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page 24/16/2012 Presentation

$105 to a $13 Billion Brand: KFC

The worlds most popular chicken restaurant chain was

founded in Kentucky, Louisville state of US.

Col. Sanders started franchising his recipe door to door

financed by $105.00

Sold his interest to Massey & Brown for $2 million

More than 11,000 outlets spanning 85 countries and

territories around the world.

Currently KFC is owned by Yum Brands, Inc. which is the

world's largest restaurant company in terms of system

units with nearly 32,500 in more than 100 countries and

territories.

Foundedby

Colonel

Harland

Sanders

in 1952


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KFC is a franchisee.

The franchisee process is asfollows:Step 1 :- QUALIFICATION 2-3 WEEKS.

Step 2 :- OPERATION INTERVIEW 3-5WEEKS.

Step 3 :- DISCOVERY DAY/APPROVAL3 WEEKS.

Step 4 :- SITE STRATEGYEXPLORATION 8-10 WEEKS.

Step 5 :- SECURING SITE CONTROL 2-

16 WEEKS.


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KFCs entry in India:

KFC entered India in 1995 and has been in midst ofcontroversies since then.

KFC opened its first fast-food outlet in Bangalore in June1995

Though the contribution from Indian market to the totalKFC turnover is a miniscule amount, they rate India as thenumber one player potential wise.

Currently KFC is enjoying a year-on-year growth of 100percent.


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Cultural factors in India that went against KFC:

Believed to be expensive .. no value for money.

Wanted to position itself as a family restaurant , notas a teenage hangout.

Ambience was missing.

Perceived differences in eating habits.

Tried to target the vegetarian segment. However thisbackfired as in India having veg food cooked in a nonvegetarian kitchen doesnt come out well with the

vegetarian segment.


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Cultural factors contributing to KFCS success in India:

Reducing the psychic distance by handling over of

operations to local people so that customers couldrelate to them more easily.

Able to adapt to cultural differences, tastes andpreferences. For example keeping in mind the Indiantastes buds KFC launched a fierier ZINGER

BURGER. Price sensitivity of the two economies drove KFC to

introduce menus that were easy on the consumers

pocket.


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Leading food service retailer with more than 31000local restaurants serving more than 58 million

people in 118 countries each day.

Favorites-World Famous Fries, Big Mac, Quarter

Pounder, Chicken McNuggets and

Egg McMuffin.

Brand mission : Be our customer favorite place

and way to eat.

MCDONALDS


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Mc Donald's in India.

McDonalds entered India in 1996.

McDonalds India has a joint venture with

Connaught Plaza Restaurants and Hard Castle

Restaurants.

Connaught Plaza Restaurants manages

operations in North India whereas Hard Castle

Restaurants operates restaurants in Western

India.

Today it has 169 Restaurants across India.


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BUSINESS MODELCONTD.

Franchise Model Only 15% of the total

number of restaurants are owned by theCompany. The remaining 85% is operated by

franchises. Product Consistency By developing a

sophisticated supplier networked operationand distribution system, the company has

been able to achieve consistent product taste

and quality across geographies


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BUSINESS MODELCONTD.

Act like a retailer and think like a brand

McDonalds focuses not only on delivering

sales for the immediate present, but also

protecting its long term brand reputation.


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CONCLUSION

In India fast food market is strongly dominated bythese 2 brands. But when it comes to comparingthese two brands the following study brings us toa conclusion that as far as market presence and

brand value is concerned McDonald's hasdefinitely proved a point for themselves. But KFCwho re entered in 2003 has shown a rapidprogress and no wonder if in the coming years

KFC overtakes McDonalds in the Indian marketshare. Time will be the evidence for this, but fornow its Ronald McDonald who is sitting highatop compared to the Colonel.


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