Influence of culture on the launch of KFC

BY:
MANSOOR ALAM G-20
MOHIT KUKREJA G-21
MOHIT SINGHAL G-22
PUSHPITA BENERJI G-36
RASHMI KAUSHIK G-37
RICHA GUPTA G-38
 $105 to a $13 Billion Brand: KFC
 The world’s most popular chicken restaurant chain was
Founded founded in Kentucky, Louisville state of US.
by
 Col. Sanders started franchising his recipe door to door
Colonel financed by $105.00
Harland
Sanders  Sold his interest to Massey & Brown for $2 million
 More than 11,000 outlets spanning 85 countries and
in 1952
territories around the world.
 Currently KFC is owned by Yum Brands, Inc. which is the
world's largest restaurant company in terms of system
units with nearly 32,500 in more than 100 countries and
territories.

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 KFC’s entry in India:

 KFC entered India in 1995 and has been in midst of

controversies since then.
 KFC opened its first fast-food outlet in Bangalore in June
1995
 Though the contribution from Indian market to the total
KFC turnover is a miniscule amount, they rate India as the
number one player potential wise.
 Currently KFC is enjoying a year-on-year growth of 100
percent.

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 Problems faced by KFC

 Protests by farmers led by the Karnataka Rajya Ryote

Sangha(KRRS) & the farmers leader was Nanjundaswamy
who used the term ‘junk food’ against KFC.
 Protests by PETA in the late 1990s.
 A case in point is KFC. KFC entered India in 1995, but a
controversy surrounding the levels of MSG (Magnesium
Sodium Glutamate) in its preparations and subsequent
protests from farmers' groups and animal rights activists
spelt trouble for the company.

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 Product
 KFC's specialty is fried chicken served in various
forms.
 KFC's primary product is pressure-fried pieces of
chicken made with the original recipe.
 They serve their primary product in various forms
according to the need of the customer.
 Like:
 Zinger Burger
 Chicken Snacker
 Hot Wings
 Chicken Thali
 Etc…..

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 Products in US
 The original recipe chicken remains the same but the way
it is served varies.
 Like they serve chicken bowls instead of thalis. These
chicken bowls are served along with rice or noodles
depending on the choice of customer.
 They also have trans fat chicken for health conscious
people.
 Chicken sandwiches & salads are also served.

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 PRICE
 Chicken Snacker – Rs. 29
 3 pcs. Hot Wings – Rs. 35
 3 pcs. Boneless Chicken Strips – Rs. 75
 Many combo meals – Rs. 129 to Rs.159

 On analysing the prices we will find that

it has priced its products according to
its target customers and their cost of
living.
 Generally they target whole families
rather than single persons. This being
the reason for their Family Meals which
are basically bundled items served at a
nominally cheaper rate.

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 PRICE in US
 Fiery Grilled wings - $19.99
 Chicken Sandwich - $5
 KFC Snacker - $1
 Chicken Salad - $2.99

 Just notice the difference in the prices of

India and the US, its almost double the
amount it is in India.

 Factors effecting pricing can be:

 Income effect
 Willingness to spend.

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 Place
 Stores located in posh areas like shopping complex,
malls & multiplexes.
 Through such placement of their stores they are able
to cater a wide variety of there target customers & all
at the same place.
 Given the competitive nature of fast food joints, KFC
uses the “Push Strategy” to help them create:  
• Awareness
• Be different
• Sound attractive

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 Place in US
 Located mostly in Office areas so as to cater to the
needs of the working people.
 Also present in strategic locations like filling stations
and highways.
 Its locations can be found operating as free-standing
units and kiosks in high-traffic areas. 

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 Promotion
 At KFC, Promotion is the main tool to bring all chicken
lovers attention towards its delicious one-of-a-kind
product, the Fried Chicken.
 The logo of the smiling Colonel is probably one of the
most recognized faces in the world and instantly
brings the image of fried chicken to one’s mind.
 The company anthem “finger linkin good” is just a
wake up call to the consumer to remind them how
good they felt the last time they ate KFC chicken.

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 Promotion in US
In US they offer the service of free home delivery as well
as the internet booking facility.

Also advertised via newspapers and pamphlets which is

not yet practiced in India.

It uses social networking sites and free meal happy

hours in order to promote its brand name.

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 Cultural factors in India that went against KFC:

 Believed to be expensive …….. no value for money.

 Wanted to position itself as a “family restaurant” , not
as a “teenage hangout”.
 Ambience was missing.
 Perceived differences in eating habits.
 Tried to target the vegetarian segment. However this
backfired as in India having veg food cooked in a non
vegetarian kitchen doesn’t come out well with the
vegetarian segment.

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 Cultural factors contributing to KFC’S “success” in India:

 Reducing the psychic distance by handling over of

operations to local people so that customers could
relate to them more easily.
 Able to adapt to cultural differences, tastes and
preferences. For example keeping in mind the Indian
tastes buds KFC launched a fierier “ZINGER
BURGER”.
 Price sensitivity of the two economies drove KFC to
introduce menus that were easy on the consumer’s
pocket.

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 Indian School of Lickonomics
 Drool 1:
It takes one secret to make something unique, we
use 11.

 Drool 2:
Unity is good, Diversity is better; use separate oil &
utensils for vegetarian food.

 Drool 3:
Morning freshness, no matter what time of the day
it is, freshly prepared chicken, cooked several
times in a day

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  Drool 4:
Use fresh chicken because life is already way too
processed.

 Drool 5:
Prepare vegetarian food separately because
chicken & mutter don’t get along.

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 Discouraging table manners
since 1930
Go Ahead!!!
Lick your fingers

Thank you.

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