Intro to POM Project

Group Members:
Mariam Waseem
Asad Mehmood
Zain Alam
Hina Rasheed
Haseeb Rabbani

Company profile:
Food, fun & Festivity, this is what KFC is all leading the market since its inception, KFC provides the
ultimate chicken meals for a chicken loving nation. Be it colonel sanders secret original recipe chicken or
the hot & spicy version, every bite brings a yum on our face. At KFC we can proudly say, We do chicken
right.

Perfecting its secret recipe of 11 herbs and spices in 1939, KFC has come a long way. With over 10,000
outlets in the world, KFC has maintained its title, for the last 60 years, of being the chicken Experts.
Opening the first KFC outlet in Gulshan-e- Iqbal in 1997. KFC wore the title of being the market leader
in its industry. Serving delicious and hygienic food in a relaxing environment made KFC everyones
favorite. Since then, KFC has been constantly introducing new products and opening new restaurants for
its customers.

Presently KFC is branched out in eighteen major cities of Pakistan (Karachi, Lahore, Gujranwala, Sukkur
& Muree) with more than 60 outlets nation-wide.

Operations
KFC is a subsidiary of Yum! Brands, one of the largest restaurant companies
in the world. While Yum! does not offer individual figures for its restaurant
brands, KFC's 2011 sales revenue was estimated at $15 billion. KFC has its
headquarters in Louisville, Kentucky, United States, in a building on
1441 Gardiner Lane known colloquially as "The White House" due to its

resemblance to the Washington, D.C. building. Headquarters include

executive offices and the company's research & development facilities. KFC
is incorporated in the U.S. state of Delaware.
As of 2012, there were over 18,000 KFC outlets in 120 countries and
territories around the world: 4,200 in China, 9,000 internationally and 4,600 in
the United States, with China accounting for 49 per cent of revenue. All
restaurants are furnished with images of Colonel Sanders. As well as dine-in
and take-out, many KFCs offer a drive-through option. KFC offers a limited
delivery service in a small number of markets, mostly in densely populated
areas such as Singapore. KFC was described in 2012 by Bloomberg
Businessweek as a "muscular player" in developing regions, specifically
Africa, China and India, while noting its falling market share in the United
States to rivals such as Chick-fil-A and Popeyes.

SWOT ANALYSIS

Strength
Global Presence: KFC is the worlds 2nd largest restaurant chain with
more than 18,000 KFC outlets in 120 countries and territories around the
world. It is market leader in Non-veg food joints categories in majority of
countries it is in.
2.
Strong parent company: It is the subsidiary of Yum! Brands, a
restaurant company that also owns the Pizza Hut and Taco Bell . Yum!
Brands, the fortune 500 company, is one of the worlds largest fast food
restaurant companies in terms of system unitsmore than 41,000 restaurants
around the world in over 125 countries & it help individual brands in
optimizing its resource usage.
3.
Veg & Non veg offerings: Although KFC is known for its finger licking
Chickens menu but recently they ventured out in Vegetarian category which is
1.

helping them in increasing their business & attracting both veg & non-veg
preferred customers.
4.
Secret Recipe: Sanders Original Recipe of 11 herbs and spices is one of
the most famous trade secrets in the catering industry. A copy of the recipe,
signed by Sanders, is held inside a safe inside a vault in KFCs Louisville
headquarters, along with eleven vials containing the herbs and spices.
Weakness
1.
nhealthy fats: Use of unhealthy fats & unhygienic calories is creating
problem for the fast food chains to which KFC is not an exception.
2.
Managing franchisees: Franchisee management is one of the critical
issues in the success of the fast food chains and due to conflicting operational
issues between KFC and its franchisees many of its outlets got closed since its
inception.
Opportunities
1.
Market expansion: Emerging economies and their changing lifestyle
resulting into more of outings with family/friends, corporate parties will
result in the high growth of the industry. Furthermore, the presence and
popularity of McDonalds is anytime more daunting for KFC.
2.
Specializing into vegetarian Menu: Although KFC recently entered in
vegetarian fast food category but they have limited menu items as compared
to other chains like subway, Pizza-hut, Mac Donalds, who are already an
established player in the segment. So specializing into Veg. items like they
have in Non-Veg will help the company in its overall global growth.
3.
Rise in health conscious population: Designing its menu for the
health conscious population will be the driving force for the whole industry in
the future because due to changing lifestyle people are getting less time for
themselves due to which health issues are raising.
4.
Penetration: Strengthening its outlet network by further penetrating the
current market will help KFC in increasing its revenues & become no.1 player
in fast food chain market given that now they have presence in both Veg. &
Non-Veg. menu in the selected market.
Threats

1.

Competition: KFC is not a leader in the fast food chain industry so it has
to compete with all other well established fast food companies who all are
flourishing in the market.
2.
Changing Consumer Eating habits: With government & NGOs health
awareness campaigns people are becoming more aware of what to consume &
what to not which is affecting the business of fast food Industry as a whole.
3.
Raw Material prices: Rise in the raw material prices may affect the
industry, of which KFC business is not an exception.
4.
Closure of current Franchisees: Rise in channel conflict resulting into
closing of the franchisees is affecting its brand image & resulting into negative
word of mouth.

KENTUCKY FRIED CHICKEN P. E. S. T. E. L.

ANALYSIS
Kentucky Fried Chicken had PESTEL (Political, Economical, Social, Technological,
Environmental, and Legal) analysis that can change their International Business
strategy.

POLITICAL
Kentucky Fried Chicken provides the fast-food service. To achieve their goals they
make a political system that can guide them or they called as a guide service. This
political system could change their business strategy and make the progress to their
company. For example, they have employee that run the activity in the restaurant.
They make a contract with the employee and make a pension fee. They also provide
the alternative in buying KFC. KFC Hospice Dinners that delivering a caring out
reach to the terminally ill. The Hospice delivers meals to the terminally ill nationwide.
These meals are delivered directly to the patient in their own house. We always
called that a delivery orders. The customers feel better when they enjoyed this
system. KFC Cafeterias which offering dishes competitors. And KFC Grocery
Products which The Cornel is always home.

ECONOMICAL

If we talked about the economy aspect, we talked about the fund or money.
Kentucky Fried Chicken provides the lower price. They have a food packet; just like
we buy the packet we can get the discount or something that support us to buy there
again. In this economic analysis we find the benefit of economical that changes the
strategy of international business of Kentucky Fried Chicken. They can grow up with
the lower price and the satisfying service.

SOCIAL
Kentucky Fried Chicken is one of the International Company which has begun their
company early and nowadays they are one of the biggest companies in the world.
Why the KFC can be the biggest company. Kentucky Fried Chicken built they social
connection with others organization or the company around the world. Beside that in
their restaurant, they also provide the food that the tasted is related with the tasted
in the country they took the place to build the restaurant. In addition abut the
employee, they are worked the people from the country which are have a good
performance and have a talent in cooking for the chef. KFC also supported the many
of events, they help the committee by sponsored the event. Sometimes they give the
donation to the poor people. With this social activity they company will be known.

TECHNOLOGICAL
In this analysis, Kentucky Fried Chicken can go out of their home country. They use
the modernization technology to advertise their product. They make a website of
KFC so easily we just search in internet what do we want about KFC and so many
information about KFC. There are also many transactions that do by internet and the
KFC just delivered the order to the customer address. In our country they have the
phone number that can contact if we want to order some food. Sometimes the
customer lazy to go out to buy some food, this is the reason they make an order
delivered.

Product life cycle

The product life cycle which the natural process of product begins, start to grow,
mature and decline and die. The food of KFC fried chicken about to reach decline
stage but still not decline because it has many competitor although substitute
product competitor, brand competitor, and international competitor. The product also
can stand for long because of the power consumers to support it. Besides that, KFC

also use many way to extending the product life such as the reintroduction, create
the new and many favorite and feature for their product. Example, the fried chicken
with original recipe flavor, but KFC also intro some other flavor like spicy and black
pepper chicken to extend it product and to improve efficiency. Packaging of KFC is
the red and white paper bucket it uses for larger sized order of chicken and has
come to signify the company was originally created by Wendy's restaurants, and
founder is Dave Thomas. The paper packaging use because of that it can help to
keep the chicken crispy by excess from moisture. The packaging also for add
convenience to consumers and assist to attracting and promoting the product to
consumers. The packaging also helps to provide information about their company
brand, the product ingredients and so on to consumers.

Competitive Strategy
their products are priced high and target the middle to upper class people
KFC adopted the Costbased Pricing strategy
Pricing of the product includes the govt. tax and excise duty
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 fix

ACTIVITY MAPPING