Faisal Niyazi08D1306 BBM-DMarketing-II

KFC

KENTUCKY FRIED CHICKEN

KFC History

Way back in 1930’s Colonel Harland Sanders got some distinguished Kentucky folks lickin’

their fingers. It’s been in fashion since then!

Colonel Harland Sanders, founder of the original Kentucky Fried Chicken, was born on

September 9, 1890.When he was six, his father died and his mother was forced to go to work

while young Sanders took care of his three year old sibling. This meant he had to do much of the

family cooking. By the time he was seven, Harland Sanders was a master of a range of regional

dishes.

After a series of jobs, in the mid 1930s at the age of forty, Colonel Sanders bought a service

station, motel and cafe at Corbin, a town in Kentucky about 25 miles from the Tennessee border.

It is here that Sanders began experimenting with different seasonings to flavor his chicken which

travelers loved and for which he soon became famous.

During the next nine years he developed his secret recipe of 11 herbs and spices and the basic

cooking technique which is still used today. Sander's fame grew. He sold his chicken on the

highway! But when the highway was removed, he sold up and traveled the United States by car,

cooking chicken for restaurant owners and their employees. If the reaction was favorable Sanders

entered into a handshake agreement on a deal which stipulated a payment to him of a nickel for

each chicken the restaurant sold.

By 1964, from that humble beginning, Colonel Harland Sanders had 600 franchise outlets for his

chicken across the United States and Canada. Later that year, Colonel Sanders sold his interest in

the United States operations for $2 million. The 65-year-old gentleman had started a worldwide

empire using his $105 social security cheque. Sadly, Colonel Harland Sanders passed away on

December 16th, 1980 aged 90.

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His legacy lives on with KFC restaurants all over the world. KFC now stretches worldwide with

more than 13,000 restaurants in more than 80 countries and territories around the world serving

up the Colonel’s Original Recipe. It is a $13 billion brand based out of Kentucky and is the

leading QSR around the world which is based in Louisville, Kentucky. Yum! Brands own 5

brands, out of which KFC is the largest brand within the Yum! Portfolio, founded by Colonel

Harland Sanders in the year 1938.

History of KFC at-a-glance

9/9/1890

Harland Sanders is born just outside Henryville, Indiana.

1900-1924

Harland Sanders holds a variety of jobs including: farm hand, streetcar conductor, army private

in Cuba, blacksmith's helper, railyard fireman, insurance salesman, tire salesman and service

station operator for Standard Oil.

1930

In the midst of the depression, Harland Sanders opens his first restaurant in the small front room

of a gas station in Corbin, Kentucky. Sanders serves as station operator, chief cook and cashier

and names the dining area "Sanders Court & Café."

1936

Kentucky Governor Ruby Laffoon makes Harland Sanders an honorary Kentucky Colonel in

recognition of his contributions to the state's cuisine.

1937

The Sanders Court & Café adds a motel and expands the restaurant to 142 seats.

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1939

The Sanders Court & Café is first listed in Duncan Hines' "Adventures in Good Eating."

Fire destroys The Sanders Court & Café, but it is rebuilt and reopened.

The pressure cooker is introduced. Soon thereafter Colonel Sanders begins using it to fry his

chicken to give customers fresh chicken, faster.

1940

Birth date of the Original Recipe

1949

Sanders marries Claudia Price.

1952

The Colonel begins actively franchising his chicken business by traveling from town to town and

cooking batches of chicken for restaurant owners and employees.

The Colonel awards Pete Harman of Salt Lake City with the first KFC franchise. A handshake

agreement stipulates a payment of a nickel to Sanders for each chicken sold.

1955

An interstate highway is built to bypass Corbin, Kentucky. Sanders sells the service station on

the same day that he receives his first social security check for $105. After paying debts owed,

he is virtually broke. He decides to go on the road to sell his Secret Recipe to restaurants.

1957

Kentucky Fried Chicken first sold in buckets

1960

The Colonel's hard work on the road begins to pay off and there are 190 KFC franchisees and

400 franchise units in the U.S. and Canada.

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1964

Kentucky Fried Chicken has more than 600 franchised outlets in the United States, Canada and

the first overseas outlet, in England.

Sanders sells his interest in the U.S. company for $2 million to a group of investors headed by

John Y. Brown Jr., future governor of Kentucky. The Colonel remains a public spokesman for

the company.

1965

Colonel Sanders receives the Horatio Alger Award from the American Schools and Colleges

Association.

1966

The Kentucky Fried Chicken Corporation goes public.

1969

The Kentucky Fried Chicken Corporation is listed on the New York Stock Exchange.

1971

More than 3,500 franchised and company-owned restaurants are in worldwide operation when

Heublein Inc. acquires KFC Corporation.

1976

An independent survey ranks the Colonel as the world's second most recognizable celebrity.

1977

Colonel Sanders speaks before a U.S. Congressional Committee on Aging.

1979

KFC cooks up 2.7 billion pieces of chicken. There are approximately 6,000 KFC restaurants

worldwide with sales of more than $2 billion.

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12/16/1980

Colonel Harland Sanders, who came to symbolize quality in the food industry, dies after being

stricken with leukemia. Flags on all Kentucky state buildings fly at half-staff for four days.

1982

Kentucky Fried Chicken becomes a subsidiary of R.J. Reynolds Industries, Inc. (now RJR

Nabisco, Inc.) when Heublein, Inc. is acquired by Reynolds.

1986

PepsiCo, Inc. acquires KFC from RJR Nabisco, Inc.

1997

PepsiCo, Inc. announces the spin-off of its quick service restaurants - KFC, Taco Bell and Pizza

Hut - into Tricon Global Restaurants, Inc.

2002

Tricon Global Restaurants, Inc., the world's largest restaurant company, changes its corporate

name to YUM! Brands, Inc. In addition to KFC, the company owns A&W® All-American

Food® Restaurants, Long John Silvers®, Pizza Hut® and Taco Bell® restaurants.

2006

More than a billion of the Colonel's "finger lickin' good" chicken dinners are served annually in

more than 80 countries and territories around the world.

2007

KFC proudly introduces a new recipe that keeps the Colonel's 11 herbs and spices and finger-

lickin' flavor, but contains Zero Grams of Trans Fat per serving thanks to new cooking oil.

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2008

The Colonel has a new look! KFC updates one of the most recognized, respected and beloved

brand icons with a new logo. The new logo depicts Colonel Sanders with his signature string tie,

but for the first time, replaces his classic white, double-breasted suit with a red apron. The apron

symbolizes the home-style culinary heritage of the brand and reminds customers that KFC is

always in the kitchen cooking delicious, high-quality, freshly prepared chicken by hand, just the

way Colonel Sanders did 50 years ago.

2009

KFC introduces Kentucky Grilled Chicken™ - a better-for-you option for health conscious

consumers who love the flavor of KFC. Kentucky Grilled Chicken has less calories, fat and

sodium than KFC’s Original Recipe® chicken, without sacrificing the great taste of KFC.

KFC India

KFC is the world’s No.1 Chicken QSR and has industry leading stature across many countries

like UK, Australia, South Africa, China,USA, Malaysia and many more. KFC is the largest

brand of Yum Restaurants, a company that owns other leading brands like Pizza Hut, Taco Bell,

A&W and Long John Silver. Renowned worldwide for it’s finger licking good food, KFC offers

its signature products in India too! KFC has introduced many offerings for its growing customer

base in India while staying rooted in the taste legacy of Colonel Harland Sander’s secret recipe.

Its signature dishes include the “crispy outside, juicy inside” Hot and Crispy Chicken, flavorful

and juicy Original Recipe chicken, the spicy, juicy & crunchy Zinger Burger, Toasted Twister,

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

great tasting vegetarian offerings that include the Veg Zinger, Veggie Snacker and Veg Rice

meals. In India, KFC is growing rapidly and today has presence in 19 cities with close to 97

restaurants.

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The Secret Recipe

The Colonel's secret flavor recipe of 11 herbs and spices that creates the famous "finger lickin'

good" chicken remains a trade secret. Portions of the secret spice mix are made at different

locations in the United States, and the only complete, handwritten copy of the recipe is kept in a

vault in corporate headquarters. On September 9, 2008, the one complete copy was temporarily

moved to an undisclosed location under extremely tight security while KFC revamped the

security at its headquarters. Before the move, KFC disclosed the following details about the

recipe and its security arrangements:

The recipe, which includes exact amounts of each component, is written in pencil on a

single sheet of notebook paper and signed by Sanders.

The recipe was locked in a filing cabinet with two separate combination locks. The

cabinet also included vials of each of the 11 herbs and spices used.

Only two executives had access to the recipe at any one time. KFC refuses to disclose the

names and titles of either executive.

One of the two executives said that no one had come close to guessing the contents of the

secret recipe, and added that the actual recipe would include some surprises.

On February 9, 2009, the secret recipe returned to KFC's Louisville headquarters in a more

secure, computerized vault guarded by motion detectors and security cameras. Reportedly, the

paper has yellowed and the handwriting is now faint.

In 1983, writer William Poundstone examined the recipe in his book Big Secrets. He reviewed

Sanders' patent application, and advertised in college newspapers for present or former

employees willing to share their knowledge. From the former he deduced that Sanders had

diverged from other common fried-chicken recipes by varying the amount of oil used with the

amount of chicken being cooked, and starting the cooking at a higher temperature (about 400 °F

(200 °C)) for the first minute or so and then lowering it to 250 °F (120 °C) for the remainder of

the cooking time. Several of Poundstone's contacts also provided samples of the seasoning mix,

and a food lab found that it consisted solely of sugar, flour, salt, black pepper and monosodium

glutamate (MSG). He concluded that it was entirely possible that, in the years since Sanders sold

the chain, later owners had begun skimping on the recipe to save costs.

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Today, the recipe is protected by some pretty elaborate security precautions. One company

blends a formulation that represents part of the recipe while another spice company blends the

remainder. As a final safeguard, a computer processing system is used to standardize the

blending of the products to ensure neither company has the complete recipe.

"It boggles the mind just to think of all the procedures and precautions the company takes to

protect my recipe," the Colonel said, "especially when I think how Claudia and I used to operate.

She was my packing girl, my warehouse supervisor, my delivery person-you name it. Our garage

was the warehouse."

"After I hit the road selling franchises for my chicken, that left Claudia behind to fill the orders

for the seasoned flour mix. She'd fill the day's orders in little paper sacks with cellophane linings

and package them for shipment. Then she had to put them on a midnight train."

Little did the Colonel and Claudia dream in those days that his Secret Recipe of 11 Herbs &

Spices would be famous around the world.

Product Menu in INDIA

Zinger burger

Krushers

GameBox

Twister

Boxmaster

Chicken Bucket

Hot wings

Fries

Corn on the cob

Zing Kong

Snacker(chicken & veggie)

Veggie Feast

Soft Drink

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Coleslaw

Chicken Thali

Veg Finger

Snack Box

Sundae

Soft Twirl

Brownie Sundae

Competitors

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

and indirect competitors. KFC’s main competitors are fast food chains such as McDonald’s and

Domino’s, which are already well established throughout India.

McDonalds’s in particular is a direct competitor, as they have already successfully introduced

their Salads plus line (http://www.theage.co.in), which directly targets ‘healthy food’ conscious

Indians. But, there are a number of other competitors that is also focusing on ‘chicken’ types

products. All this competition makes it quite difficult for KFC to maintain or even broaden their

customer base. However, with the introduction of a new and healthy product range, KFC can

differentiate itself from most competitors and will gain a competitive advantage.

Market Share

KFC has a very long history and has the most recognize able brand in chicken with over 50% of

the market share. It becomes difficult for the companies like Sub way, Mc Donald’s, Chicken

planet, Dixie or those who may want to enter in the market of fast food restaurants.

Due to with over 50% of the market share in fast food industry KFC has recognition around the

world and has been globally positioned for many years in India and to capture the market share

in India adopts champs philosophy.

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Marketing Strategies of KFC

There are different strategies adopted by KFC for different events. They market their products on

different events and in different activities as they are helping SOS village.

According 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 Niche Marketing and Societal Marketing techniques.

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

KFC open their outlets on reachable places.

KFC menu consists of more than 30 products.

KFC gives more priority to Family.

Factors affecting decision regarding Retail Store Location

Population and Your Customer

If you are choosing a city or state to locate your retail store, research the area thoroughly before

making a final decision. Read local papers and speak to other small businesses in the area.

Obtain location demographics from the local library, chamber of commerce or the Census

Bureau. Any of these sources should have information on the area's population, income and age.

You know who your customers are, so make sure you find a location where your customers live,

work and shop.

Accessibility, Visibility and Traffic

Don't confuse a lot of traffic for a lot of customers. Retailers want to be located where there are

many shoppers but only if that shopper meets the definition of their target market. Small retail

stores may benefit from the traffic of nearby larger stores.

How many people walk or drive past the location.

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Is the area served by public transportation?

Can customers and delivery trucks easily get in and out of the parking lot?

Is there adequate parking?

Depending on the type of business, it would be wise to have somewhere between 5 to 8

parking spaces per 1,000 square feet of retail space.

When considering visibility, look at the location from the customer's view point. Can the store be

seen from the main flow of traffic? Will your sign be easily seen? In many cases, the better

visibility your retail store has, the less advertising needed. A specialty retail store located six

miles out of town in a free standing building will need more marketing than a shopping store

located in a mall.

Signage, Zoning and Planning

Before signing a lease, be sure you understand all the rules, policies and procedures related to

your retail store location. Contact the local city hall and zoning commission for information on

regulations regarding signage. Ask about any restrictions that may affect your retail operation

and any future planning that could change traffic, such as highway construction.

Competition and Neighbors

Other area businesses in your prospective location can actually help or hurt your retail shop.

Determine if the types of businesses nearby are compatible you're your store. For example, a

high-end fashion boutique may not be successful next door to a discount variety store. Place it

next to a nail or hair salon and it may do much more business.

Location Costs

Besides the base rent, consider all costs involved when choosing a retail store location.

Who pays for lawn care, building maintenance, utilities and security?

Who pays for the upkeep and repair of the heating/air units?

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If the location is remote, how much additional marketing will it take for customers to find

you?

How much is the average utility bill?

Will you need to make any repairs, do any painting or remodeling to have the location fit

your needs?

Will the retailer be responsible for property taxes?

The location you can afford now and what you can afford in the future should vary. It is difficult

to create sales projects on a new business, but one way to get help in determining how much rent

you can pay is to find out what sales similar retail businesses are making and how much rent

they're paying.

Personal Factors

If you plan to work in your store, think about your personality, the distance from the shop to

home and other personal considerations. If you spend much of your time traveling to and from

work, the commute may overshadow the exhilaration of being your own boss. Also, many

restrictions placed on a tenant by a landlord, management company or community can hamper a

retailer's independence.

Special Considerations

Your retail shop may require special considerations. Make a list of any unique characteristic of

your business that may need to be addressed.

Will the store require special lighting, fixtures or other hardware installed?

Are restrooms for staff and customers available?

Is there adequate fire and police protection for the area?

Is there sanitation service available?

Does the parking lot and building exterior have adequate lighting?

Does the building have a canopy that provides shelter if raining?

What is the crime rate in the area?

Are there (blue laws) restrictions on Sunday sales?

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Don't feel rushed into making a decision on where to put your retail store. Take your time,

research the area and have patience. If you have to change your schedule and push back the date

of the store's opening, than do so. Waiting to find the perfect store location is better than just

settling for the first place that comes along. The wrong location choice could be devastating to

your retail business.

Locations of KFC Restaurant in Bangalore

Central Bangalore

Brigade Road

Commercial Street

Sangam Mall, Majestic

Almas Centre, M G Road

HM Geneva House, Cunningham Road

Indiranagar

CMH Road

Total Mall, Kemp Fort

Pyramid Food Court, EGL, Intermediate Ring Road

Koramangala

Forum Mall

Opposite Oasis Mall

North Bangalore

AEGS Layout, New BEL Road

Mantri Mall

Food Court, Mantri Mall

80 ft Kammanahalli Main Road, Kalyan Nagar

RT Nagar Main Road

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South Bangalore

11th Main, 4th Block, Jayanagar

Gopalan Arch Mall, Rajarajeshwari Nagar

Vilas Road, Basavangudi

80ft Road, Next to Big Bazaar, Banshankari

16 Mosque Road, Frazer Town

West Bangalore

Modi Hospital Road, 2nd stage, West of Chord Road

Whitefield

ITPL, Whitefield

Forum Value Mall

Locational Strategy of KFC in Bangalore

From the above stated locations of KFC restaurant in Bangalore we can conclude that KFC is

considering the following factors while choosing the store location in Bangalore:

Visibility:

All the stores of KFC in Bangalore are situated in the areas where they get good visibility so that

they come first in the minds of there customer whenever they come across these stores.

Accessibility:

All the stores of KFC are situated in the shopping areas of Bangalore, because of which they are

easily accessible.

Traffic:

KFC has located its store in the places where the footfall per hour is very high. We can see the

KFC restaurant in major malls and major shopping areas.

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Target Customers:

All the restaurants of KFC are located at the place where it gets maximum of its target group of

customers. The target group of customers of KFC are children. teenagers, and young generations

in their 20’s-30’s.

Location Cost:

The cost of the stores of KFC is high as it is situated in Malls and major shopping areas, where

the rate of rent is generally high in Bangalore.

Competition:

KFC faces good competition from McDonalds and most of its locations, but the strategy of KFC

is to focus on its focused group of customers and the customers of KFC are generally loyal to

them, therefore the competition with McDonald doesn’t really matter to KFC.

Special Consideration for Focused Group:

The restaurants of KFC are situated in the areas where it is easily visible and accessible to its

focused group, and it’s products are moderately priced to attract the middle class and upper class

of the society.

Convenience for the customers:

All the stores of KFC are situated at the place which is convenient for the customers, the

restaurants are convenient in terms of locating them, parking facilities, washrooms and

restrooms, etc.

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Conclusion

So, it could be concluded that the choice of location for the stores by KFC highly depends upon

the needs of its customers, their ease in accessibility, store visibility, high footfalls, hygienic

area, and other factors. All the locations decided by KFC to locate it’s store depend upon the

convenience of its customers and locations at which its focused customer can reach easily.

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