after reviewing this feasibility report

8/2/2019 After Reviewing This Feasibility Report

http://slidepdf.com/reader/full/after-reviewing-this-feasibility-report 1/23

New Product Devolpment In KFC Relevant To Customers

: After reviewing this feasibility report, KFC Multan actually introduced Brownies for the first

time. Therefore this project report became successful. You can now find Brownies in in KFC

menu.

EXECUTIVE SUMMARY

Restaurant business is one of the oldest known to man and to a large extent is still an art and willremain so in future. System and practices make the job of managing a hotel or restaurant muchsimilar, but the human element is difficult to systemize. The field of restaurant business isinterdisciplinary. It draws up economics, psychology, management, food technology,architecture and marketing clustered together. It is a business of hospitality.

Multan is one of the oldest cities of Pakistan and is expanding everyday. The trend of the peopleof Multan is drifting extensively towards modern means of socializing and relaxation. People are

getting more involved in fast food. Therefore, we have worked on the marketing management of KFC to see how it’s affecting the lifestyle of people in this locality.

KFC, the name requires no explanation. It is a chain of restaurants operating in more than 80countries with over 1000 outlets around the world – from Shanghai to Sao Polo; from the sand of Saudi Arabia to the side walks of New York and now in Pakistan. It is part of the Triconrestaurants internationals which is one of the most leading multinational organizations in theworld. Said to be the second most famous and largest fast food franchise in the World, No. 1brand in Asia with the market leader ship in Japan, China, Malaysia, Indonesia, and Korea.

In this report, we have discussed the history of KFC; Its evolution and expansion in Pakistan,

KFC’s sales and promotion techniques, operational activities and unique style. Thisorganization’s internal and external analysis, its strengths, weaknesses, opportunities and threats

are discussed in this report.

We have proposed a new product, Chocolate Brownies, which satisfies the KFC customers whoseek dessert in the restaurant but find none. We have discussed its marketing strategies andpricing policy. If this product is actually introduced, more customers and more value will beattracted towards KFC.

KENTUCKY FRIED CHICKEN

Food, fun & Festivity, this is what KFC is all leading the market since its inception, KFCprovides the ultimate chicken meals for a chicken loving nation. Be it colonel sanders secretoriginal recipe chicken or the hot & spicy version, every bite brings a yum on our face. At KFCwe 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 over10,000 outlets in the world, KFC has maintained its title, for the last 60 years, of being thechicken Experts. Opening the first KFC outlet in Gulshan-e- Iqbal in 1997. KFC wore the title of



Kentucky Fried Chicken became a subsidiary of R.J. Reynolds Industries, Inc. (now RJRNabisco, Inc.), when Reynolds acquired Heublein Inc. in 1982. KFC was acquired in October1986 from RJR Nabisco, Inc. by PepsiCo, Inc., for approximately $840 million.

In January 1997, PepsiCo, Inc. announced the spin-off of its quick service restaurants -- KFC,

Taco Bell and Pizza Hut -- into an independent restaurant company, Tricon Global Restaurants,Inc. In May 2002, the company announced it received shareholders' approval to change itscorporation name to Yum! Brands, Inc. The company, which owns A&W All-American FoodRestaurants, KFC, Long John Silvers, Pizza Hut and Taco Bell restaurants, is the world's largestrestaurant company in terms of system units with nearly 32,500 in more than 100 countries andterritories.

Until he was fatally stricken with leukemia in 1980 at the age of 90, the Colonel traveled250,000 miles a year visiting the KFC restaurants around the world.

And it all began with a 65-year-old gentleman who used his $105 Social Security check to start a

business.

KFC MILESTONES IN CORPORATE HISTORY

· 1964 John Y, Brown and Jack Massey purchased Kentucky Fried Chicken for US $ 2 million.

· 1969, Corporation listed on the New York Stock Exchange, Colonel buys the first 100 shares.

· 1986 Kentucky Fried Chicken purchased by Pepsi Co.

· 1991 New logo is introduced, replacing Kentucky Fried Chicken with KFC.

· 1992, In Japan, KFC opens its 1000 restaurant.

· 1994 KFC opens its 9000 restaurant in the world in Shanghai China.

· 1997, Tricon Global restaurant and Tricon Restaurants International (TRI) founded on October7th.

THE TRICON FAMILY

· KFC is the part of Tricon, the world’s largest restaurant group with restaurants in nearly 100

countries around the world.

· Combined with Pizza Hut and Taco Bell, there are nearly 30,000 restaurants worldwide.

· Our brands each lead their categories, generating annual retail sales over US $ 20 billion.

· We feed more than 18 million people every day.



KFC TODAY

· Today, KFC is the world’s largest and most well known chicken restaurant chain, with morethan 10,000 locations worldwide, in 78 countries. KFC and its franchisees employ more than200,000 people worldwide.

· KFC serves more than 4.5 billion pieces of chicken annually, to approximately 7 millioncustomers a day, worldwide.

MISSION STATEMENT

“To establish in Pakistan our position as the leading WQSR (Western Quick Service Restaurant)

chain, serving good value, innovative chicken-based products. Consistently providing a pleasantdining experience, with fast friendly service, in a clean and convenient location. At all times, wemust be dedicated to providing excellent service and delighting customers.”

GOALS

· Build an organization dedicated to excellence.

· Consistently deliver superior quality, and value in our products and services.

· Maintain a commitment to innovation for continuous improvement and growth, striving alwaysto be the leader the market place changes.

· Generate consistently superior financial returns and benefit our owners and employees.

VALUES

· Focus all our resources to our restaurant operations because that is where we serve ourcustomers.

· Reward and respect the contributions of each individual at KFC.

· Expand and update training with time and be the best we can be and more.

· Be open, honest and direct in our dealings with one another.

· Commit ourselves to the highest standards of personal and professional integrity at all times.

· Encourage new and innovative ideas because these are the key to our competitive growth.

· Reward results and not simple efforts.

· Dedicate ourselves to continuous growth in sales, profit and size of organization.



· Work as a team.

THE CHAMPS PROGRAM

Champs stands for the belief that the most important thing each of us can do is to focus on the

customer. It stands for KFC’s commitment to provide the best food and best experience for thebest value.

Champs stands for the six universal areas of customer expectation common to all cultures and allrestaurant concepts. They are:

· Cleanliness

· Hospitality

· Accuracy

· Maintenance of Facilities

· Product Quality

· Speed of Service

Champs is a philosophy to ensure that the customer has a consistent quality experience in everyrestaurant, every day, on every occasion and you will be playing a key role in delivering Champsto our customers.

EMPLOYEE CONDUCT RULES

As an employee at the KFC restaurant, there are certain rules and regulations that the companyexpects you to observe you to observe and respect. Such rules are necessary to ensure that therights and interests of the company and its assets are protected and a proper learningenvironment is maintained.

KFC IN PAKISTAN

Apart from fulfilling our commitment of serving delicious, fresh and hygienic food and at thesame time providing our customer with the ultimate entertainment; KFC also plays in the

economics development of our country.

Presently KFC has provided to over 1200 Pakistanis, which adds up to 6000 individualsdirectly dependent in KFC Pakistan.

The Government of Pakistan receives over Rs.10 million per month from KFC Pakistanas direct taxes.

95% of all food and packing material used in KFC Pakistan is procured locally, whichsums up to a purchase of over Rs.35 million per month.



Each new outlet developed by KFC Pakistan costs approximately Rs.40 million, which isa huge amount for our construction industry.

Franchising is a relatively new phenomenon in Pakistan, but this concept has gained tremendousacceptance in this market as can be seen from the recent growth trends in the market. Most of the

growth in the past few years has taken place in the food business, where the present market sizefor internationally franchised outlets is estimated in excess of Pak Rupees 1.2 billion (USDapproximately 24 million) in terms of annual sales. US food outlets such as Pizza Hut, KentuckyFried Chicken (KFC), McDonalds, TGI Friday’s, Subway, Taco Maker, and Nacho Nana’s are

already present in Karachi. Pizza Hut, McDonalds and KFC are also present in Lahore.

The non-food sectors such as retailing, convenience stores, hotels and motels, courier service,security services, and educational training centers are going to be the growth areas of the future.US companies dominate the franchise market in Pakistan in large part due to the fact that USfirms were the pioneers in this sector and the first to set up their outlets in Pakistan. In addition,the US firms entered the market with a long term commitment and provided full support to their

local partners. Also, U.S firms and their products are internationally known for their qualityproducts and superior service. Many US products such as McDonalds and Kentucky FriedChicken were well-known and recognized in the urban areas of Pakistan even before startingtheir operations in the country.

There are no local firms offering indigenous franchise opportunities, although several Pakistanientrepreneurs have acquired master franchise for this region with the objective to re-sell thefranchise to interested parties in the country. The government of Pakistan does not impose anyrestrictions on investors who wish to establish a franchise in the country, but foreign investorsare required to inform the board of investment and the state bank of Pakistan, primarily for thepurpose of repatriation of franchise fee or any profits accrued.

MARKETING

TARGET MARKET OF KFC in PAKISTAN

Kentucky Fried Chicken has been franchising all over the world for years. They have about30,000 franchises all over the world. Ever since Pepsi co. has bought into the restaurants chainthe have started an expansion program, which has focused not on the increasing number of theoutlets but on the increasing number of branches all over the world operating in full order. KFChas been in Asia for considerable amount of while and as it has the policy of novelty andpioneering in branching into foreign markets it opened its first branch in Lahore on June 20,1997. It was opened in the most interactive area of Lahore, Barkat Market. Before opening herethe KFC people conducted a research which was known as the “Barkat Market Analysis”. The

chain has been in the expansion mode for a few years and they branched into Pakistan afterresearching the market of Pakistan especially Lahore.



The reason behind targeting the Lahore market is that they have a very mobile food culture. TheLahore culture is a ready market for any new fast food franchises as the success of KFC proved,and was followed by the opening of McDonalds’s Pizza Hut in the foreign market and many

other local successful fast food outlets.

Pakistan supports a very well versed and varied palate and a colored culture that stronglysupports the system. They have targeted the market armed with spicy variations of chicken i.e.,hot & crispy, and hot wings that are not there in the international market, but are speciallydesigned for the pakistan palate. Its branch in lahore is one of the best in asia. In lahore theytargeted the most mobile culture first; students of lahore. They focused all the areas wellsurrounded by educational institutes, as where their first branch is the center of all studentactivity. Not only is it near institutes like pu and ilm but also near a lot of the businesscomplexes, thus catering to companies as well. So kfc targeted its market very well in pakistanand has been spreading with quite a speed since then. It has continued its aim in pioneering mostof the affluent cities of the country.

place

Some important strengths of KFC’s marketing strategy include a number of changes they have

implemented in the past few years to increase customer access. KFC has answered the fast-foodconsumer’s demand for availability in non-traditional locations by opening restaurants inshopping malls, airports, stadiums, amusement parks, office buildings, and mobile units (Krug,1996).

As an additional outreach to their customers, KFC has initiated a home delivery service in 14states (KFC 1997). As of February 27, 1997, KFC has more than 9,800 outlets located in 77countries (KFC 1997).

IN MULTAN

The area selected for the building is the most affluent and trafficked area of Multan city, Cantt. Itwas selected due to its visibility and easy accessibility. The Cantt area is amongst the largestshopping area of the city and the affluent shoppers frequent this area. Its centralized location hasadded to the success of the restaurant.

The restaurant building of Multan is the largest outlet in Pakistan. This outlet is catering to thecity as well as the surrounding area that includes Khanewal, Muzaffargarh and the similar smalllocalities.

Chicky Fun Area

Railway Services Club,Bahawalpur RoadOpp. Multan High Court,Multan.Ph: 111-532-532



TARGETED CUSTOMERs

In Multan the most affluent class that frequent KFC is the business and landlord class. In thegeneral customers as before the people of KFC have targeted the families and the students whoare on the outlook for a quick bit. Another factor is that following in the foot steps of the trend

setters, Lahore and Karachi food trends are diverting more and more towards fast food everyday. So most of the young generation here was craving for a quality fast food outlet. Now thatKFC has pioneered the fast food culture development Pizza Hut and McDonald’s will follow.

Most of the people here are businessmen and their affluent families are vigilant trend followersas they are the most influential people so previously they spent their fortune in fast foods outsidethe city and now they can do it in Multan KFC. Since the progress in the job sector the numberof the working women is steadily increasing in the city and so is the trend to frequent the fastfoods.

Focusing on the family outing culture in Multan KFC has specially developed a kids playing penthat allows the families to have a quality time in the restaurant. The atmosphere here is exactly

what families are looking for, so they have been more successful in attracting their target marketthen their predecessors. Another weakness of the Multanis that they have targeted is the tendencytowards the chicken consumption. Since the people here are less vege-oriented they have an edgeto their product. They have successfully attained their target market by only introducing HOT &CRISPY that in keeping with the people’s tastes here that are inclined towards spicy foods.

They have also introduced a special combo 4 to cater the masses in the city.

They population here is very price sensitive which has been dealt with KFC by maintaining aregular price range all over Pakistan. They have successfully targeted the opinion leaders, thebusiness in the city that set the trends followed by most of the people here.

PRODUCTS

In 1992, KFC expand their menu to include a greater variety of foods that are lower in fat thanfried chicken, such as Oriental Wings, Popcorn Chicken, and Honey BBQ Chicken. They alsointroduced a dessert menu, which provided a selection of pies and cookies. By the end of 1992,KFC held 49 percent of the $7.0 billion US chicken segment of the market (Krug, 1996).

In 1993, KFC offered a new rotisserie Chicken menu item. They also offered a lunch a dinnerbuffet in at least 27 states (Krug, 1996). In 1995, two new products were introduced: ChunkyChicken Pot Pie and the Colonel’s Crispy Strips. In 1996, KFC introduced their Tender Roast

Chicken, with projected sales of $500 million during the first 12 months (“Like”1997).

KFC uses traditional taste testing methods implemented by the Colonel approximately 40 yearsago. To ensure only the highest quality and best tasting products for KFC, a team of sixfranchisees and operators and two “chefs” comprise the KFC Chefs Council” who develop, taste,

rate and evaluate new product ideas (like 1997). The Chefs Council members are from variousparts of the country, representing regional taste preferences of their customers. Once a newproduct has passed inspection by the Chefs Council, KFC’s market research department conducts



additional tests. Each week 100 people, who represent customers, taste the newest products. If the products receive a good taste rating, they are then tested in three or four cities. The Colonel’s

quote still stands for KFC “If it doesn’t taste good, don’t serve it to the customer. (Like, 1997).

Products that KFC offer are almost same throughout Pakistan, but slightly differ from other

countries but not too much.

The secret of KFC's world-wide success is due mainly to three key benefits - quality, taste andconvenience.

KFC now offers a diverse and interesting menu which includes:

ü Arabian rice

ü Cheese

ü Col. Chicken burger

ü Col. Fillet burger

ü Corn on the cob

ü Dinner rolls

ü Fries

ü Hot and crispy soup

ü Hot wings

ü Macho’s burger

ü Nuggets

ü Cappuccino

ü Espresso

ü Frothe

ü Hot shots

ü Machos

ü Milo

ü Mineral water

ü Moccacino

ü Soft Drink

ü Zinger burger

A typical KFC meal consists of chicken, coleslaw and potato & gravy. All of the ingredients areof the highest quality and freshness. To ensure this, the company sets rigorous standards forproduct uniformity and quality, which must be met by all suppliers.

BCG Matrix of KFC



INTRODUCING chocolate BROWNIES

Right now there is no dessert in KFC’s menu. Therefore we plan to introduce Chocolate

Brownies for chocolate lovers. We expect to catch the interest of a regular loyal customer basewith its vast selection of brownies, including not-so-traditional flavors.

We will focus on…

· Providing the highest quality product.

· Competitive pricing.

· New ideas and flavors.

· Local markets, with a special focus on coffee shopand bakery customers.

We will sell chocolate brownies coupled with exceptional customer service in a warmatmosphere. Customers can dine-in and enjoy a warm or cold beverage to complement theirbrownie. Toppings will also be available when customers dine in for children, as well as theyoung at heart. We will also offer carry-out so customers can enjoy the treats at their ownconvenience.



Market Segmentation

Our market is divided into four different psychographics: Comfort Creatures, Celebrators andSoccer Moms. They represent groups of people sharing similar behavior patterns and reasons forfrequenting KFC to get the brownies delight.

Comfort Creatures are mainly the more successful of workers who are driven by status andprestige yet miss homemade comfort foods of their childhood. They may stop in on their own orbring clients in for a brownie experience.

Celebrators fit into the vast category of people celebrating special occasions. Birthday,anniversary, graduation, valentine's day, etc., families and loved ones will gather at KFC and willenjoy our chocolate brownies for a fun, tasty, and festive atmosphere.

Soccer Moms is the title given to the moms who remain busy in usual home work and find littletime for fun. KFC is a gathering place where families are welcome and feel comfortable.

"Moms" can come in for after school treats with their children and. Or they can meet up withfriends for a fun day out - a little civilized time stolen in the midst of a busy day.

Target Market Segment Strategy

We have specifically targeted segments of people with an appreciation for delicious desserts anda need for comfort and relaxation. KFC is a haven for the busy & successful who want to treatthemselves to something soothing and a little sinful! It doesn't take a lot of time, yet is sorewarding.

These people will value the high quality product presented. Our customers will also appreciate

the fun and fast service - whether celebrating a birthday or stopping in for a break betweenshopping.

Competition and Buying Patterns

Although we are opening up a new product, there is no doubt that we are competing with avariety of similar businesses. We need to compete against the ideas that dessert is something thatonly follows a special dinner and needn't be any better than a frozen cake. We want every day tobe a reason to celebrate. And being able to have a vast array of options for your favoritechocolaty treat is an idea that appeals to everyone.

The comfort factor plays an important role in consumer decisions about sweets. Both theatmosphere and staff of KFC excels at warm & friendly. At the same time, the menu will reflectfamiliar favorites such as chocolate chunk or turtles, while there will be flavors for the moreadventurous as well, such as pistachio brownies. We will use the highest quality product;sometimes paring the ordinary with the exotic, but we will always present our brownies in astylish and aesthically pleasing, but still unintimidating manner.

Marketing Strategy



Our marketing strategy will be education of the consumer and subsequent word of mouth.Customers will be reached through neighborhood advertising, special promotions, and mostimportantly, word of mouth.

Location also plays a crucial role in marketing and promotion. KFC is located in high-traffic

retail area. This area offers many incentives to business operating there because of the high-endreputation and affluent residents nearby. Also, the area is popular amongst tourists who come tosee Multan’s cantonment area, cantonment garden and lake which is not so far, which will be

most beneficial.

We will target progressive and generally well-educated and affluent consumers who areinterested in high quality brownies experience and are dissatisfied with the limited selection andlack of personal service found in grocery store bakeries and neighborhood cafes and coffeeshops.

PRICING OF OUR BROWNIES

Manufacturing Cost Rs. 755% Marketing Cost Rs. 4Total Cost Rs. 7915% G.S.T +15% RETAIL MARGIN Rs. 20Total retail Price Rs. 99

We are sure that our delicious chocolate brownies will attract the ultimate chocolate lovers andfulfill their choco-delight. Our affordable price makes it possible for children and youngsters toenjoy aesthically pleasing brownies with high satisfaction and fun.

PROMOTION

In 1991, the Kentucky Fried Chicken logo was changed to KFC in an effort to decrease emphasison the “Fried” element of their chicken (Krug, 1996).

In 1993, KFC implemented new “Neighborhood Program” targeting company owned restaurants

in designated areas to offer ethnic menu items relative to the demographics of those specificareas. Houston, Dallas, Los Angeles, St. Louis, New York, Chicago, Philadephia, andWashington, D.C., offered side dishes to appeal exclusively to the black communities in this promotional effort. They also promoted the “Neighborhood Program” at these locations by

wearing African inspired uniforms (Krug, 1996). In Miami, KFC tested 13 Hispanic-oriented

restaurants by offering side dishes consisting of Mexican food items. These promotional effortsincreased sales from 5-30 percent in the testing areas (Krug, 1996).

In June 1996, KFC decided to bring back the “Bucket”. The bucket had been removed from their

outlets in efforts to reduce costs. The cost of bringing back the bucket is approximately $2million.



However, the projected sales are approximately 30 million buckets through June 1997. A 1988study by Arizona State University revealed the following “the Colonel’s mug (or face) and the

KFC bucket were two of the three most-recognized symbols in the United States” (“Birth”

1997).

In December 1996, KFC promoted their KFC Mix & Match bucket using the dog “Moose” fromthe Frazier television show. This particular advertisement was aimed at football fans during thebowl season, and continued to air through Super Bowl Sunday.

KFC’s latest promotional efforts are centered on their honey BBQ Tender Roast Chicken.Celebrities included in their efforts were based on a survey of 1,815 randomly selected people,age 18 and over (KFC 1997).

ADVERTISEMENT STRATEGY

Floating Trucks:

KFC Pakistan adopts a very interesting way of advertisement as for as their business asconcerned that is Floating Truck. When KFC Pakistan’s Restaurant Support Center introduces a

new product in Pakistan they adopt this way and there Floating Trucks travel through out the cityat where they have KFC stores. Generally it is a very effective way of advertisement throughwhich maximum of their customers are able to know about their new products that theyintroduced.

In House Publicity:

KFC Pakistan has another way to advertise their business is in house publicity in which they usebanners, electronic boards, broachers, etc to tell their customers about packages, prices,

product’s detail, new products and all other information that customers want.

By Phone:

KFC Pakistan stays in Touch with their potential customers by using their database. Theyinformed their potential customers about the new products and packages by phone because theyhave their phone numbers in there database.

Print & Electronic Media:

Internationally KFC advertise their products through electronic media also they use world’s

famous T.V channels, news papers, magazines, etc.

Internet:

All most all the KFC’s well developed franchises have their own websites through which they

advertise their business very well, but they also use other websites for advertising purposes likehotmail, yahoo, google, etc.



E-mail marketing techniques are used by KFC to promote their business. They use their owndatabase to send e-mails to their value added customers to informed them about new products,packages, discounts, etc and uses third parties to promote their business through e-mailmarketing.

Media Coverage:

KFC Pakistan also uses common ways for advertising like news papers, cable TV networks, abig road side boards, etc.

In focus:

In focus is a single page monthly news paper published by KFC Pakistan which has one side inEnglish and other in Urdu and available in KFC lobbies. It is for advertising and informationpurposes.

Price:

“Prices of KFC products all over the world are almost same but slight difference in currencyexchange rates,” manager Sameer Gohar said. In Pakistan although average people are not affordKFC prices, the potential customers of KFC gave a satisfied sale at all KFC stores.

COMPETITORS

Worldwide KFC’s major competitors McDonalds, but there are no direct competitors of KFC in

Multan but there are some indirect competitors like Lasani Fried Chicken (LFC).

K&N’s VALUE CHICKEN PLANT

The main suppliers company is K&N’s. Their slogan is The Chicken praised at KFC is raised atK&N’s.

When the chicken business for the KFC people became overloaded and they wanted to maintainthe quality of their chicken so the Artal group set up a plant producing quality chicken called. K& N value chicken in Raiwand by the name of Artal International plant. Since they have beenproducing good chicken catering to the demands of all the best quality restaurants in Pakistan.

FOOD SAFETY

KFC French fries CompositionPotatoes, Tran’s fat free oil dextrose.

Seasonings Original Recipe:

Salt, herbs and spices, garlic powder.



Milk and Egg:

Non fat milk, dried whey and dried egg whites.Hot and Spicy:

COM starch, sodium bicarbonate, sodium, aluminum phosphate, Dextrose, modified cornstarch,extractives of turmeric.SHORTENING:

Pure vegetable oil (soybean).CHICKEN AND ITS PRODUCTS Locally produced and processed chicken, Supplied in frozen form.100% Halal.

KFC NUTRITIONAL INFORMATION

Serving size Calories Total fat Cholesteerol CHO Protein Origional Recipe-Wing 47(g) 145(g) 9(g) 60(mg) 5(g) 11(g)

Origional Recipe-Breast 161(g) 370(g 19(g) 145(mg) 11(g) 40(g)

Original Recipe-Drumstick 59(g) 140(g) 8(g) 75(mg) 4(g) 14(g)

Original Recipe-Thigh 126(g) 360(g) 25(g) 165(g) 12(g) 22(g)

Hot & Spicy-Wing 53(g) 180(g) 11(g) 60(g) 9(g) 11(g)

Hot & Spicy-Breast 179(g) 450(g) 27(g) 130(mg) 20(g) 33(g)

Hot & Spicy-Drumstick 60(g) 140(g) 9(g) 65(mg) 4(g) 13(g)

Hot & Spicy-Thigh 128(g) 390(g) 28(g) 125(mg) 14(g) 22(g)

Original Recipe-Fillet 206(g) 450(g) 27(g) 60(mg) 22(g) 29(g)

Zinger Burger 246(g) 640(g) 40(g) 405(mg) 38(g) 32(g)Hot Wings 144(g) 460(g) 30(g) 125(mg) 22(g) 25(g)

Corn on the Cob 3" 82(g) 90(g) 0.5(g) 0(mg) 19(g) 2(g)

French Fries 100(g) 136(g) 3.7(g) 1(mg) 23.3(g) 2.3(g)

DELIVERY METHODS

Self Service

KFC stores offer self service to sell their products means customers go at counter and purchaseproducts pay for it, no involvement of waiters and if customers want to eat at KFC store they sit

at lobbies one for common people other for only families otherwise.

Home delivery

It is a way of buying KFC products without going at KFC stores. All KFC stores in Pakistanoffer Free Home Delivery service within just 30 minutes. Orders are received at KFC stores onlythrough telephone. They want only address at which their team members supply that order andhe received a payment for that product.



Take away

Take away process means customer buy KFC products from counter pay for it and go away, itmeans he didn’t want to sit in KFC lobby to eat. It is possible that customers who use TakeAway method of buying KFC products are enjoying KFC products at other places like home or

picnic spots.

At store

Most of the KFC buyers want to eat KFC products in lobbies of KFC stores because a veryentertaining atmosphere is provided by the KFC management in lobbies especially for children.

Drive Thru

Drive Thru is the method of buying products used at almost all KFC stores in Pakistan. In itwhen customer is in vehicle like cars, jeep, bike, etc go at KFC store and purchase without

coming out of his vehicle, he drive up to drive thru counter pay for product and at next countercollect his product and go away. It is the facility in which customer is able to buy productwithout spending too much time at store.

Catering

Catering is a process in which KFC team cook and serve their products at a place where u wantlike at house, office, etc. for example some people wants to give to eat to their guest a KFCproducts at his marriage or birthday function he can do this very well by using a special facilityoffered by all KFC stores in Pakistan.

PAYMENT METHODS

Cash

It is the most popular and widely used method of payment when we are going to sell or buysomething, Irrespective of its some drawbacks such as security risks, its bulky volume, and timeconsuming counting process.

At all KFC stores in Pakistan Cash is the main and normally used method of payment whencustomers buying products at KFC stores.

Credit Cards

Almost all the stores of KFC Pakistan accept almost all types of credit cards such as Master,Visa, etc. as for as KFC Multan as concerned they start accepting Credit Cards within 2 or 3weeks, “Restaurant Manager” said.

Debit cards



All the stores of KFC Pakistan accept debit cards and they made quick transaction by their accessmachine which is directly linked with respective banks such as Muslim Commercial Bank,United Bank Limited, Habib Bank Limited, Meezan Bank, ABN AMRO Bank, etc.

Customer Interaction

All the KFC stores have very good customer interaction with their customers because they knowthe worldwide accepted rule of B2C type of business that is

“Customer is the King”

So that’s why they regularly get a feedback from the customer and remain be in touch with their

potential customers also.

All KFC stores are very efficient in sense of getting feedback from the customers they useComment Cards to get feedback about their product and services and also an information about

the customers that they use later to be in touch with their potential customers. By usingComment Cards all the KFC stores collect information about the customers and maintain adatabase using all the information. They compile that Comment Cards very carefully and collectthe information about the good and bad sides of their stores, point out them and send thatinformation to Head Office Karachi and higher management take decisions on the behalf of thatinformation collected by using Comment Cards for the betterment of KFC Pakistan.

PEST ANALYSIS

Political Factors

Due to political stability in Pakistan, these days all businesses are flourishing and same isthe case with KFC.

As there are huger chances of investment these days, so KFC is following GROWTHSTRATEGY all over the country and targeting 50 outlets in Pakistan, also searchingplace for another KFC outlet in Multan.

But some areas like Peshawar has political unrest due to MMA and their policies areaffecting KFC being an American organization.

Economical Factors

Socio-economic trends are mostly encouraging with increases in disposable income,

more working women, increase in hoteling and increases in tourism all positive signs forthe catering market. There are also catering sectors, such as restaurants and takeaway food, which are now a

part of the regular eating habits of a majority of adults. The increasing purchasing power of people is affecting KFC sales positively. Taxes are regularly paid In summer KFC has more sales than in other season because KFC provides a good

chilled environment and Zenzibar like restaurants charge for air conditioners.



Social Factors

In Pakistan KFC is playing a very active role for education sector. It has invested muchfor inauguration of schools in different areas of Pakistan e.g in Karachi it as made aschool for disabled children.

Also throughout Pakistan it is funding for libraries.

Donating much to NGO’s for less fortunate people.

At the start of KFC in Multan a mega function with meal was given to SOS kids. Chicky Fund Raising i.e getting second handed books etc. from different schools and

distributing them among less fortunate students is also done through different campaigns. For the most recent incident of Tsunami KFC arranged concerts in Karachi in which

singers like Ali Zafar, Hadiqa, Haroon etc. were invited and all the amount collectedfrom such type of concerts was donated to Tsunami victims.

Major events are special focus of KFC e.g Mother’s day, Father’s day,Valentines’s day,

Eid days etc. and they offer different packages too. Self Service:

Cupola Cares Foundation

Cupola Cares Foundation is a non-profit, registered organization and a charitable wing of Cupola. We aim to help the underprivileged children by giving them quality education therebymaking an attempt to raise the literacy rate of Pakistan which is externally low by worldstandards characterized by low enrolment in primary and secondary school, high drop out ratesand an over all poor quality of education. Cupola realizes the need for education and intends tobuild this need at the grass root level. Our vision is supported by prominent personality of thecountry who are also amongst the board of directors of the foundation:

· Prof. Danishmand, Dean & Director IBA

· Mr. Saifuddin Zoomkawala, Chairman EFU

· Mr. Tariq Kirmani, Chairman PIA

· Syed Salahuddin Hyder, C.E.O. Century 21

· Mr. Waqar H Siddique, Executive Director Abraaj capital

· Mr. Rafiq Rangoonwala, C.E.O. Cupola Pakistan

These are individuals belonging to different corporate sectors and are already engaged in variousforms of community support services and welfare activities.

Technological Factors

KFC is going to adopt the delivery system of Pizza Hut. Buying new equipments.



The latest tech acquired is always get approved by government. KFC new UAN no. is 111-532-532 Each and every equipment is licensed. KFC Tri-state Management uses Linux. KFC Pakistan plan to become online, because the usage of internet and credit cards

increases. So people using internet can buy KFC products online, because it is a verycheap and effective way of buy products Department of information technology of KFCPakistan is working on it and in future hopefully KFC stores become online.

Internal Communication

Internally all the KFC Pakistan stores communicate regularly for the betterment of organization.KFC Pakistan has a Paper Less environment in the organization. They use Telephone and E-mailfacilities to remain in contact with their Head Office Karachi to plan strategies, share ideas andget instruction to maintain and improve the business because these two ways of communicationare very fast an very cheap as for as e-mail as concerned, they have no traditional way to

communicate like time consuming traditional mail system.

PoS system:

POS (point of sale) is the physical location at which goods are sold to customers. A point-of-sale(POS) software terminal is a computer replacement for a cash register. More sophisticated thantraditional cash registers, a POS (point of sale) software system includes the ability to track customer orders, process credit cards, and manage inventory.

At all KFC stores in Pakistan PAR Technology Corporation’s Point of Sale system is used

including both software and hardware.

PAR provide the tools that KFC Pakistan need to increase order accuracy, improve speed-of-service and raise customer satisfaction levels with software solutions that can span the entireenterprise - from the front counter to the back office and beyond to integrate the totalorganization.

PAR uses reliable Dell® hardware to run its Back Office Computer to unleash the power of business.

Transaction Record

KFC Pakistan uses a complete package of Point of Sale system to keep record of everytransaction occur. All KFC Pakistan stores nationwide use PoS and at the closing time of thestore they send a complete transactional record of that day by using PoS through internet.Because of this head office maintain their accounts very well and take quick decision on thebehalf of these records.

http://www.partech.com/PTI/rest-hwbackoff.cfm






SWOT ANALYSIS

STRENGHTS

· Quality of products.

· Leader in almost every market.

· Finger licking taste as the other international fast food restaurants in Pakistan doesn’t have that

kind of speciality in Fried Chickens.

WEAKNESSES

· There is some weakness in the field of KFC menu as it serves only chicken related products butits competitors like pizza hut and Mc Donald’s offer vegetable and cow meat based food also.

· Due to huge expansion by growth strategy there is much pressure on management departmentin terms of HRM etc.

OPPORTUNITIES

· KFC plays an important role in increasing employment rate of a country as it hires personsfrom local place to fill its staff. So this gains public attention and generates good will of theorganization.

· Financially KFC is going very stable and sound organization so still it has much opportunity of opening new outlets in different areas of Pakistan and the rest of the world by reinvesting its

profits.

THREATS

· Prosperity of KFC with in a given region depends upon its economic condition of the countryso if some thing bad happens to it, it can be troublesome for KFC.

· KFC recipe is still a secret, and if some one gets this secret then this can play havoc with thisorganization.

· American invasion into tribal areas of Pakistan is also a threat for KFC, due to arousal of anti-

American sentiments it can lead towards rejection of KFC.

CONCLUSION

On the whole KFC is the name of trust for the customers because there is no compromise on thequality of the food. KFC fully concentrate on the quality of food that’s why it is the hall mark of

excellence among the customers. The supplier of KFC is K&N’s Foods (Pvt) Ltd. They have

good and fully furnished places for Chicks to grow and finally to provide there valued customers.



By following such practices, KFC is providing a just and equitable environment for work andthrough its diversity programs, giving back to the community at various levels. Doing businessinternationally means taking stock of the local population and molding your menus and work practices to suit local tastes, laws and regulations.

The best maxim here is:

Think Globally, Act Locally.

RECOMMENDATIONS

· The HR department of KFC is definitely doing its job well as according to Kufahl & Agoglia(2003), the company has the lowest turnover rate in the fast food industry. However, when acompany reaches the pinnacle of success with regards to any aspect, it has to try even harder tostay there and maintain its position. Hence, KFC should try to keep up the good work andmaintain the level of commendable workforce development practices.

· KFC is American firm so it can face sensitivity in this case. Because of rude American attitudetowards Muslims countries, people “can” reject them.

· They should start some activities that help them in turning their anti-Islamic image in the mindsof their target customers.

· The website of KFC is not well developed so sophisticated information and well designed datais not available on the net, as mentioned above the I.T. department of KFC Pakistan has a closelook on this area so it is good sign for the internet users to buy online and get information theyneed.

· Music selection is good but usually they keep music volume so high that it starts interruptingentertainment. They also do not change music on customer choice.

· Counter service system is acceptable in USA but not in Europe and Asia. In Multan, KFC standas trend setter (due to no competition) so this factor does not do any harm to their profit but it isdisliked by 5% people.

· Their pricing strategy is out of vision. They charge Rs.105, Rs.135 etc figures. It is a blunderfrom the side of marketer that if customer is willing to pay or can pay more and marketer ischarging them less. So they are blowing high % of revenue in air just because of fake pricing

strategy.

· As KFC stands in STAR position in portfolio matrix so they should adopt stability strategy atleast for some period of time but still they are adopting further growth strategy and increasingtheir level of operations so the same case can happen with KFC which happened to MCDonald’s.



REFERENCES

ü Shirley Levers - Customer Relationship Executive, KFC, Multan

Web Links:

ü www.kfc.com

ü www.kfcpakistan.com

ü www.yum.com

ü www.marketingmaniacs.com

ü www.google.com

ü www.yahoo.com

ü www.pepsiworld.com

ü www.enquirer.com/editions/2002/08/21/tem_kfc_great_american.html

ü findarticles.com/p/articles/mi_m3190/is_n8_v25/ai_10403447

ü www.buzzle.com/editorials/4-30-2005-69337.asp

ü vmsd.com/content/kentucky-fried-chicken-0

ü www.roadsideamerica.com/story/7021

ü www.kfc.co.uk/our-menu/toasted-twister/toasted-salsa-twister/

ü www.webmd.com/diet/news/20061030/kfc-to-fry-chicken-without-trans-fats

ü web.archive.org/web/20061224114447/http://www.kfc.com/about/pressreleases/111406.asp

ü www.foxnews.com/story/0,2933,229308,00.html

ü www.kfc.co.uk/about-kfc

ünews.bbc.co.uk/mobile/bbc_news/england/nwyl/north/north_yorkshire/664/66418/story6641819.shtml?l

ü www.cnn.com/2003/BUSINESS/10/17/anderson.kfc/index.html

http://www.kfc.com/

http://www.kfc.com/

http://www.kfc.com/

http://www.kfcpakistan.com/



http://www.google.com/



http://www.yahoo.com/



http://www.pepsiworld.com/



http://www.enquirer.com/editions/2002/08/21/tem_kfc_great_american.html



http://findarticles.com/p/articles/mi_m3190/is_n8_v25/ai_10403447



http://vmsd.com/content/kentucky-fried-chicken-0



http://www.roadsideamerica.com/story/7021



http://www.kfc.co.uk/our-menu/toasted-twister/toasted-salsa-twister/



http://www.webmd.com/diet/news/20061030/kfc-to-fry-chicken-without-trans-fats



http://web.archive.org/web/20061224114447/http:/www.kfc.com/about/pressreleases/111406.asp



http://www.foxnews.com/story/0,2933,229308,00.html



http://www.kfc.co.uk/about-kfc



http://www.cnn.com/2003/BUSINESS/10/17/anderson.kfc/index.html

















http://www.kfc.com/



ü www.kentuckyfriedcruelty.com/u-undercover.asp

ü www.guardian.co.uk/news/2005/oct/28/food.lifeandhealth

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