A Final Report on

Marketing Strategies
In
Kentucky Fried Chicken

SUBMITTED TO:
FACULTY GUIDE: Mr. Maula Ali
Faculty guide

SUBMITTED BY: Ameena Osman

6NI14054
INC HYDERABAD
 A Report on Final Evaluation

SUBMITTED TO:
FACULTY GUIDE: Mr. Maula Ali
Faculty guide

SUBMITTED BY: Ameena Osman

6NI14054

KFC India
 ACKNOWLEDGEMENT

I express my thanks to all Marketing managers under whose able

guidance and direction, I was able to give shape to my training.
Their constant review and excellent suggestion throughout the
project are highly commendable.

I am thankful to the faculty guide Mr. Maula Ali who has been a
constant source of guidance to me.

Submitted by – Ameena Osman

Submitted to – Mr. Maula Ali

 INTRODUCTION

NAME: AMEENA OSMAN

ENROLLMENT NUMBER: 6NI14054

COMPANY NAME: KFC India

FACULTY GUIDE: Mr. Maula Ali

REPORT TYPE: Final Report

Signature of student,
Ameena Osman
 CONTENTS

 INTRODUCTION

 GOALS OF KFC
 KFC HISTORY
 KFC INDIA

 VALUES OF KFC

 PHILOSOPHY OF KFC

 PORTERS FIVE FORCE ANALYSIS

 PROMOTIONS

 CURRENT TARGET MARKET

 MARKET COVERAGE STRATEGIES

 CURRENT SALES ANALYSIS

 SUMMARY ON PRESENT SITUATION

 MARKETING STRATEGIES O KFC

 PACKAGING
  BRANDING

 CONCLUSION

INTRODUCTION

KFC Corporation, based in Louisville, Kentucky, is the world’s

most popular chicken restaurant chain, specializing in Original
Recipe ®, Extra Crispy TM, and Colonel’s Crispy Strips® chicken
with home style sides and five new freshly made sandwiches.
Every day, nearly eight million customers are served around the
world. KFC’s menu everywhere includes Original Recipe®
chicken—made with the same great taste Colonel Harland Sanders
created more than a half-century ago. Customers around the glob
ealso enjoy more than 300 other products—from a Chunky
Chicken Pot Pie in the United States to a salmon sandwich in
Japan.
KFC continues reaching out to customers with home delivery in
more than300 restaurants in the United States and several other
countries. And in quite a few U.S. cities, KFC is teaming up with
other restaurants, Taco Bell and Pizza Hut, selling nearly fifty
years ago; Colonel Sanders invented what is now called “home
meal replacement” – selling complete meals to harried, time-
strapped families. He called it, “Sunday Dinner, Seven Days a
Week.” Today, the Colonel’s spirit and heritage are reflected in
KFC’s brand identity – the logo features Colonel Harland Sanders,
one of the best-recognized icons in the world

KFC specialized in chicken and they says,

“No body’s cooking like KFC today and we are
the chicken experts”
“There is no competitor for spicy chicken which is
made by KFC”

Introducing New Product

KFC

Pricing Issues
PRICING POLICY FOR PRODUCT OF TWISTER
Manufacturing cost
RS. 100/-
5% marketing cost(PER UNIT)
RS. 5/-
Total cost
RS.105/-
15% G.S.T +15% RETAIL MARGIN
RS.25/-
Total retail Price
RS.140/-
PRICING STRATEGY FOR DEAL 6
Manufacturing cost
RS. 140/-
5% marketing cost(PER UNIT)
RS. 25/-
Total cost
RS.165/-
15% G.S.T +15% RETAIL MARGIN
RS.55/-
Total retail Price
RS.220/-

MISSION STATEMENT
“To be the leader in western style quick service
restaurants through friendly service, good qualit
f o od a nd c l e a n a t m o s p he r e ”

GOALS OF KFC
 Build an organization dedicated to excellence.
 Consistently deliver superior quality and value in our products
and services.
 Maintain a commitment to innovation for continuous
improvement and grow, striving always to be the leader in the
market place changes.
 Generate consistently superior financial returns and benefits
our
owner and employees.

To establish in India our position as leading WQSR (Western

Quick Service Restaurant) chain, serving good value.
Innovative chicken-based products. Consistently, providing a
pleasant dining experience, with fast friendly, in a clean and
convenient location. At all times we must be dedicated to
providing excellent and delighting customers.

KFC HISTORY

KFC is an internationally renowned fast food industry in the

world. They have the main ambition to increase & maintain
the quality in fast food industry. Their aim is to capture the fast
food market. Basically they want to provide their products to
anyone that is
why they expanding their branches in all over the world. They
want to increase their profit through giving maximum satisfaction
& other better facilities to people that they want. Now after
catching such a marvelous position in the International Market,
KFC is introducing a new item “Boneless Fried Chicken”, with
even more attractive and charming taste.
Company overview:
Colonel Harland sanders, born September 9, 1890, actively began
franchising his chicken business at the age of 65. Now, the
Kentucky fried chicken business he started has grown to be one of
the largest retail foodservice systems in the world. And colonel
sanders, a quick service restaurant pioneer, have become a symbol
of entrepreneurial spirit. More than two billion of the colonel’s
“finger lickin’ good” chicken dinners are served annually. And not
just in America. The colonel’s cooking is available in more then 82
countries around the world.
When the colonel was six, his father died. His mother was forced
to go to work, and young Harland had to take care of his three year
old brother and baby sister. This meant doing much of the family
cooking. By the age of seven, he was a master of a score of
regional dishes. Ate age 10, his first job working on a nearby farm
for $2 a month. When he was 12, his mother remarried and he left
his home near Henryville, Ind., for a job on a farm in Greenwood,
Ind. He held a series of jobs over the next few years, first as a15-
year-oldstreetcarconductor in New Albany, Ind., and then as a 16-
year-old private, soldiering for six months in Cuba. After that he
was a railroad fireman, studied law by correspondence, practiced
in justice of the peace court, sold insurance, operated an Ohio
River steamboat ferry, sold tires, and Operated service station.
When he was 40, the colonel began cooking for hungry travelers
who stopped at his service station in Corbin, KY. He didn’t have a
restaurant then, but served folks on his own dining table in the
living quarters of his service station. As more people started
coming just for food, he moved across the street to a motel and
restaurant that seated 142 people. Over the next nine year, he
perfected his secret blend of 11 herbs and spicesand the basic
cooking technique that is still used today.

KFC INDIA

KFC is the world’s No.1 Chicken QSR and has industry leading
stature across many countries like UK, Australia, South Africa,
China, USA, Malaysia and many more.
KFC is the largest brand of Yum Restaurants, a company that owns
other leading brands like Pizza Hut, Taco Bell, A&W and Long
John Silver. Renowned worldwide for it’s finger licking good
food, KFC offers its signature products in India too! KFC has
introduced many offerings for its growing customer base in India
while staying rooted in the taste legacy of Colonel Harland
Sander’s secret recipe. Its signature dishes include the “crispy
outside, juicy inside” Hot and Crispy Chicken, flavorful and juicy
Original Recipe chicken, the spicy, juicy & crunchy Zinger Burger,
Toasted Twister, Chicken Bucket and a host of beverages and
desserts. For the vegetarians in India, KFC also has great tasting
vegetarian offerings that include the Veggie Burger, Veggie
Snacker and Veg Rice meals. In India, KFC is growing rapidly and
today has presence in 11 cities with close to 50 restaurants.

VALUES OF KFC
 Focus all our resources to our restaurants operation because
that is where we serve our customers.
 Reward and respect the contributions of each individual at
KFC.
 Expand and update training with time and be the best we can be
and more.
 Be open, honest and direct in our dealings with one and other.
 Commit ourselves to the highest standard to the personal and
professional integrity at all times.
 Encourage new and innovative ideas because these are the key
to our competitive growth.
 Reward result and not simple efforts.
 Dedicate ourselves to continuous growth in sales, profit and
size of organization.
 Work as a team

PHILOSOPHY OF KFC
The CHAMPS Program

Champs stands for our belief that the most important thing each of
us
can do is to focus on the customer. It stands for our commitment to
provide the best food and best experience for the best value.
CHAMPS stand for the six universal areas of customer expectation
common to all cultures and all restaurants concepts.
THE CHAMPS
These are:
Cleanliness
Hospitality
Accuracy
Maintenance of Facilities
Product Quality
Speed of Service

CHAMPS is the philosophy to ensure that the

customer has the consistent quality experience in every restaurant,
everyday, on every occasions and you will be playing role in
delivering CHAMPS to our customers.

Situational Analysis
Current Products
Kentucky fried chicken
• Zinger burger
• Krushers
• Game Box
• Twister
• Box master
• Chicken Bucket
• Hot wings
• Fries
• Corn on the cob
• Zing Kong
• Snacker(chicken & veggie)
• Veggie Feast
• Soft Drink
• Coleslaw
• Chicken Thali
• Veg Finger
• Snack Box
• Sundae
• Soft Twirl
• Brownie Sundae

PORTERS FIVE FORCE ANALYSIS

Entry
For the current Indian market for fast food, it is not difficult for a
fast food restaurant to enter the market. However, it would be
extremely difficult to take over already running major fast food
chains' dominancy in India or even make a significant amount of
profit. While there are enough people in urban India for any
restaurant to survive, KFC holds the first-mover advantage into the
'non-veg food specialty food segment' that gives them free
reputation. Customers, especially children who are used to going to
KFC as a treat or reward from their parents or grandparents, are
not going to want to go to other restaurants they’ve never heard of.
The brand name is already established. Also, there is already a
large variety in the numerous western-style dining places in India,
such as
McDonald’s, Pizza Hut, Domino's and Subway, and any new fast-
food entrants would
just be presenting something very similar to what’s already there.
While small Neighborhood restaurants generally have low barriers
to entry, these are the barriers to
entry for similar restaurant businesses to enter the fast-food chain
market.
Buyer/Supplier Bargaining Power
The customers of KFC, especially as individual buyers, have
almost no bargaining power because if only one customer threatens
to no longer eat at KFC, the store is not going to lower its price
because the cost of losing one customer is not very great. The
suppliers, like the buyers, have very little bargaining power.
In terms of food, KFC, upon its move into India, urged many of its
U.S. suppliers to also extend branches into India.KFC also began
helping local suppliers by giving them technological support to
improve their products. This is a brilliant strategy because the
supplies that KFC would otherwise need to import from the
U.S. can now be obtained domestically, and if the U.S. suppliers
decide to raise their prices, KFC can easily switch to the local
suppliers. This gives us a brilliant strategy. With this strategy, KFC
created competition among its suppliers, lowering the supplier
bargaining power. In terms of human resources, labor cost is
extremely low because the supply of non-skilled workers great
exceeds the demand for them. With so little buyer and supplier
bargaining powers, KFC is able to have a very tight control over its
prices and expenditures.
Substitutes and Complements
As mentioned above, there are a few major competitors in the fast-
food industry
in India for KFC, namely McDonald’s, Pizza Hut, Domino's and
Subway. The substitute products, in this case, would be burgers,
pizza, and sandwiches. Though they are competitors, their primary
products differ greatly from each other, in that they sell, chicken,
burgers and fries, pizzas, and sandwiches, respectively. Traditional
Indian dining, home-cooked meals, and grocery stores with ready-
to-eat foods are also substitutes, as families could choose any one
of these over fast food for a meal. These substitutes are definitely
considered healthy as compared to the fast food chains. Even foods
from street vendors count as substitute goods.
While other fast foods serve as substitute to KFC, they can also
serve as complements for fast foods as a whole. If the general price
of fast foods goes up, KFC’s price rises as well, and the same can
be said of the quantity sold of these products, which make them
complements to each other.KFC also sets up stores located near
popular tourist attractions, so tickets to these tourist spots are also
complementary goods because the more people tour these
attractions, the more customers KFC will get.

Rivalry
Unlike what one would expect, KFC has little rivalry with similar
fast-food chains in India. The primary reason is that their core
products are different, as in they sell different kinds of fast foods
with very different tastes and styles. For example, if KFC raised its
price for chicken by a small amount, Indian chicken lovers who
may not be as accepting to pizzas (many Indian people strongly
dislike the taste of cheese) are not going to switch to Pizza Hut just
because the price for KFC increased. In addition to that, these
restaurants have such different target customers that the fluctuation
of price for one restaurant is not going to affect the others. For
example, a full meal at KFC ranges about Rs. 100, whereas a full
meal at Pizza Hut can cost over Rs. 300.The drastic difference in
price assures no price competition between these restaurants.

PROMOTIONS
In India KFC not advertise there products too much because people
KFC due to its reputation in other countries. They promote their
products through special packages. They promote there products
through bill board, pamphlets and through other promotion
strategies

CURRENT TARGET MARKET

Segmentation
KFC has divided the market of India into distinct groups of
customers with different demands, tastes and behavior who require
separate products or
marketing mix.
In India the niche marketing is being used for particular classes of
people.
They have made segments of the market on the following bases.
 Demographical
 Behavior
 Geographical
By using these three bases they segmented the market as under.

DEMOGRAPHICAL BASIS
In demographics their first segment is consisted of the income
factor i.e.
high income, average income and low income.

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

 Taste conscious

 Quality conscious

 Class conscious

 Combination of price and quality

GEOGRAPHICAL BASIS
On the basis of the geographical factor we have divided our market
in three
main segments.
 Urban areas
 Sub urban areas
Profile criteria:
1.Gender: Kfc Is For Each Gender Both Male And Female.
2.Income: Everyone Can Use Kfc service Upper & Middle Class .
3.Age: Age Limitation For Using This Product Above 15
4.Occupation: By Profession Also Everyone Can Use This
Product Means Businessman Student Workers And Other Peoples.
5.Education: It Has No Need More Education That Why The
Person Who Know Something Can Easily Enjoy With This
Product.
6.Family Life Cycle: Kfc Is Suitable In Every Stage Of Life Like
Single Married Couple And Also Those Who Have Children Can
Use This Product.
7.Lifestyle: This Product is Used In Every Level Of Social Class
Like Upper, Middle Class.
8.Attitude : When The Customers Once Buy This Product After
That They Can Use The Product Continuously.
9.Purchasing Decision: Often Kfc Changes The Purchasing
Decision Of Customers Because Of Its Good Attributes.
10.Geographic Region: Geographically Kfc Is Used In Every Part
Of The Country As Well As All Over The World.
Product Positioning
Customer Perceive This Product As A Unique Product that Other
Are Not Giving .
Attitudes
The Attitudes Of The Public Is Very Good People Like Our This
New Product Like Others.
Purchasing Process:
Many People Come From Home To Eat This , And Some Make
Impulse Decision As They Saw It .
MARKET COVERAGE 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 Pakistan.
Product usage
 People are educated and they want variety in their diet.
 Normally people of rural areas don’t take fast food. On the
other hand people of
urban areas take fast food.
 Income of the people of urban areas is normally high and they
can afford to
purchase such products, which are slightly higher in price as
compared to
prevailing prices of local food in the market.
 People of Urban Areas are more quality conscious than the
people of Rural Areas.
 In Urban Area there lived people from every walk of life and
profit generation is
easier than in Rural Areas.
 Population density is higher in Urban Areas as compared to
Rural Areas, so the
number of customers are more in Urban Areas.

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

COMPETITORS
Because the fast food market in India is highly competitive, KFC
faces a wide number of direct and indirect competitors. KFC’s
main competitors are fast food chains such as McDonald’s and
Domino’s, which are already well established throughout India.
McDonalds’s in particular is a direct competitor, as they have
already successfully introduced their Salads plus line
(http://www.theage.co.in), which directly targets‘ healthy food’
conscious Indians. But, there are a number of other competitors
that is also focusing on ‘chicken’ types products. All this
competition makes it quite difficult for KFC to maintain or even
broaden their customer base. However, with the introduction of a
new and healthy product range, KFC can differentiate itself from
most competitors and will gain a competitive advantage.

CUSTOMERS
KFC’s customer market consists solely of the consumer market
.KFC’s products are bought by individuals (males, females,
singles, and families).Therefore, the product range KFC offer
should appeal to as many people within this consumer market as
possible, to ensure that the maximum amount of products can be
sold. The characteristics of these individuals and a segmentation of
them are discussed later in this report.

CURRENT SALES ANALYSIS

Market Share
KFC has a very long history and has the most recognize able brand
in chicken with over 50% of the market share. It becomes difficult
for the companies like Sub way, Mc Donald’s, Chicken planet,
Dixie or those who may want to enter in the market of fast food
restaurants.
Due to with over 50% of the market share in fast food industry
KFC has recognition around the world and has been globally
positioned for many years in India and to capture the market share
in India adopts champs philosophy
Environmental factors and opportunities
Political :
The operations of KFC are affected by the government policies on
the regulations of fast food operation. Currently government are
controlling the marketing of fast food restaurant because of health
concern such as cardiovascular and cholesterol issue and obesity
among the young and children in the country. Governments also
control the license given for open the fast food restaurant and other
business regulation need to follow such as for a franchise business.
Good relationship with government in giving mutual benefits such
as employment and tax is a must for the company to succeed in
any foreign market.
Economic:
Though for last 1 year their was economic slowdown all across the
globe but the sales of KFC and other fast food chains did not slow
down to that extent that of other sectors in. The GDP (Purchasing
Power Parity) is estimated at 2.965 trillion U.S. dollars in the year
2010. The GDP- per Capita (PPP) was 2700 U.S. dollars as
estimated in 2008. The GDP- real growth rate in 2007 was 8.7%.
India has the third highest GDP in terms of purchasing power
parity just ahead Japan and behind U.S. and China. Foreign direct
investment rose in the fiscal year ended March 31 2007 to about
$16 billion from just $5.5 billion a year earlier. There is a
continuous growth in per capita income; India’s per capita income
is expected to reach 1000 dollars by the end of 2007-08 from 797
dollars in 2006-07. This will lead to higher buying power in the
Hands of the Indian consumers. So taking into considerations the
economic factors of India KFC is safe. The only danger to
it will be if there is a terrorist attack in India and the victim is KFC.
Socio cultural:
India is the second most populous nation in the world with an
approximate population of over 1.1billion people. This population
is divided in the following age structure: 0-14 years – 31.8%, 15-
64 years – 63.1% and 65 years and above – 5.1%.
There has also been a continuous increase in the consumption of
fast food in India. The social trend toward fast good consumption
is changing and India has seen an increase of 90% fast food
consumption from the year 2002-2007. This increase is far greater
than the increase in the BRIC nations of Brazil (20 per cent),
Russia (50 per cent) and China (almost 60 per cent).
Thus this shows a positive trend for fast food industries in India.

Technological:
The Indian fast food Industry is heating up with a lot of foreign
players entering the Indian market. The technological knowhow
and expertise will also enter the Indian market with an increase in
competition. With the lower rates and increase technology the fast
food counters are attracting youth by giving them attractive deals.
For e.g. KFC and Domino’s pizza. For a fast food restaurant,
technology does not give a very high impact on the company and it
is not a significant macro environment variables. However
KFC should be looking to competitors innovation and improve
itself in term of integrating technology in managing its operation.
For example in inventory system, supply chain management
system to manage its supply, easy payment and ordering systems
for its customers and wireless internet technology. Implementation
of technology can make the management more effective and cost
saving in the long term. This will also make customer happy if cost
savings results in price reduction or promotional campaign
discount which will benefits them from time to time.

Environmental:As one of world largest consumer of beef,

potatoes and chicken, KFC always had been critics for world
environmentalist. This is because high consumption of beef
causing the green house effect by methane gasses coming from the
cow’s ranch. Large-scale plantation has effect the
environment and lost of green forest opening for plantation
activities. Vegetarian environmentalist criticizes the fast-food giant
for cruelty to animals and slaughtering. In America, once KFC
want to introduce whale burger causing uproar because whales are
endangered species. Before using paper packaging, KFC once had
been criticized for being insensitive to pollution because of using
ne based packaging for its food products. Imagine millions of
people purchase from fast food operator and how is the impact to
world environment by throwing away those hard to recycle
packaging. Our world is getting concern on environment issue and
business operating here should not just care for profit, but careful
usage of world resources for sustainable development and care for
environment safety and health for our future generation. Critics
and concern from all public or activist should be review and
support if necessary to ensure we play our social responsibility
better.
Legal factors:

As a certified fast food operator, there are many regulations and

procedures
that KFC should follow. For example is the Halal certification that
becomes a concern to Muslim consumers. KFC should protect its
integrity and consumer confidence by ensuring all materials and
process are as claimed or must followed.
Other legal requirement that the business owner should follow as
stipulated in laws are such as operating hours, business
registration, tax requirement, labor and employment laws and
quality & environment certification (such as ISO) in which the
outlet has been certified. The legal requirement is important
because the offenders will be fined or have their business
prohibited from operating which can be disastrous.

Boston Consultancy Group (BCG) Matrix

Question Mark:
Currently KFC have launched a new product in the market. They
have also tried to come into the beverages market by launching its
new brand of shakes called KRUSHERS. As it is a fairly new
product it comes in the category of the Question Mark in the BCG
Matrix. It has a low market share thus brings low revenue. KFC is
advertising a lot to popularize this product so there is a lot of
expenditure on it. This product is individually not bringing any
profits and is a cash drain for the company. Company may decide
to completely remove this product from the market if it does not do
well soon and start bringing in revenue.
DOG:
KFC’s Veg Thali comes under this category. Although company
had launched this product much earlier, it has still failed to become
a success. As KFC is known more for its non-veg food, this also
results in low demand for this item. It has a low market share and
although low on expenditure (as company does not spend on its
promotion), it does not bring in much revenue as demand is low.
The product is mostly CASH NEUTRAL.
CASH COW:
KFC’s Chicken Bucket is the most successful product of the
company. It has the highest market share amongst all the other
products. It has good demand in the market and brings in huge
sales revenue. The development and other expenses are also low
and thus this product is a CASH SIRPLUS for the company.
STAR:
The star product of the company is its crispy Boneless Chicken. It
has a high market share and brings in high revenue. But it also has
high developmental expenditure involved. The profit therefore is
generally not very high brought in by this product. This product is
CASH NEUTRAL for the firm. The company is trying make this
product a cow as well, by reducing the expenditure.
 SUMMARY OF CURRENT SITUATION

SWOT analysis mean strength, weakness, opportunities

and threats and the SWOT analysis of KFC are:
STRENGTHS
 Goodwill and reputation: The company certainly has earned
a good name and reputation by its previous products and
services in the market. It is even more recognized in other
markets outside India, where the company is among the leading
fast food giants. The brand is recognized and trusted in India for its
quality products, price, and customer service. It therefore has a
good head start and enjoys a good chance of becoming a leader in
Indian fast food industry.
 Employee Loyalty: Employee Loyalty is one of the major
strengths of KFC. The turnover rate in the company is amongst
the lowest in the industry.
Customer Loyalty: Despite gain by Boston Market and
Chick-fill A, KFC customer base remained loyal to the KFC brand
because of its unique taste. KFC has continued to dominate the
dinner and take out segment of the Industry.
Ranks highest among all chicken restaurant chains or
its convenience and menu variety. It generates $1B revenue each
year.
WEAKNESSES
KFC was losing market share as other Chicken chain
increased sales at a faster rate.
KFC share of Chicken Segment sales fell from 71
percent1999 , to less than 56 percent in 2009 , a 10 -years drop
of 15 percent.
Huge competition in this segment.
India is still mostly a vegetarian dominated cultured
society. South India is especially very much so. This may reduce
the market share of the company.
KFC has not yet invested much on R&D, and innovating new
products for Indian Markets. This may lead to failure of their
products as they are not in line with the Indian mind set, peoples
taste and preferences and their likes and dislikes. This may prove
fatal for the company.
OPPURTUNITIES
 New Markets: Globalization has opened doors for new
markets for the company. As the developed markets are mostly
saturated, the developing countries like India and China promises a
good market and generation of demand in the future. With more
than 70% of the markets in India being unexplored and un
organized, KFC has a good scope of expanding its operations in
the country.
 Cross Culture: Generally there is a good acceptance of
American culture of fast food in India. People are opening up to
fast foods more regularly in their daily lives and not just keeping it
a once in a month affair. Thus Indian mindset is fast changing.
 Large Youth population: India has a very large share of
youth population a compared to other countries. More than 60%
of the population is under the age of 30yrs. As the young
generation are more open to fast foods and demand it more, this is
a good news for the company.
New variety: Company can also come up with new variety in the
menu like Pizzas, garlic breads to attract more customers.

THREATS
Competition: Competitor companies like McDonalds are
fast catching up with the market. McDonald’s with sales of more
than 19 billion in 1999, accounted for 15 percent of the sales of the
nation’s top 100 restaurant chains.
Organizations like PETA People for Ethnic Treatment for
Animals have given a bad name to the company which may prove
disastrous to the image of the firm. Currently, KFC is under
massive attacks from animal organizations, questioning the way
KFC’s suppliers are threatening the chicken, before they got
slaughtered. Anti-KFC campaigns, such as the one from PETA are
affecting KFC’s brand image in a negative way and result in direct
dollar losses, as less people are consuming KFC chicken
Saturated US Market: Now KFC cannot rely on just its
home market to generate sales. As the US markets are already
saturated and leave no or little scope for growth, company
necessarily needs to look at offshore foreign markets to generate
sales and keep up the profits.

MARKETING STRATEGIES OF KFC

There are different strategies adopted by KFC for different events.
They market their products on different events and in different
activities as they are helping SOS village.
According to KFC, kids become the future permanents customer
sand we know very well that without any marketing strategy no
marketing program and no product is successful because we
depend upon customers, customer not depend on us.
KFC is following Niche Marketing and Societal Marketing
techniques.
KFC possess a western culture because some of the Indian
people are also following that culture.
 KFC 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.

MARKETING
Since 1982, KFC’s “All-American salute to Mothers” national card
contest has been KFC’s way of honoring moms and their families
for making mother’s Day KFC’s biggest sales day of the year. The
contestant courage’s children to creatively express their feelings
for their moms by making a homemade card and give them chance
to compete for more than$10,000 in cash and prizes. Educational
packets, including language, history and art exercises highlighting
Mother’s Day, were sent to thousands of schools nationwide.
There are 4 P’s of Marketing:
1.PRODUCTION
2.PRICING
3.PROMOTION
4.PLACEMENT

Production:
Basically the product is anything that be offered to a market for
attention, acquisition, use, or consumption that might satisfy a
want or need. KFC is specially dealing in the chicken products;
Basically, KFC has the special raspy for chicken products that is
why, KFC known as a chicken specialist allover the glob. KFC
target the Asia and east side because they observe that they people
are like the chicken products, so they enter in the market due to the
demand of their chicken products. KFC product variety of product
in the chicken, those products are:
1. PRODUCTS:
• Original recipe® chicken
• Extra Tasty Crispy TM chicken
• Hot Wings TM pieces
• Tender Roast® chicken
• Chunky Chicken pot pie
• Kentucky Nuggets®
• Colonel’s Crispy Strips®
• Honey BBQ sandwich
• Original Recipe® Sandwich
• Tender Roast® Sandwich
• Triple Crunch® Sandwich
• Triple Crunch ®Zinger® Sandwich
2. BRAND:
There are three brands of the KFC:
1)Taco bell
2)Pizza Hut
3)Long john silvers

Pricing:
KFC during pricing their products keep the different points in the
mind like they adopt the cost base price strategy. Pricing of the
product includes the Government taxes and excise duties and then
they co meat final stage of determine the price of their products.
KFC prices of products are a bit high according to the market
segment and it is also compatible to the stander of their products.
Calculation of the price under Cost Based Pricing Strategy:
Total Pounds of Chicken Served in KFC Restaurant Annually=
1.914 Billion
Total KFC Chicken Pieces Sold Annually = 5.89 Billion
Total Retail Sales = $8.9 Billion
Sales Price of per Chicken Piece
= Total Retail Sales / Chicken

= $8.9 Billion / $5.89 Billion

=$1.51
We assume that Fixed Cost is = $6000000000
Variable Cost
= $675000000
Profit Margin is Or Mark Up= $225000000(25% of Sales)
Per Unit Variable Cost= $675000000 / 5890000000
= $ 0.115
Unit Cost = Variable Cost + Fixed Cost / Chicken pieces Sold
= 0.115 + 6000000000 / 5890000000
= 0.115 + 1.02
= $1.135
Now suppose manufacturer wants to earn 25% mark up on sale.
The
manufacturer mark up price is calculated:
Mark Up Price = Unit Cost / (1 – Desired Return on Sales)
=1.135 / (1-.25)
= 1.135 / 0.75
= $1.51

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 and one of the most
important thing that they uses media especially the newspapers to
promote their products. They are also creating awareness among
the masses about their existing product range as well they tell us
about the future product.
Marketing efforts to be taken by the restaurant:
 Paste delivery posters at petrol pumps, flats, colleges, plazas,
and departmental stores.
 Distribution of delivery flyers in residential areas, markets,
plazas and institutions (as per the plan)
 Visit offices and business places.

Placement:
In the case of the KFC the placement of the product is not
important but the placement of the restaurant is important. The
products of the KFC is cooked at the sport and then served after
that. KFC Cavalry branch opened in June 1998, in the main
commercial zone of Cavalry.
Grounds near the Jinnah Flyover. The restaurant is a three-story
building including the basement (where the chicky play area is
located). It is ideally located in the center of a main commercial
and residential area of Lahore. The area that KFC Cavalry caters
for is the residential 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 Barkat Market). KFC also
target the Faisalabad and open its branch in D 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 middle class 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.

PACKAGING
We are asked as many questions on our packaging as our products
by our customers. The packaging for KF C products is chosen
according to performance against three key criteria:
Heat Retention
Moisture removal
Grease absorption
The packaging material and carton design are all adapted to
maximize performance against these three criteria.
Recycled Paper
All our clamshells and chicken boxes contain as much recycled
material as it is legally allowed. By law we are required to have
virgin fiber board in any part of the packaging that is in contact
with food. Any virgin fiber comes from board
suppliers who use pulp bought from managed forest in
Scandinavia. This ensures that any wood cut for paper production
is replaced with new plantings.

Environmental concerns
Over and above ensuring our packaging is supplied via recycled or
renewable resources; KFC are enthusiastically complying with the
new environmental directives on recovery and recycling of
packaging waste.

Litter
We at KFC UKI are aware of our responsibilities to the
Management of Litter and all our packaging carries the ‘Keep your
Country Tidy’ signs.

BRANDING
This research measured and compared the brand identity of
Kentucky Fried Chicken (KFC) in India. Brand identity was
defined as the customer impressions of four different KFC identity
elements - properties, products, presentations, and publications. 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 a model where differences in cultural frames of reference
lead consumers to actively localize the brand identity of this
nominally globalized product.

CONCLUSION

It is clear from the above report that a high number of

people actually like to order from their home or workplace
rather than coming. This may be due to more convenience,
time shortage or just not willing to come and dine. Certainly
the home delivery market is huge and KFC can take well
advantage of the situation. Thus it would be in the best
interest of the company to start the service as soon as
possible and capitalize on the opportunity. KFC expects a
rise in the orders by at least 20% by starting this service.
Therefore, to conclude we would say that KFC should
definitely have a home delivery service.