International Marketing

Postgraduate Diploma in
Marketing
M. H. Afzal Nazim FGS / PGDMkt / 2016 / 16

Content
Company Introduction
SWOT Analysis for KFC India
PESTEL Analysis
Political, Cultural, Economic, Regulatory and Ecological Issues
Recommendations and solutions KFC

Company Profile
Type:

Wholly owned subsidiary

Industry:

Fast food

Genre:

Southern fried chicken

Founded:

1930 (original) (North Corbin, Kentucky)

1952 (franchise) (South Salt Lake, Utah)

Founder(s):

Harland Sanders

Headquarters:

Louisville, Kentucky, U.S.

Key people:

Roger Eaton, President

Harvey R. Brownlea, COO
James O'Reilly, VP for Marketing

Products:

Fried chicken, grilled chicken, etc

Revenue:

$520.3 million

Employees:

455000

Parent:

Yum! Brands

Website:

http://www.kfc.com

Introduction to
KFC is an international fast food chain in many countries
Most of the countries operate as under franchise agreements
The best service providing environment among quick service restaurant
chains available in the world
KFC serves more than 12 million customers each day
KFC serves 115 countries and territories around the world
It operates more than 17,000 restaurants in the US and internationally
KFC has been ranked number 201 on the Fortune 500 list, with revenues
exceeding $13 billion in 2012
Africa 70 Outlets

Malaysia 579 Outlets

Sri Lanka 26 Outlets

China - 4,563 Outlets

India 361 Outlets

Indonesia 466 Outlets

Japan 1200 Outlets

United Kingdom 784 Outlets

Australia 600 Outlets

New Zealand 100 Outlets

SWOT Analysis
- Strengths Worldwide recognized brand
Trusted quality, known as one of the best in the world
Repeat purchases are above the industryWeakness
standards
es
Can delight customers who loves to eat chicken (Product depth)
No direct competition on the core product with the same taste
Threats
Opportunit
Successful distribution of outlets
ies
Strategically selected locations
Successful brand merging for cross selling options

- Strengths Financial strength and stability

Successfully managed value chain. i.e. Long term contract with suppliers
Strong boned with suppliers
Well trained, well managed employees

Weakness
es

Capable of diversifying into new segments of food products within a very

short period

Opportunit
ies

Threats

SWOT Analysis
- Weaknesses Not wide coverage / limited delivery radius - India
Poor market penetration strategies Middle & Low class
Poor adaptability on customer changingWeakness
needs / local need
es
Mainly related for chicken related products / narrow product width
High infrastructure cost for open up new branches
Threats
Opportunit
Need more sales revenue to reach the break-even point
ies

SWOT Analysis
- Weaknesses Poor Human Resources Management / High employee turnover
Few options available for health concern customers
Raw materials for the core products to be
depend on third party suppliers
Weakness
Mainly dependent only on one core product

es

Can not change the enhancing elements according to the geographical

Threats
Opportunit
locations. i.e. Using the air conditioner in Kodaikanal, Huti, Shimla,
ies
Kashmir, etc

SWOT Analysis
- Opportunity Economic growth may help the future business expansion
Opportunity on low cost labour by using part time employees
Ability to open mini outlets. Universities,Weakness
institutes, cricket matches, etc
Ability for cross selling.

es

Expansion in distribution. i.e. Increasing the number of drive-through

Threats
Opportunit
ies

SWOT Analysis
- Opportunity Can use cost effective advertising methods for the target group by TTL
Prod cut development - Offer high calorie nutrition foods
Outdoor catering. Eg: Kids Birthday Parties,
etc
Weakness
Growing trends for fast food

es

Social and cultural changes favoring for hygienically certified fast foods
Threats
Opportunit
ies

SWOT Analysis
- Threats Changing the food habits may influence the customers to deviate from KFC
offerings
Diseases like bird flu, viral diseases are the big threat for KFC
Difficult to convince customers on perceivedWeakness
pricing strategies as competitors can
offer similar products for low price

es

(Net value = perceived benefits to customer all perceived outlays)

Growing trend for health conscious food. Eg: Oil free food, Low sugar

Threats
Growing head on competition
with major players
in the market. i.e. - Mc Chicken
Opportunit
ies
and Crispy Chicken Burger by
McDonalds
Intensive competition among existing players
Viral marketing can destroy the brand image

Environment and Market Analysis

PESTEL Analysis
Political
Impact - Moderate

Economic
Impact - High

Social
Impact - High

Cost effective communication methods on digital marketing platform

Technological
Impact - High

Efficiency & productivity is key component on selecting the technology

Used to preserved the food values

Ecology
Impact - Moderate

Legal
Impact - High

HACCP Certification Hazard analysis for critical control point

FSSC Food safety security certification
Food authority approval
Medical screening Test. Eg: Communicable diseases,
ISO 22000 Food safety management system
Factory Ordinance Working hours, leave entitlement, safety and
security, over time payments, etc..
Food Grade Certificate Supplier should certify for adding ingredients

Michael Porters 5 Force Theory Analysis

Force

Impact

Bargaining
power of
suppliers

Moderate

Substitutes

Very High

Threat Of New
Very High
Entry

Remarks
Very few formal suppliers, informal suppliers are
plenty as the company adhere to international
standards company purchases only from formal
suppliers whom could meet the international
standards
Have to depend on imported raw materials
Availability
Alternatives
products
for
the
competitive price range
Similar products in the industry are with better
distribution
Substitutes are well positioned in the market
Customized
options
are
available
with
competitors
Any competitor can substitute the products in a
very short period of time
Tax free concession for local entrepreneurship
Technical support for local entrepreneurship
Availability of New innovative ways enter to the
market

Michael Porters 5 Force Theory Analysis

Force

Buyers
Barging Power

Competitor
Rivalry
(Industry)

Impact

Very
High

Very
High

Remarks

Customer expectation on perceived value

Better choices and variety of food items available

in the industry on the same standards

Difficult to
attitudes

Financial strength and stability

change

the

customers

negative

Competition among the Internationally reputed

brands

Wide range of product availability with a better

value for money

Environment and Market Analysis

The Industry Profile
Restaurants have been around in some form for most of human civilization
but they usually catered to travelers.
As far back as ancient Greece and Rome, inns and taverns generally
served food to people who had a reason to be away FROM HOME.
McDonald's and White Castle are treated as the first fast-food chains where
McDonald's was the first restaurant to use the assembly-line system
According to the National Restaurant Association, American sales of fast
food totaled $163.5 billion in 2005.
The fast food industry is dominated by a handful of powerful corporations
who are determined to aggressively drive production costs to the minimum.
The companies that have applied this formula most successfully are
McDonald's, Burger King and Yum (Pizza Hut, Taco Bell, KFC).
The major fast food chains in India are,

Environment and Market Analysis

Fast Food Industry Trends
The technology focus for restaurants has made big steps toward mobile
phone platforms / mobile apps. Eg: uses IPADs for ordering etc
New developments can be seen in ordering, marketing, loyalty programs,
and payment. Eg: Touch screen ordering machines (POS), area base SMS
system, etc
Developers are increasingly combining these applications into a single
solution, adding an additional layer of convenience that is important to
limited-service restaurants.
The trend more towards to vegetarians and vegans, who are not only
seeking healthier foods, but also have animal rights on their minds.
Kids today are much more adventuresome when it comes to eating, and
more willing to try new things.
Home delivery service now become a new trend due to busy life style.

Environment and Market Analysis

- Analysis of Current and Potential Competitors -

Scope Competitors (F& B) of KFC

Space Competitors
(Fast Food) of KFC

CHAMPS Method / Slogan

To provide good services they have a philosophy of CHAMPS Program.
CHAMPS stand for the six universal areas of customer expectation
common to all cultures and all restaurants concepts.

Cleanliness

Hospitality

Accuracy

Maintenance of Facilities

Product Quality

Speed of Service

About PETA
People for Ethical Treatment of Animals (PETA)
PETA India, based in Mumbai, was launched in January 2000. PETA India
operates under the simple principle that animals are not ours to eat, wear,
experiment on or use for entertainment, while educating policymakers and
the public about animal abuse and promoting an understanding of the
right of all animals to be treated with respect.
PETA Indias investigative work, public education efforts, research, animal
rescues, legislative work, special events, celebrity involvement and
national media coverage have resulted in countless improvements to the
quality of life for animals and have saved countless animals lives.

Recommendations and solutions for

problems at KFC
Carry out a series of workshops for all crew members, cashiers and assistant
restaurant managers to educate and advocate them about the importance of
Cruelty against Animals
Recommended to follow KFC's Poultry Welfare Guidelines and Animal Welfare
Legislation
Resignation of KFCs Animal Welfare Advisors Rejoining
Expansion Vegan food range in KFC Localization. Chapathi, Thosa, etc
More concern on Chicken welfare issues - effects of breeding programmes, which
produce chickens with upper bodies too large to be supported by their legs or
organs, overcrowding, infrequent litter changing, routine mutilation and food and
water deprivation, proper slaughter techniques with many chickens
being scalded for feather removal while still alive.

Recommendations and solutions for

problems at KFC
Celebrity Support

Questions?

Thank You