SUMMER TRAINING REPORT ON

STRATEGIES TO INCREASE
REVENUE OF KFC

Submitted to department of management studies in

Partial fulfillment of the requirements for the Award of Degree of

Bachelor of Business Administration

UNDER THE SUPERVISION:

Ms. ZEBA YASMEEN
(Asst. Professor)

SUBMITTED BY:

MD. ABRAR
CLASS: BBA 5TH SEM
ROLL No. BBA/13/19

AL-FALAH SCHOOL OF ENGINEERING. & TECHNOLOGY

DHAUJ, FARIDABAD
DATE OF SUBMISSION:2015

DECLARATION
I, the undersigned, hereby declare that the work presented herein is genuine work done originally
by me and has not been published or submitted elsewhere for the requirement of a degree
programme or award of any diploma. Any literature, data or works done by others and cited
within this project report has been given due acknowledgement and listed in the reference
section.

MD. ABRAR
Date:

Faculty guide

ACKNOWLEDGEMENT
I express my sincere gratitude to my industry guide Tania sinha, Management Supervisor, Ogilvy
& Mather Pvt Ltd for his able guidance, continuous support and co-operation throughout my
project, without which the present work would not have been possible.
I would also like to thank my entire team of colleagues at Ogilvy & Mather Pvt. Ltd, for the
constant support and help in the successful completion of my project.
Also, I am thankful to my faculty guide Ms. Zeba Yasmeen of my institute for her continued
guidance and invaluable encouragement.

Md, Abrar
(STUDENT)

TABLE OF CONTENTS

1. EXECUTIVE SUMMARY
2. OBJECTIVE
3. METHODOLOGY
4. LITERATURE REVIEW
5. RESEARCH METHOLOGY
6. SWOT
7. ABOUT THE COMPANY
8. MARKETING STRATEGY
9. SWOT ANALYSIS
10.OTHER STRATEGIES
11.FINDINGS
12.CONCLUSION
13.BIBLIOGRAPHY
14.QUESTIONNAIRE
15.RECOMMENDATIONS
16.SYNOPSIS

EXECUTIVE SUMMARY
The report basically presents the strategies to determine the opportunities for KFC in the fast
food sector. The report gives an insight about the strategies and measures KFC needs to adopt for
enhancing its revenue in food and beverage sector.
KFC IS synonymous with chicken. It has to be because chicken is its flagship product.. The
vegetarian menu in India came about when KFC found the country had about 35 per cent
vegetarians, and in metros such as Delhi and Mumbai, almost 50 per cent. The non-vegetarian is
the obvious target customer because, India have over 70 per cent non-vegetarians. But she also
observes that chicken is KFC's strength. KFC's vegetarian menu is almost exclusive to India and
is the most extensive. Most countries either do not have a vegetarian menu, and some which do,
have a burger at the most. "Contrary to affecting chicken sales, the presence of a vegetarian
menu has made the brand more relevant to a wider cross-section of the consumer society.
Industry analysis is guide to know the profitability of the fast food industry by as assists us in
Industries are different from each other and to understand the working of industry it is necessary
to first solve the complex economic issues. Industry analysis not only helps to assess a particular
industry and its performance but also provides with important information about few industrys
aspect. Moreover, the industrial analysis assists in identifying the core factors affecting
performances in vertical trading relationships and horizontal competitive relationships. Here the
horizontal competitive relationship refers to the set of distinct businesses the firms compete in.
Industrial analysis facilitates the determination of how changes in the business environment
affect the industrys performance. In addition to this, it identifies opportunities and threats in the
business landscape.
The investigation exhibits information on several spheres of GLOBAL FAST FOOD
INDUSTRIES and has used the industrial analysis in order to have in depth knowledge of the
industry. This report also contains factors that affect the profits of an industry.
Market research is the format which enables KFC to identify this key information. Accurate
research is essential in creating the right mix to win customers loyalty.
In all its market KFC faces competition from other businesses. Additionally economic, legal and
technological changes, social factors retail environment and many other elements affect KFC
success in the market.

Market research identifies these factors and anticipates how they will affect peoples willingness
to buy. As the economy and social attitudes change, so do buying patterns. KFC needs to identify
whether the number of target customers is growing or shrinking and whether their buying habits
will change in the future.
Market research considers everything that affect buying decisions. These buying decisions can
often be affected by wider factors than just the products itself. Psychological factors are
important, e.g. what image does the product give or how the consumer feels when purchasing it .
There are a limited number of customers in the market. To build long-term business it is essential
to retain people once they have become customers. For example a parent with two children might
visit and visits KFC to give the children a treat. Children want to visits as it is fun place to eat. A
business customer visits KFC during the work day as service is quick the food taste is great and
can be eaten in the car without affecting a busy work schedule. These examples represent just a
few of KFC's possible customers profile. Each has different reasons to come to kfc
Using this type of information KFC can tailor communication to the needs of specific groups. It
is to the needs of specific group. It is their needs that determine the type of products and services
offered, prices charged, promotions
Created and where restaurants are located. To meet the needs of the key market it is important to
analyses the internal marketing strengths the organization.
Strengths and weaknesses must be identified, so that a marketing strategy which is right for the
business can be decided upon.KFC learnt very early the high demand for vegetarian products in
India..We respect the Indian law and our guidelines completely adhere to them. KFC's brand
standard products are their strength throughout the world, KFC works around the core and gives
consumers products with a familiar taste, especially "important in a country like India that is
home to such distinct and different food habits". KFC's challenge, is to manage a brand's market
with the right degree of flexibility so as to be strong in different and varied product markets.

OBJECTIVE
The motive of this project is to generate the idea of sustainable competitive growth through
which various plans of increasing food and beverage REVENUE which can be put into action by
means of analysis of market potential.

PURPOSE OF THE STUDY

Purpose of making project is to understand the basic fundamentals of foods and beverage
industry and to understand the formulation and execution of strategies to sustain and maximize
the profit of the restaurant and the strategy to increase the sale in food and beverage sector.

Profit Maximization ensuring growth of company for long term benefit.

Brand Building.

Enhance Customer Experience.

Establishing global standards of product quality and service excellence.

Market Tapping.

Maximizing promotion

METHODOLOGY
By collecting data through various sources:
1. Concerned PR Agencies.

Our organization (KFC) has hired OGILVY agency for arranging for media
coverage, press reviews, etc.

2. Marketing Team.
3. Guest Feedback Forms.

The restaurants marketing team keeps track of guest feedback and calls guests
for their comments/suggestions if they seem disappointed in the comment cards.

4. E-Marketing
Plans for increasing restaurant revenue can help a local restaurant make more profit and
offer better services
To increase food and beverage revenue of an organization marketing has to be done which
includes 4 tools or 4 Ps. These include:1. Product-includes quality, taste, brand of the product
2. Place-place includes the channel of distribution like franchisees in case of restaurant like KFC
3. Promotion-one of the key aspect of the modern marketing is promotion of the services
brought about through sales promotion and advertising methods. The tools includes offers,
discounts, direct promotions etc and the advertising of the product so that the potential customer
has all the information about the product
4. Price-the tools under pricing includes prices, discounts, terms of payments etc.

Literature Review Of Fast Food Industry

With todays hectic lifestyles, timesaving products are increasingly in demand. Perhaps one of
the most obvious examples is fast food. Today the demand for the, hectic lifestyles, timesaving
products are increasing. Obliviously one of the example is Fast Food Industry. The rate of growth

in consumer expenditures on fast food has led most other segments of the food-away-from home
market for much of the last two decades. Since 1982, there is growth rate in consumer spending
at fast food. The consumers spent at fast food outlets grew at an annually proportion of awayfrom-home
food
expenditures
on
fast
food
also
increased.
Everyone eats Fast Food even knowing that it is not healthy for them. Reasons are because of
speed, convenience and price. However, fast food has many hidden costs, including the high
price of bad health. Not to mention the fact that for such cheap food, you're actually being
overcharged by a big amount. So the real reason is not price, but convenience. You can get much
cheaper food by cooking for yourself, but you are not always at home to do the cooking, or you
do
not
always
feel
like
cooking.
Now People want quick and convenient meals they do not want to spend a lot of time preparing
meals, traveling to pick up meals or waiting for meals in restaurants. That result, consumers rely
on fast food. Knowing this fast food providers are coming up with new ways to market their
products that save time for consumers. The rapid rate at which the fast food industry continues to
add outlets is as much a reflection of consumer demand for convenience as it is a reflection of
demand for fast food itself.
Industry Analysis of the Fast Food Industry:
1. A few of the chief economic and business characteristics of the global fast-food industry are as
follows: In the market growth rate the expected food sales is predicted to increase by $208
billion by 2020 with us already being at $800 billion by 2001. Under entry barriers for the fastfood industry the main concerns would be the entry costs, location, capital cost, and licensing.
For a business to have success they must have the right location. Under exit barriers there are
land leasing, building leases, capital cost.
2. Some of the driving forces include the quality of the food, price of the food, and the nutritional
value. Some of the consumers that are playing an important role in fast food are women
employed outside the home, two-earned households, higher income, and smaller size of the
family. Increased food spending driven by population growth is just one way consumers will
shape the future of the US food system.
3. Five forces:
a. Rivalry among competitors- in the fast-food industry it's who can get the food out the fastest.
b. New entrants- the competition is increasing due to not having many entry barriers.
c. Substitute products- there are many choices in the fast food industry leaving consumers with
so many different choices. Therefore each individual fast-food restaurants needs to differentiate
their product so people will want to come back for their product. For example what is it about
Popeye's chicken vs. KFC's?
d. Suppliers and buyers- in the fast-food industry if the buyers aren't satisfied with the suppliers
than they can easily switch their suppliers leaving the suppliers with a disadvantage. Also if
suppliers cannot offer something unique that only restaurants can get form them, then they have
no power to keep that restaurant's business.

4. A few factors that are critical to success in the fast-food industry, they are timeliness of the
food, quality of the food, quantity of the food, and the price of the food .

RESEARCH METHODOLOGY
The information required for conducting the study would be based on questionnaire. The
questions are designed to know the customer perception about KFC. The analysis would be
based on primary data collected through questionnaires and information obtained through
internet and journals regarding the revival marketing strategy adopted by KFC in India.

RESEARCH DESIGN- DESCRIPTIVE

The research design would be descriptive in nature as I have to find out the underlying
perceptions and behavior of consumers.

RESEARCH APPROACH- QUESTIONNAIRE

The questionnaire asked from respondents is basically of objective type. It is supported by both
open and close ended questions.
The questionnaire method is used to know the consumer behavior and perception. The questions
are intended to know the underlying factors that affect perception towards KFC in India.

RESEARCH METHODOLOGY- SURVEY METHOD

For achieving the objectives of study, survey was conducted. For conducting the survey a
questionnaire was made. The respondents were duly asked to fill questionnaires regarding their
perception, likings, and preferences regarding KFC.

Method of Data Collection:

Primary Data:
The primary data for the project is collected through questionnaire filled by the respondents.

Secondary Data:

The secondary data used in the project has been collected from Marketing and advertising
agency for KFC-Ogilvy, articles, websites & Books.

SAMPLING TECHNIQUE RANDOM SAMPLING

Sample size- 60
Statistical tools- MS-excel
FAST FOOD INDUSTRY
Introduction
Fast food is the term given to food that can be prepared and served very quickly. While any meal
with low preparation time can be considered to be fast food, typically the term refers to food sold
in a easrunt or store with low quality preparation and served to the customer in a packaged form for aket-ou/wy.
Outlets may be stands or oksi, which may provide no shelter or seating, or fast odf easrunt (also known as quick
service restaurants). Franchise operations which are part of resatun chi have standardized foodstuffs shipped to each
restaurant from central locations.
The acplit requirements involved in opening up a fast food restaurant are relatively low. Restaurants
with much higher sit-in ratios, where customers tend to sit and have their orders brought to them
in a seemingly more upscale atmosphere may be known in some areas as asftceulrn.

History
The concept of ready-cooked food for sale is closely connected with urban development. In eAncit omeR
cities had street stands that sold bread and wine. A fixture of East Ain cities is the nodle shop. aFetbldr and afel are today
ubiquitous in the Midle East. Popular nadIi fast food dishes include vad p, panuir and dahi v. In the French-speaking nations of West Africa, oadrsie tn
in and around the larger cities continue to sellas they have done for generationsa range of
ready-to-eat, char-grilled meat sticks known locally as brocehst.

The Start of Fast Food Culture

The concept of fast food pops up during 1920s.The 1950s first witnessed their rapid
proliferation. Several factors that contributed to this explosive growth in 50s were:
(1) Americas love affair with the automobiles.
(2) The construction of a major new highway system.
(3) The development of sub-urban communities.
(4) The baby boom subsequent to world war second.
Fast-food chains initially catered to automobile owners in suburbia.
On the go
Fast food outlets are take-away or take-out providers, often with a "drive-through" service which
allows customers to order and pick up food from their cars; but most also have a seating area in
which customers can eat the food on the premises. People eat there more than five times a week
and often, one or more of those five times is at a fast food restaurant.
Nearly from its inception, fast food has been designed to be eaten "on the go", often does not
require traditional ecurytl, and is eaten as a finger odf. Common menu items at fast food outlets include fish and
chips, sandwiches, pitas, hamburgers, friedchkn, French fries, echnkiugst, acots, pizza, hot dogs, and ceiram, although many fast food
restaurants offer "slower" foods like chil, mashedpot, and asdl.

Variants
Although fast food often brings to mind traditional American fast food such as hamburgers and
fries, there are many other forms of fast food that enjoy widespread popularity in the West.
Chinese takeaways/takeout restaurants are particularly popular. They normally offer a wide
variety of Asoiandf which has normally been fried. Most options are some form of noodles, rice, or meat.
Sushi has seen rapidly rising popularity in recent times. A form of fast food created in apJn. sushi is
normally cold sticky rice served with raw fish.Pizza is a common fast food category in the United
States, with chains such as Dnomsi' Pza, Sbaro and zaPi Hut. Menus are more limited and standardized than in traditional
pizzerias, and pizadelvry, often with a time commitment, is offered.

Fish and chip shops are a form of fast food popular in the United Kingdom, Australia and New Zalnd. Fish
is battered and then deep fried.The cDuht have their own types of fast food. A Dutch fast food meal
often consists of a portion of French fries .

Business
In the United States alone, consumers spent about US$110 billion on fast food in 2000 (which
increased from US$6 billion in 1970). The oNantil easRurnt Asaoctin forecasted that fast food restaurants in the U.S.
would reach US$142 billion in sales in 2006, a 5% increase over 2005. In comparison, the fullservice restaurant segment of the food industry is expected to generate $173 billion in sales.

Jobs and labor issues

Today, more than 10 million workers are employed in the areas of food preparation and food
servicing including fast food in the world.
Employees are the backbone of the fast food industry. Proper training is crucial to the orderly
and quick service customers expect. Yet, eompylntuvr can be as high as 200% per year. With such a turnover,
owner-operators of franchise and non-franchise restaurants have the daunting task of constantly
training an entirely new workforce. Policies and procedures need to be explained to each new
employee.

Globalization
In 2009 the global fast food market grew by 4.8% and reached a value of 102.4 billion and a
volume of 80.3 billion transactions. In India alone the fast food industry is growing by 40% a
year. McDonald's is located in 120 countries and on 6 continents and operates over 31,000
restaurants worldwide.
KFC is located in 85 countries. Subway has 29,186 restaurants located in 86 countries, Pizza Hut is located in
26 countries, TacoBel has 278 restaurants located in 12 countries besides the United States.

Health issue
Trans fats which are commonly found in fast food have been shown in many tests to have a
negative health effect on the body.

The fast food consumption has been shown to increase calorie intake, promote weight an, and elevate risk
for diabetes. The eCnrstfoDia lndevPrto ranked obesity as the number one health threat for Americans in 2009. It is the
second leading cause of preventable death in the United States and results in 400,000 deaths each
year.

FAST FOOD INDUSTRY IN INDIA

INDIA EMERGING MARKET FOR GLOBAL PLAYERS
The percentage share held by foodservice of total consumer expenditure on food has increased
from a very low base to stand at 2.6% in 2001. Eating at home remains very much ingrained in
Indian culture and changes in eating habits are very slow moving with barriers to eating out
entrenched in certain sectors of Indian society.. 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 have had an impact on eating out trends.
FACTS AND FIGURES
Fast food is one of the worlds largest growing food type. Indias fast food industry is growing by
40% a year and is expected to generate a billion dollars in sales by 2010.The multinational
segment of Indian fast food industry is up to Rs. 6 billion, a figure expected to zoom to Rs.1OO
billion by 2010 By 2005, the value of Indian dairy products is expected to be Rs.1, 00,000
million. In last 6 years, foreign investment in this sector stood at Rs. 3600 million which is about
one-fourth of total investment made in this sector. Because of the availability of raw material for
fast food, Global chains are flooding into the country.
MARKET SIZE & MAJOR PLAYERS

a)
b)
c)
d)
e)

Dominated by McDonalds having as many as 150 outlets.

Dominos pizza is present in around 100 locations.
Pizza hut is also catching up and it has planned to establish 125 outlets at the end of
Subways have established around 40 outlets.
Nirulas is established at Delhi and Noida only. However, it claims to cater 50,000
guests every day.

Major players in fast food are:

MCDONALDS

KFC
PIZZA HUT
DOMINOS PIZZA.
COFFEE DAY
BARISTA.

The main reason behind the success of the multinational chains is their expertise in product
development, sourcing practices, quality standards, service levels and standardized operating
procedures in their restaurants, a strength that they have developed over years of experience
around the world. The home grown chains have in the past few years of competition with the
MNCs, learnt a few things but there is still a lot of scope for improvement.

REASON FOR EMERGENCE

Gender Roles: gender roles are now changing. Females have started working outside. So, they
have no time for their home and cooking food. Fast food is an easy way out because these can be
prepared easily.
Customer Sophistication and Confidence: consumers are becoming more sophisticated now.
They do not want to prepare food and spend their time and energy in house hold works. They are
building their confidence more on ready to eat and easy to serve kind of foods
Paucity of Time: people have no time for cooking. Because of emergence of working women
and also number of other entertainment items. Most of the time either people work or want to
enjoy with their family.
Double Income Group: emergence of double income group leads to increase in disposable
income. Now people have more disposable income so they can spend easily in fast food and
other activities.
Working Women: working women have no time for cooking, and if they have then also they
dont want to cook. Because they want to come out of the traditionally defined gender roles.
They do not want to confine themselves to household work and upbringing of childrens.
Large population: India being a second largest country in terms of population possesses large
potential market for all the products/services. This results into entry of large number of fast food
players in the country.

Relaxation in rules and regulations: with the economic liberalization of 1991, most of the tariff
and non tariff barriers from the Indian boundaries are either removed or minimized. This helped
significantly the MNCs to enter in the country.
Menu diversification: increase in consumption of pizzas, burgers and other type of fast foods.

CHALLENGES FOR THE INDUSTRY

Social and cultural implications of Indians switching to western breakfast food: Generally,
Hindus avoid all foods that are believed to inhibit physical and spiritual development. Eating
meat is not explicitly prohibited, but many Hindus are vegetarian because they adhere to the
concept of ahimsa. Those seeking spiritual unity may avoid garlic and onions. The concept of
purity influences Hindu food practices. Products from cows (e.g., milk, yogurt, ghee-clarified
butter) are considered pure. Pure foods can improve the purity of impure foods when they are
prepared together. Some foods, such as beef or alcohol, are innately polluted and can never be
made pure. But now, Indians are switching to fast food that contain all those things that are
considered impure or against there beliefs. Some traditional and fundamentalist are against this
transformation of food habit and number of times they provoke their counterparts to revolt
against such foods. And that is what happened when McDonalds decided to enter the complexity
of Indian business landscape, counting only on its fast food global formula, without any
apparent previous cultural training.
Emphasis on the usage of bio-degradable products: Glasses, silverware, plates and cloth
napkins are never provided with fast food. Instead, paper plates and napkins, polyurethane
containers, plastic cups and tableware, drinking cartons or PET (polyethylene terephthalate)
bottles are used, and these are all disposable. Many of these items are tossed in the garbage
instead of being recycled, or even worse, merely thrown on the ground. This burdens nature
unnecessarily and squanders raw materials. In order to reduce soil and water pollution,
government now emphasis more on the usage of bio-degradable products.
Retrenchment of employees: Most of new industries will be capital intensive and may drive
local competitors, which have more workers, out of business.
Profit repatriation: Repatriation of profits is another area of concern for Indian economy. As
when multinational enters the any countries, people and government hope that it will increase the
employment rate and result in economic growth. However, with the multinational operation, host

country experiences these benefits for a short time period. In long run neither employment
increases (because of capital intensive nature of MNCs) nor it increases the GDP or GNP
because whatever MNCs earn they repatriate that profit back to their home country.

PROBLEMS OF INDUSTRY
Environmental friendly products cost high: government is legislating laws in order to keep
check on the fast food industry and it is emphasizing more on the usage of bio-degradable and
environment friendly products. But associated with this issue is the problem that fast food player
faces - the cost associated with the environment friendly product. They cost much higher than the
normal products that companies uses for packaging or wrapping their products.
Balance between societal expectation and companies economic objectives: To balance a societys
expectation regarding environment with the economic burden of protecting the environment. Thus,

one can see that one side pushes for higher standards and other side tries to beat the standard
back, thereby making it a arm wrestling and mind boggling exercise.
Health related issues: obesity:

I.

Studies have shown that a typical fast food has very high density and food with high

II.

density causes people to eat more then they usually need. \

Low calories food: Emphasis is now more on low calorie food. In this line McDonald has
a plan to introduce all white meat chicken Mcnuugget with less fat and fewer calories.

TRENDS IN INDIAN MARKET

Marketing to children's: fast food outlets in India target childrens as their major customers.
They introduce varieties of things that will attract the childrens attention and by targeting
childrens they automatically target their parents because Childrens are always accompanied by
their parents.
Low level customer commitment: Because of the large number of food retail outlets and also
because of the tendency of customer to switch from one product to other, this industry faces low
level customer commitment.
Value added technology services: There is continuous improvement in the technology as far as
fast food market in India is considered. The reason behind that is food is a perishable item and in

order to ensure that it remain fresh for a longer period of time. Earlier, Indian people prefer
eating at home but now with the change in trend there is also need for improvement and up
gradation of technology in food sector.
Attracting different segments of the market: Fast food outlets are introducing varieties of
products in order to cater the demands of each and every segment of the market. They are
introducing all categories of product so that people of all age, sex, class, income group etc can
come and become a customer of their food line.
The success of fast foods arose from the changes in our living conditions:
1.
2.
3.
4.
5.

Many women or both parents now work

There are increased numbers of single-parent households
Long distances to school and work are common
Usually, lunch times are short
There's often not enough time or opportunity to shop carefully for groceries, or to
cook and eat with one's family. Especially on weekdays, fast food outside the home is
the only solution.

Kentucky Fried Chicken (KFC)

About the Company
KFC Corporation, or KFC, founded and also known as Kentucky Fried Chicken, is a chain of
fast od easrunt based in osuLevi,l nKckyt. KFC is a brand and operating segment, called a "concept" of umY! aBndsr since 1997 when that
company was spun off from epsPiCo as Tricon Global Restaurants Inc. The restaurants are known as
Poulet Frit Kentucky or PFK in the province of Quebc in Cand. In France, however, the chain is known as
KFC.
KFC primarily sells chiken in form of pieces, awpsr, sald and sandwiche. While its primary focus is friedchkn, KFC also offers a line
of roasted chicken products, dsei h and desrt. Outside hNort Ameica, KFC offers beef based products such as hamburges or kebabs,
pork based products such as ribs and other regional fare.
The company was founded as Kentucky Fried Chicken by Colne Hard Snse in 1952, though the idea of KFC's
fried chicken actually goes back to 1930. The company adopted the abbreviated form of its name
in 1991. Starting in April 2007, the company began using its original name, Kentucky Fried
Chicken, for its signage, packaging and advertisements in the United eStas as part of a new corporate re-

branding program newer and remodeled restaurants will have the new logo and name while older
stores will continue to use the 1980s signage. Additionally, Yum! Continues to use the
abbreviated name freely in its advertising.
Products
The famous paper bucket that KFC uses for its larger sized orders of chicken and has come to
signify the company was originally created by Wensdy' restaurants founder Dave Thomas. Thomas was originally a
franchisee of the original Kentucky Fried Chicken and operated several outlets in the Columbs, Ohi area. His
reasoning behind using the paper packaging was that it helped keep the chicken crispy by wickng away
excess moisture. Thomas was also responsible for the creation of the famous rotating bucket sign
that came to be used at most KFC locations in the US.
Menu items
KFC's specialty is fried chicken served in various forms. KFC's primary product is pressure-fried
pieces of chicken made with 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.
Kentucky Grilled Chicken - This marinated grilled chicken is targeted towards health-conscious
customers. It features marinated breasts, thighs, drumsticks, and wings that are coated with the
Original Recipe seasonings before being grilled. It has less fat, calories, and sodium than the
Original Recipe fried chicken. Introduced in April 2009.
Discontinued products
The Colonel's Rotisserie Gold This product was introduced in the 1990s as a response to the Bostn Maerk
chain's roasted chicken products, and a healthier mindset of the general public avoiding fried
food. Purportedly made from a "lost" Col. Sanders recipe, it was sold as a whole roaster or a half
bird.28[]
Tender Roast Chicken This product was an off-shoot of 'The Colonel's Rotisserie Gold'. Instead
of whole and half birds, customers were given quarter roasted chicken pieces. For a time,
customers could request chicken "original", "Extra Tasty Crispy", or "Tender Roast".
Smokey Chipotle Introduced in April 2008. The chicken was dipped in chipotle sauce then
doubled breaded and fried. It has been discontinued since August 2008.

Nutritional value
KFC formerly used partially hydrogenated oil in its fried foods. This oil contains relatively high
levels of anstr f, which increases the risk of heartsdi. The CentrofSci hetPublInrs (CSPI) filed a court case against KFC, with the aim
of making it use other types of oils or make sure customers know about Trans fat content
immediately before they buy food.
In October 2006, KFC announced that it would begin frying its chicken in trans fat-free oil. This
would also apply to their potato wedges and other fried foods, however, the biscuits.

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.

KFCnBuseirSatgy
KFC fast-food chains are currently under the restaurant division of PepsiCo Incorporated. Some
major threats include the changing attitudes of society toward healthier eating habits, KFC has
more than 11000 outlets located in 80 countries. In marketing, KFC restaurants are not restricted
from locating within close proximity of other KFC restaurants. There are two alternative
strategies for KFC. The first strategy involves keeping PepsiCo beverage division and snack
foods division together, and a divestiture of PepsiCo restaurant division; selling Taco Bell, Pizza
Hut, and KFC.

Present Situation
The organization is currently structured with two divisions under PepsiCo. David Novak is
president of KFC. John Hill is Chief Financial Officer and Colin Moore is the head of Marketing.
Peter Waller is head of franchising while Olden Lee is head of Human Resources. KFC is part of
the two PepsiCo divisions, which are PepsiCo Worldwide Restaurants and PepsiCo Restaurants
International. Both of these divisions of PepsiCo are based in Dallas.

Strengths
Strengths can be found internally in a company and can be used to the companys advantage. The
strengths identified are as follows:
1. KFC's secret recipe.
The secret recipe has long been a source of advertising, and allowed KFC to set itself apart. Also,
KFC was the first chain to enter the fast-food industry, just before McDonald's, which opened its
first store a year later, and the "secret recipe" was the initial home replacement strategy.
2. Name recognition and reputation.
KFC's early entrance into the fast-food industry in 1954 allowed KFC to develop strong brand
name recognition and a strong foothold in the industry. The Colonel is KFC's original owner and
a very recognizable figure, both in the U.S. and internationally, in their new logo. In fact, in the
fourth annual Logo Value Survey, done by The Schechter Group, the KFC logo was the only one
which significantly enhance the brand's image .
3. PepsiCo's success with the management of fast food chains. PepsiCo acquired Pizza Hut in
1977, and Taco Bell in 1978. PepsiCo used many of the same promotional strategies that it has
used to market soft drinks and snack food. By the time PepsiCo bought KFC in 1986, the
company already dominated two of the four largest and fastest-growing segments of the fast food
industry.
4. Traditional employee loyalty.

"KFC's culture was built largely on Colonel Sanders' laid back approach to management"
(Wright, p.433). Before the acquisition of KFC by PepsiCo, employees at KFC enjoyed good
benefits, a pension, and could receive help with other non-income needs. This kind of "personal"
human resources management makes for a loyal workforce.
5. Improving operating efficiencies by reducing overhead and other operating costs can
directly affect operating profit.
Due to the strong competition in the US, the fast-food chains are reluctant to raise prices to
increase profit. Many of the chains are turning to operating efficiencies to increase profit. For
many companies, operating efficiencies are achieved through improvements in customer service,
cleaner restaurants, faster and friendlier service, and continued high-quality products.

Weaknesses
Weaknesses are also found internally like strengths. Weaknesses, however, can limit a companys
potential. The weaknesses for KFC are identified as follows:
1. The many sales of KFC lead to a confusing corporate direction.
Between 1971 and 1986, KFC was sold three times. The first two sales, to Heublein, Inc and to
R.J. Reynolds, left the company largely autonomous. It wasn't until the sale to PepsiCo in 1986
that changes in top management started to take place. These changes happened almost
immediately after the sale.
2. KFC has a long time to market with new products.
Because of the nature of the chicken segment of the fast food industry, innovation was never a
primary strategy for KFC. However, during the late 1980's, other fast food chains, such as
McDonald's, began to offer chicken as a
Menu option. During this time, McDonald's had already introduced the McChicken while KFC
was still testing its own chicken sandwich. This delay significantly increased the cost of
developing consumer awareness for the KFC sandwich.

3. Conflicting cultures of KFC and Pepsi Co.

While KFC's culture was largely based on the Colonel's laid back approach to management,
while PepsiCo's culture is more of a "fast track" attitude. Employees do not have the same level
of job security that they enjoyed before the PepsiCo acquisition

Problems
Through an analysis of the strengths, weaknesses, opportunities, and threats of KFC, the
following potential problem areas were identified:
1. No defined target market.
The advertising campaign of KFC does not specifically appeal to any segment. It does not appear
to have a consistent long-term approach. The U.S. has enormous changes in its demographics.
Single-person households have increased from 12% in 1970 to 25% in 1995. With this kind of
dramatic change, KFC does not have a proper approach to its target market.
2. Health Conscious Consumers.
There has been a trend toward an increasingly healthy diet in America. This put KFC at an
extreme disadvantage due to its fried product offering.
3. Increased Start Up Costs.

Prime locations have increased in cost due to limited room for expansion. New technology has
increased efficiencies, but resulted in greater increased start up costs. Restaurant and equipment
packages range from $500,000 to $1,000,000.
Achievements:
KFC is one of the most renowned world gastronomic brand names. Kentucky Fried Chicken
products are currently offered in 80 countries worldwide and in more than 11,000 restaurants
which are visited on a daily basis by almost 8 million customers. Globally, KFC employs
approximately 290,000 people, Worldwide, a new KFC restaurant is opened almost every day.
In 2004 the KFC Excellent range - three types of salad (Caesar, Garden and Mandarin)
obtained the prize for Worldwide Best Practice Award 2004 in the category of best product and
best marketing campaign and its implementation in the restaurants. This prize is distributed each
year by YUM Restaurants International. According to the ratings for Most expensive world
brands 2004 conducted by the American weekly Business Week, KFC was positioned 54th
place; currently valued at 5.1 billion USD

COMPANY PROFILE
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.
Every day, nearly eight million customers are served around the world. KFC's menu includes
Original Recipe chicken -- made with the same great taste Colonel Harland Sanders created
more than a half-century ago. Customers around the globe also enjoy more than 300 other
products -- from a Chunky Chicken Pot Pie in the United States to a salmon sandwich in Japan.
KFC has more than 11,000 restaurants in more than 80 countries and territories around the world.
And in quite a few U.S. cities, KFC is teaming up with sister restaurants, A&W, All-American
Food, Long John Silver's, Taco Bell and Pizza Hut, selling products from the popular chains in
one convenient location.
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 territories.

KFC HISTORY-AT-A-GLANCE
9/9/1890
Harland Sanders is born just outside Henryville, Indiana.
1900-1924
Harland Sanders holds a variety of jobs including: farm hand, streetcar conductor, army private
in Cuba, blacksmith's helper, rail yard fireman, insurance salesman, tire salesman and service
station operator for Standard Oil.
1930
In the midst of the depression, Harland Sanders opens his first restaurant in the small front room
of a gas station in Corbin, Kentucky. Sanders serves as station operator, chief cook and cashier
and names the dining area "Sanders Court & Caf."
1936
Kentucky Governor Ruby Laffoon makes Harland Sanders an honorary Kentucky Colonel in
recognition of his contributions to the state's cuisine.
1937
The Sanders Court & Caf adds a motel and expands the restaurant to 142 seats.
1939
The Sanders Court & Caf is first listed in Duncan Hines' "Adventures in Good Eating." Fire
destroys The Sanders Court & Caf, but it is rebuilt and reopened. The pressure cooker is
introduced. Soon thereafter Colonel Sanders begins using it to fry his chicken to give customers
fresh chicken,
faster.
1940
Birthdate of the Original Recipe
1949
Sanders marries Claudia Price.
1952
The Colonel begins actively franchising his chicken business by traveling from town to town and
cooking batches of chicken for restaurant owners and employees.
The Colonel awards Pete Harman of Salt Lake City with the first KFC franchise. A handshake
agreement stipulates a payment of a nickel to Sanders for each chicken sold.
1955
An interstate highway is built to bypass Corbin, Kentucky. Sanders sells the service station on
the same day that he receives his first social security check for $105. After paying debts owed, he
is virtually broke. He decides to go on the road to sell his Secret Recipe to restaurants.
1957

Kentucky Fried Chicken first sold in buckets

1960
The Colonel's hard work on the road begins to pay off and there are 190 KFC franchisees and
400 franchise units in the U.S. and Canada
1964
Kentucky Fried Chicken has more than 600 franchised outlets in the United States, Canada and
the first overseas outlet, in England.
Sanders sells his interest in the U.S. company for $2 million to a group of investors headed by
John Y. Brown Jr., future governor of Kentucky. The Colonel remains a public spokesman for the
company.
1965
Colonel Sanders receives the Horatio Alger Award from the American Schools and Colleges
Association.
1966
The Kentucky Fried Chicken Corporation goes public.
1969
The Kentucky Fried Chicken Corporation is listed on the New York Stock Exchange.
1971
More than 3,500 franchised and company-owned restaurants are in worldwide operation when
Heublein Inc. acquires KFC Corporation.
1976
An independent survey ranks the Colonel as the world's second most recognizable celebrity.
1977
Colonel Sanders speaks before a U.S. Congressional Committee on Aging.
1979
KFC cooks up 2.7 billion pieces of chicken. There are approximately 6,000 KFC restaurants
worldwide with sales of more than $2 billion.
12/16/1980
Colonel Harland Sanders, who came to symbolize quality in the food industry, dies after being
stricken with leukemia. Flags on all Kentucky state buildings fly at half-staff for four days.
1982
Kentucky Fried Chicken becomes a subsidiary of R.J. Reynolds Industries, Inc. (now RJR
Nabisco, Inc.) when Heublein, Inc. is acquired by Reynolds.
1986
PepsiCo, Inc. acquires KFC from RJR Nabisco, Inc.
1997

PepsiCo, Inc. announces the spin-off of its quick service restaurants - KFC, Taco Bell and Pizza
Hut - into Tricon Global Restaurants, Inc.
2002
Tricon Global Restaurants, Inc., the world's largest restaurant company, changes its corporate
name to YUM! Brands, Inc. In addition to KFC, the company owns A&W All-American
Food Restaurants, Long John Silvers, Pizza Hut and Taco Bell restaurants.
2006
More than a billion of the Colonel's "finger lickin' good" chicken dinners are served annually in
more
than
80
countries
and
territories
around
the
world.

OUR COMPANYS VISION , MISSION AND GOAL

OUR MISSION
To put a yum !!! On a billion of faces..
OUR VISION
To be the number one restaurant company in the subcontinent
OUR GOAL
Double our business over the next three years
GROWTH
Number one restaurant company profitable in 2010
Foundation 420 stores by 2010
Accelerate 1000 stores by 2015
2009 KEY PRIORITES
Build awareness
Delight customers
Broaden menu
Drive value
PROFITABILITY
Urgently drive margins
Profitable sales
Drive effeciences
Cost savings

DEVELOPMENT
Brand building assets
Build stores
CAPABILITY
Career development
Skill development
Grow with right partners
OUR PASSION
Put a YUM!! On peoples faces around the world that special eating experience that makes
you smile and creates life- long customers.
OUR FOUNDING TRUTHS
PEOPLES CAPABILITY FIRST
Satisfied customers and profitability follow
RESPOND TO THE VOICE OF THE CUSTOMER
Not just listen
THE RGM IS OUR NUMBER 1 LEADER
Not senior management
RUN EACH RESTAURANT LIKE ITS OUR ONLY ONE
Avoid the trap of averages
RECOGNITION SHOWS YOU CARE
People leave when you dont
GREAT OPERATIONS AND MARKETING INNOVATION DRIVE SALES.
No finger pointing
OPERATION DISCIPLINE THROUGH PROCESS AND STANDARDS
Consistency- not program of the month
FRANCHISES ARE VITAL ASSETS
Operate as one system not two.

KFC IN INDIA
Foreign fast food companies were allowed to enter India during the early 1990s, thanks to the
economic liberalization policy of the Government of India .One of the first fast food
multinationals to set foot in India was Kentucky Fried Chicken (KFC), owned by PepsiCo. KFC
received permission to open 30 new outlets across the country. It chose Bangalore as its launch
pad because the city had a substantial upper middle class population, with a trend of families
eating out. Also, it was considered Indias fast growing metropolis in the 1990.The Bangalore
outlet was opened in June 1995. Apart from Bangalore, PepsiCo planned to open 60 KFC outlets
in the country over the next seven years. However, KFC became embroiled in various
controversies even before it started full-fledged business in India.

KFC, INDIA MENU

Non Vegetarian

HOT AND CRISPY -

BONELESS CHICKEN

BUCKET

BUCKET
variety bucket

GAME BOX

GAME BOX
TOASTED TWISTER

ZINGER BURGER

VEG OPTIONS

VEGGIE FEAST
THALI

KRUSHERS

VEG

DESERTS

SOFT TWIRL

SUNDAES

BROWNIE SUNDAY

KFC is the worlds 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 its 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 Sanders 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 .

MARKETING STRATEGY
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 gives a recognizable face .At KFC this is represented by its familiar logoColonel 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 then its competitors. In this way a company creates loyal customers.
The stating 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.
Having identified its key audiences a company has to ensure a marketing mix that created that
appeals specifically to those people. The marketing mix is a term used to describe the four main

marketing tools(4P's):
1.Product
2.Price
3.Place
4.Promotion
Using that detailed information about its customers. KFC's marketing department can determine:
1. What products are well received?
2. What prices consumer willing to pay?
3. What T.V. Programs, newspapers and advertising consumer read or view?
4. What restaurants are visited?
Market research is the format which enables KFC to identify this key information. Accurate
research is essential in creating the right mix to win customers loyalty.
In all its market KFC faces competition from other businesses. Additionally economic, legal and
technological changes, social factors retail environment and many other elements affect KFC
success in the market.
Market research identifies these factors and anticipates how they will affect peoples willingness
to buy. As the economy and social attitudes change, so do buying patterns. KFC needs to identify
whether the number of target customers is growing or shrinking and whether their buying habits
will change in the future.
Market research considers everything that affect buying decisions. These buying decisions can
often be affected by wider factors than just the products itself. Psychological factors are
important, e.g. what image does the product give or how the consumer feels when purchasing it .
MEETING THE NEEDS OF KEY AUDIENCE
There are a limited number of customers in the market. To build long-term business it is essential
to retain people once they have become customers. For example a parent with two children might
visit and visits KFC to give the children a treat. Children want to visits as it is fun place to eat. A
business customer visits KFC during the work day as service is quick the food taste is great and
can be eaten in the car without affecting a busy work schedule. These examples represent just a
few of KFC's possible customers profile. Each has different reasons to come KFC.
Using this type of information KFC can tailor communication to the needs of specific groups. It
is to the needs of specific group. It is their needs that determine the type of products and services

offered, prices charged, promotions

Created and where restaurants are located. To meet the needs of the key market it is important to
analyses the internal marketing strengths the organization.
Strengths and weaknesses must be identified, so that a marketing strategy which is right for the
business can be decided upon.
The analysis will include the:
1. Companys products and how appropriate they are for the future
2. Quality of employees and how well trained they are to these additional psychological factors
are significantly offer the best service to important to the customer. They can be even more
customers important than the products physical benefits.
3. Systems and how well they function in providing customer satisfaction e.g. marketing
databases and restaurant systems.
4. Financial resources available for marketing.

The business can then determine what it needs to do in identify different types
of customers. For example:
A parent with two children might visit Visits KFC to give the children treat.
A children wants to visit KFC As it is a fun place to eat
A business customer

Visits KFC during the work day as service is quick,the food taste is great can be eaten in the car
without

affecting

busy

work

schedule.

Teenager visits KFC The Rupee saver menu is affordable and there is Internet access in some
restaurant. These examples represent just a few of KFC possible customer profiles each has
different reasons to come KFC. Using this type of information KFC can tailor communication to
the needs of specific groups. It is their needs that determine the type of products and services

offered, prices charged, promotions created and where restaurants are located. To meet the needs
of the key market it is important to analyze the internal marketing strengths and weaknesses must
be identified, so that a marketing strategy which is right for the business can be decided upon.
The analysis will include the:
Companys products and how appropriate they are for the future
Quality of employees and how well trained they are to these additional psychological factors
are significantly offer the best service to important to the customer. They can be even more
customers important than the products physical benefits.
Systems and how well they function in providing customer satisfaction example marketing
database
Financial resources available for marketing
Once the strengths and weaknesses are determined, they are combined with the opportunities and
threats in the market place. This is known as SWOT analysis (Strengths, Weaknesses,
Opportunities, and Threats). The business can then determine what it needs to do in order to
increase its chances of marketing successfully.
SWOT ANALYSIS
STRENGTHS(INTERNAL)
The brand detailed market research to create the right marketing mix.

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 recognised
in other markets outside India, where the company is among the leading fast food giants.
The brand is recognised 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 for its convenience and menu
variety. It generates $1B revenue each year.

WEAKNESSES (INTERNAL)
KFC has been for around long time therefore they have to keep innovating.

KFC was losing market share as other Chicken chain increased sales at a faster
rate.

KFC share of Chicken Segment sales fell from 71 percent 1999 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, people taste and preferences and their likes and dislikes. This may
prove fatal for the company.

OPPORTUNITIES

Growth of 18-24 age demographic

Should start with breakfast menu

More drive through stores.

Strong home delivery medium.

Build up a customer base

Increase in U.S. median income

International beef scare from mad-cow

Home Meal Replacement Market will
exceed an estimated $577 billion by
2020

Targeting to growing ethnic markets

Asian American and Hispanic

New Leadership
Domestic markets
Updating restaurants
Balanced menu
Customer focus
Increase delivery service

THREATS

Increasing number of retail chains

Rated 83 out of 100 in terms of competitiveness

Increasing wage rates directly affect menu prices

85% annual employee turnover for fast food market

Health Trend away from fried foods

Changing customer demands

What is Marketing?
Marketing as a Managerial Function
Marketing as a managerial activity involves analyzing the market opportunities, planning the
marketing activities, implementing marketing plans and setting control mechanisms in such a

way that organizational objectives are accomplished at the minimum cost.

In other words, marketing is:
a) Understanding consumer needs
b) Environment scanning and market opportunity analysis
c) Development of a competitive marketing plan and strategy that an organization is able to
satisfy not only the consumers needs but also achieve its own objectives
d) Implementation of the marketing plan and development of tactical plans to overcome
problems at the market place
e) Development of control mechanisms
This perspective implies that in order to achieve competitive advantage, a firm needs to scan its
external environment to spot market opportunities. Its marketing mix needs to fit the local
market dynamics. Further, in order to ensure a high rate of customer acquisition and retention,
firms marketing mix has to be customer centric. Marketing management, therefore, is a critical
function especially in highly competitive markets. It can provide the much needed competitive
advantage to an enterprise, irrespective of its size and product marketing.
MARKETING TOOLS
The marketers task is to build a marketing program or plan to achieve the companys desired
objectives. The marketing program consists of numerous decisions on the mix of marketing tools
to use. The marketing mix is the set of marketing tools the firm uses to pursue its marketing
objectives in the target market. These tools are classified into four broad groups that are called
the four Ps of marketing: product, price, place, and promotion.
The particular marketing variables under each P are shown in the figure. marketing-mix
decisions must be made for influencing the trade channels as well as the final consumers. The
following figure shows the company preparing an offering mix of products, services, and prices,
and utilizing a promotion mix of sales promotion, advertising, sales force, public relations, direct
mail, telemarketing, and Internet to reach the trade channels and the target customers.

4P'S OF MARKETING

At this point the marketing mix is put together:

1. 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. It is important thing to remember when offering menu items to customers is that they
have a choice, they have a huge number of ways of spending their money and places to spend it.
Therefore, KFC's places considerable emphasis on developing a menu which customers want.
Market research establishes exactly what this is.

However customers requirements change over time. What is fashionable and attractive today
may be discarded tomorrow. Marketing continuously monitors customers preferences. In order
to meet these changes KFC has introduced and phased out old ones. And will continue to do so.
Care is taken not to adversely affect the sale of one choice by introducing another choice which
will cannibalize the sale from the existing one ( trade off).KFC knows that items on its menu
will vary in popularity. Their ability to generate profits will vary at different points in their life
cycle. Products go through a life cycle which is illustrated below: The type of marketing taken

and amount invested will be different, depending upon the stage product is reached. For example
launching a new product involves automatically television and other advertising support. At any
time company will have a portfolio of products each is in different stage of its life cycle. Some of
KFC's option growing tremendously but some Halal products is in its maturity stage.
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.
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.

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

2. 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. The customers perception of value is an important determinant of
the price charged. Customers draw their own mental picture of what a product is worth. A
product is more than a physical item, it also has psychological connotations for the customer.

The danger of using low price as a marketing tool is that the customer may feel that quality is
being compromised. It is important when deciding on price to be fully aware of the brands and
integrity. A further consequence of price reduction is that competitors match prices resulting in
no extra demand . This means the profit margin has been reduced without increasing sales.
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.
Economic Factor
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.

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.
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 burgers, French
fries and soft beverages with relation to its competitors.

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.

The firm can change its price, sales force size, and advertising expenditures in the short run. It
can develop new products and modify its distribution channels only in the long run. Thus the
firm typically makes fewer period-to-period marketing-mix changes in the short run than the
number of marketing-mix decision variables might suggest.
Note that the four Ps represent the sellers view of the marketing tools available for influencing
buyers. From a buyers point of view, each marketing tool is designed to deliver a customer
benefit. Also the sellers four Ps correspond to the customers four Cs.

Four

Ps Four Cs

Product Customer solution

Price Customer cost

Place Convenience

Promotion Communication
Promotion means communicating with Individuals, groups, or organizations to directly or
indirectly facilitate exchanges by informing and persuading one or more audiences to accept an
organizations

products.

A variety of organizations spend considerable resources on promotion. Marketers indirectly

facilitate exchanges by focusing information about company activities and products on interest
groups (such as environmental and consumer groups), current and potential investors, regulatory
agencies, and society in general. Some marketers use cause-related marketing, which links
purchase of their products to philanthropic efforts for a particular cause favored by their target
market. Marketers also sponsor special events, often leading to news coverage and positive
promotion

of

an

organization

and

its

brands.

From this wider perspective, promotion plays a comprehensive communication role. Some
promotional activities help a company justify its existence and maintain positive healthy
relationships between itself and various groups. Although companies can direct a single type of
communicationsuch as an advertisementtoward numerous audiences, marketers often design
a communication precisely for a specific target market. A firm frequently communicates several
different messages concurrently, each to a different group.
For maximum benefit from promotional efforts, marketers strive to properly plan, implement,
coordinate, and control communications. Effectively promotional activities are based on
information about customers and the marketing environment, often obtained from an
organizations marketing information system. How successfully marketers use promotions to
maintain positive relationships demand largely on the quantity and quality of information an

organization receives. Because promotions basic role is communication, we should analyze what
communication is and how the communication process work

PROMOTION AND THE COMMUNICATION PROCESS

Communication can be viewed as the transmission of information. For communication to take
place, both the sender and receiver of information must share some common ground. They must
share a common understanding of the symbols, words, and pictures used to transmit information.
Thus communication is defined as a sharing of meaning. Implicit in this definition is the notion
of transmission of information because sharing necessitates transmission. As the figure below
shows, communication begins with a source. A source is a person, group, or organization with a
meaning it intends and attempts to share with an audience. A source could be a salesperson
wishing to communicate a sales message or an organization wanting to send a message to
thousands of customers through an advertisement. A receiver is the individual, group, or
organization that decodes a coded message, and an audience is two or more receivers.
To transmit meaning, a source must convert the meaning into a series of signs representing ideas
or concepts. This is called the coding process, or encoding. When coding meaning into a
message, a source must consider certain characteristics of the receiver or audience. To share
meaning, the source should use signs that are familiar to the receiver or audience. Marketers who
understand this realize how important it is to know their target market and to make sure that an
advertisement, for example, uses a language that the target market understands.
To share a coded meaning with the receiver or audience, a source selects and uses a medium of
transmission. A medium of transmission carries the coded message from the source to the
receiver or audience. When a source chooses an inappropriate medium of transmission, several
problems may arise. A coded message may reach some receivers, but not the right ones. Coded
messages may also reach intended receivers in incomplete form because the intensity of the
transmission is weak.
In decoding process, signs are covered into concepts and ideas. Seldom does a receiver decode
exactly the same meaning that a source coded. When the result of decoding is different from

what was coded, noise exists. Noise is anything that reduces the clarity and accuracy of the
communication; it has many sources and may affect any or all parts of the communication
process. Noise sometimes arises within the medium of transmission itself. Noise also occurs
when a source uses signs that are unfamiliar to the receiver or that have a different meaning from
the one intended. Noise also may originate in the receiver. A receiver may be unaware of a coded
message when perceptual processes block it out.
The receivers response to a message is feedback to the source. The source usually expects and
normally receives feedback, although perhaps not immediately. During feedback, the receiver or
audience is the source of a message directed toward the original source, which then becomes a
receiver. Feedback is coded, sent through a medium of transmission, and decoded by the
receiver, the source of the original communication. Thus communication is a circular process.
During face-to-face communication, such as a personal selling situation or product sampling,
verbal and nonverbal feedback can be immediate. Instant feedback lets communicators adjust
messages quickly to improve the effectiveness of their communication. For example, when a
salesperson realizes through the feedback that a consumer does not understand a sales
presentation, the salesperson adapts the presentation to make it more meaningful to the customer.
When mass communication such as advertising is used, feedback is often slow and difficult to
recognize. Advertisers obtain feedback in the form of changes in sales volume or in consumers
attitudes and awareness levels.

FLOW CHART OF HOW TO GO ABOUT

DECIDING & EVALUATING PROMOTIONAL MIX
Research Stage
Strategic Stage
Product Life-Cycle Stage
Promotional tools vary in cost effectiveness at different stages of the product life cycle

- In the Introduction/Infancy stage, advertising and publicity have the highest cost
effectiveness, followed by personal selling to gain distribution coverage and sales
promotion to induce trial.
- In the Growth stage, all the tools can be toned down because demand has its own
momentum through word of mouth.
- In the Maturity stage, sales promotion, advertising and personal selling all grow more
important in that order.
- In the Decline stage, sales promotion continues strong, advertising and publicity are
reduced and sales people give the product only minimal attention.
As we can see, Sales Promotion in specific is very important over the various stages of
the Product Life Cycle.
Promotional objectives differ considerably from one organization to another and within
organizations over time. Large organizations with multiple promotional programs operating
simultaneously may have quite varied promotional objectives. Lets have detailed look at some
of the promotional objectives:
Create awareness
A considerable amount of promotion is directed at creating awareness. For an organization
introducing a new product, new brand, or brand extension, making customers aware is crucial to
initiating the product adoption process. A marketer that has invested heavily in product
development strives to create product awareness quickly in order to generate revenues to offset
the

high

costs

of

product

development

and

introduction.

Stimulate Demand
When an organization is the first to introduce an innovative product, it tries to stimulate primary
demanddemand for a product category rather than for a specific brand of productthrough
pioneer promotion. Pioneer promotion informs potential customers about the product: what it is,
what it does, how it can be used, and where it can be purchased. Because pioneer promotion is
used in the introductory stage of the product life cycle, which means that there no competing
brands, it neither emphasizes brand names nor compares brand. Primary demand stimulation is
not just for new products. At times an industry trade association, rather than a single firm, uses
promotional efforts to stimulate primary demand.

To build selective demand, which is demand for a specific brand, a marketer employs
promotional efforts on the strengths and benefits of a specific brand. Building selective demand
requires promotional efforts that single out attributes important to potential buyers and the
specific attributes of the brand. Promotional techniques are sometimes used to stimulate selective
demand by differentiating the product from competing brand in the minds of potential buyers.
Stimulating selective demand by increasing the number of product uses is sometimes
accomplishes through advertising campaigns, as well as through free samples, coupons, and
consumer contests and sweepstakes. Promotion for large package sizes or multiple-product
packages are directed at increasing consumption, which in turn can stimulate demand.

Encourage Product Trial

When attempting to move customers through the product adoption process, marketer may be
successful at creating awareness and interest, but then a significant proportion of customers stall
during the evaluation stage. Thus certain types of promotion, such as free samples, coupons, test
drive or limited free-use offers, contests, and games, are employed to encourage product trial.

Identify Prospects
Certain types of promotional efforts are directed at identifying customers who are interested in
the firms product and are most likely to buy. A marketer may utilize a magazine advertisement
with a direct response information form, requesting the reader to complete and mail the form to
receive additional information. Customers who fill out information blanks or call the
organization usually have higher interest in the product, which makes them possible sales
prospects.
Retain Loyal customers
Clearly, maintaining long-term customer relationships is a major goal of most marketers, because
such relationships are quite valuable. Promotional efforts directed at customer retention can help
an organization control its costs because the costs of retaining customers are usually considerably

lower than those of acquiring new ones. Frequent user programs, such as relied on by airlines,
hotels, aim at rewarding loyal customers and encouraging them to remain loyal.

Combat Competitive Promotional Efforts

At times a marketers objective in using promotion is to offset or lessen the effect of a
competitors promotional program. This type of promotional activity does not necessarily
increase the organizations sales or market share, but it may prevent a sales or market share loss.
A combative promotional objective is used most often by firms in extremely competitive
consumer products markets, such as fast-food industry.

For example, a local departmental store may mail out coupons, redeemable only on Tuesdays and
Wednesdays, to residents living within a two-mile radius of the store for the purchase of common
items such as milk, bread, or eggs. To offset the effects of these coupons, a competing store could
advertise in the newspaper that it will accept any stores coupons on any day of the week.

REDUCE SALES FLUCTUATIONS

Demand for many products varies from one month to another because of factors such as climate,
holidays, and seasons. A business, however, cant operate at peak efficiency when sales fluctuate
rapidly. When promotional techniques reduce fluctuations, a manager can use the firms
resources more efficiently.
Promotional techniques are often designed to stimulate sale during sales slumps. For example,
advertisements promoting price reduction of lawn care equipment can increase sales during fall
and winter months. During peak season periods, a marketer may refrain from advertising to
prevent over-stimulating sales to the point that the firm cannot handle all the demand.
A pizza outlet might distribute coupons that are valid only Monday through Thursday because
Friday though Sunday the restaurant is extremely busy.
3. 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.
The promotions aspect of the marketing mix covers all marketing communications. The methods
include advertising, sometimes known as above the line activity. Advertisements conducted on
T.V., Radio, news paper, on website, etc.

What distinguishes advertising from other marketing communications is that media owners are
paid before the advertiser can take space in the medium. Other promotional methods include
sales promotions, telemarketing, exhibitions, seminars, loyalty schemes door drops,
demonstrations, etc. The skill in marketing communications is to develop a campaign which uses
several of these methods in a way that provides the most effective results.
For example, TV advertising makes people aware of a food item and press advertising provides
more detail. This may be supported by in store promotions to get people to try the product and a
collect able promotional device to encourage them to keep buying the item support each other
and do not confuse customers. A thorough understanding of what the brand represents is the key
to a consistent message the purpose of most marketing communications is to move the target
audience to some type of action. This may be to buy the product, visit a restaurant, and
recommend the choice to a friend or increase, purchase of the menu item. Key Objective of
advertisement is to make people aware of an item feel positive about it and remember it.
The more KFC knows about the people it is serving the more it is able to communicate messages
which appeal to them. Messages should gain customers attention and keep their interest. The
next stage is to get them to want what is offered. Showing the benefits which they will obtain by

taking action are usually sufficient, the right message must be targeted to the right audience.

For example, to reach a single professional woman with income above a certain level, it may be
better to take an advertisement in Cosmopolitan than Woman Era. To advertise to mothers with
children, it may be more effective to take advertising space in cinemas during Disney films.
The right media depends on who the viewers, readers or listeners are and how closely they
resemble the target audience.
TARGET MARKET
The process of evaluating each market segment its attractiveness and selecting two or more
segments. As the outlets of KFC are in posh area and prices are too high (overhead expensesrent, 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.
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 .KFC uses its attributes to
Position its Product(Fried Chicken)
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 ones mind. KFC and its new company jingle,
finger lickin good is a frequent announcement on televisions, billboards, flyers and radio
.employees wearing casual dresses shows a very casual n free kind of an enviornment, and teeshirts says that I m a student of lickonomics which means finger lickin good. The concept of
showing a normal customer deeply involved in devouring his piece of chicken usually turns on

the drool factory in everybodys 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.
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.
SALES PROMOTION

KFC uses the following tools to further enhance its sales.

Premiums

Exhibits

Coupons

Entertainment

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.
SALES PROMOTION
The various sales promotion technique essential are
Word of mouth publicity
We have understood that customers obtain lot of their information from personal or informal
sources. In the view of this , those who have already experienced the services have an important
role to play in the future promotion of the services. Customer satisfaction and word of mouth
publicity go hand in hand. One satisfied customer relates the good experience to three to four
acquaintances while an unsatisfied customer usually tells six to seven customers about it. Thus,
the goodwill is difficult to earn and relatively easy to lose.
4. Place
Place in the marketing mix, is not just about the physical location or distribution points for
products. It encompasses the management of range of processes involved in bringing products to
the end consumer.
In Delhi KFC has open its shop where middle and higher class family, teenagers will come and
enjoy the food.
TARGET AREAS
Free home Delivery strategy They provide free home delivery to offices & homes
(selected stores)
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.
1.TARGET MARKET
1. Location
Hectic lifestyle of individuals giving them more time at work and less stress about
waiting for food.

Commercialization of urban and sub-urban markets leading to more mid-sector people

that find high-end eating joints very to expensive.
Mid-sector people are always looking for change which KFC provides in their range of
fast food.
Quality conscious people in urban areas are more conscious about the quality of food
than rural areas.
Urban areas are more populated therefore they help with attracting higher revenues
2. Placement of outlets
Due to KFC placing itself close to schools, colleges, cinemas and markets which are mostly
populated by the young and those who are in a hurry, KFC enjoys a large number of footfalls
every day.
3 Channels
KFC believes in first level channels in the order given below:

Manufacturers

Retailers

Consumers

CHANNEL PROCESS
KFC works on the flow of good operation techniques i.e.Good Operating Manager leads to

Good Team Selection

Good Targets

Good Services

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

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 theyve 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
McDonalds, Pizza Hut, Domino's and Subway, and any new fast-food entrants would just be
presenting something very similar to whats 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 McDonalds, 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, KFCs 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. 150, whereas a full meal at Pizza Hut can cost over Rs. 300. The
drastic difference in price assures no price competition between these restaurants.

SPECIAL MARKETING MIX ELEMENTS FOR SERVICES

People element is important because almost all services are delivered through one human being
to another so the recruitment ,training of the employees are important. People need to be
continuously motivated to ensure continued performance.
Team work is very important as all sections in a restaurant need to coordinate with each other to
do a great sales
Recognition of people or employees doing good job is essential which is a vital part in our
restaurant.
Some other points under people are :

Recruitment- the recruitment of people are essential and crucial for they are the major
elements of personal contact.

Training- the potential employees need to be trained to carry out their duties ,also learn
about people skills emphasizing on customer centricity and sensitivity to customer
demands.

Motivation- the employees need to be continuously motivated to ensure continued

performance. This may be in the form of internal evaluation and awards or rewards to
encourage the employees.

OUR CULTURE HELPS US INCREASE F&B REVENUEOur culture includes:How we win together principles- (HWWT)2
Which includes

Believe in all people-we trust in positive intentions and believe everyone has the
potential to make a difference. We actively seek diversity in others to expand our
thinking and make the best decision. We coach and support every individual to grow
to their full capability.

We are customer maniacs- Customers rule. Every customer sees it, f eels it, and
knows it in every restaurant. We make sure we have great RGMs who build great
teams.100% champs with a yes attitude is the expectation.

Go for breakthrough- we begin by asking ourselves , what can I do now to get

breakthrough results in my piece of yum?!!! our intentionality drives step change
thinking. We imagine how big something can be and work future-back ,going full out
with positive energy and personal accountability to make it happen.

Build know how- we grow by being avid learners ,pursuing knowledge and best
practices inside and outside the company.we seek truth over harmony every step of
the way. We consistently drive outstanding execution by scaling our learnings into
process and tools around what matters most. Breakthroughs come when we get
people with knowledge thinking creatively.

Teamwork - We discuss the undiscussable , always promoting healthy debate and

healthy decisions. Our relationships allow us to ask the earth of each other. We make
specific verbal contracts to get big things done with urgency and excellance.

Recognize !! recognize !! recognize we attract and retain the best people and
inspire greatness by being world famous for recognition. We love celebrating the
achievement of others and have lots of fun doing it.

Physical evidence of a service has a very large role to play in the service scenario It
includes :

Signage - the signage provides crucial information regarding the restaurant exact
location, about any promotions going on , any new products , etc

Ambient conditions the temperature of the area so that the customers are comfortable

Equipments such as the seats , toilet equipments etc

Employee appearance uniforms that are attractive and hence employees look clean
and tidy in it.

OTHER STRATEGIES

Menus & Hiring

Eye-catching menus can increase restaurant revenue having good hiring criteria and processes in
place can help a restaurant increase revenue and employ good workers.

Specific Language
Being specific with suggestions for beverages or appetizers can help restaurant servers increase
revenue and tips.
Up-Selling
Up-selling is a good way for restaurant servers to increase restaurant revenue

Pre-Busing Tables
Increasing restaurant revenue can be as simple as keeping tables clear of clutter and loose plates
to make happy customers
Check Average
Increasing restaurant revenue can be as easy as training servers to boost check averages and tip
dollars by up-selling.

Sanitation
Restaurants with good sanitation and hygiene standards increase revenue by impressing
customers with a clean environment
To increase sales certain points that are being used are :Pre selling
At the point of first interaction with the customers, there is always the opportunity to
communicate the current promotion.

Suggestive selling
During the order selling process ,there is always the opportunity to suggest items that would
complement the meal if not already ordered, such as beverages, desserts ,larger size etc.
A momentary pause after the suggestion is effective in allowing the customer to break the silence
by responding, hopefully with a yes.
For example a customer orders a beverage , an appropriate suggestive selling would be that
whether it would be large???? And then to wait for the customer to answer.
In order to maintain maximum sales you must increase the number of customer purchases called
transactions or guest checks
Take the opportunity to maximize the amount spent by the customers on each transactions called
guest check average or ticket average.
How to increase sales??????
Although one of the goals is to increase sales ,this should not be done in a way that negatively
impacts the customer ,such as by intentionally not mentioning an offer or discount.
Although the gain would seem to be immediate ,over the long run this will result in customer
dissatisfaction and decreased sales and consequently decreased profits.
In KFC contests, incentives, proper training and follow up are effective ways to build guest
check average and sales. In KFC we have a family tree system in which the whole restaurant
team is divided into 4 families or groups which is headed by the shift managers and the
restaurant assistant mangers with team members being an essential part of it. the restaurant
manger sees all perform and follow up .basically all the families are judged on various points
such as people ,profit, sales, customers and stars are given for each good performance. This
builds up competition amongst the team and motivates each one of them to work efficiently and
achieve results and make their family win at the end of the month the stars are calculated and the
family with the maximum stars are given gift vouchers etc.

Hence these kinds of programs keep on motivating the team and helps in achieving the end
result.
If have another program called branded services which is the way of delivering the finger licking
good experience which we are valued for
It includes:

The hostess program

Employee empowerment

Kitchen tours

Product champion

Chef of the day

This helps making KFC unique from all other and hence building trust in their customer by
giving them a great service so that the customers returns back to the restaurant and takes good
memories with them. and this helps us a building a loyal customer.

STRATEGIES TO INCREASE FOOD AND BEVERAGE REVENUE

Brand positioning

Maintaining and enhancing your restaurant image

Ensuring hours of operation are appropriate for maximizing sales

Maximizing promotions

Market assessments, which helps in identifying sales growth opportunities.

Community activities

BRAND POSITIONING

The goal of all the yum restaurants is to become the worlds favorite restaurant brands and to
develop the worlds best restaurant operations. The KFC offers fun, entertainment and
informality with friendly service with a unique menu with finger lickin food that brings friends
and family together.
UNDERSTANDING CUSTOMER EXPECTATIONS
Historically we have focused on measuring our performance against technical standards-we have
not focused directly on what is important to the customers.
Three methods are used to collect information about the expectations of our customer, these are
as followsTHE BRAND TRACKER
The customer experience monitor (CEM) champs check for both market and restaurant. Each
quarter ,the market receives data on brand tracker and CEM scores for the overall market.
Each period the market also receives champs check data for the whole market and for each
individual restaurant. Each period you receive a champs check assessment of your restaurant,
each quarter you are updated on overall market performance.
BRAND TRACKER
The brand tracker is an opinion poll of our restaurant brands that measures customer usage as
well as customer awareness and impressions of food experience and value.

THE BRAND TRACKER:Produces telephone interviews with consumers

Measures perception of our brand and key competitors by market ,by brand and by quarter makes
business decisions based on information about the overall market.

During the interviews consumers are asked the following questions:

Have you heard of our restaurants?

How often do you eat in our restaurants?

What are your impressions of our food, experience and value?

The format of the interviews varies based on regional customer preferences in data collection.
Not all markets maybe represented. However it is important for you to know the significance of
tracking customer recognition of our brands worldwide.
CUSTOMER EXPERIENCE MONITOR (CEM)
The CEM is a research technique that tells us how the current visits of our customers compare to
visits to key competition, in terms of experience food and value. The CEM provides information
on how the overall market is doing.
The CEM:Asks the customers to make purchases from both a yum and a competitor restaurant and evaluate
the two experiences. Produces over 100 evaluations per brand, per market, per quarter. Asks
questions that do not reveal which restaurant is paying for the research.
Use champs as a basic to ask questions, champs includes cleanliness, hospitality, accuracy of
product, maintenance, product quality, speed of service. Takes measurements from certain
restaurants in the market and not for each individual restaurant.
Draws conclusion based on the information about the overall market performance.
Champs check
Champs check is a mystery customer program used to gather information about individual
restaurant experiences worldwide.

Training and tools are provided to the team members to meet the customer expectations
evaluated by champs check.

An outside company hires mystery customers who evaluate their experiences at our
restaurants.

Champs check result tells us what we are doing well and where we need to improve.

Champs check is a way to measure ourselves through the eyes of our customers. it is not a
technical operational evaluation. Therefore its criteria are very basic and consumer oriented.
Interpreting customer feedback:If the brand tracker results are favorable but the customer experience monitor results are
unfavorable :

Customers love are brand but have recently had a bad experience with us.

The focus is to decide what are champs related action plan be so we can improve the
customer experience

If the brand tracker results are unfavorable but the customer experience monitor are favorable.

Customer have good experiences in our restaurants but their overall impression is still
unfavorable.

The focus should be on maintaining excellent operations and improving brand awareness
and image through advertising and marketing

If the customer experience monitor results are favorable but the champs check results are
unfavorable :

Although our customer generally enjoy their visits ,champs check have uncovered some
operational problems.

The challenge is to resolve the operational problems before they affect CEM results.

The champs check results change faster and will show more immediate results than the CEM ,
because champs is measured more frequently in the champs check
The elements of successful restaurant marketing includes :

Maintaining champs and operational excellence.

Increasing guest check average.

Increasing the frequency of visits.

Attracting new customers.

LOCAL STORE MARKETING (LSM)

Steps

Maximize champs

Restaurant image

Hours of operations (trade hour evaluation ,expanding trade hours, day part and week
part sales)

Maximizing promotions (regional marketing process, elements of promotion)

Market

assessment

(customer

evaluation

,competitor

evaluation,

identifying

opportunities)

Community involvement (community activities to drive sales)

Implementing a local store marketing program

Suggestive selling

World class hospitality

For the restaurant manager there are four important phases of a successful promotion :

Evaluate readiness

Prepare for promotion

Implement the promotion

Track and evaluate the results

PROMOTIONAL MATERIALS

Promotional materials are used inside and outside the restaurant to create awareness of
the promotion .

Examples include window clings, ceilings danglers, counter and table top tents, banners,
menu board add ons ,drive thru extenders, etc.

Promotional materials and the instructions for setting them up should be received by the
restaurant general manager atleast 48 hours in advance of the promotion.

At least 24 hours before the promotion begins , the restaurant manager must review the
instruction guide and be certain of :

How to set up the promotional materials

Having all the promotional materials required

Having adequate labour on the roster to set up the restaurant for the promotion

Marketing of products done by kfc through various mediums :In November 2009
Whats on television!!!!!
Really really spicy..really really tasty!!!!!
Get ready for hot wings !!!!!we will be setting your t.v sets on fire from the 1st week of
December with the new hot wings t.v ad.
For the first time we also have a price point on t.v ad- rs. 35/- for 3 pcs.
This ad is targeted to teens and young adults who are always stressed on the purse strings and
would be blown off their feet with a price point of 35/-.
In December 2009
Bucket full of surprises: introducing the mighty variety bucket meal!!!!!!!!!
The mighty variety in store will be supported with standees
The mighty variety bucket meal is targeted at eating out occasions for groups of young adults.
Movie mania :Hot wings @ PVR

The PVR promo is back at the below locations

PVR forum , bangalore
PVR lucknow
PVR ambience mall
PVR mgf metropolitian gurgaon
PVR select city walk delhi
PVR ludhiana
PVR priya
With the spicy..lemonyfully masaaledar..hot wings!!!!!!
The promo will be supported by

Ticket jackets: 2 coupons each with buy 7 pc hot wings, get a regular pepsi/regular fries
free offer

In cinema contest: lucky seat contest wherein a seat number would be flashed on a slide
during the interval of the show,and the person sitting on that seat would win free 7pc hot
wings from kfc.

ADVERTISING DONE BY KFC!!!!!!!!!!

KFC takes to TV after 12 years in India - May 26th, 2007

The TVC poses a question to the consumer, What can you give up for the irresistibility of
KFC chicken? Proposing to a girl is an important event in a mans life, so a story was built

around that, saying that the irresistibility of KFC chicken can affect even this turning point in a
mans life
Bunty takes Lovely to KFC, planning to propose
Ring in hand, he asks her to shut her eyes
But Bunty gets busy with the chicken served to him
Lovely sneaks a quick peek...
Only to find Bunty licking his fingers

Chicken in hand, Bunty slides the ring to Lovely

The TVC has Bunty, a Sikh man (whose name, incidentally, isn't mentioned in the TVC) taking
his girlfriend, Lovely, to KFC, all set to propose to her. He asks her to close her eyes and she
complies. Just then, the waiter comes and places a tray of fried chicken on the table between
them. Buntys focus shifts from proposing to Lovely to eating the chicken. Lovely is seen and
heard,

repeating

excitedly,

Kholoon?

(Shall

open

my

eyes?)

When she realises he isnt replying, she peeps from the corner of her eye, and sees him licking
his fingers and enjoying the chicken. She opens her eyes and repeats, Kholoon? But Bunty is
still unable to look at anything but the remaining piece of chicken in the plate. He slides the
box with the ring towards her, indicating she can wear it on her own. The ad ends with a
voiceover conveying the irresistibility of KFC chicken.

All over the world, KFC is linked with tasty chicken, and in India, Sardars are considered
chicken connoisseurs. Therefore, this section of the population can identify easily with Bunty.

There is a change in lifestyle, consumer behaviour and consumption patterns. Eating out has
become a way to consume freshly cooked food, particularly for those who cannot get homecooked food to office every day, Clearly, the office-going segment will be a strong target for
KFC. Therefore, it is safe to say that the target audience for KFC includes young working
adults, with or without kids, and essentially, youth, from SEC A and B, aged between 25 and
30, living in cities. The brand appeals a lot to men, say the results of a study KFC conducted,

and men are the core decision makers in terms of initiating what will be eaten.

KFCs core competence is branded chicken, and its objective is to get this concept to India.
KFCs competition is not a McDonalds, a Dominos, or any fast-food restaurant for that
matter. It faces competition from all single-owned outlets that sell chicken as a primary
product. The company feels that it is not really a disadvantage to launch a TVC more than a
decade after its presence in the country, even though other branded chicken companies (such as
Godrej Real Good Chicken) have raced ahead with their communication. In terms of brand
recall, KFC is one of the top five brands in the country, despite not being advertised on
television,

like

other

big

brands

KFC has done some strong groundwork for its brand, which includes thematic campaigns in
print, promotions around various offerings on its menu such as the Chicken Bucket and Hot
and Crispy Chicken and on-ground events such as road shows in small towns.
KFC also sponsored the ICC World Cup 2007, for which it launched the Yeh Contest Hai
Fixed promotion. Each customer was assured free dessert on buying hot and crispy chicken
and a Pepsi. The customers also got to participate in a lucky draw, with the winners being
treated to a 10-day, fully-paid trip to the West Indies and exclusive tickets for the important
Indian

matches.

KFC entered India in 1995 with an outlet in Bangalore. It relaunched the brand in 2004 after a
gap. Today, it has 35 stores, 15 in Delhi(NCR), five in Bangalore, four in Hyderabad, two each
in Mumbai, Chennai, Kolkata and Pune, and one each in Chandigarh, Ludhiana and Agra.
Nov 19, 2008
Mktg-KFCropesinualhfwdcmg
With an aim to reinforce its Finger Lickin Good food proposition, quick service restaurant
(QSR) chain KFC has launched a new brand campaign featuring ace Sri Lankan off-spinner
Muttiah Muralitharan.

The new campaign, conceptualised by advertising veteran Piyush Pandey, will see Muralitharan
taking to the cricket field and forgetting all about his beloved sport as he remembers the finger
licking good taste of KFCs popular Zinger burger that he has consumed just before the match.
The new campaign builds on our Finger Lickin Good proposition. It takes up from where the
previous campaign on enjoying a bucket of chicken with friends left off. Muralitharans signature
bowling style provides a perfect fit for this campaign and helps bring out the lust consumers have
for our products.
Further, KFC recorded 50 per cent growth this year on the back of new products and brand
promotions.. The Indian QSR market is growing at a CAGR of 10 per cent annually and has
players like McDonalds, Dominos and homegrown Nirulas among others.
"Around the world, KFC is known for its finger-licking good food. In fact, this is their
worldwide tag line. I think the new commercials featuring Murlitharan bring the proposition
alive in a refreshing and fun way. I am sure these commercials will not only excite the viewers
but they will also get them into KFC OUTLETS.
Press conference with Sharman joshi to promote original receipe chicken in kfc delhi on 6 th
april 2010
The actor was in the capital Tuesday to celebrate 70 years of restaurant chain KFCs signature
product - Original recipe.
While he took chunky bites of a chicken leg at the press meet, Sharman said he would love to
endorse KFC, which is among his favourite eating joints
I am completely indifferent to thoughts like who was endorsing this product before or who else
is. I am just proud to be associated with this brand because I believe in it.. Nothing else beyond
this matters, he said.
Marketing the Brand

Kentucky Fried Chicken has begun marketing through social media online. Executive VicePresident for Marketing Javier Benito discusses the company's efforts
Yum! Restaurants to increase KFC outlets in India
US-based Yum! Restaurants is planning to invest up to Rs 150 crore to more than double the
number of outlets of its quick service restaurant brand 'KFC' in the country by 2010.
"We are planning to invest up to Rs 150 crore in the Indian market by 2010. We will expand the
KFC chain in the country to 110 restaurants by end of the period, from 75 now," Yum!
Restaurants India Managing Director (Indian Subcontinent) Niren Chaudhary said.
The fast food brands operator is also aiming to tap the 'chilled beverages' market with its newly
launched store-in-store concept of 'Krushers' in the KFC restaurants.
He said the company will also undertake transformation of the KFC restaurants' interior and
ambience.
"Our new restaurants will have a totally new decor packaging intended to give a more
contemporary look," Chaudhary said, without providing further details.

DATA ANALYSIS

1. How many times in a month do you prefer visiting a restaurant?

(a) 4-6 times (b) 6-8 times (c) 8-10 times (d) more than 10 times
NO OF VISITS PREFERED
4-6 TIMES
6-8 TIMES
8-10 TIMES
MORE THAN 10 TIMES

28
23
7
2

NO OF VISITS PREFERED
30
25
20
15
FREQUENCY 10
5
0

Data shows that 90% of respondents prefer visiting restaurant 4-8 times a month. This gives an
impact that average footfall in a restaurant is twice in a week.

2. Which is your most preferred outlet for having food?

(a) Mac Donalds

(b) KFC

(c) Wimpeys
MAC DONALD
KFC
WIMPEY'S
PIZZA HUT

(d) Pizza Hut

25
28
3
4

MOST PREFERED OUTLET

30
25
20
FREQUENCY

15
10
5
0

MAC DONALD

KFC

WIMPEY'S

PIZZA HUT

Survey suggests that KFC and Macdonald are among the most favored restaurant for having
food. KFC being new entrant of the two is still favored the most the reason may be its effective
marketing, quality, customer approach. Wimpeys is least favored among the given options

3. Which of the factor influence you the most to visit KFC?

(a) Ambience

(b) Food Quality

(c) Food Variety

(d) Customer Service

AMBIENCE
FOOD

21

QUALITY
FOOD

33
6

VARIETY
CUSTOMER
SERVICE

MOST INFLUENCING FACTOR

FREQUENCY

35
30
25
20
15
10
5
0

55% of the respondents rated food quality as the most influencing factor for having food at KFC.
Then around 38% opted for ambience as the judging factor and the remaining went for food
variety. So crux can be taken that good food quality is offered at KFC

LIMITATIONS OF THE STUDY

Though all the efforts have been made for an in-depth study and delineating the correct picture,
but in course of doing so, there were some limitations involved with the methodology adopted.
1.

Survey is conducted in some areas of Delhi region which may not be large enough to
generalize on a nationwide scale.

2.

A sample size of 60 was taken to fill the questionnaire which again might not be
sufficient, to represent the true picture of perception & attitude.

3.

Findings are restricted to geographical boundaries of Delhi state.

4.

The time constraint did not allowed interaction with each individual.

5.

Respondents can be bias towards some personal liking or disliking which restricts them
giving their frank and fair opinion.

6.

Since the perception and attitudes varies with each individual so this effect has been
reflected in the study

CONCLUSION

KFC is a multinational fast food chain company that has successfully established itself in
the Indian market. Initially it faced few Ethical problems in India but after re entry KFC
suited very well in India market.

The revival strategies like Able to adapt to cultural differences, tastes and preferences
Price sensitivity helped KFC to grasp its feet in India.

KFC is slowly and steadily moving up the ladder of preference by India customers .

The survey done shows that KFC is among the two most preferred place to have food in
India.

The pricing strategy followed by KFC is little expensive as compared to its nearest
competitor Mac Donalds but customers are willing to give that money because of
Quality and ambience offered by KFC.

KFC is also offering Vegetarian food in there menu of which Veg Feast is most preferred
by Customers.

To summarize this up KFC is adapting beautifully and effectively in Indian market which
is supported by their customer understanding and emotional rational shared between KFC
and there customers.

BIBLIOGRAPHY

BOOKS / JOURNALS

Keller, Strategic Brand Management 2008 edition.

Tull and Hawkins, Marketing Research 2007 edition.

MAGAZINES / NEWSPAPERS

Business World

Business Today

Outlook

The Times of India

The Economic Times

The Hindu Business Standard Line

MAGAZINES / NEWSPAPERS

www.kfc.com

www.kfcfmcg.org

www.foodmarket.com

www.foodindia.com

www.googlesearchengine.com

QUESTIONNAIRE
Name:

____________________________________

Gender:

M __________________ F ______________

Age Group:

_____________________________________

Occupation : Student ________ Professional ___________

1.

How many times in a month do you prefer visiting a restaurant?

(a) 4-6 times (b) 6-8 times (c) 8-10 times (d) more than 10 times

2.

Which is your most preferred outlet for having food?

(a) Mac Donalds
(c) Wimpeys

3.

4.

6.

(d) Pizza Hut

Which of the factor influence you the most to visit KFC?

(a) Ambience

(b) Food Quality

(c) Food Variety

(d) Customer Service

Do you prefer having vegetarian food at KFC?

(a) Yes

5.

(b) KFC

(b) No...

Which Non-Vegetarian Item do you prefer the most at KFC?

(a) Zinger Burger

(b) Chicken Bucket

(c) Snackers

(d) Box Master

Which Vegetarian Item do you prefer the most at KFC?

(a) Veg Feast

(b) Veg.Thali

(c) Chana Snacker

7.

What do you think about the Pricing here?

(a) Very Expensive

(b) Expensive but still payable

(c) Reasonable

8.

Does the Logo

(d) Cheap

and tagline Finger-lickin good! attracts you?

Yes.
9..

10.

No

What do you think about parking facility provided by KFC?

(a) Good

(b) Normal

(c) Bad

(d) No Comments

With whom do you often go with?

(a) Alone

(b) Friends/Colleagues

(c) Family

(d) Others

RECOMMENDATIONS

Even though KFC has define the target market but Still they need to redefine.

KFC has to improve their Research and Development

They only focus higher income level people

Lack of specific open space like McDonald

Unlike McDonalds they dont blend with the local cultural when it comes to int l marketing.

We therefore conclude that KFC should work on the management issue to build good
atmosphere for their employees to work in. They also make sure that

they offer

quality food and excellent service.

Todays generations, most of the people are becoming health conscious especially the
people in the United States. They are prone to hypertension, which is caused by bad
cholesterol not only Americans but all people around the world, most especially this 21 st
century.

Nowadays, at early age, younger people are prone to hypertension. According to the latest
data, the youngest person who died was at the age of 16. Due to the fact that most of the
foods right now are ready-to-eat, most are processed foods.

What if KFC will offer and/or add fresh produced products such as fruits and vegetables in
their menu. In this case, they can increase their sales. Even vegetarians can enter to their
establishments.

SYNOPSIS
OBJECTIVE
The motive of this project is to generate the idea of sustainable competitive growth through
which various plans of increasing food and beverage REVENUE which can be put into action by
means of analysis of market potential.

CONCLUSION

KFC is a multinational fast food chain company that has successfully established itself in
the Indian market. Initially it faced few Ethical problems in India but after re entry KFC
suited very well in India market.

The revival strategies like Able to adapt to cultural differences, tastes and preferences
Price sensitivity helped KFC to grasp its feet in India.

KFC is slowly and steadily moving up the ladder of preference by India customers .

The survey done shows that KFC is among the two most preferred place to have food in
India.

The pricing strategy followed by KFC is little expensive as compared to its nearest
competitor Mac Donalds but customers are willing to give that money because of
Quality and ambience offered by KFC.

KFC is also offering Vegetarian food in there menu of which Veg Feast is most preferred
by Customers.

To summarize this up KFC is adapting beautifully and effectively in Indian market which
is supported by their customer understanding and emotional rational shared between KFC
and there customers.