Swapnali, Bhagyashree, Lokesh, Apoorva, Christine, Saurabh &

Zeeshan

KENTUCKY FRIED CHICKEN

AGENDAIntroduction about KFCKFC in BrazilKFC in JapanKFC in USAKFC in China KFC in PakistanConclusion

TARGET MARKET: BRAZIL

87% urban population

Over 50% of population is under the age of 30

Hits the key demographic for KFC

THE TARGET MARKET

Large gap between the rich and poor 26% population live below the poverty line

Obesity Rate: 11% 52nd out of 70 ranked nations in the worldGenerally a healthy nation

Consumer expenditure on food in millions2011: $ 190,598.8Expected for 2012: $ 199,582.2

THE TARGET MARKETConsumer behavior

Brazilians have good culinary sense Strong food and drink traditions

Growth in Brazilian economy Emergence of a larger middle class with higher

income per person Consumers to spend more on indulging themselves,

rather than restricting their spends to basic necessities

Brazilians are spending more on eating out Seeking convenience

FOREIGN MARKET ENTRY METHOD

100% franchised in BrazilAligned with BFFC (Brazil Fast Food Corporation)

Marketing Strategies adopted - Joined a strong franchise within the marketThey already know the Brazilian culture and

marketplaceBFFC knows the tastes and culture of the food

industry Entered in the first quarter of 2007 with 4

restaurants in Rio De Janeiro Currently there are 18 locations

5 in Sao Paulo13 in Rio De Janeiro

MAJOR MARKETING STRATEGIES

Aligned with BFFC

Balance Standardization and Localization

E-customer relationship management

Wagner RodriguesExecutive Officer of YUM! Restaurants

International in Brazil“With Brazil Fast Food’s extensive knowledge

of the Brazilian fast food market, we believe that it is the perfect company to entrust with the continued growth, development, and consolidation of the KFC brand in Brazil.”

THE MARKETING MIX

ProductPromotionPricePlace

PRODUCT STRATEGY

DescriptionGlobal leader in chicken fast food

Quality: focus on improvements Health aspects

KFC has re-launched its grilled chicken menu in the US, which is aimed at satisfying consumers' needs for health and convenience.

Brand Name: Internationally known Kentucky Fried Chicken

BrandingColors: red and white

Image: Adaption verses Standardization Doesn’t want to lose brand imageStandardizing of some products, but also tailoring to

customer’s needs

KFC PRODUCTS: MENU IN BRAZIL

Core products same as the U.S. (original, extra crispy)Unique dipping sauces to adapt to local taste

Culturally unique productsFarofa, black beans, parmiggano sandwich, I-Twist

PRICE STRATEGY

Standard of livingOptimism: Majority of citizens believe it is improving

Exchange rate: 0.52 Real = $1.00

Competitive pricingValue pricing strategy: provide the best value per

competition Par Value Pricing: pricing is based on the competition

Brazil pricing – Brazil: 20 Reals, For 6 pieces of chicken

PLACE/DISTRIBUTION Distribution

Goods direct to consumerIn storeDrive throughDelivery

Franchisees place food orders through BFFC’s procurement department

SuppliersPilgrim’s Pride, Perdue Farms, Tyson Foods Prefer to supply from within the country but use

contingency plans to ensure qualityCurrently, 18 locations in Brazil

PROMOTIONAdvertising Strategy

Brazil advertising is known for creativity and innovativeness (AEF)

Brazilians desire entertaining advertising

Most desired advertising is during soccer games

Emphasize physical beautyBillboards, signs in the

streets also utilized Emphasize price and

convenience Combining meals and discounts

WHY JAPAN?

Japan is a Fast-food Market.

Japan is a rich, populous country of some 120 million.

Japan is the restaurant capital of the world, with one eating establishment for every eighty-one people.

PRODUCTThey offer sesame and soy sauce flavor

fried chicken.

KFC Japan offers a panko fried salmon sandwich.

Cont….There are only medium and small sized

drinks (called "S Size" or "M Size" as is common in all Japanese fast food restaurants).

Yuzu dry spiced fried chicken (Yuzu is a citrus fruit common in Japan, sort of like a cross between a lemon and a lime).

PLACEKentucky Fried Chicken began its operation

with two test operations,one at Expo in Osaka, the other in a Tokyo department store.

The Expo outlet broke records: Sales there reached $100,000 a month.

PROMOTION Kentucky Fried Chicken in Japan spends

$5 million a year on television commercials alone.

The account is handled by a joint venture, this one between a Japanese advertising firm and the McCann-Erickson agency.

MAJOR MARKETING STRATEGEIS IN JAPAN

PERSONNEL DEVELOMENT STARTEGY

Another aspect of the company's marketing effort is its extensive training of employees

When they start, they get nine days of basic operation training and four days of on-the-job training

The purpose of the training is not only to develop skills but also to create company loyalty

JOINT VENTURE STRATEGY

Shortly thereafter KFC set up a fifty-fifty joint venture with Mitsubishi, the giant Japanese trading company.

Mitsubishi could guide KFC through the Japanese bureaucracy, making sure it complied with applicable laws and followed appropriate customs.

TARGET MARKET OF USA• Typical customers are adults ages 25-54 who are

occupation ranging from white collar office job to blue collar construction job. The biggest part of their customer base makes between $50000 to $60000 a year and married with children.(upper middle class)

• This customers are living fast paced life in which they have to balance the heavy demand of work and life. As a result of this lunch and dinner occasions are becoming shorter and the thing that has the greatest impact on their choice of food and drink purpose of convenience.

PRODUCT STRATEGY

Product variationProduct differentiationProduct innovationProduct elimination

PRICING STRATEGY

Cost recovering pricingPenetration pricingPrice skimming

PLACE/ DISTRIBUTION

Distribution channelDirect salesIndirect salesE- commerceFree home delivery

PROMOTIONAL STRATEGY

Individual communicationMass communicationBrand managementCorporate identity(public relation, events and experiencecoupon discount and bundled packages.)

Push strategy: to helpAwarenessBe differentSound attractiveReminder advertisementMarket penetration (global expansion)

COMPETITORS Popeye's and Chik-Fil-A both focus on

chicken, but essentially every fast-food outlet offers some sort of chicken sandwich.

Also, all fast-food places compete for the general "quick meal" customers.

INTRODUCTION Kentucky Fried Chicken has been one of the most

household international brands in urban China since it opened its first Western-style quick service restaurant in Beijing in 1987.

As the present largest fried chicken restaurant company in the world, KFC aims China as the most promising market and succeeds in its localization strategies in the huge China market.

The most prominent success achievements of its keen perception of cross-cultural marketing and its understanding of Chinese culture.

There is no doubt that China has become the highest-growth market of Kentucky Fried Chicken.

CULTURE OF CHINA Chinese culture is one of the world's oldest. The area in which the culture is dominant

covers a large geographical region in eastern Asia with customs and traditions varying greatly between towns, cities and provinces.

Important components of Chinese culture include literature, music, visual art, Martial arts, cuisine, etc.

Culture

Language Values Consumer Behavior

FOOD CULTURE OF CHINA Chinese consumers behavior.a. Centuries of adaptation have created a wide range of lifestyles

and behaviors, particularly in densely-populated urban areas.

b. As a result, it is not practical to treat the population of China as a single consumer market.

c. Chinese consumers are now poised to develop new tastes and demand more global food.

d. Chinese consumers are both savvy and discerning, however, they tend to exhibit preferences and behaviors that are rooted in the rich cultural traditions of China‘s past.

e. Chinese consumers are becoming more affluent and this is influencing both lifestyle and diet in China.

f. Chinese consumers are enjoying a wider variety of both fresh and processed foods of domestic and international origins.

PRODUCT

KFC provide food that can be prepared and served quickly. Each menu is made of a large scale of products based on a main

product:   chicken, standard ingredients like potatoes and corn. A regular meal consists in a Hamburger or Chicken nuggets, some

French fries, a soda and it can be add a dessert.   In China they have adapted their product to the local consumers’

preference. They chose a strategy to cover all the moment of the day. For

Breakfast they propose some specific Burger or a Chinese porridge. For the other meals, they also have created some specific products

fitting with the Chinese culinary taste. Customers can eat some wraps, jelly milk tea, egg soup, shrimp

burger or Chicken co gee and some lunch set are available.

PLACE

Each 22 hour a new KFC is opening in China. KFC try to personalize each store regarding the region

in which it will be implanted. The decoration is composed by symbolic signs like

picture of the Great Wall of china.

PRICE

Around 20 Yuan for a bowl of soup and approximately 50 yuan for a combo meal.

PROMOTION

The creative and vivid advertisement pictures of KFC in China already gives an impression of how elaborately KFC promotes its products.

The clear message is that KFC has something to offer for every taste.

There are advertisements everywhere, not only in TV programs, but also on the streets, in the elevator; there are even coupons in newspapers.

The Chinese virtues and emotions as patriotism, respects to the elder, cherishing the young, sincere friendship and romantic love are the major subjects of KFC’s campaigns. One remarkable example is KFC’s emotional appeals strategy by supporting China men’s soccer team in the World Cup of 2002.

OTHER STRATEGIESMulti- domestic strategy - Menu differentiation & Upscale experience.Superior Internal distribution System - Economies of scale & Quality Control.Target Youth Market.Extensive Employees Training.Localization Strategies.Product strategies.Online Ordering.An “eat at Home experience”.

ABOUT KFC IN PAKISTAN KFC provides the ultimate chicken meals for a

chicken loving nation.At KFC we can proudly say, “We do chicken

right”. Presently KFC is branched out in thirteen cities

of Pakistan (Karachi, Lahore, Rawalpindi, Faisalabad, Multan, Peshawar, Sialkot, Hyderabad, Islamabad, Gujranwala, Jhelum, sukkur and Murree) with 45 outlets nation-wide.

In Pakistan totally Chicken buy from Pakistani Poultry Forms, and also this Chicken is 100% Halal.

MARKETING STRATEGIES

Generally there is no age limit which is focus by the KFC.

they were focusing on single segment that was through Niche Marketing by offering

“Combo Deals”.KFC has put big hoardings on the busy areas of

Pakistan. KFC have an effective advertisement campaign

on the media in order to motivate its customersThe colors used in advertising are Red White and

Blue which itself is recognition for the brand.

KFC have joint sale promotions with different companies like HP, Philips, Value Meals, Pepsi-Cola.

PSO had made a scheme in which PSO had given the coupons of KFC having 10% off.

KFC does competitive advertisement with its head on competition with McDonalds.

KFC sponsor’s many NGO’s and other social welfare organizations.

They also offer different deals according to the season and occasion.

KFC in its ads try to convert people to people who eat boring bland fast food over to KFC.

PRODUCTProduct planning-

Their product is classified as consumer product as it has no intermediates.

Product strategy- KFC has got one product line but later

they introduced products in the same line to protect their market share.

Product line-KFC product line includes all chicken based products.

PRICETheir products were high price and

targeted only upper class. . Price is determined according to the rates

of the raw materials and policies of the Govt.

Gradually they trickle down focusing on the middle class to penetrate the market.

The political and legal forces often affect the policies of KFC and eventually results in change of prices that is due to imposing of taxes.

PLACEKFC has only one channel of distribution

i.e. direct where the goods are transferred to the consumer directly.

KFC launched its first mobile unit, which took the streets of Karachi by storm.

Distribution of Consumer Goods and

Services

PROMOTIONTheir advertising media involve:

Newspapers, Pamphlets, Billboards and Television.

They give informative messages like “Faryad: Keep the city Clean”.

Product advertisement.KFC have joint sale promotions with

different companies.

CONCLUSIONAfter conducting an analysis of the various

marketing strategies adopted by KFC across the globe, the following conclusions are drawn –

1.KFC’s competitive situation is not that much intense.2.It has established an image in customers mind that

work protection against competitors.3.According to their marketing manager, 90% of

customers are loyal so they are doing well to retain and sustain the customers

4.They have largest fast food industry market share in Pakistan but in Lahore their market share is lower as compared to Mc Donald.

5. The real strength of KFC in the view point of its management AND ACCORDING TO CUSTOMER PERCEPTION lies in its physical environment. “they want their customers to feel positive change every time they enter into restaurant.

6. KFC’s ultimate goal is customer satisfaction. According to the marketing manager, competent employees are the way to success.

7. KFC is a market oriented organization as it caters to both customer needs and competitor moves.