Introduction of Company

KFC Corporation, based in Louisville, Kentucky, is the world’s most popular chicken

restaurant chain, specializing in Original Recipe , !"tra Crispy #$, and Colonel’s Crispy

%trips chicken with home style sides and &ive new &reshly made sandwiches' !very day,

nearly eight million customers are served around the world' KFC’s menu everywhere

includes Original Recipe chicken(made with the same great taste Colonel )arland

%anders created more than a hal&*century ago' Customers around the globe also en+oy

more than -- other products(&rom a Chunky Chicken .ot .ie in the /nited %tates to a

salmon sandwich in 0apan'

KFC continues reaching out to customers with home delivery in more than --

restaurants in the /nited %tates and several other countries' 1nd in 2uite a &ew /'%' cities,

KFC is teaming up with other restaurants, #aco 3ell and .izza )ut, selling nearly &i&ty

years ago4 Colonel %anders invented what is now called 5home meal replacement6 7 

selling complete meals to harried, time*strapped &amilies' )e called it, 5%unday 8inner,

%even 8ays a 9eek'6

#oday, the Colonel’s spirit and heritage are re&lected in KFC’s brand identity 7 the logo

&eatures Colonel )arland %anders, one o& the best*recognized icons in the world'

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KFC History

KFC is an internationally renowned &ast &ood industry in the world' #hey have the main

ambition to increase ; maintain the 2uality in &ast &ood industry' #heir aim is to capture

the &ast &ood market' 3asically they want to provide their products to anyone that is why

they e"panding their branches in all over the world' #hey want to increase their pro&it

through giving ma"imum satis&action ; other better &acilities to people that they want'

 <ow a&ter catching such a marvelous position in the =nternational $arket, KFC is

introducing a new item 53oneless Fried Chicken6, with even more attractive and

charming taste'

Company overview

Colonel )arland sanders, born %eptember >, :?>-, actively began &ranchising his chicken

 business at the age o& @A' <ow, the Kentucky &ried chicken business he started has grown

to be one o& the largest retail &ood service systems in the world' 1nd colonel sanders, a

2uick service restaurant pioneer, have become a symbol o& entrepreneurial spirit' $ore

than two billion o& the colonel’s 5&inger lickin’ good6 chicken dinners are served

annually' 1nd not +ust in 1merica' #he colonel’s cooking is available in more then ?B

countries around the world'

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9hen the colonel was si", his &ather died' )is mother was &orced to go to work, and

young )arland had to take care o& his three year old brother and baby sister' #his meant

doing much o& the &amily cooking' 3y the age o& seven, he was a master o& a score o& 

regional dishes' 1te age :-, his &irst +ob working on a nearby &arm &or B a month' 9hen

he was :B, his mother remarried and he le&t his home near )enryville, =nd', &or a +ob on a

&arm in Dreenwood, =nd' )e held a series o& +obs over the ne"t &ew years, &irst as a :A*

year*old streetcar conductor in <ew 1lbany, =nd', and then as a :@*year*old private,

soldiering &or si" months in Cuba' 1&ter that he was a railroad &ireman, studied law by

correspondence, practiced in +ustice o& the peace court, sold insurance, operated an Ohio

River steamboat &erry, sold tires, and Operated service station' 9hen he was E-, the

colonel began cooking &or hungry travelers who stopped at his service station in Corbin,

K' )e didn’t have a restaurant then, but served &olks on his own dining table in the

living 2uarters o& his service station' 1s more people started coming +ust &or &ood, he

moved across the street to a motel and restaurant that seated :EB people' Over the ne"t

nine year, he per&ected his secret blend o& :: herbs and spices and the basic cooking

techni2ue that is still used today'

KFC India

KFC is the world’s <o': Chicken G%R and has industry leading stature across many

countries like /K, 1ustralia, %outh 1&rica, China,/%1, $alaysia and many more'

KFC is the largest brand o& um Restaurants, a company that owns other leading brands

like .izza )ut, #aco 3ell, 1;9 and Long 0ohn %ilver' Renowned worldwide &or it’s

&inger licking good &ood, KFC o&&ers its signature products in =ndia tooH KFC has


 

introduced many o&&erings &or its growing customer base in =ndia while staying rooted in

the taste legacy o& Colonel )arland %ander’s secret recipe' =ts signature dishes include the

5crispy outside, +uicy inside6 )ot and Crispy Chicken, &lavor&ul and +uicy Original

Recipe chicken, the spicy, +uicy ; crunchy Iinger 3urger, #oasted #wister, Chicken

3ucket and a host o& beverages and desserts' For the vegetarians in =ndia, KFC also has

great tasting vegetarian o&&erings that include the Jeggie 3urger, Jeggie %nacker and Jeg

Rice meals' =n =ndia, KFC is growing rapidly and today has presence in :E cities with

close to A restaurants'

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KFC Outlets in Delhi

KFC in Noida
KFC in Central Delhi

%ector :?,
1*:B, =nner Circle,
 <oida *B-:-:
C., 8elhi*::---:
%tore #iming::am to ::pm
%tore #iming?-am to ::pm

Dreat =ndia .lace,

 <oida*B-:-:

%tore #iming::am to ::pm

KFC in West Delhi

KFC in South Delhi

3ack 9ing, City %2uare $all,

%elect Citywalk $all, Ra+ouri Darden,

%aket, 8elhi*::--: 8elhi*:--B

%tore #iming::am to ::pm %tore #iming::am to ::pm

Jasant %2uare $all,

Jikas %urya .laza,
Jasant Kun+*::---
%ector E, 8warka,
%tore #iming::a'm' to :: p'm'
8elhi*::--A

A
 

%tore #iming:: am to :: pm

3elow <eta+i %ubhash .lace $etro

%tation,

.itampura, 8elhi*::--E

%tore #iming::am to ::pm

KFC in ur!aon
KFC in East Delhi

%hipra $all, 0$8 Regent $all,

=ndirapuram, 8elhi*B-:-:B $all Road,

%tore #iming::am to ::pm Durgaon*

J% $all, %tore #iming:: am to :: pm

La"mi <agar, 8elhi*::-->B

1mbience $all,
%tore #iming::am to ::pm
Durgaon*:BB--:

%tore #iming::am to ::pm

@
 

O"#EC$I%ES OF $HE S$&D'

Ob+ectives

• #o study the importance and development o& &ast*&ood industry in today’s scenario'

• #o understand the various $arketing %trategies which KFC has adopted to survive in

highly competitive &ast*&ood industry'

• #o make a comparative study o& the ma+or players in =ndian '

• #o know about the marketing strategies o& various outlets '

• #o understand the competitive strength and weakness o& KFC'


 

(ESE)(CH *E$HODO+O'

R!%!1RC) Research is a structured en2uiry that utilizes acceptable scienti&ic

methodology to solve problems and create new knowledge that is generally

applicable'%cienti&ic methods consist o& systematic observation, classi&ication and

interpretationo& data'1lthough we engage in such process in our daily li&e, the di&&erence

 between ourcasual day* to*day generalisation and the conclusions usually recognized as

scienti&ic method lies in the degree o& &ormality, rigorousness, veri&iability and general

validity o& latter'

$HE (ESE)(CH ,(OCESS

#he research process is similar to undertaking a +ourney'

For a research +ourney there are two important decisions to make*

:M 9hat you want to &ind out about or what research 2uestions NproblemsM you want to4

BM )ow to go about &inding their answers'

#here are practical steps through which you must pass in your research +ourney in order 

to &ind answers to your research 2uestions' #he path to &inding answers to your research

2uestions constitutes research methodology'1t each operational step in the research

 process you are re2uired to choose &rom a

multiplicity o& methods, procedures and models o& research methodology which will

help you to best achieve your ob+ectives'

#his is where your knowledge base o& research methodology plays a crucial role'

%teps in Research .rocess

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:' Formulating the Research .roblem

B' !"tensive Literature Review

' 8eveloping the ob+ectives

E' .reparing the Research 8esign including %ample 8esign

A' Collecting the 8ata

@' 1nalysis o& 8ata

' Deneralisation and =nterpretation

?' .reparation o& the Report or .resentation o& Results*Formal write ups o& 

conclusions reached'

*ethods of Data Collection- #here are two types o& data

,rimary Data ( collected &or the &irst time

Secondary Data (those which have already been collected

and analysed by someone else'

*ethods of ,rimary Data Collection 

O"SE(%)$ION *E$HOD-

Commonly used in behavioural sciences =t is the gathering o& primary data by

investigator’s own direct observation o& relevant people, actions and situations without

asking &rom the respondent'

$ypes of O.servation-

:' %tructured 7 &or descriptive research

B' /nstructured(&or e"ploratory research

' .articipant Observation

E' <on* participant observation

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A' 8isguised observation

S&(%E' *E$HOD

1pproach most suited &or gathering descriptive in&ormation'

Structured Surveys  use &ormal lists o& 2uestions asked o& all respondents in the same

way'

&nstructured Surveys let the interviewer probe respondents and guide the interview

according to their answers'

Survey research may .e Direct or Indirect '

CON$)C$ *E$HODS 

 Information may be collected by

 Mail
  Telephone
 Personal interview

*ail /uestionnaires 

1dvantages

*can be used to collect large amounts o& in&ormation at a low cost per respondent'

*respondents may give more honest answers to personal 2uestions on a mail2uestionnaire

*no interviewer is involved to bias the respondent’s answers'

*convenient &or respondent’s who can answer when they have time

* good way to reach people who o&ten travel

Limitations

*not &le"ible

*take longer to complete than telephone or personal interview

*response rate is o&ten very low

* researcher has no control over who answers'

:-
 

$elephone Interviewin! 

* 2uick method

* more &le"ible as interviewer can e"plain 2uestions not understood by therespondent

* depending on respondent’s answer they can skip some Gs and probe more on others

* allows greater sample control

* response rate tends to be higher than mail

8rawbacks

*Cost per respondent higher 

*%ome people may not want to discuss personal Gs with interviewer 

*=nterviewer’s manner o& speaking may a&&ect the respondent’s answers

*8i&&erent interviewers may interpret and record response in a variety o& ways

*under time pressure ,data may be entered without actually interviewing

,ersonal Interviewin!-

=t is very &le"ible and can be used to collect large amounts o& in&ormation' #rained

interviewers are can hold the respondent’s attention and are available to clari&y di&&icult

2uestions' #hey can guide interviews, e"plore issues, and probe as the situation re2uires'

.ersonal interview can be used in any type o& 2uestionnaire and can be conducted &airly

2uickly' =nterviewers can also show actual products, advertisements, packages and

observe and

record their reactions and behaviour'

DE$E(*ININ S)*,+E DESIN

Researchers usually draw conclusions about large groups by taking a sample

1 %ample is a segment o& the population selected to represent the population as a

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whole'

=deally, the sample should be representative and allow the researcher to make accurate

estimates o& the thoughts and behaviour o& the larger population'

$ypes of Samples

,ro.a.ility samples

%imple random sample !very member o& the population has a known and e2ual

chance o& being selected'

%trati&ied random sample .opulation is divided into mutually e"clusive groups such

as age groups and randomsamples are drawn &rom each group'

ClusterNareaMsample #he population is divided into mutually e"clusive groups such

as blocks, and the researcher draws a sample o& the group to interview'

Nonpro.a.ility samples

Convenience sample #he researcher selects the easiest population members &rom

which to obtain in&ormation'

0udgment sample #he researcher uses hisher +udgement to select population

members who are good prospects &or accurate in&ormation'

Guota sample #he researcher &inds and interviews a prescribed number o& 

 people in each o& several categories'

%alues of KFC

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 Focus all our resources to our restaurants operation because that is where we

serve our customers'

 Reward and respect the contributions o& each individual at KFC'

 !"pand and update training with time and be the best we can be and more'

 3e open, honest and direct in our dealings with one and other'

 Commit ourselves to the highest standard to the personal and pro&essional

integrity at all times'

 !ncourage new and innovative ideas because these are the key to our competitive

growth'

 Reward result and not simple e&&orts'

 8edicate ourselves to continuous growth in sales, pro&it and size o& organization'

 9ork as a team'

  *ission statement

:
 

0 $o . e t he l ea de r i n w es te rn s ty le 1 ui c 2 s er vi ce r es ta ur an ts t hr ou !h f ri en dl y

service3 !ood 1uality food and clean atmosphere4

oals of KFC

 3uild an organization dedicated to e"cellence'

 Consistently deliver superior 2uality and value in our products and services'

 $aintain a commitment to innovation &or continuous improvement and grow,

striving always to be the leader in the market place changes'

 Denerate consistently superior &inancial returns and bene&its our owner and

employees'

#o establish in =ndia our position as leading 9G%R N9estern Guick %ervice RestaurantM

chain, serving good value' =nnovative chicken*based products' Consistently, providing a

 pleasant dining e"perience, with &ast &riendly, in a clean and convenient location' 1t all

times we must be dedicated to providing e"cellent and delighting customers'

,HI+OSO,H' OF KFC

:E
 

$he CH)*,S ,ro!ram

Champs stands &or our belie& that the most important thing each o& us can do is to &ocus

on the customer' =t stands &or our commitment to provide the best &ood and best

e"perience &or the best value'

C)1$.% stand &or the si" universal areas o& customer e"pectation common to all

cultures and all restaurants concepts'

$HE CH)*,S

#hese are

Cleanliness

Hospitality

)ccuracy

*aintenance o& Facilities

,roduct Guality

S peed o& %ervice

CH)*,S  is the philosophy to ensure that the customer has the consistent 2uality

e"perience in every restaurant, everyday, on every occasions and you will be playing role

in delivering C)1$.% to our customers'

KFC Ori!inal (ecipe

:A
 

@ cups Crisco %hortening

: eggs well beaten

B cups $ilk

B cups Flour

B teaspoons ground pepper

 tablespoons salt

: teaspoon $%D

:? teaspoon Darlic .owder

: dash paprika

B Frying Chickens cut into @ pieces

.lace shortening into the pressure cooker and heat over medium heat to the shortening

reaches E--F' =n a small bowl, combine the egg and milk' =n a separate bowl, combine

the remaining si" dry ingredients' 8ip each piece o& chicken into the milk until &ully

moistened' Roll the moistened chicken in the &lour mi"ture until well coated' =n groups o& 

&our or &ive, drop the covered chicken pieces into the shortening and lock the lid' 9hen

 pressure builds up cook &or :- minutes'

Situational )nalysis

Current .roducts

 Kentucky &ried chicken

• Iinger burger

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• Krushers

• Dame3o"

• #wister 

• 3o"master

• Chicken 3ucket

• )ot wings

• Fries

• Corn on the cob

• Iing Kong

• %nackerNchicken ; veggieM

• Jeggie Feast

:
 

,O($E(5S FI%E FO(CE )N)+'SIS

Entry

For the current =ndian market &or &ast &ood, it is not di&&icult &or a &ast &ood restaurant to

enter the market' )owever, it would be e"tremely di&&icult to take over already running

ma+or &ast &ood chainsP dominancy in =ndia or even make a signi&icant amount o& pro&it'

9hile there are enough people in urban =ndia &or any restaurant to survive, KFC holds the

&irst*mover advantage into the Pnon*veg &ood specialty &ood segmentP that gives them &ree

reputation' Customers, especially children who are used to going to KFC as a treat or 

reward &rom their parents or grandparents, are not going to want to go to other restaurants

they’ve never heard o&' #he brand name is already established' 1lso, there is already a

large variety in the numerous western*style dining places in =ndia, such as

$c8onald’s, .izza )ut, 8ominoPs and %ubway, and any new &ast*&ood entrants would

 +ust be presenting something very similar to what’s already there' 9hile small

 <eighborhood restaurants generally have low barriers to entry, these are the barriers to

entry &or similar restaurant businesses to enter the &ast*&ood chain market'

"uyer6Supplier "ar!ainin! ,ower

#he customers o& KFC, especially as individual buyers, have almost no bargaining power 

 because i& only one customer threatens to no longer eat at KFC, the store is not going to

lower its price because the cost o& losing one customer is not very great' #he suppliers,

like the buyers, have very little bargaining power'

=n terms o& &ood, KFC, upon its move into =ndia, urged many o& its /'%' suppliers to also

e"tend branches into =ndia' KFC also began helping local suppliers by giving them

:?
 

technological support to improve their products' #his is a brilliant strategy because the

supplies that KFC would otherwise need to import &rom the

/'%' can now be obtained domestically, and i& the /'%' suppliers decide to raise their 

 prices, KFC can easily switch to the local suppliers' #his gives us a brilliant strategy'

9ith this strategy, KFC created competition among its suppliers, lowering the supplier 

 bargaining power' =n terms o& human

resources, labor cost is e"tremely low because the supply o& non*skilled workers great

e"ceeds the demand &or them' 9ith so little buyer and supplier bargaining powers, KFC

is able to have a very tight control over its prices and e"penditures'

Su.stitutes and Complements

1s mentioned above, there are a &ew ma+or competitors in the &ast*&ood industry

in =ndia &or KFC, namely $c8onald’s, .izza )ut, 8ominoPs and %ubway' #he substitute

 products, in this case, would be burgers, pizza, and sandwiches' #hough they are

competitors, their primary products di&&er greatly &rom each other, in that they sell,

chicken, burgers and &ries, pizzas, and sandwiches, respectively' #raditional

=ndian dining, home*cooked meals, and grocery stores with ready*to*eat &oods are also

substitutes, as &amilies could choose any one o& these over &ast &ood &or a meal' #hese

substitutes are de&initely considered healthy as compared to the &ast &ood chains' !ven

&oods &rom street vendors count as substitute goods'

9hile other &ast &oods serve as substitute to KFC, they can also serve as complements &or 

&ast &oods as a whole' =& the general price o& &ast &oods goes up,KFC’s price rises as well,

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and the same can be said o& the 2uantity sold o& these products, which make them

complements to each other' KFC also sets up stores located near popular tourist

attractions, so tickets to these tourist spots are also complementary goods because the

more people tour these attractions, the more customers KFC will get'

(ivalry

/nlike what one would e"pect, KFC has little rivalry with similar &ast*&ood chains in

=ndia' #he primary reason is that their core products are di&&erent, as in they sell di&&erent

kinds o& &ast &oods with very di&&erent tastes and styles' For e"ample, i& KFC raised its

 price &or chicken by a small amount, =ndian chicken lovers who may not be as accepting

to pizzas Nmany =ndian people strongly dislike the taste o& cheeseM are not going to switch

to .izza )ut +ust because the price &or KFC increased' =n addition to that, these

restaurants have such di&&erent target customers that the &luctuation o& price

Current tar!et mar2et

Se!mentation

KFC has divided the market o& =ndia into distinct groups o& customers with di&&erent

demands, tastes and behavior who re2uire separate products or marketing mi"'

=n =ndia the niche marketing is being used &or particular classes o& people'

#hey have made segments o& the market on the &ollowing bases'

 8emographical

 3ehavior 

 Deographical

B-
 

3y using these three bases they segmented the market as under'

DE*O(),HIC)+ ")SIS

=n demographics their &irst segment is consisted o& the income &actor i'e' high income,

average income and low income'

"EH)%IO( 

=n behavioral aspect they segmented the market on the basis o& 2uality, taste and price'

Following are the di&&erent possible segments in this regard'

 #aste conscious

 Guality conscious

 Class conscious

 Combination o& price and 2uality

 EO(),HIC)+ ")SIS

On the basis o& the geographical &actor we have divided our market in three main

segments'

 /rban areas

 %ub urban areas

B:
 

,rofile criteria-

78 Dender KFC is &or each gender both male and &emale'

98 Income- !veryone can use the KFCservice upper and middle class '

:8 )!e- age limitation &or using this product above :A

;8 Occupation-  3y pro&ession also everyone can use this product means businessman

student workers and other peoples'

<8 Education-  =t has no need more education that why the person who know something

can easily en+oy with this product'

=8 Family life cycle-  KFC is suitable in every stage o& li&e like single married couple

and also those who have children can use this product'

>8 +ifestyle-  #his product is used in every level o& social class like upper, middle class'

?8 )ttitude-  9hen the customers once buy this product a&ter that they can use the

 product continuously'

@8 ,urchasin! decision-   O&ten KFC changes the purchasing decision o& customers

 because o& its good attributes'

7A8 eo!raphic re!ion-  Deographically KFC is used in every part o& the country as well

as all over the world'

778 ,roduct positionin!

Customer perceive this product as a uni2ue product that other are not giving '

)ttitudes

#he attitudes o& the public is very good people like our this new product like others'

BB
 

,urchasin! process 

$any people come &rom home to eat this , and some make impulse decision as they saw

it '

*ar2et Covera!e Strate!y

KFC will be using di&&erentiated market coverage strategy' =t means that di&&erent

marketing mi" will be used &or di&&erent age groups'

B
 

$)(E$ *)(KE$ FO( F)S$ FOOD

  1&ter evaluation o& various segments, KFC has decided to target the market o& /rban

and %ub*urban 1reas o& .akistan'

,roduct usa!e

 .eople are educated and they want variety in their diet'

  <ormally people o& rural areas don’t take &ast &ood' On the other hand people o& 

urban areas take &ast &ood'

 =ncome o& the people o& urban areas is normally high and they can a&&ord to

 purchase such products, which are slightly higher in price as compared to

 prevailing prices o& local &ood in the market'

 .eople o& /rban 1reas are more 2uality conscious than the people o& Rural 1reas'

 =n /rban 1rea there lived people &rom every walk o& li&e and pro&it generation is

easier than in Rural 1reas'

Competitive analysis

Competitors

ou cannot en+oy the business without competitors' <o organization can a&&ord to ignore

there competitors' =t is very important &or a marketing managers to monitor the activities

o& there competitors, what they are doingQ KFC adopted such sort o& strategy that there is

no competitor &or spicy chicken, which is made by KFC' KFC beats its competitors

BE
 

through the revising marketing strategy at every movement but the main competitor o& 

KFC are

*c Donald

CO*,E$I$I%E )D%)N$)E

KFC $c8onalds

Spicy ,roducts "ur!er and French Fries

=ndian people like spicy products instead o& 

 boiled &ood

)ra.ian (ice and Bin!er "ur!er "i! *ac

Free Delivery Char!es for home delivery

Chic2en is eaten .y every community "eef is .anned in some community

=ts %ta&& consist o& simple Draduates and give
+ocal Staff and Hi!hly /ualified .ecause
them training
local staff can .etter deal with the customers
$c8onalds /ses #op #o 3ottom 1pproach'
KFC uses #op to 3ottom and 3ottom to #op

1pproach in *ana!ement8
 <o such Case'
KFC is Co branding with Walls

Economic )nalysis of *ar2et

1 market in this conte"t re&ers to a number o& all actual and potential buyers o& a product

NKotlerM' #hese buyers have a need to satis&y their needs through e"change NDraphic :M'

#hese needs make up the demand &or particular products and services' %everal

BA
 

components must be considered, as all these components have a direct or indirect impact

on KFC’s success' Communication

Changes in the below described

Industry Product / service Market
components over the last couple o& years (a collection (a collection
of seller) Money of buyers

have led to big changes in people’s

Information
attitudes towards healthy &ood' =t e"plains Graphic 1

why 1ustralians today want to eat healthy and nutritious*rich &ood in order to keep

themselves healthy and that KFC must ad+ust their range o'

$acro environment

KFC operates in a larger macro environment o& &orces that creates opportunities, but also

threats' NKotler M 1 company such as KFC usually cannot in&luence trends in the macro

environment, as they a&&ect people and organisations on a larger scale'

)owever, KFC has to care&ully e"amine macro environmental trends and must create

competitive responses to such trends' #here are si" ma+or macro environmental &orces

KFC has to take into account'

$icro environment

B@
 

#he microenvironment consists o& all &orces that are close

to KFC, and on which KFC has an impact' #hey directly Company Competitors

a&&ect KFC’s ability to serve its customers #hree ma+or 

components in&luence KFC’s micro environment KFC

Consumers

Graphic 3 (ource! "otler et al #$$3) Micro %nvironment

CO*,E$I$O(S

3ecause the &ast &ood market in =ndia is highly competitive, KFC &aces a wide number o& 

direct and indirect competitors' KFC’s main competitors are &ast &ood chains such as

$c8onald’s and 8omino’s, which are already well established throughout =ndia'

$c8onalds’s in particular is a direct competitor, as they have already success&ully

introduced their %alads plus line Nhttpwww'theage'co'inM, which directly targets

healthy &ood’ conscious =ndians' 3ut, there are a number o& other competitors that is also

&ocusing on chicken’ types products' 1ll this competition makes it 2uite di&&icult &or 

KFC to maintain or even broaden their customer base' )owever, with the introduction o& 

a new and healthy product range, KFC can di&&erentiate itsel& &rom most competitors and

will gain a competitive advantage'

C&S$O*E(S

KFC’s customer market consists solely o& the consumer market NKotler M' KFC’s products

are bought by individuals Nmales, &emales, singles, and &amiliesM' #here&ore, the product

B
 

range KFC o&&er should appeal to as many people within this consumer market as

 possible, to ensure that the

ma"imum amount o& products can be sold' #he characteristics o& these individuals and a

segmentation o& them are discussed later in this report'

Stren!ths and wea2ness of competitor

S trengths ? products, 1ttractive Outlets, )uge $arketing, 3udget, $ore entertainment

&or kids

W eaknesses %ame type o& $enu, <o )ome 8elivery

How they compete their competitors 

=t is &ound that KFC compete its competitors by &ive ways

• KFC compete its competitors through marketing strategy

• #hey o&&ered di&&erent packages at di&&erent events like ramdan o&&er, midnight

o&&er etc'

• KFC compete there competitors by providing good services

• #hey must hired the hard selling persons to market their product in the market and

motivate their employees &or the sake o& organizations and employees do well and

they compete there competitors

KFC has 2uality products and through these 2uality products they compete their 

competitors

B?
 

Environmental factors and opportunities

,olitical -

#he operations o& KFC are a&&ected by the government policies on the regulations o& &ast

&ood operation' Currently government are controlling the marketing o& &ast &ood

restaurant because o& health concern such as cardiovascular and cholesterol issue and

obesity among the young and children in the country' Dovernments also control the

B>
 

license given &or open the &ast &ood restaurant and other business regulation need to

&ollow such as &or a &ranchise business' Dood relationship with government in giving

mutual bene&its such as employment and ta" is a must &or the company to succeed in any

&oreign market'

Economic-

#hough &or last : year their was economic slowdown all across the globe but the sales o& 

KFC and other &ast &ood chains did not slow down to that e"tent that o& other sectors in'

#he D8. N.urchasing .ower .arityM is estimated at '>@A trillion /'%' dollars in the year 

B-:B' #he D8.* per Capita N...M was B>-- /'%' dollars as estimated in B-:B' #he D8.*

real growth rate in B-:B was ?'S' =ndia has the third highest D8. in terms o& 

 purchasing power parity +ust ahead 0apan and behind /'%' and China' Foreign direct

investment rose in the &iscal year ended $arch : B-:to about :? billion &rom +ust

A'AA billion a year earlier' #here is a continuous growth in per capita income4 =ndia’s per 

capita income is e"pected to reach :--- dollars by the end o& B-::*:B &rom > dollars in

B-:B*:' #his will lead to higher buying power in the )ands o& the =ndian consumers' %o

taking into considerations the economic &actors o& =ndia KFC is sa&e' #he only danger to

it will be i& there is a terrorist attack in =ndia and the victim is KFC'

Socio cultural-

=ndia is the second most populous nation in the world with an appro"imate population o& 

over :':billion people' #his population is divided in the &ollowing age structure -*:B

years 7 ?'?S, :A*@E years 7 @>':S and @A years and above 7 AE':S'

-
 

#here has also been a continuous increase in the consumption o& &ast &ood in =ndia' #he

social trend toward &ast good consumption is changing and =ndia has seen an increase o& 

>-S &ast &ood consumption &rom the year B--* B-:B' #his increase is &ar greater than

the increase in the 3R=C nations o& 3razil NB- per centM, Russia NA- per centM and China

Nalmost @- per centM' #hus this shows a positive trend &or &ast &ood industries in =ndia'

$echnolo!ical-

#he =ndian &ast &ood =ndustry is heating up with a lot o& &oreign players entering the

=ndian market' #he technological knowhow and e"pertise will also enter the =ndian

market with an increase in competition' 9ith the lower rates and increase technology the

&ast &ood counters are attracting youth by giving them attractive deals' For e'g' KFC and

8omino’s pizza' For a &ast &ood restaurant, technology does not give a very high impact

on the company and it is not a signi&icant macro environment variables' )owever KFC

should be looking to competitors innovation and improve itsel& in term o& integrating

technology in managing its operation' For e"ample in inventory system, supply chain

management system to manage its supply, easy payment and ordering systems &or its

customers and wireless internet technology' =mplementation o& technology can make the

management more e&&ective and cost saving in the long term' #his will also make

customer happy i& cost savings results in price reduction or promotional campaign

discount which will bene&its them &rom time to time'

Environmental-

1s one o& world largest consumer o& bee&, potatoes and chicken, KFC always had been

critics &or world environmentalist' #his is because high consumption o& bee& causing the

:
 

green house e&&ect by methane gasses coming &rom the cow’s ranch' Large*scale

 plantation has e&&ect the environment and lost o& green &orest opening &or plantation

activities' Jegetarian environmentalist criticizes the &ast*&ood giant &or cruelty to animals

and slaughtering' =n 1merica, once KFC want to introduce whale burger causing uproar 

 because whales are endangered species' 3e&ore using paper packaging, KFC once had

 been criticized &or being insensitive to pollution because o& using ne based packaging &or 

its &ood products' =magine millions o& people purchase &rom &ast &ood operator and how is

the impact to world environment by throwing away those hard to recycle packaging'

Our world is getting concern on environment issue and business operating here should

not +ust care &or pro&it, but care&ul usage o& world resources &or sustainable development

and care &or environment sa&ety and health &or our &uture generation' Critics and concern

&rom all public or activist should be review and support i& necessary to ensure we play

our social responsibility better'

+e!al factors-

1s a certi&ied &ast &ood operator, there are many regulations and procedures that KFC

should &ollow' For e"ample is the )alal certi&ication that becomes a concern to $uslim

consumers' KFC should protect its integrity and consumer con&idence by ensuring all

materials and process are as claimed or must &ollowed'

Other legal re2uirement that the business owner should &ollow as stipulated in laws are

such as operating hours, business registration, ta" re2uirement, labor and employment

laws and 2uality ; environment certi&ication Nsuch as =%OM in which the outlet has been

B
 

certi&ied' #he legal re2uirement is important because the o&&enders will be &ined or have

their business prohibited &rom operating which can be disastrous'

"oston Consultancy roup "C *atri

/uestion *ar2-


 

Currently KFC have launched a new product in the market' #hey have also tried to come

into the beverages market by launching its new brand o& shakes called KR/%)!R%' 1s it

is a &airly new product it comes in the category o& the Guestion $ark in the 3CD $atri"'

=t has a low market share thus brings low revenue' KFC is advertising a lot to popularize

this product so there is a lot o& e"penditure on it' #his product is individually not bringing

any pro&its and is a cash drain &or the company' Company may decide to completely

remove this product &rom the market i& it does not do well soon and start bringing in

revenue'

DO-

KFC’s Jeg #hali comes under this category' 1lthough company had launched this

 product much earlier, it has still &ailed to become a success' 1s KFC is known more &or 

its non*veg &ood, this also results in low demand &or this item' =t has a low market share

and although low on e"penditure Nas company does not spend on its promotionM, it does

not bring in much revenue as demand is low' #he product is mostly C1%) <!/#R1L'

C)SH COW-

KFC’s Chicken 3ucket is the most success&ul product o& the company' =t has the highest

market share amongst all the other products' =t has good demand in the market and brings

in huge sales revenue'

S$)(-

#he star product o& the company is its crispy 3oneless Chicken' =t has a high market

share and brings in high revenue' 3ut it also has high developmental e"penditure

E
 

involved' #he pro&it there&ore is generally not very high brought in by this product' #his

 product is C1%) <!/#R1L &or the &irm' #he company is trying make this product a

cow as well, by reducing the e"penditure

Summary of current situation

SWO$  analysis mean strength, weakness, opportunities and threats and the SWO$

analysis o& KFC are

S$(EN$HS

A
 

 oodwill and reputation  #he company certainly has earned a good name and

reputation by its previous products and services in the market' =t is even more

recognised in other markets outside =ndia, where the company is among the

leading &ast &ood giants' #he brand is recognised and trusted in =ndia &or its

2uality products, price, and customer service' =t there&ore has a good head start

and en+oys a good chance o& becoming a leader in =ndian &ast &ood industry'

 Employee +oyalty  !mployee Loyalty is one o& the ma+or strengths o& KFC' #he

turnover rate in the company is amongst the lowest in the industry'

 Customer +oyalty 8espite gain by 3oston $arket and Chick*&ill 1, KFC

customer base remained loyal to the KFC brand because o& its uni2ue taste'

KFC has continued to dominate the dinner and take out segment o& the

=ndustry'

 (an2s hi!hest amon! all chic2en restaurant chains   &or its convenience

and menu variety' =t generates :3 revenue each year'

 WE)KNESSES

 KFC was losin! mar2et share   as other Chicken chain increased sales at a

&aster rate'

@
 

 KFC share o& Chicken %egment sales &ell &rom : percent :>>> , to less than

@- percent in B-:E , a :- *years drop o& :- percent'

 )uge competition in this segment'

 India is still mostly a ve!etarian dominated cultured society ' %outh =ndia is

especially very much so' #his may reduce the market share o& the company'

 KFC has not yet invested much on R;8, and innovating new products &or 

=ndian $arkets' #his may lead to &ailure o& their products as they are not in

line with the =ndian mind set, peoples taste and pre&erences and their likes and

dislikes' #his may prove &atal &or the company'

O,,&($&NI$IES

 New *ar2ets Dlobalisation has opened doors &or new markets &or the company'

1s the developed markets are mostly saturated, the developing countries like

=ndia and China promises a good market and generation o& demand in the &uture'

9ith more than -S o& the markets in india being une"plored and un organised,

KFC has a good scope o& e"panding its operations in the country'
 Cross Culture  Denerally there is a good acceptance o& 1merican culture o& &ast

&ood in =ndia' .eople are opening up to &ast &oods more regularly in their daily

lives and not +ust keeping it a once in a month a&&air' #hus =ndian mindset is &ast

changing'


 

 +ar!e 'outh population  =ndia has a very large share o& youth population a

compared to other countries' $ore than @-S o& the population is under the age o& 

-yrs' 1s the young generation are more open to &ast &oods and demand it more,

this is a good news &or the company'

  New variety-  Company can also come up with new variety in the menu like

.izzas, garlic breads to attract more customers'

$H(E)$S

 Competition-   Competitor companies like $c8onalds are &ast catching up

with the market'$c8onald’s with sales o& more than :> billion in :>>>,

accounted &or :A percent o& the sales o& the nation’s top :-- restaurant chains'

 Organisations like .!#1 .eople &or !thnic #reatment &or 1nimals have given

a bad name to the company which may prove disastrous to the image o& the

&irm' Currently, KFC is under massive attacks &rom animal organisations,

2uestioning the way KFC’s suppliers are threatening the chicken, be&ore they

got slaughtered' 1nti*KFC campaigns, such as the one &rom .!#1 are

a&&ecting KFC’s brand image in a negative way and result in direct dollar 

losses, as less people are consuming KFC chicken

 Saturated &S *ar2et  <ow KFC cannot rely on +ust its home market to

generate sales' 1s the /% markets are already saturated and leave no or little

?
 

scope &or growth, company necessarily needs to look at o&&shore &oreign

markets to generate sales and keep up the pro&its'

*)(KE$IN S$()$EIES OF KFC

>
 

#here are di&&erent strategies adopted by KFC &or di&&erent events' #hey market their 

 products on di&&erent events and in di&&erent activities as they are helping %O% village'

1ccording to KFC, kids become the &uture permanents customers and we know very well

that without any marketing strategy no marketing program and no product is success&ul

 because we depend upon customers, customer not depend on us'

KFC is &ollowing <iche $arketing and %ocietal $arketing techni2ues'

 KFC possess a western culture because some o& the =ndian people are also

&ollowing that culture'

 KFC are moving &rom 8ivisional Level to the 8istrict level by opening branches

 KFC also o&&er &ree home delivery'

 KFC open their outlets on reachable places'

 KFC menu consists o& more than - products'

 KFC gives more priority to Family'

*)(KE$IN 

%ince :>?B, KFC’s 51ll*1merican salute to $others6 national card contest has been

KFC’s way o& honoring moms and their &amilies &or making mother’s 8ay KFC’s biggest

sales day o& the year' #he contest encourages children to creatively e"press their &eelings

E-
 

&or their moms by making a homemade card and give them chance to compete &or more

than :-,--- in cash and prizes' !ducational packets, including language, history and art

e"ercises highlighting $other’s 8ay, were sent to thousands o& schools nationwide'

#here are E .’s o& $arketing

:' .RO8/C#=O<

B' .R=C=<D

' .RO$O#=O<

E' .L1C!$!<#

:8,roduction-

3asically the product is anything that be o&&ered to a market &or attention, ac2uisition,

use, or consumption that might satis&y a want or need' KFC is specially dealing in the

chicken products4 3asically, KFC has the special raspy &or chicken products that is why,

KFC known as a chicken specialist allover the glob' KFC target the 1sia and east side

 because they observe that they people are like the chicken products, so they enter in the

market due to the demand o& their chicken products' KFC product variety o& product in

the chicken, those products are

.RO8/C#%

E:
 

• Original recipe chicken

• !"tra #asty Crispy#$ chicken

• )ot 9ings#$ pieces

• #ender Roast chicken

• Chunky Chicken pot pie

• Kentucky <uggest

• Colonel’s Crispy %trips

• )oney 33G sandwich

• Original Recipe %andwich

• #ender Roast %andwich

• #riple Crunch %andwich

• #riple Crunch Iinger %andwich

3R1<8

#here are three brands o& the KFC

:M #aco bell

BM .izza )ut

M Long +ohn silvers

98,ricin!-

EB
 

KFC during pricing their products keep the di&&erent points in the mind like they adopt

the cost base price strategy' .ricing o& the product includes the Dovernment ta"es and

e"cise duties and then they come at &inal stage o& determine the price o& their products'

KFC prices o& products are a bit high according to the market segment and it is also

compatible to the stander o& their products'

Calculation o& the price under Cost 3ased .ricing %trategy

$otal ,ounds of Chic2en Served in KFC (estaurant )nnually  T :'>:E 3illion

$otal KFC Chic2en ,ieces Sold )nnually  T A'?> 3illion

$otal (etail Sales  T ?'> 3illion

Sales ,rice of per Chic2en ,iece   T #otal Retail %ales  Chicken .ieces sold

T ?'> 3illion  A'?> 3illion

T:'A:

9e assume that Fi"ed Cost is T @---------

%aria.le Cost T @A------

,rofit *ar!in is Or $ark /p T BBA------NBAS o& %alesM

.er /nit Jariable Cost T @A------  A?>-------

T  -'::A

E
 

&nit Cost T Jariable Cost U Fi"ed Cost  Chicken pieces %old

  T -'::A U @---------  A?>-------

  T -'::A U :'-B

  T :':A

 <ow suppose manu&acturer wants to earn BAS mark up on sale' #he manu&acturer mark 

up price is calculated

*ar2 &p ,rice T /nit Cost  N: 7 8esired Return on %alesM

T:':A  N:*'BAM

T :':A  -'A

T :'A:

:8 ,romotion-

.romotion is one o& the necessary plates in any &orm o& business or in other words you

can say that promotion is the key o& success' =& you promote your product at the right

time' KFC also known the importance and signi&icance o& promotion so they uses the bill

 boards the ma+or source o& advertisement and one o& the most important thing that they

uses media especially the newspapers to promote their products' #hey are also creating

awareness among the masses about their e"isting product range as well they tell us about

the &uture product'

$arketing e&&orts to be taken by the restaurant

EE
 

 .aste delivery posters at petrol pumps, &lats, colleges, plazas, and departmental

stores'

 8istribution o& delivery &lyers in residential areas, markets, plazas and institutions

Nas per the planM

 Jisit o&&ices and business places'

E' ,lacement 

=n the case o& the KFC the placement o& the product is not important but the placement o& 

the restaurant is important' #he products o& the KFC is cooked at the sport and then

served a&ter that' KFC Cavalry branch opened in 0une :>>?, in the main commercial zone

o& Cavalry Drounds near the 0innah Flyover' #he restaurant is a three*story building

including the basement Nwhere the chicky play area is locatedM' =t is ideally located in the

center o& a main commercial and residential area o& Lahore' #he area that KFC Cavalry

caters &or is the residential and o&&ice area o& Cavalry Drounds and Cantt, as the main

target market' 1nother branch the KFC opened in the Lahore is in Darden #own Nopposite

to 3arkat $arketM' KFC also target the Faisalabad and open its branch in 8 ground' <ow

we can easily +udge that the KFC target the place &or their restaurant, which is well

known and is in the .orsche area where the income level o& the people is high then the

middle class level' 3ecause the prices o& the KFC products is high with comparison to the

local products manu&acturer who are dealing in the same kind o& product in which KFC is

dealing but the prices o& the KFC is high due to special taste, high 2uality, and due to

EA
 

international brand, it is the world recognized &ast &ood restaurant all around the world'

%o, &or the placing strategy, KFC chose the well income class area &or their restaurants'

,roduct Issues

eneral description-

Features-

/uality Control Over In!redients

Every Chic2en $ested

K ; <’s state*o&*the*art Guality 1ssurance Lab monitors the entire integration process

&rom livestock to &eed and on to preparation o& ready*to*cook and cooked products'

Every Chic2en Certified

)1CC. 7 K ; <’s ensures &ood sa&ety by implementing the international )1C. NFood

%a&ety %ystemM and en+oy the uni2ue privilege o& being the &irst and only )1CC.

certi&ied company is =ndia producing chicken and chicken products' Free &rom diseases

and bacteria, drug residues and other contaminants'

E@
 

,ac2a!in!

9e are asked as many 2uestions on our packaging as our products by our customers' #he

 packaging &or KFC  products is chosen according to per&ormance against three key

criteria

)eat Retention

$oisture removal

Drease absorption

#he packaging material and carton design are all adapted to ma"imise per&ormance

against these three criteria'

(ecycled ,aper

1ll our clamshells and chicken bo"es contain as much recycled material as it is legally

allowed' 3y law we are re2uired to have virgin &ibre board in any part o& the packaging

that is in contact with &ood' 1ny virgin &ibre comes &rom board suppliers who use pulp

 bought &rom managed &orest in %candinavia' #his ensures that any wood cut &or paper 

 production is replaced with new plantings'

Environmental concerns

Over and above ensuring our packaging is supplied via recycled or renewable resources4

E
 

KFC are enthusiastically complying with the new environmental directives on recovery

and recycling o& packaging waste'

+itter

9e at KFC /K= are aware o& our responsibilities to the $anagement o& Litter and all our 

 packaging carries the Keep your Country #idy’ signs

"randin!

#his research measured and compared the brand identity o& Kentucky Fried Chicken

NKFCM in =ndia' 3rand identity was de&ined as the customer impressions o& &our di&&erent

KFC identity elements * properties, products, presentations, and publications' 1 survey o& 

young consumers in the countries Nn T >AM, showed that the respondents were more apt

to eat within KFC restaurants, and spend more time doing so, than the 1mericans' #he

Chinese also had much more positive impressions o& KFC' 3rand identity impressions

were correlated with overall customer satis&action and with &uture patronage intentions

&or both groups' #hese &indings support a model where di&&erences in cultural &rames o& 

re&erence lead consumers to actively localize the brand identity o& this nominally

globalized product'

E?
 

 ,romotion Issues

Sales promotion

For the sales pormotion KFC introduced their goods like watches , keychain, e't'c to the

customers'

)dvertisment

#he advert titled .ool was done by OD=LJ ; $1#)!R, <ew 8elhi advertising agency

&or KFC I=<D!R 3/RD!R NKFC companyM in =<8=1' =t was released in the 0une B-:E'

3usiness sector is Fast &ood outlets ; restaurants'

One o& KFCPs latest advertisements is a commercial advertising its Vwicked crunch bo"

mealV' #he commercial &eatures a &ictional band called V)ellveticaV per&orming live, the

lead singer then swallows &ire' #he commercial then shows the lead singer at a KFC

eating the Vwicked crunch bo" mealV and saying VOh man that is hotV'

=n B-:E, the original, non*acronymic Kentucky Fried Chicken name was resurrected and

 began to reappear on company marketing literature and &ood packaging, as well as some

restaurant signage'

FEED &S ")CK 

E>
 

78 $ic2 'our Choice    

,erfec ).ove )vera!e "elow ,oor

t )vera!e )vera!e
Food /uality
Food $emperature
Waitin! $ime
*enu "oard
Sittin! )rran!ement
(estaurant $emperature
*usic
(estaurant Cleanliness
Overall Eperience

98 When will you .e .ac2

  <e"t time = blink Nvery soonM

 $ay be sometime later 

 9hen = win a <obel .rize N<everM

:8 How many people were in your !roup

 = was alone

 0ust me and someone

 For me, three is company

 E or more

;8 Would you rather order than Dine in

  aa, = like to mostly order at home

A-
 

  %ometimes, but = mostly like to dine in

   <o &un without 8ine in

<8 How close is your house to your nearest KFC outlet

  9ithin : Km

  3etween : 7  Kms

  3etween  7 A Kms

 1bove A Kms

=8 Do you want a KFC home delivery service

 $y dreams are coming true

 #hat would help

 8oesn’t make much o& a di&&erence

  <o thanks

$han2 'ou

D)$) )N)+'SIS

#he data we received is as &ollows*

A:
 

9e did a survey on KFC on people with age group o& mostly B-*BAyrs' $ostly all were

open to non*veg &ood, and &ollowing were the results' 1s seen below KFC has shown a

good report on all the micro &actors that we considered'

5
4
3
2
1
0 5 Perfect , 1 Poor

 9e also asked 2uestions on whether they would like KFC to start homedelivery

services

&( not re)*ired

Ma%es &o di'erence

Percenta-e

 !" #e$nitely

0 20 40 +0 0 100

9e also in2uired 5How close is the nearest KFC outlet from your house

AB
 

bove 5/m 5

.ithin 1/m +0

  Would you li2e to order at home or Dine in

3+1
341
321
301
2,1
2+1

A
 

CONC+&SION

=t is clear &rom the above report that a high number o& people actually like to order &rom

their home or workplace rather than coming' #his may be due to more convienence, time

shortage or +ust not willing to come and dine' Certainly the home delivery market is huge

and KFC can take well advantage o& the situation' is clear &rom the above report that a

high number o& people actually like to order &rom their home or workplace rather than

coming' #his may be due to more convienence, time shortage or +ust not willing to come

and dine' Certainly the home delivery market is huge and KFC can take well advantage

o& the situationis clear &rom the above report that a high number o& people actually like to

order &rom their home or workplace rather than coming' #his may be due to more

AE
 

convienence, time shortage or +ust not willing to come and dine' Certainly the home

delivery market is huge and KFC can take well advantage o& the situation#his may be

due to more convienence, time shortage or +ust not willing to come and dine' Certainly

the home delivery market is huge and KFC can take well advantage o& the situationn as

 possible and capitalise on the opportunity' KFC e"pects a rise in the orders by at least

B-S by starting this service'

$herefore3 to conclude we would say that KFC should definitely have a home

delivery service8

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: $agazines

1M !CO<=$=C!% #=$!%

B' 9ebsites 7 

1M www'zomato'com

3M www'iloveindia'com

CM www'businesswireindia'com

8M www'thebusinessedition'com

!M httpswww'k&c'co'inhistory'php

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M 3ook 

1M .hilip kotler study o& market

E'KFC R10O/R= D1R8!<

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