Imran Pathan

7/23/2019 Imran Pathan

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ACKNOWLEDGEMENT

I would like to express my deep sense of gratitude towards the Faculty and the seniors

around us, for their guidance and encouragement throughout the period of the project

study. I am indebted to their guidance, spirit and valuable suggestions.

I would also like to thank KFC and its employees, who has been a continuous source of

inspiration for me throughout the curriculum.

I would like to thank everyone who has been a help directly or indirectly leading to the

successful completion of the study report.

I am also greatly thankful to the faculty members of our institute who cooperated with

me and gave me their valuable time.

!



CONTENTS

Contents

Contents "age no.

1. #cknowledgement $

2. Introduction %

3. Company profile &

4. "roduct line '

5. (alues of kfc )

6. *arget market !+

7. Competitive analysis !$

8. "orter analysis !

9. -C /atrix !'

10./arketing strategy $!

11.012* analysis $%

12.3uestionnaire !

13.Findings $4

14.Conclusion !

15.-ibliography $

$



Introdut!on o# Co$%&n'

KFC Corporation, based in 5ouisville, Kentucky, is the world6s most popular chicken

restaurant chain, speciali7ing in 2riginal 8ecipe 9, :xtra Crispy */, and Colonel6s Crispy

0trips9 chicken with home style sides and five new freshly made sandwiches. :very day,nearly eight million customers are served around the world. KFC6s menu everywhere

includes 2riginal 8ecipe9 chicken;made with the same great taste Colonel <arland

0anders created more than a halfcentury ago. Customers around the globe also enjoy

more than ++ other products;from a Chunky Chicken "ot "ie in the =nited 0tates to a

salmon sandwich in >apan.

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

restaurants in the =nited 0tates and several other countries. #nd in ?uite a few =.0. cities,

KFC is teaming up with other restaurants, *aco -ell and "i77a <ut, selling nearly fifty

years ago@ Colonel 0anders invented what is now called Ahome meal replacementB

selling complete meals to harried, timestrapped families. <e called it, A0unday Dinner,

0even Days a 1eek.B

*oday, the Colonel6s spirit and heritage are reflected in KFC6s brand identity the logo

features Colonel <arland 0anders, one of the bestrecogni7ed icons in the world.



K(C )!*tor'

KFC is an internationally renowned fast food industry in the world. *hey have the main

ambition to increase E maintain the ?uality in fast food industry. *heir aim is to capture

the fast food market. -asically they want to provide their products to anyone that is why

they expanding their branches in all over the world. *hey want to increase their profit

through giving maximum satisfaction E other better facilities to people that they want.

ow after catching such a marvelous position in the International /arket, KFC is

introducing a new item A-oneless Fried ChickenB, with even more attractive and

charming taste.

Co$%&n' o+,r+!,-

Colonel <arland sanders, born 0eptember 4, !)4+, actively began franchising his chicken

business at the age of &G. ow, the Kentucky fried chicken business he started has grownto be one of the largest retail food service systems in the world. #nd colonel sanders, a

?uick service restaurant pioneer, have become a symbol of entrepreneurial spirit. /ore

than two billion of the colonel6s Afinger licking6 goodB chicken dinners are served

annually. #nd not just in #merica. *he colonel6s cooking is available in more then )$

countries around the world.

1hen the colonel was six, his father died. <is mother was forced to go to work, and

young <arland had to take care of his three year old brother and baby sister. *his meant

doing much of the family cooking. -y the age of seven, he was a master of a score of

regional dishes. #t age !+, his first job working on a nearby farm for H$ a month. 1hen

he was !$, his mother remarried and he left his home near <enryville, Ind., for a job on a

farm in reenwood, Ind. <e held a series of jobs over the next few years, first as a !G

yearold streetcar conductor in ew #lbany, Ind., and then as a !&yearold private,

%



soldiering for six months in Cuba. #fter that he was a railroad fireman, studied law by

correspondence, practiced in justice of the peace court, sold insurance, operated an 2hio

8iver steamboat ferry, sold tires, and 2perated service station. 1hen he was %+, the

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

K. <e didn6t have a restaurant then, but served folks on his own dining table in the

living ?uarters of his service station. #s more people started coming just for food, he

moved across the street to a motel and restaurant that seated !%$ people. 2ver the next

nine year, he perfected his secret blend of !! herbs and spices and the basic cooking

techni?ue that is still used today.

G



K(C Ind!&

KFC is the world6s o.! Chicken 308 and has industry leading stature across many

countries like =K, #ustralia, 0outh #frica, China, =0#, /alaysia and many more.

KFC is the largest brand of um 8estaurants, a company that owns other leading brands

like "i77a <ut, *aco -ell, #E1 and 5ong >ohn 0ilver. 8enowned worldwide for it6s

finger licking good food, KFC offers its signature products in India tooJ KFC has

introduced many offerings for its growing customer base in India while staying rooted in

the taste legacy of Colonel <arland 0ander6s secret recipe. Its signature dishes include the

Acrispy outside, juicy insideB <ot and Crispy Chicken, flavorful and juicy 2riginal

8ecipe chicken, the spicy, juicy E crunchy inger -urger, *oasted *wister, Chicken

-ucket and a host of beverages and desserts. For the vegetarians in India, KFC also has

great tasting vegetarian offerings that include the (eggie -urger, (eggie 0nacker and (eg

8ice meals. In India, KFC is growing rapidly and today has presence in !! cities with

close to G+ restaurants.

&



Go&/* o# K(C

-uild an organi7ation dedicated to excellence.

Consistently deliver superior ?uality and value in our products and services.

/aintain a commitment to innovation for continuous improvement and grow, strivingalways to be the leader in the market place changes.

enerate consistently superior financial returns and benefits our owner and

employees.

*o establish in India our position as leading 1308 L1estern 3uick 0ervice 8estaurantM

chain, serving good value. Innovative chickenbased products consistently, providing a

pleasant dining experience, with fast friendly, in a clean and convenient location. #t all

times we must be dedicated to providing excellent and delighting customers.

'



rodut L!n,*

Kentucky fried chicken

inger burger

Crushers

ame -ox

*wister

-ox master

Chicken -ucket

<ot wings

Fries

Corn on the cob

ing Kong

0nacker Lchicken E veggieM

(eggie Feast

0oft Drink

Coleslaw

Chicken *hali

(eg Finger0nack -ox

0undae

0oft *wirl

-rownie 0undae

)



&/u,* o# K(C

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

our customers.

8eward and respect the contributions of each individual at KFC.

:xpand and update training with time and be the best we can be and more.

-e open, honest and direct in our dealings with one and other.

Commit ourselves to the highest standard to the personal and professional integrity at

all times.

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

growth.

8eward result and not simple efforts.

Dedicate ourselves to continuous growth in sales, profit and si7e of organi7ation.

1ork as a team.

4



)ILOSO) O( K(C

T, C)AMS ror&$

Champs stands for our belief that the most important thing each of us can do is to focus

on the customer. It stands for our commitment to provide the best food and best

experience for the best value.

C<#/"0 stand for the six universal areas of customer expectation common to all

cultures and all restaurants concepts.

!+



T)E C)AMS

*hese areN

Cleanliness

)ospitality

Accuracy

Maintenance of Facilities

roduct 3uality

S peed of 0ervice

C)AMS is the philosophy to ensure that the customer has the consistent ?uality

experience in every restaurant, every day, on every occasions and you will be playing role

in delivering C<#/"0 to our customers.

!!



Curr,nt t&r,t $&r,t

S,$,nt&t!on KFC has divided the market of India into distinct groups of customers

with different demands, tastes and behavior who re?uire separate products or marketing

mix.

In India the niche marketing is being used for particular classes of people.

*hey have made segments of the market on the following bases.

Demographical

-ehavior

eographical

-y using these three bases they segmented the market as under.

!$



DEMOGA)ICAL ASIS

In demographics their first segment is consisted of the income factor i.e. high income,

average income and low income.

E)AIO

In behavioral aspect they segmented the market on the basis of ?uality, taste and price.

Following are the different possible segments in this regard.

*aste conscious

3uality conscious

Class conscious

Combination of price and ?uality

!



GEOGA)ICAL ASIS

2n the basis of the geographical factor we have divided our market in three main

segments.

=rban areas

0ub urban areas

"rofile criteriaN

enderN KFC is for each gender both male and female.

IncomeN :veryone can use the KFC service upper and middle class.

#ge : age limitation for using this product above !G.

2ccupationN -y profession also everyone can use this product means businessman

student workers and other peoples.

:ducationN It has no need more education that why the person who know something

can easily enjoy with this product.

Family life cycleN KFC is suitable in every stage of life like single married couple and

also those who have children can use this product.

5ifestyleN *his product is used in every level of social class like upper, middle class.

#ttitude N 1hen the customers once buy this product after that they can use the

product continuously.

"urchasing decisionN 2ften KFC changes the purchasing decision of customers

because of its good attributes.

eographic regionN eographically KFC is used in every part of the country as well

as all over the world.

"roduct positioningN Customer perceive this product as a uni?ue product that other

are not giving.

#ttitudesN *he attitudes of the public is very good people like our this new product

like others.

!%



"urchasing processN /any people come from home to eat this , and some make

impulse decision as they saw it .

Co$%,t!t!+, &n&/'*!* Co$%,t!tor*

ou cannot enjoy the business without competitors. o organi7ation can afford to ignore

their competitors. It is very important for a marketing managers to monitor the activities

of their competitors, what they are doingO KFC adopted such sort of strategy that there is

no competitor for spicy chicken, which is made by KFC.

KFC beats its competitors through the revising marketing strategy at every movement but

the main competitor of KFC are /c Donald.

COMETITIE ADANTAGE

K(C MDon&/d*

0picy "roducts

Indian people like spicy products instead of

boiled food

-urger and French Fries

#rabian 8ice and inger -urger -ig /acFree Delivery Charges for home delivery

Chicken is eaten by every community -eef is banned in some community

5ocal 0taff and <ighly 3ualified because

local staff can better deal with the

customers

Its 0taff consist of simple raduates and

give them training

KFC uses *op to -ottom and -ottom to

*op #pproach in /anagement.

/cDonalds =ses *op *o -ottom #pproach.

KFC is Cobranding with 1alls o such Case.

!G



ort,r* #!+, #or,*

Entr'

For the current Indian market for fast food, it is not difficult for a fast food restaurant to

enter the market. <owever, it would be extremely difficult to take over already running

major fast food chainsP dominancy in India or even make a significant amount of profit.

1hile there are enough people in urban India for any restaurant to survive, KFC holds the

firstmover advantage into the Pnonveg food specialty food segmentP that gives them free

reputation. Customers, especially children who are used to going to KFC as a treat or reward from their parents or grandparents, are not going to want to go to other restaurants

they6ve never heard of. *he brand name is already established. #lso, there is already a

large variety in the numerous westernstyle dining places in India, such as

/cDonald6s, "i77a <ut, DominoPs and 0ubway, and any new fastfood entrants would

just be presenting something very similar to what6s already there. 1hile small

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

entry for similar restaurant businesses to enter the fastfood chain market.

u',rSu%%/!,r &r&!n!n o-,r

*he customers of KFC, especially as individual buyers, have almost no bargaining power

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

lower its price because the cost of losing one customer is not very great. *he suppliers,

like the buyers, have very little bargaining power.

In terms of food, KFC, upon its move into India, urged many of its =.0. suppliers to also

extend branches into India. 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 from the

=.0. can now be obtained domestically, and if the =.0. suppliers decide to raise their

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

1ith this strategy, KFC created competition among its suppliers, lowering the supplier

!&



-argaining power. In terms of human resources, labor cost is extremely low because the

supply of nonskilled workers great exceeds the demand for them.

Su:*t!tut,* &nd Co$%/,$,nt*#s mentioned above, there are a few major competitors in the fastfood industry

in India for KFC, namely /cDonald6s, "i77a <ut, DominoPs and 0ubway. *he substitute

products, in this case, would be burgers, pi77a, and sandwiches. *hough they are

competitors, their primary products differ greatly from each other, in that they sell,

chicken, burgers and fries, pi77as, and sandwiches, respectively. *raditional Indian

dining, homecooked meals, and grocery stores with readytoeat foods are also

substitutes, as families could choose any one of these over fast food for a meal. *hese

substitutes are definitely considered healthy as compared to the fast food chains. :ven

foods from street vendors count as substitute goods

1hile other fast foods serve as substitute to KFC, they can also serve as complements for

fast foods as a whole. If the general price of fast foods goes up, KFC6s price rises as

well, and the same can be said of the ?uantity sold of 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.

!+&/r'

=nlike what one would expect, KFC has little rivalry with similar fastfood chains in

India. *he primary reason is that their core products are different, as in they sell different

kinds of fast foods with very different tastes and styles. For example, if KFC raised its

price for chicken by a small amount, Indian chicken lovers who may not be as accepting

to pi77as Lmany Indian people strongly dislike the taste of cheeseM are not going to switch

to "i77a <ut just because the price for KFC increased. In addition to that, these

restaurants have such different target customers that the fluctuation of price for one

restaurant is not going to affect the others. For example, a full meal at KFC ranges about

8s. !++, whereas a full meal at "i77a <ut can cost over 8s.++. *he drastic difference in

price assures no price competition between these restaurants.

!'



K(C Out/,t* !n D,/!

K(C !n C,ntr&/ D,/!

#!$, Inner Circle,

C", Delhi!!+++!

0tore *imingN)N+am to !!pm

K(C !n No!d&

0ector !),

oida $+!+!

0tore *imingN!!am to !!pm

reat India "lace,

oida$+!+!


K(C !n Sout D,/!

-ack 1ing,

0elect Citywalk /all,

0aket, Delhi!!++!'


(asant 0?uare /all,

(asant Kunj!!++'+0tore *imingN!!a.m. to !! p.m.

K(C !n W,*t D,/!

City 0?uare /all,

8ajouri arden,

Delhi!++$'


(ikas 0urya "la7a,

0ector %, Dwarka,

Delhi!!++'G

0tore *imingN!! am to !! pm

-elow etaji 0ubhash "lace /etro

0tation,

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"itampura, Delhi!!++%


K(C !n E&*t D,/!

0hipra /all,

Indirapuram, Delhi$+!+!$


(0 /all,

5axmi agar, Delhi!!++4$


K(C !n Gur&on

>/D 8egent /all,

/all 8oad,

urgaon

0tore *imingN!! am to !! pm

#mbience /all,

urgaon!$$++!


!4



CG M&tr!;

<u,*t!on M&r

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 of shakes called K8=0<:80. #s it

is a fairly new product it comes in the category of the 3uestion /ark in the -C /atrix.

It has a low market share thus brings low revenue. KFC is advertising a lot to populari7e

this product so there is a lot of expenditure on it. *his product is individually not bringing

any profits and is a cash drain for the company. Company may decide to completely

remove this product from the market if it does not do well soon and start bringing in

revenue.

DOG

KFC6s (eg *hali comes under this category. #lthough company had launched this

product much earlier, it has still failed to become a success. #s KFC is known more for

its nonveg food, this also results in low demand for this item. It has a low market share

and although low on expenditure Las company does not spend on its promotionM, it does

not bring in much revenue as demand is low. *he product is mostly C#0< :=*8#5.

$+



CAS) COW

KFC6s Chicken -ucket is the most successful product of the company. It has the highest

market share amongst all the other products. It has good demand in the market and bringsin huge sales revenue. *he development and other expenses are also low and thus this

product is a C#0< 0I8"5=0 for the company.

STA

*he star product of the company is its crispy -oneless Chicken. It has a high market

share and brings in high revenue. -ut it also has high developmental expenditure

involved. *he profit therefore is generally not very high brought in by this product. *his

product is C#0< :=*8#5 for the firm. *he company is trying make this product acow as well, by reducing the expenditure.

$!



M&r,t Co+,r&, Str&t,'

KFC will be using differentiated market coverage strategy. It means that different

marketing mix will be used for different age groups.

TAGET MAKET (O (AST (OOD

#fter evaluation of various segments, KFC has decided to target the market of =rban

and 0uburban #reas of "akistan.

rodut u*&,

"eople are educated and they want variety in their diet.

ormally people of rural areas don6t take fast food. 2n the other hand people of

urban areas take fast food.

Income of the people of urban areas is normally high and they can afford to

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

prevailing prices of local food in the market.

"eople of =rban #reas are more ?uality conscious than the people of 8ural #reas.

In =rban #rea there lived people from every walk of life and profit generation is

easier than in 8ural #reas.

"opulation density is higher in =rban #reas as compared to 8ural #reas, so the

number of customers are more in =rban #reas.

Co$%,t!tor*

-ecause the fast food market in India is highly competitive, KFC faces a wide number of

direct and indirect competitors. KFC6s main competitors are fast food chains such as

/cDonald6s and Domino6s, which are already well established throughout India.

/cDonalds6s in particular is a direct competitor, as they have already successfully

introduced their 0alads plus line LhttpNQQwww.theage.co.inM, which directly targets

Rhealthy food6 conscious Indians. -ut, there are a number of other competitors that is also

$$



focusing on Rchicken6 types products. #ll this competition makes it ?uite difficult for

KFC to maintain or even broaden their customer base. <owever, with the introduction of

a new and healthy product range, KFC can differentiate itself from most competitors and

will gain a competitive advantage.

Cu*to$,r*

KFC6s customer market consists solely of the consumer market LKotler et al $++M.

KFC6s products are bought by individuals Lmales, females, singles, and familiesM.

*herefore, the product range KFC offer should appeal to as many people within this

consumer market as possible, to ensure that the maximum amount of products can be

sold. *he characteristics of these individuals and a segmentation of them are discussed

later in this report.

MAKETING STATEGIES O( K(C

*here are different strategies adopted by KFC for different events. *hey market their

products on different events and in different activities as they are helping 020 village.

#ccording to KFC, kids become the future permanents customers and we know very well

that without any marketing strategy no marketing program and no product is successful

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

KFC is following iche /arketing and 0ocietal /arketing techni?ues.

KFC possess a western culture because some of the Indian people are also

following that culture.

KFC are moving from Divisional 5evel to the District level by opening branches

KFC also offer free home delivery.

KFC open their outlets on reachable places.

$



KFC menu consists of more than + products.

KFC gives more priority to Family.

M&r,t!n

0ince !4)$, KFC6s A#ll#merican salute to /othersB national card contest has been

KFC6s way of honoring moms and their families for making mother6s Day KFC6s biggest

sales day of the year. *he contest encourages children to creatively express their feelings

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

than H!+,+++ in cash and pri7es. :ducational packets, including language, history and art

exercises highlighting /other6s Day, were sent to thousands of schools nationwide.

*here are % "6s of /arketingN

!. "82D=C*I2

$. "8ICI

. "82/2*I2

%. "5#C:/:*

!. rodut!on

-asically the product is anything that be offered to a market for attention, ac?uisition,

use, or consumption that might satisfy a want or need. KFC is specially dealing in the

chicken products@ -asically, KFC has the special raspy for chicken products that is why,

KFC known as a chicken specialist allover the glob. KFC target the #sia and east side

$%



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

market due to the demand of their chicken products. KFC product variety of product in

the chicken, those products areN

OD=CTS

• 2riginal recipe9 chicken

• :xtra *asty Crispy*/ chicken

• <ot 1ings*/ pieces

• *ender 8oast9 chicken

• Chunky Chicken pot pie

• Kentucky uggest9

• Colonel6s Crispy 0trips9

• <oney --3 sandwich

• 2riginal 8ecipe9 0andwich

• *ender 8oast9 0andwich

• *riple Crunch9 0andwich

• *riple Crunch 9inger9 0andwich

rodut I**u,*

<u&/!t' Contro/ O+,r Inr,d!,nt*

E+,r' C!,n T,*t,d

K E 6s stateoftheart 3uality #ssurance 5ab monitors the entire integration process

from livestock to feed and on to preparation of readytocook and cooked products.

E+,r' C!,n C,rt!#!,d

<#CC" K E 6s ensures food safety by implementing the international <#C" LFood

0afety 0ystemM and enjoy the uni?ue privilege of being the first and only <#CC"

$G



certified company is India producing chicken and chicken products. Free from diseases

and bacteria, drug residues and other contaminants.

<u&/!t' A**ur&n, C,rt!#!&t,

Director eneral L8esearchM has issued ?uality assurance certificate for the chicken used

by KFC.

-8#DN

*here are three brands of the KFCN

!M *aco bell

$M "i77a <ut

M 5ong john silvers

2. r!!n

KFC during pricing their products keep the different points in the mind like they adopt

the cost base price strategy. "ricing of the product includes the overnment taxes and

excise duties and then they come at final stage of determine the price of their products.

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

compatible to the stander of their products.

Calculation of the price under Cost -ased "ricing 0trategyN

Tot&/ ound* o# C!,n S,r+,d !n K(C ,*t&ur&nt Annu&//' S !.4!% -illion

Tot&/ K(C C!,n !,,* So/d Annu&//' S G.)4 -illion

$&



Tot&/ ,t&!/ S&/,* S H).4 -illion

S&/,* r!, o# %,r C!,n !,, S *otal 8etail 0ales Q Chicken "ieces sold

S H).4 -illion Q HG.)4 -illion

SH!.G!

1e assume that Fixed Cost is S H&+++++++++

&r!&:/, Co*t S H&'G++++++

ro#!t M&r!n is 2r /ark =p S H$$G++++++L$GT of 0alesM

"er =nit (ariable Cost S H&'G++++++ Q G)4+++++++

S H +.!!G

=n!t Co*t S (ariable Cost U Fixed Cost Q Chicken pieces 0old

S +.!!G U &+++++++++ Q G)4+++++++

S +.!!G U !.+$

S H!.!G

ow suppose manufacturer wants to earn $GT mark up on sale. *he manufacturer mark

up price is calculatedN

M&r =% r!, S =nit Cost Q L! Desired 8eturn on 0alesM

S!.!G Q L!.$GM

S !.!G Q +.'G

S H!.G!

. ro$ot!on

"romotion is one of the necessary plates in any form of business or in other words you

can say that promotion is the key of success. If you promote your product at the right

time. KFC also known the importance and significance of promotion so they uses the bill

$'



boards the major source of advertisement and one of 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 existing product range as well they tell us about

the future product.

/arketing efforts to be taken by the restaurantN

"aste delivery posters at petrol pumps, flats, colleges, pla7as, and departmental

stores.

Distribution of delivery flyers in residential areas, markets, pla7as and institutions

Las per the planM

(isit offices and business places.

ro$ot!on I**u,*

S&/,* %ro$ot!on

For the sales promotion KFC introduced their goods like watches , keychain, etc., to the

customers.

Ad+,rt!*,$,nt

$)



*he advert titled "ool was done by 2I5( E /#*<:8, ew Delhi advertising agency

for KFC I:8 -=8:8 LKFC companyM in IDI#. It was released in the >une $++4.

-usiness sector is Fast food outlets E restaurants.

2ne of KFCPs latest advertisements is a commercial advertising its Vwicked crunch box

mealV. *he commercial features a fictional black metal band called V<ellveticaV

performing live, the lead singer then swallows fire. *he commercial then shows the lead

singer at a KFC eating the Vwicked crunch box mealV and saying V2h man that is hotV.

In $++', the original, nonacronymic Kentucky Fried Chicken name was resurrected and

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

restaurant signage.

4. /&,

In the case of the KFC the placement of the product is not important but the placement of

the restaurant is important. *he products of the KFC is cooked at the sport and then

served after that. KFC Cavalry branch opened in >une !44), in the main commercial 7one

of Cavalry rounds near the >innah Flyover. *he restaurant is a threestory building

including the basement Lwhere the chicky play area is locatedM. It is ideally located in the

center of a main commercial and residential area of 5ahore. *he area that KFC Cavalry

caters for is the residential and office area of Cavalry rounds and Cantt, as the main

target market. #nother branch the KFC opened in the 5ahore is in arden *own Lopposite

to -arkat /arketM. KFC also target the Faisalabad and open its branch in D ground. ow

we can easily judge that the KFC target the place for their restaurant, which is well

known and is in the "orsche area where the income level of the people is high then the

middle class level. -ecause the prices of the KFC products is high with comparison to the

local products manufacturer who are dealing in the same kind of product in which KFC is

$4

http://en.wikipedia.org/wiki/Black_metal





dealing but the prices of the KFC is high due to special taste, high ?uality, and due to

international brand, it is the world recogni7ed fast food restaurant all around the world.

0o, for the placing strategy, KFC chose the well income class area for their restaurants.

SWOT An&/'*!*

SWOT analysis mean strength, weakness, opportunities and threats and the 012*

analysis of KFC areN

STENGT)S

Good-!// &nd r,%ut&t!onN *he company certainly has earned a good name and

reputation by its previous products and services in the market. It is even more

recognised in other markets outside India, where the company is among the

leading fast food giants. *he brand is recognised and trusted in India for its?uality products, price, and customer service. It therefore has a good head start

and enjoys a good chance of becoming a leader in Indian fast food industry.

E$%/o',, Lo'&/t'N :mployee 5oyalty is one of the major strengths of KFC. *he

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

+



Cu*to$,r Lo'&/t'N Despite gain by -oston /arket and Chickfill #, KFC

customer base remained loyal to the KFC brand because of its uni?ue taste. KFC

has continued to dominate the dinner and take out segment of the Industry.

&n* !,*t &$on &// !,n r,*t&ur&nt &!n* for its convenience and

menu variety. It generates H!- revenue each year.

WEAKNESSES

KFC was /o*!n $&r,t *&r, as other Chicken chain increased sales at a faster

rate.

KFC share of Chicken 0egment sales fell from '! percent !444, to less than G&

percent in $++4 , a !+ years drop of !G percent.

<uge o$%,t!t!on in this segment.

Ind!& !* *t!// $o*t/' & +,,t&r!&n do$!n&t,d u/tur,d *o!,t'. 0outh India is

especially very much so. *his may reduce the market share of the company.

KFC has not yet invested much on 8ED, and innovating new products for Indian

/arkets. *his may lead to failure of their products as they are not in line with the

Indian mind set, peoples taste and preferences and their likes and dislikes. *his

may prove fatal for the company.

O=T=NITIES

!



N,- M&r,t*N lobalisation has opened doors for new markets for the company.

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

India and China promises a good market and generation of demand in the future.

1ith more than '+T of the markets in india being unexplored and un organised,

KFC has a good scope of expanding its operations in the country.

Cro** Cu/tur,N enerally there is a good acceptance of #merican culture of fast

food in India. "eople are opening up to fast foods more regularly in their daily

lives and not just keeping it a once in a month affair. *hus Indian mindset is fast

changing.

L&r, out %o%u/&t!onN India has a very large share of youth population a

compared to other countries. /ore than &+T of the population is under the age of

+yrs. #s the young generation are more open to fast foods and demand it more,

this is a good news for the company.

N,- +&r!,t' Company can also come up with new variety in the menu like

"i77as, garlic breads to attract more customers.

T)EATS

Co$%,t!t!on Competitor companies like /cDonalds are fast catching up with

the market. /cDonald6s with sales of more than !4 billion in !444, accounted for

!G percent of the sales of the nation6s top !++ restaurant chains.

2rganisations like ":*# "eople for :thnic *reatment for #nimals have given a

bad name to the company which may prove disastrous to the image of the firm.

Currently, KFC is under massive attacks from animal organisations, ?uestioning

the way KFC6s suppliers are threatening the chicken, before they got slaughtered.

#ntiKFC campaigns, such as the one from ":*# are affecting KFC6s brand

$



image in a negative way and result in direct dollar losses, as less people are

consuming KFC chicken.

S&tur&t,d =S M&r,tN ow KFC cannot rely on just its home market to generatesales. #s the =0 markets are already saturated and leave no or little scope for

growth, company necessarily needs to look at offshore foreign markets to

generate sales and keep up the profits.



<=ESTIONNAIE

1. T! our Co!, > ?

,r#,t A:o+,

A+,r&,

A+,r&, ,/o-

A+,r&,

oor

(ood <u&/!t'

(ood T,$%,r&tur,

W&!t!n T!$,

M,nu o&rd

S!tt!n Arr&n,$,nt

,*t&ur&nt T,$%,r&tur,

Mu*!

,*t&ur&nt C/,&n/!n,**

O+,r&// E;%,r!,n,

2. W,n -!// 'ou :, :&@

ext time I blink Lvery soonM

/ay be sometime later

%



1hen I win a obel "ri7e LeverM

3. )o- $&n' %,o%/, -,r, !n 'our rou%@

I was alone

>ust me and someone

For me, three is company

% or more

4. Wou/d 'ou r&t,r ord,r t&n D!n, !n@

aa, I like to mostly order at home

0ometimes, but I mostly like to dine in

o fun without Dine in

5. )o- /o*, !* 'our ou*, to 'our n,&r,*t K(C out/,t@

1ithin ! Km

-etween ! Kms

-etween G Kms

#bove G Kms

6. Do 'ou -&nt & K(C o$, d,/!+,r' *,r+!,@

/y dreams are coming true

*hat would help

Doesn6t make much of a difference

o thanks

G



T)ANK O=

&



(INDINGS

*he data we received is as followsN

1e did a survey on KFC on people with age group of mostly $+$Gyrs. /ostly all were

open to nonveg food, and following were the results. #s seen below KFC has shown a

good report on all the micro factors that we considered.

'



1e also asked ?uestions on whether they would like KFC to start homedelivery services.

1e also in?uired A)o- /o*, !* t, n,&r,*t K(C out/,t #ro$ 'our ou*,@

)



Wou/d 'ou /!, to ord,r &t o$, or D!n, !n@

4



CONCL=SION

It is clear from the above report that a high number of people actually like to

order from their home or workplace rather than coming. *his may be due to

more convenience, time shortage or just not willing to come and dine.

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

advantage of the situation. *hus it would be in the best interest of the

company to start the service as soon as possible and capitali7e on the

opportunity. KFC expects a rise in the orders by at least $+T by starting this

service.

%+



ILOGA)

• www.kfcindia.com

• *imes of India

• www.google.com

• www.wikipedia.org

• 8etail maga7ines

%!

http://www.kfcindia.com/

http://www.wikipedia.org/

http://www.kfcindia.com/

http://www.wikipedia.org/



Documents

Imran Pathan