New Product Development at KFC

A marketing project on KFC

KFC Multan
KFC Pakistan
Kentucky Fried Chicken

Yum! Brands
Pepsi Cola
Developing and Marketing a new product in KFC
EXECUTIVE SUMMARY

Restaurant business is one of the oldest known to man and to a large extent is still an art
and will remain so in future. System and practices make the job of managing a hotel or
restaurant much similar, but the human element is difficult to systemize. The field of
restaurant business is interdisciplinary. It draws up economics, psychology, management,
food technology, architecture and marketing clustered together. It is a business of
hospitality.
Multan is one of the oldest cities of Pakistan and is expanding everyday. The trend of the
people of Multan is drifting extensively towards modern means of socializing and
relaxation. People are getting more involved in fast food. Therefore, we have
worked on the marketing management of KFC to see how it’s affecting the lifestyle of
people in this locality.
KFC, the name requires no explanation. It is a chain of restaurants
operating in more than 80 countries with over 1000 outlets around the
world – from Shanghai to Sao Polo; from the sand of Saudi Arabia to
the side walks of New York and now in Pakistan. It is part of the Tricon
restaurants internationals which is one of the most leading multinational organizations in
the world. Said to be the second most famous and largest fast food franchise in the
World, No. 1 brand in Asia with the market leader ship in Japan, China, Malaysia,
Indonesia, and Korea.
In this report, we have discussed the history of KFC; Its evolution and expansion in
Pakistan, KFC’s sales and promotion techniques, operational activities and unique style.
This organization’s internal and external analysis, its strengths, weaknesses, opportunities
and threats are discussed in this report.
We have proposed a new product, Chocolate Brownies, which satisfies the KFC
customers who seek dessert in the restaurant but find none. We have discussed its
marketing strategies and pricing policy. If this product is actually introduced, more
customers and more value will be attracted towards KFC.
KENTUCKY FRIED CHICKEN
Food, fun & Festivity, this is what KFC is all leading the market since its
inception, KFC provides the ultimate chicken meals for a chicken loving
nation. Be it colonel sanders secret original recipe chicken or the hot &
spicy version, every bite brings a yum on our face. At KFC we can
proudly say, “We do chicken right”.
Perfecting its secret recipe of 11 herbs and spices in 1939, KFC has
come a long way. With over 10,000 outlets in the world, KFC has
maintained its title, for the last 60 years, of being the chicken Experts.
Opening the first KFC outlet in Gulshan-e- Iqbal in 1997. KFC wore the
title of being the market leader in its industry. Serving delicious and
hygienic food in a relaxing environment made KFC everyone’s favorite.
Since then, KFC has been constantly introducing new products and
opening new restaurants for its customers. Presently KFC is branched
out in nine major cities of Pakistan (Karachi, Lahore, Gujranwala,
Sukkur & Muree) with more than 45 outlets nation-wide.
KFC, based in Louisville, Kentucky, is the world's most popular chicken
restaurant chain specializing in Original Recipe®, Extra Crispy™ and
Colonel's Crispy Strips® chicken with home-style sides and freshly
made chicken sandwiches. Since its founding by Colonel Harland
Sanders in 1952, KFC has been serving delicious, already-prepared
complete family meals at affordable prices. KFC has more than 11,000
outlets in 85 countries and territories around the world, serving some 8
million customers each day.
KFC fast-food chains are currently under the restaurant division of Pepsi Co
Incorporated. Pepsi Co. is a corporation with three divisions including beverages, snack
foods, and restaurants. The restaurant division of Pepsi Co. is named as YUM! Brands
Inc. Yum! Restaurants International (YRI) is the division of Yum! Brands that operates
all restaurants outside the U.S.A. YRI is Pepsi Co.’s fastest growing and most profitable
division. In fact, KFC makes more profit outside the U.S.A. than in the U.S.A. In 2002,
the YRI system opened a record 1,051 traditional restaurants with over 6,000 KFC outlets
and over 4,000 Pizza Huts.
The financial position of PepsiCo is very good. The corporation compares well with
industry averages. Operationally, they have improved the health environment of their
employees and customers by enforcing a smoke-free policy. Also, they have increased
employee training for better service and cleaner restaurants.

THE HISTORY
Colonel Harland Sanders, born September 9, 1890, actively began franchising his chicken
business at the age of 65. now, the Kentucky Fried Chicken (R) business he started has
grown to be one of the largest retail food service systems in the world. And colonel
sanders, a quick service restaurant pioneer, have become a symbol of entrepreneurial
spirit. More than two billion of the colonel’s “finger lickin’ good”, chicken dinners are
served annually. And not just in North America. The colonel’s cooking is available in
more than 82 countries around the world.
He sold his interest in the US 1980 to 1984. The Colonel remained a public spokesman
for the company. In 1976, an independent survey ranked the Colonel as the world’s
second most recognized celebrity.
Under the new owners, Kentucky Fried Chicken Corporation grew rapidly. It went public
on March 17, 1966, and was listed on the New York Stock Exchange on January 16,
1969. More than 3,500 franchised and company-owned restaurants were in worldwide
operation when Heublein Inc. acquired KFC Corporation on July 8, 1971, for $285
million.

KFC’s Original
Recipe
Kentucky Fried Chicken became a subsidiary of R.J. Reynolds
Industries, Inc. (now RJR Nabisco, Inc.), when Reynolds acquired
Heublein Inc. in 1982. KFC was acquired in October 1986 from RJR
Nabisco, Inc. by PepsiCo, Inc., for approximately $840 million.
In January 1997, PepsiCo, Inc. announced the spin-off of its quick service restaurants --
KFC, Taco Bell and Pizza Hut -- into an independent restaurant company, Tricon Global
Restaurants, Inc. In May 2002, the company announced it received shareholders' approval
to change its corporation name to Yum! Brands, Inc. The company, which owns A&W
All-American Food Restaurants, KFC, Long John Silvers, Pizza Hut and Taco Bell
restaurants, is the world's largest restaurant company in terms of system units with nearly
32,500 in more than 100 countries and territories.
Until he was fatally stricken with leukemia in 1980 at the age of 90, the Colonel traveled
250,000 miles a year visiting the KFC restaurants around the world.
And it all began with a 65-year-old gentleman who used his $105 Social Security check
to start a business.
 KFC MILESTONES IN CORPORATE HISTORY
• 1964 John Y, Brown and Jack Massey purchased Kentucky Fried
Chicken for US $ 2 million.
• 1969, Corporation listed on the New York Stock Exchange, Colonel
buys the first 100 shares.
• 1986 Kentucky Fried Chicken purchased by Pepsi Co.
• 1991 New logo is introduced, replacing Kentucky Fried Chicken with
KFC.
• 1992, In Japan, KFC opens its 1000 restaurant.
• 1994 KFC opens its 9000 restaurant in the world in Shanghai China.
• 1997, Tricon Global restaurant and Tricon Restaurants International
(TRI) founded on October 7th.

The restAurant where colonel started his business and worked

THE TRICON FAMILY

• KFC is the part of Tricon, the world’s largest restaurant group with
restaurants in nearly 100 countries around the world.
• Combined with Pizza Hut and Taco Bell, there are nearly 30,000
restaurants worldwide.
• Our brands each lead their categories, generating annual retail sales
over US $ 20 billion.
• We feed more than 18 million people every day.

KFC TODAY
• Today, KFC is the world’s largest and most well known chicken
restaurant chain, with more than 10,000 locations worldwide, in 78
countries. KFC and its franchisees employ more than 200,000 people
worldwide.
• KFC serves more than 4.5 billion pieces of chicken annually, to
approximately 7 million customers a day, worldwide.
 MISSION STATEMENT
“To establish in Pakistan our position as the leading WQSR (Western Quick
Service Restaurant) chain, serving good value, innovative chicken-based products.
Consistently providing a pleasant dining experience, with fast friendly service, in a clean
and convenient location. At all times, we must be dedicated to providing excellent service
and delighting customers.”

GOALS
• Build an organization dedicated to excellence.
• Consistently deliver superior quality, and value in our products and
services.
• Maintain a commitment to innovation for continuous improvement and
growth, striving always to be the leader the market place changes.
• Generate consistently superior financial returns and benefit our
owners and employees.

VALUES
• Focus all our resources to our restaurant operations because that is
where we serve our customers.
• Reward and respect the contributions of each individual at KFC.
• 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 another.
• Commit ourselves to the highest standards of personal and
professional integrity at all times.
• Encourage new and innovative ideas because these are the key to our
competitive growth.
• Reward results and not simple efforts.
• Dedicate ourselves to continuous growth in sales, profit and size of
organization.
• Work as a team.

THE CHAMPS PROGRAM

 Champs stands for the belief that the most important thing each of us can do is to focus
on the customer. It stands for KFC’s commitment to provide the best food and best
experience for the best value.
Champs stands for the six universal areas of customer expectation common to all cultures
and all restaurant concepts. They are:
• Cleanliness
• Hospitality
• Accuracy
• Maintenance of Facilities
• Product Quality
• Speed of Service

Champs is a philosophy to ensure that the customer has a consistent quality experience in
every restaurant, every day, on every occasion and you will be playing a key role in
delivering Champs to our customers.

EMPLOYEE CONDUCT RULES

As an employee at the KFC restaurant, there are certain rules and regulations that the
company expects you to observe you to observe and respect. Such rules are necessary to
ensure that the rights and interests of the company and its assets are protected and a
proper learning environment is maintained.

KFC IN PAKISTAN
Apart from fulfilling our commitment of serving delicious, fresh and
hygienic food and at the same time providing our customer with the
ultimate entertainment; KFC also plays in the economics development
of our country.

• Presently KFC has provided to over 1200 Pakistanis, which adds

up to 6000 individuals directly dependent in KFC Pakistan.
• The Government of Pakistan receives over Rs.10 million per
month from KFC Pakistan as direct taxes.
• 95% of all food and packing material used in KFC Pakistan is
procured locally, which sums up to a purchase of over Rs.35
million per month.
 • Each new outlet developed by KFC Pakistan costs approximately
Rs.40 million, which is a huge amount for our construction
industry.

Franchising is a relatively new phenomenon in Pakistan, but this concept has gained
tremendous acceptance in this market as can be seen from the recent growth trends in the
market. Most of the growth in the past few years has taken place in the food business,
where the present market size for internationally franchised outlets is estimated in excess
of Pak Rupees 1.2 billion (USD approximately 24 million) in terms of annual sales. US
food outlets such as Pizza Hut, Kentucky Fried Chicken (KFC), McDonalds, TGI
Friday’s, Subway, Taco Maker, and Nacho Nana’s are already present in Karachi. Pizza
Hut, McDonalds and KFC are also present in Lahore.
The non-food sectors such as retailing, convenience stores, hotels and motels, courier
service, security services, and educational training centers are going to be the growth
areas of the future. US companies dominate the franchise market in Pakistan in large part
due to the fact that US firms were the pioneers in this sector and the first to set up their
outlets in Pakistan. In addition, the US firms entered the market with a long term
commitment and provided full support to their local partners. Also, U.S firms and their
products are internationally known for their quality products and superior service. Many
US products such as McDonalds and Kentucky Fried Chicken were well-known and
recognized in the urban areas of Pakistan even before starting their operations in the
country.
There are no local firms offering indigenous franchise opportunities, although several
Pakistani entrepreneurs have acquired master franchise for this region with the objective
to re-sell the franchise to interested parties in the country. The government of Pakistan
does not impose any restrictions on investors who wish to establish a franchise in the
country, but foreign investors are required to inform the board of investment and the state
bank of Pakistan, primarily for the purpose of repatriation of franchise fee or any profits
accrued.
 MARKETING
TARGET MARKET OF KFC in PAKISTAN
Kentucky Fried Chicken has been franchising all over the world for
years. They have about 30,000 franchises all over the world. Ever since
Pepsi co. has bought into the restaurants chain the have started an
expansion program, which has focused not on the increasing number
of the outlets but on the increasing number of branches all over the
world operating in full order. KFC has been in Asia for considerable
amount of while and as it has the policy of novelty and pioneering in branching into
foreign markets it opened its first branch in Lahore on June 20, 1997. It was opened in
the most interactive area of Lahore, Barkat Market. Before opening here the KFC people
conducted a research which was known as the “Barkat Market Analysis”. The chain has
been in the expansion mode for a few years and they branched into Pakistan after
researching the market of Pakistan especially Lahore.
The reason behind targeting the Lahore market is that they have a
very mobile food culture. The Lahore culture is a ready market for any
new fast food franchises as the success of KFC proved, and was
followed by the opening of McDonalds’s Pizza Hut in the foreign market
and many other local successful fast food outlets.
Pakistan supports a very well versed and varied palate and a colored
culture that strongly supports the system. They have targeted the
market armed with spicy variations of chicken i.e., hot & crispy, and
hot wings that are not there in the international market, but are
specially designed for the pakistan palate. Its branch in lahore is one of
the best in asia. In lahore they targeted the most mobile culture first;
students of lahore. They focused all the areas well surrounded by
educational institutes, as where their first branch is the center of all
student activity. Not only is it near institutes like pu and ilm but also
near a lot of the business complexes, thus catering to companies as
well. So kfc targeted its market very well in pakistan and has been
spreading with quite a speed since then. It has continued its aim in
pioneering most of the affluent cities of the country.
place
Some important strengths of KFC’s marketing strategy include a number of changes they
have implemented in the past few years to increase customer access. KFC has answered
the fast-food consumer’s demand for availability in non-traditional locations by opening
restaurants in shopping malls, airports, stadiums, amusement parks, office buildings, and
mobile units (Krug, 1996).
As an additional outreach to their customers, KFC has initiated a home delivery service
in 14 states (KFC 1997). As of February 27, 1997, KFC has more than 9,800 outlets
located in 77 countries (KFC 1997).
IN MULTAN
The area selected for the building is the most affluent and trafficked area of Multan city,
Cantt. It was selected due to its visibility and easy accessibility. The Cantt area is
amongst the largest shopping area of the city and the affluent shoppers frequent this area.
Its centralized location has added to the success of the restaurant.
The restaurant building of Multan is the largest outlet in Pakistan. This outlet is catering
to the city as well as the surrounding area that includes Khanewal, Muzaffargarh and the
similar small localities.
Chicky Fun Area
Railway Services Club,
Bahawalpur Road
Opp. Multan High Court,
Multan.
Ph: 111-532-532

TARGETED CUSTOMERs
In Multan the most affluent class that frequent KFC is the business and landlord class. In
the general customers as before the people of KFC have targeted the families and the
students who are on the outlook for a quick bit. Another factor is that following in the
foot steps of the trend setters, Lahore and Karachi food trends are diverting more and
more towards fast food every day. So most of the young generation here was craving for
a quality fast food outlet. Now that KFC has pioneered the fast food culture development
Pizza Hut and McDonald’s will follow. Most of the people here are businessmen and
their affluent families are vigilant trend followers as they are the most influential people
so previously they spent their fortune in fast foods outside the city and now they can do it
in Multan KFC. Since the progress in the job sector the number of the working women is
steadily increasing in the city and so is the trend to frequent the fast foods.
Focusing on the family outing culture in Multan KFC has specially developed a kids
playing pen that allows the families to have a quality time in the restaurant. The
atmosphere here is exactly what families are looking for, so they have been more
successful in attracting their target market then their predecessors. Another weakness of
the Multanis that they have targeted is the tendency towards the chicken consumption.
Since the people here are less vege-oriented they have an edge to their product. They
have successfully attained their target market by only introducing HOT & CRISPY that
in keeping with the people’s tastes here that are inclined towards spicy foods.
They have also introduced a special combo 4 to cater the masses in the city.
 They population here is very price sensitive which has been dealt with
KFC by maintaining a regular price range all over Pakistan. They have
successfully targeted the opinion leaders, the business in the city that
set the trends followed by most of the people here.

PRODUCTS
In 1992, KFC expand their menu to include a greater variety of foods that are lower in fat
than fried chicken, such as Oriental Wings, Popcorn Chicken, and Honey BBQ Chicken.
They also introduced a dessert menu, which provided a selection of pies and cookies. By
the end of 1992, KFC held 49 percent of the $7.0 billion US chicken segment of the
market (Krug, 1996).
In 1993, KFC offered a new rotisserie Chicken menu item. They also offered a lunch a
dinner buffet in at least 27 states (Krug, 1996). In 1995, two new products were
introduced: Chunky Chicken Pot Pie and the Colonel’s Crispy Strips. In 1996, KFC
introduced their Tender Roast Chicken, with projected sales of $500 million during the
first 12 months (“Like”1997).
KFC uses traditional taste testing methods implemented by the Colonel approximately 40
years ago. To ensure only the highest quality and best tasting products for KFC, a team of
six franchisees and operators and two “chefs” comprise the KFC Chefs Council” who
develop, taste, rate and evaluate new product ideas (like 1997). The Chefs Council
members are from various parts of the country, representing regional taste preferences of
their customers. Once a new product has passed inspection by the Chefs Council, KFC’s
market research department conducts additional tests. Each week 100 people, who
represent customers, taste the newest products. If the products receive a good taste rating,
they are then tested in three or four cities. The Colonel’s quote still stands for KFC “If it
doesn’t taste good, don’t serve it to the customer. (Like, 1997).
Products that KFC offer are almost same throughout Pakistan, but slightly differ from
other countries but not too much.
The secret of KFC's world-wide success is due mainly to three key benefits - quality,
taste and convenience.
KFC now offers a diverse and interesting menu which includes:

 Arabian rice Cappuccino

 Cheese Espresso
 Col. Chicken burger Frothe
 Col. Fillet burger Hot shots
 Corn on the cob Machos
 Dinner rolls Milo
 Fries Mineral water
 Hot and crispy soup Moccacino
 Hot wings Soft Drink
 Macho’s burger Zinger burger
 Nuggets
A typical KFC meal consists of chicken, coleslaw and potato & gravy. All of the
ingredients are of the highest quality and freshness. To ensure this, the company sets
rigorous standards for product uniformity and quality, which must be met by all
suppliers.

Snapshots of KFC Products with Prices

BCG Matrix of KFC

INTRODUCING chocolate BROWNIES

Right now there is no dessert in KFC’s menu. Therefore we plan to
introduce Chocolate Brownies for chocolate lovers. We expect to catch
the interest of a regular loyal customer base with its vast selection of
brownies, including not-so-traditional flavors.
We will focus on…
• Providing the highest quality product.
• Competitive pricing.
• New ideas and flavors.
• Local markets, with a special focus on coffee shop and bakery
customers.

We will sell chocolate brownies coupled with exceptional customer

service in a warm atmosphere. Customers can dine-in and enjoy a
warm or cold beverage to complement their brownie. Toppings will also
be available when customers dine in for children, as well as the young
at heart. We will also offer carry-out so customers can enjoy the treats
at their own convenience.

Market Segmentation

Our market is divided into four different psychographics: Comfort

Creatures, Celebrators and Soccer Moms. They represent groups of
people sharing similar behavior patterns and reasons for frequenting
KFC to get the brownies delight.
Comfort Creatures are mainly the more successful of workers who are
driven by status and prestige yet miss homemade comfort foods of
their childhood. They may stop in on their own or bring clients in for a
brownie experience.
Celebrators fit into the vast category of people celebrating special
occasions. Birthday, anniversary, graduation, valentine's day, etc.,
families and loved ones will gather at KFC and will enjoy our chocolate
brownies for a fun, tasty, and festive atmosphere.
Soccer Moms is the title given to the moms who remain busy in usual
home work and find little time for fun. KFC is a gathering place where
families are welcome and feel comfortable. "Moms" can come in for
after school treats with their children and. Or they can meet up with
friends for a fun day out - a little civilized time stolen in the midst of a
busy day.

Target Market Segment Strategy

We have specifically targeted segments of people with an appreciation
for delicious desserts and a need for comfort and relaxation. KFC is a
haven for the busy & successful who want to treat themselves to
something soothing and a little sinful! It doesn't take a lot of time, yet
is so rewarding.
These people will value the high quality product presented. Our
customers will also appreciate the fun and fast service - whether
celebrating a birthday or stopping in for a break between shopping.

Competition and Buying Patterns

Although we are opening up a new product, there is no doubt that we

are competing with a variety of similar businesses. We need to
compete against the ideas that dessert is something that only follows a
special dinner and needn't be any better than a frozen cake. We want
every day to be a reason to celebrate. And being able to have a vast
array of options for your favorite chocolaty treat is an idea that appeals
to everyone.
The comfort factor plays an important role in consumer decisions
about sweets. Both the atmosphere and staff of KFC excels at warm &
friendly. At the same time, the menu will reflect familiar favorites such
as chocolate chunk or turtles, while there will be flavors for the more
adventurous as well, such as pistachio brownies. We will use the
highest quality product; sometimes paring the ordinary with the exotic,
but we will always present our brownies in a stylish and aesthically
pleasing, but still unintimidating manner.

Marketing Strategy
Our marketing strategy will be education of the consumer and
subsequent word of mouth. Customers will be reached through
neighborhood advertising, special promotions, and most importantly,
word of mouth.

Famous celebrity Jerry Seinfeld eating chocolate brownies

Location also plays a crucial role in marketing and promotion. KFC is
located in high-traffic retail area. This area offers many incentives to
business operating there because of the high-end reputation and
affluent residents nearby. Also, the area is popular amongst tourists
who come to see Multan’s cantonment area, cantonment garden and
lake which is not so far, which will be most beneficial.
We will target progressive and generally well-educated and affluent
consumers who are interested in high quality brownies experience and
are dissatisfied with the limited selection and lack of personal service
found in grocery store bakeries and neighborhood cafes and coffee
shops.

PRICING OF OUR BROWNIES

Manufacturing Cost Rs. 75

5% Marketing Cost Rs. 4
Total Cost Rs. 79
15% G.S.T +15% RETAIL MARGIN Rs. 20
Total retail Price Rs. 99

We are sure that our delicious chocolate brownies will attract the
ultimate chocolate lovers and fulfill their choco-delight. Our affordable
price makes it possible for children and youngsters to enjoy aesthically
pleasing brownies with high satisfaction and fun.
PROMOTION
In 1991, the Kentucky Fried Chicken logo was changed to KFC in an effort to decrease
emphasis on the “Fried” element of their chicken (Krug, 1996).
In 1993, KFC implemented new “Neighborhood Program” targeting company owned
restaurants in designated areas to offer ethnic menu items relative to the demographics of
those specific areas. Houston, Dallas, Los Angeles, St. Louis, New York, Chicago,
Philadephia, and Washington, D.C., offered side dishes to appeal exclusively to the black
communities in this promotional effort. They also promoted the “Neighborhood
Program” at these locations by wearing African inspired uniforms (Krug, 1996). In
Miami, KFC tested 13 Hispanic-oriented restaurants by offering side dishes consisting of
Mexican food items. These promotional efforts increased sales from 5-30 percent in the
testing areas (Krug, 1996).
In June 1996, KFC decided to bring back the “Bucket”. The bucket had been removed
from their outlets in efforts to reduce costs. The cost of bringing back the bucket is
approximately $2 million.
However, the projected sales are approximately 30 million buckets through June 1997. A
1988 study by Arizona State University revealed the following “the Colonel’s mug (or
face) and the KFC bucket were two of the three most-recognized symbols in the United
States” (“Birth” 1997).
In December 1996, KFC promoted their KFC Mix & Match bucket using the dog
“Moose” from the Frazier television show. This particular advertisement was aimed at
football fans during the bowl season, and continued to air through Super Bowl Sunday.
KFC’s latest promotional efforts are centered on their honey BBQ Tender Roast Chicken.
Celebrities included in their efforts were based on a survey of 1,815 randomly selected
people, age 18 and over (KFC 1997).

ADVERTISEMENT STRATEGY

Floating Trucks:
KFC Pakistan adopts a very interesting way of advertisement as for as their
business as concerned that is Floating Truck. When KFC Pakistan’s Restaurant Support
Center introduces a new product in Pakistan they adopt this way and there Floating
Trucks travel through out the city at where they have KFC stores. Generally it is a very
effective way of advertisement through which maximum of their customers are able to
know about their new products that they introduced.
In House Publicity:
KFC Pakistan has another way to advertise their business is in house publicity in
which they use banners, electronic boards, broachers, etc to tell their customers about
packages, prices, product’s detail, new products and all other information that customers
want.
By Phone:
KFC Pakistan stays in Touch with their potential customers by using their
database. They informed their potential customers about the new products and packages
by phone because they have their phone numbers in there database.
Print & Electronic Media:
Internationally KFC advertise their products through electronic media also they
use world’s famous T.V channels, news papers, magazines, etc.
Internet:
All most all the KFC’s well developed franchises have their own websites
through which they advertise their business very well, but they also use other websites for
advertising purposes like hotmail, yahoo, google, etc.
E-mail marketing techniques are used by KFC to promote their business. They
use their own database to send e-mails to their value added customers to informed them
about new products, packages, discounts, etc and uses third parties to promote their
business through e-mail marketing.
Media Coverage:
KFC Pakistan also uses common ways for advertising like news papers, cable TV
networks, a big road side boards, etc.
In focus:
In focus is a single page monthly news paper published by KFC Pakistan which has one
side in English and other in Urdu and available in KFC lobbies. It is for advertising and
information purposes.

Price:
“Prices of KFC products all over the world are almost same but slight difference in
currency exchange rates,” manager Sameer Gohar said. In Pakistan although average
people are not afford KFC prices, the potential customers of KFC gave a satisfied sale at
all KFC stores.

COMPETITORS
Worldwide KFC’s major competitors McDonalds, but there are no direct competitors of
KFC in Multan but there are some indirect competitors like Lasani Fried Chicken (LFC).

K&N’s VALUE CHICKEN PLANT

The main suppliers company is K&N’s. Their slogan is The Chicken
praised at KFC is raised at K&N’s.
When the chicken business for the KFC people became overloaded and they wanted to
maintain the quality of their chicken so the Artal group set up a plant producing quality
chicken called. K & N value chicken in Raiwand by the name of Artal International plant.
Since they have been producing good chicken catering to the demands of all the best
quality restaurants in Pakistan.

FOOD SAFETY
KFC French fries Composition
Potatoes, Tran’s fat free oil dextrose.
Seasonings
Original Recipe:
Salt, herbs and spices, garlic powder.

Milk and Egg:

Non fat milk, dried whey and dried egg whites.
Hot and Spicy:
COM starch, sodium bicarbonate, sodium, aluminum phosphate,
Dextrose, modified cornstarch, extractives of turmeric.
SHORTENING:
Pure vegetable oil (soybean).

CHICKEN AND ITS PRODUCTS

Locally produced and processed chicken, Supplied in frozen form.
100% Halal.
KFC NUTRITIONAL INFORMATION

Serving Total
Calories Cholesteerol CHO Protein
size fat
Origiona
l Recipe- 47(g) 145(g) 9(g) 60(mg) 5(g) 11(g)
Wing
Origiona
l Recipe- 161(g) 370(g 19(g) 145(mg) 11(g) 40(g)
Breast
Original
Recipe-
59(g) 140(g) 8(g) 75(mg) 4(g) 14(g)
Drumstic
k
Original 126(g) 360(g) 25(g) 165(g) 12(g) 22(g)
Recipe-
 Thigh
Hot &
Spicy- 53(g) 180(g) 11(g) 60(g) 9(g) 11(g)
Wing
Hot &
Spicy- 179(g) 450(g) 27(g) 130(mg) 20(g) 33(g)
Breast
Hot &
Spicy-
60(g) 140(g) 9(g) 65(mg) 4(g) 13(g)
Drumstic
k
Hot &
Spicy- 128(g) 390(g) 28(g) 125(mg) 14(g) 22(g)
Thigh
Original
Recipe- 206(g) 450(g) 27(g) 60(mg) 22(g) 29(g)
Fillet
Zinger
246(g) 640(g) 40(g) 405(mg) 38(g) 32(g)
Burger
Hot
144(g) 460(g) 30(g) 125(mg) 22(g) 25(g)
Wings
Corn on
the Cob 82(g) 90(g) 0.5(g) 0(mg) 19(g) 2(g)
3"
French
100(g) 136(g) 3.7(g) 1(mg) 23.3(g) 2.3(g)
Fries

DELIVERY METHODS

Self Service

KFC stores offer self service to sell their products means customers go at counter
and purchase products pay for it, no involvement of waiters and if customers want to eat
at KFC store they sit at lobbies one for common people other for only families otherwise.
Home delivery
 It is a way of buying KFC products without going at KFC stores. All KFC stores
in Pakistan offer Free Home Delivery service within just 30 minutes. Orders are received
at KFC stores only through telephone. They want only address at which their team
members supply that order and he received a payment for that product.
Take away

Take away process means customer buy KFC products from counter pay for it
and go away, it means he didn’t want to sit in KFC lobby to eat. It is possible that
customers who use Take Away method of buying KFC products are enjoying KFC
products at other places like home or picnic spots.
At store

Most of the KFC buyers want to eat KFC products in lobbies of KFC stores
because a very entertaining atmosphere is provided by the KFC management in lobbies
especially for children.
Drive Thru

Drive Thru is the method of buying products used at almost all KFC stores in
Pakistan. In it when customer is in vehicle like cars, jeep, bike, etc go at KFC store and
purchase without coming out of his vehicle, he drive up to drive thru counter pay for
product and at next counter collect his product and go away. It is the facility in which
customer is able to buy product without spending too much time at store.

Catering

Catering is a process in which KFC team cook and serve their products at a place
where u want like at house, office, etc. for example some people wants to give to eat to
their guest a KFC products at his marriage or birthday function he can do this very well
by using a special facility offered by all KFC stores in Pakistan.

PAYMENT METHODS

Cash
 It is the most popular and widely used method of payment when we are going to
sell or buy something, Irrespective of its some drawbacks such as security risks, its bulky
volume, and time consuming counting process.
At all KFC stores in Pakistan Cash is the main and normally used method of
payment when customers buying products at KFC stores.
Credit Cards

Almost all the stores of KFC Pakistan accept almost all types of credit cards such
as Master, Visa, etc. as for as KFC Multan as concerned they start accepting Credit Cards
within 2 or 3 weeks, “Restaurant Manager” said.

Debit cards

All the stores of KFC Pakistan accept debit cards and they made quick transaction
by their access machine which is directly linked with respective banks such as Muslim
Commercial Bank, United Bank Limited, Habib Bank Limited, Meezan Bank, ABN
AMRO Bank, etc.

Customer Interaction

All the KFC stores have very good customer interaction with their customers because
they know the worldwide accepted rule of B2C type of business that is
“Customer is the King”
So that’s why they regularly get a feedback from the customer and
remain be in touch with their potential customers also.
All KFC stores are very efficient in sense of getting feedback from the
customers they use Comment Cards to get feedback about their
product and services and also an information about the customers that
they use later to be in touch with their potential customers. By using
Comment Cards all the KFC stores collect information about the
customers and maintain a database using all the information. They
compile that Comment Cards very carefully and collect the information
about the good and bad sides of their stores, point out them and send
that information to Head Office Karachi and higher management take
decisions on the behalf of that information collected by using Comment
Cards for the betterment of KFC Pakistan.
 PEST ANALYSIS
Political Factors

• Due to political stability in Pakistan, these days all businesses are

flourishing and same is the case with KFC.
• As there are huger chances of investment these days, so KFC is
following GROWTH STRATEGY all over the country and targeting
50 outlets in Pakistan, also searching place for another KFC
outlet in Multan.
• But some areas like Peshawar has political unrest due to MMA
and their policies are affecting KFC being an American
organization.

Economical Factors

• Socio-economic trends are mostly encouraging with increases in

disposable income, more working women, increase in hoteling
and increases in tourism all positive signs for the catering
market.
• There are also catering sectors, such as restaurants and
takeaway food, which are now a part of the regular eating habits
of a majority of adults.
• The increasing purchasing power of people is affecting KFC sales
positively.
• Taxes are regularly paid
• In summer KFC has more sales than in other season because KFC
provides a good chilled environment and Zenzibar like
restaurants charge for air conditioners.
 Social Factors

• In Pakistan KFC is playing a very active role for education sector.

It has invested much for inauguration of schools in different
areas of Pakistan e.g in Karachi it as made a school for disabled
children.
• Also throughout Pakistan it is funding for libraries.
• Donating much to NGO’s for less fortunate people.
• At the start of KFC in Multan a mega function with meal was
given to SOS kids.
• Chicky Fund Raising i.e getting second handed books etc. from
different schools and distributing them among less fortunate
students is also done through different campaigns.
• For the most recent incident of Tsunami KFC arranged concerts
in Karachi in which singers like Ali Zafar, Hadiqa, Haroon etc.
were invited and all the amount collected from such type of
concerts was donated to Tsunami victims.
• Major events are special focus of KFC e.g Mother’s day, Father’s
day,Valentines’s day, Eid days etc. and they offer different
packages too.
• Self Service:

Cupola Cares Foundation

Cupola Cares Foundation is a non-profit, registered organization and a charitable wing of

Cupola. We aim to help the underprivileged children by giving them quality education
thereby making an attempt to raise the literacy rate of Pakistan which is externally low by
world standards characterized by low enrolment in primary and secondary school, high
drop out rates and an over all poor quality of education. Cupola realizes the need for
education and intends to build this need at the grass root level. Our vision is supported by
prominent personality of the country who are also amongst the board of directors of the
foundation:
• Prof. Danishmand, Dean & Director IBA
• Mr. Saifuddin Zoomkawala, Chairman EFU
• Mr. Tariq Kirmani, Chairman PIA
• Syed Salahuddin Hyder, C.E.O. Century 21
• Mr. Waqar H Siddique, Executive Director Abraaj capital
• Mr. Rafiq Rangoonwala, C.E.O. Cupola Pakistan
These are individuals belonging to different corporate sectors and are
already engaged in various forms of community support services and
welfare activities.

Technological Factors

• KFC is going to adopt the delivery system of Pizza Hut.

• Buying new equipments.
• The latest tech acquired is always get approved by government.
• KFC new UAN no. is 111-532-532
• Each and every equipment is licensed.
• KFC Tri-state Management uses Linux.
• KFC Pakistan plan to become online, because the usage of
internet and credit cards increases. So people using internet can
buy KFC products online, because it is a very cheap and effective
way of buy products Department of information technology of
KFC Pakistan is working on it and in future hopefully KFC stores
become online.

Internal Communication
Internally all the KFC Pakistan stores communicate regularly for the betterment
of organization. KFC Pakistan has a Paper Less environment in the organization. They
use Telephone and E-mail facilities to remain in contact with their Head Office Karachi
to plan strategies, share ideas and get instruction to maintain and improve the business
because these two ways of communication are very fast an very cheap as for as e-mail as
concerned, they have no traditional way to communicate like time consuming traditional
mail system.
PoS system:
 POS (point of sale) is the physical location at which goods are sold to customers.
A point-of-sale (POS) software terminal is a computer replacement for a cash register.
More sophisticated than traditional cash registers, a POS (point of sale) software system
includes the ability to track customer orders, process credit cards, and manage inventory.
At all KFC stores in Pakistan PAR Technology Corporation’s Point of Sale
system is used including both software and hardware.
PAR provide the tools that KFC Pakistan need to increase order accuracy, improve
speed-of-service and raise customer satisfaction levels with software solutions that can
span the entire enterprise - from the front counter to the back office and beyond to
integrate the total organization.
PAR uses reliable Dell® hardware to run its Back Office Computer to unleash the
power of business.
Transaction Record

KFC Pakistan uses a complete package of Point of Sale system to keep

record of every transaction occur. All KFC Pakistan stores nationwide
use PoS and at the closing time of the store they send a complete
transactional record of that day by using PoS through internet.
Because of this head office maintain their accounts very well and take
quick decision on the behalf of these records.
 SWOT ANALYSIS

STRENGHTS
• Quality of products.
• Leader in almost every market.
• Finger licking taste as the other international fast food restaurants in
Pakistan doesn’t have that kind of speciality in Fried Chickens.

WEAKNESSES

• There is some weakness in the field of KFC menu as it serves only

chicken related products but its competitors like pizza hut and Mc
Donald’s offer vegetable and cow meat based food also.
• Due to huge expansion by growth strategy there is much pressure on
management department in terms of HRM etc.

OPPORTUNITIES

• KFC plays an important role in increasing employment rate of a

country as it hires persons from local place to fill its staff. So this gains
public attention and generates good will of the organization.
• Financially KFC is going very stable and sound organization so still it
has much opportunity of opening new outlets in different areas of
Pakistan and the rest of the world by reinvesting its profits.

THREATS
• Prosperity of KFC with in a given region depends upon its economic
condition of the country so if some thing bad happens to it, it can be
troublesome for KFC.
• KFC recipe is still a secret, and if some one gets this secret then this
can play havoc with this organization.
• American invasion into tribal areas of Pakistan is also a threat for KFC,
due to arousal of anti-American sentiments it can lead towards
rejection of KFC.
 CONCLUSION
On the whole KFC is the name of trust for the customers because there is no compromise
on the quality of the food. KFC fully concentrate on the quality of food that’s why it is
the hall mark of excellence among the customers. The supplier of KFC is K&N’s Foods
(Pvt) Ltd. They have good and fully furnished places for Chicks to grow and finally to
provide there valued customers.

By following such practices, KFC is providing a just and equitable environment for work
and through its diversity programs, giving back to the community at various levels.
Doing business internationally means taking stock of the local population and molding
your menus and work practices to suit local tastes, laws and regulations.

The best maxim here is:

Think Globally, Act Locally.

RECOMMENDATIONS
• The HR department of KFC is definitely doing its job well as according
to Kufahl & Agoglia (2003), the company has the lowest turnover rate
in the fast food industry. However, when a company reaches the
pinnacle of success with regards to any aspect, it has to try even
harder to stay there and maintain its position. Hence, KFC should try to
keep up the good work and maintain the level of commendable
workforce development practices.
• KFC is American firm so it can face sensitivity in this case. Because of
rude American attitude towards Muslims countries, people “can” reject
them.
• They should start some activities that help them in turning their anti-
Islamic image in the minds of their target customers.
• The website of KFC is not well developed so sophisticated information
and well designed data is not available on the net, as mentioned above
the I.T. department of KFC Pakistan has a close look on this area so it is
good sign for the internet users to buy online and get information they
need.
• Music selection is good but usually they keep music volume so high
that it starts interrupting entertainment. They also do not change
music on customer choice.
• Counter service system is acceptable in USA but not in Europe and
Asia. In Multan, KFC stand as trend setter (due to no competition) so
this factor does not do any harm to their profit but it is disliked by 5%
people.
• Their pricing strategy is out of vision. They charge Rs.105, Rs.135 etc
figures. It is a blunder from the side of marketer that if customer is
willing to pay or can pay more and marketer is charging them less. So
they are blowing high % of revenue in air just because of fake pricing
strategy.
• As KFC stands in STAR position in portfolio matrix so they should adopt
stability strategy at least for some period of time but still they are
adopting further growth strategy and increasing their level of
operations so the same case can happen with KFC which happened to
MC Donald’s.
 REFERENCES
 Shirley Lievers - Customer Relationship Executive, KFC, Multan

Web Links:
 www.kfc.com
 www.kfcpakistan.com
 www.yum.com
 www.marketingmaniacs.com
 www.google.com
 www.yahoo.com
 www.pepsiworld.com
 www.enquirer.com/editions/2002/08/21/tem_kfc_great_american.html
 findarticles.com/p/articles/mi_m3190/is_n8_v25/ai_10403447
 www.buzzle.com/editorials/4-30-2005-69337.asp
 vmsd.com/content/kentucky-fried-chicken-0
 www.roadsideamerica.com/story/7021
 www.kfc.co.uk/our-menu/toasted-twister/toasted-salsa-twister/
 www.webmd.com/diet/news/20061030/kfc-to-fry-chicken-without-trans-
fats

web.archive.org/web/20061224114447/http://www.kfc.com/about/pres
sreleases/111406.asp
 www.foxnews.com/story/0,2933,229308,00.html
 www.kfc.co.uk/about-kfc

news.bbc.co.uk/mobile/bbc_news/england/nwyl/north/north_yorkshire/6
64/66418/story6641819.shtml?l
 www.cnn.com/2003/BUSINESS/10/17/anderson.kfc/index.html
 www.kentuckyfriedcruelty.com/u-undercover.asp
 www.guardian.co.uk/news/2005/oct/28/food.lifeandhealth