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PART-A 1. COMPANY PROFILE 2 Welcome to KFC KFC INDIA KFC is the world’s No.1 Chicken QSR and has industry leading stature across many countries like.

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Presentation on theme: "PART-A 1. COMPANY PROFILE 2 Welcome to KFC KFC INDIA KFC is the world’s No.1 Chicken QSR and has industry leading stature across many countries like."— Presentation transcript:

1 PART-A 1

2 COMPANY PROFILE 2

3 Welcome to KFC

4 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 4

5 Introduction KFC Corporation, or KFC, founded and also known as Kentucky Fried Chicken, is a chain of fast food restaurants based in Louisville, Kentucky. KFC is a brand and operating segment, called a "concept" of Yum! Brands since 1997 when that company was spun off from PepsiCo. KFC primarily sells chicken in form of pieces, wraps, salads and sandwiches. While its primary focus is fried chicken, KFC also offers a line of roasted chicken products, side dishes and desserts. 5

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7 HISTORY OF THE COMPANY 7

8 KFC HHHHHHHHHH 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 maxim888um 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 8

9 STRUCTURE 9

10 Kentucky Fried Chicken 10

11 Kentucky Fried Chicken Mission Statement. “ To be the leader in western style sqeurivcikce restaurants through friendly service, good quality food and clean atmosphere 11

12 Marketing Mix The marketing mix is generally accepted as the use and specification of the 'four Ps' describing the strategic position of a product in the marketplace. Product Price Place Promotion 12

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15 Product Anything that can be offered to a market to satisfy a want or need. KFC's specialty is fried chicken served in various forms. KFC's primary product is pressure-fried pieces of chicken made with the original recipe. The other chicken offering, extra crispy, is made using a garlic marinade and double dipping the chicken in flour before deep frying in a standard industrial kitchen type machine. 15

16 “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” KFC specialized in chicken and they say- 16

17 Introducing New Product 17

18 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/- 18

19 Segmentation Geographic segmentation : KFC has outlets internationally and sells its products according to geographic needs of the customer. In India KFC focuses how geographically its customers demand different products. In north India Chicken is the main selling product, while in the south the Veg. items sell more than the chicken. 19

20 Segmentation Demographic Segmentation In demographic segmentation, the market is divided into groups based on an age, gender, family size, income, occupation, religion, race and nationality. KFC divides the market on demographic basis in this way: Age is between 6-65. Gender is both males and females. Family size is 1-2, 3-4, 5+ Income is Rs 10,000 n above. Family lifestyle is almost all. 20

21 Segmentation Psychographic segmentation Dividing a market into different groups based on social class, lifestyle, or personality characteristics is called psychographic segmentation. KFC divides market on the basis of psychographic variables like Social class- Upper and Middle class. Lifestyle is not specific. Personality is ambitious and authoritarian 21

22 KFC Menu 22

23 Menu Original recipe® chicken · Extra Tasty Crispy chicken · Hot Wings pieces · Tender Roast® chicken · Chunky Chicken pot pie · Kentucky Nuggest® · Colonel’s Crispy Strips® · Honey BBQ sandwich · Original Recipe® Sandwich · Tender Roast® Sandwich · Triple Crunch® Sandwich · Triple Crunch ®Zinger® Sandwich 23

24 Price Price is the any amount of money that customers have to pay while purchasing the product. More broadly, price is the sum of all the values that consumers exchange for benefits of having or using the product or services 24

25 Demographic factors Age: Generally there is no age limit focus by the KFC. The target and focus is on each and every individual in a society. KFC finds its largest demographic in the young of any society. Gender: Both male and females are focused by KFC, gender does not play any role here. Household Size: This plays a vital role in the demographic factor of the KFC. Generally they target whole families rather than single persons. This being the reason for their Family Meals which are basically bundled items served at a nominally cheaper rate. Price 25

26 Economic Factors Income: Income is an important key factor for KFC. This factor decides which class is to be targeted. In the early rise of KFC they focused on the upper class but slowly are introducing economy meals that attract the lower to middle classes. Consumption Behavior: It estimates the behavior of people, their liking and disliking towards the pricing of the products. Price 26

27 Geographic location preference: urban semi urban Price 27

28 Behavior segmentation taste conscious quality conscious class combination of product and quality Price 28

29 Pricing Strategy Market skimming: KFC globally enters the market using market skimming. Their products are priced high and target the middle to upper class people. Gradually they trickle down the prices focusing on the middle to lower class people to penetrate both sides of the market. Price 29

30 Competition We can compare the price of their products with McDonald, Dominoes and Pizza Hut. If the competitor provides the same product at a lower price then the organization usually lowers the price of its product too. In the case of KFC, Fried Chicken is its main selling point and controls a monopoly over the Indian fast food market (only with fried chicken). It prices its burge 30rs, French fries and soft beverages with relation to its competitors. Price 30

31 Cost Based KFC price their product keeping different points in view. They adopt the cost base price strategy. Pricing of the product includes the govt. tax and excise duty and then comes the final stage of determine the price of their product. The products are bit high priced according the market segment and it is also comparable to the standard of their product. In the cost based method we include the variable and fixed cost. Price 31

32 Place TARGET AREAS “Free home Delivery” strategy – They provide free home delivery to offices & homes (select countries). Accessibility – Resulting in several outlets to cater to the needs of people in & around the city. Hectic lifestyle – Due to the hectic lifestyle of office goings individuals the fast food concept saves time of preparing food and gives the customer a full meal quickly. Economically convenient – The pricing appeals to the many classes of a society. 32

33 TARGET MARKET “The process of evaluating each market segment’s attractiveness and selecting two or more segments” As the outlets of KFC are in posh area and prices are too high (overhead expenses-rent, air-conditioning, employees), so KFC targets upper and middle classes. Target market depends upon size and growth rate of population, Company resources and structural attractiveness of market segment. 33

34 Target Market Geography: India Metros and Tier II Cities Demography: Urban people of both genders aged between 15 to 45 years of age. Income Group: A, B and C segment of people. Psychographic: People who have a busy lifestyle and are influenced by western culture 34

35 INDIAN MARKET An important thing to note is that Indian Fast food market is fundamentally different-Eating at home remains very much ingrained in Indian culture. Fast food joints or QSRs are one of the cheap sources of taking a break from home cooked food and eating out. The growth in nuclear families, particularly in urban India, exposure to global media and Western cuisine and an increasing number of women joining the workforce are responsible for changing this trend 35

36 Market Positioning For a product to occupy a clear, distinctive and desirable place relative to “Competing products in the minds of target consumer.” In KFC feedback is taken from the customer in order to know the customer demands and then improvements are made in products. KFC focuses on pure and fresh food in order to create a distinct and clear position in the minds of customers KFC has a strong brand name and they are leading the market in fried chicken. 36

37 QUALITY assurance certificate Quality control over ingredients Every chicken tested 37

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41 PERFORMANCE OF THE COMPANY 41

42 PART-B 42

43 INTRODUCTION OF THE COMPANY 43

44 STRATEGY Given the competitive nature of fast food joints, KFC uses the “Push Strategy” to help them create: – Awareness – Be different – Sound attractive Place 44

45 PHILOSOPHY OF KFC The CHAMPS Program THE CHAMPS These are: Cleanliness Hospitality Accuracy Maintenance of Facilities Product Quality Speed of Service 45

46 CHANNELS KFC believes in first level channels in the order given below: – Manufacturers – Retailers – Consumers Place 46

47 CHANNEL PROCESS KFC works on the flow of good operation techniques i.e. “Good Operating Manager→ leads to “Good Team Selection →Good Services → Good Targets → Good Revenues through the following internal strategies: Training Incentive based targets Recognition for good work Performance based bonus Employee benefits to keep them motivated Promotion Place 47

48 Promotion 48

49 Promotion Promotion is the method used to inform and educate the chosen target audience about the organization and its products. Using all the resources of promotion: Advertising Sales Promotion Public Relations Events and Experiences Coupons, Discounts and Bundled packages An organization finds most of its meanings and survival through promotion. At KFC, Promotion is the main tool to bring all chicken lovers attention towards its delicious one-of-a-kind product, the Fried Chicken. 49

50 Profile criteria 1. Gender: KFC is for each gender both male and female. 2. Income: Everyone can use the KFCservice upper and 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. 50

51 Product life cycle 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. 51

52 Advertising The logo of the smiling Colonel is probably one of the most recognized faces in the world and instantly brings the image of fried chicken to one’s mind. KFC and its new company jingle, “finger lcikin good” is a frequent announcement on televisions, billboards, flyers and radio. The concept of showing a normal customer deeply involved in devouring his piece of chicken usually turns on the drool factory in everybody’s mouth and makes them rush to the nearest KFC. In India where chicken lovers are plenty abound these ads featuring normal people connect instantly and create a rush at their outlets. Using the following methods KFC spreads its message of finger licking good chicken. Promotion 52

53 Advertising 53

54 Advertising One of KFC's latest advertisements is a commercial advertising its "wicked crunch box meal". The commercial features a fictional black metal band called "Hellvetica" performing live, the lead singer then swallows fire. The commercial then shows the lead singer at a KFC eating the "wicked crunch box meal" and saying "Oh man that is hot". In 2007, the original, non-acronymic Kentucky Fried Chicken name was resurrected and began to reappear on company marketing literature and food packaging, as well as some restaurant signage 54

55 Advertising Using Reminder advertisements KFC stimulates repeat purchases of its products. The company anthem “finger linkin good” is just a wake up call to the consumer to remind them how good they felt the last time they ate KFC chicken. Sponsorship is another tool to strengthen an organizations image. KFC is currently the sponsor of the Australian Cricket Team and the colonel logo can be seen on their uniforms throughout the matches. Promotion 55

56 Sales Promotion KFC uses the following tools to further enhance its sales. Premiums Exhibits Coupons Entertainment Promotion 56

57 Sales Promotion 57

58 Sales Promotion All KFC outlets offer its customers with various forms of incentives to buy its Chicken. Using coupons that one can acquire after spending a particular amount over a period of fixed time, customers can enjoy the benefits of free meals or free add-ons. Additionally they provide meal vouchers and exciting offers in their print ads, which the customer must cut and bring along. Promotion 58

59 COMPETITIVE ADVANTAGE KFC McDonalds Spicy Products Indian people like spicy products instead of Burger and French Fries boiled food Arabian Rice and Zinger BurgerBig Mac Free Delivery Charges for home delivery Chicken is eaten by every community Beef is banned in some community Local Staff and Highly Qualified becauseIts Staff consist of simple Graduates local staff can better deal with the and give them training customers. KFC uses Top to Bottom and Bottom to McDonalds Uses Top To Bottom Top Approach in Management. Approach. KFC is Co branding with WallsNo such approach 59

60 Environmental Trends Taken into account by KFC KFC operates in a larger macro environment of forces that creates opportunities, but also threats. (Kotler et al 2003). A company such as KFC usually cannot influence trends in the macro environment, as they affect people and organisations on a larger scale.However, KFC has to carefully examine macro environmental trends and must create competitive responses to such trends.There are six major macro environmental forces KFC has to take into account. 60

61 Legal Factors a certified fast food operator, there are many regulations and procedures that KFCAs 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 61

62 Political issues 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. 62

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65 65 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 Pakistan 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

66 SWOT ANALYSIS 66

67 67 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 Pakistan, where the company is among the leading fast food giants. The brand is recognized and trusted in Pakistan 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 Pakistan fast food industry

68 68 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 for its convenience and menu variety. It generates $1B revenue each year

69 69 Weaknesses KFC was losing market share as other Chicken chain increased sales at a faster rate. KFC share of Chicken Segment sales fell from71 percent 1999, to less than 56 percent in 2009, a 10 -years drop of 15 percent. Huge competition in this segment. KFC has not yet invested much on R&D, and innovating new products for Pakistan Markets. This may lead to failure of their products as they are not in line with the Pakistan mind set, peoples taste and preferences and their likes and dislikes. This may prove fatal for the company

70 70 Opportunities New Markets :Globalization has opened doors for new markets for the company. As the developed markets are mostly saturated, the developing countries like Pakistan and China promises a good market and generation of demand in the future. With more than70% of the markets in Pakistan being unexplored and unorganized, 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 Pakistan. People are opening upto fast foods more regularly in their daily lives and not just keeping it a once in a month affair. Thus Pakistan mindset is fast changing.

71 71 Large Youth population :Pakistan 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.

72 72 Threats Competition : Competitor companies like McDonalds are fast catching up with the market.McDonald’s with sales of more than19 billion in 1999, accounted for 15 percent of the sales of the nation’s top 100 restaurant chains. Organisations like PETA People for Ethnic Treatment for Animal shave given a bad name to the company which may provedisastrous 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 gots laughtered. 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

73 RECOMANDATION 73

74 INTRODUCTION y KFC is the worl d lar g est a nd most well kn ow n c hi ck e n resta u ra n t, with c hai n i n more tha n 10 tho u sa nd lo c atio n s a nd worl d wi d e i n 80 c o un tries. y. KFC is p art of YUM B ra nd s Inc. y In 1997, KFC fra nc hise d with G ray M e c a nz a In ter n atio n al a nd starte d wor k i n P a k ista n y A fter 10 years KFC has 45 o u tlets i n P a k ista n. INTRODUCTION y KFC is the worl d lar g est a nd most well kn ow n c hi ck e n resta u ra n t, with c hai n i n more tha n 10 tho u sa nd lo c atio n s a nd worl d wi d e i n 80 c o un tries. y. KFC is p art of YUM B ra nd s Inc. y In 1997, KFC fra nc hise d with G ray M e c a nz a In ter n atio n al a nd starte d wor k i n P a k ista n y A fter 10 years KFC has 45 o u tlets i n P a k ista n. INTRODUCTION y KFC is the worl d lar g est a nd most well kn ow n c hi ck e n resta u ra n t, with c hai n i n more tha n 10 tho u sa nd lo c atio n s a nd worl d wi d e i n 80 c o un tries. y. KFC is p art of YUM B ra nd s Inc. y In 1997, KFC fra nc hise d with G ray M e c a nz a In ter n atio n al a nd starte d wor k i n P a k ista n y A fter 10 years KFC has 45 o u tlets i n P a k ista n. H ISTORY y A t the a g e of 40 as a n o p erator of a servi c e statio n i nC or b i n, K e n t uck y C olo n el ret u r n e d to his love of c oo k i ng a nd b e g a n to c oo k a nd serve foo d to h ung ry travelers from his ow n livi ng qu arters. y S i nc e 1950 KFC has g row n at a remar k a b le p la c e from o n e roa d si d e resta u ra n t i n to a n i n ter n atio n ally re n ow n e d resta u ra n t c hai n a nd o n e of the lar g est c hai n of c hi ck e n resta u ra n ts i n the worl d y. T he bu si n ess g rew lar g er tha n the C olo n el c o u l d ha nd le, so he sol d it to a g ro up of p eo p le who forme d the K e n t uck y F rie d C hi ck e n C or p oratio n Alternatives Not Chosen Our recommendations to KFC Cafeteria Market Development Concentric Diversification Similar to Furrs or Lubys Fast food with traditional restaurant environment Reaching out to a new market KFC Groceries Product Development Market Penetration Concentric Diversification Similar to Taco Bell groceries Advantage of Name Recognition Frozen Meals Chicken Breading Mix 74

75 QUESTIONNARE 75

76 76 Questionnaire about KFC in Peshawar 1. Age………… 2. Your occupation………………………………… 3. When did you know about KFC?..................... 4.Why do you choose KFS but other restaurants?………………………………………………………………………………… 5. By what way did you know about KFC? a.Advertisement on newspaper/magazine b. Internet c.Family/friends/ colleagues d. Banner e. People working for KFC f. Leaflets g. Others……………… 6. Do you think KFC should start Home Delivery Service ? A. yes b. No c. If Yes ( Why ) 7. In terms of location, why do you come to KFC? a.It lies on a main road b. It lies next to a supermarket c.It looks out of 2 roads d. Others…………………………….(You can tick more than 1 option) 8.Would you prefer order at home or dine in the KFC ? a.Dine In b. Order at home c. Really doesn’t matter

77 77 9.What do you think about the parking area at KFC? a.Good b. Normal c. Bad(Please, specify your reasons)…………………………………………… 10.How does the KFC’s prestige affect your decision a.Very much b. Normal c. Very little 11.Does the logo attract you? Yes…………..No…………….(if yes, please specify your reasons)…………………………………………………… 12.How often do you come to KFC a.Every 3 days b. Once a week c. Once a month d. Other options…………………. 13.What do you think about the price here? a.Very expensive b. Expensive but still payable c. Reasonable d. Cheap 14.How do you feel about KFC's food? a.Delicious b.Good c. Normal d. Not Good 15. What are your suggestions for improving KFC's service quality? (If any)…………………………………………………………

78 COMPANY OBJECTIVES 78

79 Long-term company objective KFC is a publicly traded company with responsibilities to all shareholders By becoming a more “socially responsible” corporation we hope to attract a new type of investor while retaining our current stockholders. Ben & Jerries & Starbucks have benefited financially by promoting their “socially responsible corporation” KFC hopes to achieve this by becoming synonymous with hospice.

80 CONCLUSION 80

81 81 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 arise 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.


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