INDEX

SR. No

TOPIC

EXECUTIVE SUMMARY

INTRODUCTION

OBJECTIVE OF THE STUDY

HISTORY OF KFC

PRODUCT LIFECYCLE OF KFC

5.1

INTRODUCTION STAGE

5.2

GROWTH STAGE

5.3

DECLINE STAGE

5.4

MATURITY STAGE

COMPETITORS OF KFC

RESEARCH METHADOLOGY

QUESTIONNAIRE

ANALYSIS OF QUESTION

10

CONCLUSION

11

BIBLOGRAPHY AND REFERENCES

Executive Summary
The product life cycle defines the stages that products move through as they enter, get established in,
and ultimately leave the marketplace and thereby offers marketers a starting point for their strategy
planning. The stages of the life cycle often reflect marketplace trends, such as the healthy lifestyle
trend that places organic and green product categories in their growth stages. Illustrates a typical
product life cycle, including the industry sales and profits over time.
In their life cycles, products pass through four stages: introduction, growth, maturity, and decline.
When the product category first launches, its products initiate the introduction stage. In the growth
stage, the product gains acceptance, demand and sales increase, and more competitors emerge in the
product category.
In the maturity stage, industry sales reach their peak, so firms try to rejuvenate their products by
adding new features or repositioning them. If these efforts succeed, the product achieves new
life.53 If not, it goes into decline and eventually exits the market

 INTRODUCTION
KFC Corporation, based in Louisville, Kentucky, is the world's most popular chicken
restaurant chain, specializing in Original Recipe, Extra Crispy, Twister and Colonel's Crispy
Strips chicken with home-style sides.
KFC is part of Yum! Brands, Inc., which is the world's largest restaurant system with over
32,500 KFC, A&W All-American Food ,Taco Bell, Long John Silver's and Pizza Hut
restaurants in more than 100 countries and territory.
1. Founded by Harland Sanders in 1950s when fast moving franchising was still in its infancy.
Colonel Sanders was able to tap a talent hunt.
2. Secret recipe of chicken with eleven herbs and spices.
3. His foreseeing seemed to be true which is less than 13 years the chain had crossed the 300
mark.
4. His growing age promoted colonel sanders to sell off the business for $2million in 1964 to
Jack Massey and John Brown Jr-two Louisville businessman.
5. In 1970 KFC merged with Heublien Inc, a producer of alcoholic beverages with little
restaurant experience.
6. However soon enough conflicts arose regarding quality control issues and restaurant
cleanliness.
7. In 1986 KFC was sold to PepsiCo.
8. Next KFC turned their attention towards tapping into international markets and by
9. Around 1980s it had entered Japan, Australia, Mexico and places in the Carribean and UK.
10. In the 1990s it could foresee the virgin markets if INDIA and CHINA.

OBJECTIVE OF THE STUDY

The subject matter for this project is to study about market strategy.
A study with reference to productlifecycle of kfc in india
Following are the main objectives of this report.

To study about of marketing strategy

To study about international brand in India.
To know the customer awareness about Services and their advertisement.
To study the impact of advertisement of Kfc product on customers.

HISTORY
Harland David Sanders was born September 9, 1890 in Indiana, USA. The young Harland Sanders
had many jobs such as a farmhand, a bus conductor, a steam boat driver, a soldier, and a salesman.
Eventually he became a business man owning a petrol service station in Kentucky, one of the 52
states of the USA.
Many travelers stopped at his service station wanting refreshments and food. The Colonel saw this
as a business opportunity and decided to offer food to these customers. The Colonel enjoyed
making his customers happy he was passionate about
After careful testing for many years to find just the right combination of ingredients, the Colonel
knew that he was at last onto a winning recipe. When he added the 11th and final ingredient, he
was truly satisfied that he had created the best chicken he had ever tasted he wanted to share it
with the world!
To this day, the Original Recipe of 11 Herbs and Spices is one of the biggest secrets in the world the Finger Lick in' Taste of KFC! The Colonel also introduced the idea of using a pressure
cooker to cook the chicken. This ensured that the product cooked faster and produced the best
results ever.
The Colonel decided that his Original Recipe needed to be introduced to people further from his
home and from his state. At the age of 66, he started selling his idea of Kentucky Fried Chicken by
traveling from town to town, preparing his famous chicken recipe for restaurants and their
employees. Soon everybody wanted to try it families stood in queues to try his great Original
Recipe.
Colonel Sanders appeared on national Television promoting the idea of Kentucky Fried Chicken.
He always licked his fingers as he described the Original Recipe taste to viewers this is how the
slogan It's Finger Lick in' Good developed. entertaining them with excellent food and superb
service.

His food and service was so good that he was mentioned in several newspapers around the country.
As a result he had to expand his dining room to keep up with the increase in

KFC as a brand
KFC is one of the best-known brands worldwide Doing Integrated assignment we study how KFC
continually aims to build its brand by listening to its customer's also identifies the various stages in
the marketing process. Branding develops a personality for an organization, product or service.
Brand

Image

represents

how

consumers

view

the

organization.

Branding only works when behaves and presents itself in a consistent way, marketing
communication methods, such as advertising and promotion, are used to created colors, design and
image which give a recognizable face.
At KFC this is represented by its familiar logo-Colonel Harland Sanders is shedding his white suit
jacket for a red cook. Marketing involves identifying customer's needs and requirements and
meeting

these

needs

in

better

way

than

its

competitors.

In

this

way

company creates loyal customer.

The starting point is to find out who are potential customers are-not everyone will want what KFC
has to offer. The people KFC identifies as likely customers are known as key audiences.

KFCS SUCCESS STORY:

Colonel sanders commitment to quality and hygiene.
PepsiCo taking over KFC proved to be a turning point in its life cycle.
Being a leader in its field PepsiCo provided that extra edge to KFC whereby the soft drinks were
made available at KFC outlets along with their menu.
Coordinated through national advertising.
Consumers were able to relate the soft drinks with the snack foods.
Was able to foresee a huge untapped market in the Asian Countries.
Think like a local not like an American Company. KFC gelled with the people as the
operations were in their hands.
Mellowed down their Fried chicken image by changing their name to KFC in 1991.
Were able to provide a wider variety to the customers to chosen from, thus strengthens their
market positions.
Customization in different countries. Different culture and customers preferences were taken into
account to attain GCTC [GETTING CLOSE TO THE CUSTOMERS].
KFC is also quite aware of its CSR.
Different relief programmes and other social undertakings have been well executed by them.

CULTURAL FACTORS CONTRIBUTING TO KFCs SUCCESS IN INDIA

Reducing the psychic distance by handing 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

fierier

ZINGER

BURGER.

Got an edge since chicken is a staple dish and is taken more frequently in Asian countries.
More accustomed to take out food over the country.
The target customer of KFC [upper, middle and above] are health conscious and
cater

to

their

interest

Kentucky

fried

Chicken

changed

its

name

hence to
to

KFC.

 CULTURAL FACTORS IN INDIA THAT GO AGAINST KFCs ORIGINAL RECIPE:

KFC is perceived as a restaurant serving only chicken-Indian families obviously wanted more
varieties.
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 veg kitchen doesnt come out well with the vegetarian segment.
ETHICAL FACTORS:
The regulatory authorities found that KFCs chicken did not adhere to the prevention of FOOD
ADULTRATION ACT, 1954. Chickens contained nearly three times more monosodium
glutamate (popularly known as MSG, a flavor enhancing ingredients) as followed by the act.
Since the late 1990s, 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 video tape showing the ill-treatment of birds in KFCs poultry farms.

T HE PR OD U C T LI F E C Y C LE

The product life cycle defines the stages that products move through as they enter, get Established
in, and ultimately leave the marketplace and thereby offers marketers a starting point for their
strategy planning. The stages of the life cycle often reflect marketplace trends, such as the healthy
lifestyle trend that places organic and green product categories in their growth stages.
In their life cycles, products pass through four stages: introduction, growth, maturity, and decline.
When the product category first launches, its products initiate the introduction stage. In
the growth stage, the product gains acceptance, demand and sales increase, and more competitors
emerge in the product category.
In the maturity stage, industry sales reach their peak, so firms try to rejuvenate their products by
adding new features or repositioning them.
If these efforts succeed, the product achieves new life. If not, it goes into decline and eventually
exits the market.

Introduction Stage
The introduction stage for a new, innovative product or service usually starts with a single firm,
and innovators are the ones to try the new offering. Some new-to-the-world products and services
that defined their own product category and industry include the telephone (invented by Alexander
Graham Bell in 1876), the transistor semiconductor (Bell Laboratories in 1947), the Walkman
portable cassette player (Sony in 1979), the Internet browser (Netscape in 1994), personal digital
assistant (Palm in 1996), iTunes (Apple in 2001), and Blu-ray (Sony in 2006). Sensing the viability
and commercialization possibilities of a market-creating new product, other firms soon enter the
market with similar or improved products at lower prices.
The same pattern holds for less innovative products like apparel, music, and even a new soft drink
flavor. The introduction stage is characterized by initial losses to the firm due to high start-up costs
and low levels of sales revenue as the product begins to take off.
If the product is successful, firms may start seeing profits toward the end of this stage.
KFC, known as Kentucky Fried Chicken, is a chain of fast food restaurants based in Louisville,
Kentucky. The Kentucky Fried Chicken was founded by Colonel Harland Sanders (born on
September 9, 1890) at the age of sixty-five KFC is currently one of the largest businesses of the
global food service industry and is widely known around the world as the face of Colonel Sanders.
Every year, over a billion KFC chicken dinners are served featuring the Colonels finger
licking good special Recipe. The Colonel had spread his industry to more than 80 countries and
territories globally.
KFC Corporation, based in Louisville, Kentucky, is the world's most popular chicken restaurant
chain, specializing in Original Recipe, Extra Crispy, Twister and Colonel's Crispy Strips chicken.

KFC is part of Yum! Brands, Inc., which is the world's largest restaurant system with over 32,500
KFC, A&W All-American Food, Taco Bell, Long John Silver's and Pizza Hut restaurants in

more

than

100

countries

and

territory.

1. Founded by Harland Sanders in 1950s when fast moving franchising was still in its infancy.
Colonel

Sanders

2.Secret

was

recipe

of

able
chicken

to
with

tap
eleven

talent

hunt.

herbs

and

spices.

3. His foreseeing seemed to be true which is less than 13 years the chain had crossed the 300mark.
4. His growing age promoted colonel sanders to sell off the business for $2million in 1964 to Jack
Massey

and

John

Brown

Jr-two

Louisville

businessman.

5. In 1970 KFC merged with Headline Inc, a producer of alcoholic beverages with little restaurant
experience.
6. However soon enough conflicts arose regarding quality control issues and restaurant cleanliness.
7.In 1986 KFC was sold to Pepsi company.

8. Next KFC turned their attention towards tapping into international markets and by around 1980s
it

had

9.

In

entered
the

Japan, Australia,

1990s

it

could

Mexico

foresee

the

and
virgin

places

in

markets

the
if

Carribean
INDIA

and

and

UK.

CHINA.

Growth Stage
The growth stage of the product life cycle is marked by a growing number of product adopters,
rapid growth in industry sales, and increases in both the number of competitors and the number of
available product versions. The market becomes more segmented and consumer preferences more
varied, which increases the potential for new markets or new uses of the product or service.
Also during the growth stage, firms attempt to reach new consumers by studying their preferences
and producing different product variationsvaried colors, styles, or featureswhich enable them
to segment the market more precisely.
The goal of this segmentation is to ride the rising sales trend and firmly establish the firms brand,
so as not to be outdone by competitors. In recognizing the growing demand for and appeal of
organic products, many food manufacturers are working hard to become the first brand that
consumers think of when they consider organic products.
Del Monte was the first of the major canned vegetable sellers to go organic, releasing organic
versions of its tomatoes, green beans, corn, and sweet peas, along with an organic chicken broth
product under its College Inn line. The cans feature bold organic banners across the front and
promise that no pesticides were used to produce the food items.
Even though Del Monte products have been around for over 100 years, in this growth category, the
company is a newer entrant in the organic market, so it must work to establish its distinctive
appeal.
As firms ride the crest of increasing industry sales, profits in the growth stage also rise because of
the economies of scale associated with manufacturing and marketing costs, especially promotion
and advertising.
At the same time, firms that have not yet established a stronghold in the market, even in narrow
segments, may decide to exit in what is referred to as an industry shakeout.

Assessing Growth and Strategy of KFC

KFC is basically one of the largest food chain in basic terms of market share, profit and revenue
which is way ahead of the other brands like Mc Donalds and other foreign and domestic brands.
There has been adoption of three market strategy in our coming paragraphs or study which
includes- Intensive growth, Integrity Growth and Diversification growth. These three strategies
play an important role in deciding the growth of the KFC.

Intensive GrowthThe intensive growth is generally the first step of action in the corporate managements manual in
which review of opportunities is the tool to bring improvement in the existing business.
There is a useful framework which has been used to detect new intensive opportunities which is
known as product-market expansion grid. There are several measures which should be taken by
the company in order to judge the market condition in which they could gain more market share
with its current product using the strategy which has been mentioned above in which one of the
strategy is Market Penetration Strategy.
After considering this, they considers if they could develop new market for its current product
through Market Development Strategy and then it generally considers about developing new
products of interest in the current market and last but not the least diversification strategy is used
to review opportunities for the development of new product in the market. (The World is flat #3:
How KFC went global, 2009)
KFC has started its market penetration strategy from Argentina and Brazil.
It is basically the strategy to improve the sales in the market of the current product residing in the
market. KFC has got local leadership with the support of strong corporate sector which should be
having years of experience in the penetration of their current product in the market share.
There are several ways through which managers can discover the ways to grow by examining the
intensive growth strategies.
KFC in its Market Development strategy has basically developed various markets in different
countries to successfully launch their new product or maintain the reputation of the existing
product.
They have tailored its menu and dcor and appearance in china hoisting high its flag of success in
China. There has been adoption of localization strategy by the KFC to attain the development of
market in various foreign countries instead of USA.

In the matter of Product Development strategy, there is mainly launching of new products which
can attract more and more customers waving their sale high in the sky.
The current products of KFC are ruling in the market instead there should be innovation going on
in order to compete in the market.
Lastly if we talk about the Diversification strategy then there should be proper grabbing of the
opportunities produced time to time in the market. The localization strategy has nearly touched
every aspect taking from operations to marketing and advertising with brand positioning to supply
chain and distribution. KFC also included vegetable menu in its portfolio for diversification.

Integrity GrowthThe integrity growth is basically the study of the sales and profits of the company through forward
and

backward

integration

within

the

industry.

All the branches and the sectors should be working equally in the right sector in order to provide a
better future for the company. The general meaning which defines integrity or integral growth is
taking help of every department in order to solve task or any matter concerned with.
KFC is the best example which shows the work done in integration in order to take any important
decision or production and launching of any new product.
There are various departments which work on the fundamentals of the integrity growth which
helps in providing company strength.

Diversification Growth
The good opportunities which are present outside the existing business can make sense in the
diversification growth. Diversification strategy is generally meant to expand the firms operations
through addition of markets, products and services and it also includes stages of production to the
existing business. The main purpose behind the strategy of diversification is to allow company to
go through various lines of business which are different from current operations.
KFC has successfully achieved the goal which has been setup by the company which has relation
with the Diversification strategy.
There is expansion of the firm in various countries as well which makes their part strong in the
international market as well. Mainly KFC give preference to the increase in the performance
objectives of the company as compared to the past levels of performance. One of the main things
which makes KFC special is that it takes all the strategy together to provide their company the
best.

Maturity Stage

The maturity stage of the product life cycle is characterized by the adoption of the product by the
late majority and intense competition for market share among firms. Marketing costs (e.g.,
promotion, distribution) increase as these firms vigorously defend their market share against
competitors.
At the same time, they face intense competition on price as the average price of the product falls
substantially compared with the shifts during the previous two stages of the life cycle. Lower
prices and increased marketing costs begin to erode the profit margins for many firms. In the later
phases of the maturity stage, the market has become quite saturated, and practically all potential
customers for the product have already adopted the product. Such saturated markets are prevalent
in developed countries. In the United States, most consumer packaged goods found in grocery and
discount stores are already in the maturity stage.
Firms may pursue several strategies during this stage to increase their customer base and/or defend
their market share, such as entry into new markets and market segments and developing new
products.
Entry into New Markets or Market Segments
Because the market is saturated at this point, firms may attempt to enter new geographical markets,
including international markets , that may be less saturated. For example, Whirlpool manufactures
washing machines for Brazil, China, and India that it prices lower than those it sells in the United
States to attract the large consumer base of lower-income consumers in these countries.
In many developing economies, the large and growing proportion of middle-class households is
just beginning to buy the home, kitchen, and entertainment appliances that have been fairly
standard in U.S. households for several decades.
In India alone, the roughly 487 million middle-class consumers spend over $100 billion a year on
a variety of consumer products.

However, even in mature markets, firms may be able to find new market segments. Laundry may
be a mundane chore that most people dislike, but it is also a huge marketing opportunity. New
product development tends to focus on the detergent delivery methods.
So in the United States, where laundry tablets have never been very popular (Americans prefer to
pour their liquid detergent and thus control the amount they add to the wash basket), Dial has
developed a laundry sheet, similar to the dryer sheets used as fabric softeners. This 3-in-1 product
includes laundry detergent, fabric softener, and antistatic agents.59 It is more expensive than buying
the three products separately from Dial, but is 20 percent less expensive than purchasing premium
brand versions of the three items. Dial hopes to appeal to a new market segment that wants a
premium product and save money, without cannibalizing its core customer groups.
KFC does promotional activities by offering add-ons to the existing menu, gift coupons, T-shirts,
Kids meal etc. KFC promotes its products through LCD displays kept inside its outlets which
promotes their products and kindles desires among consumer. India being the country with largest
youth population has favored the growth of KFC and it has become the fastest growing fast food
chain in India pushing aside McDonalds and Pizza Hut.

MARKETING STRATEGIES OF KFC

There are different strategies adopted by KFC for differentevents. They market their products on
different events andin 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

Marketingtechniques.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.KFC also offer free home delivery.KFC open their outlets on reachable places.KFC menu
consists of more than 30 products.KFC gives more priority to Family.
3. Promotion:
Promotion is one of the necessary plates in any form of business or in other words you can say that
promotion is the key of success. If you promote your product at the right time. KFC also known
the importance and significance of promotion so they uses the bill boards the major source
of advertisement A survey of young consumers in the countries(n = 795), showed that the
respondents were more apt to eat within KFC restaurants, and spend more time doing so,
than the Americans. The Chinese also had much more positive impressions of KFC. Brand identity
impressions were correlated with overall customer satisfaction and with future patronage
intentions for both groups. These findings support model where differences in cultural frames of
reference lead consumers to actively localize the brand identity of this nominally globalized
product.4.
4. Placement:
In the case of the KFC the placement of the product is notimportant but theplacement 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
chick play area is located). It is ideally located in the center of a main commercial and residential
area of Lahore. The area that KFC Cavalry caters for is there disentail and office area of Cavalry
Grounds and Cant, as the main target market. Another branch the KFC opened in the Lahore is in
Garden Town (opposite to Bark at Market).KFC also targets the Faisalabad and open its branch in
Ground. Now we can easily judge that the 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 then 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. Purchasing process:
Many people come from home to eat this, and some make impulse decision as they saw it .Market
mix Strategy KFC will be using differentiated market coverage strategy. It means that different
marketing mix will be used for different age groups. 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 dont 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.

Decline Stage
Firms with products in the decline stage either position themselves for a niche segment of diehard
consumers or those with special needs or completely exit the market. The few laggards that have
not yet tried the product or service enter the market at this stage. Take vinyl long-playing records
(LPs) for example. In an age of CDs and Internet-downloaded music in MP3 and other formats, it
may seem surprising that vinyl records are still made and sold. But though the sales of vinyl LPs
have been declining in the past 15 years, about 2 million still are sold in the United States each
year. Granted, this is a minuscule number compared with the 800 million CDs sold each year, but
diehard music lovers prefer the unique sound of a vinyl record to the digital sound of CDs and
music in other formats. Because the grooves in vinyl records create sound waves that are similar to
those of a live performance, and therefore provide a more authentic sound, nightclub DJs,
discerning music listeners, and collectors prefer them. Even some younger listeners have been
buying vinyl records, influenced perhaps by their parents collections, the sound, or simply the
uniqueness of an LP.
KFC used its expertise in chicken preparation to introduce Kentucky Grilled Chicken to stimulate
sales in a mature market.
Aiding this continued demand is the fact that there are simply too many albums of music from the
predigital era that are available only on vinyl. It may take many years, maybe even decades, for all
the music from earlier generations to be digitized. Until that time, turntable equipment
manufacturers, small record-pressing companies such as Music Connection in Manhattan, and new
and emerging record companies, such as Premier Cure Music, continue to have a market that
demands their LPs

KFC RE-ENTRY INTO INDIAN

MARKET

KFC entered India in 1995, but a controversy surrounding the levels of MSG in its preparations
and subsequent protests from farmers' groups and animal rights activists spelt trouble for the
company. Ultimately, the company had to shut all but one outlet in the country. Only recently in
2003 it made a quiet re-entry into the Indian market. Then it came up with the strategies and menu
that was desirable by the Indian consumers. And since 2003 it is expanding successfully its
businessinIndia.
At the same time it provided menu items which can be afforded by the middle income group level
like KFCs Mini Burger for Rs. 25, Hot Crispy Chicken which contained Indian spices that were
liked by Indians. Now they are adhering to the rules of Food Corporation of India and PETA,
helping them to expand business successfully. The company aimed at targeting cosmopolitan cities
like Chandigarh, Pune, Kolkata, Chennai and Hyderabad, where mall culture is fast developing.
PepsiCo also decided to concentrate on the expansion of KFC since its other brand, "Pizza Hut",
had successfully established a strong foothold in India. The expansion drive would take Pizza Hut
across

33

cities;

KFC

will

set

foot

in

Kolkata

and

Hyderabad

after

having

forayedintoPunerecently.

Ms Sharanita Keswani, Director, KFC Marketing, says that KFC also operates on the franchisee
model. "We expect to scale up to 12-13 restaurants by the end of this year, from six at present.
KFC is looking at extending its presence across India to create a national footprint." Both Pizza
Hut and KFC have made various alterations to their menus in India to attract more footfalls. It has
developed a range of pure vegetarian food.
All the vegetarian products are stored, cooked and served separately, by a separate crew distinctly
identified

by

their

colour-coded

uniform,

says

Ms

Keswani.

KFC has around 10,286 units worldwide, followed by Taco Bell with 7,111 restaurant units world
over. Long John Silver's is America's largest quick-service seafood chain with more than 1,200
units worldwide. KFC caters to nearly 7 million customers in more than 78 countries through
11,338 outlets.

The company believes that India, owing to its size and growing aspirations of an upwardly mobile
middle class, is a critical market in its overall scheme of things. Yum! is a fortune 500 corporation
that operates or licenses Taco Bell, KFC, Pizza Hut, and Long John Silvers restaurantsworldwide.
YUM! Brands, Inc. is committed to conducting its business in an ethical, legal and socially
responsible manner. To encourage compliance with all legal requirements and ethical business
practices, Yum has established this Supplier Code of Conduct for Yum's U.S. suppliers.
Yum! has adopted best operational practices to ensure high customer orientation, which is
demonstrated through C.H.A.M.P.S. This is the umbrella operation programme for training,
measuring and rewarding an employee's performance against customer standards. C.H.A.M.P.S
stands for: cleanliness, hospitality, accuracy, maintenance, product quality and speed. KFCs
challenge here is to make sure to meet our quality standards in terms of food, facilities, people and
the overall experience. KFC want to ensure that the customers experience in India is no different
from a Pizza Hut outlet anywhere else in the world.

KFC caters to nearly 7 million customers in more than 78 countries through 11,338 outlets. The
company believes that India, owing to its size and growing aspirations of an upwardly mobile
middle class, is a critical market in its overall scheme of things. Stringent cleaning standards
ensure that all tables, chairs, highchairs and trays are sanitised several times each hour. Such
meticulous attention to cleanliness extends beyond the lobby and kitchen to even the pavement and
immediate areas outside the restaurant.

Did you know that every year, Rs. 50,000 crore worth of food produce is wasted in India? This is
mainly because of the lack of proper infrastructure for storage and transportation under controlled
conditions. KFC is committed to providing quality products while supporting other Indian
businesses. And so, KFC spent a few years setting up a unique Supply Chain, even before they
opened their first restaurant in India.

ISSUES FACED BY KFC IN INDIA

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. Indian people condemned KFC's entry into
India, saying that it was unethical to promote highly processed 'junk food' in a poor country like
India with severe malnutrition problems. Since the late 1990s, 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 video tape showing the illtreatment of birds in KFC's poultry farms. However, undeterred by the protests by PETA and other
animal

rights

organizations,

KFC

planned

massive

expansion

India.

KFC did not appreciate the need for protecting animal rights in developed and developing
Countries like India.

They
They

did
did

not

understand
not

the

examine

importance
the

reasons

of

ethics
for

in
protests

doing
of

business.
PETA.

KFC did not add the flavours and spices in their menu which Indians favoured.
Major reason was KFC was targeting higher income group in India in order to compete with the
local chicken dhaba walas.

Competitors of KFC in India

KFC was the fastest-growing major chain in India in 2012, recording 45% value growth year-overyear based on a 41% increase in outlets (a net addition of 62). This level of growth has helped
KFC become the third-ranked brand in India, a fact that is particularly notable considering they
were a relatively late entrant in terms of widespread expansion. In 2003, KFC had just 3 local
outlets, putting them well behind Baskin-Robbins, Dominos, Pizza Hut, and McDonalds, all of
which had over 50 outlets already in operation and were growing quickly.
KFCs success has come as a combination of clever localization, savvy pricing strategies,
successful consumer education, and a menu that appeals well to the changing preferences of
sophisticated, urban Indian consumers. KFCs entry into the market was slow, and despite opening
three initial outlets as early as 1995, the chain had reached just five units nearly a decade later. At
that time, the market posed significant logistical issues, and sourcing enough poultry, beef and
other products continues to be a challenge even in 2012. Back in the 90s, local leader McDonalds
famously spent years building its own India supply chain from scratch, training local farmers and
designing a cold chain that would be robust enough to handle its needs, while Yum! Brands focus
was firmly on building its now-dominant presence in China. The chains investment in the latter
market has paid off handsomely, but it also left the brand with some catching up to do.
Meanwhile, Indian consumer preferences were changing. Chicken consumption in India may be
more common than beef, but meals are typically carbohydrate-heavy, and many local consumers
prefer a vegetarian diet. Further, the chicken that is eaten is traditionally taken in the form of
tandoori, a fiery-red, spicy grilled dish thats eaten alongside rice and vegetables. When the time
was finally right for expansion, and Indian consumers were broadening their foodservice horizons
through travel, the internet, and generally greater exposure to global cuisine, KFC began
expanding aggressively and adapting their menus to bridge the gap between familiar and
innovative. By 2012, the chain had reached 220 outlets and added spicier versions of their chicken,
including a Fiery Grill flavor that mimics the red hue and hot spice of traditional tandoori, and
Curry Chicken, modeled after popular local curries.

In addition to promoting its chicken items, KFC also added plenty of vegetarian options. The chain
now serves fried vegetable strips and burger patties made of either potato or vegetables, and many
new menu launches have been accompanied by a similar vegetarian item, such as the Zing Kong
beef burger meal combo and Veg Zing Kong combo, both launched in mid-2012.
Finally, KFC has also achieved success through the use of its pricing strategy, which was designed
to help turn what appeared to many as a special-occasion novelty restaurant into an everyday
option. In recent years, KFC has taken steps to drastically reduce its prices, launching a Streetwise
branded menu targeted to students who have very little income but tend to be willing to spend on
foodservice at the right price. The menu starts with items as low as Rs25 (US$0.40), and was
marketed with a youthful campaign that promoted the range as a better alternative to the university
dining hall at similar prices. In 2013, KFC followed up with a Wow@25 marketing campaign
and augmented reality smart phone app. Cash-strapped students can scan any small bill with their
phones, and the app suggests low-priced items off of a new KFC Wow menu that fits within their
budget.

The Road Ahead

This budding success in India couldnt come at a better time for Yum! Brands, which has been
facing dire results from China, usually its strongest market. The company has been battling
concerns about its poultry quality, avian flu scares, and various food safety scandals that have
caused comparable-store sales to plummet as much as 11% in the most recent quarter. In India,
third-quarter results were better, with outlet sales surging 24% despite flat comparable-store sales.
Some of this relative slowdown in India is due to rising competition, especially in fried chicken
fast food. Now that local consumers are more willing to see fried chicken as a meal, countless
imitators have entered the market, many of which are backed by deep-pocketed operators and, in
some cases, possibly even better suited to Indian palates. Thai street stall concept Five Star Fried
Chicken, for example, launched in India in 2013, targeting young professionals and college
students by opening in malls and business parks. The chains very spicy Thai-style fried chicken
appeals well to Indian preferences, and parent company Charoen Pokphands holdings in the local
chicken processing industry enables the chain to sell items at prices that start even lower than
KFCs Streetwise menu.
To battle this competition, KFC is ramping up expansion even further, aiming to double its local
outlet presence by 2015. The chain will also be moving into smaller cities and second-tier areas,
gaining access to new customer groups in areas less saturated with chained foodservice options. In
an even more interesting move, KFCs parent company is betting on Taco Bell for future growth in
India, a concept that has so far remained mostly confined to the US. Despite this, the concepts
menu is easily translatable into vegetarian fare and has high potential appeal for young people, the
same group Yum! Brands have worked so hard to target with KFC.

Key Takeaways from KFC

Moving forward, there are a few key lessons other brands can take from KFCs success. First, the
importance of menu localization cannot be overstated, especially in a market with a welldeveloped dining culture of its own. Indian consumers like very spicy food, and they are as diverse
in their dietary preferencesmuch of which stems from local religious and cultural traditionsas
they are in terms of income stratification. Successful brands will need to take significant steps to
bridge the gap between offering a new, exciting dining experience and one that will be familiar
enough, and attainable enough, to entice consumers to dine outside of the home.
Second, operational challenges in India are just as important as customer acquisition, and operators
who arent proactive about building their supply chain will likely find success impossible. Finally,
in a country with over a billion people, targeting a concepts appeal to the right customer base is
still important. KFC has had success using pricing, product mix, and branding to target young
people
, A customer base that can expand with the chain in the future as the demographic grows both in
size and in purchasing power. By 2030, India is expected to surpass both the US and China to
become the home of the largest consuming population in the world, and while the right
consumer base will continue to grow larger, the importance of carefully targeting those consumers
and fostering their future brand loyalty will be no less paramouts

Research methology

To study the product life cycle of kfc

To study the stages of the product moves though when

ultimately leaves the market

To knows the customer opinion towards kfc product in india .
To maintain the brand image in todays competitive world .

Data source:

Primary source : Questionnaire

Secondary source : website . newspaper and journals

they enter;get establish and

QUESTIONARE
product life cycle on kfc This research is conducted a part of requirement of bms degree under
university of Mumbai. This information provided by you will be kept confidential and used purely
for

academic

Name:.
Age:

purpose.

Location:.
Sex:

Occupation:
Help Us to prepare a integrated assignment and improve KFC, so that every visit to KFC will
have you say ,it finger licking good..!
Please rate on the following Criterion:

Q1.

How long you been visiting to kfc ?

A)
B)
C)
D)

Once in a year
Once in month
Once in a week
daily

Q2. HOW IS THE DCOR OF kfc?

A)
B)
C)
D)

excellent
good
bad
worst

Q3.How is the service of the kfc?

A)Quick
B)Impressive
C)slow

Q.4) which one of the following provided you with most significant information for making
your purchase?

A) Newspaper
B) T V ads
C) online kfc websites
D) other source
Q5) How far the availability of kfc services influenced yours choice?
A)highly influenced
B)influenced
C) less influenced
D) not influenced
E) Neutral
Q6) Does the brand image and name influenced you to visit kfc?
A) Agree
B) Not agree
Q7) How is the taste of kfc product?
A)
B)
C)
D)

Tasty
Spicy
Good
Worst

Q8) How do you like the cleanliness of kfc restaurant?

A) Excellent
B) Good

C) Notbad
D) Untidy
Q9) Everytime you visit the resturant Does the food of kfc is hot and fresh?
A) Yes
B) No
Q10)To whom do you like to visit kfc restaurant the most?
A)
B)
C)
D)

Friends
Family
Close friends
Alone

Q11) In yours opinion , how is kfc different from other fastfood restaurant?

had done survey on 40 people, 30 people were showing result product oriented and
mainly on service oriented

Analysis of Question
Q1. How long you been visiting to kfc ?

We

Once in a Year

Once in a Month

Once in a Week

Daily

5%
15%
35%

45%

As shown in figure, 35% of the Indian people visit kfc daily , 45% once in a week ,15%
in a month and only 5% of visit once in a year .as though this analysis it is clear most of
the Indian people visit kfc

Q2. HOW IS THE DCORATION OF KFC?

DECORATION

8% 2%

Excellent
Good
Bad

35%

55%

Worst

The decoration of kfc,is 55% excellent as after the analysis of customer has rated 35% of
customer like the decoration of kfc.

Q3.HOW IS THE SERVICE OF THE KFC?

service

10%
30%

Quick
Impressive
Slow

60%

As kfc is known for his fast service, after this analysis the customer rated kfc sevice 60%
of the customers think that the kfc provides quick service and 10% of the customer thinks
the service is slow.

Q.4) WHICH ONE OF THE FOLLOWING PROVIDED YOU WITH MOST SIGNIFICANT
INFORMATION FOR MAKING YOUR PURCHASE?

10%

18%

22%
50%

Newspaper
Tv ads
Online kfc ads
Othersources

The most significant imformation for making the purchse for the product is provided in
means of newspaper ,tv ads ,online kfc ads and other sources. people are mostly
influenced by tv ads ,newspaper and online ads because this advertisement attracts the
customers.

Q5) HOW FAR THE AVAILABILITY OF KFC SERVICES INFLUENCED YOURS CHOICE?

Availability

1% 5%

Highly influenced

4%

influenced

30%
60%

less influenced
not influenced
neutral

The availability of service of the kfc highly influenced people of india because its
provides fast and quick service in a couple of timeperiod.

Q6) DOES THE BRAND IMAGE AND NAME INFLUENCED YOU TO VISIT KFC?

Brand name and image

20%

Agree

Disagree

80%

As kfc is known for his brand name , the name fame image of the company is high through
out the world .in india also people prefers kfc restaurants bacausekfc has and good brand
image ..so 80% of people visits kfc because of his brand name.

Q7) HOW IS THE TASTE OF KFC PRODUCT?

Taste

10%
20%

40%

Tasty
spicy
good
bad

30%

Customers wants the food they eat should be tasty and spicy,kfc is wellknown for its taste
of the product 40% of the customer thinks thatthe product of kfc is tasty.30% of
customer thats the food is spicy and 20 % thinks thats it is bad they are the people
thats do not like spicy food.

Q8) HOW DO YOU LIKE THE CLEANLINESS OF KFC RESTAURANT?

Cleanliness

8% 2%
Excellent
GOOD
Bad

25%

Untidy
65%

 Kfc is a restaurant known for its cleanliness and services .65%of Indian people who visit
kfc finds the cleanliness is excellent ,25% people find it is good and others 10%find it bad
or untidy

Q9) EVERYTIME YOU VISIT THE RESTURANT DOES THE FOOD OF KFC IS HOT AND
FRESH?

10%

Yes

No
90%

The product of the kfc is 90% hot n fresh because .whenever a new customer visit the
restaurant a fresh product is made of his order kfc provide 90% of fast food os hot n
fresh.

Q10)TO WHOM DO YOU LIKE TO VISIT KFC RESTAURANT THE MOST?

Visit to kfc

7%

3%
Friends

35%

55%

Family
Closefriend
Alone

In india,55% of people visits kfc restaurant with their friends for example.{ college
students} 35% of the people visits with family .7% with their close friend .and 3 % of
people wisits alone they are working class people for examples{ workers ,employees
,labours}

Q11) IN YOURS OPINION , HOW IS KFC DIFFERENT FROM OTHER FASTFOOD

RESTAURANT?
In my opinon , kfc restaurant is different from other restaurant because of his good and
fast service,the customer are well treated by the employees of kfc,the food is hot n tasty
and the discount offers that the kfc invents at times of festivals every class of people can
enjoy kfc product because itprovide is ahigh quality product in a low price

Conclusion
So the main three reasons why KFC stands out as my favorite fast food restaurant is because of
theservices provided, the affordable prices, and of course the great quality food. has always
maintained an old age feel and it is apparent because they still use the original recipe. Also, there
are many KFCs around the world and I have been to Many and it was the same if not better
quality than the establishments stateside have always viewed it as one of the best suppliers of fresh
flavorful chicken which is the reason why in my opinion it is the best fast food chain.

Bibliography and References

1. Internet Sources

Business.gov.in
Commerce.nic.in
managementparadise.com
Slideshare.net
Scribd.com
authorstream.com

2. Books Sources

Export import (EXIM)

Banking and insurance