KFC IN INDIAETHICAL ISSUES.PRESENTED BY

ATUL SONDAWALE

BACKGROUND OF KFC

• 1.KFC is based in corbin,kentucky,U.S and is the world’s most popular chicken restaurant chain.

• 2.founded by colonel harland sanders in the early 1930s by cooking & serving food for hungry travellers.

• 3.in 1952 sanders started franchising his chicken business & named it as KENTUCKY FRIED CHICKEN

• KFC is part of yum! Brands,inc.the world’s largest restaurant company in terms of system restaurants, with more than 36000 locations around the world.

Continu………

• 1. KFC operates more than 15000 units in 109 countries and territories around the world.

• 2 every day, more than 12 million customers are served at KFC restaurants.

• 3.KFC is world famous for its original recipe fried chicken- made with the same secret blend of 11 herbs and spices.

• 4.customers around the globe also enjoy more than 300 other products- from KFC.

CONTINUE………

• 1 the company is ranked 239 on the fortune 500 list,with revenue in excess of $10 billion in 2008.

KFC’s Entry in INDIA

• 1.KFC.was the first fast food multinational to enter INDIA, after the economic liberalization policy of the indian govt.in early 1990s.

• 2.KFC received permission to open 30 new outlets across the country.

• 3.KFC opened first fast food outlet in banglore in june 1995 by targeting upper middle class population.

• 4. pepsi Co. planned to open 60 KFC and pizza hut outlets in next 7 yrs in the country.

ISSUES

• 1.Govt.was criticized for granting permission to multinational food giant.

• 2.threat to domestic business.• 3. nationalists feared a cultural invasion.• 4.Nutritionists highlighted the high rates of

obesity, hypertension, heart disease and cancers.

• 5.monosodium glutamate (MSG) controversy

PROBLEM FOR KFC

• 1.protests by angry farmers led by the karnataka rajya ryota sangha.(KRRS).

• 2 protests by ecologist.• 3. protests by PETA.support of celebrities in

against of KFC.• 4.non-conformity with food products

regulations.

KFC SWOT

ANALYSIS

STRENGTH

• 1.World’s largest restaurrant company in terms of system restaurants,operates more than 15,000 units in 109 countries and territories around the world.

• 2.KFC is world famous for its original recipe fried chicken- made with the same secret blend of 11 herbs and spices.

• 3.ranks highest among all chicken restaurant chain for its convenience and menu variety.

• 4 Generate $1B each year

WEAKNESS

• 1. LACK OF KNOWLEDGE ABOUT THEIR CUSTOMERS.

• 2. LACK OF FOCUS ON R&D.• 3.MSG FLAVOUR IN CHICKEN.

OPPORTUNITY

• 1. RETAIL BOOM IN INDAI• 2. INDIANS YOUTH ARE ADOPTING WESTERN

CULTURE• 3. INDIAN ECONOMY.• 4 METROPOLITAN RAPID DEVELIPMENT

THREATS

• 1.INDIAN RECIPIES LIKE TANDOORI CHICKEN • 2.PETA AND KRRS LIKE ORGANIZATIONS.• 3. POLITICAL PARTIES PROTESTING FOR JUNK

FOOD.• 4. PROTEST SUPPORT FROM FAMOUS

PERSONALITIES LIKE ANIL KUMBLE, ADITI GOVITHRIKAR , JOHN ABRAHAM ETC.

PESTEL ANALYSIS

• 1.POLITICAL • 2.ECONOMIC• 3. SOCIAL• 4. TECHNOLOGICAL• 5.ENVIRONMENTAL • 6. LEGAL

MARKETING CONCEPTS

• NEEDS—a consumer needs food• WANTS--- they want chicken or other non veg• DEMANDS—but they demands KFC’s fried

chicken

TARGET MARKETS

• 1.AS the outlets of KFC are in posh area and prices are too high (overhead expenses-rent, air –conditioning , employees),

• 2. KFC targets upper and middle classes ,youth

• 3. target market depends upon size and growth rate of population,

MARKET SEGMENTATION

• 1.Geographic segmentation: in india KFC focuses how geograpgically its customers demand different products.

• 2.Demographic segmentation: in demographic segmentation, the market is divided into groups based on an age , gender, family size, income, occupation, religion, race and nationality.

• 3.psychographic segmentation: in this segmentation ,the market is divided into middle class &upper class.

PRICING STRATAGY

• 1.their products are priced high and target the middle to upper class people.

• 2KFC adopt the cost base price strategy.• 3. pricing of the product includes the govt.tax and

excise duty.• 4 the products are bit high priced according the

market segment and it is also comparable to the standard of their product.

• In the cost based method we include the variable and fixed cost

PROMOTION

• 1.ADVERTISING• 2 SALE PROMOTION• 3 PUBLIC RELATION • 4. EVENTS AND EXPERIENCES• 5. COUPONS, DISCOUNTS AND BUNDLED

PACKAGES

COMPETITION

• 1.We can compare the price of their products with mcdonald, dominoes,and pizza hut.

• 2 if the competitior provides the same product at a lower price then the organization usually lower the price of its product too.

• 3. in the case of kfc,fried chicken is its main selling point and controls a monopoly ovar the indian fast food market (only with fried chicken)

• 4 . It prices its burgers ,french fries and soft beverages with relation to its competitors.

SOCIAL MARKETING

• # TWITTER• # GOOGLE+• facebook

RECOMMENDATIONS

• * the company should be able to use an ethical management strategy that will uplift the image of the company.

• 2. uses of marketing knowledge ,concepts and techniques as well as with the social consequences of marketing policies, decisions, and actions.

• 3. every business organization should understand the importance the culture,regulatory & ecological issues in different countries.

Thank you