inc. announced the spin-off of its quick service restaurants -- KFC, Taco Bell and Pizza Hut -- into an independent restaurant company, Tricon Global Restaurants, Inc. In May 2002, the company announced it received shareholders' approval to change its corporation name to Yum! Brands, Inc. The company, which owns A&W All-American Food Restaurants, KFC, Long John Silvers, Pizza Hut and Taco Bell restaurants, is the world's largest restaurant company in terms of system units with nearly 32,500 in more than 100 countries and territories. Until he was fatally stricken with leukemia in 1980 at the age of 90, the Colonel traveled 250,000 miles a year visiting the KFC restaurants around the world.

And it all began with a 65-year-old gentleman who used his $105 Social Security check to start a business. KFC MILESTONES IN CORPORATE HISTORY 1964 John Y, Brown and Jack Massey purchased Kentucky Fried Chicken for US $ 2 million. 1969, Corporation listed on the New York Stock Exchange, Colonel buys the first 100 shares. 1986 Kentucky Fried Chicken purchased by Pepsi Co. 1991 New logo is introduced, replacing Kentucky Fried Chicken with KFC. 1992, In Japan, KFC opens its 1000 restaurant. 1994 KFC opens its 9000 restaurant in the world in Shanghai China. 1997, Tricon Global restaurant and Tricon Restaurants International (TRI) founded on October 7th.

The restaurant where colonel started his business and worked

THE TRICON FAMILY KFC is the part of Tricon, the worlds largest restaurant group with restaurants in nearly 100 countries around the world. Combined with Pizza Hut and Taco Bell, there are nearly 30,000 restaurants worldwide. Our brands each lead their categories, generating annual retail sales over US $ 20 billion. We feed more than 18 million people every day.

KFC TODAY Today, KFC is the worlds largest and most well known chicken restaurant chain, with more than 10,000 locations worldwide, in 78 countries. KFC and its franchisees employ more than 200,000 people worldwide. KFC serves more than 4.5 billion pieces of chicken annually, to approximately 7 million customers a day, worldwide. MISSION STATEMENT To establish in Pakistan our position as the leading WQSR (Western Quick Service Restaurant) chain, serving good value, innovative chicken-based products. Consistently providing a pleasant dining experience, with fast friendly service, in a clean and convenient location. At all times, we must be dedicated to providing excellent service and delighting customers. GOALS Build an organization dedicated to excellence. Consistently deliver superior quality, and value in our products and services. Maintain a commitment to innovation for continuous improvement and growth, striving always to be the leader the market place changes. Generate consistently superior financial returns and benefit our owners and employees.

VALUES Focus all our resources to our restaurant operations 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 another.

 Commit ourselves to the highest standards of personal and professional integrity at all times. Encourage new and innovative ideas because these are the key to our competitive growth. Reward results and not simple efforts. Dedicate ourselves to continuous growth in sales, profit and size of organization. Work as a team. THE CHAMPS PROGRAM Champs stands for the belief that the most important thing each of us can do is to focus on the customer. It stands for KFCs commitment to provide the best food and best experience for the best value. Champs stands for the six universal areas of customer expectation common to all cultures and all restaurant concepts. They are: Cleanliness Hospitality Accuracy Maintenance of Facilities Product Quality Speed of Service Champs is a philosophy to ensure that the customer has a consistent quality experience in every restaurant, every day, on every occasion and you will be playing a key role in delivering Champs to our customers.

EMPLOYEE CONDUCT RULES As an employee at the KFC restaurant, there are certain rules and regulations that the company expects you to observe you to observe and respect. Such rules are necessary to ensure that the rights and interests of the company and its assets are protected and a proper learning environment is maintained.

KFC IN PAKISTAN

Apart from fulfilling our commitment of serving delicious, fresh and hygienic food and at the same time providing our customer with the ultimate entertainment; KFC also plays in the economics development of our country.

Presently KFC has provided to over 1200 Pakistanis, which adds up to 6000 individuals directly dependent in KFC Pakistan. The Government of Pakistan receives over Rs.10 million per month from KFC Pakistan as direct taxes. 95% of all food and packing material used in KFC Pakistan is procured locally, which sums up to a purchase of over Rs.35 million per month. Each new outlet developed by KFC Pakistan costs approximately Rs.40 million, which is a huge amount for our construction industry.

Franchising is a relatively new phenomenon in Pakistan, but this concept has gained tremendous acceptance in this market as can be seen from the recent growth trends in the market. Most of the growth in the past few years has taken place in the food business, where the present market size for internationally franchised outlets is estimated in excess of Pak Rupees 1.2 billion (USD approximately 24 million) in terms of annual sales. US food outlets such as Pizza Hut, Kentucky Fried Chicken (KFC), McDonalds, TGI Fridays, Subway, Taco Maker, and Nacho Nanas are already present in Karachi. Pizza Hut, McDonalds and KFC are also present in Lahore. The non-food sectors such as retailing, convenience stores, hotels and motels, courier service, security services, and educational training centers are going to be the growth areas of the future. US companies dominate the franchise market in Pakistan in large part due to the fact that US firms were the pioneers in this sector and the first to set up their outlets in Pakistan. In addition, the US firms entered the market with a long term commitment and provided full support to their local partners. Also, U.S firms and their products are internationally known for their quality products and superior service. Many US products such as McDonalds and Kentucky Fried Chicken were well-known and recognized in the urban areas of Pakistan even before starting their operations in the country.

There are no local firms offering indigenous franchise opportunities, although several Pakistani entrepreneurs have acquired master franchise for this region with the objective to re-sell the franchise to interested parties in the country. The government of Pakistan does not impose any restrictions on investors who wish to establish a franchise in the country, but foreign investors are required to inform the board of investment and the state bank of Pakistan, primarily for the purpose of repatriation of franchise fee or any profits accrued. MARKETING TARGET MARKET of KFC in PAKISTAN Kentucky Fried Chicken has been franchising all over the world for years. They have about 30,000 franchises all over the world. Ever since Pepsi co. has bought into the restaurants chain the have started an expansion program, which has focused not on the increasing number of the outlets but on the increasing number of branches all over the world operating in full order. KFC has been in Asia for considerable amount of while and as it has the policy of novelty and pioneering in branching into foreign markets it opened its first branch in Lahore on June 20, 1997. It was opened in the most interactive area of Lahore, Barkat Market. Before opening here the KFC people conducted a research which was known as the Barkat Market Analysis. The chain has been in the expansion mode for a few years and they branched into Pakistan after researching the market of Pakistan especially Lahore. The reason behind targeting the Lahore market is that they have a very mobile food culture. The Lahore culture is a ready market for any new fast food franchises as the success of KFC proved, and was followed by the opening of McDonaldss Pizza Hut in the foreign market and many other local successful fast food outlets. Pakistan supports a very well versed and varied palate and a colored culture that strongly supports the system. They have targeted the market

armed with spicy variations of chicken i.e., hot & crispy, and hot wings that are not there in the international market, but are specially designed for the pakistan palate. Its branch in lahore is one of the best in asia. In lahore they targeted the most mobile culture first; students of lahore. They focused all the areas well surrounded by educational institutes, as where their first branch is the center of all student activity. Not only is it near institutes like pu and ilm but also near a lot of the business complexes, thus catering to companies as well. So kfc targeted its market very well in pakistan and has been spreading with quite a speed since then. It has continued its aim in pioneering most of the affluent cities of the country.

Place Some important strengths of KFCs marketing strategy include a number of changes they have implemented in the past few years to increase customer access. KFC has answered the fast-food consumers demand for availability in non-traditional locations by opening restaurants in shopping malls, airports, stadiums, amusement parks, office buildings, and mobile units (Krug, 1996). As an additional outreach to their customers, KFC has initiated a home delivery service in 14 states (KFC 1997). As of February 27, 1997, KFC has more than 9,800 outlets located in 77 countries (KFC 1997). IN MULTAN The area selected for the building is the most affluent and trafficked area of Multan city, Cantt. It was selected due to its visibility and easy accessibility. The Cantt area is amongst the largest shopping area of the city and the affluent shoppers frequent this area. Its centralized location has added to the success of the restaurant. The restaurant building of Multan is the largest outlet in Pakistan. This outlet is catering to the city as well as the surrounding area that includes Khanewal, Muzaffargarh and the similar small localities. Chicky Fun Area

Railway Services Club, Bahawalpur Road Opp. Multan High Court, Multan. Ph: 111-532-532

TARGETED CUSTOMERS In Multan the most affluent class that frequent KFC is the business and landlord class. In the general customers as before the people of KFC have targeted the families and the students who are on the outlook for a quick bit. Another factor is that following in the foot steps of the trend setters, Lahore and Karachi food trends are diverting more and more towards fast food every day. So most of the young generation here was craving for a quality fast food outlet. Now that KFC has pioneered the fast food culture development Pizza Hut and McDonalds will follow. Most of the people here are businessmen and their affluent families are vigilant trend followers as they are the most influential people so previously they spent their fortune in fast foods outside the city and now they can do it in Multan KFC. Since the progress in the job sector the number of the working women is steadily increasing in the city and so is the trend to frequent the fast foods. Focusing on the family outing culture in Multan KFC has specially developed a kids playing pen that allows the families to have a quality time in the restaurant. The atmosphere here is exactly what families are looking for, so they have been more successful in attracting their target market then their predecessors. Another weakness of the Multanis that they have targeted is the tendency towards the chicken consumption. Since the people here are less vege-oriented they have an edge to their product. They have successfully attained their target market by only introducing HOT & CRISPY that in keeping with the peoples tastes here that are inclined towards spicy foods. They have also introduced a special combo 4 to cater the masses in the

city. They population here is very price sensitive which has been dealt with KFC by maintaining a regular price range all over Pakistan. They have successfully targeted the opinion leaders, the business in the city that set the trends followed by most of the people here.

PRODUCTS In 1992, KFC expand their menu to include a greater variety of foods that are lower in fat than fried chicken, such as Oriental Wings, Popcorn Chicken, and Honey BBQ Chicken. They also introduced a dessert menu, which provided a selection of pies and cookies. By the end of 1992, KFC held 49 percent of the $7.0 billion US chicken segment of the market (Krug, 1996). In 1993, KFC offered a new rotisserie Chicken menu item. They also offered a lunch a dinner buffet in at least 27 states (Krug, 1996). In 1995, two new products were introduced: Chunky Chicken Pot Pie and the Colonels Crispy Strips. In 1996, KFC introduced their Tender Roast Chicken, with projected sales of $500 million during the first 12 months (Like1997). KFC uses traditional taste testing methods implemented by the Colonel approximately 40 years ago. To ensure only the highest quality and best tasting products for KFC, a team of six franchisees and operators and two chefs comprise the KFC Chefs Council who develop, taste, rate and evaluate new product ideas (like 1997). The Chefs Council members are from various parts of the country, representing regional taste preferences of their customers. Once a new product has passed inspection by the Chefs Council, KFCs market research department conducts additional tests. Each week 100 people, who represent customers, taste the newest products. If the products receive a good taste rating, they are then tested in three or four cities. The Colonels quote still stands for KFC If it doesnt

taste good, dont serve it to the customer. (Like, 1997). Products that KFC offer are almost same throughout Pakistan, but slightly differ from other countries but not too much. The secret of KFC's world-wide success is due mainly to three key benefits - quality, taste and convenience. KFC now offers a diverse and interesting menu which includes:

Arabian rice Brownies (introduced after this feasibility report) Cheese Col. Chicken burger Col. Fillet burger Corn on the cob Dinner rolls Fries Hot and crispy soup Hot wings Machos burger Nuggets Cappuccino Espresso Frothe Hot shots Machos Milo Mineral water Moccacino Soft Drink Zinger burger

A typical KFC meal consists of chicken, coleslaw and potato & gravy. All of the ingredients are of the highest quality and freshness. To ensure this, the company sets rigorous standards for product uniformity and quality, which

must be met by all suppliers.

Kentucky Fried Chicken (Kfc)

Executive Summary Kentucky Fried Chicken (KFC) continues to be recognized as an earliest franchising company around the world. Approximately 50% of KFCs worldwide restaurant businesses are owned & operated by independent businessmen & women, KFC franchisees. KFCs outstanding brand recognition, experienced management, high quality food, site development expertise, advanced operational systems & unique global infrastructure position them to capitalize on global opportunities. KFC is currently seeking highly qualified individuals to join its family as new franchisees in both North America. & International markets. The feature of their tasty fast food items with unique value & services, creating a high demand for KFC in the international business arena. KFC already proves their demand in the global market by providing quality fried chicken & other fast foods. More than a billion of the KFCs "finger licking good" chicken dinners are served annually. And not just in North America. The KFCs cooking is available in more than 80 countries and territories around the world. Furthermore, there is a golden opportunity for KFC to expand their global foodservice in Bangladesh also. KFC can enter the Bangladeshi market for its demand & brand image. One of the biggest franchising companies is Kentucky Fried Chicken. Unique brand quality fast food provider KFC hold some exclusive strength. KFC is the provider of world quality foods. Different varieties of food items are there in KFC. KFC will get the maximum competitive advantage in Bangladesh for their exclusive brand image & superior food & service. Demand for KFC foods is another strength for them. KFC is always famous for their customeroriented attitude. KFC hold some fabulous opportunities in Bangladesh as a world-class fast food provider. For a high demand of fast food in our country, they can set the high standard of fast food restaurant over here. One was the present condition of the fast food shops in Bangladesh &..