$105 to a $13 Billion Brand: KFC

Founded by Colonel Harland Sanders in 1952

The worlds most popular chicken restaurant chain was founded in Kentucky, Louisville state of US. Col. Sanders started franchising his recipe door to door financed by $105.00 Sold his interest to Massey & Brown for $2 million More than 11,000 outlets spanning 85 countries and 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 is a franchisee.
The franchisee process is as follows:
Step 1 :- QUALIFICATION 2-3 WEEKS. Step 2 :- OPERATION INTERVIEW 3-5 WEEKS. Step 3 :- DISCOVERY DAY/APPROVAL 3 WEEKS. Step 4 :- SITE STRATEGY EXPLORATION 8-10 WEEKS. Step 5 :- SECURING SITE CONTROL 216 WEEKS.
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KFCs 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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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 doesnt come out well with the vegetarian segment.

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Cultural factors contributing to KFCS 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 consumers pocket.

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MCDONALDS
Leading food service retailer with more than 31000 local restaurants serving more than 58 million people in 118 countries each day.

Favorites-World Famous Fries, Big Mac, Quarter Pounder, Chicken McNuggets and Egg McMuffin.
Brand mission : Be our customer favorite place and way to eat.

Mc Donald's in India.
McDonalds entered India in 1996. McDonalds India has a joint venture with Connaught Plaza Restaurants and Hard Castle Restaurants. Connaught Plaza Restaurants manages operations in North India whereas Hard Castle Restaurants operates restaurants in Western India. Today it has 169 Restaurants across India.

BUSINESS MODEL .
CONTD

Franchise Model Only 15% of the total number of restaurants are owned by the Company. The remaining 85% is operated by franchises. Product Consistency By developing a sophisticated supplier networked operation and distribution system, the company has been able to achieve consistent product taste and quality across geographies

BUSINESS MODEL .
CONTD

Act like a retailer and think like a brand McDonalds focuses not only on delivering sales for the immediate present, but also protecting its long term brand reputation.

CONCLUSION
In India fast food market is strongly dominated by these 2 brands. But when it comes to comparing these two brands the following study brings us to a conclusion that as far as market presence and brand value is concerned McDonald's has definitely proved a point for themselves. But KFC who re entered in 2003 has shown a rapid progress and no wonder if in the coming years KFC overtakes McDonalds in the Indian market share. Time will be the evidence for this, but for now its Ronald McDonald who is sitting high atop compared to the Colonel.