kfc final presentation

GROUP MEMBERS

Aditi

Calvin

Kevin D’Silva 25

Ravesh

Rohit

FLOW OF PRESENTATION

INTRODUCTION PRODUCT PRICE PROMOTION PHYSICAL EVIDENCE PLACE PEOPLE PROCESS

INTRODUCTION

ABOUT KFC

9/9/1890, Harland Sanders is born just outside Henryville, Indiana. 1930, KFC was founded by Harland Sanders . 1952, it started giving its franchisees. 1960, 190 KFC franchisees and 400 franchise units in the U.S. and Canada. 1969, the Kentucky Fried Chicken Corporation is listed on the New York

Stock Exchange. 1982, Kentucky Fried Chicken becomes a subsidiary of R.J. Reynolds

Industries, Inc. (now RJR Nabisco, Inc.). 1986, PepsiCo, Inc. acquires KFC from RJR Nabisco, Inc. 1995, KFC entered into the Indian market and it opened its first retail out

lets in Bangalore.

CULTURAL FACTORS CONTRIBUTING TO KFC’s “SUCCESS” IN INDIA

Reducing the psychic distance by handling over of operations to local people so that customers could relate to them more easily.

Able to adapt to cultural differences, tastes and preferences. For example keeping in mind the Indian tastes buds KFC launched a fierier “ZINGER BURGER”.

Got an edge since chicken is a staple dish and is taken more frequently in Asian countries.

The target customer of KFC [upper, middle and above] are health conscious and hence to cater to their interest Kentucky fried Chicken changed its name to KFC.

Price sensitivity of the two economies drove KFC to introduce menus that were easy on the consumer’s pocket.

HUMAN RESOURCE HIERARCHY IN KFC

Restaurant GM

Area manager

Assistant manager

Trainee Managers

Customer Service Team Members

Food Service Team Members

SWOT ANALYSIS

Strengths Brand equity KFC secret recipe of 11 herbs and

spices Very strong internationally Strong franchisees all over the

world Interactive relationship marketing Ranks highest among all chicken

restaurants Menu variety

Weaknesses Lack of relationship building with

the employees

Lack of focus on R & D

They focus only high income group customers

Opportunities They have opportunity to open their sweet products and also to increase the varieties in the veg food items

They can open more outlets to get maximum market share

They can open their temporary outlets at hill station during peak times

They can capture more customer by decreasing the price for their products

Threats Increasing inflation rates directly affects menu prices

Supermarkets and new competitors

Health trend away from fried foods

Changing customer demand Some international events badly

affected the market of KFC inPakistan like IRAQ and AFGHAN war.

Current political situation is a big threat for KFC

Diseases like bird flu is the big threat for KFC

OBJECTIVES OF KFC

Build an organization dedicated to excellence.

Consistently deliver superior quality and value in our products.

Maintain a commitment to innovation for continuous improvement and grow, striving always to be the leader in the market place changes.

Generate consistently superior financial returns and benefits our owner and employees

ISSUES OF KFC

EVERY CHICKEN TESTED

K & N’s state-of-the-art Quality Assurance Lab monitors the entire integration process from livestock to feed and on to preparation of ready-to-cook and cooked products.

EVERY CHICKEN CERTIFIED

K & N’s ensures food safety by implementing the international HACCP (Food Safety System) and enjoy the unique privilege of being the first and only HACCP certified company is Pakistan producing chicken andchicken products.

RECIPE OF KFC

6 cups Crisco Shortening 1 eggs well beaten 2 cups Milk 2 cups Flour 2 teaspoons ground pepper 3 tablespoons salt 1 teaspoon MSG 1/8 teaspoon Garlic Powder 1 dash paprika 2 Frying Chickens cut into 6 pieces

Place shortening into the pressure cooker and heat over medium heat to the shortening reaches 400F. In a small bowl, combine the egg and milk. In a separate bowl, combine the remaining six dry ingredients. Dip each piece of chicken into the milk until fully moistened. Roll the moistened chicken in the flour mixture until well coated. In groups of four or five, drop the covered chicken pieces into the shortening and lock the lid. When pressure builds up cook for 10 minutes.

SEGMENTATION

Demographical In demographics their first segment is consisted of the income factor i.e. high income, average income and low income.

Behavior Taste conscious Quality conscious Class conscious Combination of price and quality

Geographical Urban areas Sub urban areas

TARGET MARKET

They targeted upper middle class people in urban and semi urban areas. People are educated and they want variety in their diet. Normally people of rural areas don’t take fast food. Income of the people of urban areas is normally high and they can afford

to purchase such products, which are slightly higher in price as compared to prevailing prices of local food in the market.

People of Urban Areas are more quality conscious than the people of Rural Areas.

Population density is higher in Urban Areas as compared to Rural Areas, so the numbers of customers are more in Urban Areas.

CSR ACTIVITIES BY KFC

Lots of CRS activities done in Pakistan- Educating the young people and children Distributing toys, books and clothes to the children Jail visit along with chicky(KFC’s children mascot) Faryad – an environmental campaign

KFC’s world wide CSR activities- Colonel’s scholarship for students Animal’s welfare programs Social diversification

KFC’s CSR activities in India- KFC take the initiative of keeping hearing impaired staff at its restaurants.

PRODUCT

PRODUCTS

KFC offers its signature products in India too! KFC has introduced many offerings for its growing customer base in India while staying rooted in the taste legacy of Colonel Harland Sander’s secret recipe. Its signature dishes include the “crispy outside, juicy inside” Hot and Crispy Chicken, flavorful and juicy Original Recipe chicken, the spicy, juicy & crunchy Zinger Burger, Toasted Twister, Chicken Bucket and a host of beverages and desserts. For the vegetarians in India, KFC also has great tasting vegetarian offerings that include the Veggie Burger, Veggie Snacker and Veg Rice meals

SERVICES

KFC offered free home delivery service at specific branches in specifics cities. They take at 30 min for delivery and the minimum delivery order should Rs.200. They also provided services to celebrate the birthdays of kids at there home or in KFC restaurants. Now recently KFC also provide services of mobile unit of KFC

PRICE

PRICE

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.

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.

Bundling

PROMOTIONS

KFC ADVERTISING

Agency: O & M (2007)

Brand Ambassadors: None

Budget: 8 – 10 Cr.

Logo: Smiling Colonel

Tagline: Finger lickin good…

TELEVISION

New product ads

Reminder ads

Ads includes ads like: The Recipes Chicken bucket Scream Hot wings Date Krusher Murlidharan ad Veg zinger burger (latest)

PRINT

Newspapers (Mid – Day, Times of India, Mumbai Mirror).

Magazines

ONLINE

Website

Facebook

Twitter

OUTDOOR

Hoarding at prime locations.

POINT OF PURCHASE

SALES PROMOTION

MTV roadies

CSR Activities

Coupons

Discounts

PHYSICAL EVIDENCE

PHYSICAL EVIDENCE

PLACE

PLACE

In India, KFC is growing rapidly and today has presence in 14 cities with close to 78 restaurants.

KFC has outlets mainly in areas targeting the upper middle class segment.

It has outlets mainly in malls.

PEOPLE

PEOPLE

Yum! University - global support for the education and institutionalization of key Yum! leadership programs

Management Team Training - six to eight weeks training for key restaurant personnel

Multibrand training depends on your level of previous quick-service restaurant (QSR) experience

Graduate Recruitment Program - give Graduates broad experience across the business in real jobs, through various departments

Employment opportunities to neighborhood residents

All employees from managerial level onwards receive training in various departments including operations, billing etc

Employees empowered limited to Rs. 500

PROCESS

PROCESS

Vendors – centralized

3 Franchises operational in India

DELIVERY PROCESS

THANK YOU