BRAND

IN INDIA

CMM 591 First Case Study

Pushya Siddharth

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 The association between red, white and chicken can be only KFC for many of
us. A company originating form Corbin, Kentucy has been able to carry this
association overseas to many countries and make their presence in the food
industry. Globalization and deregulation of laws helped the establishment of many
such American based companies, and allowed their proliferation all over India.

The Brand idea of KFC was seen to vary in the Indian subcontinent as
compared to its American counterparts. The differences are seen from the market
KFC serves to the ambience of their restaurants. This study makes an exploration of
the Brand Identity KFC has in India.

a. Establishment into the Indian Market

KFC was one of the first few fast food multinationals to enter the Indian
market. The market was opened up to foreign companies, as a result of deregulation
that took place in 1990. Globalization was unleashed into a country that was very
attached to traditional Indian values. Many anti-globalization movements were
taking place by tradition-adhering groups. Similarly KFC also met the same fate.

KFC established itself in Bangalore in 1995. They chose this location because
many they found a good number of people who went out to eat. They had decided
on targeting the upper middle class families, and Bangalore had a good population
of the target audience.

The first KFC outlet was located in the shopping hub of Bangalore back in
1995. This was where their target audience was found to move around during their
lesuire time, thus became an apt location to gather their customers.

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b. Current Market Situation

Further, KFC began to establish itself across all the metros along with cities
like Chandhigarh, Pune and Ludhiana. In 2008, KFC had a market of $12 billion
dollars and was going to develop its business by inversing $2 billion and open over
100 outlets in other cities.

However what is not seen in the statistics, is KFC’s struggle over the whole
decade. KFC entered with steep pricing and an international menu, which led them
to struggle in revenue. They were unable to understand and cater to the Indian
palate. Other bands like McDonalds and Pizza Hut managed to understand the need
of the market before KFC changed its strategies.

c. Brand Promise.

I understand that, KFC today in India, has a very polished appearance as

compared to a few years ago. They have realized that the Indian market and
customer, uses fast food joints not as a “fast food” option, but to relax and eat a
burger or chicken strips, since the local restaurant brands satisfy customers need
for quick food.

The change KFC has shown recently in their ambience, packaging and even
the menu has contributed greatly for their brand. They have introduced a series of
Indianized products, the variety in the vegetarian products have also increased and
they have bettered their quality. With the many changes its image is undergoing,
KFC is potraying a caring image, they want to be able to cross cultures and serve
good food.

KFC I believe, has managed to get the upper middle class market. For these
customers KFC would be an option to get some food when shopping, have lunch

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with friends or even dinner with family. For the upper middle class, the more
westernized audience, it gives them the whole Western feel.

Their expansion plans for 2008, they want to extend into the tire 2 and tire 3
cities. They aim at getting the more working/middle class customers. Since smaller
Indian cities are being more westernized whether through media or personal
experiences, KFC stands a good chance of establishing themselves even in smaller
cities of the country.

d. Execution

i. Ambience: The KFC store complies to the logo colours: bright red and with
big bold lettering. A smiling face of Col.Sanders outside welcomes customers.
The showcase holds displays of promotional goods, offer displays and
freebies for children. Therefore it gives out an idea of fun, and welcoming for
customers passing by. The bright bold colours may make them stop and
reconsider their needs. For the children the mascot and the big logo potrays a
fun and exciting environment.
ii. Menu: the display of their products and the variety of meals offered caters to
all the customers need. From western food like burgers and fries, to more
intermediate option of the chicken strip and the bucket, to Indian options of
thali mean (chicken, rice and Indian curry). They also have a selection of food
for the vegetarian, which is coded in green making them feel more relaxed in
a non-vegetarian place.
iii. Packaging: glossy sturdy packaging is what comes across. It gives and idea
that the brand is not careless when it comes to service, bold dark lettering,
with a more designer packaging for adults, bright variations of the same
colours more animated for the children, shades of green and white for
vegetarians so that they can completely dissociate themselves with the non-
vegetarian packaging. Packaging materials range from burger boxes, buckets,
napkins, straws, even balloons for the kids.

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 iv. Restaurant design: The revamped stores are more in competition with the
Pizza Hut and McDonalds. The brand comes across as wanting to give the
customer a place to eat, rather than a fast food option. The restaurants are
very polished, with polished flooring and full-length glass windows. The red
couches further maintain the brand’s identity. Party halls are also provided
at some outlets for children to have birthday parties, yet the ambience is
more sophisticated so that teenagers, family groups are not left out. Large
glass mounted displays of their products with lettering containing expressive
noises eg. Mm, Yummy, Slurp etc.
v. Logo: The logo adhering to the changes in its representation, has the Colonel
in an apron with red, white and black colours. The logo is seen at the
entrance, on the menus, the packaging etc. The new logo makes it appealing
and a more friendly visual.
vi. Service: the representatives are friendly and help you to relax. They even
seat you at your table, for pending orders they serve you themselves. They
are dresses in red and black with the KFC logo. Making sure the customer
remembers their brand.
vii. Advertising: KFC did not advertise on Indian television till almost 12 years
after their establishment. But today their ads are on everywhere and revolve
around family and kids and the quest for good fried chicken. The TV ads
maintain the fun element that is associated with KFC. Their print ads are
vibrant with shades of red detalis some special offers.

e. Conflicts

KFC has been involved with a string of conflicts following its establishment in
India. During the launch of its outlet, there were protests by traditional groups who
were against the western Influence and the concept of “junk-food.” KFC has also
faced a lot of heat from PETA activists, for their cruelty towards animals. The
conflicts worsened and some of the outlets were even shut down for a brief period.

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f. Recommendations

• The most important strategy for KFC would be to develop an in the minds
of the audience that they can cater to both non-vegetarians and
vegetarians.
• They should also confront the various conflicts so that they are not hiding
from their issues.
• They should aim at collaborating with some NGO’s to take part in the
community, so that they can shed the image of “American” brand and
further push their caring image.

References
ICMRI Center for Management Research Case Studies, Case Number: BECG044.
KFC to Expand Presence in India, Food Business Review, 2008
http://www.food-business-review.com/article_news.asp?guid=05430D86-
B0FC-4EC2-89EA-91679B370992.
KFC Takes to TV after 12 years, Neha Karla, Agencyfaqs, 2007.
L Dana, C Vignali, British Food Journal, 1998
http://www.emeraldinsight.com/Insight/ViewContentServlet?Filename=/p
ublished/emeraldfulltextarticle/pdf/0701000201.pdf