KFC Ib
KFC Ib
KFC Ib
Submitted to
Prof.Nirav Parekh
Presented by
Jinal Bhatt-03
Sneha Bhorawat-04
Payal Mehta-22
Aamir Patel-30
Sumit Rohira-37
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
KFC
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
“ 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 sqeur ivcikc e
r e s ta u r a n ts th r o u g h fr ie n d ly se r v ic e , g o o d q u a lity f
a n d c l e a n a t m o s p h” e r e
Goals of KFC
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. 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. 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. 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.
MARKETING STRATEGIES OF
KFC
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
1. PRODUCTION
2. PRICING
3. PROMOTION
4. PLACEMENT
Production:
1. 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.
=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 and one of the most
important thing that they uses media especially the newspapers to promote their
products. They are also creating awareness among the masses about their existing
product range as well they tell us about the future 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
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.
KFC beats its competitors through the revising marketing strategy at every
movement but the main competitor of KFC is Mc Donald
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 recognised in other markets outside India, where the company is
among the leading fast food giants. The brand is recognised 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.
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.
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.
Organisations 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
KFC has some sort of rivalry with Mc Donald’s as where eve KFC has and
outlet at any hot spot McDonald’s starts its operations there KFC has no direct
Share
loss or Customer loss with that as both the companies earning on their own
unique product range taste and their customers may vary according to the taste
preferences. But they do try to attain by giving different deals at different
occasions times.
This Analysis has made us conclude that KFC is not well prepared for a strong
competitor though currently bargain power of customers, suppliers doesn’t bother
KFC much. Rivalry among competitor of KFC is not affecting it any way this we
can say is the Opportunity for KFC as before its rivals or new entrants comes and
threatens, it’s the time KFC may apply strategic Leadership for this purpose and to
fully understand and work in accordance with the opportunity.
Product
a product is anything that can be offered to a market that might satisfy a want or
need.
Competitors:
Attributes:
Price
Price competition
We can compare the price of KFC products with McDonald, Dominoes and
Pizza Hut. If the competitor provides the same product at a lower price then the
organization usually lowers the price of its product too. In the case of KFC,
Fried Chicken is its main selling point and controls a monopoly over the
Pakistan fast food market. It-prices its burgers, French fries and soft drinks.
Penetration Pricing:
When KFC first began to break into the coffee market, they ran a large
marketing campaign in order to gain some market share in the industry. For a
Place
KFC distribution
KFC has only one channel of distribution i.e. direct where the goods are
transferred to the consumer directly. KFC has no middlemen.
Placement of outlets
Due to KFC placing itself close to schools, colleges, cinemas and markets
which are mostly populated by the young and those who are in a hurry, KFC
Promotion
o Advertising
o Sales Promotion
o Public Relations
o Events and Experiences
o Coupons, Discounts and Bundled packages
Sponsorship
• KFC has Competitive advantage in fast food industry because of its quality
and variety of products of chicken.
• Employees are its strength who stands strong with its organization.
• Product is their strength customers come here for our product ignoring the
environment.
• Hospitality standards are our strength, standards are very high they don’t
bear ignorance regarding product.
WEAKNESS:
• Presence of Multinational competitors in the market e.g. McDonalds
(specialized not in chicken serving but in burgers).
• It has compressed hierarchy causing employees to stress and restlessness
caused by no proper work division and less people working more.
• It takes more work from same people if worker is not trained for that job.
OPPORTUNITIES:
• Cheap and easy availability of labor.
• Increase consumption of fast food has increased the market size.
• Consumer prefers “All under one roof” in order to increase their sales
turnover they can increase or add the served items.
• People can easily lend KFC land to operate franchises because of their
goodwill and good market value.
THREATS:
• Entrance of New competitors into the market.
• High political instability/uncertainty.
• Animal diseases like bird flu are a major threat.
These are:
Cleanliness
Hospitality
Accuracy
Maintenance of Facilities
Product Quality
Speed of Service
RECOMENDATIONS
We there for, conclude that KFC should work on the management
issue to build good atmosphere for their employees to work in. They also
make sure that they offer quality food and excellent service.
Today’s generations, most of the people are becoming health conscious
especially the people in the United States. They are prone to hypertension,
which is caused by bad cholesterol not only Americans but all people around
the world, most especially this 21st century.
Nowadays, at early age, younger people are prone to hypertension.
According to the latest data, the youngest person who died was at the age of
16. Due to the fact that most of the foods right now are ready-to-eat, most
are processed foods.