PROJECT REPORT

ON
Kentucky Fried
Chicken
(KFC)
(Product Mix, Promotional Mix, Distribution Strategy,
Pricing Strategy, Competitive Clustering, BCG Matrix,
Product Life Cycle)
Subject Marketing Management 2

Submitted to Dr. M.A. Sanjeev

Submitted by
Nitish Bhardwaj (14609048)
Neha Goomber (14609044)
Anirudh Jain (14609008)
Kritika Agarwal (14609037)
Akash Nelson (14609006)

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ACKNOWLEDGEMENT

We would sincerely like to express our profound gratitude towards professor M A Sanjeev for
his exemplary guidance and encouragement throughout the course. The guidance and
knowledge shared by him shall carry us long way in the journey of life.

THANK YOU SIR

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1 About Kentucky Fried Chicken (KFC)

1.1 Mission statement:
To sell food in a fast, friendly environment that appeals to pride conscious, health minded
consumers
1.2 Vision statement
Our passion, as a restaurant company, is to put a YUM on people's faces around the world,
satisfying customers every time they eat our food and doing it better than any other restaurant
company
1.3 KFC (the name was originally an initials for Kentucky Fried Chicken) is a fast food
restaurant chain
that
specializes
in fried
chicken and
is
headquartered
in Louisville, Kentucky, in the United States. It is the world's second largest restaurant chain
(as measured by sales) after McDonald's, with 18,875 outlets in 118 countries and territories
as of December 2013. The company is a subsidiary of Yum! Brands, a restaurant company
that also owns the Pizza Hut and Taco chains.
KFC's original product is pressure fried chicken pieces, seasoned with Sanders' recipe of 11
herbs and spices. The constituents of the recipe represent a notable trade secret. Larger
portions of fried chicken are served in a cardboard "bucket," which has become a well-known
feature of the chain since it was first introduced by franchisee Pete Harman in 1957. Since the
early 1990s, KFC has expanded its menu to offer other chicken products such as chicken
fillet burgers and wraps, as well as salads and side dishes, such as French fries and coleslaw,
desserts, and soft drinks, the latter often supplied by PepsiCo. KFC is known for
the slogan "finger licking' good," which has since been replaced by "Nobody does chicken
like KFC" and "So good."
1.4 Operations in India: In December 2013, there were 361 KFC outlets in India. As well as
the standard KFC offerings, the chain sells a chickpea burger, a paneer burger, hot wings with
chilli lemon sprinkles and other country-specific production in India
In 2014, KFC launched the "So Veg, So Good" menu as part of an India-specific
promotional strategy focused on enhancing their vegetarian range. Dhruv Kaul,
marketing director of KFC India, stated, "The So Veg, So Good menu launch does not
mean that we are moving away from our core chicken offerings. It enhances and
strengthens our existing vegetarian range and helps broaden the brand's relevance in a
diverse country such as India
KFC was founded by Harland Sanders, an entrepreneur who began selling fried chicken from
his roadside restaurant in Corbin, Kentucky, during the Great Depression.
Colonel Sanders was a key component of KFC advertising until his death in 1980. Despite his
death, Sanders remains a key symbol of the company; an "international symbol of hospitality
KFC's major competitors include Subway, McDonald's and Burger King.

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2 Product Mix of KFC (Product line, width & depth)

2.1 Burgers
2.1.1 Snacker
2.1.1.1 Chicken Snacker

A delicious chunk of chicken served in a soft sesame bun, with salad and Thousand Island
sauce.
2.1.2 Rockin
2.1.2.1 Veg Rockin' Burger

Crunchy, veg patty, topped with delicious thousand island sauce and iceberg lettuce, served in
a soft warm bun.
2.1.2.2 Chicken Rockin' Burger

Juicy, crispy chicken fillet, topped with spicy, creamy 3 pepper mayo and iceberg lettuce,
served in a soft warm bun.
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2.1.3 Krisper
2.1.3.1 Potato Krisper

A Crispy potato patty, topped with tangy sauce and served up in a soft, warm bun.
2.1.4 Zinger
2.1.4.1 Chicken Zinger

Juicy, crispy chicken fillet, topped with iceberg lettuce & delicious mayo, served in a soft
sesame bun.
2.1.4.2 Paneer Zinger

A unique double layered Paneer patty with a spicy creamy sauce, covered with fresh lettuce
in a soft warm bun.

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2.2 CHICKEN
2.2.1 (2 pc) Hot 'N' Crispy

Treat your taste buds to spicy, crunchy, juicy chicken that sets your taste buds alight.
2.2.2 (4 pc) Hot 'N' Crispy

Treat your taste buds to spicy, crunchy, juicy chicken that sets your taste buds alight.
2.2.3 (2 pc) Fiery Grilled

Marinated and seasoned with a blend of herbs and spices, and then grilled to perfection.

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2.2.4 (4 pc) Fiery Grilled

Marinated and seasoned with a blend of herbs and spices, and then grilled to perfection.
2.2.5 (8 pc) Hot 'N' Crispy

Treat your taste buds to spicy, crunchy, juicy chicken that sets your taste buds alight.
2.2.6 (8 Pc) Fiery Grilled

Marinated and seasoned with a blend of herbs and spices, and then grilled to perfection.

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2.2.7 Dips Bucket

12 crispy chicken strips with 4 tasty dips.

2.2.8 Flaming Crunch

Crispy juicy chicken with a blazing hot sprinkle

3.1 Beverages (Krushers)

3.1.1 Kold Koffee

An exquisite blend of rich coffee, dairy and a hint of chocolate.

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3.1.2 KFC Krushers Lime Soda

The all-time favorite thirst quencher.

3.1.3Virgin Mojito

Juicy lemon wedges will tease you. Fresh mint leaves will tempt you.
3.1.4 Green Mango Jelly

This perfect summer companion is loaded with green mango syrup.

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3.1.5 Choco Lash

It's crushed. It's a liquid, well almost. And its an overload for a snack!
3.1.6 Choco peanut Bolt

Chocolate cookies and peanut butter topped with sinful chocolate syrup blended.
3.1.7 Mango Burst

It's mango. And it's much more because it has creamy yogurt and icy dairy slush too.

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3.1.8 Strawberry Smoothie

Crunchy strawberries with creamy yogurt and icy dairy slush.

3.1.9 Iced Kappucino

Indulgent and thick, the Iced Kappucino is a strong cold coffee topped with delicious.

4.1 TOASTED WRAPS

4.1.1 Chicken Twister

Chicken rocks in a hot new role! Taste the freshness of tomatoes, lettuce and pepper mayo.

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4.1.2Veg Twister

Crispy Veggies covered in a creamy sauce and crunchy onions, wrapped in a warm toasted
tortilla.

5.1 Snacks
5.1.1 Chicken Snacks
5.1.1.1 Hot Wings 2 pc

KFC's No. 1 fully masaaledar snack! Chicken wings smeared with a lip smacking lemon
chilli flavor
5.1.1.2 Hot Wings 5 pc

KFC's No. 1 fully masaaledar snack! Chicken wings smeared with a lip smacking lemon
chilli flavor.

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5.1.1.3 Popcorn Chicken

Tender, juicy pieces of Hot and Crispy Chicken with extreme sprinkle, that you can pop nonstop.
5.1.1.4 Boneless Strips 3 pc

Tender, crispy and juicy boneless strips of Chicken. A unique treat!

5.1.1.5 Veg Strips 6 pc

6 pcs of golden, crispy mixed veg fingers.

5.1.1.6 Hot & Saucy Chicken

Two/Four pieces of juicy, crispy chicken in a yummy chilli garlic sauce with chilli flakes and
bits of garlic and parsley! Its chicken snacking with a twist.

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5.1.2 French Fries

5.1.2.1 Large Fries

Crispy, golden fries.

5.1.2.1 Medium Fries

Crispy, golden fries.

5.1.2.3 Regular Fries

Crispy, golden fries.

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6.1 Meals
6.1.1 Box Meals
6.1.1.1 KFC Rock Box Veg

Crunchy, veg patty, topped with delicious thousand island sauce and iceberg lettuce, served in
a soft warm bun with Veg Strips, Fries & Pepsi.
6.1.1.2 KFC Rock Box Chicken

Juicy, crispy chicken fillet, topped with spicy, creamy 3 pepper mayo and iceberg lettuce,
served in a soft warm bun with a piece of Chicken, Fries & Pepsi.

6.1.2 Group Meal

An amazing meal put together for your friends and family. Dig into tender, juicy Boneless
strips and the famous Hot & Crispy Chicken with fries to munch on and Pepsi to quench all
your thirst.

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7.1 RICE BOWLZ

7.1.1 KFC Rice Bowlz Chicken

A complete meal in a bowl, loaded with KFC's exotic rice, flavorful gravy, with a topping of
Chicken Popcorn.
7.1.2 KFC Rice Bowlz Veg

A complete meal in a bowl, loaded with KFC's exotic rice, flavorful gravy, with a topping of
Veg. Strips.

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8.1 DESERTS
8.1.1 Brownie Sundae

Treat your senses to a delicious hot brownie, topped with vanilla ice-cream and chocolate
sauce.
8.1.2 (2 Pc) Soft Serves

Dig into exquisite vanilla ice cream served in a crisp cone. Enjoy 2 Soft Serves with a special
someone.
8.1.3 Kream Ball Strawberry

A fabulous dessert that looks good and tastes even better. Kreamball is a delightful
combination.

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8.1.4 Kream Ball Mango

A fabulous dessert that 8.1.4looks good and tastes even better. Kreamball is a delightful
combination.
8.1.5 Kream Ball Chocolate

A fabulous dessert that looks good and tastes even better. Kreamball is a delightful
combination.

Thus the product mix of the KFC constitutes the product width that segregates it into
various range of products like Burgers Veg & Chicken, Snacks, Meals, Desserts &
beverages. These product categories individually subdivided in to various product that
constitute the product line for e.g. the product category of burgers of product mix of
KFC constitute various kinds of burgers like zinger, rockin burgers which are further
categorised into veg and chicken. Thus the above represents the combination of product
width and the product line that product mix of KFC constitutes.

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3 Pricing Strategy used by KFC

3.1 Price Strategies
The price strategies used by KFC was price skimming. Price skimming means put their
products prices above the market price. The main objective of doing this is to maximize
profit rather than market share and to cover the cost of production. They use the strategy of
pricing above; they believe that their products are quality than other competitor so they push
up their price, because in people assumption, they feel that the higher the price of the product,
the quality of the product will higher
3.2 Price Competition
The competition of KFC obviously is various fast food restaurants like MacDonald. KFC and
MacDonald offers almost the same types of fast food like fried chicken, burger, soft drink,
French fries and else. Normally competitor will reduce their price when other competitor did
the same thing. The main product of KFC is fried chicken. Because KFC got its own secret
receipt in frying the chicken, thus it can put higher price to the chicken. The price of other
product is more or less same as McDonald.
3.3 Cost base pricing
KFC places their product price in different view. They adopt the cost base price strategy. The
price of their product already included government taxes, service taxes, and exercise duties.
So, they product will be set higher price which suit the target market and the standard of their
product and to cover their cost such as variable cost
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.

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4 BCG Matrix analysis for KFC Products

Prioritize (Star)

Divest (??????)

(Zinger Paneer & Chicken)

(Rice Bowl Veg & Chicken)

High
Market
Share
Low

High

Invest (Cash cow)

Kill (Dog)

(Chicken Bucket)

(Snacker Patty & Chicken)

Market
Growth

Low

4.1 Cash Cow Here Cash cow for the KFC is its one of its oldest product the chicken
bucket. As it is yielding KFC the maximum profits and the required low cost in investments.
Thus the company tends to invest more in this. The future scope for the chicken bucket is low
as it is one of the oldest and unique product of the KFC.The Strategy to harvest the Chicken
bucket more as it is one of the core product of KFC.
4.2 Star As per the BCG Matrix here Paneer & Chicken Zinger Burger represented as the
star as it is one of the product that has high future prospective and currently have very high
sales. Thus KFC tend to invest more in this despite the cost is high. The Strategy used by
KFC is to grow and invest more in the KFC Zinger.
4.3 Question Mark The rice bowls of the KFC is considered as to be the question mark
because despite being the recent product the profits earned through the product is low and the
cost incurred is high. Thus it depends upon the KFC to divest from the rice bowls or to bring
new changes in the product to avoid or prevent it being the dog. The Strategy used by KFC
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for Rice Bowls depends upon how it is performing, if it is not working well then it will divest
from it otherwise if performing well then will invest in it.
4.4 Dog Snacker being the one of the starting product of KFC in India is now not much
consumed and thus making KFC bear the losses and incurring high cost. The sales for the
product is almost nil. Thus snacker fall in the category of Dog thus it is appropriate for the
KFC to kill the product. The strategy used by KFC to avest or close the production of
Snacker.

5 Competitive Clustering of KFC

Desserts

Low Price

Moderate Price

High Price

Kream ball (KFC)

2 Soft serves (KFC)

Soft Serve (McDonalds)

Brownie
(KFC)

Mc
Swirls
(McDonalds)
Mc
Flurry
(McDonalds)
Fudge
Sundae
(Burger King)
Dutch Apple Pie
(Burger King)

Vanilla soft serve (Burger King)

Combo Box Meals(KFC)

Meals
Happy Meals (McDonalds)

Sundae

Group Meal(KFC)
Extra Value Meals
(McDonalds)

Kids & Value Meals (Burger

King)
Make
it
Meals
(Burger King)
Beverages

Krushers
(KFC)
Ice
(McDonalds)

Mojito Krushers Cold coffee

(KFC)
Tea Caf
Mocha
(McDonalds)

Snapple & Ice Tea Cold

(Subway)
(subway)

Coffee

Mello
Yello
& Smooth Roast Coffee
Frozen Coke (Burger (Burger King)
King)

Chicken
bucket

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Hot N Crispy (KFC)

Fiery Grills (KFC)

Non spicy Potato crisper (KFC)

veg
McAloo Tikki (McDonalds)
burgers
Aloo Patty Sub (Subway)

Veg Rockin (KFC)

McVeggie
(McDonalds)

Veggie Delight &

Morning Star Veggie (Burger Veggie Patty Sub
King)
(Subway)
Crispy Veg (Burger
King)
Non spicy Chicken snacker (KFC)
Chicken
Chicken McGrills (McDonalds)
burgers
Chicken Roasted Sub (Subway)
Original Chicken (Burger King)

Chicken
(KFC)

Rockin

McChicken
(McDonalds)
Chicken Ham Sub
(Subway)
Crispy
Chicken
(Burger King)

Spicy
Chicken
burgers

Chicken
(KFC)

Zinger

McSpicy
chicken
(McDonalds)
Chicken Tikka &
Tandoori
Subs
(Subway)
Chicken & Mutton
Whopper
(Burger
King)

Spicy veg
burgers

Paneer Zinger (KFC)

McSpicy
Paneer
(McDonalds)
Veggie Paneer Tikka
Sub (Subway)
Veg
Whopper
(Burger King)

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Veg
Wraps

Veg Pizza McPuff (McDonalds) Chicken

(KFC)

Twister

BigSpicy
Paneer
(McDonalds)
Chicken
wraps

Veg
Snacks

Veg Twister (KFC)

BigSpicy
Chicken
(McDonalds)
French fries (KFC)
McFries (McDonalds)
French fries (Burger King)

Chicken
Snacks

Hot wings (KFC)

McMuffins (McDonalds)

Veg Rice
(KFC)

bowlz

Onion Rings & Hash

Browns
(Burger
King)
Chicken rice bowlz Boneless
(KFC)
(KFC)

strips

Chicken McNuggets
(McDonalds)

Chicken Strips (Burger King)

Chicken
Nuggets
(Burger King)
Low Price

Moderate Price

High Price

5.1 Competitive Analysis of KFC & identification of Direct Competitor

The conclusion that is drawn out of the competitive cluster of the KFC with respect to various
competitors in different product categories are:
Subway is giving competition to KFC only in the category of all kind of burgers in
every price range.
Whereas Burger King & McDonalds giving stiff competition to KFC in almost every
product category in every price range only except the chicken bucket category which
is untouched by both Burger King & McDonalds & also Burger King does not give
competition to the KFC in the category of Veg & Chicken wraps.
Thus it can be concluded from the competitive cluster analysis that both McDonalds
& Burger King can be considered as Direct Competitors of KFC among which
McDonalds has higher degree of directness to KFC in terms of competition in
every product and price range.

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6 Product Life Cycle of KFC

The period of time over which an item s developed , brought to market and eventually
removed from market. First the idea goes through R&D stage. If the idea is feasible it is
produced, marketed and rolled out. Assuming the product becomes a success its production
will grow until product becomes widely available. Eventually, demand for the product will
decline and it will become obsolete. Every product has its life cycle whether it is successful
or not in the market. This cycle has four stages given below in the diagram.
Now discussing the KFC product line (keeping in mind BCG matrix) according to their life
cycle:

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6.1 Introduction:
Hot Wings (chicken)
Rice bowl (veg or chicken)
6.2 Growth:
Fiery Grills (chicken bucket)
Zinger (veg & chicken)
6.3 Maturity:
Hot N Spice (chicken bucket)
Twister (veg & chicken)
Krushers
Rockin (veg & chicken)
6.4 Decline:
Potato Crisper (veg)
Snacker (veg & chicken)

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7 Promotion Mix of KFC

In 2014, KFC launched the "So Veg, So Good" menu as part of an India-specific
promotional strategy focused on enhancing their vegetarian range. Dhruv Kaul,
marketing director of KFC India, stated, "The So Veg, So Good menu launch does not
mean that we are moving away from our core chicken offerings. It enhances and
strengthens our existing vegetarian range and helps broaden the brand's relevance in a
diverse country such as India
7.1 Advertising
KFC will advertise their new product in radio, television, billboards, flyers, and sponsorship,
voucher and contest. KFC regularly advertised Colonel Sanders licking his fingers and
talking to the viewer about his secret recipe in 1960. Although Sanders death in 1980, KFC
still continue and used him in branding and advertising. Reminder advertising is also used by
KFC. In any way related to KFC we often can saw a phase, that is finger licking good. This
phase functions is to wake up KFC lover and reminded them their feeling and tasty at their
eating last time. Thus, this can attract them to come consume in KFC again. In India where
chicken lovers are plenty abound these ads featuring normal people connect instantly and
create a rush at their outlets. Using the following methods KFC spreads its message of finger
licking good chicken.
7.2 Sales Promotion
KFC also offer voucher which voucher holder will receive a certain amount percentage of
discount in certain products. Example, KFC Jom Jimat Afternoon Cravers have a 10% off on
3 layer tea or Fizzberry Freeze. In certain time, our house will receive some catalog which is
from KFC. The catalog always listed the price of new product, the information of that
product, venue available, and something else.
7.3 Sponsorship
Sponsorship is another tool to strengthen image and well known of organization. KFC had
become the sponsor of the Australian Cricket Team and the colonel logo can be seen on their
uniforms throughout the matches. Once people see the logo, they will think about KFC.
7.4 Contest
KFC is currently organizing the Colonels Doublicious Double Contest. All participant
need to do is creating a likeness to Colonels Sanders. Thus, KFC is slowly promote their
product because once they creating Colonels Sanders, they will automatically think about
fried chicken of KFC.

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8 Distribution Channels of KFC

A large part of the KFC value-chain is distribution
(1) Efficiently getting the product (2) in good condition to where (3) it is convenient for the
consumer to buy it (4) in a setting that is consistent with the brands image.
Distribution (also known as the place variable in the marketing mix, or the 4 Ps) involves
getting the product from the manufacturer to the ultimate consumer. Distribution is often a
much underestimated factor in marketing. Many marketers fall for the trap that if you make a
better product, consumers will buy it. The problem is that retailers may not be willing to
devote shelf-space to new products. Retailers would often rather use that shelf-space for
existing products have that proven records of selling.
Although many firms advertise that they save the consumer money by selling direct and
eliminating the middleman, this is a dubious claim. The truth is that intermediaries, such as
retailers and wholesalers, tend to add efficiency because they can do specialized tasks better
than the consumer or the manufacturer. Because wholesalers and retailers exist, the
consumer can buy one pen at a time in a store located conveniently rather than having to
order it from a distant factory. Thus, distributors add efficiency by:
Breaking bulkthe consumer can buy small quantities at a time. Consumers can buy
a dozen eggs and a quart of milk at one time. Channels move large quantities of foods
from farmers, processors, and manufacturers, taking advantages of economies of
scale. Distributing. The consumers can buy at a neighbourhood store, which in turn
can buy from a regional warehouse.
Carrying inventory
Financing

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Channel structures vary somewhat by the nature of the product. A large restaurant chain
might buy ketchup directly from the manufacturer. The simplest structure is the farmer
selling directly to consumers. It is, however, usually inconvenient for the consumer to travel
to the farm and for the farmer to sell small quantities to each of many buyers, but
occasionally farmers like to supplement their sales by selling at farmers markets. Consumers
may benefit from fresher products and possibly lower prices, but most of the value here is
probably entertainment. Large buyers might be able to buy directly from the farmere.g.,
McDonalds could buy cows directly in very large quantities and then sell burgers to retail
customers.

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In most cases, however, a wholesaler is involved. This wholesaler buys things from several
different manufacturers and delivers those to retailers. A wholesaler may, for example, serve
many different retail stores with many brands of cereal, spices, and other food ingredients.
The retailer than can buy many different products from the same source, increasing
convenience. The wholesaler can buy thousands of cases of Morton salt from the
manufacturer and just a few cases at a time to each retailer. The wholesaler will add a margin
for this service, but this margin is usually less than what the manufacturer and/or retailer
would have to spend in dealing directly with each other.

Manufacturers of different kinds of products have different interests with respect to the
availability of their products. For convenience products such as soft drinks, it is essential that
your product be available widely. Chances are that if a store does not have a consumers
preferred brand of soft drinks, the consumer will settle for another brand rather than taking
the trouble to go to another store. Occasionally, however, manufacturers will prefer selective
distribution since they prefer to have their products available only in upscale stores.
Parallel distribution structures refer to the fact that products may reach consumers in different
ways. Most products flow through the traditional manufacturer --> retailer --> consumer
channel. Certain large chains may, however, demand to buy directly from the manufacturer
since they believe they can provide the distribution services at a lower cost themselves. In
turn, of course, they want lower prices, which may anger the traditional retailers who feel that
this represents unfair competition.

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9 References
http://www.kfc.co.in/menuwow.php
http://www.mcdonaldsindia.com/menu.html
http://www.bk.com/menu
http://www.subway.co.in/page_menu_index.html
http://www.ukessays.com/essays/business/kfc-vision-mission-and-principles-worldwidebusiness-essay.php

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