PROJECT ON MARKETING STRATEGY FOR KFC

UNIVERSITY OF MUMBAI

A PROJECT SUBMITTED TO UNIVERSITY OF

MUMBAI

THE PARTIAL COMPLETION OF DEGREE BMS

(MANAGEMENT STUDIES)

UNDER THE FACULTY OF COMMERCE BY

ABHISHEK LAWLESHKUMAR TIWARI

PROJECT GUIDE

PROFESSOR MR. DEEPAK MISHRA

SHREE SHANKAR NARAYAN COLLEGE OF ARTS

COMMERCE AND PROFESSIONAL COURSE NAVGHAR

ROAD, BHAYANDER (EAST)

THANE-401105

ACADEMIC YEAR- 2023-2024

SEMESTER VI

T.Y.BMS

EXAM SEAT NO.

2156841

1
 DECLARATION

I Abhishek Lawleshkumar Tiwari here by, declare that the work embodied in
thisproject
work titled “MARKETING STRATEGY FOR KFC” form my own contribution to there
search work carried out under the guidance
PROF. MR. DEEPAK MISHRA is a result of my own research work and hasnot been
previously submitted to any other University for any other Degree/Diploma to thisor any
other University.
Wherever reference has been made to previous works of others, it has been clearly
indicated
as such and included in the bibliography.
I, here by further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.

Place: Signature
Abhishek Lawleshkumar Tiwari

Date:

Certified by,
Prof . MR. DEEPAK MISHRA

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 ACKNOWLEDGEMENT

It gives me immense pleasure in presenting my project on topic “A Study On Marketing

Strategy Of Kfc".

I would finally like to thank University of Mumbai to design M. Com program also
to my college Management for providing me Post Graduation program in the
college as well as good infrastructure and sincerely thank our Principal sir Dr.
V.N. Yadav for providing me support and giving me opportunity to do Post
Graduation in our college and completing the project.

I would also like to express my profound guide Prof. MR. DEEPAK MISHRA
and HOD Prof. Ravi Kumar pal who as to guided my research project with his
vast find of knowledge advice and constant encouragement without which this
project would have not been possible. I candidly appreciate his implicit and
valuable contribution in drawing up this project work.

I take this opportunity to highlight the valuable contribution of TY.BMS HOD

Prof. Ravi Kumar Pal and all my professors, my colleagues and especially my
parents who had always supported and encouraged the success of this project
report to large extent is also dedicated to them also.

I would also like to thank all those who helped me and whom I have forgotten to
mention in this space.

THANKYOU!

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Chapter INDEX PAGE .
NO.
1 Introduction 08
1.1 History of KFC 10
1.2 Operation in India 14
1.3 Problem faced by KFC in India 16
1.4 7p’s of marketing 20
1.5 Target market for fast food 37
1.6 Competitive Analysis 42

1.7 PEST Analysis 47

2 Research methodology 57
2.1 Objective of study 58
2.2 Data collection method 59
2.3 Limitation of study 60
2.4 Scope of study 60

Literature review 61
3
Data interpretation & Analysis 63
4
CONCLUSION 74
5
Recommendation & suggestion 75
6
Bibliography / Webliography 76
7
ANNEXURE- 77
I(QUESTIONNAIRE)

6
 Executive summary

With the increase in spending capcity of Indian middle class society, the mind set of consumer
have changed in relation to recreational activities.

More frequently people have started to move out to eat, this has created scope for many fast
food chains. But along with that it has also created competition among different food chains.

Hence each nad every one plays a major role in attracting customers. The trend can be seen
by the increasing number of food chains.

That is why this topic chosen for further study as this particular industry is fast becoming
very competitive.

This project comprises a brief analysis of Indian fast food industry and the competiton that
marks the trend, different companies and various players are analyzed from their competing
strategies. Some of these fast food chains are Pizza Hut, McDonald;s, futher the main scope
of the study is to conduct marketing analysis on KFC fast food services industry.

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 CHAPTER 1

INTRODUCTION

Kentucky Fried Chicken (KFC) is a fast food restaurant chain that specializes in fried
chicken and is headquartered in Louisville Kentucky , United States. It is the world's second
largest restaurant chain (as measured by sales) after Mc Donalds with almost 20,000
locations globally in 123 countries and territories as of December 2015. The company is a
subsidiary of Yum Brand, a restaurant company that also owns the Pizza Hut and Taco Bells
chains.

KFC was founded by Harland Sandler’s 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. However, the
company's rapid expansion overwhelmed the aging Sanders, and, in 1964, he sold it to a
group of investors led by John Y. Brown, Jr. and Jack C. Massey.

KFC was one of the first American fast food chains to expand internationally, opening outlets
in Canada, the United Kingdom, Mexico, and Jamaica by the mid-1960s. Throughout the
1970s and 1980s, KFC experienced mixed fortunes domestically, as it went through a series
of changes in corporate ownership with little or no experience in the restaurant business. In
the early 1970s, KFC was sold to the spirits distributor Heublein, who were taken over by the
R.J. Reynolds food and tobacco conglomerate, who sold the chain to PepsiCo. The chain
continued to expand overseas, however, and in 1987 KFC became the first Western restaurant
chain to open in China. The chain has since expanded rapidly in China, which is now the
company's single largest market. PepsiCo spun off its restaurants division as Tricon Global
Restaurants, which later changed its name to Yum brands .

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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 Herman 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
its former and current slogan "Finger Lick in' Good", which was replaced by "Nobody does
chicken like KFC" and "So good" in the interim.

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1.1 HISTORY OF KFC

The Harland Sanders and museum

Harley sanders was born in 1890 and raised on a farm outside near Harland sanders
Louisville, Kentucky. When Sanders was five years old, his father died, forcing his mother to
work at a canning plant this left Sanders, as the eldest son, to care for his two younger
siblings after he reached seven years of age, his mother taught him how to cook. After
leaving the family home at the age of 13, Sanders passed through several professions, with
mixed success In 1930, he took over a Shell filling on US Route 25 just outside North
Corbin, Kentucky, a small town on the edge of the Appalachian Mountains. It was here that
he first served to travelers the recipes that he had learned as a child: fried chicken and other
dishes such as steaks and country ham.[ After four years of serving from his own dining
room table, Sanders purchased the larger filling station on the other side of the road and
expanded to six tables. In 1937 he expanded his restaurant to 142 seats, and added a motel he
purchased.

Across the street, naming it Sanders Court & Café.

In 1991, the KFC name was officially adopted, although it was already widely known by that
initialize. Kyle Craig, president of KFC US, admitted the change was an attempt to distance
the chain from the unhealthy connotations of "fried". The early 1990s saw a number of
successful major products launched throughout the chain, including spicy "Hot Wings"
(launched in 1990), popcorn chicken (1992), and internationally, the "Zinger", a spicy
chicken fillet burger (1993). By 1994, KFC had 5,149 outlets in the US, and 9,407 overall,
with over 100,000 employees. In August 1997, PepsiCo spun off its restaurants division as a
public company valued at US$4.5 billion (around US$6.5 billion in 2013). The new company
was named Tricon Global Restaurants, and at the time had 30,000 outlets and annual sales of

10
US$10 billion (around US$14 billion in 2013), making it second in the world only to
McDonald's. Tricon was renamed Yum! Brands in May 2002.

By 2015, the company was struggling, having lost business to other retailers and being
surpassed by Chick-fil-A as the leading chicken retailer three years previously. To combat
this, the company launched a new initiative with a plan to revamp its packaging, decor and
uniforms, as well as expanding its menu. Additionally, beginning in May 2015, a new series
of advertisements was launched featuring Darrell Hammond as Colonel Sanders.
Subsequently, in a planned rotation of actors, Norm Macdonald, Jim Gaffigan, George
Hamilton and Rob riggle portrayed Sanders in similar ads through the fall of 2016.

Kentucky Fried Chicken) 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 restaurant franchising, and the first
"Kentucky Fried Chicken" franchise opened in Salt Lake City, Utah in 1952. KFC
popularized chicken in the fast-food industry, diversifying the market by challenging the
established dominance of the hamburger. Branding himself "Colonel Sanders", the founder
became a prominent figure of American cultural history, and his image remains widely used
in KFC advertising. The company's rapid expansion made it too large for Sanders to manage,
so in 1964 he sold the company to a group of investors led by John Y. Brown, Jr. and Jack C.
Massey.

KFC was one of the first fast-food chains to expand internationally, opening outlets in
England, Mexico and Jamaica by the mid-1960s. Throughout the 1970s and 80s, KFC
experienced mixed success domestically, as it went through a series of changes in corporate
ownership with little or no experience in the restaurant business. In the early 1970s, KFC was
sold to the spirits distributor Heublein, which was taken over by the R.J. Reynolds food and
tobacco conglomerate, which later sold the chain to PepsiCo. The chain continued to expand
overseas, and in 1987 KFC became the first Western restaurant chain to open in China.

11
In 1997, PepsiCo spun off its restaurants division as Tricon Global Restaurants, which
changed its name to Yum! Brands in 2002. Yum has proved a more focused owner than
Pepsi, and although KFC's number of outlets has declined in the US, the company has
continued to grow in Asia, South America and Africa. The chain has expanded to 18,875
outlets across 118 countries and territories, with 4,563 outlets in China alone, KFC's largest
market.

Harland Sanders was born in 1890 and raised on a farm outside Henryville, Indiana. His
father died in 1895, and to make ends meet his mother took work at a canning plant. As the
eldest child at the age of five, Sanders was left to care for his two siblings.[5] When he turned
seven his mother taught him how to cook. After leaving the family home at age 13, Sanders
pursued several professions including railroad worker and insurance salesman, with mixed
success.[6] In 1930, he took over a Shell filling station on US Route 25 just outside North
Corbin, a small city on the edge of the Appalachian Mountains. By June, he had converted a
storeroom into a small eating area using his own dining table, serving meals such as steaks
and country ham to travelers.

In 1934, Sanders took over the lease of the Pure Oil filling station on the other side of the
road, due to its greater visibility for motorists. He then began to sell fried chicken. To
improve his skills, Sanders took an eight-week restaurant-management course at the Cornell
University School of Hotel Administration. By 1936, his business had proved successful
enough for him to be given the honorary title of Kentucky colonel by Governor Ruby
Laffoon. In 1937, Sanders expanded his restaurant to 140 seats, and in 1940 purchased a
motel across the street, the Sanders Court & Café.

Sanders were dissatisfied with the 35 minutes it took to prepare his chicken in an iron frying
pan, but he did not want to deep fry. Although a much faster process, in Sanders' opinion it
produced dry and crusty chicken that was unevenly cooked. On the other hand, if he prepared
the chicken in advance of an order, there was sometimes waste at the end of the day.

12
In 1939, the first commercial pressure cookers were released onto the market, predominantly
designed for steaming vegetables. Sanders bought one and modified it into a pressure fryer,
which he then used to prepare chicken. The new method reduced production time to be
comparable with deep frying, yet, in Sanders' opinion, retained the quality of pan-fried
chicken. In July 1940, Sanders finalized what came to be known as his Original Recipe of 11
herbs and spices. Although he never publicly revealed the recipe, he admitted to the use of
salt and pepper, and claimed that the ingredients "stand on everybody's shelf".

After being recommissioned as a Kentucky colonel in 1950 by Governor Lawrence there by,
Sanders began to dress the part, growing a goatee and wearing a black frock coat (later
switching to a white suit), a string tie, and referring to himself as "Colonel". His associates
went along with the title change, "jokingly at first and then in earnest", according to
biographer Josh Ozersky.

13
1.2 OPERATION IN INDIA

India

KFC outlet on Middleton Row in Kolkata.

KFC in Polayathode Kollam city. This is one of the largest KFC stores in Kerala state, India

There are 350 KFC outlets in India The company has adapted the standard KFC offerings to
Indian tastes and the menu options in India include the ever-popular Hot & Crispy Chicken
and Fiery Grilled bucket options, Chicken Zinger Burger, Rice Bo, the more recently
launched 5-in-1 Meal Box and a range of shakes called crushers,The business was
refranchised in October 2015 after Yum concluded a year-and-a-half-long exercise to
reorganize its business under larger, well-capitalized franchisees. In this regard, about a third
of its outlets, operated by several of its franchisees, have been sold to a newly formed
entitySapphire Foods India Pvt. Ltd. The new entity is owned by a consortium of
—
fourprivate equity funds, led by Samara Capital. The other investors are CX Partners,
Goldman Sachs Group Inc. and a fourth fund, said a top executive at the local arm of the
American food company.

14
The first Indian KFC was a two-storey outlet on the fashionable Brigade Road in Bangalore
in June 1995. According to journalist Michael White the company could not have chosen a
"more difficult venue for its maiden entrée into the country" .Bangalore housed the
headquarters of the Karnataka RajyaRaithaSangh one of the most influential, vocal and
anti- foreign investment farmers' associations in the country. The first outlet suffered
protests from left wing and environmental. Campaigners, as well as local farmers, who
objected to the chain bypassing local producers, Many Indians were concerned about the
onslaught of consumerism the loss of national self-sufficiency, and the disruption of
indigenous traditions The protests came to a head in August 1995, when the Bangalore
outlet was repeatedly ransacked The KFC outlet in Bangalore demanded, and received, a
police van permanently parked outside for a year. The outlet was closed on September 13,
1995 by local authorities, who claimed the company used illegally high amounts of
monosodium glutamate (MSG) in
its food. The outlet re-opened a few hours later as the result of an appeal by KFC to the
Karnataka High Court the Company stated the recipe was no different than that used in any
other KFC store. Rural activist M. D. Nanjundaswamy claimed KFC would adversely affect
the health of the impoverished, by diverting grain from poor people to make the more
profitable animal feed. Environmentalist Maneka Gandhi joined the anti-KFC movement. A
second outlet opened in Delhi, but was closed by the authorities throughout November,
purportedly for health reasons, but more likely to avoid a repetition of the Bangalore incident
The Delhi outlet soon closed permanently

KFC began to expand outside of Bangalore in 2004, with a localized menu that was the most
extensive meat-free menu across the chain's worldwide operations. It introduced a vegetarian
menu that included rice meals, wraps and side dishes and, like McDonald's, served eggless
mayonnaise and sauces. Unnat Varna, marketing director of KFC India, states "The
vegetarian offerings have made the brand more relevant to a larger section of consumers and
that is necessary for KFC's growth." KFC also began using Indian spices and cooking
techniques to localize its chicken dishes. By 2008–09, KFC operated 34 outlets 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. The company has been up to a lot of
innovation over the past few months with the launch of the first-ever no crust, all chicken
KFC Chizz in December 2016. More recently, KFC got Mumbai's dabbawalas to deliver its
newly launched 5-in-1 Meal Boxes.

15
1.3 PROBLEMS FACED BY KFC IN INDIA

The case highlights the ethical issues involved in Kentucky Fried Chicken's (KFC) business
operations in India. KFC entered India in 1995 and has been in midst of controversies since
then. The regulatory authorities found that KFC's chickens did not adhere to the Prevention
of Food Adulteration Act, 1954. Chickens contained nearly three times more monosodium
glutamate (popularly known as MSG, a flavor enhancing ingredient) as allowed by the Act.
Since the late1990s, KFC faced severe protests by People for Ethical Treatment of Animals
(PETA), an animal rights protection organization. PETA accused KFC of cruelty towards
chickens and released a videotape showing the ill-treatment of birds in KFC's poultry farms.
However, undeterred by the protests by PETA and other animal rights organizations, KFC
planned a massive expansion program in India

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 PROTEST AGAINST KFC

On August 20, 2003, a five-foot tall chicken complete with an ensemble of feathers and beak
hobbled on a pair of crutches outside Kentucky Fried Chicken's (KFC) Indian outlet in
Bangalore. The chicken was brought by PETA (People for Ethical Treatment of Animals)
activists, who carried placards reading, "Quit India" and "Stop Playing Fowl" (a pun on
"Foul").

The chicken was placed at the centre and a peaceful protest was held against the alleged ill
treatment of birds in KFC's poultry farms. Media persons were called to give the
demonstration a wide coverage. Explaining the rationale behind the protest, Bijal
Vachcharajani, special projects coordinator of PETA, said, "Ours is the land of Gandhi. Just
as 61 years back our leaders gave a call for colonizers to quit India, we too are saying we will
not tolerate cruel multinationals." On the 61st anniversary of the 'Quit India' movement,
PETA India wrote a letter to the Managing Director of Tricon Restaurant International, the
parent company of KFC, asking them to close their sole KFC outlet in India. They got no
reply. PETA activists decided to protest against KFC by carrying crippled chicken, which
represented the birds suffering in the KFC's farms.

PETA claimed that after two years of intensive campaigning to increase animal welfare
standards in poultry farms, other foreign fast food restaurants operating in India like
McDonald's and Burger King had improved the treatment of animals specially raised and
slaughtered for food. Only KFC had not acted. Though PETA had organized other protests
earlier, the crippled chicken campaign became the precursor for more intensive protests.
PETA's was one of the many shows of protest against KFC's Indian outlet.

17
What is marketing strategy?

An that combines all of its marketing goals into one comprehensive plan. A good marketing
strategy should be drawn from market research and focus on the right product mix in order to
achieve the maximum profit potential and sustain the business.

Marketing strategy: It has the fundamental goal of increasing sales and achieving a
sustainable competitive advantage. Marketing strategy includes all basic, short-term, and
long-term activities in the field of marketing that deal with the analysis of the strategic initial
situation of a company and the formulation, evaluation and selection of market-oriented
strategies and therefore contributes to the goals of the company and its marketing objectives.

DEFINITION

A marketing strategy is a process or model to allow a company or organization to focus

limited resources on the best opportunities to increase sales and thereby achieve a
sustainable competitive advantage.

According to the American Marketing Association (AMA) Board of Directors, Marketing is

the activity, set of institutions, and processes for creating, communicating, delivering, and
exchanging offerings that have value for customers, clients, partners, and society at large.

Dr. Philip Kotler defines marketing as “the science and art of exploring, creating, and
delivering value to satisfy the needs of a target market at a profit. Marketing identifies
unfulfilled needs and desires. It defines measures and quantifies the size of the identified
market and the profit potential. It pinpoints which segments the company is capable of
serving best and it designs and promotes the appropriate products and services.”

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MARKETING STRATEGIES OF KFC

There are different strategies adopted by KFC for different events. They market their
products on different events and in different activities as they are helping SOS village.
According to KFC, kids become the future permanents customers and we know very well that
without any marketing strategy no marketing program and no product is successful because
we depend upon customers, customer not depend on us.

KFC is following Niche Marketing and Societal Marketing techniques.

KFC possess a western culture because some of the Indian people are also following that
culture.

KFC is moving from Divisional Level to the District level by opening branches.

KFC also offers free home delivery.

KFC open their outlets on reachable places.KFC menu consists of more than 30 products.
KFC give priority to Family.

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1.4 7 P’S OF MARKETING

There are 7 P’s of Marketing they are as follows:

1. PRODUCT.

2. PRICE.

3. PLACE.

4. PROMOTION.

5. PEOPLE.

6. PROCESS.

7. PHYSICAL EVIDENCE.

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1. PRODUCT:

KFC product are listed below

□ Original recipe® chicken

□ Extra Tasty CrispyTM chicken
□ Hot Wings TMpieces
□ Tender Roast® chicken
□ Chunky Chicken pot pie
□ Kentucky Nugget®
□
□ Colonel’s Crispy Strips®
□ Honey BBQ sandwich
□ Original Recipe® Sandwich
□ Tender Roast® Sandwich

Basically the product is anything that be offered to a market for attention, acquisition,
use, or consumption that might satisfy a want or need. KFC is specially dealing in the
chicken products; Basically, KFC has the special raspy for chicken products that is
why, KFC known as a chicken specialist all over the global. KFC target the Asia and
east side because they observe that they people are like the chicken products, so they
Enter in the market due to the demand of their chicken products. KFC product variety
of product in the chicken, those products are

21
Product planning:
Their product is classified as consumer product as it has no intermediates. It also offers
specialty goods. The stock turnover 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:

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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 India 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.

23
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 trademarked 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.

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2. 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.

Pricing Strategy:

Marketing Skimming: KFC globally enter in the market using market skimming. Their
products are priced high and target the middle to upper class people. Gradually they trickle
down the price focusing on the middle to lower class people to penetrate the both side of
the market.

Cost based: KFC price their product keeping different points in view. They adopt the cost
based pricing strategy pricing of the product include government tax and excise duty and then
comes to final stage of determine the price of their product. The product is bit high priced
according the market segment it is also comparable to the standard of their product. In the
cost based method we include the variable and fixed cost.

Competition: We can compare the price of their products with the McDonald, Dominos, and
Pizza hut. If the competitor provides the same products at the lower price than the
organization usually lower the price of its products too. In the case of the KFC. Fried chicken
is the main selling point and control as a monopoly over the Indian fast food market (only
with fried chicken). Its prices its burgers, French fries and soft beverages with the relation to
its competitors.

25
3. 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.

In the case of the KFC the placement of the product is not important but the placement of the
restaurant is important. The products of the KFC is cooked at the sport and then served after
that.KFC Cavalry branch opened in June 1998, in the main commercial zone of Cavalry
Grounds near the Jinnah Flyover. The restaurant is a three-story building including the
basement (where the chicky play area is located). It is ideally located in the center of a main
commercial and residential area of Mumbai. The area that KFC Cavalry caters for is the
residential and office area of Cavalry Grounds and Cantt, as the main target market. Another
branch the KFC opened in the Lahore is in Garden Town (opposite to Barkat Market).KFC
also target the Faisalabad and open its branch in ground. Now we can easily judge that the

26
KFC target the place for their restaurant, which is well known and is in the Porsche area
where the income level of the people is high t hen the middleclass level. Because the prices of
the KFC products is high with comparison to the local products manufacturer who are dealing
in the same kind of product in which KFC is dealing but the prices of the KFC is high due to
special taste, high quality, and due to international brand, it is the world recognized fast food
restaurant all around the world. So, for the placing strategy, KFC chose the well income class
area for their restaurants

4. 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
lective demand
primary demand advertising (“Become a Chicken Fanatic”) and the se
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 a ct 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 India 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, and
Pepsi-Cola. And most recently with ARY Gold digital and World Call Internet services. Also
KFC Proud Partners are Del Monte, Culigan, 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)

27
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 India and to capture the market
share in India 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 potential 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 India by following different
strategies that may be regarding their products, prices, placement or promotions. They have

28
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 phone. If the person is an phone 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:

29
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.

Sales promotion

Kentucky Fried Chicken or KFC has been a late entrant in the Indian market. Even though it

has an unique offering with “Crispy Chicken”, it faces stiff competition in the fast food
segment from organized players like McDonalds which competes with its range of value
meals and Dominos which is symbolized by its 30-minutes delivery of Pizza. In fact, in
all major markets across the globe, KFC competes with these two companies. Both the
brands have looked at catering their product offerings suited to Indian tastes. KFC has
also included items such as Rizo (Rice) which is served only in South-east Asian
countries. The company is owned by Yum Brands! And has several licensees in India
including KFC Malaysia with Kolkata forming a major sourcing destination.

Why the Indian market is critical for KFC in long run?

More than 50% of KFC’s sales and profits are generated from the Chinese market. However,
the recent food scandal in China has affected KFC adversely, thereby the emphasing the need
to grow in other markets. India forms the perfect answer to this requirement with a young
population and growing spending power.

Sales Promotion Campaign adopted by KFC

KFC has a tie-up with Free Charge. in through which it offers food coupons currently. The
various offers that it has are:
1. Get three piece hot wings free with any meal.
2. Get a Choco cake on purchase of Rs 300.
3. Value Snacker meal at INR 70(veg) and INR 80 (non-veg)

30
In terms of in-store sales promotion, KFC offers a special offer to promote breakfast sales. If
a meal is ordered in the breakfast slot, the customer can avail another piece of crispy chicken
for an additional INR 20 instead of INR 75 in normal case. This can be seen in direct
response to McDonald which is promoting its breakfast menu quite heavily with its loyalty
cards that offer free McMuffin during breakfast. Both the Free Charge campaign and the in-
store campaign are not valid for home delivery order. However, there is a slight fallacy in this
assumption on KFC’s part as Indians are not likely to consume chicken in breakfast.
. All KFC outlets offer its customer with various form of incentives to buy its chicken. Using
coupons that one can acquire after spending a particular amount over a period of fixed time,
customer can enjoy the benefits of free meals or free add- owns. Additionally they provide
meal vouchers and exciting offers in their prints ads, which the customer cut and bring along.

For the sales promotion KFC introduced their goods like watches, keychain, etc to the
customers.

31
ADVERTSING:-
The advert titled Pool was done by OGILVY & MATHER, New Delhi advertising agency for
KFC ZINGER BURGER (KFC Company) in INDIA. It was released in the June
2009.Business sector is Fast food outlets & restaurants.
The logo of the smiling colonel is probably the most recognized face in the world and
instantly brings the image of fried chicken to one’s mind.
Sponsorship is another tool to strengthen an organization image. KFC is currently the sponsor
of the Australian cricket team and the colonel logo can be seen in their uniforms throughout
the matches.

One of KFC's latest advertisements is a commercial advertising its "wicked crunch box
meal". The commercial features a fictional black metal band called "Helvetica" performing
live, the lead singer then swallows fire. The commercial then shows the lead singer at a KFC
eating the" wicked crunch box meal" and saying "Oh man that is hot". In 2007, the original,
non-acronymic Kentucky Fried Chicken name was resurrected and began to reappear on
company marketing literature and food packaging ,As well as some signage.

MARKETING CHALLENGE

□ Pre-launch Scenario:
□ Renowned worldwide for its” finger licking” good food.
□ KFC growing rapidly in India with presence in 11 cities with close to 50 restaurants.
□ However no signature beverage offered.

32
 □ The growing need of target audience to “beat the heat” and accompany the “hot food”
with chilled beverages.

□ The advertisements had less impact, simply concentrated on stories about youngsters
□ and colleges. Discovering and enjoying the taste and experience of KFC.
The Challenge:

□
Competing with other fast food brands like Mc Donalds, Dominos, Pizza Hut

□
Establishing a monopoly in selling “fried chicken” in the Indian fast food market.

□
Developing more and more signature products besides food, in beverages and deserts.

□
Intensifying its target audience – going beyond college goers and youngsters.

□
Including more varieties in menu to suit the Indian taste.

CAMPAIGN OBJECTIVES

□ To create a “sensuous impact”rather than the regular KFCs advertisements so as to

introduce the product that one gets tempted, taste and flavour.

□ Intensifying its position in fast food market in India by attracting people besides youth.

□ Positioning itself in the beverage industry.

□
Creating the signature beverage.

33
MAREKTING REATIVE STRATEGY

The TVC has been conceived by Ogilvy India's Delhi wing. The creative team comprises
Ajay Gahlaut, Shailender Mahajan and Divya Bhatia. The film has been shot by Prakash
Verma of Nirvana Films. Mindshare is the media agency for the brand. The product was
to be introduced in the sub-continent and wanted to be projected as really thick and tasty.
The product is such that there are bits and pieces of ingredients inside it, which one can
chew, taste and flavor. It was to be shown how tempting and tasty these ingredients can get,
and thus, decided to romance the ingredients. Titled Pucker, the TVC opens in a KFC
store, where a middle-aged man is having his meal. Suddenly, he hears a strange sound
and looks up to find a young girl making strange puckering gestures at him. Theman is
a little taken aback, but the girl continues to pucker at him. The ad then breaksinto the
product window, where we see cookies mixing with milk, milk falling on lips, cocoa beans
being ground and
ice being crushed. Next, the ingredients are blended together to form the shape of the
crushers tumbler. The film cuts back to show the girl holding a glass of crushers and taking a
long deep sip. The man now understands that the girl was simply enjoying her drink and he
smiles. The ends with the tagline, 'Really thick, really tasty', as the last shot has a range of
crusher tumblers exploding.

5. PEOPLE

1. The people involved in providing services to the customers.

2. The staffs working in the outlets are trained by the company itself.

3. They are provided with certain guidelines to communicate with the customer.

People are one of the elements of service marketing mix. People define a service. If you have
an IT company, your software engineers define you. If you have a restaurant, your chef and
service staff defines you. If you are into banking, employees in your branch and their
behavior towards customers define you. In case of service marketing, people can make or
break an organization. Thus many companies nowadays are involved into specially getting

34
their staff trained in interpersonal skills and customer service with a focus towards customer
satisfaction. In fact many companies have to undergo accreditation to show that their staff is
better than the rest. Definitely a USP in case of services.

6. PROCESS

1. The process starts when the customer visits the outlet.

2. It also involves if the customer order the products online.

The easier and convenient the process it will lead to greater customer
satisfaction Service process is the way in which a service is delivered to the end customer.
Let’s take the example of two very good companies – McDonalds and Burger king. Both the
companies thrive on their quick service and the reason they can do that is their confidence on
their processes. On top of it, the demand of these services is such that they have to deliver
optimally without a loss in quality. Thus the process of a service company in delivering its
product is of utmost importance. It is also a critical component in the service blueprint,
wherein before establishing the service, the company defines exactly what should be the
process of the service product reaching the end customer.

7. PHYSICAL EVIDENCES

The building itself (such as prestigious offices or scenic headquarters). This includes the
design of the building itself, signage around the building, and parking at the building, how the
building is landscaped and the environment that surrounds the building. This is part of what is
known as the services cape.

Upon targeting the urban, youth population and the family sector, the outlets of KFC are
conveniently placed in malls, and near colleges, shops, theatres, thereby enabling increased
footfall to the outlets.

In some selected countries, KFC offers free home delivery to offices and homes in some
regions/outlets.

35
The Red color is most attractive and KFC has tried to make the most of it by using it as the
basic theme for all of its outlets. The restaurant is aptly illuminated with sufficient lights
that go very well with the ambience.

The last element in the service marketing mix is a very important element. As said before,
services are intangible in nature. However, to create a better customer experience tangible
elements are also delivered with the service. Take an example of a restaurant which has only
chairs and tables and good food, or a restaurant which has ambient lighting, nice music along
with good seating arrangement and this also serves good food. Which one will you prefer?
The one with the nice ambience. That’s physical evidence. Several times, physical evidence
is used as a differentiator in service marketing. Imagine a private hospital and a government
hospital. A private hospital will have plush offices and well dressed staff. Same cannot be
said for a government hospital. Thus physical evidence acts as a differentiator.

36
1.5 TARGET MARKET FOR FAST FOOD

After evaluation of various segments, KFC has decided to target the market of Urban and
Sub-urban Areas of India

Product usage People are educated and they want variety in their diet. Normally people of
rural areas don’t take fast food\On the other hand people of urban areas take fast food.

Income of the people of urban areas is normally high and they can afford to purchase such
products, which are slightly higher in price as compared to prevailing prices of local food in
the market. People of Urban Areas are more quality conscious than the people of Rural Areas

In Urban Area there lived people from every walk of life and profit generation is easier than
in Rural Areas .Population density is higher in Urban Areas as compared to Rural Areas, so
the numbers of customers are more in Urban Areas.

TARGET MARKET LOCATION

1. Location:

A. Hectic lifestyle of individuals – giving them more time at works and less stress about
waiting for food Commercialization: of urban and suburban market leading to more mid-
sector people that find high end eating joints very to expensive

B. Mid sector of people are always looking for change which KFC provides in their range of
fast food

C. Quality conscious people in urban areas are more conscious about the quality of food than
rural areas

. Urban area are more populated therefore they help with attracting higher revenues.
D

37
2. Placement outlets:

Due to KFC placing itself close to schools, colleges, cinemas, and markets which are most
populated by the young and those who are in a hurry. KFC enjoys a large number of footfalls
every day. In addition they also have outlets close to non-vegetarian..

Market segment for KFC Restaurant

The market segment basically divided in to 4 groups

Children:

KFC target children boys and girls with age 12 below who love to eat fried chicken. At the
same time they also target children who love to get free toys with meals. Thus KFC has
chicken meals with free toy.

Teen & young adult:

KFC also target teens and young adult with age 12 to 25who love to eat fried chicken.
Normally, KFC target boy and girls who like to eat both fried chicken and burger at for an
affordable mean. Thus KFC has X meal which emphasizes extra choice and extra variety with
lower price.

Family:

KFC target family with both parents and 2 less or more kids dinning together in KFC
restaurant or take away. KFC also have playground that normally parents would bring their
children to play at there while they could peacefully eat their meals. Thus KFC has Mini
Bucket combo and variety Bucket to cater for bigger number of people toeat with favourable
price.

38
Budget customer:

KFC has concerned of budget customer appetite with basically age 12 to 5. Thus KFC also
has menu and real saver menu which emphasizes in 1 set with lower price and side orders
as well as such as potatoes wedges.

Current target market Segmentation:

The process of evaluating each market segment’s attractiveness and selecting two or more
segments.

As the outlets of KFC are in posh area prices are too high (overhead expenses-0rent,air-
conditioning, employees),so KFC target upper and middle classes. Target market depends
upon size and growth rate of population. Company resources are structural attractiveness of
market segmentation.

KFC has divided the market of India into distinct groups of customers with different
demands, tastes and behavior who require separate products or marketing mix. In India the
niche marketing is being used for particular classes of people. They have made segments of
the market on the following bases.

DEMOGRAPHICAL.

BEHAVIORAL.

GEOGRAPHICALLY.

By using these three bases they segmented the market as under.

DEMOGRAPHICAL BASIS.

In Demographic segmentation, the market is divided in to group based on age, gender,

family, size , income, occupation ,religion , race, and nationality.

39
KFC divides the market on demographic basis on

this way: Age is between 6-65.

Gender is both male and female.

Family sizes is 1-2,3-4,.

Income is Rs 10,000 &above.

Family lifestyle is almost all.

BEHAVIORAL SEGMENTATION

In behavioral aspect they segmented the market on the basis of quality, taste and price.
Following are the different possible segments in this regard.

. Taste conscious.

.Quality conscious.

. Class conscious.

. Combination of price and quality.

40
GEOGRAPHICAL SEGMENTATION:

KFC has outlets internationally and sells its products according to the geographic needs of
the customer. In India KFC focuses how geographically its customer demand different
products. In the north India chicken is the main selling product, while in the south the
veg.items sells more than the chicken.

Target market

.The process of evaluating each market segmentation attractiveness and selecting two or more
segments.
.As the outlets of KFC are in posh area and prices are too high(overhead expenses air
conditioning, employees) so KFC targets middle and upper classes. Target market depends
upon the size and growth rate of population, company resources and structural attractive of
market segmentation.

41
 1.6 COMPETITIVE ANALYSIS

Competitors

You cannot enjoy the business without competitors. No organization can afford to ignore
their competitors. It is very important for marketing managers to monitor the activities of
their competitors, what they are doing? KFC adopted such sort of strategy that there is no
competitor for spicy chicken, which is made by KFC.KFC beats its competitors through
the revising marketing strategy at every movement but the main competitor of KFC are
Mc Donald.

Because the fast food market in India is highly competitive, KFC faces a wide number of

direct and indirect competitors. KFC’s main competitors are fast food chains such as
McDonald’s and Domino’s, which are already well established throughout India
.McDonalds’s in particular is a direct competitor, as they have already successfully
introduced their Salads plus number of other competitors that is also focusing on aintain
o‘crheicvkeennb’ rtoypadeesnprthoediurcctus.stAolm
l tehrisbcaosm
e. pHeotiw
tioenvem
r,aw
keitshitthqeuiitnetrdoidffuiccutilot nfoor fKaFCnetowmand healthy
product range, KFC can differentiate itself from most competitors and will gain a
competitive advantage

How they compete from their competitors?

It is found that KFC compete its competitors by six ways:

KFC compete its competitors through marketing strategy

They offered different packages at different events like Holi offer, midnight offer etc.

KFC compete their competitors by providing good services.

They must hired the hard selling persons to market their product in the market and
motivate their employees for the sake of organizations and employees do well and they
compete their competitors KFC has quality products and through these quality products
they compete their competitors.

KFC is following Niche Marketing and Societal Marketing techniques.

42
 KFC possess a western culture because some of the Indian people are also following that
culture.

KFC are moving from Divisional Level to the District level by opening branches

Competitive analysis in the Marketing strategy of KFC

KFC is facing strong competition from McDonalds, Burger king, chicken sharwama
and many other local & national fast food companies. Also the local fast food joints
are givinghead on competition to KFC in the developing nations. In developed nations the
different
fast food outlets are eating up each other’s market share.

One of the major competitors of KFC is McDonalds and Subway. Both of them are in the
burger category and where McDonalds offers burgers, Subway offers sandwiches.
Subway is yet to reach its complete distribution potential but KFC and McDonalds are
constantly at loggerheads with their vast global presence.

Segmentation, targeting, positioning in the Marketing strategy of KFC

KFC (Kentucky Fried chicken) uses demographic segmentation to serve the market as per
the customer needs & wants. The consumers of KFC are the young as well as young
adults.

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 Mc Donalds
example, KFC has started localizing its menu, giving it better acceptability in the market.
Moreover it has transformed its positioning strategy from product based to value based in
recent times.

KFC is strongly positioned in the minds of consumers for its Chicken menu. There are
very few outlets which serve anything in vegetarian. But when it comes to non vegetarian,
KFC is just superb. Its chicken wings, and chicken bucket is a favorite with everyone. This
excellent targeting technique is the reason that most non vegetarian lovers flock at
KFC.

43
Competitive advantage in the Marketing strategy of KFC

Original recipe of fried chicken with secret blend of 11 herbs & spices have been the
driving 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 which has
helped KFC in increasing its 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 exposure & experience which is essential element
in and fast food industry’s success.

All form of the competition in sport as well in the business, are won by those with the
best advantages. The most popular ways to make the differences between themselves by
sharing an article, Kentucky Fried Chicken shared their product in many ways. They
made in the website and so many others way. They can get the competitive advantage by
hold their fried chicken tasted and use the secret recipe to achieve it. They sell food in a
fast, friendly environment that appeal to pride conscious health to mind the consumers.
That's their mission and they used the strategy to achieve them. These are the strategy of
KFC. They develop the product. For example make the better tasted or stayed on the
tastes before. They increased the variety on menu to make the costumer interested and
feel better if they choose Kentucky Fried Chicken as the place to have their food.
Introduced the desert menu and buffet to restaurant.

Even though KFC comes from United States, they also introduce on the neighborhood
program. The item targets are the African American like Greens, Macaroni and Cheese,
Peach cobbler, and Red beans & rice. About the place of the restaurant they choose all the
aspect public places like in mall, university, hospital, airport, stadium, amusement park,
office building, and mobile units. Kentucky Fried Chicken has evolved through different
organizational changes that brought because the changes of the ownership that followed
from the beginning of Kentucky Fried Chicken.

44
Their other strategy is working with to make improving the operating efficiencies. I
elimination of overhead cost and increased efficiency they were the center. KFC
emphasized customer service, and high-quality products. KFC is including the sales
company because they sell the products. As of 1995, Kentucky Fried Chicken was the
sixth ranked in the United States sales fast-food chains. This is the table of the Fast-Food
Chains:

Segmentation, targeting, positioning in the Marketing strategy of KFC

KFC (Kentucky Fried chicken) uses demographic segmentation to serve the market as per
the customer needs & wants. The consumers of KFC are the young as well as young
adults.

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 McDonald’s
example, KFC has started localising its menu, giving it better acceptability in the market.
Moreover it has transformed its positioning strategy from product based to value based in
recent times.

KFC is strongly positioned in the minds of consumers for its Chicken menu. There are
very few outlets which serve anything in vegetarian. But when it comes to non vegetarian,
KFC is just superb. Its chicken wings and chicken bucket is a favourite with everyone.
This excellent targeting technique is the reason that most non vegetarian lovers flock at
KFC.

45
Substitutes and Complements:

As mentioned above, there are a few major competitors in the fast-food industry in India

for KFC, namely McDonald’s, Pizza Hut, Domino's and Subway. The substitute products,
in this case, would be burgers, pizza, and sandwiches. Though they are competitors, their
primary products differ greatly from each other, in that they sell, chicken, burgers and
fries, pizzas, and sandwiches, respectively. Traditional Indian dining, home-cooked
meals, and grocery stores with ready-to-eat foods are also substitutes, as families could
choose any one of these over fast food for a meal. These substitutes are definitely
considered healthy as compared to the fast food chains. Even foods from street vendors
count as substitute goods. While other fast foods serve as substitute to KFC, they can
also serve as complements for fast foods as a whole. If the general price of fast foods
goes up ,
KFC’s price rises as well ,and the same can be said of the quantity sold of these products,
which make them complements to each other. KFC also sets up stores located near
popular tourist attractions, so tickets to these tourist spots are also complementary goods
because the more people tour these attractions, the more Customer KFC will get more
attracted towards the restaurant.

46
1.7 PEST ANALYSIS

The pest analysis includes the political, economical, socio-culture and technological
factor. These are describe in detail as under:

Political factor:

The political factor 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 India, the
countries where the business activities are being carries out KFC has handled this
situation very tactfully and has obeyed the policies of the Government as prescribed by
the Government in order to run this kind of business. The other major factor is the pricing
policies.KFC maintain &design its pricing policies keeping in the view of income and
distribution of the people living in the country. Kentucky Fried Chicken provides the fast-
food service. To achieve their goals they make a political system that can guide them or
they called as a guide service. This political system could change their business strategy
and make the progress to their company. For example, they have employee that run the
activity in the restaurant. They make a contract with the employee and make a pension
fee. They also provide the alternative in buying KFC. KFC Hospice Dinners that
delivering a caring outreach to the terminally ill. The Hospice delivers meals to the
terminally ill nationwide. These meals are delivered directly to the patient in their own
house. We always called that a delivery orders. The customers feel better when they
enjoyed this system. KFC Cafeterias which offering dishes competitors. And KFC
Grocery Products which The Cornel is always home.

Kentucky Fried Chicken is the legal company. They growth under the Yum! Brands.
They gather with Pizza Hut and Mc. Donald's that they are the food company. This
political analysis guides them to go overseas because the companies which want to going
international business are the legal company. They also can hold their recipe because it
has been legality so no one can steal it. In other hands, the employee also protect from the
stealing cooking recipes. Kentucky Fried Chicken Company can growth bigger and
bigger. They are legal so every activity is done in legal system.

47
Economical factor:

The economic factor 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 sometime changed their strategies and
started to target the mass market by introducing the some different kinds of meals and
offers through which we can say that they target the middle & the upper levels 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 method of the people. They check
whether this gives money in the form of cash or plastic money. If we talked about the
economy aspect, we talked about the fund or money. Kentucky Fried Chicken provides
the lower price. They have a food packet; just like we buy the packet we can get the
discount or something that support us to buy there again. In this economic analysis we
find the benefit of economical that changes the strategy of international business of
Kentucky Fried Chicken. They can grow up with the lower price and the satisfying
service.

Socio-culture Factor:

The social/cultural factor 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 Indian culture as they have to serve the people living India having entirely
different from other areas.

Kentucky Fried Chicken is one of the International Company which has begun their
company early and nowadays they are one of the biggest companies in the world. Why
the KFC can be the biggest company. Kentucky Fried Chicken built they social
connection with others organization or the company around the world. Beside that in their
restaurant, they also provide the food that the tasted is related with the tasted in the
country they took the place to build the restaurant. In addition about the employee, they
are worked the people from the country which are have a good performance and have a

48
talent in cooking for the chef. KFC also supported the many of events, they help the
committee by sponsored the event. Sometimes they give the donation to the poor
people. With this social activity the company will be known.

Kentucky Fried Chicken social analysis is one of the analyses that support the KFC
progress. They have social activities in their environment such as help the people, giving
the donation, etc. They built the social in their activity in their management system. For
example the employee, they have the small competition to build their togetherness in
doing their job. That was the social activity in the intern of company.

Now we talk about the international business activities they have connection to the
company around the world. Not only with the company they also have the connection
with the international organization. Therefore they can going to international business
through much challenge to achieve it.

And they get profit from the product that has been bought. Many people like Kentucky
Fried Chicken Company because they are not like the industrial Social is the one of the
important analysis that must be had by the company. Without social they can't run their
transaction because the socials are their customer company. KFC Company does not
disturb the public activity by make a noisy. They just invite the environment to come to
the restaurant to enjoy their food.

Technological Factor:

The technological factor include the pace change at as fast level.

Pace of change means rate of change. KFC has strategy to introduce the new technology
whenever they think that it is a time to introduce a 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.

In this analysis, Kentucky Fried Chicken can go out of their home country. They use the
modernization technology to advertise their product. They make a website of KFC so
easily we just search in internet what do we want about KFC and so many information
about KFC. There are also many transactions that do by internet and the KFC just
delivered the order to the customer address. In our country they have the phone number

49
that can contact if we want to order some food. Sometimes the customer lazy to go out to
buy some food, this is the reason they make an order delivered.

Without technology there are no companies can achieve their mission. They public the
update information about the company. Technology that they use in largely is using
internet because internet is the most popular to search the information in all aspect that
what we need. They made a website so we can browse easily. And also for delivering
order they need a technology. The first is to advertise their product; second they use the
machine to cook, using the vehicle to go to the customer place. Kentucky Fried Chicken
is one of the best companies. They become popular not also from the food but some of
them from the technological aspect. Sometimes from the television, banner or everything
that the KFC's advertisement was publish by using the technological analysis.

In additional, Kentucky Fried Chicken can compute all the probability even in loss or
profit. The technological is important to prove this statement. They have their own
software system to make their activity can run well. Nowadays every activity is using the
technological system. In cashier, kitchen, marketing, service, so many other activities

SWOT ANALYSIS OF KFC:

SWOT analysis mean strength, weakness, opportunities and threats are as follows:

STRENGTHS

Goodwill and reputation: The Company certainly has earned a good name and reputation
by its previous products and services in the market. It is even more recognized in other
markets outside India, where the company is among the leading fast food giants. The
brand is recognized and trusted in India for its quality products, price, and customer
service. It therefore has a good head start and enjoys a good chance of becoming a leader
in Indian fast food industry. Employee Loyalty: Employee Loyalty is one of the major
strengths of KFC. The turnover rate in the company is amongst the lowest in the
industry. Customer Loyalty: Despite gain by Boston Market and Chick-fill A, KFC
customer base remained loyal to the KFC brand because of its unique taste. KFC has
continued to dominate the dinner and take out segment of the Industry. Ranks highest
among all chicken restaurant chains for its convenience and menu variety. It
generates$1B revenue each year.

50
Strengths can be found internally in a company and can be used to the company’s
advantage. The strengths identified are as follows:

KFC’S secret recipe. The secret recipe has long been a source of advertising, and allowed

KFC to set itself apart. Also, KFC was the first chain to enter the fast-food industry, just
before McDonalds, which opened its first store a year later, and the "secret recipe" was
the initial home replacement strategy.

Name recognition and reputation. KFCs early entrance into the fast-food industry in
1954allowed KFC to develop strong brand name recognition and a strong foothold in the
industry. The Colonel is KFCs original owner and a very recognizable figure, both in the
U.S. and internationally, in their new logo. In fact, in the fourth annual Logo Value
Survey, done by The Schechter Group, the KFC logo was the only one which
significantly enhances the brands image.

WEAKNESSES:

KFC was losing market share as other Chicken chain increased sales at a faster rate. KFC
share of Chicken Segment sales fell from 71 percent 1999, to less than 56percent in 2009,
a 10-years drop of 15 percent. Huge competition in this segment. India is still mostly a
vegetarian and dominated cultured society. South India is especially very much so. This
may reduce the market share of the company. KFC has not yet invested much on
R&D,and innovating new products for Indian Markets. This may lead to failure of their
products as they are not in line with the Indian mind set, peoples taste and preferences
and their likes and dislikes. This may prove fatal for the company.

Weaknesses are also found internally like strengths. Weaknesses, however, can limit a

company’s potential. The weaknesses for KFC are identified as follows:1. The many sales
of KFC lead to a confusing corporate direction. Between 1971 and 1986, KFC was sold
three times. The first two sales, to Heublein, Inc and to R.J. Reynolds, left the company
largely autonomous. It wasn’t until the sale to PepsiCo in 1986 that changes in top
management started to take place. These changes happened almost immediately after the
sale.2. KFC has a long time to market with new products. Because of the nature of the
chicken segment of the fast food industry, innovation was never a primary strategy for
KFC. However, during the late 1980s, other fast food chains, such as McDonalds, began
to offer chicken as a menu option. During this time, McDonalds had already introduced

51
the Mc Chicken while KFC was still testing its own chicken sandwich. This delay
significantly increased the cost of developing consumer awareness for the KFCsandwich.
Conflicting cultures of KFC and Pepsi Co.

While KFCs culture was largely based on the Colonels laid back approach to
management, while Pepsi-co culture is more of a "fast track" attitude. Employees do not
have the same level of job security that they enjoyed before the PepsiCo acquisition.4.
Turnover in top management. PepsiCo bought KFC in 1986. By the summer of
1990PepsiCos own management had replaced all of the top KFC managers. However, by
1995 most of this new PepsiCo management had either left the company or been moved
to a different division. In addition, Kyle Craig, who was named president of KFCs US
operations in1990, left in 1994 to join Boston Market. Recent contractual disputes with
franchisees in the United States. This is also an example of the conflicting cultures of
KFC and PepsiCo. KFCs franchisees had been used to little interference from corporate
offices. In 1989, the CEO announced new contract changes - the first in thirteen years.
"The new contract gave PepsiCo management greater power to take over weak franchises,
to re locate restaurants, and to make changes in existing restaurants"(Wright, p.434). The
franchisees protested these changes and the relationship between the corporate KFC and
the franchisees in the United States have been strained ever since this announcement.

OPPURTUNITIES

New Markets: Globalization has opened doors for new markets for the company. As the
developed markets are

Mostly saturated, the developing countries like India and China promises a good market
and generation of demand in the future. With more than 70% of the markets in India
being unexplored and un-organized, KFC has a good scope of expanding its operations in
the country. Cross Culture: Generally there is a good acceptance of American culture of
fast food in India. People are opening up to fast foods more regularly in their daily lives
and not just keeping it a once in a month affair. Thus Indian mindset is fast changing.
Large Youth population: India has a very large share of youth population a compared to
other countries. More than 60% of the population is under the age of 30yrs. As the young

52
generation is more open to fast foods and demands it more, this is good news for the
company. New variety: Company can also come up with new variety in the menu
like Pizzas, garlic breads to attract customer. . As the developed markets are mostly
saturated, the developing countries like India and China promises a good market and
generation of demand in the future. With more than 85% of the markets in India
being unexplored and un organized, KFC has a good scope Cross Culture of
expanding its operations in the country. Generally there is a good acceptance of
American culture of fast food in India. People are opening up to fast foods more
regularly in their daily lives and not just keeping it a once in a month affair. Thus
Large Youth population: India has a Indian mindset is fast changing. Very large
share of youth population a compared to other countries. More than 60% of the
population is under the age of 30yrs. As the young generation is more open to fast
foods and demands it more, this is a good news New variety: Company can
also come up with for the company. New variety in the menu like Pizzas, garlic breads to
attract more customers.

THREATS

Competition: Competitor companies like McDonalds are fast catching up with the market.
McDonald’s with sales of more than 19 billion in 1999, accounted for 15 percent of the
sales of the nation’s top 100 restaurant chains. Organizations’ like PETA People for
Ethnic Treatment for Animals have given a bad name to the company which may prove
disastrous to the image of the firm. Currently, KFC is under massive attacks from animal
organizations, questioning the way KFC’s suppliers are threatening the chicken, before
they go slaughtered. Anti-KFC campaigns, such as the one from PETA are affecting
KFC’s brand image in a negative way and result in direct dollar losses, as less people

are consuming KFC chicken.

Saturated US Market: Now KFC cannot rely on just its home market to generate sales. As
the US markets are already saturated and leave no or little scope for growth, company
necessarily needs to look at offshore foreign markets to generate sales and keep up the
profit.. Ethnic Treatment for Animals have given a bad name to the company which may
prove disastrous to the image of the firm. Currently, KFC is under massive attacks from
animal organizations, questioning the way KFC’s suppliers are threatening the chicken,
before they got slaughtered. Anti-KFC campaigns, such as the one from PETA are
affecting KFC’s brand image in a negative way and result in direct dollar losses, as

53
 Saturated US less people are consuming KFC chicken. Market: Now KFC cannot rely on
just its home market to generate sales. As the US markets are already saturated and leave
no or little scope for growth, company necessarily needs to look at offshore foreign
markets to generate sales and keep up the profits.

PORTER FIVE FORCE THORY

1. BUYER POWER.

2. SUPPLIR POWER.

3. THE THREAT OF NEW ENTRANT.

4. THE THREAT OF SUBSTITUTE PRODUCT.

5. THE RIVALRY AMONG THE EXISTANCE FIRM IN THE INDUSTRY.

BUYER POWER:

1. The factor of a lot of competitors such as McDonalds, KFC, Pizza Hut, and Burger
King. The loyal and potential customer of customer starting to declined and this caused a
big loss to the KFC.

2. Customer can go to any fast food restaurants that offered more affordable price
especially to students which requiring a lot of money to survived.

3. To attract their consumers back, KFC start to decreases their prices and give a discount
of their products to the consumers.

4. KFC reward ‘My KFC card programmed’ to their loyal customer. By this card, the
customer is able to get as discount as much as 5% and also exclusive VIP offers.

5. So, the buyer power of KFC is high when this is proved that the consumer able to
influence the priced when they has many choices.

54
SUPPLIERS POWERS

1. There are lot of suppliers available for KFC;s raw materials. KFC can easily switch
their supplier to another supplier since the materials need in the process producing KFC is
easily to get chicken.

2. KFC decided to terminated the contract between them and thus find the new supplier to
replace them. So, chicken supplier can’t easily increase the price for chicken since their
supplier power is low.

3. In 2004, KFC has some internal problems and issue regarding of their raw chicken
supplier. KFC;s supplier found doing something horrible when slaughtering the chicken.

4. Other then the KFC also binding a contract with Pepsi. Co for supplying carbonate
water to KFC,s customer.

5. In the contract, KFC has promised to pepsi.co that they won’t have any business related
with carbonate drinks such as Coca cola.

6. In the same time, Pepsi do supplies their drinks to the competitors of KFC. This is
lowering down the price of KFC.

THE THREAT OF NEW ENTRANT

1. There is lot of substitute product offered to the consumer. Radix Fried chicken which is
almost similar to KFC has grabbed the customer attention to switching their taste to
something that are fresher than KFC to find something differences.

2. Radix Fried chickens main product is chicken. So the existences of Radix Fried
chicken have become a new rival to KFC.

3. The Radix chicken was founded in 2008 while KFC was founded in 1930.

THE THREAT OF SUBSTITUTE PRODUCT

1. KFC has find another alternatives to reduce the threat of substitute products by
providing KFC a. m where there are operating in the morning to provide breakfast for
customer.

55
2. Other than that, they also providing free wi-fi for their customer who eats in their
franchise. This will attract and also make the customer comfortable since they can
easily surfing the Internet. KFC also open for 24 hours.

3. The will easier the customer who starving at the late of night to find some food. In
certain place, KFC also provide drive thru service to those who are rushing.

THE RIVALRY AMONG THE EXISTENCES FIRM IN THE INDUSTRY

1. In India fast food industry, McDonald ranked as the most favorite fast food in India and
follow by KFC and Pizza HUT.

2. McDonald that has been developed since 1980 has become a closest rival of KFC.

3. KFC has implement loyalty program to attract the consumer attention to their brand.
They have providing their customers a card to kids. The card useful to obtain a discount
in KFC.

VISION AND MISSION STATEMENT

MISSION

To Sell Food In A Fast, Friendly Environment That Appeals To Pride Conscious Health
Minded Consumes.

VISSION

Our passion, as a restaurant company, is to put a yum on people faces around the world.

Satisisying customer every time they eat our food and doing it better than any other
restaurant company. The unique eating experiences at each of our restaurants make our
customer smile and inspire their loyalty for life. Toward that end, our associate around the
world are trained to be customer maniacs.

56
 CHAPTER 2

RESEARCH METHODOLGY

The research methodology is an approach which encompasses of several issues including

problems, constrictions and ethical preferences within the research. The methodology is
the speculative examination of the methods that are appropriate to a specific field of
study.

To achieve the objectives and goals of the research, selection of methodology is essential
and is indispensable for investigation and analysis. Keeping in consideration the quality
of services provided by the organization the "onion theory", plays an important role in
determining the philosophy, approaches, strategies, time horizon and the data collection
methods.

Research is a systematized effort to gain knowledge. Methodology is the most important

part for such studies. The method of study adopted by me is to increase the knowledge &
to gather more information regarding this project.

The major emphasis in such studies is on the discovery of the ideas and fruitful relevant
information. As such the research design appropriate for such studies most be flexible
enough to provide opportunities for considering different aspect of a problem under case
study.

57
 2.1 OBJECTIVES OF STUDY

One of the major objectives of KFC that they run their campaign in such a way that KFC
creates and image in the minds of customers that customers want to go in KFC and will
be the first choice for the customers. KFC wants to become the first choice because its
they become the first choice it is excellent for the health of the KFC business because if
business is expands then there is eliminate scope and the opportunity to get the maximum
profit and utility.

To identify and analyze the various components of the service experience rendered by
McDonald’s to its customer.

To analyze the impact of service experience on customers at McDonald’s.

To study the challenges in maintaining and improving the service experience rendered by
McDonald’s.

Strategic objectives:

1. Expansion in to all major urban cities resulting in market leadership.

2. Multi-brand Innovation and becoming a top of the mind brand in fast food industry.

3. Market leader in terms of employee welfare and customer satisfaction

4. Financial objectives:

Strong cash Generation and Returns.

Increasing the profit margin from 11% to 17% through improved operations and reduced
overhead cost.

58
2.2 Data collection methods

If the researcher wants to use some data for a particular purpose, he may use either the
primary data or secondary data. Primary data is collected by the researcher himself for
a particular purpose. Secondary data will be collected for other purposes.

Data Collection:

The two kinds of data collection used for the study of customer satisfaction are:

1. Primary data
2. Secondary data

Primary data:

It is the collection of data during the course of the study or through direct

Communication with the respondent in one or the other form. The collection of

data in this chapter is done by the means of Questionnaire. The questionnaire

is formulated by keeping in mind the objectives of the research. Primary data

are basically the first hand information collected through various methods such

as observation, interview and mailing.

Secondary data:

Secondary data is used to strengthen the primary data by referring the

Company reports, books, websites and customer reviews.

Sample Design:

The sample size for the data collection is 100.

All respondent are responses from R mall (Thane) KFC outlet.

59
Sampling Method:

Random sampling method is used for the purpose of arriving at a sample size.

2.3 Limitation of study:

1. Time Constraints

2. Area Constraints

3. Lack of respondent interest

4. Place Constraints

5. Lack of Subject Knowledge of respondent

Hypothesis

1. Null Hypothesis:-

Marketing strategy of KFC is not effective.

2. Alternative Hypothesis:-

Marketing strategy of KFC is effective.

2.4 Scope of study

1. The study helps the company to prepare a definite brand positioning and market
penetration policies.

2. The study helps the company to find out present customer attitudes.

3. The study helps to get an idea about the latest market share of each company.

4. The study helps company to meet the customer queries doubts by introducing proper
customer relation techniques.

60
CHAPTER 3

Literature review

1. The Literature review is the work of syntheses "". The literature review is an attempt to
summarize the existing state of knowledge about a subject and, in research proposals, to
frame the proposed research's expected involvement to knowledge. Literature review enables
the researcher to position research in a large context by determining on overall review of the
body of research and revealing the work that already being done and reported.

The fundamental variables contribution to customer satisfaction in store about The Quality,
and Environment can be ultimately enhanced but the service offered eventually provide
business a competitive advantage.

2. Steven & Thomas, 1994 the predominance of evidence in the accessible Literature on the
marketing of services has identified the critical role of Service quality and satisfaction in the
formation of customer purchase retention.

3. Rust & Oliver, 1994 Understanding the relationship between the customers Satisfaction
and service quality is crucial for the effective management of any business institution.

4. Biter & Hulbert, 1994 However drive for the product and service apparent worldwide
but the increasing customer satisfaction has become corporate goal for the business.

5. Bolton & Drew, 1994 the development of better understanding of how service quality
perception and consumer satisfaction judgment interacts and influence each other on
consumer purchase intention is a key challenge face by current services in marketing
discipline.

6. B-10: 9788132109785, published in 2012 SAGE Publications) by Ajit Rao and

Subhash Chandra.
This book works in that direction by explaining the principles of customer
satisfaction in a brief yet powerful manner. It will help the readers build relevant and
actionable customer satisfaction programs for their organization. The book begins by going
over the concepts of customer satisfaction measurement. It then dwells on the various kinds
of tools available to organizations to capture customer satisfaction. Further, the book also
deals with two major aspects with which many organizations are trying to come to grips, how
do we align or link brand research with customer satisfaction research? How do we connect

61
survey research with internal databases to generate great insights for organizations? The book
also discusses, how the entire data from such programs can be made very actionable using
simple techniques

7. ‘Amaze Every Customer Every Time’, (ISBN -10: 1626340099, published in 2013
Greenleaf Book Group LLC) by Shep Hyken. This book explains how consistently
amazing customers through stellar service can elevate your company from good to great. All
transformations require a role model, and Shep has found the perfect role model to inspire
your team: Ace Hardware. Ace was named as one of the top ten customer service brands in
America by Business week and ranked highest in its industry for customer satisfaction.
Through revealing stories from Ace's over-the-top work with customers, Shep explores the
five tactical areas of customer amazement: leadership, culture, one-on-one, competitive edge,
and community. Delivering amazing service requires everyone in your organization to step up
and be a leader. It doesn't take a title. It takes the right set of tools and principles.

8. Measuring Customer Satisfaction and Loyalty’ (ISBN10: 8122427995, published in

2010 New Age International Private Limited) by Bob Hayes. Its detailed information about
how to construct, evaluate and use questionnaires and adds an entirely new chapter on
customer loyalty. Included are two different methods of sampling and determining an
appropriate sample size for reliable results; the reliability and validity of results; real examples
of customer satisfaction measures and how they can be used; guidelines for developing
questionnaires; scale development; the concept of quality; frequencies; sampling error; two
methods of determining important service or product characteristics as perceived by the
customer; discussion on the measurement and meaning of customer loyalty and methods for
loyalty-based management.

9. Customer Satisfaction Evaluation: Methods for Measuring and Implementing Service

Quality (ISBN-10: 9781441916396, Published in 2009 Springer publication of
Grigoroudis . This important new work provides a comprehensive discussion of the customer
satisfaction evaluation problem. It presents an overview of the existing methodologies as well
as the development and implementation of original multi criteria.

62
Chapter 4

Data Interpretation & Analysis

1. Do you know about KFC?

Sr. no. Option

No. of respondents

1. Yes 79.90%

2. No 20.10%

20.10%

Yes
No

79.90%

Interpretation:-

As per the analysis 79.90% People Says know about KFC whereas 20.10% Peoples Says
doesn’t know about KFC.

63
2. How do you come to know about KFC?

Sr no. Option No. of respondents

1. Advertisement 25.40%

2. Social media 40.30%

3. Internet 20.10%

4. Colleague 14.20%

14.20%

25.40%

Advertisement
Social Media
20.10%
Internet
Colleague

40.30%

Interpretation:-

As per the analysis 25.40% People Says Advertisement. And 40.30% People

Says Social Media And 20.10% People Says Internet And 14.20% People Says The
Colleague

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 3. Have you ever eaten at KFC?

Sr no. Option No. of respondents

1. Yes 70.90%

2. No 29.10

29.10%

Yes
No

70.90%

Interpretation:-

As per the analysis Show 70.90% People Have Eaten The Chicken In KFC. And 29.10%
They Have No Tried It.

65
4. Which Fast food restaurant do you feel give you the best value?

Sr. no Option No. of Respondents

1. Burger King 15%

2. McDonald’s 45.60%

3. KFC. 39.40%

15%

39.40%
Burger King
McDonald's
KFC

45.60%

Interpretation:-

As per the analysis 15% People Are Choose Burger king And 45.60% People Say

McDonald’s and 39.40% People Say The KFC

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 5. What would be the main reasons you choose KFC?

Sr.no. Option No. of Respondents

1. To eat chicken 38.40%

2. Quality of service 21.10%

3. Convenience 12.1%

4. Price 28.40%

28.40%
38.40% To eat chicken
Quality of service
Convenience
Pirce
12.10%

21.10%

Interpretation:-

As per the analysis 38.40% People Come To Eat Chicken and 21.10 People Come

Because Service Quality They Provide, 12.10% People Come Because They Price Are
Comfortable.

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6. Do you view KFC as Family Restaurant?

Sr.no Option No. of respondents

1. Yes 80.60%

2. No 19.40%

19.40%

Yes
No

80.60%

Interpretation:-

As per the analysis 80.60% People Say the Yes Whereas 19.40% People say no.

68
7. Dose the logo attracts you?
No. of respondents
Sr.no Option
55.60%
1. Yes
15.63%
2. No
28.77%
3. Somewhat

28.77%

Yes
No
55.60% Some what

15.63%

Interpretation:-

As per the analysis 55.60% People Says Yes. And 15.63% People Says No.

And 28.77% People Say Some What.

69
 8. What factors affect your purchase decision?

Sr.no Option No of respondents

1. Location 30.20%

2. Price 40.10%

3. Family/ friend 15.40%

4. Advertisement 14.40%

14.40%

30.20%
Location
15.40% Price
Family /Friend
Advertisement

40.00%

Interpretation:-

As per the analysis 30.20% People Says Near the Location. 40.10% People Says

Price And 15.40% Says Family / Friends And 14.40% People Says the Advertisement.

70
9. Do you think KFC should start home delivery?

Sr.no Option No. of respondents

1. Yes 53.70%
2. No
46.30%

46.30% Yes
No
53.70%

Interpretation:-

As per the analysis 53.70% People Says the Yes. Whereas 46.30% People Say don’t know.

71
10. Which area must KFC should improve for its marketing?

No. of respondents
Sr.no Option
40.40%
1. Advertising
15.20%
2. Personalized Service

3. Sales promotions 15.10%

4. Ambiance 29.30%

29.30%
40.40% Advertising
Personalized service
Sales promotions
Ambiance

15.10%

15.20%

Interpretation:-

As per the analysis 40.40% People Says Advertising Import. And 15.20% People

Personalized Service. And 15.10% Are People Says Sales Promotion. And 29.30% People
Saw

Ambiance

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11. Please rank the follow by KFC?

Sr.no Option No. of respondents

1. Brand awareness 30.12%

2. Service 29.30%

3. Product 20.30%

4. Advertisement 20.28%

20.28%
30.12%
Brand awareness
Service
Product
20.30% Advertisement

29.30%

Interpretation:-

As per the analysis 30.12% People Follow The Brand Awareness. And 29.30% People
Follow Rate Service. And 20.30% People Follow The Product And 20.28% People Says
Follow Advertisement.

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CHAPTER 5

CONCLUSION

Finally we can understand with the case that every business organization should understand
the importance ethics by understanding the culture, regulatory,& ecological issues in different
countries.

KFC should implement farm level guideline & audit

Program- a program which is industry leading in the area of poultry care and handling,
mainly for their supplier in their broiler industry.

If we research all the explanation about Kentucky Fried Chicken Company we can conclude
that they are the big company which has been known around the world. They have a good
management, secret recipe, international business strategy that supports KFC to be adhered in
the customer's mind. They gather all the aspect to make them perfect. They have PEST
analysis. These are the things that guide the company to be better and hope they can make the
perfect company or at least can reach the brighter future.

After my research of KFC, I come to conclusion that KFC has a good product as far as
chicken items are concerned. But they have to increase other varieties to attract the

customers. And they must targets the children, as McDonald’s targeting by making a play
land because children are the main source and important ones to push their parents to go to
their favorite restaurants. And one more aspect for KFC is that it must also reduce their
prices to compete their competitors like McDonald, Crisps Pins and Pizza Hut.

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CHAPTER 6

RECOMMENDATION & SUGGESTION

KFC is a market leader in providing Fried chicken. As KFC, so it is competing with the
prominent market signs like pizza hut, McDonalds. And 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.

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CHAPTER 7

Bibliography/ Webliography

Books:-

1. How to Measure Customer Satisfaction

Author - Graham Roberts-Phelps.

2. Customer Satisfaction: The Customer Experience through the Customer's Eyes

Author - Nigel Hill, Greg Roche,

3. Customer Satisfaction is Worthless

Author - Jeffrey Gitomer.

4. Delivering Happiness

Author - Tony Hsieh

Articles:-

Business Today, 22 May, 2007

The Times of India, Mumbai.

WEBSITE:

www.kfc.com

www.yum.com

www.datamonitor.com

www.ebscohost.com

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Annexure- I(Questionnaire)

Dear sir/madam I am Abhishek Lawleshkumar Tiwari conducting a survey on

marketing strategy of KFC .The data collected should be only for survey purpose. It
will be kept confidential.

Name:-

Age:-

QUESTIONAIRE

1. Do you know about KFC?

a. Yes b. No

2. How do you come to know about KFC?

a .Advertisement

b. Social media

c. Internet

d. Colleague

3. Have you ever eaten at KFC?

a. Yes b. No

4. Which fast food restaurant do you feel give you the best value?

a. Burger King b. McDonald’s c. KFC

5. What would be the main reasons you choose KFC?

a. To eat chicken b. Quality of service c. Convenience d. Price 6. Do you view

KFC as a family restaurant?

a. Yes b. No

7. Does the logo attract you?

a. Yes b. No c. Some what

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8. What factors affect your purchase decision?

a. Location

b. Price

c. Family / Friend

d. Advertisement

9. Do you think KFC should start home delivery?

a. Yes

b. No

10. Which area must KFC should improve for its marketing?

a. Advertising

b. personalized service

c. Sales promotion

d. Ambiance

11. Please rank the follow by KFC?

a. Brand awareness

b. Service

c. product

d. Advertisement

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