3 Saivenkataramireddy KFC PDF

NALSAR UNIVERSITY OF LAW
HYDERABAD
Department of Management Studies
PRODUCT & BRAND MANAGEMENT ASSIGNMENT - 3
ON
BRAND EQUITY OF KFC

BY
Y. SAI VENKATA RAMI REDDY
MBA 19-21
ROLL NO - 51
2019-2MBA
SUBMITTED TO:
Prof. A Vidyadhar Reddy
Instructor: Product and Brand Management

BRAND EQUITY OF KFC
Brand Equity in terms of marketing refers to brand value that a customer perceives when he
or she satisfies with particular product of a particular brand. If the particular product reaches
the expectation of the customer and satisfies him then the product or the brand will have
positive Brand Equity. If the particular product fails to satisfy the customer either reaches his
expectation then the particular brand or product will have negative Brand Equity which leads
to decrease in sales and brand will automatically lose its value. Similarly, company having
positive brand Equity have increased sales when compared to company with negative brand
equity this allows companies to gain more profit from its sales because of the perception it
has in the customers mind and willing pays high price for the particular brand compared to
other brand similar products.
KFC (Kentucky fried Chicken) an American fast food restaurant chain founded in 1930
nearly 90 years ago from Louisville Kentucky is the world’s 2 largest Restaurant chain after
McDonalds which operates nearly in 23000 places in 150 different countries KFC is a
subsidiary of Yum! Brands which also owns different Food chain like Taco bell, Wing street
and Pizza hut.
As the Brand Equity has 3 major components Positive, Negative and consumer perception.
Other two components of the brand equity depend on Consumer perception this results in a
positive or a negative brand equity. Brand Equity is directly related to sales this not only
helps in increased sales but also will help in more profits from single sale and also helps to
retain the customers and also increases the sales of the different products of the same
company because of the perception that customers have towards the particular brand.
KFC has a strong positive brand equity which helps them to gain huge margins and retains
customers irrespective of other competitors providing same fried chicken for low cost due to
its brand equity, thus Brand equity helps KFC in high sales and customers also recommend
KFC to others and customers are more Loyal and customer retention is more this helps KFC
to keep its prices in a premium segment and a bit pricy than the competitors to sustain its
brand value.
In 1995 KFC started its first branch in India at Bangalore and faced a lot of difficulties from
farmers and many environmentalists and it also got ransacked and Bangalore police also
permanently provided a Police van outside the 1st Bangalore outlet over a year.
KELLER'S BRAND EQUITY MODEL
Keller’s Brand Equity model or Customer Based Brand Equity Model tells that in order to
build a strong brand company must make sure how customer perceives about the brand they
need to shape the customers how they feel and think about your product. This helps company
to build a strong brand equity and makes customers to buy more from them and helps in
increasing the sales along with the sales customer retention is also achieved and company
will be referred to other people by the customer.
Resonance
Judgement Feelings
Performance
Imagery
Salience
Keller had explained brand equity with the help of Pyramid which contains 4 fundamental
questions that every customer had in their mind and asks the company these questions are
further divided into 6 Building blocks which helps you to reach top of the pyramid to become
a successful brand.
I. BRAND IDENTITY
Creating Brand Salience is the first and the most important step in the pyramid this
helps you to stand out from the other brands and also helps customer to recognise the
same and knows about you in other words brand identity tells Who are you exactly.
KFC always targeted Upper and Upper middle-class people as its target audience and
prepared menu and pricing according to them when KFC came to India it has faced
many struggles from farmers and environmentalists and took police help to protect its
branch from Looting.
Then KFC changed its entire Menu and added vegetarian into its menu and started to
expanded its reach India and become success with its localised menu and cooking
techniques and started campaigns promoting veg culture in KFC and got the Pulse of
Indians. KFC in Mumbai tied up with dabbawallas to supplies 5-in-1-mealbox to
working class people. The main USP of KFC is that its cooking taste.
II. BRAND MEANING
“Imagery” and “Performance” are the two building blocks of this step. This step
concentrates on how good and well your brand communicates.
Imagery deals with how good your brand recaches or meet the customer it nay be of
different sources from advertising or word of mouth or from anywhere
Performance deals with how good your product reaches or meet the customer it may
be in any term such as reliability, durability etc.
KFC Products reaches its customer as a reliable product KFC has a different menu for
different categories of people from low to high calories and from non-veg to pure
vegetarian.
III. BRAND RESPONSE
Feelings and Judgements are the building blocks in this step and brand response are
more consider on 4 key Categories
Quality: KFC never compromises in its quality of food served or materials used and
also maintains its restaurants good
Credibility: Credibility is also one of the important key judging factors in brand
response.
Consideration and Superiority
These factors help Company to know think and feel about your products and helps
you to improve more.
IV. BRAND RESONANCES
It is the most important step in the pyramid and sits top in the pyramid and valued as
most important one and is divided into 4 categories
Behavioural Loyalty: This tells a company that how regular or how repeated a
customer buys product from the company
Attitudinal attachment Every KFC loyal Customer sees KFC as a Special and
unique one and shows love towards the brand
Sense of Community and Active engagement are the other two categories
This is the pyramid model of brand equity or Keller’s model of brand equity or Customer
based Brand equity model of KFC.

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NALSAR UNIVERSITY OF LAW

Department of Management Studies

PRODUCT & BRAND MANAGEMENT ASSIGNMENT - 3

BRAND EQUITY OF KFC

Y. SAI VENKATA RAMI REDDY

Instructor: Product and Brand Management

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