BOUT KFC:

Introduction
Kentucky Fried Chicken (KFC)- one of the most known fast food
chains in the world started in the early 1930's by Kernel Sanders in
the Southern USA as a small franchise operation. Colonel Sanders
has become a well known personality throughout thousands of KFC
restaurants World wide. Quality, service and cleanliness (QSC)
represents the most critical success factors to KFC's global success.
Food, Fun & Festivity, this is what KFC is all about. Leading the
market since its inception, KFC provides the ultimate chicken meals
for the Chicken Loving Nation. Be it Colonel Sanders secret Original
Recipe Chicken or the Hot & Spicy version, every bite brings a YUM
on the face. At KFC we proudly say:
KFC has more than 11,000 restaurants in more than 80 countries
and territories around the World. In 1971, Heublein, Inc. acquired
KFC, soon after; conflicts erupted between the Colonel (which was
working as a public relations and goodwill ambassador) and
Heublein management over quality control issues and restaurant
KFC is part of Yum! Brands, Inc., however in the case of India KFC
builds the relation of Quality Service and cleanliness for Customer.
KFC was acquired by PepsiCo in 1986; it had grown to
approximately 6,600 units in 55 countries and territories. Due to
strategic reasons, in 1997 PepsiCo spun off its restaurant businesses
(Pizza Hut, Taco Bell and KFC) 
Perfecting its secret recipe of 11 herbs and spices in 1939, KFC has
come a long way, with over 10,000 outlets in the world; KFC has
maintained its title, for the last 60 years, of being “The Chicken
Experts”.
Marketing Mix:
Marketing mix consists of 4P’s. It contains everything a firm can do
to influence the demand for its product. The 4P’s are:
PRODUCT
PRICE
PLACE
PROMOTION
These marketing mixes are described in detail as under.
PRODUCT:
Product planning:
Their product is classified as consumer product as it has no
intermediates. It also offers specialty goods. The stock turn over of
KFC is relatively high. The prices and quality of the product is
always compared. Their product includes Goods (Burgers, Chicky
Meals etc) and Services (cleanliness, quick service, parties, and
meetings).

Product Strategy:
It was launched here as an innovative product. KFC has got one
product line but later they introduced products in the same line to
protect their market share. New product ideas are generated from:
Customer services (comments cards)
Gallops survey (mystery shoppers)
They have a Quality Assurance department that decides the new
product innovation. Q.A. department prepares screening of new
ideas and product’s feasibility report. This department does the
technical evaluation (whether it is practical to produce the new
product or not). The products are tested externally by offering trials
to customers by giving them free samples. KFC uses telemarketing,
print media, billboards and most recently televised marketing for
promotion.
KFC adds a new product in its present assortment based on their
competitors, product’s adequate demand, the satisfaction of key
financial criteria and its compatibility with environmental
standards.
Product Line:
KFC product line includes all chicken based products.
Burgers:
The burger category includes the Zinger Burger, Colonel’s Chicken
Burger, Colonel’s Fillet Burger, SUB60 and 80, and Zinger Jr. They
have also introduces a Fish zinger burger.
Chicken Pieces:
The chicken involved the product line with different number of
chicken pieces like 1 piece, 2 pieces, 5 pieces and 10 pieces chicken.

Combos:
The combo includes the different meal as Chicken Meals, Sandwich
Meals and Family Meals.
Desserts & Beverages:
The desserts and beverages offered by KFC are Fruit Salad, Regular
& Large Drink, Regular & Large Mineral Water, Tea, Scoop of Walls
Ice cream and Coffee.
Snacks & Side Orders:
The snacks and side orders served by the KFC are Arabian Rice, 5 &
10 Pieces Hot wings, Dinner Roll, Regular & Large Fries, Hot Shots,
and Corn on the Cob, Hot & Crispy Soup and the Cole Slaw.

Product Mix strategies:

The product mix strategies are in relation to:
Competitors:
KFC has a head-on competition with McDonalds so wherever they
place their products; KFC goes there as well. Locally in Pakistan
KFC face a close competition with the local brands like AFC (Al-Baik
Fried Chicken), Fried Chicks, Dixy Chicks etc which are producing
more or less the same product as KFC.
Attributes:
The brand KFC is so strong that it is the attribute itself.
Quality:
KFC products are based on high quality and prices.

Product Mix Expansion and Contraction:

KFC keeps on modifying their product through line extension and
other methodologies. Line Extension is being done through
introducing new meals offers. The alteration of existing products is
also done and this function is performed by the Quality Assurance
department. The department decides which product should be sold
and when (seasonal products as rice and soups offered in winters).
Functional modification is also done by the Q.A. department to
introduce new recipes. Other than expansion contraction is also
being dealt with as when the new deals or offers are not sold as
expected, Q.A. department contracts the previous offers and
introduces new offers.

Change in Product Positioning:

KFC products were first offered to upper socio-economic group.
Later, introducing discounted and lower price deals, they are now
dealing in masses. So, KFC has traded down. In doing so KFC has
used the same brand name and same high quality product.

Product Branding, Packaging and Labeling:

Brand Name: KFC
Color: Red, white
Symbol: Colonel Harland Sander’s picture and KFC written with it.
Master Brand: The brand itself is so dominant, that it immediately
comes in mind.

KFC Brand:
KFC's brand identity is the logo featuring Colonel Harland Sanders,
one of the best-recognized icons in the world. It is trade marked
registered brand and is distinctive, adaptable to addition to product
line. It suggests something about product. It is legally protected and
registered.
Brand Equity and Strategy:
The brand equity is very high as the value added by brand to the
product effects the product selling. And the Brand strategy followed
is that the KFC is marketing the entire output under products own
brand. Pepsi and Nescafe are the complementary brands associated
with KFC.
Packaging Strategy:
KFC makes its own disposable packaging. If they need promotion
Pepsi contributes in improving the packaging quality. KFC does
family packaging. They use paper material for packaging to avoid
health hazards and environmental pollution.
Labeling:
KFC does brand labeling. Some of its products also have
informational labels such as Halal, Veggie Burgers and Chicky
Meals.

PRICE:
In introduction stage KFC entered the market using market-
skimming strategy. Their products were high price and targeted only
upper class. Gradually they trickle down focusing on the middle
class to penetrate the market. Also KFC follows one price strategy.
Price is determined according to the rates of the raw materials and
policies of the Govt. The political and legal forces often affect the
policies of KFC and eventually results in change of prices that is due
to imposing of taxes.

PLACE:
Distribution Channel:
KFC has only one channel of distribution i.e. direct where the goods
are transferred to the consumer directly. KFC has no middlemen.
Distribution of Consumer Goods and Services:
KFC does distribution of consumer goods directly to the consumer.
It also does distribution of services to the consumer like parking,
sitting, home delivery, etc. KFC does intensive distribution on its
outlets. (All and everything on every outlet).
KFC gets Wheels!
KFC launched its first mobile unit, which took the streets of Karachi
by storm. The mobile unit has been designed to cater to the needs of
those who are on the go, and have little time to stop by at a
restaurant. It also provides a unique convenience of enjoying the
delicious KFC offering anytime, anywhere, thus making fast food
truly fast and convenient.
It intends to further develop its mobile network nationwide through
more such units.

PROMOTION:
The logo features Colonel Harland Sanders that is one of the best
logo in the world has created its name as a standard in the market.
Today the Colonel’s Spirit and heritage are reflected in KFC’s brand
identity.
KFC by its advertisements derives the desire in the customer to
come and enjoy healthy food in their favorite restaurant. They spend
2% of its profits on advertisement. They use print media and most
recently doing televised marketing to promote it products. Their
advertising media involve: Newspapers, Pamphlets, Billboards and
Television. KFC does both the primary demand advertising
(“Become a Chicken Fanatic”) and the selective demand advertising
(e.g. “Zinger Meal”). In its advertising it give informative messages
like “Keep the city Clean”. KFC does institutional advertising to
stimulate demand. When KFC offers new products then it does
product advertising. KFC’s ad’s act as counteracts which means to
drive the customer to KFC i.e. it uses pull advertising strategy. They
also provide wit the key chains, watches, bags, tee-shirts etc. to its
customers with the purchase of different meals as a part of their
promotional activities. They also provide with certain midnight
packages, birthday packages and lot more.
KFC has put big hoardings on the busy areas of Pakistan and have
an effective advertisement campaign on the media in order to
motivate its customers. The colors used in advertising are Red,
White and blue which itself is recognition for the brand.
KFC have joint sale promotions with different companies like HP,
Philips, Value Meals, Pepsi-Cola. And most recently with ARY Gold
digital and World Call Internet services. Also KFC Proud Partners
are Del Monte, Culligan, Shan and Peek Freans (EBM).
PSO had made a scheme in which PSO had given the coupons of
KFC having 10% off. (1 coupon was given after each purchase of 10
liters of petrol)

KFC in its advertisements says;

“Nobody does chicken like KFC”
“We do chicken right”
Hence, focuses on product advertising. KFC does mass selling in
order to reach its target market (as it has trickle down). KFC in its
ads try to convert people to people who eat boring bland fast food
over to KFC.
The message conveyed in the ads is recognition for the brand. KFC
does competitive advertisement with its head on competition with
McDonalds. Regarding this KFC uses Pricing below competition
strategy.
KFC sponsor’s many NGO’s and other social welfare organizations.
They also offer different deals according to the season and
occasions.

KFC as a market leader:

It has covered 80% of the market share in fast food industry KFC
has recognition around the world and has been globally positioned
for many years in Pakistan and to capture the market share in
Pakistan adopts champs philosophy.
Strategic Planning is the process of developing and maintaining a
strategic fit between the organizational goals, capabilities and its
changing marketing opportunities and is done by KFC in a well
defined manner.
Strategic planning sets the stage for the rest of the planning in the
firm. KFC is looking that how much its current strategies are
beneficial for them. Although these are good and profitable but
dynamic changes in environment are requiring identifying the
attractive opportunities.
That is the reason that they are expanding there market size by
focusing on sub urban areas and targeting middle class people by
providing them differentiated products at a fair price. They are
opening their new mobile outlets in there potent ional markets. KFC
is also going to increase its sweet dishes to avail the opportunity
available for them.
KFC in a Growing Market:
The market of KFC is increasing day by day. Being a food market it
is always considered in a growing market because it increases
continually with the population. Their growth is continuously
increasing and if they want to be a leader, they has to develop a
strategy which is predominantly a market expansion strategy and in
this way they will not loose their leadership. It has greatly increased
their market share in Pakistan by following different strategies that
may be regarding their products, prices, placement or promotions.
They have been following the strategies for market expansion by
targeting the new users of the product, describing the new uses of
the product and by showing them more usage of the product.
Describing the New Uses:
In this method, the new uses of the product are being described. As
the motto of “KFC says we do chicken right”, here they claims that
they are the best in using the chicken correctly. In the early days the
chicken was simply used in a simple way for cooking, but KFC has
introduced it in a number of ways and described it to the people by
launching it as a meal as well as in the snacks form. They prove
them with the best cooked chicken with a great taste. Instead of the
chicken pieces, they also serve chicken nuggets, burgers, hot shots,
twisters etc. many new innovative products are being introduced by
KFC that is greatly helpful in attracting the customers and
increasing its market share.
More Usage:
In the advertisement of KFC mostly seen on the bill boards, they
have shown in the new scheme of zinger deal of Rs.290 + 10 and u
get zinger + another chicken burger. And in Ramadan, they
launches the deal of Rs. 500 and it says that all you can eat, it gives
the unlimited zinger burgers and chicken pieces. In this way they
have greatly increased their usage of their products.
New Users:
The people who do not eat KFC should be attracted, that may be by
attracting the non users of the product, non users of the brand or
the non believers. They are done in the following ways.
Non users:
The people who do not eat the fast food, they should be attracted
like KFC has been attracting their customers by providing deals with
Ufone. If the person is an Ufone user and he is not a KFC customer,
they simply receive a message on their hand set and they jus have to
show it on the KFC and counter and get a free meal. It’s a strategy to
attract the non users. In a similar way, distributing deal coupon on
specific purchases, in shopping malls may also be very effective.
Non Users of the Brand:
The non users of KFC can be attracted by describing them the
quality features of the product that they think of trying the product
once. In this case promotional activities play an important role. If
the promotions are done in an effective manner, people would
definitely try the product and also lowering the prices may be very
effective that people may switch from other brands to KFC.
Non Believers:
KFC is quite successful in attracting the non users of the product
and the brand as well, so it is not really necessary to hit the non
believers. This is because they are the most difficult people as it is
very hard to break their social, religious and cultural believes.

SWOT ANALYSIS:
The swot analysis includes the strengths, weaknesses, opportunities
and threats faced by KFC in Pakistan. These all are described in
detail as under:
Strengths:
It is the oldest and finest in Business having a high Goodwill. It does
not have any Core competitor in chicken serving. They have a large
Number of Outlets at prime locations in Pakistan. They serves
variety of items under single menu. They are successful in
maintaining their loyal customers. It has an incentive of being a
Multinational Organization e.g. economies of scale, government
incentives etc. 

Weaknesses:
Its major weakness id the presence of Multinational competitors in
the market e.g. McDonalds(specialized not in chicken serving but in
burgers) and the other weakness faced by KFC is the imported raw
material which usually rise their prime cost.
Opportunities:
The opportunities are the cheap and easy availability of labor. The
increase consumption of fast food has increased the market size of
KFC. As the consumer usually prefer “All under one roof”, therefore,
in order to increase their sales turnover they can increase or add the
served items.
Threats:
The threats faced by KFC are the entrance of many new competitors
into the market that may be local or international brands. And being
in Pakistan, there is high political instability/uncertainty involved.

PEST ANALYSIS:
The Pest Analysis includes the political, economical, socio-culture
and technological factors. These are described in detail as under:

Political Factors:
The political factors includes the government policies as KFC being
a foreign company, but they have to obey the policies of the
Government laid by the government of Pakistan, the country where
the business activities are being carried out. KFC has handled this
situation very tactfully and has obeyed the policies of the
Government as prescribe by the government in order to run this
kind of business. The other major factor is the pricing policies. KFC
maintain & design its price policies keeping in view the income &
income distribution of the people living in the country. That’s why
all the classes are the target market of KFC. And the most important
factor is the political instability. As in Pakistan, there are political
crises faced by the government, these greatly affect the business of
KFC.

Economical Factors:
The economic factors includes the income of the people, KFC is
going to target. Income is an important economical factor of the
KFC. This factor decides which class KFC is going to target. In the
early time of KFC, they were focusing on the upper class but they
after some time changed their strategies and started to target the
mass market by introducing some different kinds of meals and
offers through which we can say that they target the middle & the
upper level as well. The consumption behavior of the people plays
an important role. KFC also estimated the consumption behavior of
the people, their liking and disliking and make decision accordingly.
Payment method is an important factor in the economical factor of
the KFC. They check the behavior of the regarding the payment
methods of the people. They check whether the gives money in the
form of cash or plastic money.

Socio-culture Factors:
The Social/Cultural Factors includes the Social Class, as it is
discussed earlier that KFC target all the class including the upper
class, upper middle and lower middle class etc. Although the culture
of KFC from where they come is entirely different but they have
adopted the Pakistani culture as they had to serve the people living
in Pakistan having entirely different culture from other areas. And it
has not only adopted the Pakistani culture but also the Religion as
well. They offer Halal foods to the customers, which is the symbol
that they adopted the Muslim religion strategies as they had to serve
in the Muslim country, to the Muslim customers.

Technological Factors:
The technological factors include the Pace of change at a fast level. 
Pace of change mean rate of change. KFC has strategy to introduce
new technology whenever they think that it is a time to introduce
new technology. Research & Development is also an important
factor in the Technological factor. KFC always support the work of
research & development in order to introduce the new technology.
Capital formation means stock of machinery. KFC has a stock of
machinery in order to run its business activities. In other words KFC
has a good amount of Capital Formation.

Recommendations:
KFC is a market leader in providing Fried chicken. As KFC, so it is
competing with the prominent market signs like pizza hut,
McDonalds. N its product category, it is doing really well but they
need improvements in their hot menu. They should also make their
menu dynamic, by introducing new meals after certain period of
time. New items should be introduced by varying the taste. They
should also try the local desi taste addressing the desi food lovers,
thus it will help to increase their market share.
The prices of KFC are reasonable as compared with other fast food
restaurants. But as price is always a primary concern for the
customer, therefore, they should adopt certain strategy to attract the
customers. And it can only be done by lowering the prices. It could
be by introducing some discount packages for families, employees,
students or regular customers. The membership card can be used to
provide certain extra value to the customer.
AS far as placement of the products is concerned, it is an important
factor, for a company to increase its market share, by targeting the
right customer. KFC needs to have more outlets, at commercial
areas. It will help to target the actual as well as the potential
customers. Mobile outlets may be an effective addition as well.
KFC has large customer equity, but being a market symbol, a
company should strive for having more actual customers. KFC
should work for having more solid marketing departments. They
should organize and run the proper advertisement campaign. It
would definitely be an incremental factor for their sales. They can
also use the brand promotions. They can set up the promotional
campaigns. All they need is an effective marketing department to
facilitate t he promotional activities.

Conclusion:
KFC is a very strong chain of fast food restaurants with more than
10,000 restaurants all over the world. KFC is providing employment
to 1200 Pakistanis an around 6000 Pakistanis dependent on KFC.
They are paying Rs. 10 million to government of Pakistan as direct
taxes. 95% of its food and packaging material used in KFC produced
in Pakistan locally which sums up to the purchase of 35 million per
month. Each new outlet developed by KFC in Pakistan spends 40
million rupees, that’s a massive amount for this industry.
From all of the above detailed discussion about KFC in Pakistan, it
is really clear that KFC and Pakistan are growing together. KFC is
doing well in Pakistan and keeps following its marketing strategies
as a market leader and segmenting the market into different
variables and increasing their market share. KFC is leading in Fried
Chicken. It gives quality, variety and fresh meals as of its
competitors.