International Business (MGT5189)

Section: 1
Semester: Spring 2014
Submitted To
Md. Musharuf Hossain Mollah
Assistant Professor of Marketing
& Coordinator (MBA) Friday Program
School of Business Studies
Southeast ni!ersity
Submitted By
Md. Arif "ur
#$% &'()'('''('&&
Batch% )) Section% B
Program% MBA (*egular)
Date of Submission:

April 24, 2014
S!T"#$ST !%I&#'SIT(
Letter of Transmitter
A+ril &,- &'(,
.o
Md. Musharuf Hossain Mollah
Assistant Professor of Marketing
& Coordinator (MBA) Friday Program
School of Business Studies
Southeast ni!ersity
Su/0ect% Su/mission of assignment on 1entucky Fried Chicken (1FC)
.
$ear Sir
# am delighted to su/mit my assignment on 1entucky Fried Chicken (1FC). # ha!e gi!en my
utmost effort to make a master +iece. But if there is any mistake +lease consider it 2ith regard.
# ho+e that you 2ill acce+t my ser!ice re+ort enthusiastically on 1entucky Fried Chicken (1FC)
Sincerely-
Md. Arif "ur
Bac)groun*
+entuc), -rie* ./ic)en (+-.)

1FC Cor+oration- /ased in 3ouis!ille- 1entucky- is the 2orld4s most +o+ular chicken restaurant
chain- s+eciali5ing in 6riginal *eci+e7- 89tra Cris+y7- 1entucky :rilled Chicken; and
6riginal *eci+e Stri+s 2ith home<style sides- Honey BB= >ings- and freshly made chicken
sand2iches.
8!ery day- more than (& million customers are ser!ed at 1FC restaurants in ('? countries and
territories around the 2orld. 1FC o+erates more than @-&'' restaurants in the nited States and
more than (@-''' units around the 2orld. 1FC is 2orld famous for its 6riginal *eci+e7 fried
chicken << made 2ith the same secret /lend of (( her/s and s+ices Colonel Harland Sanders
+erfected more than a half<century ago. Customers around the glo/e also en0oy more than )''
other +roducts << from 1entucky :rilled Chicken in the nited States to a salmon sand2ich in
Aa+an. #n &''B the Colonel has a ne2 lookC 1FC u+dates one of the most recogni5ed- res+ected
and /elo!ed /rand icons 2ith a ne2 logo. .he ne2 logo de+icts Colonel Sanders 2ith his
signature string tie- /ut for the first time- re+laces his classic 2hite- dou/le</reasted suit 2ith a
red a+ron. .he a+ron sym/oli5es the home<style culinary heritage of the /rand and reminds
customers that 1FC is al2ays in the kitchen cooking delicious- high<Duality- freshly +re+ared
chicken /y hand- 0ust the 2ay Colonel Sanders did @' years ago. 1FC is +art of EumC Brands-
#nc.- the 2orld4s largest restaurant com+any in terms of system restaurants- 2ith more than
)F-''' locations around the 2orld. .he com+any is ranked G&)? on the Fortune @'' 3ist- 2ith
re!enues in e9cess of H(( /illion in &''B. #n &''? 1FC introduces 1entucky :rilled Chicken; <
a /etter<for<you o+tion for health conscious consumers 2ho lo!e the fla!or of 1FC. 1entucky
:rilled Chicken has less calories- fat and sodium than 1FCIs 6riginal *eci+e7 chicken- 2ithout
sacrificing the great taste of 1FC.
+-. $nal,sis
1FC has a !ery long history and has the most recogni5a/le /rand in chicken. >ith o!er @'J of
the market share it /ecomes !ery difficult for ne2 com+anies 2ho may 2ant to enter the market.
1FC has name recognition around the 2orld and has /een glo/ally +ositioned for many years.
1FCs secret reci+e of (( her/s and s+ices has made it the leader in chicken for the last fifty
years. 1FC sells three reci+es% 6riginal reci+e- 89tra Cris+y- and .ender *oast.
.he many sales of 1FC during the (?K's and (?B's lead to a !ery confusing direction and took
the focus of the com+any off of its original strategy. $uring the (?B's and (??'s 1FC struggles
2ere much do to the ina/ility to /ring ne2 +roducts to the market Duickly and its inno!ation of
ne2 +roducts. 1FC fell /ehind the market in ne2 +roducts and 2as co+ying other fast food
chains to stay com+etiti!e. 1FC changed its strategy in the late (??'s- 2hich included adding
items to its menu. .he merger 2ith Pe+siCo 2as met 2ith large cultural issues as the 1FC
em+loyees 2ere used to the +re!ious strategy of a laid</ack- self<go!erning en!ironment- to an
en!ironment 2ho demanded tighter control o!er o+erations. 6ther segments of the industry are
turning to ne2 menu offerings. .hey /elie!ed the franchisees kne2 the /usiness /etter than they
did. .he second largest threat 2ould /e other chicken chains that are no2 adding other ty+es of
food to their +roduct lines.
.he largest threat 1FC is faced 2ith is the restaurant industry as a 2hole. .he consumer
continues to ha!e many choices 2hen it comes to fast food restaurants. By the year &''' only &K
+ercent of the restaurants 2ere com+any o2ned. .he cultural differences took the focus a2ay
from the chicken /usiness. 1FCIs target market of four +erson middle class families is not their
main consumer. .he main consumer of 1FC is a middle aged 2hite male.
.he loss of market share and slo2ing gro2th also 2as due to the many mergers they 2ent
through during a limited time +eriod. 1FC esta/lished units that sold /oth .aco Bell and 1FC or
1FC and Pi55a Hut. By the year &''' more than @' +ercent of 1FCs restaurants 2ere located
outside the nited States. As 2e 2ill address further in this re+ort 1FC is continuing to e9+and
in foreign markets- 2hich is one of EumCs goals for gro2th.
.ompan, In0ormation
T,pe: 2holly o2ned su/sidiary
In*ustr,: *estaurants
-oun*e*: (?)' (original) ("orth Cor/in- 1entucky)- (?@& (franchise) (South Salt 3ake- tah)
-oun*er(s): Harland Sanders
"ea*1uarters: 3ouis!ille- 1entucky- .S
+e, people: *oger 8aton- PresidentL Har!ey *. Bro2nlea- C66L Aames 64*eilly- MP for
Marketing
2ro*ucts: Fried chicken- grilled chicken- related Southern foods
'e3enue: H@&'.) million S$ (&''K)
#mplo,ees: &,-''' (&''K)
2arent: EumC Brands
4e5site: 1FC.com
+-. in Bangla*es/
.ranscom Foods 3imited- a concern of .ranscom :rou+ is the franchisee of 1FC in
Bangladesh.
.he first e!er 1FC restaurant has /een o+ened in Se+tem/er at :ulshan- $haka 2ith a
seating ca+acity of (KB +ersons.
1FC restaurant has /een o+ened in &''? at 3alkhan Ba5ar circle- Chittagong 2ith a
seating ca+acity of (&' +ersons.
#n the coming days- 1FC +lans roll out more restaurants in Bangladesh.
&alues
Focus all our resources to our restaurant o+erations /ecause that is 2here 2e ser!e our
customers.
*e2ard and res+ect the contri/utions of each indi!idual at 1FC.
89+and and u+date training 2ith time and /e the /est 2e can /e and more.
Be o+en- honest and direct in our dealings 2ith one another.
Commit oursel!es to the highest standards of +ersonal and +rofessional integrity at all
times.
8ncourage ne2 and inno!ati!e ideas /ecause these are the key to our com+etiti!e gro2th.
*e2ard results and not sim+le efforts.
$edicate oursel!es to continuous gro2th in sales- +rofit and si5e of organi5ation.
>ork as a team.
Goals o0 +-.
Build an organi5ation dedicated to e9cellence.
Consistently deli!er su+erior Duality and !alue in our +roducts and ser!ices.
Maintain a commitment to inno!ation for continuous im+ro!ement and gro2- stri!ing
al2ays to /e the leader in the market +lace changes.
:enerate consistently su+erior financial returns and /enefits our o2ner and em+loyees.
.o esta/lish in Pakistan our +osition as leading >=S* (>estern =uick Ser!ice
*estaurant) chain- ser!ing good !alue. #nno!ati!e chicken</ased +roducts.
Consistently- +ro!iding a +leasant dining e9+erience- 2ith fast friendly- in a clean and
con!enient location. At all times 2e must /e dedicated to +ro!iding e9cellent and
delighting customers.
6uestion an* $ns7er
6uestion 1:
4/o is t/e 0irm8s target mar)et9
$ns7er:
1FC 2ill /e using differentiated market co!erage strategy. #t means that different marketing mi9
2ill /e used for different age grou+s. .arget marketing tailors a marketing mi9 for one or more
segments identified /y market segmentation. .arget marketing contrasts 2ith mass marketing-
2hich offers a single +roduct to the entire market.
.2o im+ortant factors to consider 2hen selecting a target market segment are the attracti!eness
of the segment and the fit /et2een the segment and the firm4s o/0ecti!es- resources- and
ca+a/ilities.
Target Mar)et Selection
.he target customers of 1FC are mi9ed. #t /asically target higher class as 2ell as middle class
+eo+le. .here are different ty+es of customers like economic customers 2ho make +urchase
decision /ased +rimary on the +rice- +ersonali5ed customer consumers 2ho desire to /e
+am+ered and attended to and 2ho are much less +rice sensiti!e- a+athetic customers consumer
2ho seek con!enience o!er +rice and +ersonal attention.
Target Mar)et 0or -ast -oo*
After e!aluation of !arious segments- 1FC has decided to target the market of r/an and Su/<
ur/an Areas of Bangladesh.
Product usage
Peo+le are educated and they 2ant !ariety in their diet.
"ormally +eo+le of rural areas donIt take fast food. 6n the other hand +eo+le of ur/an
areas take fast food.
#ncome of the +eo+le of ur/an areas is normally high and they can afford to +urchase
such +roducts- 2hich are slightly higher in +rice as com+ared to +re!ailing +rices of local
food in the market.
Peo+le of r/an Areas are more Duality conscious than the +eo+le of *ural Areas.
#n r/an Area there li!ed +eo+le from e!ery 2alk of life and +rofit generation is easier
than in *ural Areas.
Po+ulation density is higher in r/an Areas as com+ared to *ural Areas- so the num/er
of customers is more in r/an Areas.
$ttracti3eness o0 a Mar)et Segment
.he follo2ing are some e9am+les of as+ects that should /e considered 2hen e!aluating the
attracti!eness of a market segment%
N Si5e of the segment (num/er of customers andOor num/er of units)
N :ro2th rate of the segment
N Com+etition in the segment
N Brand loyalty of e9isting customers in the segment
N Attaina/le market share gi!en +romotional /udget and com+etitors4 e9+enditures
N *eDuired market share to /reak e!en
N Sales +otential for the firm in the segment
N 89+ected +rofit margins in the segment
Market research and analysis is instrumental in o/taining this information. For e9am+le- /uyer
intentions- sales force estimates- test marketing- and statistical demand analysis are useful for
determining sales +otential. .he im+act of a++lica/le micro<en!ironmental and macro
en!ironmental !aria/les on the market segment should /e considered.
"ote that larger segments are not necessarily the most +rofita/le to target since they likely 2ill
ha!e more com+etition. #t may /e more +rofita/le to ser!e one or more smaller segments that
ha!e little com+etition. 6n the other hand- if the firm can de!elo+ a com+etiti!e ad!antage- for
e9am+le- !ia +atent +rotection- it may find it +rofita/le to +ursue a larger market segment.
Suita5ilit, o0 Mar)et Segments to t/e -irm
Market segments also should /e e!aluated according to ho2 they fit the firm4s o/0ecti!es-
resources- and ca+a/ilities. Some as+ects of fit include%
N >hether the firm can offer su+erior !alue to the customers in the segment
N .he im+act of ser!ing the segment on the firm4s image
N Access to distri/ution channels reDuired to ser!e the segment
N .he firm4s resources !s. ca+ital in!estment reDuired to ser!e the segment the /etter the firm4s fit
to a market segment and the more attracti!e the market segment- the greater the +rofit +otential
to the firm.
Target Mar)et Strategies
.here are se!eral different target<market strategies that may /e follo2ed. .argeting strategies
usually can /e categori5ed as one of the follo2ing%
N Single-segment strategy < also kno2n as a concentrated strategy. 6ne market segment (not the
entire market) is ser!ed 2ith one marketing mi9. A single<segment a++roach often is the strategy
of choice for smaller com+anies 2ith limited resources.
N Selective specialization< this is a multi+le<segment strategy- also kno2n as a differentiated
strategy. $ifferent marketing mi9es are offered to different segments. .he +roduct itself may or
may not /e different < in many cases only the +romotional message or distri/ution channels !ary.
N Product specialization< the firm s+eciali5es in a +articular +roduct and tailors it to different
market segments.
N Market specialization< the firm s+eciali5es in ser!ing a +articular market segment and offers
that segment an array of different +roducts.
N Full market coverage < the firm attem+ts to ser!e the entire market. .his co!erage can /e
achie!ed /y means of either a mass market strategy in 2hich a single undifferentiated marketing
mi9 is offered to the entire market- or /y a differentiated strategy in 2hich a se+arate marketing
mi9 is offered to each segment.
A firm that is seeking to enter a market and gro2 should first target the most attracti!e segment
that matches its ca+a/ilities. 6nce it gains a foothold- it can e9+and /y +ursuing a +roduct
s+eciali5ation strategy- tailoring the +roduct for different segments- or /y +ursuing a market
s+eciali5ation strategy and offering ne2 +roducts to its e9isting market segment. Another
strategy 2hose use is increasing is indi!idual marketing- in 2hich the marketing mi9 is tailored
on an indi!idual consumer /asis. >hile in the +ast im+ractical- indi!idual marketing is /ecoming
more !ia/le thanks to ad!ances in technology.
.he com+arison of 1FC in the 2orld2ide units

Yum! Brand
!e parent to "#$ %as started in &ctober ', 1(('
6uestion 2:
4/at *oes t/e target mar)et see) 0rom t/e ser3ice e:perience9
$ns7er:
.he target market seeks se!eral things from the ser!ice e9+erience. #f those are fulfilled
customers feel satisfied if not customer dissatisfaction occur. .he target customer of 1FC
e9+ects the follo2ing things from the ser!ice e9+erience.
1. +no7le*gea5le an* a3aila5le sta00% >hile a customer is making the /uying decision-
they 2ant kno2ledgea/le assistance- a!aila/le 2hen they 2ant it. Customers +lace a high
!alue on accurate information and 2ant to /e ser!ed /y em+loyees 2ho kno2 the +roduct
inside and out.
2. -rien*l, people: Customers not only 2ant +roduct<sa!!y sales +eo+le- they 2ant them
to /e friendly and courteous. Eour staff should !alue each customer more than any
indi!idual sale.
3. Goo* 3alue: .his is 2here +rice factors in. But customers sur!eyed see +rice as only one
com+onent of the /igger +icture of P!alueQ that includes the ser!ice- information and
follo2<u+ they also recei!e.
4. .on3enience: .he ser!ice rule here is sim+le% make it easyC Says :ross- PCustomers
2ant merchandise that is 2ell organi5ed- attracti!ely dis+layed and easy to find. .hatIs
ho2 todayIs customers define con!enience- and the easier you can make the sho++ing-
the more money you 2ill /e lugging to the /ank.Q
5. $ 0ast 0inis/: .his final item is 2here too many /usinesses fall flat- right at the finish
line. >hile customers are in the +rocess of deciding to /uy or not- they are +roceeding on
your time. .hey 2ant thoughtful hel+ making the right decisions. But once the /uying
decision is made- get out of their 2ay /ecause no2 you are 2orking on their time- and
they 2ant to com+lete the transaction and /e on their 2ay as Duickly as +ossi/le. At the
cash register- there is no time for making additional suggestions.
#f these are effecti!ely fulfilled- customers sho2 a desire to stay or further e9+lore the ser!ice
other2ise they 2ill a!oid it.
Ser3ice #n3ironment
-acilit, e:terior is the +hysical e9terior of the ser!ice facility that includes the e9terior design-
signage- +arking- landsca+ing and the surrounding en!ironment.
-acilit, interior is the +hysical interior of the ser!ice facility that includes the interior design-
eDui+ment used to ser!e customers- signage- layout- air Duality and tem+erature.
6uestion ;:
4/at atmosp/eric elements can rein0orce t/e 5elie0s an* emotional reactions
t/at 5u,ers see)9
$ns7er:
$ue to the intangi/ility of ser!ices- ser!ice Duality is difficult for consumers to o/0ecti!ely
e!aluate. As a result- consumers often rely on the tangi/le e!idence that surrounds the ser!ice to
hel+ them form their e!aluations. .he role of +hysical e!idence in the marketing of intangi/les is
multifaceted. Physical e!idence can fall into three /road categories%
a. Facility e9terior-
/. Facility interior-
c. 6ther tangi/les.
-acilit, e:terior is the +hysical e9terior of the ser!ice facility that includes the e9terior design-
signage- +arking- landsca+ing and the surrounding en!ironment.
-acilit, interior is the +hysical interior of the ser!ice facility that includes the interior design-
eDui+ment used to ser!e customers- signage- layout- air Duality and tem+erature.
t/er tangi5les are the +art of firmIs other +hysical e!idence such as /usiness cards- stationary-
/illing statements- re+orts- em+loyee a++earance- uniforms and /rochures.
.he use of +hysical e!idence to create ser!ice en!ironments and its influence on the +erce+tion
and /eha!iors of indi!iduals is referred to as en3ironmental ps,c/olog,. .he Stimulus<
rganism<'esponse (S') mo*el 2as de!elo+ed /y en!ironmental +sychologists to hel+
e9+lain the effects of the ser!ice en!ironment on consumer /eha!ior. .he S6* model consists of
three com+onents%
a. A set of stimuli-
/. An organism com+onent and
c. A set of responses or outcomes.
#n a ser!ice conte9t- the different elements of the firmIs +hysical e!idence- such as the e9terior-
interior design- lighting and so on that com+ose the set of stimuli. .he organism com+onent
2hich descri/es the reci+ients of the set of stimuli 2ithin the ser!ice encounter includes
em+loyees and customers. .he responses of em+loyees and customers to set of stimuli and
influenced /y three /asic emotional states%
a. Pleasure < dis+leasure-
/. Arousal < no arousal-
c. $ominance < su/missi!eness.
.he pleasure < *ispleasure emotional state reflects the degree to 2hich consumers and
em+loyees feel satisfied 2ith the ser!ice e9+erience.
.he arousal < no arousal emotional state reflects the degree to 2hich consumers and em+loyees
feel e9cited and stimulated.
.he *ominance < su5missi3eness emotional state reflects the degree to 2hich consumers and
em+loyees feel in control and a/le to act freely 2ithin the ser!ice en!ironment.
#deally- ser!ice firms should utili5e +hysical e!idence to /uild en!ironment that a++eal to
+leasure and arousal states and creating atmos+here that create su/missi!eness.
.heory asserts that customers and em+loyees are e9+osed to the set of stimuli that make u+ the
firmIs +ercei!ed Ser!ices ca+e and the res+onses to these stimuli are moderated /y emotional
states. Customers and em+loyees internally res+ond to the firmIs en!ironment at different le!els
R cogniti!ely- emotionally and +hysiologically.
.ogniti3e responses are the thought of indi!iduals and according to the model include /eliefs-
categori5ation and sym/olic meaning. Beliefs that states consumersI o+inions a/out the
+ro!iderIs a/ility to +erform the ser!ice. Categori5ation that states consumer assessment of the
+hysical e!idence and a Duick mental assignment of a firm to a kno2n grou+ of styles or ty+es.
Sym/olic meaning that inferred from the firmIs use of +hysical e!idence.
#motional responses to the firmIs +hysical en!ironment on an emotional le!el instead of an
intellectual or social le!el. Positi!e emotions that create atmos+heres in 2hich em+loyees lo!e to
2ork and customers 2ant to s+end their time and money.
2/,siological responses are often descri/ed in terms of +hysical +leasure or discomfort. .y+ical
+hysiological res+onses in!ol!e +ain and comfort. 3ike- en!ironments in 2hich music is +layed
!ery loudly that create discomfort for the customerL the lack of a nonsmoking section may cause
some customers in /reathing and further discomfort. #nstead of /eing arousing- en!ironments
that are /rightly lit may cause eye discomfort. All these res+onses determine 2hether a customer
2ill a++roach and e9+lore the firmIs offering or a!oid and lea!e the +remises to minimi5e the
amount of +hysiological discomfort.
ltimately- indi!iduals /ase their +erce+tions of a firmIs facilities on their inter+retation of
sensory cues. .he follo2ing section discusses ho2 firms can utili5e the senses of sight- sound-
touch and taste in creating sensory a++eal that enhances customer and em+loyee attraction
res+onses.
Sig/t $ppeals:
Sight a++eals can /e defined as the +rocess of inter+reting stimuli that a++eal to consumers are
si5e- sha+e and colors. Consumers inter+ret !isual stimuli in terms of !isual relationshi+s-
consisting of +erce+tions of harmony- contrast and clash. Harmony refers to !isual agreement
and is associated 2ith Duieter- +lusher and more formal /usiness settings. #n com+arison- contrast
and clash are associated 2ith e9citing- cheerful and informal /usiness settings.
Si=e perceptions are the actual si5e of the firmIs facility- signs and de+artments con!eys
different meaning to different markets. #n general- the larger the si5e of the firm and its
corres+onding +hysical e!idence- the more consumers associates the firm 2ith im+ortance-
+o2er- success- security and sta/ility. For many consumers- the larger the firm- the lo2er the
+ercei!ed risk associated 2ith the ser!ice +urchase. Such consumers /elie!e that larger firms are
more com+etent and more likely to engage in ser!ice reco!ery efforts 2hen +ro/lems do arise.
.olor perceptions are the color of the firmIs +hysical e!idence often makes the first im+ression-
2hether seen in the firmIs /rochure- the /usiness cards of its +ersonnel or the e9terior or interior
of the facility itself. .he +sychological im+act of color u+on indi!iduals is the result of three
+ro+erties% hue- !alue and intensity. Hue refers to the actual color such as red- /lue- yello2 or
green. Malue refers the lightness and darkness of the colors. $arker !alues are called shades and
lighter !alues are called tints. #ntensity refers the /rightness or dullness of the hue. 1FC focus on
red color /asically /ecause it is the sym/ol of a++etite.
T/e location o0 t/e -irm 2hich is de+endent u+on the amount of customer in!ol!ement
necessary to +roduce the ser!ice. >hile lo2 customers contact ser!ices should consider locating
in remote sites that are less e9+ensi!e and closer to sources of su++ly- trans+ortation and la/or-
high customer contact ser!ices ha!e other concerns.
T/e -irm8s $rc/itecture that states the architecture of the firmIs +hysical facility is often a
three 2ay trade off among the ty+e of design that 2ill attract the firmIs intended target market-
the ty+e of design that ma9imi5es the efficiency of the ser!ice +roduction +rocess and the ty+e of
design that is afforda/le. .he firmIs architecture con!eys a num/er of im+ressions as 2ell as
communicates information to its customers such as the nature of the firmIs /usiness.
T/e -irm8s Sign has t2o ma0or +ur+oses% to identify the firm and to attract attention. .he firmIs
sign is often the first PmarkQ of the firm that customer notices. All logos on the firmIs remaining
+hysical e!idence such as letterhead- /usiness cards and note cards should /e consistent 2ith the
firmIs sign to reinforce the firmIs image.
T/e -irm8s #ntrance and foyer areas can dramatically influence customer +erce+tions a/out the
firmIs acti!ities. >orn car+et- scuffed 2alls- un+rofessional net2ork- torn and outdated reading
materials and unskilled and unkem+t +ersonnel form one im+ression. #n contrast- neatly
a++ointed rece+tion areas- the creati!e use of colors- distincti!e furnishings and friendly and
+rofessional staff create a much different and more +ositi!e im+ression.
Soun* $ppeals:
Sound a++eals ha!e three ma0or roles% mood setter- attention gra//er and informer. Proacti!e
methods for +ur+osely inserting sound into the ser!ice encounter can /e accom+lished through
music and announcements. Music hel+s set the mood of the consumersI e9+erience 2hile
announcements can /e used to gra/ consumersI attention or to inform them of the firmIs
offerings. Sound can also /e a distraction to the consumersI e9+erienceL conseDuently- sound
a!oidance tactics should also /e considered.
Music in 2hich studies ha!e sho2n that /ackground music affects sales in at least t2o 2ays.
First- /ackground music enhances the customerIs +erce+tion of the storeIs atmos+here- 2hich in
turn influences the consumerIs mood. Second- music often influences the amount of time s+ent
in stores. #n one study- firms that +layed /ackground music in their facilities 2ere thought to care
more a/out their customers. Studies ha!e sho2n that in addition to creating a +ositi!e attitude-
music directly influences consumer /uying /eha!ior. Playing faster tem+o of the music increases
the +ace of consumer transactions. Slo2ly do2n the tem+o of the music encourages customers to
stay longerS Still other studies indicate that consumers find music distracting 2hen considering
high in!ol!ement +urchases- yet found that lo2 in!ol!ement +urchases made the choice +rocess
easier.
Soun* $3oi*ance 2hich +lans the firmIs facilities- it is as im+ortant to understand the a!oidance
of undesira/le sounds as it is to understand the creation of desira/le ones. $esira/le sounds
attract customers and undesira/le sounds distract from the firmIs o!erall atmos+here. 6ther
tactics for eliminating un2anted noise include installing dura/le hall2ay car+ets to eliminate the
distracting sounds of clicking heels- strategically +lacing loud central air conditioning units in
areas a2ay from those 2here the firm conducts the ma0ority of its /usiness and also installing
lo2er ceilings and sound a/sor/ing +artitions so that un2anted sounds can /e reduced e!en
further.
Scent $ppeals:
Sense of smell is our most accurate le!el of recall. So- scent a++eal is an im+ortant factor to
consider. >hat 2e smell is significantly more influential on our moods and emotions than any
other sense. 6ur sense of smell is the strongest of all human senses and the closest sense linked
to memory and emotion. *esearch has sho2n that +eo+le remem/er )@J of 2hat they smell-
com+ared 2ith only @J of 2hat they see- &J of 2hat they hear and (J of 2hat they touch. .his
*esearch clearly sho2s that scent enhances consumer +roduct memories.1FC 2hich +ro!ides
+leasura/le scents often induce customer to make more +urchases and can affect the +erce+tion
of +roducts that donIt naturally ha!e their o2n scent. 1FC +ro!ides +leasura/le scents for
making a friendly en!ironment for the em+loyees to 2ork effecti!ely and for the customers 1FC
+ro!ides +leasura/le scents that attract themsel!es to come more in 1FC.
Taste $ppeals:
.aste a++eal the final sensory cue- are the eDui!alent of +ro!iding the customer 2ith sam+les.
>ithin the ser!ice sector- the usefulness of the taste a++eals 2hen de!elo+ing the ser!ice
atmos+heres is de+end u+on the tangi/ility of the ser!ice. Ser!ice firm such as car2ash- dry
cleaners and restaurants may use taste a++eals to initially attract customers. >hile sam+ling
firms the firmIs ser!ices- the customer 2ill ha!e o++ortunity to o/ser!e the firms +hysical
e!idence and form +erce+tion regarding the firm and its +erformance ca+a/ilities. ConseDuently-
firms that use sam+lers should !ie2 this +rocess as an o++ortunity rather than as catering to a
/unch of +eo+le 2ho 2ant something for free.
6uestion 4:
"o7 *o t/ese same atmosp/eric elements a00ect emplo,ee satis0action an* t/e
0irm8s operations9
$ns7er:
.ogniti3e 'esponses:
Cogniti!e *es+onses are the thought +rocesses of indi!iduals and- according to the model-
include /eliefs- categori5ation- and sym/olic meaning. #n the formation of /eliefs- the firmIs
en!ironment acts as a form of non<!er/al communication and influences a customer /elie!e
a/out the +ro!iderIs a/ility to +erform the ser!ice. .hrough the +hysical e!idence- em+loyees
form /eliefs a/out the firm /ased on the o!erall +ercei!ed ser!ices ca+e. Beliefs that states
consumersI o+inions a/out the +ro!iderIs a/ility to +erform the ser!ice. Categori5ation that states
consumer assessment of the +hysical e!idence and a Duick mental assignment of a firm to a
kno2n grou+ of styles or ty+es. Sym/olic meaning that inferred from the firmIs use of +hysical
e!idence.
#motional 'esponses:
8motional *es+onses do not in!ol!e thinkingL they sim+ly ha++en- often ine9+lica/ly and
suddenly. S+ecific songs- for e9am+le- may make indi!iduals feel ha++y- feel sad- or recreate
other +ast feelings that 2ere associated 2ith the +articular +iece of music. Scents ha!e similar
effects on indi!iduals. 6/!iously- the goal of effecti!e +hysical e!idence management is to
stimulate +ositi!e emotions that create atmos+heres in 2hich em+loyees lo!e to 2ork and
customers 2ant to s+end their time and money.
2/,siological 'esponses:
Physiological *es+onses are often descri/ed in terms of +hysical +leasure or discomfort. .y+ical
+hysiological res+onses in!ol!e +ain and comfort. 8n!ironments in 2hich music is +layed !ery
loudly may lead to em+loyee discomfort and mo!ement a2ay from the source of the noise. .he
lack of a nonsmoking section may cause some em+loyees difficulty in /reathing and further
discomfort. #nstead of /eing arousing- en!ironments that are /rightly lit may cause eye
discomfort. #n contrast- a dimly lit restaurant may cause eye strain as em+loyeeIs struggle to
ser!e customers menus. All these res+onses determine 2hether an em+loyee 2ill a++roach and
e9+lore the firms offering or a!oid and lea!e the +remises to minimi5e the amount of
+hysiological discomfort. Because of the duration of time s+ent in the firmIs facility- em+loyees
might find the +hysical en!ironment +articularly harmful a++ro+riate am/ient conditions such as
tem+erature and air Duality are direct related to em+loyeesI 2illingness to continue to 2ork-
their +roducti!ity 2hile at 2ork- their 0o/ satisfaction- and their +ositi!e interaction 2ith co<
2orker.
Am/ient conditions
.em+erature- air Duality- noise- music- odor
S+aceOFunction
3ayout- eDui+ment- furnishings
Signs- sym/ols- and artifacts
Signage- +ersonal artifacts- style of decor
Sound a++eals
mood setter- attention gra//er- informer
music- announcements- and sound a!oidance
Scent a++eals
+leasura/le scents !s. foul odors
.aste a++eals
the eDui!alent of +ro!iding the customer 2ith free sam+les
6uestion 5:
>oes t/e suggeste* atmosp/ere *e3elopment plan compete e00ecti3el, 7it/
competitors8 atmosp/eres9
$ns7er:
.he effecti!e management of +hysical e!idence is +articularly im+ortant to 1FC. $ue to the
intangi/ility of ser!ices- consumers lack o/0ecti!es sources of information 2hen forming
e!aluations. As a result- customers often look to the +hysical e!idence that surrounds the ser!ice
2hen forming e!aluation.
A firms +hysical e!idence includes- /ut is not limited to- facility e9terior design elements such as
the architecture of the /uilding- the firms sign- +arking- landsca+ing- and the surrounding
en!ironment of the firms location- interior design elements such as si5e- sha+e- and colors- the
firm entrance and foyer areas- eDui+ment utili5ed to o+erate the /usiness- interior signage-
layout- air Duality and tem+erature- and other +hysical e!idence that forms customer +erce+tion-
including /usiness cards- stationary- /illing statements- re+orts- the a++earance of +ersonnel- and
the firms /rochures.
From a strategic +ers+ecti!e the im+ortance of managing the firms +hysical e!idence steams
from the firmIs a/ility to% (()+ackage the ser!ice- (&)facilitate the flo2 of the ser!ice deli!ery
+rocess- ())sociali5e the customers and em+loyees alike in terms of their res+ecti!e roles-
/eha!iors- and relationshi+- and(,) differentiate the firm from its com+etitors.
From a theoretical +ers+ecti!e- the firmIs en!ironment influences the /eha!ior of consumers and
em+loyees alike due to the inse+ara/ility of many ser!ices.
>hen designing the firmIs facilities- consideration needs to /e gi!en to 2eather the firm is a
remote ser!ice- an inter+ersonal ser!ice- or a self ser!ice. .he su/seDuent design should reflect
the needs of the +arties 2ho are dominating the ser!ice +roduction +rocess decision a/out facility
location - layout- +roduct design- and +rocess design in +articular may re)sult in different
outcomes- de+ending on 2eather the customer is acti!ely in!ol!ed in the +roduction +rocess..
Finally- numerous tactical decisions must /e made /y 1FC 2hen designing the firmIs
en!ironment. #ndi!idualIs /ase +erce+tion of the firms ser!ices on sensory cues that e9ist in the
firms en!ironment. S+ecific tactical decision must /e made /y 1FC a/out the creation and
sometimes the a!oidance of the scent a++eals- sight a++eals- sound a++eals- touch a++eals- and
taste a++eals. .he design and management of the 1FC sensory cues are critical to the firmIs
long<term success.
.onclusion
6n the 2hole 1FC is the name of trust for the customers /ecause there is no com+romise on the
Duality of the food. 1FC fully concentrate on the Duality of food thatIs 2hy it is the hall mark of
e9cellence among the customers. .he su++lier of 1FC is .ranscom Foods 3td. .hey ha!e good
and fully furnished +laces for Chicks to gro2 and finally to +ro!ide there !alued customers. By
follo2ing such +ractices- 1FC is +ro!iding a 0ust and eDuita/le en!ironment for 2ork and
through its di!ersity +rograms- gi!ing /ack to the community at !arious le!els. $oing /usiness
internationally means taking stock of the local +o+ulation and molding your menus and 2ork
+ractices to suit local tastes- la2s and regulations.
Animal 2elfare +rogram for +oultry
Co</randing
High customer demand
Sustaina/le and successful franchise
Certainly the home deli!ery market is huge and 1FC can take 2ell ad!antage of the situation.
.hus it 2ould /e in the /est interest of the com+any to start the ser!ice as soon as +ossi/le and
ca+itali5e on the o++ortunity. 1FC e9+ects a rise in the orders /y at least &'J /y starting this
ser!ice. .herefore- to conclude 2e 2ould say that 1FC should definitely ha!e home deli!ery
ser!ice.
T/e 5est ma:im /ere is: T/in) Glo5all,? $ct @ocall,A
.hank you for your attentionC