ACKNOWLEDGEMENT

With profound sense of gratitude and regard, I express mysincere thanks to my guide and mentorMr.Shan, forhis valuable guidance and the confidence he instilled in me,that helped me in the successful completion of this projectreport. Without his help, this project would have been adistant affair.His thorough understanding of the subject and professionalguidance was indeed of immense help to me.Also, this acknowledgement would remain incompletewithout thanking the staff of KFC.I am also greatly thankful to the faculty members of ourinstitute who co-operated with me and gave me theirvaluable time

Goals of KFC

Build an organization dedicated to excellence. Consistently deliver superior quality and value in our products andservices. Maintain a commitment to innovation for continuous improvementand grow, striving

always to be the leader in the market placechanges. Generate consistently superior financial returns and benefits our owner and employees.

To establish in India our position as leading WQSR (Western Quick ServiceRestaurant) chain, serving good value. Innovative chicken-based products.Consistently, providing a pleasant dining experience, with fast friendly, in a clean and convenient location. At all times we must be dedicated to providing excellent and delighting customers

Introduction of Company

KFC Corporation, based in Louisville, Kentucky, is the world’s most popular chicken restaurant chain, specializing in Original Recipe, Extra Crispy TM, and Colonel’s Crispy Strips chicken with home style sides andfive new freshly made sandwiches. Every day, nearly eight millioncustomers are served around the world. KFC’s menu everywhere includesOriginal Recipe chicken—made with the same great taste Colonel HarlandSanders created more than a half-century ago. Customers around the globealso enjoy more than 300 other products—from a Chunky Chicken Pot Piein the United States to a salmon sandwich in Japan.KFC continues reaching out to customers with home delivery in more than300 restaurants in the United States and several other countries. And in quitea few U.S. cities, KFC is teaming up with other restaurants, Taco Bell andPizza Hut, selling nearly fifty years ago; Colonel Sanders invented what isnow called “home meal replacement” – selling complete meals to harried,time-strapped families. He called it, “Sunday Dinner, Seven Days a Week.”Today, the Colonel’s spirit and heritage are reflected in KFC’s brandidentity – the logo features Colonel Harland Sanders, one of the best-recognized icons in the world.

KFC specialized in chicken and they says,

“No body’s cooking like KFC today and we arethe chicken experts”

“There is no competitor for spicy chicken which is made by KFC”

Company overview:

Colonel Harland sanders, born September 9, 1890, actively beganfranchising his chicken business at the age of 65. Now, the Kentucky friedchicken business he started has grown to be one of the largest retail foodservice systems in the world. And colonel sanders, a quick service restaurant pioneer, have become a symbol of entrepreneurial spirit. More than two billion of the colonel’s “finger lickin’ good” chicken dinners are servedannually. And not just in America. The colonel’s cooking is available inmore then 82 countries around the world.When the colonel was six, his father died. His mother was forced to go towork, and young Harland had to take care of his three year old brother andbaby sister. This meant doing much of the family cooking. By the age of seven, he was a master of a score of regional dishes. Ate age 10, his first jobworking on a nearby farm for $2 a month.

When he was 12, his mother remarried and he left his home near Henryville, Ind., for a job on a farm inGreenwood, Ind. He held a series of jobs over the next few years, first as a15-year-old streetcar conductor in New Albany, Ind., and then as a 16-year-old private, soldiering for six months in Cuba. After that he was a railroadfireman, studied law by correspondence, practiced in justice of the peacecourt, sold insurance, operated an Ohio River steamboat ferry, sold tires, andOperated service station. When he was 40, the colonel began cooking for hungry travelers who stopped at his service station in Corbin, KY. He didn’thave a restaurant then, but served folks on his own dining table in the livingquarters of his service station. As more people started coming just for food,he moved across the street to a motel and restaurant that seated 142 people.Over the next nine year, he perfected his secret blend of 11 herbs and spicesand the basic cooking technique that is still used today.

KFC India

KFC is the world’s No.1 Chicken QSR and has industry leadingstature across many countries like UK, Australia, South Africa,China,USA, Malaysia and many more.KFC is the largest brand of Yum Restaurants, a company that ownsother leading brands like Pizza Hut, Taco Bell, A&W and LongJohn Silver. Renowned worldwide for it’s finger licking goodfood, KFC offers its signature products in India too! KFC hasintroduced many offerings for its growing customer base in Indiawhile staying rooted in the taste legacy of Colonel HarlandSander’s secret recipe. Its signature dishes include the “crispyoutside, juicy inside” Hot and Crispy Chicken, flavorful and juicyOriginal Recipe chicken, the spicy, juicy & crunchy Zinger Burger,Toasted Twister, Chicken Bucket and a host of beverages anddesserts. For the vegetarians in India, KFC also has great tastingvegetarian offerings that include the Veggie Burger, Veggie Snacker and Veg Rice meals. In India, KFC is growing rapidly andtoday has presence in 11 cities with close to 50 restaurants.

Values of KFC

Focus all our resources to our restaurants operation because that iswhere we serve our customers.

Reward and respect the contributions of each individual at KFC. Expand and update training with time and be the best we can be andmore. Be open, honest and direct in our dealings with one and other. Commit ourselves to the highest standard to the personal and professional integrity at all

times. Encourage new and innovative ideas because these are the key to our competitive growth. Reward result and not simple efforts. Dedicate ourselves to continuous growth in sales, profit and size of organization. Work as a team

Current ProductsKentucky

fried chicken Zinger burger  Twister  Chicken Bucket Fries Snacker Soft Drink  Coleslaw Snack Box Sundae Soft Twirl Brownie Sundae

KFC Original Recipe

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 mediumheat to the shortening reaches 400F. In a small bowl, combine theegg and milk. In a separate bowl, combine the remaining six dryingredients. Dip each piece of chicken into the milk until fullymoistened. Roll the moistened chicken in the flour mixture untilwell coated. In groups of four or five, drop the covered chicken pieces into the shortening and lock the lid. When pressure buildsup cook for 10 minutes.

MARKETING

Since 1982, KFC’s “All-American salute to Mothers”national card contest has been KFC’s way of honoringmoms and their families for making mother’s DayKFC’s biggest sales day of the year. The contestencourages children to creatively express theirfeelings for their moms by making a homemade cardand give them chance to compete for more than$10,000 in cash and prizes. Educational packets,including language, history and art exerciseshighlighting Mother’s Day, were sent to thousands of schools nationwide.

There are 4 P’s of Marketing:

PRODUCT PRICE

PROMOTION PLACE

Product: Basically the product is anything that be offered to a market forattention, acquisition, use, or consumption that might satisfy a want orneed. KFC is specially dealing in the chicken products; Basically, KFChas the special raspy for chicken products that is why, KFC known as achicken specialist allover the glob. KFC target the Asia and east sidebecause they observe that they people are like the chicken products,so they enter in the market due to the demand of their chickenproducts. KFC product variety of product in the chicken, those products are:

PRODUCTS: Original recipe® chicken Chicken pieces Kentucky Nuggest® Colonel’s Crunch ®Zinger

BRAND:

There are three brands of the KFC:

1)Taco bell

2)Pizza Hut

3)Long john silvers

Price:KFC during pricing their products keep the different points in the mindlike they adopt the cost base price strategy. Pricing of the productincludes the Government taxes and excise duties and then they comeat final stage of determine the price of their products. KFC prices of products are a bit high according to the market segment and it is alsocompatible to the stander of their products.

Calculation of the price under Cost Based Pricing Strategy:Total Pounds of Chicken Served in KFC Restaurant Annually=1.914 BillionTotal KFC Chicken Pieces Sold Annually= 5.89 BillionTotal Retail Sales= $8.9 BillionSales Price of per Chicken Piece= Total Retail Sales / ChickenPieces sold= $8.9 Billion / $5.89 Billion=$1.51We assume that Fixed Cost is = $6000000000Variable Cost= $675000000Profit Marginis Or Mark Up= $225000000(25% of Sales)Per Unit Variable Cost= $675000000 / 5890000000= $ 0.115

Unit Cost

= Variable Cost + Fixed Cost / Chicken pieces Sold= 0.115 + 6000000000 / 5890000000= 0.115 + 1.02= $1.135Now suppose manufacturer wants to earn 25% mark up on sale. The manufacturer mark up price is calculated:Mark Up Price= Unit Cost / (1 – Desired Return on Sales)=1.135 / (1-.25)= 1.135 / 0.75= $1.51

Promotion: Promotion is one of the necessary plates in any form of business or inother words you can say that promotion is the key of success. If youpromote your product at the right time. KFC also known theimportance and significance of promotion so they uses the bill boardsthe major source of advertisement and one of the most important thing that they uses media especially the newspapers to promote their products. They are also creating awareness among the masses abouttheir existing product range as well they tell us about the future product.

Marketing efforts to be taken by the restaurant:

Paste delivery posters at petrol pumps, flats, colleges, plazas, and departmental stores. Distribution of delivery flyers in residential areas, markets, plaza sand institutions (as per

the plan) Visit offices and business places.

Place:

In the case of the KFC the placement of the product is not importantbut the placement of the restaurant is important. The products of theKFC is cooked at the sport and then served after that. KFC Cavalrybranch opened in June 1998, in the main commercial zone of Cavalry Grounds near the Jinnah Flyover. The restaurant is a three-storybuilding including the basement (where the chicky play area islocated). It is ideally located in the center of a main commercial andresidential area of Lahore. The area that KFC Cavalry caters for is theresidential and office area of Cavalry Grounds and Cantt, as the maintarget market. Another branch the KFC opened in the Lahore is in Garden Town (opposite to Barkat Market). KFC also target theFaisalabad and open its branch in D ground. Now we can easily judgethat the KFC target the place for their restaurant, which is well know nand is in the Porsche area where the income level of the people is high then the middle class level. Because the prices of the KFC products ishigh with comparison to the local products manufacturer who are dealing in the same kind of product in which KFC is dealing but the prices of the KFC is high due to special taste, high quality, and due tointernational brand, it is the world recognized fast food restaurant all around the world. So, for the placing strategy, KFC chose the well income class area for their restaurants.

Promotion IssuesFor the sales pormotion KFC introduced their goods like watches , keychain,e.t.c to the customers.

MARKETING STRATEGIES OF KFC

There are different strategies adopted by KFC for different events.They market their products on different events and in differentactivities as they are helping SOS village.According to KFC, kids become the future permanents customersand we know very well that without any marketing strategy nomarketing program and no product is successful because wedepend upon customers, customer not depend on us.

KFC is following Niche Marketing and Societal Marketingtechniques. KFC possess a western culture because some of the Indian people are also following that

culture. KFC are moving from Divisional Level to the District level by opening branches KFC also offer free home delivery. KFC open their outlets on reachable places. KFC menu consists of more than 30 products. KFC gives more priority to Family

Strengths Weaknesses

Second best global brand in fast food industry in terms of

value ($ 6 billion)

Original 11 herbs and spices recipe

Strong position in emerging China

Combination of KFC – Pizza Hut and KFC – Taco Bell

KFC is the market leader in the world among companies

featuring chicken as their primary product offering

Untrustworthy suppliers

Negative publicity

Unhealthy food menu

High employee turnover

Lack of strong marketing efforts

KFC SWOT analysis

.

Opportunities Threats

Increasing demand for healthier food

Home meal delivery

Introducing new products to its only chicken range

Saturated fast food markets in the developed economies

Trend towards healthy eating

Local fast food restaurant chains

Currency fluctuations

Lawsuits against KFC

Strengths

1. Second best global brand in fast food industry in terms of value ($ 6 billion). KFC is known

by many and is a trustworthy brand in many countries mainly due to its early franchising and

international expansion.

2. Original 11 herbs and spices recipe. KFC original chicken recipe is a trade secret and a source

of comparative advantage against firm’s competitors.

3. Strong position in emerging China. KFC receives half of its revenue from China, where it

operates more than 4,000 outlets. KFC position in China is one of its main strengths as China’s

fast food market is growing steadily.

4. Combination of KFC – Pizza Hut and KFC – Taco Bell. KFC partnership with other Yum!

Brands yields some advantage as the restaurant can offer items from its partners it doesn’t have

itself and satisfy more customers’ needs.

5. KFC is the market leader in the world among companies featuring chicken as their

primary product offering. KFC has positioned itself clearly among other fast food chains

bearing its famous slogan and trademark chicken products.

Weaknesses

1. Untrustworthy suppliers. Over the years, KFC has been contracting suppliers, which supplied contaminated poultry to KFC or were mistreating chicken, thus resulting in falling sales and damaged reputation.

2. Negative publicity. KFC receives much criticism from PETA over the conditions chickens have

been raised. Furthermore, it received bad publicity for selling chicken wing with kidney. There

are many more or less bad news from KFC, which damage firm’s reputation significantly.

3. Unhealthy food menu. KFC menu is largely formed of high calorie, salt and fat meals and

drinks. Such menu offering prompts protests by organizations that fight obesity and hence,

decreases KFC popularity. Consumers also often opt out for healthier choices.

4. High employee turnover. Employment in KFC is a low paid and low skilled job. It results in

low performance and high employee turnover, which increases training costs and add to overall

costs of KFC.

Opportunities

1. Increasing demand for healthier food. While demand for healthier food increases, KFC could

introduce more healthy food choices in its menu and reverse its weakness into strength.

2. Home meal delivery. KFC could fully exploit (it test deliver services now) this opportunity and

reach more customers.

3. Introducing new products to its only chicken range. KFC could introduce new meals to its

menu and offer pork, beef or only vegetarian meals, which would target wider consumer group

and would result in more costumers.

Threats

1. Saturated fast food markets in the developed economies. The fast food market in the

developed countries is already overcrowded by so many fast food restaurant chains and this

already proves to be a threat to KFC as it finds it hard to grow in the developed economies.

2. Trend towards healthy eating. Due to government and various organizations attempts to fight

obesity, people are becoming more conscious of eating healthy food rather than what KFC has

mainly to offer in its menu.

3. Local fast food restaurant chains. Local fast food restaurants can often offer a more local

approach to serving food and menu that exactly represents local tastes. Although KFC does a

great job in adapting its own menu to local tastes, the rising number of local fast food chains and

their lower meal prices is a threat to KFC.

4. Currency fluctuations. KFC receives part of its income from foreign operations. That income

has to be converted into dollars and may affect the business' profits, especially when the dollar is

appreciating against other currencies.

5. Lawsuits against KFC. KFC has already been sued for many times and lost quite a few

lawsuits. Lawsuits are expensive as they require time and money. As KFC continues to operate

more or less the same way, there is high probability for more expensive lawsuits to come.

Sources

1. KFC (2013). About us. Available at: http://www.kfc.com/about/

2. Wikipedia (2013). KFC. Available at: http://en.wikipedia.org/wiki/KFC

3. 9WSYR (2013). Yum Brands: KFC sales will fall in China after probe. Available at:

http://www.9wsyr.com/business/story/Yum-Brands-KFC-sales-will-fall-in-China-after/bcy0s-

8mAUeqWoh6fnmpCw.cspx

4. Interbrand (2013). Best Global Brands 2012. Available at: http://www.interbrand.com/en/best-

global-brands/2012/Best-Global-Brands-2012.aspx