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Executive Summary

In the global market increase the demand of hygienic food, KFC is trying to do some contribution in its
industry. This report has seven chapters. First chapter is introduction. In this chapter weve discussed
the objective of the study, methodology and limitation of the study. In chapter two weve discussed the
company overview, environment and competitors of the firm, a recent problem faced by the firm, and
we also developed a SWOT analysis. Findings, recommendation and appendix are included in chapter
three. And lastly we draw a conclusion of this report.

Introduction

Now a day, the food choice of the people of Bangladesh is changing. Today people like fast food a lot.
Whenever we talk about fast food, the first choice that comes to our mind is KFC. KFC is known for its
uniqueness in fried chicken. They use a secret recipe to make their chicken tasty and crispy. Their
employees are not allowed to share their recipe with anyone. And they have to maintain a specific
quality in their food. So they offer hygienic food to their customers. As a result they have been able to
grab a very good number of loyal customers. They rely on this food brand. So parents allow their
children to enjoy KFC food without any doubt. Now the young generation has become their main target
group. Whenever they offer any new item or make any special offer, they keep this customer segment in
their mind.

Methodology

It deals with the process of doing the assignment. Here we mainly followed secondary data collection
process. We arranged our information from the web. But some information like number of employees,
products and services etc was not available in the web. To collect that information, some of our group
members went there personally and collect the required information through primary data collection
process. In our assignment we used times new roman style. And normal font size was 12 although it
varied in the heading and sub-heading part.

Objectives

Every report has some objectives and to fulfill those objectives people do the assignment. As our course
teacher had given us to do an assignment on KFC, our first objective was to do the assignment
successfully. To do it successfully, we had to make a study on the firm. The objectives of the study are
given below-

to know about KFC broadly
to have a specific knowledge about the company
to know about their establishment period, products & services
to know the name of companies from which they are facing tough competition
to know about their branches located inside & outside Dhaka
to form a SWOT analysis of the firm
to draw a overall picture of the company etc.

These were the main objectives of our study.

Limitations

Every study has its own limitations. While doing the assignment we also faced some limitations. They
are given below

Different class schedule of group members
Lack of space in the discussion room
Lack of facilities in the lab
Lack of necessary information in the web
lack of convenient environment in the discussion room
lack of group discussion because of mid- term examination
Reluctance of KFC employees sharing their information etc.

These are the limitations that we faced while doing the assignment.

Company overview

Company overview includes the following factors

Company background

Products & services

Establishment period

Corporate office

Location of the firm

Firms logo etc.

Company Background

Transcom Foods Limited, a concern of Transcom Group is the franchisee of KFC in Bangladesh. The first
ever KFC restaurant has been opened in September at Gulshan, Dhaka with a seating capacity of 178
person.

Kentucky Fried Chicken stands for high-quality fast food in a popular array of complete meals to enrich
the consumers everyday life. KFC strives to serve great-tasting, finger lickin good chicken meals that
enable the whole family to share a fun, uninhibited and thoroughly satisfying eating experience, with
the same convenience and affordability of an ordinary Quick Service Restaurant. TFL successfully
launched the flagship KFC on South Avenue, Gulshan in September 2006. It has already won over the
heart of the Dhaka crowd with its great tasting food, high standard of hygiene, cleanliness, terrific
interior and of course excellent and affordable pricing. Following its enormous success in Gulshan, the
second outlet was opened in Dhanmondi in November 2008, and yet another in Banani in December
2008. Most recently TFL has opened two outlets at Eskaton on February 2010 and another one is in
Paltan.

Kentucky Fried Chicken

Branches

1. Gulshan: Bir Uttam Mir Shawkat Ali Sorok (South Avenue), Gulshan1,Dhaka.

2. Dhanmondi: H#84, R#7/a, Sat Masjid Road, Dhaka.

3. Banani: Bulu Ocean Tower, Kemal Ataturk Avenue, Dhaka.

4. Baily Road: 10 Natok DSarani, New Baily Road, Dhaka.

5. Eskaton: 400 New Eskaton, Dhaka.

6. Chittagong: Amin Centre, Laikhan Bazar.

Location

Location

Nutrition

Product Ave Serving Size
(Edible) Energy kg/
serve kg/
100g Protein g/
serve g/
100g Fat Total g/
serve g/
100g Fat Saturated g/
serve g/
100g Carbohydrate Total g/
serve g/
100g Carbohydrate Sugars g/
serve g/
100g Sodium mg/
serve mg/
100g Total DietaryFibre g/
serve g/
100g
Original Recipe Chicken* 159g (2 pieces)

1903


1197




35.9 22.6 28.9 18.2 8.1 5.1 12.4 7.8 0.5 0.3 840 5281.3 0.8
Potato & Gravy 110g (regular tub) 295 2681.4 1.3 1.8 1.6 1.0 0.9 11.6 10.5 0.3 0.3 420 382
1.1 1.0
Coleslaw 110g (regular tub) 452 4111.2 1.1 3.9 3.5 0.4 0.4 16.2 14.7 16.0 14.5
264 240- -
Crispy Strips 206g (3 pieces) 2064 1002 43.9 21.3 21.8 10.6 10.5 5.1 29.0 14.1
0.8 0.4 822 3992.1 1.0
Hot & Spicy Chicken 176g (2 pieces) 2031 1154 33.8 19.2 31.3 17.8 12.8 7.3 17.2 9.8
0.5 0.3 824 4681.2 0.7
Original Fillet Burger 182g 1927 1059 28.4 15.6

20.7


11.4




6.2 3.4 38.6 21.2 5.5 3.0 970 5332.5 1.4
Original ZingerbBurger 206g 2336 1134 26.0 12.6 30.7 14.9 10.3 5.0 43.5 21.1
5.4 2.6 1063 516 2.5 1.2

Environment of the KFC

Internal environment

Internal environment is the part of the business environment which refers to the companies internal
components like owner, employee etc.

Owner

The company was founded as Kentucky Fried Chicken by Colonel Harland Sanders in 1952. Now Rojer
Eaton is the president of the company. And Harvey R. Brownlea is the CEO of company. Transcom Foods
Limited, a concern of Transcom Group is the franchisee of KFC in Bangladesh.

Employee

KFC have almost 24000 of employee as the part of internal environment

External environments

External environment refers to those business environment components which are outside the
company. In word where the company run there business. Like the consumer. Govt. etc

Consumer

KFC generally target the upper middle class people and young people of Bangladesh. Young people are
the main consumer of the KFC.

Government

Government is also is the part of the external environment. Govt. influences the company through
different regulation and rules.

Competitors

Every organization has some competitors who provide similar goods & services. KFC also have some
competitors in the food market. Although KFC access a unique place in the market because of its secret
recipe and brand name, it faces a tough competition by other food brands. Those brands may not have
the same recognition and taste as KFC, but

they attract a good number of customers because of their low price. The main competitors of KFC are -

BFC
CFC
DFC

FFC etc.

There are some other companies like NFC and RFC who are also involved in this competition. In the
metro shopping mall, there is also a KFC (king fried chicken).some people consider it as real KFC.

These fast food companies provide customers with similar types of fried chicken for low price. The
chicken may be different in taste but they use the same formula to make their fries crispy as KFC does.
As a result, they become successful in attracting customers. Moreover, as these companies provide fried
chicken for low price, they get a huge number of customers. In KFC the lowest price for fried chicken is
280 taka where in BFC it is only 80 taka. So middle class people our country prefer BFC to KFC. And a
huge number of students, who love fried chicken, are not able to spend a lot of money as their pocket
money is limited. They are regular customers of local food brands as they can afford KFC visit
occasionally.

Uniqueness of the firm

There are some unique qualities in KFC which make the firm different from others. They are given
below-

High quality product
Assurance of purity
Customer loyalty
Unique taste
Customer care
Employee loyalty
Secret recipe
Popular among young generation
Faith and trust of people
Recognized brand etc.

These are the major uniqueness of the firm that makes it different from other firms.

Recent problem in KFC

Recently KFC faced some unwanted problem due to bird flue in Bangladesh. Because of the bird flue
people started to avoid chicken in there dishes. As result people also started neglecting KFC and other
fast food companies in Bangladesh.

Most recently there rises a question about the quality of food in KFC due to having cockcrows in the
burger of KFC. This affected in the consumer loyalty of KFC. Although KFC faced the situation cleverly,
people are still are not sure in the quality of KFC in Bangladesh. These have an impact on sale of KFC.

SWOT Analysis

The acronomy stands for strength, weakness, opportunities and threat of an organization the SWOT
analysis of KFC is given below-

Strengths

Strengths can be found internally in a company and can be used to the companys advantage. The
strengths identified are as follows:

1. KFCs secret recipe

The secret recipe has long been a source of advertising, and allowed KFC to set itself apart from other
food brands.

2. Recognition and reputation

KFCs early entrance into the fast-food industry in 1954 allowed KFC to develop strong brand name
recognition and a strong foothold in the industry. The Colonel is KFCs original owner and a very
recognizable figure, both in the U.S. and internationally, in their new logo.

3. Traditional employee loyalty

As it is a renowned food brand, it has maintained a long and strong network with their employees. In
return they get a very strong employee loyalty which is known as their unique company asset. They
provide their employees with various types of facilities other than salary (long term contract,
recognition, management training.) etc.

4. Improving operating efficiencies by reducing overhead and other operating costs can directly affect
operating profit

Due to the strong competition in the food market, the fast-food chains are reluctant to raise prices to
increase profit. Many of the chains are turning to operating efficiencies to increase profit. For many
companies, operating efficiencies are achieved through improvements in customer service, cleaner
restaurants, faster and friendlier service, and continued high-quality products.

5. Emotional benefit because of recognition

As KFC is a very well known food brand in the market, it was able to create a very loyal group of
customers who rely on their food quality. This group of regular customers serves as an asset for the
company.

6. Strong and experienced management

As KFC in BD is a franchise company, so it follows a systematic management system. They are bound to
follow a specific system. They can not change it whenever they want. It has been followed successfully
for couple of years.

7. High quality and 100% pure product

As it follows a very systematic and secret recipe, they are able to maintain a high quality in their food. As
it is a franchise company, so they are not allowed to change or share the recipe. They are bound to
maintain a specific quality level in food making.

Weaknesses

1. KFC has a long time to market with new products

Because of the nature of the chicken segment of the fast food industry, innovation was never a primary
strategy for KFC. However, during the late 1980s, other fast food chains began to offer chicken as a
menu option.

2. High production cost comparing to the competitors companies

KFC has to maintain a quality level in food making. So their production cost is higher then their
competitors. To gain their production cost they ask for a pretty much higher price for their fast food.

3. No access to home service

KFC do not offer any home service like pizza hut and dominos, as a result they loss a good number of
customers. Sometimes people want to enjoy the food in their own home with all of their family
members. Sometimes people also get tired and do not want to spend the time to travel to the
restaurant.

4. Lack of branch

KFC have only a few branches in the Dhaka city. They do not have their branch in shopping mall like
Bashudhara city like other fast food brands like BFC or FFC. As they have only few branches in the
renowned area, so they loss a huge number of customers residing in other parts of Dhaka.

Opportunities

1. Increasing demand

The demand for fast food is increasing day by day. Formerly, people used to have it occasionally. Now
they like to have it regularly. Even in occasions or party, they prefer fast food to desi food. So, it is a very
good opportunity for the fast food companies to sell their products to customers.

2. Fondness of youth

Todays youth are getting westernized. They are following all of latest western fashion. They are
following their food habit too. Now they like fast food very much. All of the fast food companies are
using this opportunity very intelligently.

3. Daily needed product

Now the children as well as their parents are passing a quality time of the day outside their home. All of
the food companies can take advantage of this opportunity. As now people love fast food more, so the
fast food companies are enjoying the most benefits of this opportunity.

Threats

1. Increasing competition and rising sales of substitute products

Faced by slowed sales growth in the fast-food industry, other segments of the industry have turned to
new menu offerings while KFC still offers its limited choice of chickens.

2. Changing preferences of consumers

During the 1980s, consumers began to demand healthier foods and KFC was faced with a limited menu
consisting mainly of fried foods. In order to reduce KFCs image as a fried chicken chain, it changed its
logo from Kentucky Fried Chicken to KFC in 1991.

3. Inflation in local market

When the real value of money decreases it creates inflation in the economy. During inflation, people
have less money to spend as well as the price of raw materials also rises. It creates threat for the overall
economy. As a result, the food market also gets affected by it.

4. Sharp rise in the production cost

Rise in the price of raw materials increases the total production cost. So when the price of raw materials
increases, KFC needs to increases its price. As a result, consumers become less interested to spend a
huge amount of money on fast food.

5. Instability of the price of raw materials

In our country the price of chicken is not stable. So the fast food brand like KFC faces a problem in
setting their menu. The price of raw materials changes almost everyday, but they can not change their
price list everyday.

Findings

While doing this assignment, as we have done a research on KFC we get familiar with some of the
problems of the company.

High price

KFC has set a very high price for their fast food. So the middle class people of our country can not even
think of going to KFC. Children of middle class families treat it as a dream coming true whenever they
get chance to go to KFC. They also loss a huge number of customers who can not afford KFC visit
regularly but they enjoy it occasionally.

Limited choice

KFC is famous for its unique taste but it offers a very limited number of choices in drinks and fried
chickens for a long period of time. They do not change their menu regularly like pizza hut.

Lack of special offer

KFC hardly give any special offer like happy price menu for students and kids. In India these types of
offer is available for the youth. They do this type of things to attract and create a new customer
segment.

Recommendations

In the findings we have mentioned a number of problems about KFC in bd. here are our
recommendation about solving the problems. They should try to -

reduce their price a little bit
increase their number of branches
offer home service to the customers
offer happy price menu occasionally
offer different flavor of fried chicken

Conclusion

In this assignment, we have talked about a famous food brand- KFC. Here we talked about their
background, environment, competitors etc. we also made a SWOT analysis which enabled us to know
about their strengths, weaknesses, opportunities and threats. Based on this segment, we also find out
some of their problems and made recommendation. In one part, we made an analysis about the recent
problem faced by them. Although they are famous for their quality, it is obvious to have some problem
too. They should try to solve their problem as soon as possible and continue to serve their customers
with great quality.