MAHATMA GANDHI MISSION’S

COLLEGE OF COMMERCE
MGM EDUCATIONAL CAMPUS, SECTOR-18, KAMOTHE, NAVI MUMBAI
– 410209

PROJECT REPORT ON

“CUSTOMER SATISFACTION OF KFC”

SUBMITTED TO

MGM’S COLLEGE OF COMMERCE, NAVI MUMBAI

BY

NAQEEB DAKHWE

ROLL NO: 36

BATCH: 2009-2012

IN PARTIAL FULFILLMENT OF

BACHELOR OF MANAGEMENT STUDIES (BMS),

UNIVERSITY OF MUMBAI
 DECLARATION

I, MR.NAQEEB DAKHWE, hereby declare that this project report is

the record of authentic work carried out by me during the period from 15th
April 2011 to 30th May 2011 and has not been submitted to any other
University or Institute for the award of any degree / diploma etc.

Naqeeb Dakhwe

Date:
 CERTIFICATE
This is to certify that Mr. Naqeeb Dakhwe of MGM’s College of Commerce
has successfully completed the project work titled Customer Satisfaction of
KFC in partial fulfillment of requirement for the completion BMS as
prescribed by the University of Mumbai.

This project report is the record of authentic work carried out by him during
the period from 15th April 2011 to 30th May 2011. He has worked under my
guidance.

Deepti Arora

Project Guide (Internal)

Date:

Counter signed by

Principal: Dr. Ritu Bhattacharyya

Date:
 ACKNOWLEDGEMENT

I express my sincere gratitude towards Dr. Ritu Bhattacharyya, Principal,

MGM’s College of Commerce, Kamothe, for her support.

I am thankful to my project guide (internal) Prof. Deepti Arora for her support
which helped me at all stages of project completion and giving an opportunity
to undertake this project and helping me in successful completion of the project.

I am also thankful to my family members and friends for their co-operation.

Naqeeb Dakhwe

Date:
Contents
EXECUTIVE SUMMARY .......................................................................................................... 1

1. INTRODUCTION..................................................................................................................... 2

1.1 Problem statement ............................................................................................................ 3

1.2 .Research questions .......................................................................................................... 3

1.3 Rationale of the study ....................................................................................................... 3

1.4 Research methodology ..................................................................................................... 3

1.5 Structure of the report ...................................................................................................... 4

2. NDUSTRY OVERVIEW ......................................................................................................... 5

2.1 INTRODUCTION OF KFC ............................................................................................. 6

2.2 HISTORY OF KFC .......................................................................................................... 7

2.3. KFC INDIA ..................................................................................................................... 9

2.4. TARGET MARKET OF KFC ...................................................................................... 10

2.4.1.Hectic lifestyle of individuals .................................................................................. 10

2.4.2. Looking for change ................................................................................................. 10

2.4.3. Quality conscious ................................................................................................... 10

2.4.4. Placement of outlets................................................................................................ 10

2.5. KFC STRATEGIES ...................................................................................................... 12

3. EMPERICAL FINDINGS ..................................................................................................... 13

3.1 DATA SOURCE ........................................................................................................... 13

3.1.1 Secondary sources ....................................................................................................... 13

3.1.2.Primary sources ........................................................................................................... 13

3.2. POPULATION .......................................................................................................... 13

3.2. Limitations……………………………………………………………………………………..30

4. FINDINGS: .............................................................................................................................. 31

4.1. RECOMMENDATIONS .............................................................................................. 32

4.2. CONCLUSION……………………………………………………………………………......33
EXECUTIVE SUMMARY

In this final report of research methods and techniques, this project report begins with an
introduction. Then a brief introduction of the fast food industry. Statistical analysis of the
gathered data and finding of this project is also the part of the report. In the end I tried to
make some recommendations regarding KFC customer.

In order to accomplish this task, initially research proposal report had been gathered. I
applied the whole research process on to it, starting from the very first step of setting the
objectives for my research to the results obtained. I went through a lot of steps. After setting
the objectives I have selected a sample. After selecting a sample from which primary data and
the required information were to be extracted. The research instrument used for this purpose
was questionnaire; questionnaires remained the focus of this research. Whole data has den
analyzed statistically conducted a total survey of 50 questionnaires. In the end the results in
the form of conclusion was drawn and finally recommendations were made according to that
analysis.

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INTRODUCTION

The project is about to analyze the customer satisfaction level among the KFC customers.
There is lot of mouths in this world and we want to please them all, body and mind to release
the latent energy within the customers.

Due to the fast growing environment the trends are changing continuously and people are
trying to follow the western culture rapidly. Use of fast food is also a part of this culture.
With the passage of time usage of fast food is increasing in India male and female both are
using this food now fast food has its own impact on life of common people.

MEANING OF CUSTOMER SATISFICATION

Customer satisfaction is a business term, is a measure of how products and services

supplied by a company meet or surpass customer expectation. It is seen as a key
performance indicator within business and part of the four prospective of balanced
score card.

IN a competitive market place were businesses compete for customers, customer

satisfaction is seen as a key differentiator and increasingly has become a key element
of business strategy customer satisfaction drives successful private sector business.
High performing businesses have developed principles and strategies for achieving
customer satisfaction. This paper presents a framework or set of ideas for using
customer satisfaction principles and strategies to improve the quality responsiveness,
and possibility of public sector privately provided services in vulnerable communities.
Customer satisfaction is the customer’s response to the evaluation of the perceived
discrepancy between prior expectation and the actual performance of the product as perceived
after its consumption.

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Problem statement

KFC Corporation, based in Louisville, Kentucky is the most famous chicken restaurant,
claiming that they are providing the best fast food. In my research I will try to find out that
either customer are satisfied with the KFC or not.

Research questions

As a starting point of carrying out this research study, a research question “how effective
KFC strategies are in order to achieve high customer satisfaction level of KFC customers” is
formulated.

Rationale of the study

Purpose of this research is to measure the customer satisfaction level of KFC, Navi Mumbai.
The study will help us in determining what facilities, value added services; food items can be
introduced in order to improve the customers’ satisfaction. This research will, in other words
find out the expectations of KFC customers about the facilities and the food items provided.

Research objectives:-

 What kind of fast food people usually likes?

 How many different fast food companies in the market?
 Which fast food they prefer?
 What age group usually prefers fast food?

Research methodology

Depending upon the time frame and available resources I have use the convenience sampling
method. The secondary data was collected from the internet. The primary data would be
collected from questionnaire filled by the respondents. After collecting the data SPSS data
software has been used to calculate the percentages frequencies and make graphs. Microsoft
Word XP is used for report writing.

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Structure of the report

This report includes four chapters. The first chapter is based on the introduction of my
project, which covers problem statement of my research, research objectives, what is our
research methodology, then comes the 2nd chapter which starts with the literature review. In it
we discuss about the history, strategies, introduction and target market of KFC. This chapter
basically includes theoretical part of our research. In 4th chapter empirical findings and in 5th
chapter we have made recommendations, findings and conclusions.

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INDUSTRY OVERVIEW

Fast food is the term given to food that can be prepared and served very quickly. While any
meal with low preparation time can be considered to be the fast food, typically the term refers
to food sold in restaurant or store with low quality preparation and served to the customer in a
packaged form for takeout/take away. The term fast food was recognized in dictionary by
Merriam Webster in 1951.

The capital requirements to start a fast food restaurant are relatively small, particularly in
areas with non-existent or poorly enforced health codes. small; individually owned fast food
restaurants have become common throughout the world. Fast food restaurants with higher sit
in ratios, where customers can sit and have their orders brought to them are known as fast
casual restaurants.

KFC specialized in chicken and they say,

“No body’s cooking like KFC today and we are the chicken experts”
“There is no competitor for spicy chicken which is made by KFC”

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INTRODUCTION OF KFC

KFC Corporation, or KFC, founded and also known as Kentucky Fried Chicken is a chain
of fast food restaurants based in Louisville, Kentucky. KFC is a brand and operating segment,
called a "concept", of Yum! Brands since 1997 when that company was spun off from
PepsiCo as Tricon Global Restaurants Inc. The restaurants are known as Poulet Frit Kentucky
or PFK in the province of Quebec in Canada. In France, however, the chain is known as
KFC.

KFC primarily sells chicken in form of pieces, wraps, salads and sandwiches. While its
primary focus is fried chicken, KFC also offers a line of roasted chicken products, side dishes
and desserts. Outside North America, KFC offers beef based products such as hamburgers or
kebabs, pork based products such as ribs and other regional fare.
The company was founded as Kentucky Fried Chicken by Colonel Harland Sanders in1952,
though the idea of KFC's fried chicken actually goes back to 1930. The company adopted the
abbreviated form of its name in 1991. Starting in April 2007, the company began using its
original name, Kentucky Fried Chicken, for its signage, packaging and advertisements in the
United States as part of a new corporate re-branding program; newer and remodeled
restaurants will have the new logo and name while older stores will continue to use the 1980s
signage. Additionally, Yum! Continues to use the abbreviated name freely in its advertising.

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HISTORY OF KFC

The Kentucky Fried Chicken® was founded by Colonel Harland Sanders (born on September
9, 1890) at the age of sixty-five. KFC® is currently one of the largest businesses of the
global food service industry and is widely known around the world as the face of Colonel
Sanders.
Every year, over a billion KFC® chicken dinners are served featuring the
Colonel’s “finger lick in’ good” special recipe. The Colonel has spread his industry currently
to more than eighty countries and territories globally.

At the age of forty, Colonel Sanders began cooking for travelers in his service station located
in Corbin, KY. However, rather than coming in for service for their cars, hundreds of people
began coming to the Colonel’s station specifically for his food. So he expanded his new up-
and-coming business by moving across the street to a hotel and restaurant that seated one
hundred and forty-two people. While cooking here, Colonel Sanders perfected his secret
blend of eleven herbs and spices for his special recipe that is still used today.

With his special cooking techniques, Sanders’ station became famous and he was recognized
for his amazing cuisine by the Governor at the time, Ruby Laffoon in 1935 when he was
made a Kentucky Colonel; hence the name Colonel Sanders. In 1939, Colonel Sanders’
restaurant won the top spot on Duncan Hines’ “Adventures in Good Eating.”

After his amazing start-up in 1952, the Colonel devoted himself for the rest of his life to his
chicken franchising business. To spread his famous recipe, he spanned the country in his car
from his small business in Kentucky to cook his chicken for restaurant owners and their
employees. If his subjects loved it like his other customers had, the Colonel made a deal with
the establishment, saying that they would pay him a nickel for each chicken they sold in their
restaurant. So many restaurants agreed that by 1964, the Colonel had over six hundred
franchised outlets in the United States and Canada for his chicken. Also in 1964, Colonel

7
Sanders decided to sell his interest in the United States Company for small change (only $2
million) to a small fraction of investors, such as John Y. Brown Jr., the governor
ofKentucky from 1980 to 1984. However, Colonel Sanders continued to be the public
spokesman for KFC® and in 1976, he was named the world’s second-most identifiable
celebrity by an independent survey.

With this new group of investors undertaking the Corporation, KFC® expanded and matured
quickly. The Corporation was listed on the New York Stock Exchange on January 16, 1969,
only three years after it had gone public on March 17, 1966. Then, after the KFC
Corporation® was acquired by Heublein Inc. on July 8, 1971 for $285 million, the company
grew to an enormous three thousand and five hundred franchised and company-owned
restaurants world-wide.

Subsequently, Heublein Inc. was next acquired by R.J. Reynolds Industries, Inc. (currently
RJR Nabisco, Inc.) in 1982, making Kentucky Fried Chicken® a subsidiary of
Reynolds. After that, in October of 1986, PepsiCo, Inc. made a purchase of $840 million
from RJR Nabisco, Inc.

However, in January of 1997, PepsiCo, Inc. revealed that it would be making KFC® and its
other small quick service restaurants – Taco Bell and Pizza Hut – into an independent
restaurant company known as Tricon Global Restaurants, Inc. The company also stated that
it would change the corporation’s name to Yum! Brands, Inc. in May of 2002. This
corporation, which currently owns A&W All-American Food Restaurants, KFC, Long John
Silvers, Pizza Hut and Taco Bell restaurants, is the world's principal restaurant corporation in
terms of system units, having a stifling thirty-two thousand and five hundred units in over one
hundred countries and territories.

Sadly, after traveling two hundred fifty thousand miles every year visiting his restaurants
around the globe, Colonel Sanders died of leukemia at the age of ninety in 1980.

Interestingly enough, this enormous, global corporation all started with simply a sixty-five-
year-old gentleman and a chicken.

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KFC INDIA

KFC is the world’s No.1 Chicken QSR and has industry leading stature across many
countries like UK, Australia, South Africa, China, USA, Malaysia and many more. 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 its 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 Veg Zinger and Veggie Snacker. In India, KFC is growing rapidly and today has
presence in 21 cities with close to 107 restaurants.

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TARGET MARKET OF KFC

As the outlets of KFC are in posh area and prices are too high (overhead expenses –rent, air
conditioning, employees), so KFC targets upper and middle classes. Target market depends
upon the size and growth rate of population, company resources and structural attractiveness
of market segment.

 Hectic lifestyle of individuals

Persons who have hectic lifestyle & spend more time at work, KFC provides them
less stress about waiting for food.
 Looking for change
People who always look for change KFC provide them huge range of fast food.
 Quality conscious
People who are more conscious about the quality of food, KFC provide them quality
food.
 Placement of outlets
Due to KFC placing itself close to schools, colleges, markets and cinemas which are
mostly populated by the young and those who are in hurry, KFC enjoys a large
number of footfalls every day. In addition, they also have outlets close to non-
vegetarians (mostly muslin populated areas)

Mission Statement
“Recognition: we find reasons to celebrate the achievement of others and have fun doing it,
“is right up there with “Customer Focus” and “Belief in People”. Recognition is everybody’s
responsibility,” says Chicago restaurant manager Adonis Chapel. He explains since KFC
started6encouraging informal recognition, things have really changed. “You keep employees
longer, they are happier, they work better for you.”

Vision Statement
"The Association of Kentucky Fried Chicken Franchisees, Inc. is united to protect, promote
and advance the mutual interests of all member franchisees and the Kentucky Fried Chicken
system."

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Aims and Objectives

 Build an organization dedicated to excellence.

 Consistently deliver superior quality and value in our products and services.
 Maintain a commitment to innovation for continuous improvement and grow, striving
always to be the leader in the market place changes.
 Generate consistently superior financial returns and benefits our owner and
employees

To establish in India KFC’s position as leading WQSR (Western Quick Service Restaurant)
chain, serving good value by providing innovative chicken-based products and consistently,
providing a pleasant dining experience, with fast friendly, in a clean and convenient location.
At all times we must be dedicated to providing excellent and delighting customers.
The aims and objectives of KFC are not only to sell chicken to make money and make a
profit, they are to expand as a business whether that’s to be a worldwide business or just to
open up a few more restaurants around the country to provide a better service/faster
service/better customer service to beat competitors/rivals such as McDonalds, Burger King,
etc.

Values of KFC
 Focus all our resources to our restaurants operation because that is where we serve our
customers.
 Reward and respect the contributions of each individual at KFC.
 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.

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KFC STRATEGIES

Given the competitive nature of fast foods, KFC Push Strategy (pushing through
advertisements, promotions etc) to help them create

 Awareness
Awareness is establishing among masses about new promotional schemes on various
items of KFC via banners and billboards. Customers are informed about different
price ranges, deals and their associated timings via advertisements even on home
delivery services by providing deal brochures along with the food supplied; their
customers also advertise various deals and promotional schemes.
 Be different
KFC has customized products with local touch e.g. soups and spices are added with
the regional trends
 Sound attractive
KFC sounds attractive not only in food, but also provides interesting and innovative
toys with family deals. It also provides attraction to visiting kids by providing play
area for the kids.KFC also provides internet facility for their customers.
 Pricing strategy
KFC globally enters into market using market skimming. Their products are priced
high and target the middle to lower class people to penetrate to both sides of market.
 Cost Based Strategy
KFC price their product keeping different points in view. They adopt the cost based
price strategy. Pricing of the product includes the govt .tax and excise duty and then
comes the final stage of determine the price of the product. The products are bit high
priced according the market segment and it is also comparable to the standard of their
product. In the cost based method we include the variable and fixed cost.

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EMPERICAL FINDINGS

In this chapter we include what is our research design, sample size and what is our
population. After this I include results of our research work than findings and customer
suggestions as well.

DATA SOURCE

We used both primary and secondary sources of data

Secondary sources

 Internet

Primary sources

 Questionnaire

POPULATION

In our research convenience sampling method is being used to select our research sample, the
target respondent has been selected using random sampling. Target audience has been
selected mainly from KFC’s Vashi branch. (Inorbit mall)

Sampling method

Convenience sampling will be used for drawing sample.

Sample size

Sample size 50 is selected in order to conduct this research.

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Results of the study

1. Do you like fast food?

Fast Food

3%

Yes
NO

97%

Interpretation:
Fast food is known as a quick service restaurant. In daily routine tough life people
will like to buy fast food to preserve their time. As per my research 97% respondents
of our sample size like fast food & 3% do not like fast food.

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2. Which kind of fast food you buy more often?

Preferred Fast Food

6%

Burger
34%
Pizza
Sandwich
60%

Interpretation:
Every person has its own tastes and preferences. Our research shows that 60% of the
respondents prefer to buy burgers, 34% like pizzas and only 6% prefer to buy
sandwiches.

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3. How often do you visit KFC?

Visit

26%
34%

Month
Fortnightly
Week

40%

Interpretation:
According to the survey results 34% of the respondents visit once in a month, 40%
fortnightly, 26% of the respondents visit KFC once in a week.

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4. Do you find KFC product prices reasonable?

Reasonable Product Prices

43%
Yes

NO
57%

Interpretation:
It shows that 43% respondents think that the prices of KFC’s products are reasonable
while the other 57% says prices are not reasonable.

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5. Do you recommend your friends and family to visit KFC?

Recommend Friends

14%

YES

NO

86%

Interpretation:
86% respondents say that they will recommend others to visit KFC and 14% will not
recommend.

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6. Do you think KFC provides the best fast food?

Provides Best fast Food

30%

Agree
Disagree

70%

Interpretation:
Survey says that 70% respondents are agreeing that KFC provides the best food while
30% respondents disagree with it.

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7. Do you think KFC provides neat and clean environment?

Clean Environment

15%

Agree
Disagree

85%

Interpretation:
85% respondents agreed upon the statement that KFC provides neat and clean
environment while 15% of the respondents disagree that KFC provides neat and clean
environment.

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8. Do you think waiting time in KFC is minimum to take the deal?

Time

28%

Yes
No

72%

Interpretation:
72% respondents agree that waiting time in KFC is minimum to take the deal while
28% disagree.

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9. Do you think KFC’s staff takes care of customers?

Staff

17%

Yes
No

83%

Interpretation:
83% respondents agree that KFC’s staff take care of their customers while 27%
respondents disagree.

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10. Do you think KFC provides hygienic food to its customers?

Hygenic Food

6%

Yes
No

94%

Interpretation:
94% respondents agree that KFC provides hygienic food to its customers while 6%
respondents disagree with this statement.

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11. On a scale of 1 to 4, how would you rate KFC’s food? (1 – excellent ,4 – poor)

KFC Food

4%

14%

Excellent
Good

53% Average
Poor
29%

Interpretation :
53% of the respondents like KFC food, 29% say its good, 14% finds it’s up to mark
rest 4 % are not satisfied with the food they provide.

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12. What would you prefer the most?

Prefer

20%
25%

KFC's Wings
KFC's Burger
Crushers

55%

Interpretation:
According to the survey results 25% respondents prefer KFC’s Wings , 55% go with
KFC’s Burger and 20% prefer crushers.

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13. Do you think KFC is a convenient place with respect to time taken to reach there?

Conveninent Place

15%

Yes
No

85%

Interpretation:
According to results 85% respondents agree with the statement that KFC is a
convenient place while 25% disagree with it.

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14. Does it provide a better parking facility?

Parking Facility

14%

Yes
No

86%

Interpretation:
86% respondents agree that KFC’s provide better parking facility while 14%
respondents disagree with the statement.

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15. Gender

Gender

46% Males
females
54%

Interpretation:

54% are males who visit KFC and 46% are females.

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16. Age

Age

11%

37%
Under 20
21 to 34
35 to 44

52%

Interpretation:
Here are 21 to 34 years of people visit KFC are 52%.35 to 44 years old people visit
KFC are 11% and under 20 years visits KFC are 37%.

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Limitations

 The survey considers the views of only certain no. of people so it cannot be concluded
as the opinion of all citizens about KFC as a whole.
 Though it is a market research survey, it helps in only calculating the figures in
statistical form.
 It does not give us exact mathematical figures overall.
 This survey is all about KFC’s service personally and it does not deal with its social
and cultural behavior.
 As KFC is a fast food centre, old age peoples’ attraction towards it is very less and
KFC itself is not playing any specific role or scheme in attracting kids and the old age
people.
 E.g.: MC’DONALD offers a combo pack for kids in which they include an attractive
toy.
 After completing the survey, we get the scale of percentage for every question of the
survey but it is calculated only by the survey with few people and not for whole
location where KFC is located so views may vary from person to person.
 Conclusion is assumed for all the people in the city where KFC is at.
 KFC offers variety of items on non veg food but there is no certain variety in veg to
choose from.
 Cost of its product is reasonable for middle class and upper middle class of society
but it is quite costly for lower middle class of society.
 Though it is hygienic food, it is not advisable daily as it is fast food and spicy.

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FINDINGS:

From the whole research I have got the following major findings.

 Likeness of fast food is ether among the people & almost one third of the population.
 On average males visit KFC more often than females.
 People do agree that price is economical.
 As per findings people having age between 21to 34 have more interest to visit KFC.
 According to my survey people like the taste & quality KFC’s chicken burger.
 As per the finding I conclude that people like burgers more often than other fast food
like sandwiches, pizza etc.
 As per the findings people like the ingredients of KFC.
 As per the findings I conclude that KFC is providing neat and clean environment.
 As per the findings I conclude that KFC provides good hygienic food.
 As per the findings I conclude that people prefer to visit KFC occasionally (like
monthly, weekly, fortnight etc) as compared to other fast foods.

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RECOMMENDATIONS

 KFC provide low fat menu.

 KFC should give a place for birthday parties.
 KFC management to take care of quality of service and make sure you have
proper equipment to serve the orders.
 Some products of KFC like twister, family feast, hotshots, wings are good not
excellent.KFC should increase the best value of taste for all these products.
 You should stop coming up with “new products” if you don’t have the capacity
and resources to offer those.
 KFC should further uphold its quality standards, deliver superior customer service
and create values.

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 CONCLUSION

Customer satisfaction is addressed as a strategic business development tool. Customer

satisfaction does have a positive effect on an organization's profitability, satisfied customers
form the foundation of any successful business as customer satisfaction leads to repeat
purchase, brand loyalty, and positive word of mouth. Satisfied customers are most likely to
share their experiences with other people to the order of perhaps five or six people. Equally
well, dissatisfied customers are more likely to tell another ten people of their unfortunate
experience. The objective is to study the customer satisfaction regarding KFC. For this
purpose research work has been carried out.

The data was collected through questionnaire, discussion and document studies. The data
collected were analyzed based on the determined objectives. The analysis helps the
researcher to come out with findings and suggestions. If suggestions are implemented in
future by KFC it would certainly satisfy the customers to the large extent and it will also help
KFC to float in the fast food industry.

The researcher would conclude that there is a strong customer satisfaction towards the food
provided by KFC.Some recommendations are provided in order to image them the, leaders in
the market.

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Bibliography

1. www.google.com
2. www.kfcresearchandmarkets.com
3. www.kfc.co.in
4. www.scribd.com
5. www.yum.com

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