A

Project report
On

“MARKETING STRATERGIES WITH REFERENCE TO

KENTUCKY FRIED CHICKEN”

SUBMITTED BY
ANAND DILIP NAHAR

THIRD YEAR BBA

SUBMITTED TO UNIVERSITY OF PUNE

IN PARTIAL FULFILLMENT OF THIRD YEAR
BACHELOR OF BUSINESS ADMINISTRATION

INDIRA COLLEGE OF COMMERCE

PUNE
(2007- 2010)
 CERTIFICATE

This is to certify that Mr. Anand Dilip Nahar is a bonafide student of this institute
and has prepared and submitted this project in partial fulfillment of B.B.A course
as prescribed by the university of pune .

The topic of project is “MARKETING STRATERGIES WITH REFERENCE

TO KENTUCKY FRIED CHICKEN”

He has successfully completed the project as per the required of university

Prof Prashant Kalshetti, Prof. Abhijeet chavan,

(HOD-BBA Department) (Project Guide)

 ACKNOWLEDGEMENT

With profound sense of gratitude and regard, I express my sincere thanks to my

guide and mentor Mr abhijeet chavan, for his valuable guidance and the
confidence he instilled in me, that helped me in the successful completion of this
project report. Without his help, this project would have been a distant affair.
His thorough understanding of the subject and professional guidance was indeed
of immense help to me.

Also, this acknowledgement would remain incomplete without thanking the staff
of KFC (camp), pune for their whole-hearted and kind co-operation.
I am also greatly thankful to the faculty members of our institute who co-
operated with me and gave me their valuable time. Acknowledgement
 Swot analysis
9. Conclusion.
10. Recommendations
11. Questionnaires
12.Sr.Bibliography TOPICS Page
No. NO.
1. Executive summary
2. Industry profile
3. Company profile
Introduction of a company
Goals of Kfc
History of Kfc
Company overview
Kfc in India
The champs program
4. Product profile
Kfc original recipe
5. Promotions
Current target market
Market coverage strategy
6. Marketing strategies
7. Research methodology
Objectives
Method of research
Data collection techniques
Sampling techniques
Analysis techniques
8. Data Analysis
Competitive analysis
Economic analysis of market
INDEX
 EXECUTIVE SUMMARY
The project titled “MARKETING STRATERGIES WITH REFERENCE TO
KENTUCKY FRIED CHICKEN” is done in Pune region. The primary data are
collected from the customers of the kfc . After meeting them and getting the
information about project. Secondary data collected from internet, library, and
some data was collected by interweaving kfc personnel.
 Objectives:

-Main objective: to understand the marketing strategies of the kfc.

-Primary objective: to study the environment and the working of kfc and its
staff.

 Conclusion:

- WE understood the working of kfc and its environment.

- I got to know studied the , working of staff members and the steps which
are taken by kfc for promotion of their new launch products.
-We also studied the role of directors, managers and staff members to make
its product hit in the market.
 INDUSTRY PROFILE
Fast food industry:
A typical fast food meal in the United States consists of fries and a burger (or other
main item). Pictured here are burgers from In-N-Out Burger.
Fast food (also known as Quick Service Restaurant or QSR within the industry
itself) is the term given to food that can be prepared and served very quickly.
While any meal with low preparation time can be considered to be fast food,
typically the term refers to food sold in a restaurant or store with preheated or
precooked ingredients, and served to the customer in a packaged form for take-
out/take-away. The term "fast food" was recognized in a dictionary by Merriam–
Webster in 1951.
Precooked foods such as French fries or pizza typically must be used within a few
hours, or they become dried out and unpalatable. The restaurant must balance
availability with the expected numbers of customers, to avoid discarding unused
expired product. Similarly, the food itself is often intended to be consumed
quickly, using strong contrasts such dry corn chips with greasy or wet toppings that
will combine into a gooey mess if stored for later consumption.
Outlets may be stands or kiosks, which may provide no shelter or seating or fast
food restaurants (also known as quick service restaurants). Franchise operations
which are part of restaurant chains have standardized foodstuffs shipped to each
restaurant from central locations.
The capital requirements involved in opening up a fast food restaurant are
relatively low. Restaurants with much higher sit-in ratios, where customers tend to
sit and have their orders brought to them in a seemingly more upscale atmosphere
may be known in some areas as fast casual restaurants.

History
Pulling wheat dough into thin strands to form lamina
See also: fast food restaurant History
The concept of ready-cooked food for sale is closely connected with urban
development. In Ancient Rome cities had street stands that sold bread and wine. A
fixture of East Asian cities is the noodle shop. Flatbread and falafel are today
ubiquitous in the Middle East. Popular Indian fast food dishes include vada pav,
panipuri and dahi vada. In the French-speaking nations of West Africa, roadside
stands in and around the larger cities continue to sell—as they have done for
generations—a range of ready-to-eat, char-grilled meat sticks known locally as
brochettes (not to be confused with the bread snack of the same name found in
Europe).

Franchising was introduced in 1921 by A&W Root Beer, which franchised its
distinctive syrup. Howard Johnson's first franchised the restaurant concept in the
mid-1930s, formally standardizing menus, signage and advertising.

Curb service was introduced in the late 1920s and was mobilized in the 1940s
when carhops strapped on roller skates.

Today the United States has the largest fast food industry in the world; American
fast food restaurants are located in over 100 countries.

See also: Convenience food

McDonald's first two-lane drive-through was at the Rock N Roll McDonald's in
Chicago.
Fast food outlets are take-away or take-out providers, often with a "drive-through"
service which allows customers to order and pick up food from their cars; but most
also have a seating area in which customers can eat the food on the premises.

Nearly from its inception, fast food has been designed to be eaten "on the go",
often does not require traditional cutlery, and is eaten as a finger food. Common
menu items at fast food outlets include fish and chips, sandwiches, pitas,
hamburgers, fried chicken, French fries, chicken nuggets, tacos, pizza, hot dogs,
and ice cream, although many fast food restaurants offer "slower" foods like chili,
mashed potatoes, and salads.

Cuisine
Deep fried calamari
Modern commercial fast food is often highly processed and prepared in an
industrial fashion, i.e., on a large scale with standard ingredients and standardized
cooking and production methods. It is usually rapidly served in cartons or bags or
in a plastic wrapping, in a fashion which minimizes cost. In most fast food
operations, menu items are generally made from processed ingredients prepared at
a central supply facility and then shipped to individual outlets where they are
reheated, cooked (usually by microwave or deep frying) or assembled in a short
amount of time. This process ensures a consistent level of product quality, and is
key to being able to deliver the order quickly to the customer and eliminate labor
and equipment costs in the individual stores.

Because of commercial emphasis on speed, uniformity and low cost, fast food
products are often made with ingredients formulated to achieve a certain flavor or
consistency and to preserve freshness.

Variants

Although fast food often brings to mind traditional American fast food such as
hamburgers and fries, there are many other forms of fast food that enjoy
widespread popularity in the West.
Chinese takeaways/takeout restaurants are particularly popular. They normally
offer a wide variety of Asian food (not always Chinese), which has normally
been fried. Most options are some form of noodles, rice, or meat. In some
cases, the food is presented as a smörgåsbord, sometimes self service. The
customer chooses the size of the container they wish to buy, and then is free
to fill it with their choice of food. It is common to combine several options
in one container, and some outlets charge by weight rather than by item.
Many of these restaurants offer free delivery for purchases over a minimum
amount.

Many types of sushi ready to eat

Sushi has seen rapidly rising popularity in recent times. A form of fast food created
in Japan (where bentō is the Japanese equivalent of fast food), sushi is normally
cold sticky rice served with raw fish. The most popular kind in the West is rolls of
rice in nori (dried laver), with filling. The filling often includes fish, chicken or
cucumber.

Pizza is a common fast food category in the United States, with chains such as
Papa John's, Domino's Pizza, Sbarro and Pizza Hut. Menus are more limited and
standardized than in traditional pizzerias, and pizza delivery, often with a time
commitment, is offered.
Kebab houses are a form of fast food restaurant from the Middle East, especially
Turkey and Lebanon. Meat is shaven from a rotisserie, and is served on a warmed
flatbread with salad and a choice of sauce and dressing. These doner kebabs are
distinct from shish kebabs served on sticks. Kebab shops are also found throughout
the world, especially Europe, New Zealand and Australia but they generally are
less common in the US.

Lamb shish kebab

Fish and chip shops are a form of fast food popular in the United Kingdom,
Australia and New Zealand. Fish is battered and then deep fried.

Business

In the United States alone, consumers spent about US$110 billion on fast food in
2000 (which increased from US$6 billion in 1970).[13] The National Restaurant
Association forecasted that fast food restaurants in the U.S. would reach
US$142 billion in sales in 2006, a 5% increase over 2005. In comparison, the full-
service restaurant segment of the food industry is expected to generate

Globalization
In 2006, the global fast food market grew by 4.8% and reached a value of 102.4
billion and a volume of 80.3 billion transactions. In India alone the fast food
industry is growing by 40% a year.[

McDonald’s is located in 120 countries and operates 30,000 restaurants around the
world.[ On January 31, 1990 McDonald’s opened a restaurant in Moscow, and
broke opening day records for customers served. The Moscow restaurant is the
busiest in the world. The largest McDonald’s in the world is located in Beijing,
People's Republic of China.

There are numerous other fast food restaurants located all over the world. Burger
King has more than 11,100 restaurants in more than 65 countries.[18] KFC is located
in 25 countries, 800 of them located in China.[19] Subway has 29,186 restaurants
located in 86 countries, the first international location opened in December of 1984
in Bahrain.[20] Pizza Hut is located in 26 countries, with 100 locations in China.[21]
Taco Bell has 278 restaurants located in 12 countries besides the United States.[22]
 KFC: Company
Profile

The fast-food chain known today as "KFC" began

back in the ‘30s when Harland Sanders, (born
September 9, 1890) began serving chicken to the patrons of his service station in
Corbin, KY. He didn’t have a restaurant then, but served people on his own dining
table in the living quarters of his service station. Eventually the operation grew and
moved across the street to a motel and restaurant. In 1935, in recognition of his
contributions to the state’s cuisine Governor Ruby Laffoon made him a Kentucky
Colonel.

In 1952 Pete Harman became the first Kentucky Fried Chicken franchisee, with a
store in Salt Lake City. In 1956, at the ripe young age of 65, the Colonel sold the
Corbin, KY, location and went on the road to enlist new franchises. In 1964 he
sold the chain to a group of investors including John Y. Brown Jr. and Jack Massey
for $2 million. The Colonel continued on as spokesman for the company, which
went public in ‘69, and then was sold to Heublein Inc. in ‘71 until his death 1980.

PepsiCo, Inc. acquired the chain in ‘86, eventually changing its name and logo to
KFC in ‘91. Today, KFC has well over 9,000 locations worldwide, including
China, Russia, and Australia.

It has only been over the past few years that the company has had a kid meal
program that offered premiums. Virtually all of these have had been licensed
products, looking to Sony (Beakman’s World, Ghostbusters); Marvel Comics
(Spider-Man, Hulk, Fantastic Four, Wolverine); Disney (Timon & Pumbaa); Saban
(Masked Rider); and others (Scholastic/ Animorphs; United Media-BBC
Worldwide/Wallace & Gromit).

Unlike many of the other fast food operations, KFC tends to keep their promotions
running for longer periods of time, having only four to six promotions throughout
the course of the year. The advantage to this approach to meal premiums is twofold
with pluses for both KFC and collectors. On KFC’s side, the company incurs less
traffic, marketing, and operational expenses that are associated with acquiring and
scheduling promotions. While for collectors, the advantage is that there is more
time to acquire preferred toys.

A New Era: A New Name

In 1991, Kentucky Fried Chicken announced that

it was changing its name to "KFC" and updating
its packaging and logo as well to reflect a more
modern look. According to the public relations
info given out at the time the name change was to
lure back customers to a restaurant now offering
foods branded as "better for you".

Needless to say, there was more to the name change than just a PR face-lift.
According to outer sources, the real reason for the name change actually dated
back to 1990 when the Commonwealth of Kentucky - which was apparently mired
in debt - actually trademarked the name of their state. Needless to say, the state
then required any company using the word "Kentucky" for business reasons to
obtain permission from the Commonwealth, and to pay licensing fees for the use of
the name. While this might have been conceived as a bold and unique scheme to
alleviate the state’s debt, it proved spectacularly unsuccessful.

Kentucky Fried Chicken refused to pay royalties

on a name it had been using since 1953, as a
matter of principal. After a year of futile
negotiations with Kentucky the company simply
altered its name to KFC and timed the
announcement to coincide with the introduction of its new packaging and products.
Kentucky Fried Chicken was not the only company to refuse to cow-tow to the
State. The Kentucky Derby officially changed its name to The Run for the Roses,
while many seed and nursery companies which had previously offered Kentucky
Bluegrass now sell "Shenendoah Bluegrass.

The Dawn of Darth Maul

One of the highlights of the 1999 fast food toy season was KFC’s set of Star Wars:
Episode I—The Phantom Menace toys that were issued in conjunction with sister
companies Pizza Hut and Taco Bell. The three franchises not only joined forces to
issue a comprehensive set of Star Wars Episode I toys, they actually linked their
three Web sites (via a Star Wars hot button), so that Web surfers could easily
access the company’s sister sites. Still, not wanting to do the job half-way, each of
the three Tricon Web sites was also linked directly to Lucas’ own Star Wars site
(www.starwars.com), so that the extreme among them could also access the very
latest official Star Wars info direct from the grand poo-pah himself. All and all a
very cool concept (no matter what might be said of the movie itself).

Unfortunately for toy collectors, about four or five years ago KFC stopped issuing
toys with their kids’ meals, and instead of a collectible item, they began packaging
their kid meals in a colorful "laptop" container with games and trivia on the box.
Introduction of

Company

KFC Corporation, based in Louisville, Kentucky, is the world’s most popular

chicken restaurant chain, specializing in Original Recipe ®, Extra Crispy TM, and
Colonel’s Crispy Strips® chicken with home style sides and five new freshly made
sandwiches. Every day, nearly eight million customers are served around the
world. KFC’s menu everywhere includes Original Recipe® chicken—made with
the same great taste Colonel Harland Sanders created more than a half-century ago.
Customers around the globe also enjoy more than 300 other products—from a
Chunky Chicken Pot Pie in the United States to a salmon sandwich in Japan.

KFC continues reaching out to customers with home delivery in more than 300
restaurants in the United States and several other countries. And in quite a few U.S.
cities, KFC is teaming up with other restaurants, Taco Bell and Pizza Hut, selling
nearly fifty years ago; Colonel Sanders invented what is now called “home meal
replacement” – selling complete meals to harried, time-strapped families. He called
it, “Sunday Dinner, Seven Days a Week.”

Today, the Colonel’s spirit and heritage are reflected in KFC’s brand identity – the
logo features Colonel Harland Sanders, one of the best-recognized icons in the
world.

KFC specialized in chicken and they says, KFC

“No body’s cooking like KFC today and we are the chicken experts”
“There is no competitor for spicy chicken which is made by KFC”

M issio n sta te m e n t

“ T o b e t h e l e a d e r i n w e s t e r n s t y l e qsue ircvki c e r e s t a u r a n t s t h r o u g h f r i e n d l y
s e r v i c e , g o o d q u a l i t y f o o d a n d c l e a n a t ”m o s p h e r e

Goals of KFC
 KFC
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 grow,

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

Generate consistently superior financial returns and benefits our owner and
employees.

To establish in India our position as leading WQSR (Western Quick Service

Restaurant) chain, serving good value. Innovative chicken-based products.
Consistently, providing a pleasant dining experience, with fast friendly, in a clean
and convenient location. At all times we must be dedicated to providing excellent
and delighting customers.
KFC History

KFC is an internationally renowned fast food industry in the

world. They have the main ambition to increase &
maintain the quality in fast food industry. Their aim
is to capture the fast food market. Basically they want to provide their
products to anyone that is why they expanding their branches in all over
the world. They want to increase their profit

Through giving maximum satisfaction & other better facilities to people that
they want. Now after catching such a marvelous position in the
International Market, KFC is introducing a new item “Boneless Fried
Chicken”, with even more attractive and charming taste.

History

The restaurant in North Corbin, Kentucky where Colonel Sanders developed

Kentucky Fried Chicken
The first KFC restaurant, situated in South Salt Lake, Utah and since replaced by a
new KFC on the same site

Born and raised in Henryville, Indiana, Sanders passed through several professions
in his lifetime.] Sanders first served his fried chicken in 1930 in the midst of the
Great Depression at a gas station he owned in North Corbin, Kentucky. The dining
area was named "Sanders Court & Café" and was so successful that in 1936
Kentucky Governor Ruby Laffoon granted Sanders the title of honorary Kentucky
Colonel in recognition of his contribution to the state's cuisine. The following year
Sanders expanded his restaurant to 142 seats, and added a motel he bought across
the street. When Sanders prepared his chicken in his original restaurant in North
Corbin, he prepared the chicken in an iron skillet, which took about 30 minutes to
do, too long for a restaurant operation. In 1939, Sanders altered the cooking
process for his fried chicken to use a pressure fryer, resulting in a greatly reduced
cooking time comparable to that of deep frying.] In 1940 Sanders devised what
came to be known as his Original Recipe.

The Sanders Court & Café generally served travelers, often those headed to
Florida, so when the route planned in the 1950s for what would become Interstate
75 bypassed Corbin, he sold his properties and traveled the U.S. to sell his chicken
to restaurant owners. The first to take him up on the offer was Pete Harman in
South Salt Lake, Utah; together, they opened the first "Kentucky Fried Chicken"
outlet in 1952. By the early 1960s Kentucky Fried Chicken was sold in over 600
franchised outlets in both the United States and Canada. One of the longest-lived
franchisees of the older Col. Sanders' chicken concept, as opposed to the KFC
chain, was the Kenny Kings chain. The company owned many Northern Ohio
diner-style restaurants, the last of which closed in 2004.

Sanders sold the entire KFC franchising operation in 1964 for $2 million USD
Since that time, the chain has been sold three more times: to Heublein in 1971, to
R.J. Reynolds in 1982 and most recently to PepsiCo in 1986, which made it part of
its Tricon Global Restaurants division, which in turn was spun off in 1997, and has
now been renamed to Yum! Brands. Additionally, Colonel Sanders' nephew, Lee
Cummings, took his own Kentucky Fried Chicken franchises (and a chicken recipe
of his own) and converted them to his own "spin-off" restaurant chain, Lee's
Famous Recipe Chicken.

Today, some of the older KFC restaurants have become famous in their own right.
One such restaurant is located in Marietta, Georgia. This store is notable for a 56-
foot (17 m) tall sign that looks like a chicken. The sign, known locally as the Big
Chicken, was built for an earlier fast-food restaurant on the site called Johnny
Reb's Chick, Chuck and Shake. It is often used as a travel reference point in the
Atlanta area by locals and pilots.
Company overview

Colonel Harland sanders, born September 9, 1890, actively began franchising his
chicken business at the age of 65. Now, the Kentucky fried chicken 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 America. The colonel’s
cooking is available in more then 82 countries around the world.

When the colonel was six, his father died. His mother was forced to go to work,
and young Harland had to take care of his three year old brother and baby sister.
This meant doing much of the family cooking. By the age of seven, he was a
master of a score of regional dishes. Ate age 10, his first job working on a nearby
farm for $2 a month . When he was 12, his mother remarried and he left his home
near Henryville, Ind., for a job on a farm in Greenwood, Ind. He held a series of
jobs over the next few years, first as a 15-year-old streetcar conductor in New
Albany, Ind., and then as a 16-year-old private, soldiering for six months in Cuba.
After that he was a railroad fireman, studied law by correspondence, practiced in
justice of the peace court, sold insurance, operated an Ohio River steamboat ferry,
sold tires, and Operated service station. When he was 40, the colonel began
cooking for hungry travelers who stopped at his service station in Corbin, KY. He
didn’t have a restaurant then, but served folks on his own dining table in the living
quarters of his service station. As more people started coming just for food, he
moved across the street to a motel and restaurant that seated 142 people. Over the
next nine year, he perfected his secret blend of 11 herbs and spices and the basic
cooking technique that is still used today.

KFC India

1.KFC is the world’s No.1 Chicken QSR and has industry leading stature across
many countries like UK, Australia, South Africa, China ,USA , Malaysia and many
more.

2.KFC is the largest brand of Yum Restaurants, a company that owns other leading
brands like Pizza Hut, Taco Bell, A&W and Long John Silver.

3.Renowned worldwide for it’s finger licking good food, KFC offers its signature
products in India too! KFC has introduced many offerings for its growing customer
base in India while staying rooted in the taste legacy of Colonel Harland Sander’s
secret recipe.

4. Its signature dishes include the “crispy outside, juicy inside” Hot and Crispy
Chicken, flavorful and juicy Original Recipe chicken, the spicy, juicy & crunchy
Zinger Burger, Toasted Twister, Chicken Bucket and a host of beverages and
desserts.

5. For the vegetarians in India, KFC also has great tasting vegetarian offerings that
include the Veggie Burger, Veggie Snacker and Veg Rice meals. In India, KFC is
growing rapidly and today has presence in 11 cities with close to 50 restaurants.

KFC Outlets in pune

This American concept that arrived with a bang in town actually had serpentine
queues outside its outlet in Kalyani Nagar. Now they also have another outlet in
Nucleus Mall. The ambience in both KFC outlets is lively and upbeat with some
great music playing all the time. Their signature product, the Hot and Crispy
Chicken was a rage in town and is still extremely popular with amche Punekars.
Their Chicken and Paneer Tikka Wraps are hot favourites and the Indianised veg
and non-veg thali are not bad. Ditto for the Zinger Burger, Veggie Feast and
Chicken Crunch Snacker. A good place to celebrate your kid’s birthday and be
indulged with food, party hats, invitations cards, streamers, balloons and games.
Their recent addition of a bucket stuffed with 12 pieces of chicken priced at Rs.
345/- has been quite a hit.

KFC in pune camp:

CTS No.1, Nucleus Mall, Pune Camp, Pune 411001

Tel: 26052373

KFC in Kalyani nagar:

Mariplex Mall, Kalyani Nagar, Pune 411006

, Tel: 32943121

Values of KFC

Focus all our resources to our restaurants operation 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 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 efforts.

Dedicate ourselves to continuous growth in sales, profit and size of organization.

Work as a team.
PHILOSOPHY OF KFC

THE CHAMPS PROGRAM

Champs stands for our belief that the most important thing each of us can do is to
focus on the customer. It stands for our commitment to provide the best food and
best experience for the best value.

CHAMPS stand for the six universal areas of customer expectation common to all
cultures and all restaurants concepts.
THE CHAMPS

These are:

Cleanliness

Hospitality

Accuracy

Maintenance of Facilities

Product Quality

Speed of Service
CHAMPS is the philosophy to ensure that the customer has the consistent quality
experience in every restaurant, everyday, on every occasions and you will be
playing role in delivering CHAMPS to our customers.

PORTERS FIVE-FORCES ANALYSIS

Entry

For the current Indian market for fast food, it is not difficult for a fast food
restaurant to enter the market. However, it would be extremely difficult to take
over already running major fast food chains' dominancy in India or even make a
significant amount of profit. While there are enough people in urban India for any
restaurant to survive, KFC holds the first-mover advantage into the 'non-veg food
specialty food segment' that gives them free reputation. Customers, especially
children who are used to going to KFC as a treat or reward from their parents or
grandparents, are not going to want to go to other restaurants they’ve never heard
of. The brand name is already established. Also, there is already a large variety in
the numerous western-style dining places in India, such as

McDonald’s, Pizza Hut, Domino's and Subway, and any new fast-food entrants
would just be presenting something very similar to what’s already there. While
small

Neighborhood restaurants generally have low barriers to entry, these are the
barriers to entry for similar restaurant businesses to enter the fast-food chain
market.

Buyer/Supplier Bargaining Power

The customers of KFC, especially as individual buyers, have almost no bargaining

power because if only one customer threatens to no longer eat at KFC, the store is
not going to lower its price because the cost of losing one customer is not very
great. The suppliers, like the buyers, have very little bargaining power.
In terms of food, KFC, upon its move into India, urged many of its U.S. suppliers
to also extend branches into India. KFC also began helping local suppliers by
giving them technological support to improve their products. This is a brilliant
strategy because the supplies that KFC would otherwise need to import from the

U.S. can now be obtained domestically, and if the U.S. suppliers decide to raise
their prices, KFC can easily switch to the local suppliers. This gives us a brilliant
strategy. With this strategy, KFC created competition among its suppliers,
lowering the supplier

bargaining power. In terms of human resources, labor cost is extremely low

because the supply of non-skilled workers great exceeds the demand for them.
With so little buyer and supplier bargaining powers, KFC is able to have a very
tight control over its prices and expenditures.

Substitutes and Complements

As mentioned above, there are a few major competitors in the fast-food industry in
India for KFC, namely McDonald’s, Pizza Hut, Domino's and Subway. The
substitute products, in this case, would be burgers, pizza, and sandwiches. Though
they are competitors, their primary products differ greatly from each other, in that
they sell, chicken, burgers and fries, pizzas, and sandwiches, respectively.
Traditional Indian dining, home-cooked meals, and grocery stores with ready-to-
eat foods are also substitutes, as families could choose any one of these over fast
food for a meal. These substitutes are definitely considered healthy as compared to
the fast food chains. Even foods from street vendors count as substitute goods.

While other fast foods serve as substitute to KFC, they can also serve as
complements for fast foods as a whole. If the general price of fast foods goes up,
KFC’s price rises as well, and the same can be said of the quantity sold of these
products, which make them complements to each other. KFC also sets up stores
located near popular tourist attractions, so tickets to these tourist spots are also
complementary goods because the more people tour these attractions, the more
customers KFC will get.

Rivalry

Unlike what one would expect, KFC has little rivalry with similar fast-food chains
in India. The primary reason is that their core products are different, as in they sell
different kinds of fast foods with very different tastes and styles. For example, if
KFC raised its price for chicken by a small amount, Indian chicken lovers who
may not be as accepting to pizzas (many Indian people strongly dislike the taste of
cheese) are not going to switch to Pizza Hut just because the price for KFC
increased. In addition to that, these restaurants have such different target
customers that the fluctuation of price for one restaurant is not going to affect the
others. For example, a full meal at KFC ranges about Rs. 100, whereas a full meal
at Pizza Hut can cost over Rs. 300. The drastic difference in price assures no price
competition between these restaurants.
 Product profile
Current Products

Kentucky fried chicken

Zinger burger

Crushers

Game Box

Twister

Box master

Chicken Bucket

Hot wings

Fries

Corn on the cob

Zing Kong

Snacker (chicken & veggie)

Veggie Feast

Soft Drink
Coleslaw

Chicken Thali

Veg Finger

Snack Box

Sundae

Soft Twirl

Brownie Sundae

Menu items

This is a list of menu items sold at KFC.

Chicken

• KFC's specialty is fried chicken served in various forms. KFC's primary

product is pressure-fried pieces of chicken made with the original recipe.
The other chicken offering, extra crispy, is made using a garlic marinade and
double dipping the chicken in flour before deep frying in a standard
industrial kitchen type machine.
• Kentucky Grilled Chicken – This marinated grilled chicken is targeted
towards health-conscious customers. It features marinated breasts, thighs,
drumsticks, and wings that are coated with seasonings before being grilled.
 It has less fat, calories, and sodium than the Original Recipe fried chicken.[25]
Introduced in April 2009.
• KFC has two lines of sandwiches: its "regular" chicken sandwiches and its
Snackers line. The regular sandwiches are served on either a sesame seed or
corn dusted roll and are made from either whole breast fillets (fried or
roasted), chopped chicken in a sauce or fried chicken strips. The Snackers
line are value priced items that consist of chicken strips and various
toppings. In the UK, Australia and New Zealand, sandwiches are referred to
as "burgers"; there is the chicken fillet burger (a chicken breast fillet coated
in an original-recipe coating with salad garnish and mayonnaise) and a
Zinger Burger (as with the former but with a spicier coating and salsa). Both
of these are available as "tower" variants, which include a slice of cheese
and a hash brown.
• A variety of smaller finger food products are available at KFC including
chicken strips, wings, nuggets and popcorn chicken. These products can be
ordered plain or with various sauces, including several types of barbecue
sauces and buffalo sauce. They also offer potato wedges.

Product Profile: The Fillet Tower Burger

The Fillet Tower Burger, a cornerstone of the modern KFC menu:
A 100% chicken breast fillet coated in our Original Recipe herbs and spices,
topped with cheese, ketchup, hash brown, crisp lettuce and our deliciously creamy
mayonnaise - all served in a freshly toasted bun.
The official description is precise and to-the-point, reeling off a delicious list of
attributes which, in my opinion, make the Fillet Tower Burger my product of
choice. But why I hear you ask! A fair question, so please let me explain...
I could waffle on for many paragraphs about the toasted Kaiser bun, the creamy
mayo and the crisp hash brown, but as avid followers of the blog I am sure you
have all read DG's product profile of the Zinger Tower Burger and you are fully
aware of how the ingredients and flavours combine to create one of the most (if not
THE most) astounding burgers known to mankind. You may be thinking:

TLO Hot Rods are back

Let us welcome back an old friend for his third incarnation. We first welcomed the
Hot Rods box meal roughly 18 months ago and it quickly became a modern classic
and firm favourite amongst the KFB team. We were therefore delighted when this
reappeared as a TLO just 6 months ago and are ecstatic to see it appear yet again at
this very special time of year.

KFB has made many entreaties to have the hot rod box meal added as a regular
menu item much the way the Big Daddy meal and the boneless banquet have crept
in. The genius here is the boneless element as opposed to the bony piece of chicken
that usually adorns my box meal. Their satisfying size, texture and latent heat that
unleashes itself after a few chews is incredible.

KFC- Buffalo Toasted Twister (TLO)

Following the impressively named but in fact lacklustre "BBQ BEAST BOX" this
TLO is a more modest offering. It's simply a £2.99 speciality toasted twister which
can be turned into a meal with regular chips and drink for a further pound.

I rated this particular offering mere hours ago at the newly refurbished Festival
Heights branch in Stoke- On-Trent. Although at ten to five, and so well outside any
peak hours where one can expect the freshest products, I was served an exemplary
Buffalo Toasted Twister.

It was tightly wrapped and evenly toasted, although the Chicken and lettuce wasn't
crowning the top of the wrap quite as majestically as the advertising literature has
suggested (See bottom Picture). However, its demure appearance only served to
pique my interest further and I unashamedly moved in for the kill and took my first
bite.

The Chicken was hot and fresh, and a wave of sweet BBQ sauce engulfed my
mouth but was quickly tempered by the sour tang of the buttermilk from the ranch
dressing before a third dimension of savoury cheese flavour completed this
backwards cycle that had begun sweet, before culminating on satisfying savoury
notes.
This is a good solid offering from Luis

Boneless Banquet is fit for a king

 There seems to have been somewhat of a lul in the amount of
bloggin' we have been doing recently, this may be because we are too busy
consuming chicken...or maybe because we are too lazy (I like to think a little of
both). It's about time we delved into the colonel's ever changing menu, and this
time it's the new (or not so new anymore) Boneless Banquet meal. Myself and
good friend and colleague Steve took on what can only be described as a lunchtime
feast for two hungry gents, some 2 or 3 weeks ago. Both opting for the Bonless
Banquet, we eagerly tucked into lunch. It's great to finally see a box meal catering
for the boneless meat/non-burger fan - the combination of popcorn chicken and
crispy strips was a winning combination for me. Unfortunately Steve's opinions
were considered blasphemous in the presence of our lord harland, so his comments
have been stricken from the record...as I prefer to remember it, his opinion on the
meal was mostly praising, although he showed some disappointment that the beans
were not Heinz branded.

Big daddy box meal

Apologies to any avid fans out there, the team here at KFB have been somewhat
lazy and lackluster of late but today I am here to break the deadlock with a post of
epic proportions...and when I say epic, I truly mean it. It occurred to me recently
that there was an item on the KFC menu that has not received the attention it
deserves. Of course, I am talking about the largest item designed for consumption
by a single person - the Big Daddy Box Meal. It's time this bad boy had a full
review!

The Big Daddy burger has actually been around for quite a whiIe, originally
introduced to the menu as a TLO alongside the fillet tower and zinger tower meals.
These days the Big Daddy burger has secured it's own long term spot on the menu,
but as part of a box meal in direct competition to the Fully Loaded and Wicked
Zinger box meals. I ventured to The Plaza KFC branch on Oxford Street to sample
the Big Daddy.

On first impressions, you'd think there

was little or no difference between the Big Daddy and other box meals. Just like
the FL and WZ box meals, you'll get the burger, fries, 1 small side of your choice
and 1 piece of OR chicken (or 2 hot wings with the WZ). "What makes this the so-
called daddy then??" I hear you cry. Well, the real difference is in the burger itself.

The Big Daddy burger contains a few ingredients that make it stand out, and one in
particular that is found in no other item on the current menu. As well as the staples
(kaiser bun, OR chicken breast, hash brown, cheese slice, lettuce, ketchup) the Big
Daddy also contains a slice of fresh tomato, creamy peppered mayo and most
important of all - bacon. These are the additional ingredients that have earnt this
burger it's title based on sheer size, but more importantly, can it earn the KFB seal
of approval in terms of taste??

KF Chillers
Having been pestered for some time I have reluctantly agreed when an opportunity
presented itself to allow an acolyte to make a KFB submission. From here on in,
I'll let her work and pictures tell the story:

Upon recently informing DG that I would have an afternoon to kill in Reading, he

immediately exclaimed
“are you going to go to KFC??”.
Surprised by the excitement with which he asked his question I asked why, as it
was not on the top of my to-do list. He advised me that the Reading Broad Street
branch was one of those chosen to trial the new milkshake, and if I could please try
one. I duly obliged.

The product is known as a ‘Chiller’ and comes in four flavours, (Strawberry

Shortcake, Chocolate Crumble, Cookie Crush & Caramel Crunch. ed.) all of a
sweet variety. I opted for the Strawberry Shortcake, and watched as it was
prepared. The young man serving me first filled the cup with what appeared to be
the milk/ice cream, then squirted in some strawberry syrup and scooped in some
shortcake. He then put it under a big whisk like thing which mixed it all together.
As he was bringing it over to me I dug out my £1.99 to pay. Imagine my delight
when he told me it was actually only £1.79 – there had apparently been some
confusion in relation to the advertising.
However, this delight was quickly dampened when I looked at the Chiller properly.
It was served in a clear plastic cup with no branding or name on it whatsoever.
Further, there was a slight waste of packaging in the domed lid that came on the
cup. This would only be necessary if cream on the top was an option which I do
not believe to be the case. But fear not, I am reliably informed that this is due to an
‘ops shakedown’ and I imagine that the situation will be remedied if they decide to
launch it across the country.
KFC Original Recipe

6 cups Crisco Shortening

1 eggs well beaten

2 cups Milk

2 cups Flour

2 teaspoons ground pepper

3 tablespoons salt

1 teaspoon MSG

1/8 teaspoon Garlic Powder

1 dash paprika

2 Frying Chickens cut into 6 pieces

Place shortening into the pressure cooker and heat over medium heat to the
shortening reaches 400F. In a small bowl, combine the egg and milk. In a separate
bowl, combine the remaining six dry ingredients. Dip each piece of chicken into
the milk until fully moistened. Roll the moistened chicken in the flour mixture
until well coated. In groups of four or five, drop the covered chicken pieces into
the shortening and lock the lid. When pressure builds up cook for 10 minutes .
MARKETING STRATEGIES OF KFC

There are different strategies adopted by KFC for different events. They market
their products on different events and in different activities as they are helping SOS
village.

According to KFC, kids become the future permanents customers and we know
very well that without any marketing strategy no marketing program and no
product is successful because we depend upon customers, customer not depend on
us.

KFC is following Niche Marketing and Societal Marketing techniques.

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

KFC are moving from Divisional Level to the District level by opening branches.
KFC also offer free home delivery.

KFC open their outlets on reachable places.

KFC menu consists of more than 30 products.

KFC gives more priority to Family.

Marketing

Since 1982, KFC’s “All-American salute to Mothers” national card contest has
been KFC’s way of honoring moms and their families for making mother’s Day
KFC’s biggest sales day of the year. The contest encourages children to creatively
express their feelings for their moms by making a homemade card and give them
chance to compete for more than $10,000 in cash and prizes. Educational packets,
including language, history and art exercises highlighting Mother’s Day, were sent
to thousands of schools nationwide.
There are 4 P’s of Marketing:

1. PRODUCTION

2. PRICING

3. PROMOTION

4. PLACEMENT

1. Production:

Basically the product is anything that be offered to a market for attention,

acquisition, use, or consumption that might satisfy a want or need. KFC is
specially dealing in the chicken products; Basically, KFC has the special raspy for
chicken products that is why, KFC known as a chicken specialist allover the glob.
KFC target the Asia and east side because they observe that they people are like
the chicken products, so they enter in the market due to the demand of their
chicken products. KFC product variety of product in the chicken, those products
are:
PRODUCTS:

Original recipe® chicken

Extra Tasty CrispyTM chicken
Hot WingsTM pieces
Tender Roast® chicken
Chunky Chicken pot pie
Kentucky Nuggest®
Colonel’s Crispy Strips®
Honey BBQ sandwich
Original Recipe® Sandwich
Tender Roast® Sandwich
Triple Crunch® Sandwich
Triple Crunch ®Zinger® Sandwich

BRAND:

There are three brands of the KFC:

Taco bell
Pizza Hut
Long john silvers

2. Pricing:

KFC during pricing their products keep the different points in the mind like they
adopt the cost base price strategy. Pricing of the product includes the Government
taxes and excise duties and then they come at final stage of determine the price of
their products. KFC prices of products are a bit high according to the market
segment and it is also compatible to the stander of their products.

Calculation of the price under Cost Based Pricing Strategy:

Total Pounds of Chicken Served in KFC Restaurant Annually = 1.914 Billion

Total KFC Chicken Pieces Sold Annually = 5.89 Billion

Total Retail Sales = $8.9 Billion

Sales Price of per Chicken Piece = Total Retail Sales / Chicken Pieces sold
= $8.9 Billion / $5.89 Billion
=$1.51

We assume that Fixed Cost is = $6000000000

Variable Cost = $675000000
Profit Margin is Or Mark Up = $225000000(25% of Sales)
Per Unit Variable Cost = $675000000 / 5890000000
= $ 0.115

Unit Cost = Variable Cost + Fixed Cost / Chicken pieces Sold

= 0.115 + 6000000000 / 5890000000
= 0.115 + 1.02
= $1.135
Now suppose manufacturer wants to earn 25% mark up on sale. The manufacturer
mark up price is calculated:

Mark Up Price = Unit Cost / (1 – Desired Return on Sales)

=1.135 / (1-.25)
= 1.135 / 0.75
= $1.51
3. Promotion:

Promotion is one of the necessary plates in any form of business or in other words
you can say that promotion is the key of success. If you promote your product at
the right time . KFC also known the importance and significance of promotion so
they uses the bill boards the major source of advertisement A survey of young
consumers in the countries (n = 795), showed that the respondents were more apt
to eat within KFC restaurants, and spend more time doing so, than the Americans.
The Chinese also had much more positive impressions of KFC. Brand identity
impressions were correlated with overall customer satisfaction and with future
patronage intentions for both groups. These findings support a model where
differences in cultural frames of reference lead consumers to actively localize the
brand identity of this nominally globalized product.

4. Placement:

In the case of the KFC the placement of the product is not important but the
placement of the restaurant is important. The products of the KFC is cooked at the
sport and then served after that. KFC Cavalry branch opened in June 1998, in the
main commercial zone of Cavalry Grounds near the Jinnah Flyover. The restaurant
is a three-story building including the basement (where the chicky play area is
located). It is ideally located in the center of a main commercial and residential
area of Lahore. The area that KFC Cavalry caters for is the residential and office
area of Cavalry Grounds and Cantt, as the main target market. Another branch the
KFC opened in the Lahore is in Garden Town (opposite to Barkat Market). KFC
also target the Faisalabad and open its branch in D ground. Now we can easily
judge that the KFC target the place for their restaurant, which is well known and is
in the Porsche area where the income level of the people is high then the middle
class level. Because the prices of the KFC products is high with comparison to the
local products manufacturer who are dealing in the same kind of product in which
KFC is dealing but the prices of the KFC is high due to special taste, high quality,
and due to international brand, it is the world recognized fast food restaurant all
around the world. So, for the placing strategy, KFC chose the well income class
area for their restaurants.

Purchasing process:
Many people come from home to eat this, and some make impulse decision as they
saw it .

Market mix Strategy

KFC will be using differentiated market coverage strategy. It means that different
marketing mix will be used for different age groups.

TARGET MARKET FOR FAST FOOD

After evaluation of various segments, KFC has decided to target the market of
Urban and Sub-urban Areas of india.

Product usage
People are educated and they want variety in their diet.
Normally people of rural areas don’t take fast food. On the other hand people of
urban areas take fast food.
Income of the people of urban areas is normally high and they can afford to
purchase such products, which are slightly higher in price as compared to
prevailing prices of local food in the market.
People of Urban Areas are more quality conscious than the people of Rural Areas.
In Urban Area there lived people from every walk of life and profit generation is
easier than in Rural Areas.
Population density is higher in Urban Areas as compared to Rural Areas, so the
numbers of customers are more in Urban Areas.

Current target market

Segmentation
KFC has divided the market of India into distinct groups of customers with
different demands, tastes and behavior who require separate products or marketing
mix.
In India 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

By using these three bases they segmented the market as under.

DEMOGRAPHICAL BASIS
In demographics their first segment is consisted of the income factor i.e. high
income, average income and low income.

BEHAVIOR

In behavioral aspect they segmented the market on the basis of quality, taste and
price. Following are the different possible segments in this regard.

Taste conscious
Quality conscious
Class conscious
Combination of price and quality

GEOGRAPHICAL BASIS

On the basis of the geographical factor we have divided our market in three main
segments.
Urban areas
Sub urban areas
Promotions

In India KFC not advertise their products too much because people KFC due to its
reputation in other countries. They promote their products through special
packages. They promote their products through billboard, pamphlets and through
other promotion strategies
Sales promotion

For the sales promotion KFC introduced their goods like watches , keychain, etc to
the customers.
 KFCIndia - BCGMatrix

Crispy
Boneless
Chicken
Krushers
?
Chicken
Bucket

Veg
Thali

Boston Consultancy Group (BCG) Matrix

Question Mark:

Currently KFC have launched a new product in the market. They have also tried to
come into the beverages market by launching its new brand of shakes called
KRUSHERS. As it is a fairly new product it comes in the category of the Question
Mark in the BCG Matrix. It has a low market share thus brings low revenue. KFC
is advertising a lot to popularize this product so there is a lot of expenditure on it.
This product is individually not bringing any profits and is a cash drain for the
company. Company may decide to completely remove this product from the
market if it does not do well soon and start bringing in revenue.
DOG:

KFC’s Veg Thali comes under this category. Although company had launched this
product much earlier, it has still failed to become a success. As KFC is known
more for its non-veg food, this also results in low demand for this item. It has a low
market share and although low on expenditure (as company does not spend on its
promotion), it does not bring in much revenue as demand is low. The product is
mostly CASH NEUTRAL.

CASH COW:

KFC’s Chicken Bucket is the most successful product of the company. It has the
highest market share amongst all the other products. It has good demand in the
market and brings in huge sales revenue. The development and other expenses are
also low and thus this product is a CASH SIRPLUS for the company.

STAR:
The star product of the company is its crispy Boneless Chicken. It has a high
market share and brings in high revenue. But it also has high developmental
expenditure involved. The profit therefore is generally not very high brought in by
this product. This product is CASH NEUTRAL for the firm. The company is
trying make this product a cow as well, by reducing the expenditure

Advertisement

The advert titled Pool was done by OGILVY & MATHER, New Delhi advertising
agency for KFC ZINGER BURGER (KFC Company) in INDIA. It was released in
the June 2009. Business sector is Fast food outlets & restaurants.
One of KFC's latest advertisements is a commercial advertising its "wicked crunch
box meal". The commercial features a fictional black metal band called
"Helvetica" performing live, the lead singer then swallows fire. The commercial
then shows the lead singer at a KFC eating the "wicked crunch box meal" and
saying "Oh man that is hot".

In 2007, the original, non-acronymic Kentucky Fried Chicken name was

resurrected and began to reappear on company marketing literature and food
packaging, as well as some restaurant signage.
 DATA ANALYSIS
Competitive analysis

Competitors

You cannot enjoy the business without competitors. No organization can afford to
ignore there competitors. It is very important strategy

They offered different packages at different events like ramdan offer, midnight
offer etc.
KFC compete there competitors by providing good services

They must hired the hard selling persons to market their product in the market and
motivate their employees for the sake of organizations and employees do well and
they compete there competitors

KFC has quality products and through these quality products they compete their
competitors

COMPETITIVE ADVANTAGE

KFC McDonalds

Spicy Products Burger and French Fries

Indian people like spicy products
instead of boiled food
Arabian Rice and Zinger Burger Big Mac

Free Delivery Charges for home delivery

Chicken is eaten by every community Beef is banned in some community

Its Staff consist of simple Graduates and
Local Staff and Highly Qualified
give them training
because local staff can
better deal with the
customers
McDonalds Uses Top To Bottom
KFC uses Top to Bottom and Bottom to
Approach.
Top Approach in
Management.
No such Case.
KFC is Co branding with Walls

Economic Analysis of Market

A market in this context refers to a number of all actual and potential buyers of a
product (Kotler et al 2003). These Communication
buyers have a need to satisfy their
Product / service
needs through exchange (Graphic Industry Market
(a collection (a collection
1). These needs make up the of seller) Money of buyers

demand for particular products and

Information
Graphic 1
services. Several components must be considered, as all these components have a
direct or indirect impact on KFC’s success.
Changes in the below described components over the last couple of years have led
to big changes in people’s attitudes towards healthy food. It explains why
Australians today want to eat healthy and nutritious-rich food in order to keep
themselves healthy and that KFC must adjust their range of product and their
company image to appeal to these new expectations, people have.
Macro environment

KFC operates in a larger macro environment of forces that creates opportunities,

but also threats. (Kotler et al 2003). A company such as KFC usually
cannot influence trends in the macro environment, as they affect people and
organisations on a larger scale.

However, KFC has to carefully examine macro environmental trends and must
create competitive responses to such trends. There are six major macro
environmental forces KFC has to take into account.

Micro environment
The microenvironment consists of
all forces that are close to
Company Competitors
KFC, and on which KFC
has an impact. They directly
affect KFC’s ability to serve its
KFC
customers. (Kotler et al
2003). Three major
components influence
Consumers
KFC’s micro environment:
Graphic 3 (Source: Kotler et al 2003) Micro Environment
Competitors
Because the fast food market in India is highly competitive, KFC faces a wide
number of direct and indirect competitors. KFC’s main competitors are fast food
chains such as McDonald’s and Domino’s, which are already well established
throughout India.
McDonalds’s in particular is a direct competitor, as they have already successfully
introduced their Salads plus line (http://www.theage.co.in), which directly targets
‘healthy food’ conscious Indians. But, there are a number of other competitors that
is also focusing on ‘chicken’ types products. All this competition makes it quite
difficult for KFC to maintain or even broaden their customer base. However, with
the introduction of a new and healthy product range, KFC can differentiate itself
from most competitors and will gain a competitive advantage.

Customers
KFC’s customer market consists solely of the consumer market (Kotler et al 2003).
KFC’s products are bought by individuals (males, females, singles, and families).
Therefore, the product range KFC offer should appeal to as many people within
this consumer market as possible, to ensure that the maximum amount of products
can be sold. The characteristics of these individuals and a segmentation of them are
discussed later in this report.

Current Sales Analysis

Market Share
KFC has a very long history and has the most recognize able brand in chicken with
over 50% of the market share. It becomes difficult for the companies like Sub way,
Mc Donald’s, Chicken planet, Dixie or those who may want to enter in the market
of fast food restaurants.

Due to with over 50% of the market share in fast food industry KFC has
recognition around the world and has been globally positioned for many years in
India and to capture the market share in India adopts champs philosophy

Environmental factors and opportunities

Political :

The operations of KFC are affected by the government policies on the regulations
of fast food operation. Currently government are controlling the marketing of fast
food restaurant because of health concern such as cardiovascular and cholesterol
issue and obesity among the young and children in the country. Governments also
control the license given for open the fast food restaurant and other business
regulation need to follow such as for a franchise business. Good relationship with
government in giving mutual benefits such as employment and tax is a must for the
company to succeed in any foreign market.

Economic:

Though for last 1 year their was economic slowdown all across the globe but the
sales of KFC and other fast food chains did not slow down to that extent that of
other sectors in. The GDP (Purchasing Power Parity) is estimated at 2.965 trillion
U.S. dollars in the year 2010. The GDP- per Capita (PPP) was 2700 U.S. dollars as
estimated in 2008. The GDP- real growth rate in 2007 was 8.7%. India has the
third highest GDP in terms of purchasing power parity just ahead Japan and behind
U.S. and China. Foreign direct investment rose in the fiscal year ended March 31
2007 to about $16 billion from just $5.5 billion a year earlier. There is a continuous
growth in per capita income; India’s per capita income is expected to reach 1000
dollars by the end of 2007-08 from 797 dollars in 2006-07. This will lead to higher
buying power in the Hands of the Indian consumers. So taking into considerations
the economic factors of India KFC is safe. The only danger to it will be if there is a
terrorist attack in India and the victim is KFC.

Socio cultural:

India is the second most populous nation in the world with an approximate
population of over 1.1billion people. This population is divided in the following
age structure: 0-14 years – 31.8%, 15-64 years – 63.1% and 65 years and above –
5.1%.

There has also been a continuous increase in the consumption of fast food in India.
The social trend toward fast good consumption is changing and India has seen an
increase of 90% fast food consumption from the year 2002- 2007. This increase is
far greater than the increase in the BRIC nations of Brazil (20 per cent), Russia (50
per cent) and China (almost 60 per cent). Thus this shows a positive trend for fast
food industries in India.

Technological:

The Indian fast food Industry is heating up with a lot of foreign players entering
the Indian market. The technological knowhow and expertise will also enter the
Indian market with an increase in competition. With the lower rates and increase
technology the fast food counters are attracting youth by giving them attractive
deals. For e.g. KFC and Domino’s pizza. For a fast food restaurant, technology
does not give a very high impact on the company and it is not a significant macro
environment variables. However KFC should be looking to competitors innovation
and improve itself in term of integrating technology in managing its operation. For
example in inventory system, supply chain management system to manage its
supply, easy payment and ordering systems for its customers and wireless internet
technology. Implementation of technology can make the management more
effective and cost saving in the long term. This will also make customer happy if
cost savings results in price reduction or promotional campaign discount which
will benefits them from time to time.

Environmental:

As one of world largest consumer of beef, potatoes and chicken, KFC always had
been critics for world environmentalist. This is because high consumption of beef
causing the green house effect by methane gasses coming from the cow’s ranch.
Large-scale plantation has effect the environment and lost of green forest opening
for plantation activities. Vegetarian environmentalist criticizes the fast-food giant
for cruelty to animals and slaughtering. In America, once KFC want to introduce
whale burger causing uproar because whales are endangered species. Before using
paper packaging, KFC once had been criticized for being insensitive to pollution
because of using ne based packaging for its food products. Imagine millions of
people purchase from fast food operator and how is the impact to world
environment by throwing away those hard to recycle packaging.

Our world is getting concern on environment issue and business operating here
should not just care for profit, but careful usage of world resources for sustainable
development and care for environment safety and health for our future generation.
Critics and concern from all public or activist should be review and support if
necessary to ensure we play our social responsibility better.

Legal factors:

As a certified fast food operator, there are many regulations and procedures that
KFC should follow. For example is the Halal certification that becomes a concern
to Muslim consumers. KFC should protect its integrity and consumer confidence
by ensuring all materials and process are as claimed or must followed.

Other legal requirement that the business owner should follow as stipulated in laws
are such as operating hours, business registration, tax requirement, labor and
employment laws and quality & environment certification (such as ISO) in which
the outlet has been certified. The legal requirement is important because the
offenders will be fined or have their business prohibited from operating which can
be disastrous

SWOT ANALYSIS

SWOT analysis mean strength, weakness, opportunities and threats and the SWOT
analysis of KFC are:

STRENGTHS
Goodwill and reputation: The company certainly has earned a good name and
reputation by its previous products and services in the market. It is even more
recognized in other markets outside India, where the company is among the
leading fast food giants. The brand is recognized and trusted in India for its quality
products, price, and customer service. It therefore has a good head start and enjoys
a good chance of becoming a leader in Indian fast food industry.

Employee Loyalty: Employee Loyalty is one of the major strengths of KFC. The
turnover rate in the company is amongst the lowest in the industry.

Customer Loyalty: Despite gain by Boston Market and Chick-fill A, KFC

customer base remained loyal to the KFC brand because of its unique taste. KFC
has continued to dominate the dinner and take out segment of the Industry.

Ranks highest among all chicken restaurant chains for its convenience and menu
variety . It generates $1B revenue each year.

WEAKNESSES

KFC was losing market share as other Chicken chain increased sales at a faster
rate.

KFC share of Chicken Segment sales fell from 71 percent 1999, to less than 56
percent in 2009, a 10-years drop of 15 percent.

Huge competition in this segment.

India is still mostly a vegetarian dominated cultured society. South India is
especially very much so. This may reduce the market share of the company.

KFC has not yet invested much on R&D, and innovating new products for Indian
Markets. This may lead to failure of their products as they are not in line with the
Indian mind set, peoples taste and preferences and their likes and dislikes. This
may prove fatal for the company.

OPPURTUNITIES

New Markets: Globalisation has opened doors for new markets for the company.
As the developed markets are mostly saturated, the developing countries like India
and China promises a good market and generation of demand in the future. With
more than 70% of the markets in india being unexplored and un organised, KFC
has a good scope of expanding its operations in the country.

Cross Culture: Generally there is a good acceptance of American culture of fast

food in India. People are opening up to fast foods more regularly in their daily
lives and not just keeping it a once in a month affair. Thus Indian mindset is fast
changing.

Large Youth population: India has a very large share of youth population a
compared to other countries. More than 60% of the population is under the age of
30yrs. As the young generation are more open to fast foods and demand it more,
this is a good news for the company.
 New variety: Company can also come up with new variety in the menu like
Pizzas, garlic breads to attract more customers.

THREATS

Competition: Competitor companies like McDonalds are fast catching up with the
market. McDonald’s with sales of more than 19 billion in 1999, accounted for 15
percent of the sales of the nation’s top 100 restaurant chains.

Organizations’ like PETA People for Ethnic Treatment for Animals have given a
bad name to the company which may prove disastrous to the image of the firm.
Currently, KFC is under massive attacks from animal organisations, questioning
the way KFC’s suppliers are threatening the chicken, before they got slaughtered.
Anti-KFC campaigns, such as the one from PETA are affecting KFC’s brand
image in a negative way and result in direct dollar losses, as less people are
consuming KFC chicken

Saturated US Market: Now KFC cannot rely on just its home market to generate
sales. As the US markets are already saturated and leave no or little scope for
growth, company necessarily needs to look at offshore foreign markets to generate
sales and keep up the profits.
 Research Methodology

Research Methodology is a way to systematically solve the research problem. It

may be understood as a science of studying how research is done scientifically.
When we talk of research methodology we not only talk of research methods but
we also consider the logic behind the methods we use in context of our research
study and explain why we are using a particular method or technique and why we
are not using other so that research results are capable of being evaluated.

The simple meaning of research is to search for facts answers to questions and
solutions to problems. Research is a powerful investigation. It clarifies the doubts,
it corrects the misconceived ideas, it seeks to find explanation to unexplained
phenomenon. Research in common parlance refers to search for knowledge.
Research is a systematic and re-defined technique of thinking. It aims at
advancement of knowledge.

Clifford Woody defines research as the process which includes defining and re-
defining problems, formulating hypothesis or suggested solutions, collecting,
organizing and evaluating data, making deductions and researching conclusions
and at last carefully testing the conclusion to determine whether they fit the
formulating hypothesis.
Clover and Balsley defines research as the process of systematically obtaining
accurate answers to significant and pertinent questions by the use of the scientific
method gathering and interpreting information.

A systematic approach is essential in good research. Each step must be so planned

that it leads to the next step. In this project the researcher has tried to do the same
by having a systematic study of all the activities of the business. Hence the project
was carried out in a systematic manner by interviewing right from the
manufacturer to the end customer.

Features of research:-

1. Research is directed towards the solution of a problem.

2. Research emphasizes the development of generalization of principles or

theories that will help in predicting future occurrences.
 3. Research is based upon observable experiences or empirical evidence.

4. Research involves gathering new data from primary or firsthand source or

using existing data for a new purpose.

5. Research is an Endeavour to discover, develop, and verify knowledge. It is

an intellectual process always searching for truth.

Types of research

There are various types of research. Some of them are:

1. Fundamental Research
2. Applied Research
3. Descriptive Research
4. Historical Research
5. Exploratory Research
6. Comparative Research
7. Experimental Research
8. Evaluation Research
9. Quantitative Research

10. Qualitative Research

In this project the research is of exploratory type. This gives rise to several
hypotheses which have given us define conclusions, which, when tested for
validity.

Types of data
Primary data

Primary data are those which are collected afresh and for the first time and
thus happen to be original in character.

Primary sources of data mean first hand sources or original sources at the
hands of a researcher that is not collected previously. Primary data is the
powerful source to understand opinions, attitudes, and qualities.

There are various methods of collecting primary data. The important ones
are observation method, interview method, questionnaire method, schedules
and internet.
 In this project the method used for data collection are schedules and
questionnaire. A schedule is something where a questionnaire is filled by an
interviewer face to face with the respondent and the questionnaire is filled
by a respondent himself. This gave accurate and first hand information as
there was a dialogue between the researcher and the respondent.

Secondary data

Secondary data means data that are already available, i.e, they refer to the
data which have second time. When the researcher utilizes secondary data,
then he has to look into various sources which may either be published data,
or unpublished data.

In this research various sources secondary data primarily the kfc web site
where there was complete information about the industry, right from the
process to the required legalities, were used.
Research Design

Young says, Research design is a logical and systematic planning and

directing a piece of research. Thus research design is a logical and
systematic plan prepared for directing a research study. It specifies the
objective of the study the methodology and techniques to be adopted for
achieving the objectives.

A sample as the name implies, is a smaller representative of a large whole. A

sample design is definite plan for obtaining a sample from a sampling frame.
It refers ti the technique or the technique or the procedure, the researcher
would adopt in selecting items for the samples from which the inferences of
people are drawn. Sample design is determined before the data is collected.
 While developing a sample design the researcher must pay attention to
the following points:-

1. Type of universe:-

The first step in developing any sample design is to clearly define the set of
objectives, technically called the universe. The universe can be finite or
Infinite, the population of a city, numbers of workers in a factory are examples
of finite universe. We’re as the no. of stars of stars in the sky, listeners of
specific radio are example of infinite universe.

2. Sampling Unit

A decision has to be taken concerning a sampling unit before selecting a

sample. Sampling unit may be geographical one, such as state, district etc. or a
construction unit such as house, flat, etc. or it may be a social unit such as
family, club, school, etc. or it maybe an individual. The researcher will have to
be decide one or more such units that he has to select for his study. In this
project the was limited to the Pune region. The survey was conduct
at various places in an around Pune.

In our case sample unit were individuals

3. Sample Size
 This refers to the no. of items to be selected from universe to constituted a
sample the size of sample should be optimum. An optimum sample is one which
fulfils the requirements of efficiency, representation, reliability and flexibility.
Our Sample Size was one hundred samples.
4. Parameters of Interest

In determining the sample design one must consider the question of the specific
population parameters which are of interest.

5. Budgetary Constraints
The researcher has to keep in mind the cost considerations by preparing the sample
design. He should select the sample design in such a way that for a given sample
size and for a given cost the sample design has smaller sampling errors.
6. Sampling Procedure
Finally the researcher must decide about the type of sample he will used that is he
must decide upon the technique or procedure to be used in selecting the item for
the sample.

SAMPLING METHODS

It refers to the procedure of selecting sample and not its compositions. A study of
different methods of sampling is necessary because the precision, accuracy and the
efficiency of sample results depends upon the actual methods in used.
 Sampling method can be classified into,

1} Probability Sampling.

2} Non probability Sampling.

TOPIC
Which fast food outlet you visit often

TABLE

Fast food outlets No. of respondents

Mc donalds 32
Pizza hut 15
Kfc 41
Domino 12
GRAPH

INTERPRETATION: Most of the respondents were visiting kfc fast food outlet. It
was found that a considerable number respondent wear also visiting fast food and
mc Donalds comparatively.
TOPIC

How do you come to know about KFC

TABLE

Options No. of respondents

Advertisement on 23
newspaper/magazine
Internet 10
Family/friends 35
Banner 15
People working for kfc 02
Leaflets 09
Others 06

GRAPH
INTERPRETATION: As per the results we come to know that people are aware of
anything through the above variants .As people come to know more through their
family, friends and colleagues.

TOPIC

Who do you often go with

TABLE
Go with No. of respondents
Alone 10
Family 38
Friends 49
Others 3

GRAPH

INTERPRETATION:
This is analysis has been made from responses of all the respondent customers of
various groups. It has been found that most of the people go in group of friends.

TOPIC

How does the location, in general, affect your decision of choosing a restaurant or
a shop?

TABLE
Decision No. of respondents
Strongly 55
A little 25
Not affect 20

GRAPH

INTERPRETATION: Most of the people strongly affected to the location. Some

are affected little and some are not affected.

TOPIC
What factors of location affect your decision?
TABLE

Location No. of respondents

Near house 18
On the way 38
Near shopping center 34
Near traffic signal 10

GRAPH

INTERPRETATION:
Most of the respondents were selecting on the way location. It was found that a
considerable number respondent wear also selecting location like shopping center
also.
TOPIC

What do you think about the parking area at KFC

TABLE

Response No. of respondents

Good 30
Normal 38
Bad 32

GRAPH
 40% 38%

35% 32%
30%
30%
25% good
%of Respondents 20% normal

15% bad

10%
5%
0%
decision

INTERPRETATION:
As per the response of respondents it comes to know that the parking facility
provided by kfc is not satisfied to people
TOPIC

How does the KFC’s brand image affect your decision

TABLE

Decision No. of respondents

Very much 45
Normal 36
Very little 19
GRAPH

INTERPRETATION:
As per the research the brand image affects the product to hit in the market.
TOPIC
Do you like the logo
TABLE

Satisfied No. of respondents

Yes 78
No 22
GRAPH:

INTERPRETATION:
As per the results many people like the logo of kfc.

TOPIC

How often do you come to KFC

TABLE

Period No. of respondents

Every 3 days 16
Once a week 32
Once a month 49
Other option 3
GRAPH

INTERPRETATION:

As per the results many people often to go monthly as compare to others periods.
TOPIC
What do you think about the price here
TABLE
Options No. of respondents
Very expensive 22
Expensive but payable 30
Reasonable 39
Cheap 9

GRAPH

INTERPRETATION:
As per the price concern people doesn’t affect due to this what they want is good
quality of food and service.
TOPIC

How do you feel about KFC's food?

TABLE

Options No. of respondents

Delicious 72
Good 16
Normal 09
Not good 03

GRAPH

INTERPRETATION:
We come to know that people love the food of kfc on the bases of their freshness
and quality.
Product Issues
General description:
Features:

Quality Control Over Ingredients

Every Chicken Tested

K & N’s state-of-the-art Quality Assurance Lab monitors the entire integration
process from livestock to feed and on to preparation of ready-to-cook and cooked
products.

Every Chicken Certified

HACCP – K & N’s ensures food safety by implementing the international HACP
(Food Safety System) and enjoy the unique privilege of being the first and only
HACCP certified company is India producing chicken and chicken products. Free
from diseases and bacteria, drug residues and other contaminants.
Packaging

We are asked as many questions on our packaging as our products by our

customers. The
packaging for KFC products is chosen according to performance against three key
criteria:

Heat Retention
Moisture removal
Grease absorption
The packaging material and carton design are all adapted to maximize performance
against these three criteria.

Recycled Paper
All our clamshells and chicken boxes contain as much recycled material as it is
legally
allowed. By law we are required to have virgin fibre board in any part of the
packaging that is in contact with food. Any virgin fibre comes from board
suppliers who use pulp bought from managed forest in Scandinavia. This ensures
that any wood cut for paper production is replaced with new plantings.

Environmental concerns
Over and above ensuring our packaging is supplied via recycled or renewable
resources;
KFC are enthusiastically complying with the new environmental directives on
recovery and recycling of packaging waste.
Litter
We at KFC UKI are aware of our responsibilities to the Management of Litter and
all our packaging carries the ‘Keep your Country Tidy’ signs

Branding

This research measured and compared the brand identity of Kentucky Fried
Chicken (KFC) in India. Brand identity was defined as the customer impressions of
four different KFC identity elements - properties, products, presentations, and
publications. A survey of young consumers in the countries (n = 795), showed that
the respondents were more apt to eat within KFC restaurants, and spend more time
doing so, than the Americans. The Chinese also had much more positive
impressions of KFC. Brand identity impressions were correlated with overall
customer satisfaction and with future patronage intentions for both groups. These
findings support a model where differences in cultural frames of reference lead
consumers to actively localize the brand identity of this nominally globalized
product.
CONCLUSION

1. As the fast food industry is highly fast service oriented industry, attention is
given to the satisfaction of consumers.

2. It was found that people who already had their trust and satisfaction on the
services provided by kfc.

3. It was discovered that people does not consider what is value of food they
consume, they want quality and good service.

4. New people who don’t tested food of kfc, they were egger to test it.

5. The some products of kfc where highly expensive so, people doesn’t want to test
it.

6. Because of the survey some people came to know about kfc.

7. All age group people were interested in testing the new product which is
launched by kfc.

8. Most of the people were interested in home delivery service provided by kfc.
Recommendation
After doing the research I have collectively given the following recommendation
for growth of the kfc fast food chain.

1. It was found that old people were more interested rather than new one in testing
new product launched by kfc.

2. It was found that awareness of kfc was less as comparison with other fast food
restaurant in pune.It is recommended that there are only two –three outlets in pune
region due to this there is no much more awareness in people.

For example: Mc Donald’s have more outlets then kfc in pune region.

3. It was found that kfc provides more non-veg food as compare to veg due to this
the veg customers is distracted.

4. The quality, cleanliness and fast service should be maintained by kfc managers
properly.
BOOKS:
1. RESEARCH METHODOLOGY BY C.N.KOTHARI

- NIRILI PUBLICATION.

2. RESEARCH METHODOLOGY BY VISION PUBLICATION

WEBSITE:

1. WIKIPEDIA

2. ENCYCLOPEDIA.

3. KFC.COM

4.KFCINDIA.COM
Questionnaire

1. Age…………

2. Your occupation …………………………………

3. Which fast food outlet you visit often?

a.mc Donald

b. pizza hut

c. kfc

d. dominos

4. Why do you choose KFC instead of other restaurants for junk food?

…………………………………………………………………………

………………………………………

5. How do you come to know about KFC?

1. Advertisement on newspaper/magazine

2. Internet

3. Family/friends/ colleagues

4. Banner

5. People working for KFC

6. Leaflets

7. Others………………
6. Who do you often go with

1. Alone

2. Family

3. Friends/ Colleagues

4. Others…………….

2. How does the location, in general, affect your decision of choosing a

restaurant or a shop?

1. Strongly

2. A little

3. Not affect

3. What factors of location affect your decision?

1. Near your house

2. On the way to work or school

3. Near shopping centre

4. Near the traffic signals so that it’s easy to be recognized.

4. What do you think about the parking area at KFC?

1. Good

2. Normal

3. Bad

(Please, specify your reasons)

…………………………………………………………………..

5. How does the KFC’s brand image affect your decision

1. Very much

2. Normal

3. Very little

6. Do you like the logo? Yes…………..No…………….

(if yes, please specify your reasons)

……………………………………………………………………………………
………………

7. How often do you come to KFC

1. Every 3 days

2. Once a week

3. Once a month

4. Other options………………….
 8. What do you think about the price here?

1. Very expensive

2. Expensive but still payable

3. Reasonable

4. Cheap

9. The KFC’s package is made by paper. What do you think about this?

………………………………………………………………………………

10. How do you feel about KFC's food?

1. Delicious

2. Good

3. Normal

4. Not Good

16. What are your suggestions for improving KFC's service quality? (If any)

………………………………………………………………………………………
………………………………………………………………………………………