CHAPTER 1

INTRODUCTION
About the topic
KFC (the name was originally an initialism for Kentucky Fried Chicken) is a fast
food restaurant chain that specializes in fried chicken and is
headquartered in Louisville, Kentucky, United States (US). It is the
world's second largest restaurant chain (as measured by sales)
after McDonald's, with 18,875 outlets in 118 countries and
territories as of December 2013. The company is a subsidiary of
Yum! Brands, a restaurant company that also owns the Pizza Hut
and Taco Bell chains.
KFC was founded by Harland Sanders, an entrepreneur who began
selling fried chicken from his roadside restaurant in Corbin,
Kentucky, during the Great Depression. Sanders identified the
potential of the restaurant franchising concept, and the first
"Kentucky Fried Chicken" franchise opened in Utah in 1952. KFC
1

popularized chicken in the fast food industry, diversifying the

market by

challenging the established dominance of the hamburger. By

branding himself as "Colonel Sanders," Harland became a
prominent figure of American cultural history, and his image
remains widely used in KFC advertising. However, the company's
rapid expansion saw it overwhelm the ageing Sanders, and in
1964 he sold the company to a group of investors led by John Y.
Brown, Jr. and Jack C. Massey.KFC was one of the first fast food
chains to expand internationally, opening outlets in England,
Mexico and Jamaica by the mid-1960s. Throughout the 1970s and
1980s, KFC experienced mixed fortunes domestically, as it went
through a series of changes in corporate ownership with little or
no experience in the restaurant business. In the early 1970s, KFC
was sold to the spirits distributor
Heublein, who were taken over by the R.J. Reynolds food and
tobacco conglomerate, who sold the chain to PepsiCo. The chain
continued to expand overseas however, and in 1987 KFC became

the first Western restaurant chain to open in China. The chain has
since expanded rapidly in China, which is now the company's
single largest market. PepsiCo spun of its restaurants division as
Tricon Global Restaurants, which later changed its name to Yum!
Brands.

KFC's original product is pressure fried chicken pieces, seasoned

with Sanders' recipe of 11 herbs and spices. The constituents of
the recipe represent a notable trade secret. Larger portions of
fried chicken are served in a cardboard "bucket," which has
become a well known feature of the chain since it was first
introduced by franchisee Pete Harman in 1957. Since the early
1990s, KFC has expanded its menu to ofer other chicken
products such as chicken fillet burgers and wraps, as well as
salads and side dishes such as French fries and coleslaw, desserts
and soft drinks, the latter often supplied by PepsiCo. KFC is known
for the slogan "finger lickin' good," which has since been replaced
by "Nobody does chicken like KFC" and "So good."

HISTORY
Harland Sanders was born in 1890 and raised on a farm outside Henryville,
Indiana. When Harland was five years old, his father died, forcing his mother to
work at a canning plant. This left Harland, as the eldest son, to care for his two
younger siblings. After he reached seven years of age, his mother taught him how
to cook. After leaving the family home at the age of 13, Sanders passed through
several professions, with mixed success. In 1930, he took over a Shell filling
station on US Route 25 just outside North Corbin, Kentucky, a small town on the
edge of the Appalachian Mountains. It was here that he first served to travelers the
recipes that he had learned as a child: fried chicken and other dishes such as steaks
and country ham. After four years of serving from his own dining room table,

Sanders purchased the larger filling station on the other side of the road and
expanded to six tables. By 1936, this had proven successful enough for Sanders to
be given the honorary title of Kentucky colonel by Governor Ruby Laffoon. In
1937 he expanded his restaurant to 142 seats, and added a motel he purchased
across the street, naming it Sanders Court & Caf.

Sanders was unhappy with the 35-minutes it took to prepare his chicken in an iron
frying pan, but he refused to deep fry the chicken, which he believed lowered the
quality of the product. If he pre-cooked the chicken in advance of orders, there was
sometimes wastage at day's end. In 1939, the first commercial pressure cookers
were released onto the market, mostly designed for steaming vegetables. Sanders
bought one, and modified it into a pressure fryer, which he then used to fry
chicken. The new method reduced production time to be comparable with deep
frying, while, in the opinion of Sanders, retaining the quality of pan-fried chicken..
In July 1940, Sanders finalised what came to be known as his "Original Recipe" of
11 herbs and spices. Although he never publicly revealed the recipe, he admitted to
the use of salt and pepper, and claimed that the ingredients "stand on everybody's
shelf." After being recommissioned as a Kentucky colonel in 1950 by Governor

Lawrence Wetherby, Sanders began to dress the part, growing a goatee and
wearing a black frock coat (later switched to a white suit), a string tie, and referring
to himself as "Colonel." His associates went along with the title change, "jokingly
at first and then in earnest," according to biographer Josh Ozersky..The Sanders
Court & Caf generally served travelers, so when the route planned in 1955 for
Interstate 75 bypassed Corbin, Sanders sold his properties and traveled the US to

franchise his chicken recipe to restaurant owners. Independent restaurants would

pay four (later five) cents on each chicken as a franchise fee, in exchange for
Sanders' "secret blend of herbs and spices" and the right to feature his recipe on
their menus and use his name and likeness for promotional purposes. In 1952 he
had already successfully franchised his recipe to his friend Pete Harman of South
Salt Lake, Utah, the operator of one of the city's largest restaurants. Don Anderson,
a sign painter hired by Harman, coined the name "Kentucky Fried Chicken." For
Harman, the addition of KFC was a way of differentiating his restaurant from
competitors; a product from Kentucky was exotic, and evoked imagery of Southern
hospitality. Harman trademarked the phrase "It's finger lickin' good," which
eventually become the company-wide slogan. He also introduced the "bucket
meal" in 1957 (14 pieces of chicken, five bread rolls and a pint of gravy in a

cardboard bucket). Serving their signature meal in a paper bucket was to become
an iconic feature of the company. By 1963 there were 600 KFC restaurants,
making the company the largest fast food operation in the United States. KFC
popularized chicken in the fast food industry, diversifying the market by
challenging the established dominance of the hamburger. In 1964, Sanders sold the
company to a group of investors led by John Y. Brown Jr. and Jack C. Massey for

US$2 million (around US$15 million in 2013). The contract included a lifetime
salary for Sanders and the agreement that he would be the company's quality
controller and trademark. The chain had reached 3,000 outlets in 48 different
countries by 1970. In July 1971, Brown sold the company to the Connecticut-based
Heublein, a packaged food and drinks corporation, for US$285 million (around
US$1.6 billion in 2013). Sanders died in 1980, his promotional work making him a
prominent figure in American cultural history. By the time of his death, there were
an estimated 6,000 KFC outlets in 48 different countries worldwide, with $2 billion
of sales annually. In 1982, Heublein was acquired by R. J. Reynolds, the tobacco
giant. In July 1986, Reynolds sold KFC to PepsiCo for $850 million (around
US$1.8 billion in 2013). PepsiCo made the chain a part of its restaurants division
alongside Pizza Hut and Taco Bell. The Chinese market was entered in November

1987, with an outlet in Beijing. In 1991, the KFC name was officially adopted,
although it was already widely known by that initialism. Kyle Craig, president of
KFC US, admitted the change was an attempt to distance the chain from the
unhealthy connotations of "fried".The early 1990s saw a number of successful
major products launched throughout the chain, including spicy "Hot Wings"
(launched in 1990), popcorn chicken (1992), and internationally, the

"Zinger", a spicy chicken fillet burger (1993). By 1994, KFC had 5,149 outlets in
the US, and 9,407 overall, with over 100,000 employees. In August 1997, PepsiCo
spun off its restaurants division as a public company valued at US$4.5 billion
(around US$6.5 billion in 2013). The new company was named Tricon Global
Restaurants, and at the time had 30,000 outlets and annual sales of US$10 billion
(around US$14 billion in 2013), making it second in the world only to
McDonald's. Tricon was renamed Yum! Brands in May 2002.

OPERATIONS
KFC is a subsidiary of Yum! Brands, one of the largest restaurant companies in the
world. KFC had sales of $23 billion in 2013. KFC has its headquarters at 1441
8

Gardiner Lane, Louisville, Kentucky, in a three-story colonial style building

known colloquially as the "White House" due to its resemblance to the US
president's home. The headquarters contain executive offices and the company's
research and development facilities. KFC is incorporated at 1209 North Orange St,
Wilmington, Delaware. By December 2013, there were 18,875 KFC outlets in 118
countries and territories around the world. There are 4,563 outlets in China, 4,491

in the United States, and 9,821 across the rest of the world. Outlets are owned by
franchisees or directly by the company. Eleven percent of outlets are company
owned, with the rest operated by franchise holders. Although capital intensive,
company ownership allows for faster expansion of the chain. Most restaurants are
furnished with images of the company founder, Colonel Harland Sanders. As well
as dine-in and take-out, many stand-alone KFC outlets offer a drive-through
option. KFC offers a limited delivery service in a small number of markets.
Worldwide, the daily average number of food orders at an outlet is 250, with most
occurring during a two hour peak period. Units include express concessions and
kiosks which feature a limited menu and operated in non-traditional locations such
as filling stations, convenience stores, stadia, theme parks and colleges, where a
full scale outlet would not be practical. Average annual sales per unit was $1.2

million in 2013. As chairman and CEO of Yum!, David C. Novak ultimately has
foremost responsibility for KFC operations. Sam Su is chairman and CEO of
Yum!'s Chinese operations, and Muktesh Pant is the CEO of KFC. Richard T.
Carucci is president of Yum!, and Roger Eaton is the COO of Yum! and the
president of KFC.

CHINA
KFC is the largest restaurant chain in China, with 4,563 outlets. KFC became the
first Western fast food company in China after its first outlet opened in Qianmen,
Beijing, in November 1987. Local food items include rice congee, egg custard tarts
and tree fungus salad, with an average of 50 different menu items per store.
In December 2012, the chain faced allegations that some of its suppliers injected
antiviral drugs and growth hormones into poultry in ways that violated food safety
regulations. This resulted in the chain severing its relationship with 100 suppliers,
and agreeing to "actively co-operate" with a government investigation into its use
of antibiotics. KFC China sales in January 2013 were down 41 percent against the
previous year. To counter sluggish sales, the menu was revamped in 2014.

10

UNITED STATES

A co-branded KFC-Taco Bell in Oscoda, MichiganKFC sales in the United States

in 2013 were estimated at $4.22 billion by Technomic. The basic model for KFC in
the United States, not necessarily duplicated elsewhere, is a focus on low prices, a
limited menu (29 items on average) and an emphasis on takeout. Many KFC
locations are co-located with either Taco Bell or Pizza Hut, or other Yum!
restaurants. When Yum! owned Long John Silver's and A&W Restaurants, these
brands were often co-branded with KFC as well. Often these locations behave like
a single restaurant, offering one menu with food items from both restaurant brands.
In 2003, there were 354 KFC-Taco Bell combines, offering the full KFC menu and
Taco Bell items, and 13 units offering the full KFC menu and a limited number of
Pizza Hut items. The concept originated in 1991, when a KFC-Taco Bell

11

combination opened in Virginia. Some locations were also opened as combinations

of KFC, Taco Bell and Pizza Hut, but this failed to catch on, and Yum! CEO David
Novak blamed a lack of franchisee commitment for its lack of success. Initially,
Sanders and KFC used hydrogenated vegetable oil for frying, but in the 1980s the
company began to switch to cheaper oils such as palm or soybean. In the 2000s it

became apparent that these oils contain relatively high levels of trans fat, which
increases the risk of heart disease. By April 2007, the chain had switched to trans
fat-free soybean oil in all of its US outlets. In 2008, Novak credited low US sales
as being the result of a lack of new ideas and menu items. The Spring 2009 launch
of Kentucky Grilled Chicken only resulted in a temporary halt to the sales decline.
In 2010 KFC announced a turnaround plan that included improving restaurant
operations, introducing value items and providing healthier menu options. In the
same year, Advertising Age noted that KFC was losing market share to its smaller
chicken restaurant rival, Chick-fil-A. In 2011 Bloomberg News referred to KFC
US as "an also-ran to McDonald's Corp." In 2012, Forbes magazine described how
many of the KFC outlets were "aged and uninviting," and that the chain "hasn't
introduced an exciting new food item in ages."
KFC was described in 2012 by Bloomberg Businessweek as a "muscular player" in
developing regions, specifically Africa, China and India, while noting its falling
12

market share in the US to rivals such as Chick-fil-A and Popeyes. Some analysts
speculated that KFC would begin spinning off its ailing US operations. That year,
the company began divesting control of company-owned US restaurants to

franchised operations, with the intention of reducing overall company ownership

from 35 percent to 5 percent.

JAPAN
Japan is the third-largest market for KFC after China and the United States with
1,200 outlets. In Japan, 70 percent of sales are takeout, with customers tending to
buy fried chicken for parties and other special occasions and eating it as a side
dish. KFC Japan was originally formed as a joint venture between the American
parent and the Japanese Mitsubishi Corporation. After four years of negotiations,
Mitsubishi was awarded the franchise rights to KFC in Japan, and a test store was
opened at the Osaka World Expo in March 1970. After the dbut proved to be a
success, the first store proper was opened in the suburban location of Nagoya in
November 1970. The American parent wanted suburban locations, whereas
Mitsubishi had argued for city centre locations, as the car had not been widely
13

adopted in Japan at that time. Two more locations were opened in Osaka, but the
stores struggled, and after less than a year operations had lost JP 100 million. As a
result of this failure, Mitsubishi's original plan for urban locations was pursued.
The first new strategy store opened in Kobe in 1972, an upmarket residential area

with a large Western expatriate community. The new strategy was a success, and
by December 1973, 100 outlets had been opened. In December 1974, KFC Japan
began to promote fried chicken as a Christmas meal. Eating KFC as a Christmas
time meal has since become a widely practised custom in Japan. Harland Sanders
himself visited the Japanese operations in 1972, 1978 and 1980. In August 1990,
KFC Japan was listed on the Tokyo Stock Exchange. KFC had benefited from the
economic boom in Japan during the 1980s, but a rapid expansion of outlets saw
franchisees taking market share from each other, and around 100 outlets were
closed down in the mid-1990s. In 2000, KFC Japan reported sales of nearly $598
million. In December 2007, Mitsubishi assumed majority control of KFC Japan in
a JP 14.83 billion transaction. As of December 2013, there were 784
KFC outlets in the United Kingdom. Restaurant ownership is split
40 percent equity and 60 percent franchised. Annual sales
amount to 60,000 metric tonnes of chicken, 60 percent of which is

14

purchased from the four largest suppliers in the UK, including

Faccenda Group and 2 Sisters Food Group, and delivered fresh to
outlets at least three times a week. The remaining 40 percent is
sourced from companies in Europe, Thailand (including Charoen
Pokphand Foods) and Brazil. All of the Original Recipe chicken is
sourced within the UK. England had the first overseas

branch of KFC which opened in Preston in the North West in May

1965, and was the first American fast food restaurant chain in the
country, pre-dating the arrival of McDonald's, Burger King and
Pizza Hut by almost a decade The first London branch opened in
North Finchley in November 1968. In 1971 there were 31 outlets;
by 1975 the chain had grown to 250 outlets. In the late 1970s and
throughout the 1980s, KFCs began to introduce seating. KFC
opened its first drive through restaurant in the UK in 1984. By
1987 the company had almost 400 outlets. In 2013, KFC rolled out
Lavazza cofee across all of its UK outlets.

15

AUSTRAILIA & NEWZEALAND

A KFC outlet in Derwent Park, a northern suburb of Hobart, Australia.There are

over 600 KFC outlets in Australia, and around 100 in New Zealand. KFC was the
first American style fast food chain to open in both countries. In 2013, KFC
reported an annual turnover of almost AU$2 billion for its Australia and New
Zealand operations. Yum! directly operates 160 KFC outlets in Australia. The
largest of the 53 independent franchisees in Australia is Collins Foods, which

operates 169 stores. KFC's major poultry suppliers in Australia are Inghams,
Steggles and Turi Foods. The first Australian KFC was opened in 1968 in
Guildford, a suburb of Sydney. The franchise was owned by a Canadian
entrepreneur called Bob Lapointe. Between 1970 and 1971, 75 outlets were
opened. This had a major impact on Australian chicken production, which
increased by 38 percent during the period. By 1995 there were 452 outlets, and the
company employed 12,000 staff. That year, Australia produced 35 percent of
KFC's international earnings.

INDIA

16

In December 2013, there were 299 KFC outlets in India. As well as the standard
KFC offerings, the chain sells a chickpea burger and hot wings with chilli lemon
sprinkles. A major franchise holder is QSR Brands (M) Holdings, which operated
26 outlets as of 2012.
The first Indian KFC was a two-storey outlet on the fashionable Brigade Road in
Bangalore in June 1995 According to journalist Michael White, the company could
not have chosen a "more difficult venue for its maiden entre into the country."

Bangalore housed the headquarters of the Karnataka Rajya Raitha Sangha, one of
the most influential, vocal and anti-foreign investment farmers' associations in the
country. There were protests from left wing, anti-globalisation and environmental
campaigners, as well as local farmers, who objected to the chain bypassing local
producers. Many Indians were concerned about the onslaught of consumerism, the
loss of national self-sufficiency, and the disruption of indigenous traditions.The
protests came to a head in August 1995, when the Bangalore outlet was repeatedly
ransacked. The KFC outlet in Bangalore demanded, and received, a police van
permanently parked outside for a year.The outlet was closed on 13 September 1995
by local authorities, who claimed its food was unhealthy. However, the outlet
reopened for business within six hours of its closure, after the Karnataka High
17

Court blocked the local authorities' order on an appeal by KFC. The company had
argued that it prepared food in India using the same formula as in 77 other
countries. Rural activist M. D. Nanjundaswamy subsequently claimed KFC would
adversely affect the health of the impoverished, by diverting grain from poor
people to make the more profitable animal feed. Former environment minister
Maneka Gandhi joined the anti-KFC movement KFC was also accused of using
illegally high amounts of (MSG) and frying its food in fat A second store opened

in Delhi, but was closed by the authorities throughout November, purportedly for
health reasons, but more likely to avoid a repetition of the Bangalore incident.The
Delhi outlet soon closed permanently.KFC began to expand outside of Bangalore
in 2004,with a localized menu that was the most extensive meat-free menu across
the chain's worldwide operations. It introduced a vegetarian menu that included
rice meals, wraps and side dishes and, like McDonald's, served eggless mayonnaise
and sauces. Unnat Varma, marketing director of KFC India, states "The vegetarian
offerings have made the brand more relevant to a larger section of consumers and
that is necessary for KFC's growth." KFC also began using Indian spices and
cooking techniques to localize its chicken dishes. By 200809, KFC operated 34
outlets in India.

18

PRODUCTS OF KFC IN INDIA

CHICKEN DELIGHT: chicken meal that include Original Recipe or
Hot&Crisry with fries and Pepsi.
BURGER MEALS: Very famous range of KFC burger, Zinger meal, Zinger
chicken meal and Veggie feast meal.

BUCKET: Hot & Crispy, Original Recipe, Chicken Strips.

RICE MEAL: Veggie Rice Meal, Chicken Rice Meal.
DESSERTS: Brownie Sundae, Soft Twirl.

PROBLEM RECOGNITION : PERCEVING A NEED

The need was hunger and the immediate satisfaction of hunger through fast
food.
Mainly targeted at chicken lovers.

19

 The traditional eating habits in India have changed.

Youngsters, now days want a hanging joint with good food.

Growing fast food market : KFC came up as a Burger king.

INTERNAL INFLUENCES ON CONSUMER BEHAVIOUR
MOTIVATION :For some, good food is one of the most important need
because of this reason people like to try and experiment with their taste.
Any new food joint is first visited by people who are internally
motivated.

PERCEPTION: The people perceived KFC of international standards

and created a mind set that KFC would serve food of good quality and
taste.
LEARNING
Behaviour that result from
Repeated experience

20

Thinking.
Over years people have learnt about KFC from their advertisements, their
print media promotions. As KFCs tagline finger licking good has made
people lean that it related to good taste.
DRIVE: for good food
CUES: advertising symbols, established KFC as one of food leaders.
RESPONSE: purchasing products at KFC
REINFORCEMENT: repeat purchase.
VALUES, BELIEFS, AND ATTITUDES

ATTITUDE FORMATION: for years people in India have followed the

same Traditional food habits. Emphasis has always been given on the
nutrition content of the food. Our values and beliefs have been carried
forward from ages.

21

 ATTITUDE CHANGE: Now the emphasis is more on the taste than the
Traditional nutrient values. With large no of entrants in India, the
consumption pattern of people have completely changed.
With addition of good quality food in market, the mind set of people
are changing and they accept these fast food joints a good place to enjoy
their meals.
LIFESTYLE
As the internal factors are considered, the change is food pattern are
affected by attitudes and beliefs, but there is an important factor that
has constantly changed many lifes of many people.
People are now oriented towards

Principles
Status
Action
These are governed by income, education, intelligence, energy level etc.

22

EXTERNAL INFLUENCES ON CONSUMER BEHAVIOUR

REFERENCE GROUP
Reference group is the one to which an individual refers. An individual
adapts its self to the group he is in. His consumption patterns, taste,
beliefs, behavior etc changes according to the group.
As the consumption pattern changes, person who was not fond of KFC
may change according to eating habits of his group members. Even an
individual develops a taste of his referent group.
So the group has influenced people.

FAMILY INFLUENCE

23

 The traditions followed by family are carried forward in children.

Family consuming non-vegetarian food passes this attitude to their
children also.
Many respondents told us that they are non-veg because of their family.
So people developed their interest of going to KFC because they are non
vegetarians.
Small children go to KFC with their parent, which reflects that family
plays an important role in decision making.
SOCIAL CLASS
KFC is targeted towards upper-middle class of society. For middle
classes they have launched a segment of products at cheaper rates.
Social class is determined by
Income
Occupation
Education

24

Balanced level of all three creates awareness of new products and income gives
the purchasing power.
So social class forms an important part of external influence on
consumers buying behaviour.

CULTURE
Different cultures have different beliefs :for some cultures Non -Veg is
completely prohibited (eg Jain culture), whereas chicken is the main
food item in Punjab. Different cultures permit different beliefs and
norms.
This reflects the consumption patterns of an individual
Culture is a very important factor from the view of a marketer.

25

 As KFC entered India, they studied the India culture, the norms
followed here, as in India beef is not consumed, so they did not include
the beef food items in their menu.

KFC MISSION STATEMENT

We are committed to customer satisfaction through offering high quality with excellent
services and good value.

We take great pride in serving each other, our customer and our communities.

We seek continuous improvement in all that we do.

26

SCOPE
The project speaks about the different types of products & services offered by the
KFC. The project tries to highlight the awareness of the customers in respect to
various products and services offered by the KFC. It also tries to find out
satisfaction rate amongst its customers.

27

OBJECTIVES
1. To know the customer towards KFC.

2. To know the most preferred products.

3. To know the competitive position of KFC.

4. Build an organization dedicated to excellence.

28

5. Consistently deliver superior quality and value in our products and services.

6. Maintain a commitment to innovation for continuous improvement and

grow, striving always to be the leader in the market place changes.

7. Generate consistently superior financial returns and benefits our owner and
employees.
8. To establish a position in Pakistan as a leading WQSR
(Western Quick Service Restaurant) chain, serving good
value added services and Innovative chicken based products.
KFC is consistently providing a pleasant dining experience,
with fast friendly, in a clean and convenient location. Every
moment dedicated to providing excellent and delighting
customers.

VALUES OF KFC

Focusing all resources to the restaurants operation because

that is where we serve our customers.
Reward and respect the contributions of each individual at KFC.
29

 Expand and update training with time and be the best we can be and more.
Be 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.

Encourage new and innovative ideas because these are the

key to our competitive growth.
Reward result and not simple eforts.
Dedicate ourselves to continuous growth in sales, profit and
size of organization.
Work as a team.

KFCs PRODUCTS
a) Core Benefit
The core benefit is To Kill hunger.
b) Products of KFC
KFC have three main product lines. The burgers, chicken meals and the snacks.
The category of chicken is relatively static.
c) Burgers

30

The category of burgers is

1. Zinger
2. Chicken Burger
3. Zinger Xtreme

4. Fish Zinger
5. SUB (60,80)
6. *Col. Filled Burger

d) Snacks
Snack family has been various products.
1. Arabic Rice
2. Fruit Salad
3. *Corn on the cob
4. *Scoop of Walls
5. Fries
6. HOT SHOTS
7. Rice Spice

(*) These items are not available at a few restaurants.

31

e) Chicken Meals
Chicken meals include the different combinations of fried drum sticks.

Features
Different and better taste
Hot and Spicy version of chicken

Superior Quality

Marketing Strategy
Segmentation
KFC has divided the market of Pakistan into distinct groups of customers with different
demands, tastes and behavior who require separate products or marketing mix.
In Pakistan the niche marketing is being used for particular classes of people.
They have made segments of the market on the following bases.
Demographical
Behavior
Geographical

32

CHAPTER-2
LITERATURE REVIEW
Kentucky Fried Chicken (KFC) Malaysia is a major Quick Service
Restaurant (QSR) operator in Malaysia and has been established for just
over 20 years now. It serves mainly chicken related items, but offers side
dishes to its consumers as well. Lately, more and more Malaysians have
been opting for a healthier eating diet as a large number of them have
become more health conscious. This has opened the door for KFCs main
competitors, such as McDonalds, to come out with a new range of
healthier products, allowing them to mount a greater challenge on KFC
Malaysias current position as Malaysias leading fast food operator. As a
response to the advancement made by KFCs competitors in providing
healthier fast food, KFC are to introduce a new set of healthier products
33

that would be mainly targeted at health conscious people, living in

Malaysia. Its target market would largely be based on segmentation of age,
where it would be focused on customers in the age group of between 4 to

40 years old. KFC Malaysia would, nevertheless, have to fight off fierce
competition from other fast food operators, such as Kenny Rogers, Burger
King, A&W, and KFCs biggest rival, McDonalds, who are also trying to
take hold of the new market of healthier products. The new healthier menu
that KFC Malaysia is going to introduce would not only be a new healthier
alternative to its existing products, but also an addition to what it already
has to offer. The pricing and promotion strategies would also be looked into
as KFC Malaysia prepares to introduce its new healthier menu to the public.
A detailed explanation of the summary above would be the content of this
following report.

34

CHAPTER 3
RESEARCH DESIGN
In order to accomplish the objectives of the study, it is essential to articulate the manner
in which it is to be conducted, i.e. the research process is to be carried-out in a certain
framework. The Research Methodology, which follows is the backbone of the study.The
system of collecting data for research projects is known as research methodology. This
section deals with the methodology used in the present investigation. It describes the
Research Design, Types of data, Methods of data collection, Sample size, Sampling
Design, and finally the Area Covered, and after that statistical treatment through which
data have been obtained and analyzed.

3.1- RESEARCH DESIGN

35

Research design is the plan, structure and strategy of investigation. To formulate a good
research design it is necessary to know that what kind & what nature of research are to be
conducted. Research design is considered as a "blueprint" for research, dealing with at

least four problems: which questions to study, which data are relevant, what data to
collect, and how to analyze the results.

3.1.1-Type of the Research

The research is descriptive in nature. The study conducted is aimed at describing the
existing phenomenon. For that manner I will consult magazines, newspapers, books,
reference materials & internet.

3.1.2- Nature/Feature of the research

Few features of descriptive research are as follows.
Descriptive research, also known as statistical research, describes data and
characteristics about the population or phenomenon being studied.
Although the data description is factual, accurate and systematic, the research cannot
describe what caused a situation.
Thus, Descriptive research cannot be used to create a causal relationship, where one
variable affects another.

36

3.2- TYPES OF DATA

The data which will be used, are both like Primary & as well as secondary.

3.2.1- Primary Data

A questionnaire survey will be conducted for the purpose of the study. I will design one
questionnaire for the purpose of survey. The questionnaire will be prepared for the

consumers/customers. Collected information will be analyzed under the light of literature

and survey.

3.2.2- Secondary Data

Secondary data is the data which already exists. I will use secondary data for the purpose
of study. Secondary data will be collected mainly through internet and some help will be
taken from books and articles.

3.3-METHOD OF DATA COLLECTION

In this research, as described earlier also that Primary and Secondary both data are
required, so the best method to collect Primary data is Questionnaire/Survey Method.
Here I have used mainly close ended questions in my Questionnaire; there are various

37

parameters/criteria which are completely for measuring & analyzing consumer

preference. Besides this, I have also used some additional close ended questions in order
to make the research more specific and precise. For secondary data collection I have

visited various KFC as well as other fast food outlets. I also referred various books &
magazines for literature review

3.4- SAMPLING DESIGN

I have chosen the Convenient sampling under Non-probability sampling. I have
selected this technique of sampling because the locations of KFC stores in Bareilly are
very scattered and the stores are far away from one another. So in order to solve this
problem I did it in this way.

3.4.1- Sampling Element

The basic elements to be studied are mainly the Consumers visiting the selected KFC
outlet and In-charge of the stores.

3.4.2- Sample Size

50 respondents.

38

3.4.3- Sample Area

Bareilly

Since this is a research based on organized fast food outlets so I have visited following
areas of Bareilly for responses. Now the responses collected from these areas would
represent entire Bareilly as they are the key regions:-

Pizza hut
Mcdonald

Dominos

3.5- STATISTICAL TOOLS USED

The statistical tools are:-

3.5.1- Questionnaire
The questionnaire has been designed for taking the customers response in order to make
a solution & conclusion over the research problem. The questions in the questionnaire
will only be close ended, which will be having 2 to 6 options in order to get the choice of
respondents. one for finding most preferred product/item in the organized fast food store
& one for making a comparison between various organized fast food outlets.A complete
copy of questionnaire is attached in the last of the report under the part of annexure.

39

RESEARCH METHODOLOGY
RESEARCH BACKGROUND

Research

Quantitative

Research design

Descriptive study

Data collection

Primary Data

Sample area

Bareilly

Sample size

50 customers

Sampling design

Non-probability technique

Sampling Technique

Convenience sampling

Research approach -

Survey method

Research instrument

Questionnaire

Sampling tool

Structured Questionn

Analytical tool

Percentage

40

CHAPTER-4
INTERPRETATION & ANALYSIS
Q1. What are the factor's which make you to visit KFC?

a. Ambience

b. Taste of chicken

c. Product price

d. Service

Service; 10%
20%
Product price;Ambience;
10%

Taste of chicken; 60%

The results were as astonishing.Each person had no questions or hesitations in rating KFC.

41

Q2. Which product do you like most?

a. Veg product's

b. Non veg product's

Veg products; 30%

Non veg products; 70%

As the kfc provides the delicious & crispy products that are also nutrious so mostly he peoples
like the products belonging to non veg category. As the KFC IS the pionees in its field.

42

Q.3. With reference to question no 2 if you prefer non veg then go for which product?

a. Chicken shots

b. Chicken burger

c. Chicken fring

d. Leg bucket

Sales
Leg bucket; 20%
Chicken shots; 40%
Chicken fring; 15%
Chicken burger; 25%

The third question asked to the peoples is that out of variety of non veg products which is liked
very much by most of the peoples and 40% peoples said chicken shots is on their prior list.

43

Q4. With reference to question no 2. if you prefer veg then go for which products?

a. Zingkong boxes

b.Veg snacker

c. Vegetarian sandwich

d. Veggie burger

Veggie burger; 14%

Zingkong boxes; 35%
Vegetarian sandwich; 33%
Veg snacker; 18%

While in the veg category mostly of the peoples said that they liked Zingkong boxes as followed
by others. 14% like veggie burger,18% like veg snacker, & 33% like vegetarian sandwich.

44

Q5. In which way KFC chicken is differ from other competitors?

a. Quality

b. Price

c. Place

d. Hygiene factor

Column1

Hygiene factor; 35%

Quality; 45%
Place; 10%
Price; 10%

Most of the peoples like KFC by quality wise.while other likes it price,place & hygiene factor
10%,10% & 35% respectively.

45

Q6. How do you come to know about services?

a. More promotion

b. Free pemplates

c. Veg products

d. Discount

Column1

Discount; 20%
Veg producys; 30%

More promotion; 25%

Free pemplates; 25%

Most of customers will know about the KFC by of the veg products 30%, free pemplates 25%,
More promotion 25% & by discount 20%.

Q7. Rate the services of KFC on scale of 1 to 4?

46

1. Highly satisfied

2. Hihgly dissatisfied

3. Satisfied

4. Dissatisfied

Sales

Dissatisfied; 20%
Highly satisfied; 35%

Satisfied; 30%
Highly dissatisfied; 15%

Peoples rate the services of KFC as highly satisfied with 35%, highly dissatisfied
Having 15%, satisfied having 30% and dissatisfied having 20%.

Q8. What attracted you to go to KFC as compared to other?

a. Brand image

b. Globally recognised
47

c. Quick service

d. Crispy & delicious

Column1

Crispy & delicious; 20%

Brand image; 30%
Quick service; 15%

Globally recognised; 35%

As it is known globally so it have good global image said by 35%,brand image by 30%,crispy
and delicious by 20% and quick response by 15%.

Q9. Which thing you disliked about KFC?

48

a. Delivery time

b. High price

c. Water service

d. Queue

queue; 10%

Delivery time; 20%

water service; 40%

high price; 30%

Most of the people dislike water facility,30 % people dislike high price and few dislike delivery
time and and queue

Q10. Major competitors of KFC?

49

a. Local players

b. Butchers

c. other non veg shop

d. Veg shop

Column1

veg shop; 20%

local players; 40%
other non veg shop; 20%
butcher; 20%

Most of the competitors are local players at 40% level, and few equal are butchers,veg shop- and
other non veg shop at 20% level.

CHAPTER -5

50

FINDINGS

1. It has been clearly observed that in Bareilly city there are no fix time of fooding,
whenever they feel need of the product they immediately go there.
2. Consumers prefer to get the product from the nearest stores according to:a.
b.
c.
d.
e.

Location
Quality
Variety
Pricing and Distribution
Customer Service

3. There was an increase in number of youths in getting the products because

from the KFC.
4. The responses for Pizza hut, Dominos, & Mcdonald from the surveyed people
is also good approx 100% of the respondents have at least once visited the
above stores.
5. Most of the people always like to visit the nearest KFC stores in their locality.
6. In survey we find that there are significant amount of people who visit the
stores as a leisure time activity and childrens demand.
7. Out of various food stores, KFC has huge customer base as it is the priority of
most of the respondents.
8. Ready to eat foods like burgers & Pizzas are bought on weekly basis.
9. In Bareilly city people dont prefer to eat Frozen foods like frozen meat .
10.Customer finds the convenience, quality, service, product availability, are good
as per survey.
51

11.In the KFC stores most of the consumers find employees behaviour very co
operative towards them.
12.Most of the people found that pricing of the are higher than other food store.
13.Most of the respondents said that KFC is comparatively better Food store than
other like Pizza hut ,Mcdonald & Dominos etc on various parameters and
dimensions like Quality, Pricing, Range of the products, & goodwill.

CONCLUSION
From the above survey now we can conclude that: The main factors that affect the KFC business are pricing and location.
Indians are price sensitive they seek value for money so price is also matter for
Indian customers.
The purchasing pattern of the people in one location is totally different from
other location in Bareilly city.
Customer service is much important as a part of business strategy.
The reason for which people prefer to eat from KFC is variety of products
available under one roof and customers are not required to move from one
place to another place for his/her products needs.
High level of consumerism is maintained.

52

RECOMMENDATIONS

New policies should be updated on websites at regular interval.

Employees should more focuses on consumerism.

Make out concern on costlier products.

They should more focuses on strategies and functions so that they

can compete with other players.

53

 More advertising should required.

Bring out more veg products.

Focuses on other class of society also.

54

LIMITATIONS
1. The consumer preference is very dynamic and tough to measure and analyse.
We cant predict the behaviour of the human being exactly and just because this
topic is only based on consumer preference so this research report may not be
applicable in all areas for judging customer buying behaviour.
2. Analysis of customer preference is complex subjects, which uses nonobjectives method, which is not reliable.
3. Due to lack of time I was unable to spend more time with the respondents so
that the exhaustive study could not be conducted.
4. Generally the respondents were busy in their work and were not interested in
responding rightly so the responses might be wrong or irrelevant also.
5. Most of the respondents might not be interested to disclose the information
about the various parameters shown in the questionnaire so they might have
given the fake information, which they are really experiencing.
6.

CHAPTER 6
55

BIBLIOGRAPHY
I have taken the help of many sources which have provided me the valuable information
about my project. This information helped me in presenting this report in an effective and
efficient manner.
My valuable Source for Primary data collection was Questionnaire.
For secondary data I visited the websites like...
www.KFC.com
www.google.com
www.wikipedia.com
I have gone through papers & books like...
Journals, reports, papers of various companies like business today,Readers digest,
etc related to customer buying behaviour
Business world (Magazine)
Business Line (Newspaper)
C.R. Kothari for Research Methodology (Book)
Beri G.C. Marketing Research (Book)

56

ANNEXURE
Questionnaire for the research is as follows.

Purpose- This questionnaire is being developed for analyzing the buying

behaviour of consumer towards KFC in Bareilly.

57

Confidentiality-The information & data collected from this questionnaire shall

be kept confidential & shall be used only for academic purpose.

Instructions1.
2.
3.
4.

The questionnaire contains only close ended questions.

Please read the question carefully before answering.
Please use ball point pen to answer the question.
You may tick more than one option if you think so.

1- NAME........................................................................................................................
2- AGE GROUPA- 15 to 20

B- 21 25

C- 26 30

D- 30 +

B- Female

3- GENDERA- Male

4- CONTACT No......................................................................................

58

Q1. What are the factor's which make you to visit KFC?

a. Ambience

b. Taste of chicken

c. Product price

d. Service

Q2. Which product do you like most?

a. Veg product's

b. Non veg product's

Q.3. With reference to question no 2 if you prefer veg then go for which
product?

a. Chicken shots

b. Chicken burger

c. Chicken fring

d. Leg bucket

59

Q4. With reference to question no 2. if you prefer non veg then go for which
products?

a. Zingkong boxes

b.Veg snacker

c. Vegetarian sandwich

d. Veggie burger

Q5. In which way KFC chicken is differ from other competitors?

a. Quality

b. Price

c. Place

d. Hygiene factor

Q6. How do you come to know about services?

a. More promotion

b. Free pemplates

c. Veg products

d. Discount

60

Q7. Rate the services of KFC on scale of 1 to 4?

1. Highly satisfied

2. Hihgly dissatisfied

3. Satisfied

4. Dissatisfied

Q8. What attracted you to go to KFC as compared to other?

a. Brand image

b. Globally recognised

c. Quick service

d. Crispy & delicious

Q9. Which thing you disliked about KFC?

a. Delivery time

b. High price

c. Water service

d. Queue

61

Q10. Major competitors of KFC?

a. Local players

b. Butchers

c. other non veg shop

d. Veg shop

: THANK YOU:-

62