KFC New Product Plan
KFC New Product Plan
KFC New Product Plan
Company
KFC
KFC is the world largest and most well known chicken restaurant
chains with more the 10 thousand locations worldwide in 80
countries. KFC and its franchised employees are more then 200
thousand in all over the world.
John Y Brown and Jerry Messy purchased KFC for USA for
$2 million in 1964 that time KFC become a corporation. After five
years, Colonel buys 1st 100 shares of KFC. In 1986, Pepsi Company
purchased KFC. Pepsi company changed the logo from Kentucky
fried chicken to KFC in 1991 and then in 1992 KFC 1000th restaurant
opened in Japan and in 1994 9000th restaurant in china.
KFC is the part of Tricon. Tricon is the world largest restaurant
group, with in nearly 100 countries around the world. In 1997, KFC
KFC
franchised with Gray Mecanza International and started work in
Pakistan. With in nine years KFC has 26 branches in Pakistan.
Rawalindi branch started work in 1999 and in Islamabad in August
2002 and now in Pakistan; there are 43 branches of KFC.
KFC
KFC specialized in chicken and they says,
KFC
Mission statement
“To be the leader in western style quick service
restaurants through friendly service, good quality
food and clean atmosphere”
Goals of KFC
Build an organization dedicated to excellence.
Consistently deliver superior quality and value in our products
and services.
KFC
History of KFC
Since 1950’s KFC has grown at a remarkable pace from one road side
chain of chicken restaurants in the world. But non of this would have
happened had it not been for the persistence of one man Colonel Harland
D. Sanders. The Colonel was born in 1890 and was only six when his
father died and his mother had to go out to work to support the family.
But it was at the age of 40 as an operator of a service station in Corbin,
Kentucky that the Colonel returned to his love of cooking and began to cook
and serve food to hungry travelers from his own living quarters. Before long
customers were turning up for food alone so he moved across the street to a
during this time that the Colonel devised his recipe for fried chicken using a
secret blend of 11 herbs and spices the same blend of recipe is still used in
KFC all over the world and is called the “Original Recipe”. His restaurant
The Colonel visited small independent restaurants to teach the owners how
to prepare his unique chicken. After the cooking was complete the Colonel
KFC
Coloneling------making sure the customers were happy with the chicken and
Eventually, the business grew larger than the Colonel could handled so he
longer with us, his philosophies of hard work and excellent service we
Values of KFC
Focus all our resources to our restaurants operation because that is
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.
KFC
Commit ourselves to the highest standard to the personal and
Encourage new and innovative ideas because these are the key to our
competitive growth.
organization.
Work as a team.
PHILOSOPHY OF KFC
The CHAMPS Program
Champs stands for our belief that the most important thing each of us
provide the best food and best experience for the best value.
KFC
C leanliness
H ospitality
A ccuracy
M aintenance of Facilities
P roduct Quality
S peed of Service
Situational Analysis
Current Products
Kentucky fried chicken
Zinger burger
Col. Fillet burger
Macho’s burger
Col. Chicken burger
Cheese
Nuggets
Hot wings
Fries
Corn on the cob
Arabian rice
Dinner rolls
Hot and crispy soup
KFC
Soft Drink
Mineral water
Espresso
Cappuccino
Milo
Frothe
Moccacino
Tea
Distribution
They provide free home deliveries for some specific cities. They open their
outlets in those places in the cities where people can buy products easily and
without difficulties. They also introduce mobile units for delivery of their
products
Major cities covered in Pakistan
Lahore
Islamabad
Rawalpindi
Faisalabad
Sialkot
Multan
Peshawar
Karachi
Hyderabad
Promotions
In Pakistan KFC not advertise there products too much because people KFC due
to its reputation in other countries. They promote their products through special
packages like Ramadan packages, mid night package. They promote there
products through billboard, pamphlets and through other promotion strategies
KFC
Services
KFC offered free home delivery service at specific branches in specifics cities.
They take at 30 min for delivery and the minimum delivery order should Rs.200.
They also provided services to celebrate the birthdays of kids at there home or in
KFC restaurants. Now recently KFC also provide services of mobile unit of KFC
Current target market
Segmentation
KFC has divided the market of Pakistan into distinct groups of customers with
different demands, tastes and behavior who require separate products or
marketing mix.
In Pakistan the niche marketing is being used for particular classes of people.
KFC
They have made segments of the market on the following bases.
Demographical
Behavior
Geographical
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
KFC
price. Following are the different possible segments in this regard.
Taste conscious
Quality conscious
Class conscious
GEOGRAPHICAL BASIS
On the basis of the geographical factor we have divided our market in three main
segments.
Urban areas
Sub urban areas
Profile criteria:
1. Gender: KFC is for each gender both male and female.
2. Income: Everyone can use the KFCservice upper and middle class .
3. Age: age limitation for using this product above 15
4. Occupation: By profession also everyone can use this product means
businessman student workers and other peoples.
5. Education: It has no need more education that why the person who know
something can easily enjoy with this product.
6. Family life cycle: KFC is suitable in every stage of life like single married
couple and also those who have children can use this product.
7. Lifestyle: This product is used in every level of social class like upper,
middle class.
8. Attitude: When the customers once buy this product after that they can use
the product continuously.
9. Purchasing decision: Often KFC changes the purchasing decision of
customers because of its good attributes.
KFC
10. Geographic region: Geographically KFC is used in every part of the country
as well as all over the world.
Product positioning
Customer perceive this product as a unique product that other are not giving .
Attitudes
The attitudes of the public is very good people like our this new product like
others.
Purchasing process:
Many people come from home to eat this , and some make impulse decision as
they saw it .
Market Coverage Strategy
KFC will be using differentiated market coverage strategy. It means that
different marketing mix will be used for different age groups .
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
Income of the people of urban areas is normally high and they can afford
KFC
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
Competitive analysis
Competitors
You cannot enjoy the business without competitors. No organization can afford
to ignore there competitors. It is very important for a marketing managers to
monitor the activities of there competitors, what they are doing? KFC adopted
such sort of strategy that there is no competitor for spicy chicken, which is made
by KFC.
KFC beats its competitors through the revising marketing strategy at every
movement but the main competitor of KFC are
Mc Donald
COMPETITIVE ADVANTAGE
KFC McDonalds
Spicy Products Burger and French Fries
Pakistani people like spicy products
instead of boiled food
KFC
community
Its Staff consist of simple Graduates
Local Staff and Highly Qualified and give them training
because local staff can better deal
with the customers
McDonalds Uses Top To Bottom
KFC uses Top to Bottom and Approach.
Bottom to Top Approach in
Management.
No such Case.
KFC is Co branding with Walls
Strengths and weakness of competitor
KFC
KFC compete its competitors through marketing 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
KFC
Pakistani people like spicy foods, therefore KFC also provide spicy foods in
Pakistan. KFC open its branches in advance cities of Pakistan like Lahore,
Karachi, and Islamabad/Rawalpindi etc. In these cities mostly come out with
their family because KFC mainly focus family.
TECHNOLOGICAL ELEMENTS
New techniques which affect the quality of products and services in better
way. Technology is very important to compete their competitors. Organizations
have an eye on their competitors and also new techniques which their
competitors used. Today the world going fast and market is globalize, new
techniques comes in production and services departments.
Although KFC and Mc Donald’s has same cooking machinery. KFC has
efficient delivery system, they provide home delivery so quickly. KFC purchase
machinery from Hanney Penny company, they are main suppliers of machinery
through out the world.
ECONOMIC ELEMENTS
In Pakistan there is a mixed economy so private organization easily
perform their tasks within any given economic system of course, organization
are influenced by a variety of economic features over which they have little
independent control, such as inflation, interest rates and recession
Another important input to the enterprise is the nature of government
fiscal and policies. KFC paid tax properly.
ECONOMIC ELEMENT
It is the system of producing, distributing and consuming wealth. There are
two types of economy.
KFC
(b) Socialist Economy:
In this system of economy the government controls the
whole system of production and the economic activity is coordinated by the
plan.
KFC
As the market share of twister in Pakistan is high and the market growth of twister is high
that’s why twister lies in stars in product analysis.
Strengths
KFC secret recipe of 11 herbs and species has made it the leader in chicken
for the last 50 years. KFC sells three recipe, original recipe, extra crispy,
tender roast
KFC adopted very different market concept then other companies that
help KFC to be strong in market
KFC is the only best fast food restaurant in Pakistan with great recipes
KFC
Due to its chicken products KFC has no competitors in the market
KFC has a hold at the market and through customer satisfaction they have
higher profits rates
KFC has good approach to media
They have different strategies to handle different problems
They always choose a very good location in the busy area of city
They have well educated staff and they all are very skilled and handle all
the situation very well and satisfy there customers
As we know KFC is the multinational company and they have reserves of
finance and pay many taxes to government
Weaknesses
KFC sweet dishes portion is not as better as should be
They only focus higher income level people
They have much higher price as compare to the other fast food restaurants
They bring new products to the market quickly and its innovation new
products that some time become harm full for the companies
Opportunities
They have the opportunity to expand their sweet products
They can open more branches to get maximum market share
They can open branches in northern areas of Pakistan
They can open temporary outlets in peak season in the hill stations like
murree, naran, kaghan etc.
They can capture more customer by decreasing the price of their products
To market their products they have to do more social projects for the
KFC
country and due to that they attract more customers
Threats
KFC
KFC
Web site like KFC cruelty become the big threat for KFC market
Some international events badly affected the market of KFC in
Pakistan like IRAQ and AFGHAN war and we know KFC is American
based. Therefore, it creates a great impact on the performance of KFC.
During the war the sale of sale KFC decrease more then 25%
Current political situation is a big threat for KFC
Some uncertain situation like bomb blasts is also the big threat for KFC
Diseases like bird flu is the big threat for KFC
People wrong perception created by some our religious people or
molvies that the chicken products of KFC are not Hilal that effect the
KFC market very much
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 possess a western culture because some of the Pakistani people are
KFC
KFC are moving from Divisional Level to the District level by opening
Target market
KFC and McDonalds will be using differentiated market coverage strategy. It
means that different marketing mix will be used for different age groups.
After evaluation of various segments, KFC and McDonalds have decided to
target the market of Urban and Sub-urban Areas of Pakistan.
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 are more quality conscious than the people of
Rural Areas.
In Urban Area there lived people from every walk of life and profit
KFC
the number of customers are more in Urban Areas
Product
Their all products are different from every product and the packaging and other
products feature are different form other they change there products by
introducing new products but their main product the Kentucky fried chicken is
the same
Price
The price is not affordable by all persons in Pakistan. Due to its large setup the
price selecting are very challenging for the new product of KFC
Place
They provide free home deliveries for some specific cities. They open their
outlets in those places in the cities where people can buy products easily and
without difficulties. They also introduce mobile units for delivery of their
products
Promotions
In Pakistan KFC not advertise there products too much because people KFC due
to its reputation in other countries. They promote their products through special
packages like Ramadan packages, mid night package. They promote there
products through billboard, pamphlets and through other promotion strategies.
Product Issues
KFC
General description:
Features:
Quality Control Over Ingredients
cooked products.
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 Pakistan producing chicken and chicken products.
Free from diseases and bacteria, drug residues and other contaminants.
KFC
Quality Assurance Certificate
Director General ( Research ) has issued quality assurance certificate for the
Branding
This research measured and compared the brand identity of Kentucky Fried
Chicken (KFC) in Pakistan. 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.
Promotion Issues
Sales promotion
For the sales pormotion KFC introduced their goods like watches ,
keychain, e.t.c to the customers
KFC
Advertisment
Press advertising
KFC
Magazines
Regular double page ad for Twister launched by KFC
Hoardings
In addition to regular hoardings, temporary hoardings for 2-3 months have also
been taken.
Television (‘’25’’ TVC)
Cable advertising on world call Karachi & Lahore on mogambo gold &
mogambo plus in-house movie channels. 52 spots daily (26 on each
channel)
Cable advertising through biz ventures Islamabad/Rawalpindi on two in-house
movie channels. 40 spot daily (20 per channel)
Distribution Issues
Major cities covered in Pakistan outlets available
Lahore
Islamabad
KFC
Rawalpindi
Faisalabad
Sialkot
Multan
Peshawar
Karachi
Hyderabad
11 - United
Bakery
Building, F-6/2,
Super
Market,
Islamabad.
For Delivery:
Ph: 111-532-532
Chicky Fun Area
Rawalpindi
Plot 2732,
Singapore
Plaza,Arab
Square,
Muree Road
Rawalpindi.
For Delivery:
Ph: 111-532-532
Chicky Fun Area
Pindi II
Satellite Town,
Pindi.
For Delivery:
Ph: 111-532-532
Chicky Fun Area
Pricing Issues
PRICING POLICY FOR PRODUCT OF TWISTER
Budget analysis
KFC
Sales Forecast.
Estimated sales should be around Rs:200000 to 3,00,0000
KFC
Security deposit 20,00000
20,00,0000 20,00,0000