PROJECT REPORT

On

Kentucky fried chicken

M.com IV Sem – Marketing Management

(Session 2020-21)

THE BHOPAL SCHOOL OF SOCIAL SCIENCES

Submitted to

Submitted by

Dr. Amrita Sahu Drakhsha Ali

Associate Professor Roll no. 19103017

Department of Commerce

CERTIFICATE FROM THE PROJECT GUIDE

This is to certify that the Project Report titled “Marketing Analysis of Kentucky fried chicken”
is a bonafide work of DRAKHSHA ALI enrolment number R170190280580
undertaken for the partial fulfillment of Masters in Commerce (M. Com) degree of Barkatullah
University under my guidance. This project work is original and has not been submitted earlier
for the award of any degree or diploma of any other University or Institution.

Signature of the Guide

Dr. Amrita Sahu

Associate Professor

Department of Commerce,

BSSS, Bhopal
 DECLARATION

I DRAKHSHA ALI daughter of ZAFAR ALI certify that the project report entitled on
“Marketing analysis of KFC”, marketing analysis report on KFC, prepared by me is my
personal and is authentic work under the guidance of Dr. Amrita Sahu, Associate Professor,
Department of Commerce.

Date: 15/06/2021

Place: BHOPAL

Signature of the Student

Name: DRAKHSHA ALI

Class: M.COM (IV SEMESTER)

Roll Number: 19103017
Kentucky fried chicken

Kfc is an American fast food restaurant chain headquartered in louisville, Kentucky that
specializes in fried chicken. It is the world’s second – largest restaurant chain (as measured by
sales) after McDonal’s, with 22,621 locations globally in 150 countries as of December 2019.
The chain is a subsidiary of yum ! Brands, a restaurant company that also owns the pizza hut,
taco bell and wingstreet chains.
History of kfc

Kfc was founded by colonel Harland sanders, an entrepreneur who began selling fried chicken
from his roadside restaurant in corbin, Kentucky during the great Depression. Sanders
identified the potential of the restaurant franchising concept and the first Kentucky fried
chicken franchise opened in Utah in 1952. KFC popularized chicken in the fast – food industry,
diversifying the market by challenging the established dominance of the hamburger. By
branding himself as “colonel sanders” , Harland became a prominent figure of American
cultural history and his image remains widely used in KFC advertising to this day.

Kfc ‘s original product is pressure fried chicken pieces, seasoned with sanders’s recipe of 11
herbs and spices. The constituents of fried chicken are served in a cardboard “bucket”, which
has become of feature of the chain since it was first introduced by franchisee pete Harman in
1957. Since the early 1990, KFC has expanded its menu to offer other chicken products such
as chicken fillet sandwiches and wraps, as well as side dishes such as French fries and coleslaw,
desserts and soft drinks: the latter often supplied by Pepsico. KFC is known for its slogan” It’s
finger lickin’Good!” ,”Nobody does chicken like kFC and “so good”.

Branches of kfc

The list of countries with KFC franchises As of 2021, there are more than 25,000 kFC outlests
in 145 countries and territories in the world. The first KFC franchise opened in the united states
in 1952, and in Canada a year later. The first overseas franchise was established in the United
Kingdom in 1965. Large number of Caribbean and developed Western markets entered by the
early 1970s. This was followed by expansion throughout the Middle easy and developed Asian
markets from the mid-1970s and into the 1980s. China was entered in 1987. Expansions were
made into most of Europe and South America in the early 1990s. The most recent area of
expansion is Arica, where the company is targeting the continent’s growing middle class

The major market for KFC include China (6078 store)I, the United States (4062 store), Japan
(1131 store ) south Africa (914 stores), the United Kingdom (909 store), Russia (772 stores),
Malaysia ( 718 stores), Thailand (717 Stores), Australia (653 stores), and Canada (639 Stores).

The global operations are overseen by Yum international, which is headquartered in Louisville,
Kentucky. Yum! Typically grant a master franchise to local operator, or take a stake in a joint
benture between such a company and itself . In 11 countries, yum! International managers KFC
directly, including china, Russia and India. Worldwide, major franchise holders range from
large local conglomerates such as jardine Matheson and Doosan group, to companies
specifically established to run restaurants franchises, such as Amrest. In Japan, Malaysia and
Indonesia, the major franchise holders are publicly listed companies. On the other hand, in
smaller markets such as some Caribbean island, the franchises may be o single individual.

Product details

Chicken

Deals

Burgers

Rice bowl

Snacks

Beverages

Fried chicken , hamburgers chicken, sandwiches wraps, French fries, soft drinks , milkshakes
, salads , desserts , breakfast

Kfc ,s major products include chicken sandwiches(including the zinger and the Tower); wraps
(Twister and Boxmasters) and a variety of finger foods, including crispy chicken strips and hot
wings . Popcorn chicken, which consists of bite sized pieces of fried chicken, is one of the most
widely available KFC products. In some location, such as in Australia, Belarus, Malaysia and
south Africa, chicken nuggets are also sold

MCcormick & company is KFC largest supplier of sauces, seasonings and marinades and is a
long term partner in new product development

Launches in 2009, the krusher/krushem range of frozen beverage containing “ real bits” such
as kt kat, Oreo and strawberry shortcake is available in over 2000 outlates. Egg custard tart is
a popular dessert worldwide, but other items include ice cream sundaes and tres lenches cake
in peru

In 2012 the KFC AM breakfast menu began to be rolled out internationally, including such
items as pancakes, waffles and porridge, as well as fried chicken .items are sold under the
“Streetwise” name in locations such as Canada, Nigera, South Africa and Mauritius. Side
dishes often include French fries, coleslaw, barbecue baked beans, corn on the cob, mashed
potato, brad rools and American biscuits. Salads include the bean salad, the Caesar salad and
the garden salad. In a number of territories, KFC sells onion rings. In most of Asia, several
Sub-saharan Africa and pacific markets, rice based side dishes are often sold. In the US and
Greecem potato wedges are sold instead of French fries.

Business environment of kfc

Micro and macro environment

PESTEL ANALYSIS

Political environment of kfc

Political

The operations of kfc are affected by the government policies on the regulations of fast food
operation, currently world countries government are controlling the marketing of fast food
restaurant because of health concern such as cardiovascular and cholesterol issue and obesity
among the young and children in the country. Governments also control the license given for
open the fast food restaurant and other business regulation need to follow such as for a
franchise business, Good relationship with government in giving mutual benefits such as
employment and tax is a must for the company to succeed in any foreign market .KFC is caring
about animal rights and they are issuing labelled food product as government order.

Economic environment of kfc

Yum brand owns KFC and similar fast-food restaurants, including Pizza Hut and taco bell. All
of these corporations are struggling in the Chinese market. While most can’t seem to grow ,
many are on a profit decline

Luckily, KFC is creating vegan items to compensate for vegan and dieting consumers. As of a
few days ago, kFC started experimenting with fried chicken sandwiches: instead of buns,
doughnuts will house the frieds chicken .and they’be created two vegan fried “chicken”
options, which are essentially boneless wings and vegan nuggets. Hokkrdes of people came
running to the nearest KFC location just to try these new creations. Clearly, these experiments
were successful for the company, both economically and socially.

Social fator of kfc

Fast- food restaurants struggle with social issues that associate negative feelings from
consumers to the brands. Many people worry about the mistreatment of minimum wage food
workers, another issue is, of course, the high calorie food. KFC’s menu is filled with these
foods, and with the obesity cfrisis thriving in Western countuies, restarurants like KFC are
often blamed for the vegan options is one way to appease people desiring healthier options; it
also introduces consumers , who otherwise wouldn’t look twice at KFC’S offerings, into the
restaurants.

Technological factors kfc

Unkike many other fast-food restaurants, KFC are adoping the newest technology fro workers.
They believe that by improving the environment for employees, customer service may improve
too. Iy’s a rather normal move considering how techsavvy many of the younger workers
are.They’re more likely to accept and understand new forms of technology in the workplace,
such as voice – activated tests for trainees.
Beyond the workplace, KFC is also offering advanced technology for deliveries, kiosks, and
easier ordering. You cn now order your meal before reaching the cash register, makin the entire
process much quicker for customers, This is a “click – and -collect” feature and it’s already
beneficial for KFC restaurants in Australia; approcimately 98% of locations offerijg click-and
= collesct have witnessesd a 20% profit increase.

Environment of kfc

A complicated history with KFC paper supplier hs affected the personal opinion of the brand.
The paper company is linked to deforestation, which negatively impacts the health of the
planet. It also contributes to the endangerment of wildlife and similar species who are already
on the brink if extinction

Legal factors of kfc

At the moment, KFC operates in more than 120 questions areounf the world. To remain
operational, the company must follow the laws in esach location, This includes filiing the
proper amount of taxes, adhering to labot laws, and ensuring all restaurants are up-to-code. If
they fail to follow any of the legalities, they may find themselves in court or even shutdown

Alnalysis of external and internal environment marketing essay

External environment

The marketing olan of western fried chichen focuses on their current positioning and the effcts
o repositioning themselves by launching HALAL fried chicken. With iys launch, they’d also
be in the list of one of the ‘KALAL’ food suppliers in UK . the main idea is to offer kala fried
chicken in western style as well as with a few amendments in the redipe by makin it spicy to
make it appealing to its extended target audience , the reaon being Muslims prefer a slightly
more spicy food than the western food. The repositioning of the brand is targeted towards the
extension of its target audiene by allowing access to another target gruoup a profitable
population of Muslims from all over the world, living in UK.

The bargaining powe of suppliers.

The bargaining powet of supplies si also low as chicken which is the raw material for WFC is
not a difficult item to get due to the sufficient amoun of suppliers but when it comes to halal
meat then it could be taken as bargaining power of supplies is high as a very few supplies
provide halal meat which is near to habing monopoly

The bargaining power of buyers

The bargaining power of buyer is high when it comes to fast food items as there are man;y
other outlets such as chicken cottage, KFC and Dixy chicken etx. Offering the same menu.
Therefore, if the customers feel that WFC is contiuosly over pricing then there is a possibility
of switching other competiotors

Competitive Rivalry in the industry

Competitive Rivalry in the industry is very high because there is cut throat competition in the
food industry of UK. Ther are over 1700 outlets providing something or the other.WFC has a
lot of direct and indirect competitors.

Internal analysis

company’s strength and weaknesses. By utilizing strength, company can use this posistive
factor to grkokwd in the competitive market. It shows company’s uniqueness frokm its
strengths or weakness. By focusing on company’s weaknesses management scan change or
improve the weak points and they can transform weakness into their strengths.

Strengths

Good Tasts: WFC is famous for providing one of the best fried chicken and chicken burgers in

Strong Brand Conviction: When it comes to fried chicken the customers strongly prefer and
the fact that WFC is opem till 4am which gives it an edge ober all iys competitors such as KFC
etc

Adaptability to change. WFC is willing to change as they’re thinking on the lines introducing
“halal” meat and extending their target audience.

Weaknesses
Narrow assortdment of menu: friend chicken pieces, burgers, wings and ribs with fries and
drink are just too limited offering due to which they might lose on some o the potential
customers.

Lacks in marketing research: A little effort put toward the marketing research of existing as
well as attracting new customers might help WFC to be more profitable by providing value to
its target market.

Marketing strategy of kfc

World 2nd largest fsat food chain and largest chicken restaurant on the basis ofk sales in KFC
the successful brand of the parent company YUM! Brand.

KFC with its 750000 workforece, serves fresh delicious friend chicken to customers in nearly
18000 restaurants across the world in 120 countries.

Segmentation , targeting positioning in the marketing strategy of KFC

KFC demographic segmentation to serve the market as per the customer needs & wants. The
consumers of KFC are the young as well as young adilts.

Marketing strategy of kfc

World 2nd largest fsat food chain and largest chicken restaurant on the basis ofk sales in KFC
the successful brand of the parent company YUM! Brand.

KFC with its 750000 workforece, serves fresh delicious friend chicken to customers in nearly
18000 restaurants across the world in 120 countries.

Segmentation , targeting positioning in the marketing strategy of KFC

KFC demographic segmentation to serve the market as per the customer needs & wants. The
consumers of KFC are the young as well as young adilts.

It used to serve the same menu all around the world which means that it was using
undifferentiated targeting strategy. However, in recent times, following McDonalds example,
KFC acceptability in the market. Moreover it has transformed iys positioning strategy from
product based to value basedin recent times
Competitive advantage in the marketing strategy of kfc

Original recepe of fried chicken with secret blend of 11 herbs& spices have bseen thedriving
force for KFC from last 75 years. KFC has a broad menu with many options for customers and
now even vegetarian food items have been added by KFC whichhas helped KFC in increasing
iys customer base and sales volume.

Presence in developed & developing nations is helping the company in strategizing its future
growth plans as it is giving them exposeure &experience which is essential element in and fast
food industry’s success

Distribution strategy in the marketing strategy of kfc

With 18000l restaurants delivering finger licking delicious fast food across the world, KFC
has evolved iyself through the years and having strong tio-ups or strategic partnershiop with
the supply chain

KFC always believes in keeping iys outlat in premium area as well as in malls and shopping
complexes . these KFC outlests can also carry out delivery for online orders of KFC , KFC
overs both -online and offline deliveries.

Customer analysis in the marketing strategy of KFC

Customer of KFC are the people from different age group, all who want to satisfy their taste
buds with the finger licking delicious chicken menu. Most of the customers can be defined as
younsters or young adults who can shell out a minimum amount of money to have a delicious
meal.

Market analysis in the marketing strategy of KFC

Although more than 50% of its sales come from Developed nations but those markets have
stagnant growth rate and developing nations like india, china and many others have big
potential for KFC
The market is still growing but fast food chains have low acceptance in developed markets.
Developed nations are becoming nations which will share the market dynamics.

Price

KFC adjust their prices according their market segments. It could be family size, income and
customer behaviour towards its products. They also adjust their prices depending on the
location. In highly posh areas, prices may be higher than that of medium or semi urban areas.

Familysize: Kfc targets family with its family pack offer

Consumption Behaviour : KFC adoptes its pricing strategy according to consumer behaviour
in a particular region taste differences eg halal chiken is preferd in the muslim countries.

Suggestion

Kfc should fovus on extending the healthier options by including more veg items and calorie-
free items to the customers. This would help to increase the target market which in turn would
increase the sales of the business.

Marketing objectives
The marketing plan is based on the following objectives

To create awareness among the customers and create goodwill in the market

To increase the sales of the organisation by 10%

To increase the outlets by 5%

To increase the profitability by 10%

Conclusion

According to the analysis, KFC is best fast food restaurant in the world and they are growing
rapidly because they have good strategy planning in competing business world. They introduce
different menu so they can attract the customer and launching new fast food product as a part
of their strategy planning and also they are using technology for their growth so KFC is looking
forward for their business.

10.1
10.2
10.3
10.4
10.5
10.6
10.7
10.8 RECOMMENDATION
In order to solve the problem of high competition, the best solution is to expand into
international market as explained in the above section. KFC may also want to differentiate its
products and compete at non-price strategies, such as service and variety of menu. In this way,
KFC escapes from potential price wars. On the other hand, KFC may want to reduce its cost
so that it will survive in case of price wars.
For the second problem related to the reduction in market share and efficiency, the root cause
comes mainly from the PepsiCo’s centralization strategy, which also leads to high turnover and
low employee morale. The suggestion for PepsiCo is to gradually decentralize KFC to semi-
autonomy. This strategy benefits PepsiCo in three ways. First, as the operational decisions are
delegated to KFC’s existing managers, PepsiCo can spend more time on corporate strategic
decisions. PepsiCo also can put more resources on its core soft drink business. Second,
decentralization increases the flexibility of KFC’s managers so that they become easier to cope
with the diversity of the local situations and response to market changes. Third, it motivates
managers and increases their productivity, effectiveness, and efficiency.